Progress Software Corporation · NASDAQ:PRGS
Progress Software — Q4 2020 Earnings Presentation
22 slides from Progress Software's earnings presentation, Jan 14, 2021
Slide 1: Q4 2020 Supplemental Data Progress Financial Results
Q4 2020 Supplemental Data Progress Financial Results Exhibit 99.2
Slide 2: Legal Notice
2© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Legal Notice This presentation contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Ex
Slide 3: Conference Call Details
3© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What: Progress Q4 2020 Financial Results Conference Call When: Thursday, January 14th, 2021 Time: 5:00 p.m. ET Live Call: 1-888-458-4121, pass code 6657134 Live / Recorded Webcast: http://investors.prog
Slide 4: Q4 2020 highlights
4© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. • Strong financial results — Non-GAAP Revenue, non-GAAP EPS and Free Cash Flow all above high end of guidance range – Results driven by stronger than expected performance by OpenEdge and DCI products –
Slide 5: Progress is a trusted provider of products to develop, deploy and manage business applications
5© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Progress is a trusted provider of the best products to develop, deploy and manage high-impact business applications
Slide 6: The Evolving Application / Technology Team
6© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. The Evolving Application / Technology Team Developers IT Ops DevOps Designers Data AnalystsBusiness Analysts Data Scientists DevSecOps QA
Slide 7: M&A Framework
7© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. M&A Framework --- Goal is to double the size of the company in 5 years --- Accretive M&A enables us to add scale and cash flows, and generate strong shareholder returns ▪ Target acquisition profile: ➢ C
Slide 8: Progress Investment Highlights
8© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Progress Investment Highlights Durable, predictable financial model High quality revenue base and highly recurring revenue model Accretive M&A and operational efficiencies driving margin improvement Tra
Slide 9: Summary Q4 2020 Financial Results
9© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q4 2020 Outlook (9/29/2020) Q4 2020 Results GAAP Revenue $119 M - $123 M $122.4 M (+5% YoY) Non-GAAP Revenue $125 M - $129 M $129.1 M (+5% YoY) GAAP earnings per share (Diluted) $0.26 - $0.29 $0.39 Non-
Slide 10: Summary 2020 Financial Results
10© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. FY 2020 Outlook (9/29/2020) FY 2020 Results GAAP Revenue $438 M - $442 M $442.2 M (+7% YoY) Non-GAAP Revenue $452 M - $456 M $456.2 M (+6% YoY) GAAP earnings per share (Diluted) $1.63 - $1.66 $1.76 (+2
Slide 11: Recurring Revenue Contributing to Stability
11© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. * Excludes impact of FX by using constant exchange rates for all years. Recurring Revenue includes: Maintenance Revenue, Revenue derived from hosted/SaaS solutions and subscription revenue derived from
Slide 12: DCI Revenue vs. ACV -- the impact of ASC 606
12© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $29 $23 $40 $34 FY17 FY18 FY19 FY20 DCI Revenue ($M) - ASC 606 $32 $32 $32 FY18 FY19 FY20 DCI ACV ($M) • Variability in revenue primarily caused by multi- year term license contracts • Annual Contract
Slide 13: Driving Operating Leverage
13© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Driving Operating Leverage (% of non-GAAP revenue) 34% 35% 38% 40% 2017 2018 2019 2020 Non-GAAP Operating Margin $132 $134 $162 $183 2017 2018 2019 2020 Non-GAAP Operating Income ($M) Focus on cost man
Slide 14: Free cash flow and leverage ratios
14© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong free cash flow and low leverage ratios allow for greater financing flexibility to execute total growth strategy $101 $122 $120 $129 $142 2016 2017 2018 2019 2020 Non-GAAP Adjusted Free Cash Flow
Slide 15: Capital Allocation
15© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Capital Allocation • Continue to return capital to shareholders in the form of dividends • Accretive M&A that meets our disciplined criteria • Repurchase shares to offset dilution from our equity progr
Slide 16: Business Outlook (as of January 14, 2021)
16© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of January 14, 2021) Q1 2021 (1/14/2021) FY 2021 (1/14/2021) Non-GAAP Revenue $119 M - $123 M $513 M – $521 M Non-GAAP EPS $0.70 - $0.73 $3.22 – $3.28 Non-GAAP Operating Margin Not
Slide 17: Supplemental Financial Information
Supplemental Financial Information
Slide 18: Results of Operations by Segment
18© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Results of Operations by Segment (Presented on a GAAP basis) (Unaudited) (1)The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a
Slide 19: Supplemental Revenue Information
19© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Presented on a GAAP basis) (Unaudited)
Slide 20: Other Non-GAAP Financial Measures
20© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited)
Slide 21: Other Non-GAAP Financial Measures
21© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited)
Slide 22: D Progress
D Progress