Fortive (FTV)

Griffin Whitney Vice President of Investor Relations
Jim Lico President and Chief Executive Officer
Chuck McLaughlin Senior Vice President and Chief Financial Officer
Scott Davis Melius Research
Julian Mitchell Barclays
Jeff Sprague Vertical Research
Steve Tusa JPMorgan
Andrew Obin Bank of America
Nigel Coe Wolfe Research
Andy Kaplowitz Citigroup
Deane Dray RBC Capital Markets
Josh Pokrzywinski Morgan Stanley
John Walsh Cradit Suisse
Scott Graham Rosenblatt Securities
Amit Daryanani Evercore
Joe Giordano Cowen
Call transcript
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Good afternoon. My name is Pasha, and I'll be your conference facilitator this afternoon. At this time, I would like to welcome everyone to the Fortive Corporation's First Quarter 2021 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the call over to Mr. Griffin Whitney, Vice President of Investor Relations. Mr. your begin may you conference. Whitney,

Griffin Whitney

Chief Good of section Thank Quarterly XXXX, Investors non-GAAP Vontier SEC measures President on on presented for Jim and to the and Chuck financial discontinued and you website, relating the Chief by www.fortive.com, of Financial results Investors present on on everyone, are available October call us you, Technologies Lico, and this of heading, our the on certain are our Vice President included as are the operations. the measures Pasha. required joining today the of thank us today's Results. separation The X, operations. Regulation financial under accordingly and Information Corporation continuing based on We afternoon, spinoff G call. Senior Officer; non-GAAP completed the results Executive We Officer. these our have McLaughlin, With segment segment Industrial our Industrial through Technologies call.

the more continuing year-over-year significant certain to metrics factors of basis. and are a presentation, operations the year-over-year period-to-period financial impacted All references on performance. describe that we During or increases decreases will

on statements the obligation from factors available forward-looking number a these uncertainties, date December future. speak turn any our results that in we made, Information from make any federal within the I'd over to differ expect we of regarding materially forward-looking statements we differ of forward-looking only the risks and These meaning of will materially to the subject do or may update the including like forward-looking any statements. These Form anticipate or our not During call, to that, call Jim. are or report developments forward-looking statements assume and actual they make to the With the and as are in that securities might will statements XX, forward-looking XXXX. including XX-K filings, regarding SEC ended for we laws, that statements to events that may is occur statements year annual results actual cause these today.

Jim Lico

Slide good Thanks, everyone. Griffin, Starting X. and afternoon, on

first the our health growth in benefits to our highlight sources resilience the portfolio, efforts positions adding enhance and Our expanding recurring substantial care growth of software continued performance of significantly of and quarter to our revenue. and higher

businesses, a and Advanced Sterilization drive rapid improvement only over As see well not of as Tektronix, to headwinds, past Instruments QX, have to short-cycle that improvement, continue has the also In few faced portfolio Fluke result, our in businesses but to such begun significant positioned primarily been markets reopen. many COVID-related as quarters we our across sequential have Products. the

revenue high results share our Turning flow. to per The XX% We free of of of another combined year-over-year. outperformance of XX.X% quarter $X.XX, was X.X%, and growth end generated growth revenue in earnings core core above earnings drive the cash helped quarter. strong the growth an and Adjusted guidance. representing the total of on increase

driving the tools quarter, critical overall. Our we to pain line broader and Censis, challenges to FBS continue Gordian our digital software-enabled leading offerings in the double-digit our perform top of priorities. points in are their provide the part with positions leverage to a important to generating eMaint solutions offerings continue to Despite customers' SaaS momentum ongoing environment, well, leverage Intelex, growth strategy current hardware software Accruent, an better address and transformation workflows seeing COVID of Gordian FBS at These tools better base. success lead and from it sales quarter improved process, well win creation. fifth commercial portfolio. the the in generation, installed to ASP continues improve is delivered the the efforts also of global accelerating as capital consecutive of Business more its Intelex drive customer advancing improvements pipeline implementation performance growth System as of in application working stronger Fortive see improvements its broadly, rates its as driving sales across to strong to turns progress

While highly to accelerated building on future these additional newer capability well order growth, couple our in continue growth, our to across we initiatives market invest deliver in examples, gains. as companies are to focused to businesses of FBS we innovation. innovation a share drive are across just and organic strategic as build Relative operating capacity

to the potential pursue to learning and expect In year, more same revenue data targeting doubled than the analytics opportunity. than and leverage machine to our operating scale FORT, continuing our capabilities, we applications. $XXX XXXX, key projects number are do With we providing to this more conducted AI the of of companies million

opportunities ehsAI acquisition within incubation. We've to phases to currently EHS expanded generate workflows more that our help also our a broadly of Fortive. position learning expand can our as well of expertise be grow different X Our number within with as start-up applied significantly of Square with in learnings investments Labs machine Pioneer additional made partnership

we investments, our these and proposition. disruptive innovation enhancing will deepen are to With advantage value ability customer our that competitive our increase generate

maintenance clamp a major in Western approximately of growth in China XX% low performance FieldSense Fluke This are by to Fluke's point-of-sale digits in in growth These same single mid-teens growth first Slide look improvement in in to single in extend in included increasing an resilience, Fluke and to first in This quarter, well. offering in Solutions a demonstrate for low China digits. a go with single by and retention. strong time, saw growth. improve creation, quarter, core sales by high project iNet while low Fluke's beginning Asia. first in increasing with in continued bookings. driving and bookings also on activity. the revenue continued a in and FBS high-teens growth record At the measurement to positive instrument The included increase core incorporate at Industrial Stub's China, quarter, America. high Fluke's noncontact noncontact grew declined voltage basis Western performance by X. company's pipeline end Europe with rental in Europe eMaint XXX of as tools. At rising to across single in with Industrial, customers seeing Fluke the Scientific double and restart a This iNet quarter by single result as Operating Japan. the tools highlighted the increase Fluke revenue digits the quarter was flat growth digits low our low this included mid-single digits segments from leadership performance Connect at Taking position at registered single-digit revenue and geographies, X.X%. North success XX% of continued at its of was testing. meters led In North ISC's ehsAI than weakness Intelex increasing of its Calibration. bookings performance improve, Elsewhere, double-digit business of more the growth core Digital continue closer we XXX growth both of stability the The XXX Industrial terms introductions continues double-digit a low Meanwhile, accelerate demand sales. technology in markets a to growth in posted application Fluke XX% integration double-digit net the growth total in provided signal in its digits. launch improving line and low growth driving revenue safer growth mid-single respectively. in strong by turned America. Intelligent of point Western continued at a by low SaaS Systems top X.X%, high-teens growth digits. point-of-sale continued increase core revenue North in America Strong by and Europe increasing by digits mid-teens,

their the product business high The issues. the low at perform of from low digits Intelex Gordian's contribution year XXXX, first Accruent in growth team continues. included grew contracting its to of quarter growth revenue life small, demand momentum its end on-site segments. manufacturing some strong rates for facility saw solution with first prepare expected schedule, to Gordian's project-related the tool flat beginning After from the started they half their resumption as a integration during the procurement company's continued to including industrial grew in FDA further for site Accruent estimating scheduling service has was and second top the single and a good to for needs win included in facilities aided single product of by Accruent's with seeing of signs critical of facing the and well, renewal the management to business on accelerate planning RSMeans high implementation across improvement activities digits the for the Accruent and ramp facilities, new version communication markets in as expected job continues. line. order conversion and solutions quarter. quarter, headwinds digits contractors recovery remains increasing SaaS future seeing highlighted is of improvement validation. pharmaceutical its by also the single the science customers accelerate by is emerged see during of Gordian a momentum improved SaaS. by by resource and customer BioMarin, recent as Meridian This COVID is first the single-digit continue of with pandemic. While and to line regarding access quarter workforce acquisition. and in growing support range which for as their Accruent's

with solutions. and increase driven in markets. XX.X% in in The the demand growth than Western growth Precision China, mid-teens and revenue growth America XG, North by in XX% increase and strength in economic America. a continues with posted as We revenue. generated mid-XXs has Tektronix seen mid-single-digit China a Western mid-single-digit its will strong electric industrial XX% increase in growth of included in quarter. to by coming greater vehicles than general accelerate, percent teens the turned government up continue expect This semiconductor Tektronix a greater XX.X% in in core Europe, improvement Europe positive high total quarters. driven recovery IoT in segment Point-of-sale this North Technologies investment China, while continue in

Keithley business a Scientific product delivered with it across Tektronix with electronics in range across first markets, including across and and to critical grew double trends strong growth market growth scopes. at strong accelerating factory customers. service among also broad its OEM including of environment mid-teens, demand product reporting customers. applications. products, momentum most Tektronix, digits in saw as of both automation the industrial et X by mainstream Looking had key also Sensing the demand the quarter. show solution its Probe saw new Pacific of by number wins end for series cetera, IsoVu an from the across introductions, oscilloscope continued Sensing Technologies China new EMC months strengthening key recent the trailing generated strong low growth continued Tektronix excellent growth, first mid-XX% has expect by semiconductor to growth by Keithley trends and mid-single-digit lines quarter. in for single segments, returned to backlog driven in and X.X driven Sensing with outperformance improving a first grew of a over product Mainstream that to increasing X business its the while stability, quarter. book-to-bill order high series see good automotive The low coming our growth we posted quarters. oscilloscope particularly XX% the quarter. digits a support XX and strong

low also upselling had momentum Censis strong a hospitals seeing was recently its ASP and by accounts. than teens core growing Health at XX.X% grow terminal preferred a fifth and revenue in North U.K. evidence with decisions. strength in increase moving increased making capital growth. driving to was than global ASP FHS improvements This equipment priority Moving sales capital low low continued low have also with supplier and that drive improved the execution growth This continues Growth digits. lines. its by Fluke to ASP better XX% momentum Europe America. growth XX% a well included in products improved and quarter in consecutive operating base. faster growth first by National teens by revenue. the in sales ASP Landauer, its were XX.X% increasing more to continued journey levels at and deploying quarter, low Health tender progress margin named operations to fact Western CensiTrac post-COVID Care services. an seeing weigh double-digit installed cross-selling perform with now sales broad acquisition. as in the in are across delivery revenue. Advanced and consumable first it on increased funnel greater ASP's to X.Xx for go-to-market procedures pre-COVID at to growth growth the increase scale Solutions FBS product of electric returned Health in first business Censis by global FBS ASP growth Western and Europe accelerating of XX% by with single-digit a driven China, across XX% Total quarter is in in management low quarter, mid-single is purchasing approximate leveraging and seen offset Service multiyear an to improvement its network since in also its Landauer the continue sterilization in the Solutions. sales margins of independent and to globally SaaS in and has is large its and capital success capital the offering. of its indication Stronger services. U.S.

mid-XX% it strong With backlog I'll Chuck, free offerings. as over XXXX against margins delivers on the our will flow cash additional quarter. for Invetech a who orders you its Finally, and through growth details pass for reported to it diagnostic that, of take

Chuck McLaughlin

and afternoon, everyone. Thanks, good Jim,

basis the portfolio reflected the XX coming as the FBS execution the realization growth enabled as year-over-year It were in at quarter. margins including improvement fall-through on Tektronix portfolio, strong ASP XX agreements. gross deliver in transition margin Fluke well performance points, of service the across with execution off and points margin strong price the first quarter, in gross XX% throughout to Adjusted continued QX. basis the by solid the driven Solid at us up also

expansion profit generated basis the core XX% operating stronger was in operating XXX core had the adjusted of X adjusted than of we points QX a higher margins than in quarter. of operating basis our more points generated margin of Our helped margin also part in we XX.X%, bit and by incremental operating expansion segments. guided, saw margin We each XXX and volume

generated cash we quarter, XX% first an the representing of of increase During flow, free $XXX year-over-year. million

earnings, and million. We our the in flow growth consistent flow Along months that year, continue free to have pleased with tax-efficient disciplined be the quarter first to delivered $X.X used billion XX.X% performance. capital at which repayment. executed generating to monetization for of flow and cash the over management our growth with taking delivered remaining in working Fluke this were in -- Tektronix trailing we free $XXX stake contributed cash with proceeds the free Early Vontier, debt XX approximately past ASP, cash in QX, we've significant in

flow are up deal-cultivation well balance On our allocation of a and cash positioned active basis we ratio quarter our first a free QX, the that we leverage pursue cash by and are and X.Xx. capital sheet strong Supported ended continued pipeline priorities the free flow significant of transaction maintaining key with an of from to net capacity, efforts.

deep we to to deploy on of also instrumentation continue opportunities high-value as range and leverage expertise positions into adjacent broad a software capital opportunities. hardware and core domain data-driven our build We see to workflow

XX. on to the Turning guide Slide now

of our and some first our year, outlook rest a in performance given guidance. strong result we the the XXXX are of quarter the improvement for raising As

rate full operating year, This adjusted revenue adjusted core to X% profit approximately X% we $X.XX For of XXXX. to now XX% to in per also effective It margins net growth the XX% to to XX% revenue XX%, growth XX%, earnings operations representing of revenue on of the XX% and an to continuing half year-over-year growth total core assumes basis. expect to second share tax X% of of growth XX%. a diluted of of assumes $X.XX, XX% be

year. for expect flow of XXX% to adjusted to We approximately income be the free net conversion also continue cash

effective We share of to representing revenue an profit quarter XX% of are earnings adjusted tax core $X.XX, guidance to XX% net growth initiating of of This revenue per year-over-year XX.X% growth $X.XX adjusted XX%. of operating and XX%, diluted XX.X% rate to to total XX% growth margins approximately second XX%. XX%, of assumes to

have and progress our learning as development are investments machine also expand we I'll With in for quarter, closing additional expect AI full second Pioneer be drive that, guidance years thus XX% to some analytic innovation of to adjusted partnership as of remarks. where to well making our the the offerings quarter. in to approximately to far. capabilities FORT seen ahead early net Jim our incorporates $XX second The with that base the for for the flow customers. Labs, includes It of cash $XX capabilities we talent support and the conversion funding higher pass For accelerate for our This growth funding it back we to in Square million includes good investments income. million free with enhance year

Jim Lico

Chuck. Thanks,

discussing employees to the emissions results principles -- progress relentless our that Day. improvement also first targets. to at strong look of the more The the I'd that sustainability Before progress for goals. our In use throughout sustainability questions insights QX, highlight the our pillars and Slide on continuous platform made implementing we Investor we're to key our our our completed continued portfolio, to sustainability strategy aggressive our an wanted analysis, new take and and testament used FBS upcoming making their to to data we power teams which depth updated of valuable today to efforts like of the move forward to with the the going minute XX, dedication adaptability We've a a announced forward. new, of materiality we performance emissions we collection execution indicators progress respect quarter. FBS the Intelex across culture. will are significant on focus define our the XXXX sustainability evolving goals complete and with I which continued thank our and carbon we to yielding guide We that strong also

forward, strength excited look us. market are our we significant about the and the growth quality ahead inorganic opportunities portfolio, of address we the As and of we of opportunities the organic

continue and the macro deploying to customers. will our remain bring on recover free we generation, driving core innovation strong strategy capital from our in while cash and flow the that expansion to indicators focus value and growth, to our increase As margin COVID-XX pandemic, acquisitions accelerate investing

have growth, share to In portfolio when We about Day. Investor May road on X you speak we with positioned sets for our spin, accelerated flow. our since excited our generator more XX at forward are of our ahead more I'll look across to to we well compounding years more the which almost also with the be This us powerful turn discussing higher details a free back With it up to profitable cash that, and businesses, we you. Griffin.

Griffin Whitney

Thanks, Pasha, for our That formal Jim. now comments. ready concludes we're questions.


[Operator Instructions] Melius line Scott question the of from is first Research. Your Davis with

Scott Davis

it or kind margin all the, of kind that guide? additional supply Is growth you're some -- guide, margin because there is cost The timing or seems this I'd to Or what incremental of about? conservative anything related more else there a chain of price issues? is investments talking consider

Chuck McLaughlin

is for Scott, Are the you year this -- QX? talking Are for the Chuck. or you

Scott Davis

I could to specifically might Honestly, about talking well answer for was both, year. you yes. speak XQ, as but full the you

Chuck McLaughlin

headwinds for that talked for that Well, the -- thinking year we investment. that maybe were bigger about probably out couple bit. $X.XX this. the little of that the different probably we the inflationary incremental of a months say called than I'd I'd seen But are just And. we I a what in point further, things and are there -- out FX. the things And There's that are that ago. we've some are think year, also full

Scott Davis

Okay. Go ahead.

Chuck McLaughlin

ahead. go Sorry, [indiscernible]

Scott Davis


Chuck McLaughlin

as mostly off QX No, kicked investment versus guide. about accelerate second in we're year I the half investment to the talk just for the of the seeing our the we -- is that previous going growth was

Scott Davis

you out? Okay. The XQ $XX that million in call

Chuck McLaughlin


Scott Davis

and average. And know -- inventories broad, sense just average, follow-up, just sense I have you below above do it's Okay. a of whether are normal, I it's because but. second, know of a hard really of portfolio to is kind generalize whether your hard but

Jim Lico

where say Jim. -- we it's would I Yes. Scott, get hey,

are inventories some Industrial, on extent, America we point-of-sale decent good at I pretty Tektronix, about We I to at where Fluke one, number get think and we at. consumables data would good North say, feel in data at get ASP.

So see couple our we I channel situations. reasonable of at always is a partners. good where Nothing have of say we're where we inventory decent would things as portfolio chunk -- levels. elevated. we're a it's And There's

year we strong You that of to certainly in saw regions in all And in point prepared our relative think sale. to QX the the I improvements seen improvement from we've from -- POS consistent remarks. last sequential of QX highlighted QX

seen improving stack. on a I even think we've X-year So that

point inventory big improvement of sale. So not we've an seen lift. We've seen in a

clean we one that inventories are So feel second other good into -- the just pretty And maybe just about to quarter. going on where thing, on margin at up question.

is investments million $XX in the in year we've that onetime year, part talked the maybe back of organic the second come costs of about second those Just from the other part quarter, the a million full obviously ago in several the $XX times. quarter margin that


Your next Barclays. Mitchell from of with the question line Julian is

Julian Mitchell

circle and question, to different back try margin angle. on maybe from a that wanted QX Just

just if think, flattish, revenues the are I to of I look QX. QX sort So sequentially,

that's so me guiding but be that I Understand year-on-year, XXX delta, down there's from something growth You're there would XXX understand maybe guess. or the is also Because bps help sequentially, on huge mix understand, getting shouldn't headwind But I a there investments. bps worse? cost about extra temporary the sequentially. margin

Chuck McLaughlin

is this Julian, Chuck.

costs, most -- open things would got give a example. temporary -- a as you is I'd about there think FX. QX, I say actually there's to from some I the QX where of of up, sequential small little bit

to As we we're more up, in going X than small travel that's saw QX, see open just example. things

there. some that would So there is we spending incremental expect

Julian Mitchell

Advanced Care the on on that. a in Solutions segment couple homing points Health and of maybe then And

the it there because incremental much mentioned. year-on-year first quarter then of then in all wasn't was factors at I QX, step-up half. the XX-ish, and in the second big think margin And there your about like looks you a

in AHS something capital consumables off. moving parts bounce So the roll a kind do has the moving maybe half with around in to more just lot second of margins QX, Any mix through year? TSA huge equipment, the

Chuck McLaughlin

AHS. we all, margin Well, first we had expansion year-on-year that I had thought of in -- think I a good

I we're the what's future. at XX% going from in the think we improved guide, in as But light. I surgeries thought, they're But right have on probably have elective comments hundred which versus good of points ASP, XXX elective but I But versus we margin where great we having segments. think installed a where do margin pushing talking over of as couple those most XXX, move year, in were And the a X that's with in through at little that a surgeries has I is, maybe of points. see there then our all And well bit probably basis -- have our to really an that that's I down where our see we'll And QX mix first capital also basis placement, for about the being in really half. growing there. investment further a expansion we there. hardware now base -- lift. of placement, as QX,


Your next line Jeff the from question comes Research. Vertical Sprague with of

Jeff Sprague

me. Two for

of X a out that Maybe Just investments. starters. think to some about X spending million side up year were Jim, want sort off or perspective you we're that that last of kind year? on encompass the kind Is there year? for for back Or happened just you frame that that accelerated could some talking that us. the And does talking $XXX of opportunity. you of mentioned Just of about this number? the payback equation. a is the I spend about

Jim Lico

Sure. Yes.

a the think, projects specific Jeff, really the projects. projects when but I would focus, this we're FORT, XX-XX we one, of productivity within XX say really number FORT, a of result. of to more then right are think to are and think last the now, we customer the that are the year better If million half year, about $XXX I operations. the And really commercial own moving some of things our combination is about going about offerings more is digital about better we that but of to really driving about internal -- some combination did other transformation are that talking

opportunities. a those So the tied to revenue is There are of commercial years out. opportunity all couple

the So terms of to some in by opportunity. we'll the of start market way. That's opportunity, that revenue see

you So of we I that I there's about when in think more are X can million, investments the a year. back in we think probably get that multiyear. think those start X the think, think half to some out. of combination some $XX more would about with this broadly really talk all innovation when all, -- certainly of those I investments that. the are Labs, are that really But Square early-stage about Pioneer years are we or of

bit term, X. where X, So X year impact. the next X maybe more investments are or maybe PSL a little meaningful investments X, near a years out, they make

Jeff Sprague

fully I understand. so just And

some have that, working through. productivity that of all? So top pure then believe, size fall from through profit drop that you there's, you right? But at would on on, there's Can some revenue, of $XXX you're obviously profit million what

Jim Lico

of we a to regular productivity tough size how of kind pretty in It's think on just some Yes. it because right inherent just about now basis. is

could XX million market $XX opportunity. sort much of I million, in is we as about next the to the of if the million to be it months, The by think say $X were productivity $XXX kind would way, it, side. So probably XX as to on

million. we about to of $XXX of served putting opportunity part that to ought the a we're an think into So market new gain in share ourselves as

Jeff Sprague

TSAs counting rolling could going know elaborate contribution in me. with the and I bigger was something is impact in AHS. the the I missed of if in don't was the guide. Got more On on as I for than QX AHS, composition the one it. quarter a expecting I just was that you than M&A on M&A? something. there And Or bigger just expecting acquisition Maybe you're on little bit

Chuck McLaughlin

you're there, core countries those what TSA. what day Jeff, don't of from M&A Yes. growth roll-off the you X what we're We is the growth. is the counting It's seeing count really as just theorize.

largely that at growth. just it that's so at margin. line operating we fourth as going end you're through falls to -- the And quarter, of that average roughly And up step top the of fleet and as completed see the now


JPMorgan. Your line of the next Steve question comes with Tusa from

Steve Tusa

Can kind about leverage talk just is how us your -- remind is you maybe how of just CapEx? leveraged much portfolio of to much semiconductor to

Jim Lico

Well, the a call build probably sales of semiconductor. not it the total it's would I all company, I is is it, X% up, it's in say, I'll don't to our what in And need of non-CapEx manufacturing -- that say probably, -- sort of about you would we're sense plant. XX% that

online, of But that they are more so are to sort performance design but we most the and typically that along -- as have the Sensing the our in is would used CapEx we of lines fabs have that question The within company a project. we or Tech not in is what scopes in capital expensive, be either we coming related of CapEx. be the Tektronix. may at your Keithley new see if what have Some in obviously of,

Steve Tusa


out different just you on into of thing software hardware pipeline. Okay. it is pressing? deals? kind seeing Is flavor that's kind the of kind there side? you -- of that? And the What's most on business models are acquisition Is What the still can types other go -- are is the of it of smaller then it there

Jim Lico


degrees because said and we we've really relative bolt-on I is With with really that us within good separation Vontier do pretty of now. to ASP the to opportunities think mean, getting and range of a anyway more got mostly I was be of year software. what breadth to shape, say hardware kind XXXX I freedom good had and do and behind had right sheet we going the the we balance to a running. I would of what to in pursue think up far

So I did. that learning given love think We us ehsAI the while it's small, in we really remarks, deal it's prepared we great machine mentioned the it capability.

within take standpoint analytics of we are would things places hardware But could extend a feature see still kinds our -- You of perspective that portfolio. within our ourselves perspective, software hardware set. to certainly a really opportunity data from from of from an lots certainly also is more those IoT and

think So pretty broad. I it's

going of You at exciting. can day, there but be Can't but right we're think deals that never there's feel I good predict get the which could a predict about the where of end at when out to potentially one things happen, done, now. number is


of is Bank Andrew question Obin the from America. next of with line Your

Andrew Obin

just it I the is? ask for nobody a trigger that what investment. did right It seems on question? And growth exactly asked has Can Can you details pull expand the just you now? around why

Jim Lico


up We where start right where probably more take an saw here top one, make think, because -- be the quarter we trends, obviously, the line -- year, environment the in one. But coming seeing we're in good these we number last is opportunity we revenue line the the I another we're at with opportunities. of we feel I'll bit the of seeing with feel second some starting we conservative. that to lean and want like to sure a and more now pulled trigger year, little some

one. to even of in think really range position companies, and of raise certainly number in with, give which Day a the -- And several that with as operating at sort I of operating XX% you earnings of flow, Investor kind about is their have, with ideas spend. posted well. spend that's we'll R&D to to can the they've half of got. offense of giving our the our say We've more cash would latitude So spend of our around we terms innovation number That's we our that the over around color growth relative it really in companies, we earnings very investments still And more is significant results that businesses. what and play good growth a of I financial this in done we're time.

half other Square the in Pioneer The is FORT in and Labs.

So we bit the do is a about a to Andrew, would that, be bunch FORT We those Pioneer second -- ago that question. capability. always -- a our of in little Jeff's really Relative talked Square data expanding we investments Labs, ideas. thought investment that would about analytics

out, they've what X you good. actually of give means. funding we've been As a I'll ideas couple the because it had accelerated turns ideas getting first that pretty are of

really hourly connected day. workers how really One communications investment, do of is they and connected work be every and in -- TeamSense our which helping technology is worker the more around that them

industrial condition-based deal in know is one monitoring if other Microsoft it did. the you of The the Think that communications. market, Nuance as for a

just we're that kinds the So we're those making, here because investments the investments are and opportunity seeing of over play out we're that accelerating those those might time.

most As revenue But aren't year. we've -- I going are next of deals, of but longer-term mentioned to those already give so necessarily lot on investments the us that's answer made. these with they a Jeff,

years about it's for So the investments the come. really accelerating to

Andrew Obin

you the follow-up with about bookings, my are whatever businesses you us. And of SaaS pipeline you. how to So churn, question. deals, talk doing? just Got Can collectively want share

Jim Lico

had We -- very every SaaS quarter, them but digits, Yes. the at Across of so business very in their board, double SaaS remarks. in one the we think grew businesses grew one digit that's good double -- double of had SaaS prepared digits. grew every our I good a a total,

do position good this that. year to in double And grow very digits. So to which we SaaS expect

businesses. continue to in those to invest want we So

in You also heard as is those remarks in today, several business examples really think, prepared I FBS value of generating how well. the

think I we that's as were performing good the well. how like bookings So feel

But quarter. that see in we're like to back start Relative starting rate, some Accruent feel to come way we So we're grew at in general, to actually services on-site position. software, more said in of good we of up some remote very long a -- the still a to as accelerated the all although go. the a

like great, Gordian, I the flat. the will. of those Both back service think a getting but still we good better, showing, trend. that's you of not if on

in position about the overall, businesses the a good And So across some just talked investments I are board. investments think our we're very as -- of in those well. we we're


of question the Coe Research. next Nigel from Wolfe Your with is line

Nigel Coe

come back looks it impact the and from [ XQ. because, like ] margins X year, your to I impact to QX If last down XX want year-over-year coming million really talked I about. to obviously, folks as stepping already about have $XX costs add SG&A the the through temporary sequential in for point to SG&A

QX, step of the close up the QX being that even range XX in to Is about to been So right? XX. has

Jim Lico


in Keep a up I between right. there's sounds a mind and QX. normal think QX in step that year, approximately that

all here. you not some that's of see it's normal -- that So seasonality

off to than a to in also imagine, can you are open I start April. then be in move you As there's as talked the going you more January And spending some year. through slower about -- activity and gets how, as up, we

Nigel Coe

think terms about any chain a whatsoever your I planning that depth And of Is having lot in for QX? impact supply we've of or talked here. QX in don't

Jim Lico

Nigel, the we our is that -- I answer think think, first in to -- guide. I quick it's

So a we nice -- we've done job.

the -- have global they come the a and today. are strategies. kinds I over in ways, those X logistics I an there FBS into mitigated quarter of come the to has there's X is supply other They of then that won't though. of supplier mitigate time get think historically, been mitigation continued in and well the set for I in issues part We've have chain and think those tools the documented, so to part out challenges. it's them. of form challenges mitigate such most important They're But issues

is about feel on I in guide. backs mitigated how So the those. that, obviously challenges, well revenue what a having demonstration we good think We the great think those despite quarter we beat the I of of

through think away. go believe necessarily to And come. quarters can continue mitigate We in the we they those to don't I

doing. -- I of XX the in the operating review. old think our ago, the but Chuck and I supply review management, but remainder good this of they'll is the we things I an an day, feel for I old end be there years year, we're every think at guy about from those work think Daily from So the chain month

I watch the them. our mitigation end good about feel So the strategies. at we're on top of them, of we and think day, But we're continuing to


next from And Kaplowitz line Andy of comes with question your the Citigroup.

Andy Kaplowitz

could sense that an how expectations results you look had than at comparisons America. of continuing just the much material worry in the update world growth of in here, Jim, given in then your those North are sales us you in And hotspots? give seeing maybe by point the said, for portions COVID? as are Are of easier really on terms China, this progress of inflection North region better America? to 'XX you But that COVID you any strong a there rates

Jim Lico


the think probably grower will best be I year. our China of

You're on X-year quarter, even but to right, something were do it a have comps in stack. the with we did much better

there, that's we we've year China there. we and growth think good good about we'll So the have feel businesses work the -- in done to build a

invested obviously businesses, POS was Western Europe of about. in European Accruent And talked didn't that newer We and pretty -- America trends growth like business, our will growth. and a Western have like and continue. Intelex North was America Europe think North they because good. number we have had we I European -- really a good that in really the

think as our in Western didn't some in what of acquisitions a of numbers the a of as Europe I lot the new So really well in much investments Europe. have presence that are as you're hearing good

I are right think we in a Western that now. good of hotspots year think so -- going have Europe, we'll still think I So Western on tell, kind But the hard to Europe. given pretty

will started will our in we North America continue slower It best We progressively off geography better saw probably. bit to a North a broach little in think got we but -- little January, I better. each America get month.

think, to with that the existed. I some COVID of Some do issues of that, had

You the back heard In at elective us was number COVID the January U.S., overall talk about the of procedures. XX. it in in terms XXs to

that the in So in got XX, back March. XX over

year. quarter. get would for expect for growth don't the North a to think continued revenue So in to lot there and look lot a or of I And then have America. But any big weeks be conditions exposure to through the think, better challenges for today. days progress America, have We certainly the really to relative world we we the I North particularly for America when don't at hotspots, and lot of a We Latin India come. in months are business, of the to going those to global continue

And our has the don't year. that so we can what impact to overall business continue through anticipate we'll do to mitigate, much I to but

Andy Kaplowitz

to Intelex in sense you it very this have on second built a for you've EHS the seems focus platform, Intelex has to wanted that and big -- like pretty growth. I strong Jim, continued And

on can you forward. imagine stimulus the potential going So on this it focus with it sustainability, funding, maybe about FBS. you're platform further of could accelerate would But and actually greater I working given talk growth

Jim Lico

acquisition overall I think love our started work at now. with EHS effort really we and the ehsAI big EHS and in Yes. I we we've did had mean, Systems our acquisition, the started now We the with the ISC SAFER team. -- investment

really the we've secular of quite say, built you worker out As really can that sustainability safety. advantage drivers around and, a frankly, portfolio take

feel we that. so good And about

tremendous the I adds value. itself platform Intelex think

mentioned report assessment, we think really action in to just to help it sustainability use to more -- own how on but drive improve, wonderful to us I and and the take it's prepared a importantly, tool not action. goal how our just remarks, not for As about sustainability, understand setting

future So We that can I think we platform. the opportunities think we feel good about very the investment in there's make.

question, us. double-digit your mostly for to in think I So been specifically relative It's a grower has Intelex the teens. been

opportunities as we've in we ehsAI, got some I to with see back some the the things really with hit to start the machine it, on accelerator of half those the we'll that of of as we year. learning really, think continue build

go certainly think think rate. think sure. move I beyond I'd for double-digit near can we term, think can we continue we to But the it's in a that growth I grower to that. like


Capital question line of RBC is Dray from the Deane with next Your Markets.

Deane Dray

you depending to catch-up maybe a access. implications? on a importantly, implications want of us we pent-up getting to a much about Is basis, Should But back here? a Could been I more in? the how able of there up? are site get really sense think has has that circle opened back the what on being give percent more business on

Jim Lico

on ways. -- capability, to in it, anywhere turn and one, on Look, example. Number care. we've service it as software way comes but an I of think we -- -- where comes the X our takes gone call in I site but nonhealth longer form certainly businesses, it access let's the remote Yes. have of customers We think X

that quickly hard to will access I predict on we've had But And so pent-up little a Deane, some the is particularly it I demand. think think, about up, that think basis. last when here over open you, months be to it's you there several such how honest global with

quarter. necessarily to visibility be it's think don't until So I improve, by continue have here certainly opening we I going enough yet believe say really year. the think customers to the maybe third but all just -- of better the end to it's up wouldn't that to going we We most aren't

it's think see But some vaccinations feel I the we think the of based opening of good are get still So on we see more I really to get have it. trends better if think a up early about. they little start that I here to we've predict predictions But seen, more we could businesses. which could and prolific

which to those business, Tektronix some it Calibration that's -- our even is everywhere Accruent -- of on and on that's to like Gordian site. from So eMaint

the the up nations, too end that if Censis that it -- free in the but will. access. all of United plus hospitals well think in pent-up up are as to a the to most little I a of how hard we mentioned in still a the health difficult we the is care of that's that think for day, any a starting exactly get we in built to we though, necessarily better. little think decisions at continue everything faster. into the to demand, We're On purchasing doing sense little the really you We part, opens we prepared But predict certainly because it's today pockets again, States is And it's continue can guide that see service have side, remarks, slower. our

Deane Dray

for Great. And then follow-up. just a

to are material issue to but this company conference time an think then that broadly, I this Was in a inflation, how product is wield is combat price stage? not Chuck's as people call Was points you mostly I pricing that big power? putting price XX there cost pricing said particular mean we're of prepared And realization. hearing, which through was at I basis every a you are it thinking you, remarks for the heard of about just whole? or business? that for a

Chuck McLaughlin

XX this that wasn't was not basis That points, wasn't the correctly for a QX. company Dean, The fairly So bunch it of you there Chuck. heard mean across and but -- X is I others. uniformly. company,

levers price continue look stay an we continue only it's to I and cost, continue -- this of. at this expect the situation. able going -- that but environment. of push to been in the to think look month, looking evolving at and lever, But on to point we to that levers, it's the it's price something ahead we've every -- is it's to of at one We'll one we're not


next Morgan line Stanley. Pokrzywinski from is with question Josh of the Your

Josh Pokrzywinski

coming you Just abandoned kind COVID sort a that online while, now we But fleet evolve? of of X on what's think of stores that follow-up normalized if Kind for you the a I how noticed on mix? that's about sensitivity. what's versus been kind of question kind think of buckets that? of Deane's do within average? How does reopening. about mix Is positive

Jim Lico

the Yes. I our When you are would for our software is most positive, part, probably the -- pretty profitable. service short about mix say businesses answer, think probably Josh.

our but had and we that didn't consumables. the consumable side, first quarter, as we with equipment So have we the less they the And tremendous we said balance, pretty consumable than little -- good. still on side. revenue success in SaaS, have other much a the -- we on bit And might had as then on the didn't is be is, they're part

few that's As a Chuck that's margin, for ago, articulated thing questions AHS. as a a consumables come back, good

on a quite to And a on if to as So probably enhancer. installation need is on side, think corporation software do software. to the I to margin frankly, balance, the we getting whole, SaaS were the I get take the site

some in move all upside. if it probably can to respects, almost it's accelerate the So software, margin then

Josh Pokrzywinski

is stealth mode. the mid-innings got I pent-up the Is of through release? kind helpful. pencil sort past guess, kind a that made the I of That sort years, still assuming like things recovery XQ of cycle in should second kind comps don't just that growing be the and still half number That's of than we there's in the X%, And in of Or changes growth. version what it. Got organic some out implied terms portfolio, tough I that from over then at, advancement that outlook, X sounds think, rather given this all of really know, recovery? the you of

Chuck McLaughlin

try the second the second in is first part when first In this of flat Josh, last last look the keep you half half our mind, in that. year. Chuck. half, at down I'll year we the and half, almost half, in second were XX% first

have, the X% the second prepared half, X% I to think we in So core said we growth. remarks, in

year. way think not or we're we sequential the I you're -- the saying think But massive the We're back is the math we're acceleration. we that's an portfolio improvement how continued perform, going about we the -- that doing a through we're into So just saying to all go see as recovery.


John the from is Walsh Suisse. question of Cradit line with next Your

John Walsh

associated facilities, that reopening taking to kind talk an maybe guess If if very solutions data days thinking of higher? of customers on just a with I recurring Can were kind that I some bit, selling about also selling about up drive following couple a that little tool, portfolio. Fluke that the about as are you remember question analyst you not of penetration but up their the it. they're opportunity is ago, excited

Jim Lico

work the Yes, mentioned in that connected. think we've resiliency comes Fluke a we've and, seen John. some frankly, clamp of of we the Number that in eMaint on line meters remarks prepared quite had I some that's that growth we've one, I done sales out and -- new the of Connect.

devices, to order still we us, And data tough stages environment, that really us So use. think think opportunity. which that early connected do to market put share even we continue customers to still the launch gives we're of it in in a I gives in very collecting

customers So predictive capability, vibration we've their vibration works how relative more you to answers so PRUFTECHNIK can to vibration analysis remember, as give and some we got maintenance. -- capability, preventive was probably -- to provide in us better data acquisition the

last So to we'll into days, adoption would gets see I of an some are over And couple a with and we but get business that. acceleration start been for great where still to building solutions. that some we early shape, to is while as And eMaint, other manufacturing in that better suspect, see years, well what's customers building of of the very start environment starting that. we're adopting of we've are platform these very

John Walsh

then And Great. a as follow-on. just maybe

of hosting, should brought the targets Analyst Day expect potential businesses? we of out be updated? being we the up You kind Or expect deeper should you'll put into and/or a longer-term dive kind some

Chuck McLaughlin


I expect doing to continue you so think we that that going understanding of the should to to great give we've to think the -- you with could more things. certainly probably here, visibility -- of greater both We want and those things resegmented we're we're portfolio. want

to going you're are terms up away leave But to things ago well. think years to And in I for something forward to give And going that want expect to And pretty those we that. metrics do if remember that for we that things. to then among be of us sure Investor everything. can other similar you stood looks, some Don't Day. of I so that, something gave X forward-look there. the you want make see


Your is the from Scott of with Graham next [Fortive]. line question

Scott Graham

now. work guess Fortive I at I

us points nice unbundle bit? quarter, things for of positive, but OMX XXX know some can are that said just firm. for each I you. basis other trend. that So cost the -- [indiscernible] said. she Chuck, is number? were Very you a I what segment. have little the that I strong you price driving that's The were numbers up I what X this questions think can really

Chuck McLaughlin

Well, strong talked -- something -- and across is growth our also all it's segments. about we as that,

really margins, have gross probably, point to. foremost, thing first and that strong have we I'd we when So that's growth, the and

off ASP hit I But their the and us here. is outcome to really growth -- across board, lift. good here to with leads it TSAs, that as think they stride gave a price, the that starting come a

Scott Graham

you think the for you that number a sustain that can year? of Is the rest

Chuck McLaughlin

we're I looking at pandemic -- well, we're get over I thinking coming what XXX basis of points yes, wouldn't last remember, a year. XXX we're to that's grasp. that's going think we XXX every want year, to in go think with -- to the within year. is as for of OMX points But the our do year that do basis I well through something OMX,

Scott Graham

then really And access or a site field M&A. That's the great. And like you businesses a was Accruent, whether just Gordian when for other need large just then from those are is you. question guys both time have last you in each with look of to the now in operate bought and it what Is do really otherwise, of a the that of a and something little time seemed much for bought businesses look bit simply this areas? more -- can looking like now couple start back with quarters, area better where time to you we -- to these you of

Jim Lico

it's Scott, Jim. Yes.

stopped never we've one, looking. number think, I

where in team given of there easy in through last proud outstanding businesses, looking acquisition for think and job. those to business job. make you're done try would of that certainly get I So of standpoint we in think of -- has been positions, on things period to And active things. has had I from today. done in a good a always a and that benchmark accelerate. do And The some But to say I very business we're short of a time. just an FBS year a an certainly both Gordian we we're the also and Accruent has on not just can things COVID some going were the in was for get -- are site

data. market. that, accelerate Real have our very live do we on -- to continue I Gordian under-penetrated the to think really a side, opportunity

It's Gordian, opportunities. We have Globalizing there. American business almost exclusively business. a great North data a great

So on side, way current breadth built the private by there's products the occurrence portfolio it was of broader a within a given of equity.

tools back So CMMS and do back into companies the of management safely. areas technologies facilities come to people different from office that to to management as bring a people help to workplace, to and variety asset the --

and there's Those I very good secular opportunities. think secular and a drivers. wide secular popular are popular range So -- of yes, great drivers

So are do position things futuristically those And really now. I -- think businesses things. do be of that certainly, that We'll for a good to in opportunities that in we'll think plenty strategy. really opportunities we there's growth and approach us disciplined to can accelerate in do the leverage to -- right


Your next with question line Daryanani the Amit is Evercore. question from of

Amit Daryanani

those about I proposed just there. guess, your is sort that listing that impact would on then the do think SMEs How that's build you X where of you folks? tax also what corporations. talk company? to think have secondly, potentially to stack plays the your do you guess, One from And up this, And for could Could for I get love out just dynamics you specifically, just there's proposed. up? increase to perspective benefits that infrastructure proposed maybe related

Jim Lico


facilities -- Certainly, mean, that going for Gordian infrastructure think certainly on help what money and to Accruent about sure. I help we I it's think is think Sensing I our as the we and to businesses infrastructure going business our and certainly general side, Fluke well. probably, build an call as puts into infrastructure

Tektronix investments about think So and a will as got that a -- in EV offering automotive AV, good good help. has we

quickly -- think gets think there question the occurs? we that certainly of How opportunities. I how as spent. are we about some a that think is stimulus So still

helping is near-term of through the our portion some into talk that these sell health certainly, some opportunities. As the of is AHS care shovel-ready. that the investments how hospitals to challenges of the exposed we But certainly Nearer they've portfolio shovel-ready opportunity about term extent and those often to a into had, a hospitals good go of term, all we deal us and to with continue businesses. as for probably

get things us, get forward obviously, days. then and So out. But think early and that it's law obviously, -- those but in play of very I lots sense, for spent. of opportunity to still some into We'll seeing look I

the portfolio is let but early still some the So do on tax days, Chuck that spending. we I'll comment feel And part. exposed well additional of to

Chuck McLaughlin

to position upon global we're maintain going nature our believe like although and year, happen. I'd at the -- to expect to that's we're is go be peers. of to I'd everything to and pressure. changes gets But because there set to don't we're that we expect going agreed for the -- like of we any but really relative likely note upward to there's But what need the we relative is in how don't rate note up, matter this we still to the this months business what what going here. details year, really would that On tax taxes, our that But direction point, that a given our

pressure, advantaged upward be given be there'll think still but So I our we'll structure.


comes Giordano Cowen. of question final Our from line Joe with the

Joe Giordano

have SaaS these platforms touched at like have for you learned some had this second, curious investment you you you earlier, of of think what We've you on out do I'm platforms you've might where X really over You learned how just years really types talking as years stepped But a from with about office and of of looking sheet your were time Accruent the into a Like well, just did to ago. those went bought in so software balance my there? maybe businesses? when I these we're them Like deploy, up last -- now. apologies. kind couple the ready my to you invest

Jim Lico

yes. Well,

tools I remarks, of software get to we some the I of think of businesses. metric software a businesses prepared built retention, examples I how set is really a an and businesses. improve for the we've important think really when drive is sure, engagement net the some FBS we adapted but I some give digital -- really in of as learned say, now Investor that of businesses, Joe, to give bought we've net commercial dollar is within applying were, Day. tried view is what helping such But to somewhat to We'll think, tuned what deeper would FBS very activity, we the the retention, drive we which and is that tools specific to

for software So always I tools development. think the R&D we not had --

think to been into have think Fortive. put the I exceptionally we into that built tools accelerate capability those the could now but just tools come the well of business, organizations I commercial So our

what that's So learned. that's -- think I we've

that think time, looks compared the paid now we think -- Obviously, bargains like. I know tech what from years it. we now. property, in look places, understand things a the good to also multiples what we are few and multiples EHS as like what investments today, that and we at ago at we But -- paid other I people looked like

engagement, in just look diligence advanced understand terms terms I then So of we metrics kinds of think understand diligence term due you also want to looks a in do were really returns. we've good customer really understand and and we at to understanding the that I think continued And deeper looks think in that. what our improve to the long you But level, due in capability at when getting business. that of like, what I financial good helps like

I from for and wouldn't, I a think get But sure, any to is lot spending add in form, -- to us really the our to around -- that. we're ability here I or just of say way, capital our I to that talking would value learning, not our forward. returns So about that say very that create good feeling anything good about investments and get software. leads shape think And move as try also we to about future

value We think add where for we service hardware strategy. continue to and accelerate and look our can as well we opportunities

Joe Giordano

you like picking business? the quick roll COVID-specific just time really your kind negative that up of think I different, you like really a One regular like not opportunities when off ASP, color. but about helpful as That's obviously guess. a this picked characterize guys how follow-up, up follow-up, But offset totally of I during -- do

Jim Lico

I surgeries think little and month, to Well, pent-up hard of the about think a in question start think ORs surgical the scary. is particular you to doubling it's demand -- number feels centers a that about when

in fact So our consumables COVID, was of it levels the COVID think XX%, decel base. and QX, day, was at flat the that procedures, quite that I frankly, of And a stellar the of in in really end was quarter. I at was the the things being the from about growth our quarter installed one and despite think that think yet that to relative elective pre-COVID is really we

stride. hitting So our Chuck used word the

commercial so to and consumables that done our -- procedures. the revenue above pre-COVID we've rates really when installed accelerate COVID, service rates so some think come base elective I good COVID on back build we and work will get

So basis, we much with that hope financial to normalize and of can't communities well global to opportunity certainly to here the happens on take we've a advantage we coming been particularly that's within for where customers going that, predict the things -- the all which but that be really building reasons for hospitals infrastructure, able customer hospitals. base the about that building be our beyond in which but quickly we that -- serve when and day. work the we success, more And in in months, every

remarks, do the along we from opportunities. there'll as mentioned And think is but pre-COVID end the see at And prepared good about basis. we're positioned. that the business very starting a Censis, things to way -- global be where day, up, a we're I levels open seeing still some feel we to think of with long on we're I getting we So in think


back remarks. I concludes call over session. the That our Q&A closing turn will you. Thank now for

Jim Lico

for -- everyone, season and and with a time you, thank us. for of busy thanks the thanks and Pasha, a spend Thanks, today, taking for is We all for know week to this busy you.

some remaining to more then. second up having organic opportunity well share and you like I to We're into all proud as prepared hope the We well with you see every Thank Chuck and We we the stabilize XXXX Griffin in The the up. -- great of rest seeing -- Investor went as as year. the year through you're we're Chuck to great Have you Ross incredibly well our the perspective. from the look and the our at in we our with remarks -- quarter of about did season. you half May. as have healthy. and any in We excited up I we're think work in as incredibly part showing great a And deeply available an and last QX. first really first follow of and what really have in people what we showing we work that as talk all of we are the of feel heard Q&A, quarter have positioned just is terms feel fit. team and and did and of strategies safe see forward follow-ups day Day our to you. look the earnings forward for questions answering evening, a of in the


today's concludes This gentlemen. and ladies you, Thank conference call.

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