Progress Software Corporation · NASDAQ:PRGS
Progress Software — Q1 2021 Earnings Presentation
23 slides from Progress Software's earnings presentation, Mar 25, 2021
Slide 1: Q1 2021 Supplemental Data Progress Financial Results
Q1 2021 Supplemental Data Progress Financial Results
Slide 2: Legal Notice
2© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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 Ex
Slide 3: Conference Call Details
3© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What: Progress Q1 2021 Financial Results Conference Call When: Thursday, March 25th, 2021 Time: 5:00 p.m. ET Live Call: 1-800-367-2403, pass code 3276569 Live / Recorded Webcast: http://investors.progre
Slide 4: Summary Highlights
4© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. • Strong Financial Results — Non-GAAP Revenue, non-GAAP EPS and Free Cash Flow all above high end of guidance range – Results driven by top-line strength across all products, most notably OpenEdge – Che
Slide 5: Leverage the Cloud Opportunity
5© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Leverage the Cloud Opportunity MOVEit Sitefinity CorticonOpenEdge Chef DataDirect
Slide 6: The Evolving Application / Technology Team
6© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. The Evolving Application / Technology Team Developers IT Ops DevOps Designers Data AnalystsBusiness Analysts Data Scientists DevSecOps QA
Slide 7: Progress is a trusted provider of products to develop, deploy and manage applications
7© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Progress is a trusted provider of the best products to develop, deploy and manage high-impact business applications
Slide 8: M&A Framework
8© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. M&A Framework --- Goal is to double the size of the company in 5 years --- Accretive M&A enables us to add scale and cash flows, and generate strong shareholder returns ▪ Target acquisition profile: ➢ C
Slide 9: Progress Investment Highlights
9© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Progress Investment Highlights Durable, predictable financial model High-quality revenue base and highly recurring revenue model Accretive M&A and operational efficiencies driving margin improvement Tra
Slide 10: Summary Q1 2021 Financial Results
10© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q1 2021 Results Q1 2021 Outlook (1/14/2021) GAAP Revenue $121 M $109 M - $113 M Non-GAAP Revenue $132 M $119 M - $123 M GAAP earnings per share (Diluted) $0.42 $0.21 - $0.25 Non-GAAP earnings per share
Slide 11: Driving Total Growth
11© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $379 $432 $456 $523 $0 $150 $300 $450 $600 2018 2019 2020 2021 (F)* Revenue (non GAAP) Driving Total Growth ➢ 2021(F)* revenue growth of 15% ➢ Revenue CAGR of 11.3% 2018 – 2021(F)* * Represents our 202
Slide 12: Increasing Mix of Recurring Revenue
12© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 74% 78% 80% >80% 70% 75% 80% 85% 90% $ $150 $300 $450 $600 2018 2019 2020 2021 (F)* Recurring Revenue Non Recurring Revenue % Recurring Increasing Mix of Recurring Revenue ➢ High percentage of recurrin
Slide 13: Growing Profitability
13© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $201 $0 $50 $100 $150 $200 $250 2018 2019 2020 2021 (F)* Operating Income (non GAAP) Growing Profitability ➢ Consistent growth in operating income CAGR 14.5% 2018 – 2021(F)* ➢ Best-in-cl
Slide 14: Introducing Annualized Recurring Revenue (ARR)
14© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What it is and what it’s not It is: ➢ The annualized value of all recurring revenue related contracts in place at the end of the period. ➢ An operating metric that should be viewed independently of rev
Slide 15: Introducing Net Dollar Retention Rate
15© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Introducing Net Dollar Retention Rate It is: ➢ A calculation (detailed below) which attempts to capture all potential customer actions ➢ An operating metric that should be viewed independently of reven
Slide 16: Annualized Recurring Revenue
16© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $355 99.1% 98.8% 55.0% 65.0% 75.0% 85.0% 95.0% 105.0% $250 $300 $350 $400 $450 $500 Q1'20 Q1'21 ARR Chef Net $ Retention TTM Annualized Recurring Revenue (amounts reported in constant currency) $432 No
Slide 17: Capital Allocation Focus
17© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Capital Allocation Focus • Continue to return capital to shareholders in the form of dividends • Accretive M&A that meets our disciplined criteria • Repurchase shares to offset dilution from our equity
Slide 18: Business Outlook (as of March 25, 2021)
18© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of March 25, 2021) Q2 2021 Current Outlook FY 2021 Prior Outlook (As of 1/14/2021) FY 2021 Current Outlook Non-GAAP Revenue $119 M – $123 M $513 M – $521 M $519 M – $527 M Non-GAAP
Slide 19: 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 20: Results of Operations by Segment (Unaudited)
20© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Results of Operations by Segment (Unaudited) (1)The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: cer
Slide 21: Supplemental Revenue Information (Unaudited)
21© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 22: Other Non-GAAP Financial Measures (Unaudited)
22© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited)
Slide 23: D Progress
D Progress