Slide 1: Q1 2023 Supplemental Data - Progress Financial Results
Q1 2023 Supplemental Data March 28, 2023 Progress Financial Results
Slide 2: Forward Looking Statements
2© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Forward Looking Statements 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
Slide 3: Conference Call Details
3© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What: When: Time: To register for the Live Call: Live / Recorded Webcast: Please note: Webcast is listen-only. Conference Call Details Progress Fiscal Q1’23 Financial Results Tuesday, March 28, 2023 5:0
Slide 4: Strong ARR and Retention Rates; Strong Balance Sheet
4© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong ARR and Retention Rates; Strong Balance Sheet Definitions of non-GAAP financial measures (including ARR and NRR) can be found in "Important Information Regarding Non-GAAP Financial Information".
Slide 5: Annualized Recurring Revenue Trend
5© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend* MarkLogic ARR ~$80M ARR growth = 3.9% year-over-year + Net Retention Rate between 100%-103% = Predictable and durable top line performance All periods reported in con
Slide 6: Annualized Recurring Revenue: As Reported and Pro Forma
6© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. “As Reported” MarkLogic adds ~$80M of ARR ARR growth = 20.4% year-over-year Net Retention Rate has ranged between 101%-102% “Pro Forma” MarkLogic ARR included in both periods presented ARR growth = 3.9%
Slide 7: ARR Exchange Rate Comparison (pro-forma)
7© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. ARR Exchange Rate Comparison (“pro-forma”) ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY22 Rates” represents results reported translated using our FY22
Slide 8: Driving Total Growth: Revenue CAGR of 12.5%
8© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Revenue CAGR of 12.5% 2018 – 2023(F)* * Represents the mid-point of our updated FY’23 guidance range; guidance includes expected contribution from MarkLogic. Driving Total Growth
Slide 9: Growing Profitability
9© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Operating Income CAGR of 14.4% 2018 – 2023(F)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our updated FY’23 guidance range; guidance includes expected
Slide 10: Summary Q1 2023 Financial Results
10© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q1 2023 Results Prior Q1 2023 Outlook (provided on January 17, 2023) GAAP Revenue $164.2M $156M - $160M Non-GAAP Revenue $165.6M $157M - $161M GAAP earnings per share (Diluted) $0.53 $0.35 - $0.39 Non-
Slide 11: Capital Allocation Strategy
11© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. PRIMARY FOCUS $ $ Capital Allocation Strategy Continue to prioritize accretive M&A opportunities that meet our disciplined criteria Repurchase shares to offset dilution from our equity programs • In Q
Slide 12: Pillars of our Total Growth Strategy
12© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Total Growth Strategy Continues to Produce Results Deploy Capital for Highest Shareholder Return • Disciplined, accretive acquisitions • Opportunistic share repurchases • Ample financing at favorable r
Slide 13: M&A Approach
13© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Infrastructure Software Tighter alignment with existing products increases synergy potential End Market Alignment Target Acquiring 10-25% of revenue Can be financed and integrated efficiently Sizing Du
Slide 14: Business Outlook (as of March 28, 2023)
14© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of March 28, 2023) Q2 2023 Current Outlook FY 2023 Prior Outlook (As of January 17, 2023) FY 2023 Current Outlook GAAP Revenue $167M - $171M $671M - $681M $676M - $684M Non-GAAP Re
Slide 15: Supplemental Financial Information
Supplemental Financial Information
Slide 16: Supplemental Revenue Information (Unaudited)
16© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 17: Supplemental Revenue Information (Unaudited)
17© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 18: Non-GAAP Supplemental Information
18© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Progress furnishes certain non-GAAP supplemental information to its financial results. We use such non-GAAP financial measures to evaluate our period-over-period operating performance because our manag
Slide 19: Important Information Regarding Non-GAAP Financial Information
19© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information • Cyber incident - We exclude certain expenses resulting from the detection of irregular activity on certain portions of our corporate net
Slide 20: Dv Progress’
Dv Progress’