Summary

• Accenture plc is a leading global professional services company.
• Accenture has over 733,000 people serving clients in more than 120 countries.
• Accenture recently acquired Incapsulate and Rabbit’s Tale.

Accenture plc (NYSE: ACN) is a leading global professional services company that helps organizations of all sizes achieve their business goals. With over 733,000 people serving clients in more than 120 countries.

Recent Developments

Accenture to Acquire Rabbit’s Tale

NOVEMBER 29, 2023; Accenture (NYSE: ACN) has agreed to acquire Rabbit’s Tale, a Bangkok-based creative and digital experience agency. The move will significantly strengthen the regional creative, brand and data capabilities of Accenture Song—the world’s largest tech-powered creative group—and help its clients build and optimize digital experiences across the entire customer lifecycle for growth in Thailand.¹

Recognized as one of Thailand’s most prominent advertising agencies, including being named among the top three agencies of 2022 at the Adman Awards by the Advertising Association of Thailand, Rabbit’s Tale brings credibility in crafting impactful brand strategies, driving digital content, and executing data-driven experiences. The agency has grown some of the world’s most influential brands across consumer goods & services, automotive, communications and media, financial services, and digital and technology sectors, including Honda Motorcycle, CP Group, Ajinomoto, Doi Kham, GQ Apparel, Electrolux, Neo Corporate and Siam Commercial Bank.

 Accenture has acquired Incapsulate.

NOVEMBER 28, 2023; Accenture has acquired Incapsulate, a leading digital transformation consulting firm that specializes in Salesforce solutions. Financial terms of the transaction were not disclosed.²

Founded in 2008, Incapsulate designs and implements Salesforce solutions for organizations in the public sector and financial services industries. As a Salesforce Platinum Consulting partner, Incapsulate fortifies Accenture’s Salesforce capabilities, which focus on helping clients use data and AI-driven insights to transform how they connect with customers and meet their ever-evolving needs.

Financial Highlights

Full-Year Fiscal 2023 Results

September 28, 2023 — Accenture reported financial results for the fourth quarter and full fiscal year ended August 31, 2023.³

For the fourth quarter, revenues were $16.0 billion, an increase of 4% in both U.S. dollars and local currency compared with the fourth quarter of fiscal 2022. GAAP operating income was $1.91 billion, compared to $2.27 billion for the fourth quarter last year, and operating margin was 12.0% compared to 14.7% for the fourth quarter last year. Adjusted operating income was $2.38 billion and adjusted operating margin was 14.9%, an expansion of 20 basis points from the fourth quarter of fiscal 2022. GAAP diluted earnings per share were $2.15, compared to $2.60 for the fourth quarter last year. Adjusted EPS were $2.71, an increase of 4% from the fourth quarter of fiscal 2022. Operating cash flow was $3.41 billion and free cash flow was $3.23 billion. New bookings were $16.6 billion.

For the full fiscal year, revenues were $64.1 billion, an increase of 4% in U.S. dollars and 8% in local currency compared with fiscal 2022. GAAP operating income was $8.81 billion, compared to $9.37 billion in fiscal 2022, and operating margin was 13.7% compared to 15.2% in fiscal 2022. Adjusted operating income was $9.87 billion and adjusted operating margin was 15.4%, an expansion of 20 basis points from fiscal 2022. GAAP diluted earnings per share were $10.77, compared to $10.71 in fiscal 2022. Adjusted EPS were $11.67, an increase of 9% from fiscal 2022. Operating cash flow was $9.52 billion and free cash flow was $9.00 billion. New bookings were $72.2 billion.

GAAP net income for the full fiscal year was $7.00 billion, compared with $6.99 billion in fiscal 2022. Adjusted net income for fiscal 2023 was $7.58 billion.

For fiscal 2023, operating cash flow was $9.52 billion, and property and equipment additions were $528 million. Free cash flow, defined as operating cash flow net of property and equipment additions, was $9.00 billion. For fiscal 2022, operating cash flow was $9.54 billion, property and equipment additions were $718 million, and free cash flow was $8.82 billion.

Outlook

Accenture expects GAAP operating margin for fiscal 2024 to be in the range of 14.8% to 15.0%, an expansion of 110 to 130 basis points from fiscal 2023, and adjusted operating margin, which excludes an estimated $450 million for business optimization costs, to be in the range of 15.5% to 15.7%, an expansion of 10 to 30 basis points from fiscal 2023.

The company expects both its GAAP and adjusted annual effective tax rate, which excludes the tax impacts of business optimization costs, to be in the range of 23.5% to 25.5%.

The company expects GAAP diluted EPS to be in the range of $11.41 to $11.76, an increase of 6% to 9% over fiscal 2023 and adjusted EPS to be in the range of $11.97 to $12.32, an increase of 3% to 6% over fiscal 2023. This excludes $0.56 for business optimization costs in fiscal 2024.

For fiscal 2024, the company expects operating cash flow to be in the range of $9.3 billion to $9.9 billion; property and equipment additions to be $600 million; and free cash flow to be in the range of $8.7 billion to $9.3 billion.

Company Overview

Accenture is a leading global professional services company, providing a broad range of services and solutions across Strategy & Consulting, Technology, Operations, Industry X and Song. The company serve clients in three geographic markets: North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa and the Middle East).

Locations⁴

References

1. ^ https://newsroom.accenture.com/news/2023/accenture-to-acquire-rabbits-tale-to-strengthen-its-creative-and-digital-customer-experience-capabilities-in-southeast-asia
2. ^ https://newsroom.accenture.com/news/2023/accenture-expands-its-salesforce-capabilities-with-acquisition-of-incapsulate
3. ^ https://investor.accenture.com/~/media/Files/A/Accenture-IR-V3/quarterly-earnings/2023/q4fy23/final-q4-fy23-earnings-press-release.pdf
4. ^ https://www.accenture.com/in-en/about/location-index