Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially and year-over-year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter. Capital expenditure increased from the year-ago quarter but decreased from the prior quarter, resulting in free cash flow and free cash flow margin that were higher in both comparisons.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower. Compared to the same quarter one year earlier, all metrics were higher, with free cash flow margin showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$469.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$671.0M
Cash generated by operations before capital spending.
CapEx
$202.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.4B | $1.6B | $261.0M | $1.3B | 55.1% |
| 2024-03-31 | $2.6B | $1.3B | $135.0M | $1.2B | 46.3% |
| 2024-06-30 | $2.6B | $620.0M | $262.0M | $358.0M | 13.6% |
| 2024-09-30 | $2.8B | $671.0M | $202.0M | $469.0M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | 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 was higher than both the prior quarter and the year-ago quarter, contributing to the improvement in free cash flow. The filing notes that the company generates cash inflows primarily from subscription services paid in advance.
Higher operating cash flow, combined with lower capital expenditure versus the prior quarter, drove free cash flow higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter and the year-ago quarter. Capital expenditure increased from the year-ago quarter but decreased from the prior quarter, resulting in free cash flow and free cash flow margin that were higher in both comparisons.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower. Compared to the same quarter one year earlier, all metrics were higher, with free cash flow margin showing notable improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly affects free cash flow conversion.