Slide 1: Progress Financial Results Q1 2025
Progress Financial Results Q1 2025 Supplemental Information March 31, 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 Q1’25 Financial Results When: Monday, March 31, 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/bt5rgqn7 Please note: Webcast is liste
Slide 4: Summary Highlights Q1 2025
Summary Highlights Q1 2025 Strong Q1 Results; ARR Growth of 48%, Net Retention Rate Exceeds 100%; ShareFile Integration Ahead of Plan • Revenues of $238M increased 30% year-over-year in constant currency; at high end of prior guidance of $232M - $238M • ARR: $836M, up 48% year-over-year in constant
Slide 5: Annualized Recurring Revenue
Annualized Recurring Revenue ARR growth of 48% year-over-year ShareFile adds ~$250M of ARR Other products further add to year- over-year growth 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 standardi
Slide 6: Annualized Recurring Revenue Trend
Annualized Recurring Revenue Trend Pro Forma ARR growth of 3% year-over-year (ShareFile included in all periods) Consistent Annual Growth © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. All periods reported in constant currency, using current year bud
Slide 7: ARR Growth and Net Retention
ARR Growth and Net Retention YoY ARR Growth % in Purple Pro Forma ARR growth of 3% year-over- year (ShareFile included in all periods) + Net Retention Rate between = 100%-102% = Predictable and durable top line performance * NRR & Growth percentage for Q1 ‘23 through Q3 ‘23 excludes ShareFile All pe
Slide 8: Total Growth Strategy: Driving ARR Growth
Total Growth Strategy: Driving ARR Growth ARR CAGR of 19% Q1 2020 – Q1 2025 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. 8
Slide 9: 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. 9
Slide 10: Total Growth Strategy: Growing Profitability
Total Growth Strategy: Growing Profitability Operating Income CAGR of 13% 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 11: Total Growth Strategy: Growing Unlevered Free Cash Flow
Total Growth Strategy: Growing Unlevered Free Cash Flow Unlevered FCF CAGR of 11% 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. 11
Slide 12: Capital Allocation Strategy
Capital Allocation Strategy PRIMARY Continue to prioritize accretive M&A opportunities that meet our disciplined FOCUS criteria to create the strongest returns. Use our significant free cash flow to aggressively pay down debt and reload for the next acquisition. • $30M repaid in Q1 ’25 • Currently m
Slide 13: 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 14: Summary Q1 2025 Financial Results
Summary Q1 2025 Financial Results Q1 2025 Results Prior Q1 2025 Outlook (provided on Jan 21, 2025) Revenue $238M $232M - $238M GAAP earnings per share (Diluted) $0.24 $(0.01) - $0.05 Non-GAAP earnings per share (Diluted) $1.31 $1.02 - $1.08 GAAP Operating Margin 14% Not guided Non-GAAP Operating Mar
Slide 15: Business Outlook (as of March 31, 2025)
Business Outlook (as of March 31, 2025) Q2 2025 FY 2025 FY 2025 Current Outlook Prior Outlook Updated Outlook (provided on January 21, 2025) Revenue $235M - $241M $958M - $970M Unchanged GAAP EPS $0.24 - $0.30 $1.08 - $1.23 $1.19 - $1.35 Non-GAAP EPS $1.28 - $1.34 $5.00 - $5.12 $5.25 - $5.37 GAAP Op
Slide 16: Outstanding Debt and Potential Impact on Share Count
Outstanding Debt and Potential Impact on Share Count Convertible # 1 Convertible # 2 Revolver (as of 2/28/25) Balance: $360M Balance: $450M Balance: $700M drawn out of $900M Interest Rate: 1.00% Interest Rate: 3.50% Interest Rate: 1.5% to 3.0% above benchmark Conversion Price: $57.30 Conversion Pric
Slide 17: Supplemental Financial Information
Supplemental Financial Information
Slide 18: ARR Exchange Rate Comparison – 2024 by Quarter
ARR Exchange Rate Comparison – 2024 by Quarter ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY24 Rates” represents results reported translated using our FY24 budgeted exchange rates “ARR at FY25 Rates” represents those same results translated using ou
Slide 19: ARR Exchange Rate Comparison – 2022-2024
ARR Exchange Rate Comparison – 2022-2024 ARR is presented in constant currency, using our current year budgeted exchange rates “ARR at FY24 Rates” represents results reported translated using our FY24 budgeted exchange rates “ARR at FY25 Rates” represents those same results translated using our FY25
Slide 20: Supplemental Revenue Information (Unaudited)
Supplemental Revenue Information (Unaudited) © 2025 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 20
Slide 21: 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 excluding t
Slide 22: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information • Income tax adjustment - We adjust our income tax provision by excluding the tax impact of the non-GAAP adjustments discussed above. • Constant Currency - Revenue from our international operations has historically represented a substant
Slide 23: Important Information Regarding Non-GAAP Financial Information
Important Information Regarding Non-GAAP Financial Information • ARR continued - ARR is not defined in GAAP and is not derived from a GAAP measure. Rather, ARR generally aligns to billings (as opposed to GAAP revenue which aligns to the transfer of control of each performance obligation). ARR does n
Slide 24: Progress
D Progress