PowerSchool Holdings, Inc. (NYSE:PWSC) Q4 2023 Earnings Conference Call February 26, 2024 5:00 PM ET
Company Participants
Shane Harrison - Senior Vice President of Investor Relations
Hardeep Gulati - Chief Executive Officer
Eric Shander - Chief Financial Officer
Conference Call Participants
Stephen Sheldon - William Blair
David Lustberg - Jefferies
Rich Hilliker - UBS Securities
Saket Kalia - Barclays Capital
Brian Peterson - Raymond James
Ryan MacDonald - Needham & Company
Koji Ikeda - Bank of America
Joe Vruwink - Robert W. Baird
Callie Valenti - Goldman Sachs
Operator
Ladies and gentlemen, greetings, and welcome to the PowerSchool Fourth Quarter 2023 Earnings Call. As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Shane Harrison, Senior Vice President, Investor Relations. Please go ahead.
Shane Harrison
Thank you, Operator. Welcome everyone to PowerSchool's earnings conference call for the fourth quarter and full-year ended December 31, 2023. I wanted to first let you know that we posted a slide deck to the Investor Relations section of our website that accompanies our remarks here. On the call today, we have PowerSchool CEO, Hardeep Gulati; and President and CFO, Eric Shander.
Before getting started, I'd like to emphasize that this call, including the Q&A portion, will include statements related to the expected future results for our company, which are therefore forward-looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earnings release and other SEC filings. Today's remarks will also include references to non-GAAP financial measures. Additional information, including definitions and reconciliations between non-GAAP financial information and the GAAP financial information, is provided in the corresponding press release and results presentation which are both posted on PowerSchool's Investor Relations website at investors.powerschool.com. A replay of this call will also be posted to the same website.
With that, I'll turn the call over to Hardeep.
Hardeep Gulati
Thank you, Shane, and thank you, everyone, for your time today. PowerSchool finished 2023 with another outstanding quarter of execution, innovation, and profitability. Once again, we delivered double-digit revenue growth that was within our guidance, while exceeding our guidance for adjusted EBITDA. For every quarter since our IPO, now 10th quarter in the row, we have met or exceeded the guidance we provided for both revenue and EBITDA. We crossed $700 million of annual recurring revenue as of December. And for the year, we grew our top line double digits while expanding our adjusted EBITDA margin by 210 basis points to 33.2%. And we continue to translate our success into cash through our durable financial model, reaching a record free cash flow margin in 2023.