Slide 1: Progress Financial Results Q3 FY22 Supplemental Data
Progress Financial Results Q3 FY22 Supplemental Data September 27, 2022
Slide 2: Safe Harbor
2© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Safe Harbor 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 Exc
Slide 3: Conference Call Details
3© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What: Progress Q3 2022 Financial Results Conference Call When: Tuesday, September 27, 2022 Time: 5:00 p.m. ET Live Call: (866) 374-5140 (404) 400-0571 PIN: 824 86 411# Live / Recorded Webcast: https://e
Slide 4: Summary Highlights Q3'22
4© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong Revenue & EPS, ARR up 4%, NDRR +101%, Strong Balance Sheet, Raise EPS for Q4 Summary Highlights Q3'22 § Strong execution despite FX/macro headwinds, inflation, and a tough prior-year comp. § Cont
Slide 5: Results Overview and Updated Guidance
© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. --- FY22E --- Revenue: $613M EPS : $4.10 Adjusted FCF: $188M Operating margin: 39.5% Effective Tax Rate: 20.5% # Guidance provided/updated September 27, 2022, non-GAAP; midpoint of guidance shown. Result
Slide 6: Annualized Recurring Revenue Trend (pro-forma)
6© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend (“pro-forma”) All periods reported in constant currency, using current year budgeted exchange rates ARR growth = 4% year-over-year + Net Retention Rate between 98%-101
Slide 7: Annualized Recurring Revenue (constant currency)
7© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. All periods reported in constant currency, using current year budgeted exchange rates. Note: ARR is a Non-GAAP operating metric and does not have a standardized definition. It is therefore unlikely to b
Slide 8: Total Growth Strategy Continues to Produce Results
8© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Total Growth Strategy Continues to Produce Results Deploy Capital To Produce Highest Shareholder Return • Disciplined, accretive acquisitions • Opportunistic share repurchases • Ample financing at favor
Slide 9: M&A Approach
9© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Infrastructure Software Tighter alignment increases synergy potential End Market Alignment Acquire 10-20% of our revenue Can be financed and integrated efficiently Sizing Durable Top Line High mix of re
Slide 10: Summary Q3 2022 Financial Results
10© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q3 2022 Results Prior Q3 2022 Outlook (provided on June 28, 2022) GAAP Revenue $151.2M $145M - $148M Non-GAAP Revenue $153.1M $147M - $150M GAAP earnings per share (Diluted) $0.50 $0.46 - $0.48 Non-GAA
Slide 11: Q3 Revenue Performance (Year-over-Year Pro-Forma Comparison)
11© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q3 Revenue Performance (Year -over-Year Pro-Forma Comparison) Ø Q3’21 Revenue impacted by timing and contract duration Ø Q3’22 Revenue impacted materially by exchange rates and the addition of Kemp Ø P
Slide 12: Growing Profitability: Operating Income FY18-FY22
12© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 M $162 M $183 M $229 M $243 M 2018 2019 2020 2021 2022(F)* Operating Income (non GAAP) Growing Profitability CAGR 16% * Represents the mid-point of our FY’22 guidance range updated September 27, 2
Slide 13: Capital Allocation Strategy
13© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Continue to prioritize accretive M&A opportunities that meet our disciplined criteria Capital Allocation Strategy Continue returning capital to shareholders in the form of dividends, only to the extent
Slide 14: 2022 Revenue Outlook in Constant Currency
14© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 2022 Revenue Outlook in Constant Currency Movement in exchange rates compresses FY22 Outlook (as provided) Outlook in constant currency reflects consistent strength and a continual improvement througho
Slide 15: Business Outlook (as of September 27, 2022)
15© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q4 2022 Current Outlook (As of September 27, 2022) FY 2022 Prior Outlook (Provided on June 28, 2022) FY 2022 Current Outlook (As of September 27, 2022) Non-GAAP Revenue $158M - $166M $609M - $617M $609
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© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 18: Supplemental Revenue Information (Unaudited)
18© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 19: D Progress’
D Progress’