Slide 1: Q4 2023 Supplemental Data - Progress Financial Results
Q4 2023 Supplemental Data January 16, 2024 Progress Financial Results
Slide 2: Forward Looking Statements
2© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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
Slide 3: Conference Call Details
3© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. What: When: Time: To register for the Live Call: Live / Recorded Webcast: Please note: Webcast is listen-only. Conference Call Details Progress Fiscal Q4 Financial Results Tuesday, January 16, 2024 5:00
Slide 4: Revenue and EPS ahead of estimates; Retention Rate 100%; Strong Balance Sheet
4© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Revenue and EPS ahead of estimates; Retention Rate 100%; Strong Balance Sheet All figures presented are non-GAAP. Definitions of non-GAAP financial measures (including ARR and NRR) can be found in "Impo
Slide 5: Annualized Recurring Revenue Trend
5© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend All periods reported in constant currency, using current year budgeted exchange rates MarkLogic ARR ~$80M ARR growth = 1.2% year-over-year + Net Retention Rate between
Slide 6: Annualized Recurring Revenue (constant currency)
6© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Note: ARR is a Non-GAAP operating metric and does not have a standardized definition. It is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be v
Slide 7: Revenue CAGR of 11% 2019 – 2024(F)
7© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Revenue CAGR of 11% 2019 – 2024(F)* Driving Total Growth * Represents the mid-point of our FY’24 guidance range
Slide 8: Growing Profitability
8© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Operating Income CAGR of 12% 2019 – 2024(F)* Best-in-class non-GAAP operating margins consistently above 35% Growing Profitability * Represents the mid-point of our FY’24 guidance range
Slide 9: Unlevered Free Cash Flow
9© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Unlevered Free Cash Flow Unlevered AFCF CAGR of 12% 2019 – 2024(F)** ** Note: FY’23 & FY ‘24(F) Adj Unlevered Free Cash Flow normalized $16.2M and $13.8M, respectively, related to impact of Section 174
Slide 10: Capital Allocation Strategy
10© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. PRIMARY FOCUS Capital Allocation Strategy Continue to prioritize accretive M&A opportunities that meet our disciplined criteria to create the strongest returns. Repurchase shares to offset dilution fro
Slide 11: Well Defined M&A Framework
11© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. ▪ Cast a wide net across infrastructure software and all aspects of the development lifecycle ▪ Tight alignment increases synergy potential ▪ ~10-25% of current Progress revenues ▪ Can be financed and
Slide 12: Summary Q4 2023 Financial Results
12© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q4 2023 Results Prior Q4 2023 Outlook (provided on Sept 26, 2023) GAAP Revenue $177M $171M - $177M Non-GAAP Revenue $178M $171M - $177M GAAP earnings per share (Diluted) $0.34 $0.13 - $0.19 Non-GAAP ea
Slide 13: Business Outlook (as of January 16, 2024)
13© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of January 16, 2024) Q1 2024 Current Outlook FY 2024 Current Outlook Revenue $180M - $184M $722M - $732M GAAP EPS $0.38 - $0.42 $1.94 - $2.06 Non-GAAP EPS $1.12 - $1.16 $4.58 - $4.
Slide 14: Supplemental Financial Information
Supplemental Financial Information
Slide 15: Supplemental Revenue Information (Unaudited)
15© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 16: Supplemental Revenue Information (Unaudited)
16© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 17: Non-GAAP supplemental information
17© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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 manag
Slide 18: Important Information Regarding Non-GAAP Financial Information
18© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information • Cyber incident and vulnerability response expenses, net • Cyber incident - We exclude certain expenses resulting from the detection of i
Slide 19: Dv Progress’
Dv Progress’