Slide 1: Q2 2023 Supplemental Data - Progress Financial Results
Q2 2023 Supplemental Data June 29, 2023 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 Q2 FY2023 Financial Results Thursday, June 29, 2023
Slide 4: Summary Highlights Q2 FY2023
4© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Revenue and EPS well ahead of estimates: Strong ARR and Retention Rates; All figures presented are non-GAAP. Definitions of non-GAAP financial measures (including ARR and NRR) can be found in "Important
Slide 5: Annualized Recurring Revenue Trend
5© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Annualized Recurring Revenue Trend* MarkLogic ARR ~$80M ARR growth = 3% year-over-year + Net Retention Rate between 100%-103% = Predictable and durable top line performance All periods reported in const
Slide 6: Annualized Recurring Revenue: As Reported and Pro Forma
6© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. “As Reported” MarkLogic adds ~$80M of ARR ARR growth = 19% year-over-year Net Retention Rate has ranged between 101%-102% “Pro Forma” MarkLogic ARR included in both periods presented ARR growth = 3% yea
Slide 7: Driving Total Growth: Revenue CAGR of 13%
7© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Revenue CAGR of 13% 2018 – 2023(F)* * Represents the mid-point of our updated FY’23 guidance range; guidance includes expected contribution from MarkLogic. Driving Total Growth
Slide 8: Growing Profitability
8© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Operating Income CAGR of 15% 2018 – 2023(F)* Best-in-class non-GAAP operating margins consistently above 35% * Represents the mid-point of our updated FY’23 guidance range; guidance includes expected co
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% 2018 – 2023(F)* ** Note: FY ‘23 Adj Unlevered Free Cash Flow normalized $15.2M related to impact of Section 174 of the U.S. Tax Code. Tax-effected int
Slide 10: Well Defined M&A Framework
10© 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 Progress current revenues Can be financed and
Slide 11: Capital Allocation Strategy
11© 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 12: Summary Q2 2023 Financial Results
12© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q2 2023 Results Prior Q2 2023 Outlook (provided on March 28, 2023) GAAP Revenue $178.3M $167M - $171M Non-GAAP Revenue $179.2M $168M - $172M GAAP earnings per share (Diluted) $0.27 $0.12 - $0.16 Non-GA
Slide 13: Business Outlook (as of Jun 29, 2023)
13© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Business Outlook (as of Jun 29, 2023) Q3 2023 Current Outlook FY 2023 Prior Outlook (As of March 28, 2023) FY 2023 Current Outlook GAAP Revenue $171M - $175M $676M - $684M $686M - $694M Non-GAAP Revenu
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 its 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 • Gain on sale of assets held for sale - We exclude the gain associated with the sale of our Bedford, Massachusetts headquarters during fi
Slide 19: Dv Progress’
Dv Progress’