Slide 1: Progress Financial Results Q1 2024 Supplemental Data
March 26, 2024 Progress Financial Results Q1 2024 Supplemental Data
Slide 2: Forward Looking Statements
2© 2024 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© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Conference Call Details Please note: Webcast is listen-only. What: When: Time: To register for the Live Call: Live / Recorded Webcast: Progress Fiscal Q1 2024 Financial Results Tuesday, March 26, 2024 5
Slide 4: Summary Highlights Q1 2024
4© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved.© 2024 Progress Software Corpora ion and/or its subsidiaries or affiliates. All ights reserved. Summary Highlights Q1 2024 • Revenues of $185M, up 11% (y/y, constant currency), above high end of guidance
Slide 5: Annualized Recurring Revenue Trend
5© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend All periods reported in constant currency, using current year budgeted exchange rates ARR growth = 0.2% year-over-year + Net Retention Rate between 99%-102% = Predicta
Slide 6: Driving Total Growth
6© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Driving Total Growth Revenue CAGR of 11% 2019 – 2024(F)* * Represents the mid-point of our FY’24 guidance range
Slide 7: Growing Profitability
7© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Operating Income CAGR of 12% 2019 – 2024(F)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our FY’24 guidance range Growing Profitability
Slide 8: Unlevered Free Cash Flow
8© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Unlevered AFCF CAGR of 11% 2019 – 2024(F)* * Adjusted free cash flow represents the mid-point of our FY’24 guidance range Unlevered Free Cash Flow
Slide 9: Capital Allocation Strategy
9© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Capital Allocation Strategy PRIMARY FOCUS Continue to prioritize accretive M&A opportunities that meet our disciplined criteria to create the strongest returns. Repurchase shares to offset dilution from
Slide 10: Well Defined M&A Framework
Well Defined M&A Framework ▪ Cast a wide net across infrastructure software and all aspects of the development lifecycle ▪ Tight alignment increases synergy potential ▪ ~10-25% of current Progress revenues ▪ Can be financed and integrated efficiently ▪ High recurring revenue and customer retention ▪
Slide 11: Summary Q1 2024 Financial Results
11© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Summary Q1 2024 Financial Results Q1 2024 Results Prior Q1 2024 Outlook (provided on Jan 16, 2024) Revenue $185M $180M - $184M GAAP earnings per share (Diluted) $0.51 $0.38 - $0.42 Non-GAAP earnings pe
Slide 12: Business Outlook (as of March 26, 2024)
12© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of March 26, 2024) Q2 2024 Current Outlook FY 2024 Prior Outlook (as of January 16, 2024) FY 2024 Updated Outlook Revenue $166M - $170M $722M - $732M Unchanged GAAP EPS $0.22 - $0.
Slide 13: Supplemental Financial Information
Supplemental Financial Information
Slide 14: ARR Exchange Rate Comparison – 2023 by Quarter
14© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. ARR Exchange Rate Comparison – 2023 by Quarter ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY23 Rates” represents results reported translated using our
Slide 15: ARR Exchange Rate Comparison – 2020-2023
15© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. ARR Exchange Rate Comparison – 2020-2023 ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY23 Rates” represents results reported translated using our FY23
Slide 16: Supplemental Revenue Information (Unaudited)
16© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited) Quarterly Revenue by Region and by Type (GAAP) (in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Revenue by Type License 57,568 56,407 50,544 56,270 64
Slide 17: Non-GAAP Supplemental Information
17© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Progress furnishes certain non-GAAP supplemental information to our financial results. We use such non-GAAP financial measures to evaluate our period-over-period operating performance because our manag
Slide 18: Important Information Regarding Non-GAAP Financial Information
18© 2024 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information • Cyber incident and vulnerability response expenses, net • November 2022 Cyber Incident - We exclude certain expenses resulting from the
Slide 19: Dv Progress’
Dv Progress’