Neil Hunn
President and Chief Executive Officer at Roper Technologies
Thanks, Jason, and well done. Let's turn to page 11 and walk through our 2022 highlights for our Application Software segment. Revenues here were $2.64 billion, up 7% on an organic basis, and EBITDA margins were 44.1%. Performance across the segment was just solid in 2022. Vertafore, our software business of tech-enabled property and casualty insurance agencies accelerated their growth led by continued strength in the enterprise-class segment. In addition, the two vertical bolt-on acquisitions are strategically on point, integrated and performing well.
As we've been discussing, SaaS migrations have been a key theme for us over the past few years, and 2022 was no different. Both Aderant and Deltek continued their SaaS migration momentum and both grew nicely based on solid customer ads and strong retention.
Deltek was particularly strong in the private sector end markets, but as Jason mentioned, Deltek did see some slower decision-making specific to new bookings in the enterprise segment for their GovCon solutions. At our upcoming March 21st Investor Day, you'll get an opportunity to hear directly from the leaders at Vertafore, Deltek and Aderant about how they're competing and consistently winning in the market.
As it relates to PowerPlan, we liked what we saw last year. PowerPlan was strong, given their refocused and narrowed strategy, combined with a highly aligned team. As a result, PowerPlan crossed a meaningful milestone, launching a SaaS solution for their flagship product -- tax fixed assets. Congrats to the team for a great 2022 and looking-forward to more great things in 2023.
2022 was a very good year for our application healthcare IT businesses as well. Strata's combination with EPSi has just been great. The integration is complete and the number of EPSi to strategize conversions and upsell cross-sell are both meaningfully ahead of our deal expectations.
CliniSys and Data Innovations continue to win in the marketplace. The internal combination of CliniSys and Sunquest has rejuvenated and energized their high-performance culture, which is enabling the business to more effectively compete and win in the marketplace.
Data Innovations continues to gain share and evolve to become the de-facto standard as it relates to lab Metaware.
Finally, Frontline, our cornerstone 2022 acquisition is off to a solid start. We look forward to sharing the strategic and financial success of this business in the quarters and years to come.
I'd like to reiterate with what we started with, performance here strategically, operationally and financially was just great in 2022. Very proud of the team and the performance. Congrats and thanks.
Looking to the outlook for 2023, we expect to see organic growth in the mid-single-digit area, based on our market positions and growth in recurring revenue.
Turning to page 12. Revenues in 2022 for our Network Software segment were $1.38 billion, up 13% on organic basis and EBITDA margins were strong at 53.3%.
As we dig in the business-specific performance, our U.S. and Canadian freight matching businesses were great in 2022. Their exceptional growth is based on many factors, certainly favorable market conditions but also continued product and network innovations as well as terrific product and package designs that drove increased value for network participants.
IPipeline and iTradeNetwork were stellar performers throughout 2022 and benefited from having strong renewal and expansion activity. iPipeline, like that of PowerPlan is benefiting from having a narrowed and more focused strategy, namely tech enabling the life insurance and annuity distribution network.
Moving the Foundry, which had another great year, as part of Roper. Foundry continues to be the market-leading software and post-production media entertainment. During 2022, Foundry's product innovations were impressive with several new features focused on ML based automation. Starting in 2023, Foundry's flagship product, Nuke will begin its subscription transition, so looking forward for solid progress on that front.
Growth in our businesses that focus on alternate site healthcare was led by SHP and SoftWriters, and importantly, retention rates across SHP, SoftWriters and MHA remain extremely high. Broadly, the performance across this segment was great. Congrats to the teams for this terrific year financial performance.
Turning to the outlook for 2023, we expect to see mid-single-digit organic growth for this segment based on broad and sustained growth across the Group, and a normalization of market conditions for freight and logistics applications.
As we turn to page 13, revenues in 2022 for our tech-enabled product segment were $1.35 billion, up 10% on an organic basis. EBITDA margins for this segment were 35.4% for the year. As expected, EBITDA margins expanded in the second-half of the year, as pricing and supply-chain improvements flowed through.
Let's start with Neptune, our water meter and technology product business. This past year was just terrific, with very strong growth based on strong market conditions, strong share gains and strong adoption of their static ultrasonic meter technology. In addition, Neptune launched their cellular connectivity solution and did a fantastic job, migrating a large chunk of their customer base to their newest data management solution. Spectacular job, Neptune, congrats Don to you and your team.
Northern Digital, which is our precision measurement tech company continue to see terrific demand for their optical and EM Solutions. NDI benefits from having a strategy that is laser-focused on healthcare applications and an R&D capability that is unmatched in the industry. NDI's CorTec is used in countless life-saving procedures on a daily basis across the globe.
Verathon turned in another solid year performance in 2022 as well. The growth is based on momentum across their video intubation and single-use bronchoscope product lines. As you saw in the press release, we did take the opportunity to clean-up a legacy patent dispute. Make no mistake, the innovation capability at Verathon is nothing short of exceptional, and we could not be more confident about their most recent product launches and the new concepts in development pipeline. As it relates to the single use bronc space, we hope to see Verathon capture the number one market position in North America in 2023.
Our outlook for the year in this segment is in the high-single-digit area and is based on continued strength and backlog at Neptune, as well as continued growth across our medical product businesses. Specific to the first quarter, we do have easier comps versus a year ago.
Now please turn to page 15, let's review our 2023 and Q1 guidance. For 2023, we're initiating our DEPS guidance to be in a range of 1590 and 1620. Underpinning this guidance is expected organic growth of 5% to 6% and the tax-rate in the 21% to 22% area. Specific to the first quarter we're establishing our DEPS guidance to be in the 380 to 384 range.
Now please turn with us to our final page, page 16. As we turn to this page, we want to leave you with the same key points with which we started. First -- 2022 was a year of great accomplishment for our teams and our enterprise. We grew revenue 11%, 9% on an organic basis, and we did this while continuing to increase the underlying quality of our revenue base. In fact, we delivered double-digit increases in our software organic recurring revenue during 2022. EBITDA grew 12%, our EBITDA margins expanded 20 basis-points to 40.4%. Also, we successfully concluded our multiyear divestiture program and deployed $4.3 billion against our longstanding capital deployment strategy headline by frontline education.
The second key takeaway is that we're well positioned for double-digit cash-flow compounding in 2023 based on our organic revenue growth outlook, contributions from our 2022 acquisition cohort, and having well north of $4 billion of M&A capacity. To this end, we continue to be very active in the M&A markets. But as you saw during 2022 and as always, we will remain super patient and highly disciplined to ensure optimal deployment of our available capital.
Finally, and perhaps the most important, the new higher-quality Roper portfolio is becoming increasingly more evident, and we've never been more excited about the future of enterprise.
As we open it up to your questions, we'd like to take this opportunity to remind everyone that we are hosting an Investor Day on Tuesday, March 21st in New York. We look forward to seeing many of you there.
So, with that, let's open it up to your questions.
