Progress Software Corporation · NASDAQ:PRGS
Progress Software — Q3 2021 Earnings Presentation
21 slides from Progress Software's earnings presentation, Sep 23, 2021
Slide 1: Q3 2021 Supplemental Data Progress Financial Results
Q3 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 Q3 2021 Financial Results Conference Call When: Thursday, September 23rd, 2021 Time: 5:00 p.m. ET Live Call: (800) 773-2954 (847) 413-3731 Conf ID: 50220857 Live / Recorded Webcast: http:
Slide 4: Strong Financial Results
4© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong Financial Results ➢ Three consecutive quarters of strong performance provide confidence to increase our full year FY21 guidance for the third time this year, driven by top-line strength across al
Slide 5: Kemp – Company Overview
5© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Kemp – Company Overview Kemp is the leader in Application Experience (“AX”) technologies. Its Loadmaster and Flowmon products ensure high performance and always-on availability by monitoring performance
Slide 6: Kemp's AX Technologies
6© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Kemp’s AX Technologies Network Performance Monitoring “NPMD” provides intelligent network traffic capture, comprehensive network performance monitoring, and automated root- cause analysis. Application D
Slide 7: Kemp - Transaction Overview
7© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Kemp - Transaction Overview Timing • Definitive agreement signed September 23, 2021 • Expected close in Q4 2021 subject to customary closing conditions and regulatory review Purchase Price • $258 millio
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, high and increasing mix of recurring revenue Accretive M&A and operational efficiencies driving margin impr
Slide 10: Summary Q3 2021 Financial Results
10© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q3 2021 Results Q3 2021 Outlook (6/24/2021) GAAP Revenue $147 M $124 M - $127 M Non-GAAP Revenue $153 M $129 M - $132 M GAAP earnings per share (Diluted) $0.70 $0.34 - $0.36 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 $550 $0 $150 $300 $450 $600 2018 2019 2020 2021 (F)* Revenue (non GAAP) Driving Total Growth ➢ FY’21(F)* revenue growth of 21% ➢ Revenue CAGR of 13% 2018 – 2021(F)* * Represents the mid-
Slide 12: Quarterly Revenue Performance and Timing
12© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Quarterly Revenue Performance and Timing * ➢ Meaningful over-performance in Q3 in addition to deal timing benefit ➢ Q3 revenue timing pulls from Q4 into Q3 but doesn’t detract from the full year * The
Slide 13: FY'21 Revenue Outlook
13© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Full Year Revenue Outlook* ➢ The increase in FY’21 outlook is driven by ➢ Over-performance and ➢ One month of Kemp ➢ Full year FY’21 outlook ➢ Initial $517 ➢ Q1 $523 ➢ Q2 $532 ➢ Q3 $550 * Outlook repre
Slide 14: Growth in Annualized Recurring Revenue
14© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $356 97.8% 101.4% 55.0% 65.0% 75.0% 85.0% 95.0% 105.0% $250 $300 $350 $400 $450 $500 Q3'20 Q3'21 ARR Chef Net $ Retention TTM Growth in Annualized Recurring Revenue (amounts reported in constant curren
Slide 15: Growing Profitability
15© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $221 $0 $50 $100 $150 $200 $250 2018 2019 2020 2021 (F)* Operating Income (non GAAP) Growing Profitability ➢ Consistent growth in operating income CAGR 18% FY’18 – FY’21(F)* ➢ Best-in-cl
Slide 16: Business Outlook
16© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of September 23, 2021) Q4 2021 Current Outlook FY 2021 Current Outlook FY 2021 Prior Outlook (As of 6/24/2021) Non-GAAP Revenue $134 M – $138 M $548 M – $552 M $529 M – $535 M Non-
Slide 17: 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 18: Supplemental Revenue Information (Unaudited)
18© 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 Q3 2021 Revenue by Type License 30,629 19,663 27,514 37,443 33,317 30,107 51,930 Maintenance
Slide 19: Other Non-GAAP Financial Measures (Unaudited) QTD
19© 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) Q3 2021 Adjustment Revenue Revenue by Type License 51,930 226 52,156 Maintenance 82,875 4,925 87,800 Serv
Slide 20: Other Non-GAAP Financial Measures (Unaudited) YTD
20© 2021 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) Q3 2021 Adjustment Q3 2021 Revenue by Type License 115,354 2,984 118,338 Maintenance 239,921 19,243 259,1
Slide 21: D Progress
D Progress