Progress Software Corporation · NASDAQ:PRGS
Progress Software — Q3 2020 Earnings Presentation
13 slides from Progress Software's earnings presentation, Sep 8, 2020
Slide 1: Progress Q3 Preliminary Results and Chef Acquisition Supplemental Data
Progress Q3 Preliminary Results and Chef Acquisition Supplemental Data
Slide 2: Legal Notice
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 Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements w
Slide 3: Conference Call Details
Conference Call Details What: Progress Q3 Preliminary Results and Chef Acquisition When: September 8, 2020 Time: 8:00 a.m. ET Live Call: 1-800-367-2403, pass code 4134193 Live / Recorded Webcast: http://investors.progress.com © 2020 Progress Sof tware Corporation and/or its subsidiaries or af f ilia
Slide 4: Preliminary Q3 2020 Financial Results
Preliminary Q3 2020 Financial Results Q3 2020 Outlook Preliminary Q3 Results (6/25/2020) (9/8/2020) * GAAP Revenue $103 M - $108 M $108 M - $110 M Non-GAAP Revenue $104 M - $109 M $109 M - $111 M GAAP earnings per share (Diluted) $0.47 - $0.49 $0.50 - $0.53 Non-GAAP earnings per share (Diluted) $0.6
Slide 5: Preliminary Business Outlook
Preliminary Business Outlook FY 2020 Prior Outlook FY 2020 Revised Outlook (6/25/2020) (9/8/2020) * GAAP Revenue $425 M – $435 M $438 M – $442 M Non-GAAP Revenue $433 M – $443 M $452 M – $456 M GAAP EPS $1.81 – $1.85 $1.66 – $1.69 Non-GAAP EPS $2.82 – $2.86 $2.94 – $2.97 Revised outlook includes Che
Slide 6: Chef Overview
Chef Overview DevOps pioneer founded in 2008, Chef’s Enterprise Automation Stack is an automation platform for IT operators and security teams to build, deploy and manage any application, securely, to any infrastructure Company Highlights >700 • More than $72M in TTM revenue (TTM June 30, 2020) Cust
Slide 7: Enterprises Want To Leverage Tech Like FAANG
Enterprises Want To Leverage Tech Like FAANG $234B ~$223B $15B ~$15B Annual Ad Revenue Annual Revenue Source: The Information - How YouTube and Google Cloud Compare to Rivals (Feb 3 2020) Source: Public 10-K filings * Amazon Revenue is TTM minus Ads and AWS © 2020 Progress Sof tware Corporation and/
Slide 8: Companies Struggle to Operationally Transform
Companies Struggle to Operationally Transform Legacy Security Talent Speed Culture Software automation is the foundation of the transformation © 2020 Progress Sof tware Corporation and/or its subsidiaries or af f iliates. All rights reserv ed. 8
Slide 9: Chef - Continuous Delivery Automation
Chef - Continuous Delivery Automation Automating Continuous Delivery – At scale across all apps / environments ▪ Legacy apps ▪ Cloud-native apps ▪ Packaged apps ▪ IT apps Every Team Every Change Every Environment ▪ Align Dev, Ops, and Security teams via ▪ Drive agility across all change events ▪ Ena
Slide 10: M&A Framework
M&A Framework --- Goal is to double the size of the company in 5 years --- Accretive M&A adds scale and cash flows, and generate shareholder returns ▪ Target acquisition profile: ✓ Complementary to our business (product, audience & growth profile) ✓ Significant recurring revenue and excellent retent
Slide 11: Chef Improves Recurring Revenue Mix
Chef Improves Recurring Revenue Mix Recurring Revenue % * Chef’s subscription based, term-license model 83% results in a higher overall recurring revenue mix and uses ARR as a key metric 81% 80% We believe Chef can increase our already 78% high overall mix of recurring revenue by approximately 200 b
Slide 12: Transaction Overview
Transaction Overview • Definitive agreement signed September 4, 2020 Timing • Expected close in Q4 2020 subject to customary closing conditions and regulatory review • $220 million, all-cash transaction Purchase Price ▪ $120 million of existing cash ▪ Up to $100 million revolving credit facility • >
Slide 13: Progress
D Progress