Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin remained stable compared to the prior quarter but improved significantly from the same quarter last year. Operating cash flow increased year-over-year despite lower revenue, leading to higher free cash flow.
- Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow and free cash flow were higher than a year ago, resulting in an improved free cash flow margin. Capital expenditure was lower in both comparisons. The company's filing describes its subscription model and annual upfront billing as factors supporting cash flow stability.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were lower, while the free cash flow margin was nearly unchanged. Compared to the same quarter last year, revenue was lower but operating cash flow and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$686.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$212.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$213.8M
Cash generated by operations before capital spending.
CapEx
$1.6M
Capital spending and related asset purchases.
FCF margin
40.9%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $546.6M | $49.8M | $5.8M | $44.0M | 8.0% |
| 2023-12-31 | $550.2M | $187.3M | $4.6M | $182.8M | 33.2% |
| 2024-03-31 | $603.1M | $250.7M | $3.6M | $247.1M | 41.0% |
| 2024-06-30 | $518.6M | $213.8M | $1.6M | $212.2M | 40.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 307.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 Improvement
Operating cash flow was higher than the same quarter last year, even as revenue decreased, indicating a stronger cash conversion from revenue.
This improvement drove the higher free cash flow and margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, yet operating cash flow and free cash flow were higher than a year ago, resulting in an improved free cash flow margin. Capital expenditure was lower in both comparisons. The company's filing describes its subscription model and annual upfront billing as factors supporting cash flow stability.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were lower, while the free cash flow margin was nearly unchanged. Compared to the same quarter last year, revenue was lower but operating cash flow and free cash flow were higher, and the margin improved.
Monitor revenue levels as they declined from both the prior quarter and the year-ago quarter.