Neil Hunn
President and Chief Executive Officer at Roper Technologies
Thanks, Jason. Let's turn to page nine and walk through our Q2 highlights for our Application Software segment. Revenues here were $770 million, up 6% on an organic basis, and EBITDA margins increased to 43.7% in the quarter. In this segment, we continue to see consistently strong performance across the entire group of companies. We'll start with Deltek. Deltek was once again solid across both our government contracting and private sector businesses. Importantly, Deltek continues to see momentum build with our SaaS offerings and retention rates remain at historically high levels.
Also in the quarter, and as Jason mentioned earlier, we announced the acquisition of Replicon for Deltek, Roper's largest bolt-on to-date. Replicon is a market-leading timekeeping and workforce management SaaS solution focused on professional services firms and is highly complementary to Deltek's strategy. We expect Replicon to contribute north of $70 million of revenue and $24 million of EBITDA next year, and we expect the deal to close during the third quarter.
Finally, as it relates to Deltek, we wanted to brag on them for a moment. During the quarter, the Washington Post awarded Deltek the number four top workplace in the D.C. Metro area for large companies. As you know, we have a closely held belief that talent and culture can create long-term competitive advantage, and this is certainly the case for Deltek. During Roper's ownership Deltek, the company has increased its organic growth rate, retention levels, recurring revenue and margin structure, and a big contributor to that success is the structural talent advantage that Deltek continues to build. Congrats to Mike, and congrats to your entire team.
Aderant, our software business focused on the needs of law firms, continues to be excellent. In the quarter, Aderant saw record bookings and continued success in the adoption and cross-sell of their SaaS solutions. Also and importantly, during the quarter, Aderant launched their generative AI enabler, MADDI. Today, MADDI is enabling two solutions outside council guidelines, management and time entry with plans to extend this to AR cash receipt matching and docketing over the coming months.
Over time, MADDI will be integrated widely across Aderant's product platforms. Generative AI for the legal space has tremendous potential. One such example in the market today is Onyx. Onyx powered by MADDI solves a massive challenge that all law firms face, namely how to navigate outside counsel guidelines or the biller requirements that clients impose on their law firms. It's fairly common for a large law firm to have to navigate hundreds of thousands of bespoke client billing requirements. Today, Onyx uses generative AI to extract contractual terms and convert them into business tools used in the time entry and billing processes, a true game changer.
More broadly across Roper, we're excited about the potential of generative AI and large language models. We believe, given our deeply verticalized and application-specific business model, that our businesses are structurally advantaged given that all AI, computational and generative, need context, specifically data and workflows in which to train or target the technology. Internally, we're working closely with our businesses on the productivity and product-enabled opportunities associated with Gen AI. Certainly much more to come on this.
Now back to the segment performance in Vertafore, our software business that tech-enabled property and casualty insurance agencies. Vertafore continues to be a great asset for us with solid performance across our core P&C business and the recent MGA solutions bolt-on. Our health care IT businesses also performed very well in the quarter with growth in each of our health care IT franchises, CliniSys, Data Innovations and Strata.
Frontline also continues to deliver for us. Frontline's mission is to empower the front line of education. As many of you know, the hiring of teachers and administrative staff is particularly challenging, and Frontline software solutions better equip K-12 school districts to navigate these challenges. Because of this, Frontline solutions are mission-critical and of high importance to their school district customers. As such, Frontline's net retention is consistently strong.
Looking to the second half of the year, we expect to see organic revenue growth to be in the mid single-digit area for the segment. Overall, very strong results and outlook for this segment.
Turning to page 10. Revenues in the quarter for our Network Software segment were $358 million, up 5% on an organic basis, and EBITDA margins were strong at 54.2%. As with our Application Software segment, growth and performance was solid across the segment. Relative to business-specific comments, we'll start with our US and Canadian freight matching businesses, DAT and Loadlink, both of which grew in the quarter despite continued challenges across the broader freight and logistics markets. I'll remind you that our businesses are critical to the operation and execution of the North American spot freight market.
In addition and importantly, the spot market is a long-term secular beneficiary in terms of the volume of future freight shipments. Throughout and across the freight and economic cycle, DAT and Loadlink continue to innovate and launch new products and offerings to help drive enhanced customer value and share of wallet. As we speak, DAT is launching a generative AI-enabled solution among other initiatives targeted to combat freight industry fraud. This is in addition to their existing set of computational AI and data science-driven solutions like DATiQ, which they deployed at scale over the last three or four years.
IPipeline, our network software business that tech enables the distribution channel for life insurance and annuities, had very nice ARR gains in the quarter, driven by strong retention and customer expansion activity.
Foundry continued its string of strong performance and had terrific growth for their flagship product Nuke, which enabled continued double-digit recurring revenue growth. As we mentioned last quarter, Foundry commenced their subscription pricing transition for Nuke. And in the first half of the year had north of 60% of their Nuke units sold under their new model ahead of their transition plan.
Finally, our alternate site health care businesses, led by SoftWriters and SHP were strong in the quarter. Execution was solid, and the business has benefited by an improving census in skilled nursing, assisted living facilities and home health reaching the highest occupancy levels in patient volumes since the onset of the pandemic. Turning to the second half of the year, we expect to see mid single-digit organic growth for this segment based on sustained ARR momentum.
As we turn to page 11, revenues in the quarter for our tech-enabled products segment were $403 million, up 19% on an organic basis. EBITDA margins for this segment were strong at 36.4% for the quarter. Across this segment, business performance and execution was exceptional. Importantly, the broad-based supply chain issues continue to ease.
Neptune, our water meter and technology products business continues to be great. In the quarter, they had a record revenue performance. Importantly, Neptune continues to see increasing demand and momentum for the residential and commercial ultrasonic or static meters. We remain bullish about Neptune in the market in which they compete. Given this market tends to be quite steady as Neptune's customers' budgets are typically fixed year-to-year and not tied to broader macroeconomic trends or cycles.
Verathon was awesome in the quarter as well, with double-digit order growth and tremendous operational execution. Specifically, Verathon saw strength across the reoccurring single-use products, both bronchoscope or BFlex, and video innovation or GlideScope as well as BladderScan capital purchases.
Northern Digital or NDI was also strong in the quarter, setting a record revenue for the business. A group of smaller businesses here, IPA, rf IDEAS and Inovonics were fantastic in the quarter as they substantially work through a series of nagging supply chain challenges. Relative to the second half of the year, we expect to see high single-digit organic revenue growth. Recall, we have a tough Q3 revenue and margin comp to lap from the prior year.
Now please turn to page 13, and let's review our increased 2023 guidance. Based on our strong second quarter performance, we're raising our full year 2023 guidance for total revenue, organic revenue and adjusted DEPS. For 2023, we now expect total revenue growth to be around 13%, an increase from 12% plus last quarter. In addition, we're raising our full year organic revenue outlook to be in the 7% CIVCO [Phonetic], an increase from 6% to 7% last quarter and 5% to 6% in our original guide.
As a result of our improved revenue outlook, we're increasing our DEPS guidance to be in the range of $16.36 and $16.50, up from our prior guidance of $16.10 to $16.30. Assumed in this guidance is a tax rate trending to the high end of our 21% to 22% range. Specific to the third quarter, we're establishing our DEPS guidance to be in the range of $4.16 and $4.20.
Now please turn to page 14, and then we'll look forward to answering your questions. We want to leave you with the same four points with which we started. First, the year started strong and we delivered solid second quarter results. In the quarter, we saw revenues increase 17% to $1.53 billion. This growth was underpinned with 9% organic revenue growth and 8% organic software recurring revenue growth. In addition, EBITDA margins were quite strong at 40.3%.
Second, based on the strong second quarter performance, the recurring nature of our revenue stream and the importance of our solutions to our customers, we're increasing our full year total and organic revenue growth outlook and increasing our full year DEPS outlook to be between $16.36 and $16.50.
Third, we're excited by the potential of generative AI, both as it relates to internal productivity, and using our application specificity to provide context for new product development ideas. We look forward to sharing progress and updates in coming quarters and years.
And finally, we continue to be active with our capital deployment activities as we have north of $4 billion of available M&A firepower. As we've been discussing over the past several months, we have a very large pipeline of opportunities, though, as always, we remain super patient and highly disciplined to ensure the continued optimal deployment of our available capital.
Now as we turn to your questions. And if you flip to the final slide, our strategic flywheel, we want to once again thank those of you who joined us in New York for our first ever Investor Day and for the hundreds who have watched the replay over the past few months. During that long-form overview of Roper, we were excited to share with you our long-term strategy, the high-quality nature of our portfolio of businesses, our operating ability to improve our businesses, our process-driven capital deployment approach and our compelling long-term business model that compounds cash flow in the mid-teens area. So thank you for your continued interest in Roper.
And with that, let's open it up to your questions.
