Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased in the current quarter compared to the prior quarter and the same quarter last year. Free cash flow margin improved significantly from the prior quarter and was slightly higher than the year-ago period.
- Cash conversion improved as operating cash flow grew substantially relative to revenue, while capital expenditure also increased. The resulting free cash flow margin was higher than both the prior quarter and the same quarter a year ago.
- Compared to the prior quarter, free cash flow margin rose sharply due to a much larger operating cash flow. Versus the same quarter last year, the margin was slightly higher, with revenue and operating cash flow both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$261.0M
Capital spending and related asset purchases.
FCF margin
55.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-03-31 | $2.1B | $902.0M | $165.0M | $737.0M | 35.2% |
| 2023-06-30 | $2.1B | $580.0M | $132.0M | $448.0M | 20.8% |
| 2023-09-30 | $2.3B | $311.0M | $136.0M | $175.0M | 7.6% |
| 2023-12-31 | $2.4B | $1.6B | $261.0M | $1.3B | 55.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 455.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow increased substantially from the prior quarter and was higher than the same quarter last year, driving a significant improvement in free cash flow. As noted in the filing, cash inflows are primarily from subscription services paid in advance, with a high renewal rate.
The elevated operating cash flow was the primary factor behind the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved as operating cash flow grew substantially relative to revenue, while capital expenditure also increased. The resulting free cash flow margin was higher than both the prior quarter and the same quarter a year ago.
Compared to the prior quarter, free cash flow margin rose sharply due to a much larger operating cash flow. Versus the same quarter last year, the margin was slightly higher, with revenue and operating cash flow both higher.
Monitor the consistency of operating cash flow generation, as the current quarter's level was significantly above the prior quarter's figure.