Slide 1: Progress Financial Results Q1 2022 Supplemental Data
March 29, 2022 Progress Financial Results Q1 2022 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 Q1 2022 Financial Results Conference Call When: Tuesday, March 29, 2022 Time: 5:00 p.m. ET Live Call: (800) 773-2954 (847) 413-3731 Conf ID: 50242106 Live / Recorded Webcast: https://edge
Slide 4: Strong Financial Results, Good Start to FY22
4© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong Financial Results, Good Start to FY22 Summary Highlights Q1 2022 ▪ Kemp integration proceeding at or ahead of plan…no major speedbumps or surprises. ▪ Broad top-line strength and momentum continu
Slide 5: Results Overview & Guidance
© 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 the leading provider of the best products to develop, deploy and manage high- impact cloud applications and s
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 • Maintain best in class operating margins Total Gro
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 Q1 2022 Financial Results
8© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q1 2022 Results Prior Q1 2022 Outlook (provided on January 18, 2022) GAAP Revenue $144.9M $136M - $139M Non-GAAP Revenue $147.5M $139M - $142M GAAP earnings per share (Diluted) $0.46 $0.32 - $0.34 Non-G
Slide 9: Driving Total Growth
9© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $379 $432 $456 $557 $613 2018 2019 2020 2021 2022 (F)* Revenue (non GAAP) Driving Total Growth FY’22* revenue growth of 10% Revenue CAGR of 13% 2018 – 2022(F)* Represents the mid-point of our updated FY
Slide 10: Annualized Recurring Revenue Trend (pro-forma)
10© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend (“pro-forma”) Kemp ARR ~$40M ARR growth = 3.5% year-over-year + Net Retention Rate between 98%-101% = Predictable and durable top line performance All periods reporte
Slide 11: Annualized Recurring Revenue (constant currency)
11© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. “As Reported” Kemp adds ~$40M of ARR ARR growth = 12.4% year-over-year Net Retention Rate has ranged between 100%-102% “Pro Forma” Kemp ARR included in both periods presented ARR growth = 3.5% year-ove
Slide 12: ARR Exchange Rate Comparison (pro-forma)
12© 2022 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 FY21 Rates” represents results reported translated using our FY2
Slide 13: Growing Profitability
13© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $229 $242 2018 2019 2020 2021 2022(F)* Operating Income (non GAAP) Growing Profitability * Represents the mid-point of our FY’22 guidance range updated March 29, 2022 Consistent growth i
Slide 14: Capital Allocation Strategy
14© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Continue to prioritize accretive M&A opportunities that meet our disciplined criteria Capital Allocation Strategy Primary focus Continue returning capital to shareholders in the form of dividends only
Slide 15: Business Outlook (as of March 29, 2022)
15© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q2 2022 Current Outlook FY 2022 Prior Outlook (Provided on January 18, 2022) FY 2022 Current Outlook Non-GAAP Revenue $145M – $148M $605 – $615M $609M – $617M Non-GAAP EPS $0.94 – $0.96 $3.95 - $4.05 $
Slide 16: Supplemental Financial Information
Supplemental Financial Information * * The following supplemental financial information is presented on a GAAP basis. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP numbers can be found in the financial results press release that we issued today.
Slide 17: Supplemental Revenue Information (Unaudited)
17© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited) (in thousands) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Revenue by Type License 33,317 30,107 51,930 41,236 42,750 Maintenance 76,977 80,069 82,875 85,942 89
Slide 18: Other Non-GAAP Financial Measures (Unaudited)
18© 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) Q1 2022 Adjustment Q1 2022 Revenue by Type License 42,750 132 42,882 Maintenance 89,963 2,433 92,396 Serv
Slide 19: D Progress’
D Progress’