Slide 1: Progress Financial Results Q4 2021 Supplemental Data
January 18, 2022 Progress Financial Results Q4 2021 Supplemental Data
Slide 2: Safe Harbor
2© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Safe Harbor 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 Exc
Slide 3: Conference Call Details
3© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What: Progress Q4 2021 Financial Results Conference Call When: Tuesday, January 18th, 2022 Time: 5:00 p.m. ET Live Call: (800) 773-2954 (847) 413-3731 Conf ID: 50242105 Live / Recorded Webcast: https://
Slide 4: Strong Financial Results Summary Highlights Q4 2021 & FY2021
4© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. • Top-line strength across all products combined with disciplined expense management drove four consecutive quarters of strong performance – providing considerable momentum as we enter FY22 ▪ Top line s
Slide 5: Company Overview
© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Recurring Revenue Revenue ARR Operating Margins YoY Revenue Growth Free Cash Flow Progress is a trusted provider of the best products to develop, deploy and manage high-impact cloud applications and syst
Slide 6: Pillars of our Total Growth Strategy
6© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. • Double revenue every 5 years • Make accretive acquisitions in our key markets • Invest in R&D to improve retention • Maximize operational synergies • Best in class operating margins Total Growth Strat
Slide 7: M&A Approach
7© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. M&A Approach Infrastructure Software Tighter alignment increases synergy potential End Market Alignment 5-yrs - Double Revenues ~10-20% of revenue annually can be financed and integrated efficiently Siz
Slide 8: Summary Q4 2021 Financial Results
8© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q4 2021 Results Q4 2021 Outlook (09/23/2021) GAAP Revenue $140 M $129 M - $133 M Non-GAAP Revenue $144 M $134 M - $138 M GAAP earnings per share (Diluted) $0.33 $0.13 - $0.15 Non-GAAP earnings per share
Slide 9: Driving Total Growth
9© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $379 $432 $456 $557 $610 $0 $150 $300 $450 $600 $750 2018 2019 2020 2021 2022 (F)* Revenue (non GAAP) Driving Total Growth FY’21* revenue growth of 22% Revenue CAGR of 13% 2018 – 2022(F)* * Represents t
Slide 10: Annualized Recurring Revenue: As Reported and Pro Forma
10© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. “As Reported” Kemp adds ~$40M of ARR ARR growth = 12.2% year-over-year Net Retention Rate has ranged between 98%-101% “Pro Forma” Kemp ARR included in both periods presented ARR growth = 3.4% year-over
Slide 11: Annualized Recurring Revenue Trend (Pro-forma)
11© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend (“pro-forma”) Kemp adds ~$40M of ARR ARR growth = 3.4% year-over-year + Net Retention Rate between 98%-101% = Predictable and durable top line performance $452 $460 $
Slide 12: Growing Profitability
12© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $229 $240 $0 $50 $100 $150 $200 $250 $300 2018 2019 2020 2021 2022(F)* Operating Income (non GAAP) Growing Profitability * Represents the mid-point of our FY’22 guidance range Consistent
Slide 13: Business Outlook (as of January 18, 2022)
13© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q1 2022 Current Outlook FY 2022 Current Outlook (As of 01/18/2022) Non-GAAP Revenue $139M – $142M $605M – $615M Non-GAAP EPS $0.83 – $0.85 $3.95 – $4.05 Non-GAAP Operating Margin Not guided 39% Non-GAA
Slide 14: Supplemental Financial Information
14© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Financial Information * * The following supplemental financial information includes GAAP and non-GAAP information. A reconciliation of non-GAAP financial measures to the most directly comp
Slide 15: Supplemental Revenue Information
15© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited) (in thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Revenue by Type License 30,629 19,663 27,514 37,443 33,317 30,107 51,930 41,2
Slide 16: Other Non-GAAP Financial Measures (QTD)
16© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited) QTD QTD QTD GAAP Non-GAAP Non-GAAP (in thousands) Q4 2021 Adjustment Q4 2021 Revenue by Type License 41,236 165 41,401 Maintenance 85,942 3,304 89,246 Serv
Slide 17: Other Non-GAAP Financial Measures (YTD)
17© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited) YTD YTD YTD GAAP Non-GAAP Non-GAAP (in thousands) Q4 2021 Adjustment Q4 2021 Revenue by Type License 156,590 3,149 159,739 Maintenance 325,863 22,547 348,4
Slide 18: D Progress’
D Progress’