Progress Software Corporation · NASDAQ:PRGS
Progress Software — Q2 2021 Earnings Presentation
20 slides from Progress Software's earnings presentation, Jun 24, 2021
Slide 1: Q2 2021 Supplemental Data Progress Financial Results
Q2 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 Q2 2021 Financial Results Conference Call When: Thursday, June 24th, 2021 Time: 5:00 p.m. ET Live Call: 1-800-458-4121, pass code 3588537 Live / Recorded Webcast: http://investors.progres
Slide 4: Summary Highlights
4© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong Financial Results ➢ Two consecutive quarters of strong performance in our core business provide confidence to increase our full year 2021 guidance – Results driven by top-line strength across all
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: Capital Allocation Focus
6© 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 so that at a minimum, we offset dil
Slide 7: M&A Framework
7© 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 8: Ingredients to Address a Massive M&A Opportunity
8© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. ` Company Count Deal Count Capital Invested (US$ in mm) Year 2020 2,805 3,199 $34,121 2019 3,462 4,067 31,465 2018 3,537 4,179 28,522 2017 3,484 4,076 21,942 2016 3,181 3,657 17,637 2015 2,995 3,482 16,
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, high and increasing mix of recurring revenue Accretive M&A and operational efficiencies driving margin impr
Slide 10: Summary Q2 2021 Financial Results
10© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q2 2021 Results Q2 2021 Outlook (3/25/2021) GAAP Revenue $122 M $112 M - $116 M Non-GAAP Revenue $129 M $119 M - $123 M GAAP earnings per share (Diluted) $0.30 $0.25 - $0.27 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 $532 $0 $150 $300 $450 $600 2018 2019 2020 2021 (F)* Revenue (non GAAP) Driving Total Growth ➢ 2021(F)* revenue growth of 17% ➢ Revenue CAGR of 12% 2018 – 2021(F)* * Represents our 2021
Slide 12: Growth in Annualized Recurring Revenue
12© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $355 98.3% 100.2% 55.0% 65.0% 75.0% 85.0% 95.0% 105.0% $250 $300 $350 $400 $450 $500 Q2'20 Q1'21 ARR Chef Net $ Retention TTM Growth in Annualized Recurring Revenue (amounts reported in constant curren
Slide 13: Growing Profitability
13© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $207 $0 $50 $100 $150 $200 $250 2018 2019 2020 2021 (F)* Operating Income (non GAAP) Growing Profitability ➢ Consistent growth in operating income CAGR 16% 2018 – 2021(F)* ➢ Best-in-clas
Slide 14: Convertible Notes Offering Key Terms
14© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Convertible Notes Offering Key Terms Total Offering Amount (including overallotment option) $360 million Interest Rate 1.00% Maturity 5-years (April 15, 2026) Conversion Premium 27.5% Capped Call (incr
Slide 15: Business Outlook (as of June 24, 2021)
15© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of June 24, 2021) Q3 2021 Current Outlook FY 2021 Current Outlook FY 2021 Prior Outlook (As of 3/25/2021) Non-GAAP Revenue $129 M – $132 M $529 M – $535 M $519 M – $527 M Non-GAAP
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© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited) (in thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Revenue by Type License 30,629 19,663 27,514 37,443 33,317 30,107 Maintenance 70,056 71,686 7
Slide 18: Other Non-GAAP Financial Measures (Unaudited) QTD
18© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited) QTD QTD QTD GAAP Non-GAAP Non-GAAP (in thousands) Q2 2021 Adjustment Revenue Revenue by Type License 30,107 192 30,299 Maintenance 80,069 6,468 86,537 Serv
Slide 19: Other Non-GAAP Financial Measures (Unaudited) YTD
19© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Other NON-GAAP Financial Measures (Unaudited) YTD YTD GAAP Non-GAAP Non-GAAP (in thousands) Q2 2021 Adjustment Q2 2021 Revenue by Type License 63,424 2,758 66,182 Maintenance 157,046 14,318 171,364 Ser
Slide 20: D Progress
D Progress