Slide 1: Progress Financial Results Q2 FY22 Supplemental Data
June 28, 2022 Progress Financial Results Q2 FY22 Supplemental Data
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 Q2 2022 Financial Results Conference Call When: Tuesday, June 28, 2022 Time: 5:00 p.m. ET Live Call: 866-374-5140 404-400-0571 Conf ID: 18683835# Live / Recorded Webcast: https://edge.med
Slide 4: Strong Revenue & EPS, ARR up 3.5%, NDRR +100%, Kemp Integration on Course
4© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Strong Revenue & EPS, ARR up 3.5%, NDRR +100%, Kemp Integration on Course, Strong Balance Sheet Summary Highlights Q2 FY22 ▪ Continued execution with reliable and predictable revenues, earnings, and cas
Slide 5: Results Overview and Updated Guidance
© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. --- FY22E --- Revenue: $613M EPS : $4.08 Adjusted FCF: $188M Operating margin: 39.5% Effective Tax Rate: 20.5% --- Q3 FY22E --- Q3E Revenue: $149M Q3E EPS: $0.97 # Guidance provided/updated June 28, 2022
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 Kemp ARR ~$40M ARR growth = 3.5% year-over-year + Net Retention Rat
Slide 7: Annualized Recurring Revenue (As Reported)
7© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. “As Reported” Kemp adds ~$40M of ARR ARR growth = 12.5% year-over-year Net Retention Rate has ranged between 100%-102% Note: ARR is a Non-GAAP operating metric and does not have a standardized definitio
Slide 8: Growing Profitability: Operating Income (non-GAAP)
8© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $229 $244 2018 2019 2020 2021 2022(F)* Operating Income (non GAAP) Growing Profitability * Represents the mid-point of our FY’22 guidance range updated June 28, 2022 Consistent Growth in
Slide 9: Total Growth Strategy Continues to Produce Results
9© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Total Growth Strategy Continues to Produce Results Pillars of our Total Growth Strategy Strengthen Profitable Core Business Deploy Capital To Produce Highest Shareholder Return Operational Excellence an
Slide 10: M&A Approach
10© 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 r
Slide 11: Capital Allocation Strategy
11© 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 12: Summary Q2 2022 Financial Results
12© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q2 2022 Results Prior Q2 2022 Outlook (provided on March 29, 2022) GAAP Revenue $148.7M $143M - $146M Non-GAAP Revenue $150.9M $145M - $148M GAAP earnings per share (Diluted) $0.66 $0.62 - $0.64 Non-GA
Slide 13: Business Outlook (as of June 28, 2022)
13© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q3 2022 Current Outlook (As of June 28, 2022) FY 2022 Prior Outlook (Provided on March 29, 2022) FY 2022 Current Outlook (As of June 28, 2022) Non-GAAP Revenue $147M - 150M $609M - $617M $609M - $617M
Slide 14: Supplemental Financial Information
14© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 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 GAA
Slide 15: Supplemental Revenue Information (Unaudited)
15© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 16: Supplemental Revenue Information (Unaudited)
16© 2021 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 17: D Progress’
D Progress’