Slide 1: Progress Financial Results Q4 2024 and FY 2024
Progress Financial Results Q4 2024 and FY 2024 Supplemental Information January 21, 2025
Slide 2: Forward Looking Statements
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 Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-lookin
Slide 3: Conference Call Details
Conference Call Details What: Progress Fiscal Q4 and FY24 Financial Results When: Tuesday, January 21, 2025 Time: 5:00 p.m. ET To register for the Live Call: Please go to this link to retrieve dial-in details. Live / Recorded Webcast: https://edge.media-server.com/mmc/p/5i6yaf23 Please note: Webcast
Slide 4: Summary Highlights Q4 2024
Summary Highlights Q4 2024 Strong Q4 Results; ARR Growth of 46%, Net Retention Rate Exceeds 100%; ShareFile Integration Underway • Revenues of $215M increased 21% year-over-year in constant currency; near high end of prior guidance of $207M - $217M. • ARR: $842M, up 46% year-over-year in constant cu
Slide 5: Annualized Recurring Revenue
Annualized Recurring Revenue (amounts reported in constant currency) ARR growth = 46% year-over-year Net Retention Rate >100% ShareFile adds ~$250M of ARR Other products further add to year over year growth Note: ARR is a Non-GAAP operating metric and does not have a standardized definition. It is t
Slide 6: Annualized Recurring Revenue Trend
Annualized Recurring Revenue Trend 102% 101% 101% 101% 102% 102% 101% 100% 100% $842 $833 $826 $810 $814 $802 $780 Pro Forma ARR growth of 4% year-over- $767 $769 year (ShareFile included in all periods) + Net Retention Rate between = 100%-102% = Predictable and durable top line performance * NRR pe
Slide 7: Total Growth Strategy: Driving ARR Growth
Total Growth Strategy: Driving ARR Growth ARR CAGR of 19% 2020 – 2024 All periods reported in constant currency, using current year budgeted exchange rates © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 7
Slide 8: Total Growth Strategy: Driving Revenue Growth
Total Growth Strategy: Driving Revenue Growth Revenue CAGR of 15% 2021 – 2025(E)* * Represents the mid-point of our FY’25 guidance range © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 8
Slide 9: Total Growth Strategy: Growing Profitability
Total Growth Strategy: Growing Profitability Operating Income CAGR of 12% 2021 – 2025(E)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our FY’25 guidance range © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights rese
Slide 10: Total Growth Strategy: Growing Unlevered Free Cash Flow
Total Growth Strategy: Growing Unlevered Free Cash Flow Unlevered FCF CAGR of 11% 2021 – 2025(E)* * Adjusted free cash flow represents the mid-point of our FY’25 guidance range © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 10
Slide 11: Capital Allocation Strategy
Capital Allocation Strategy PRIMARY Continue to prioritize accretive M&A opportunities that meet FOCUS our disciplined criteria to create the strongest returns. Use our significant free cash flow to aggressively pay down debt and reload for the next acquisition. • Currently modeling $150M in debt re
Slide 12: Well Defined M&A Framework
Well Defined M&A Framework End Market ▪ Cast a wide net across infrastructure software Alignment and all aspects of the development lifecycle ▪ Tight alignment increases synergy potential Appropriate ▪ ~10-25% of current Progress revenues Sizing ▪ Can be financed and integrated efficiently Financial
Slide 13: Summary Q4 2024 Financial Results
Summary Q4 2024 Financial Results Q4 2024 Results Prior Q4 2024 Outlook (provided on Sept 24, 2024) Revenue $215M $207M - $217M GAAP earnings per share (Diluted) $0.03 $0.17 - $0.27 Non-GAAP earnings per share (Diluted) $1.33 $1.15- $1.25 GAAP Operating Margin 10% Not guided Non-GAAP Operating Margi
Slide 14: Business Outlook (as of January 21, 2025)
Business Outlook (as of January 21, 2025) Q1 2025 FY 2025 Current Outlook Current Outlook Revenue $232M - $238M $958M - $970M GAAP EPS ($0.01) - $0.05 $1.08 - $1.23 Non-GAAP EPS $1.02 - $1.08 $5.00 - $5.12 GAAP Operating Margin Not guided 14% - 15% Non-GAAP Operating Margin Not guided 37% - 38% Cash
Slide 15: Supplemental Financial Information
Supplemental Financial Information
Slide 16: Supplemental Revenue Information (Unaudited)
Supplemental Revenue Information (Unaudited) © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 16
Slide 17: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information 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 management team believes that by excludin
Slide 18: Important Information Regarding Non-GAAP Financial Information
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 detection of irregular activity on certain portions of our corporate network, as more thoroughly de
Slide 19: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information • ARR continued - The calculation is done at constant currency using the current year budgeted exchange rates for all periods presented. ARR is not defined in GAAP and is not derived from a GAAP measure. Rather, ARR generally aligns to b
Slide 20: Progress
D Progress