Progress Software Corporation · NASDAQ:PRGS
Progress Software — Q4 2022 Earnings Presentation
21 slides from Progress Software's earnings presentation, Jan 17, 2023
Slide 1: Progress Financial Results Q4 2022 Supplemental Data
January 17, 2023 Progress Financial Results Q4 2022 Supplemental Data
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. Conference Call Details What: Progress Q4 and FY22 Financial Results Conference Call When: Tuesday, January 17, 2023 Time: 5:00 p.m. ET To register for the Live Call: Please go to this link to retrieve
Slide 4: Summary Highlights Q4 2022
4© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. • ARR increased to $497M – up 3.5% year-over-year • High mix of ARR is expected to result in predictable revenues, earnings, and FCF • NRR >101% • Strong Balance Sheet: modest net leverage in Q4 2022, w
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 ARR growth = ~3.5% year-over-year + NRR between ~98%-101% = Predictable, durable
Slide 6: Revenue (non GAAP) Driving Total Growth
6© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $379 $432 $456 $557 $611 $680 2018 2019 2020 2021 2022 2023 (F)* Revenue (non GAAP) Driving Total Growth FY’22 annual revenue growth of ~10% Revenue CAGR of ~12% 2018 – 2023(F)* * Represents the mid-poi
Slide 7: 2022 Revenue Performance in Constant Currency
7© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. 2022 Revenue Performance in Constant Currency Movement in exchange rates can impact Revenue Performance Performance in constant currency reflects consistent strength throughout FY'22 $557 $611 $17 2021
Slide 8: Operating Income (non GAAP) Growing Profitability
8© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. $134 $162 $183 $229 $242 $260 2018 2019 2020 2021 2022 2023(F)* Operating Income (non GAAP) Growing Profitability * Represents the mid-point of FY’23 guidance range provided January 17, 2023; guidance i
Slide 9: Summary Q4 2022 Financial Results
9© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q4 2022 Results Prior Q4 2022 Outlook (provided on September 27, 2022) GAAP Revenue $157.1M $156M - $164M Non-GAAP Revenue $159.2M $158M - $166M GAAP earnings per share (Diluted) $0.54 $0.53 - $0.57 Non
Slide 10: Total Growth Strategy Continues to Produce Results
10© 2023 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 favo
Slide 11: Infrastructure Software Proposed M&A Approach
11© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Infrastructure Software Tighter alignment with existing products increases synergy potential Currently Proposed M&A Approach End Market Alignment Target Acquiring 10-25% of revenue Can be financed and
Slide 12: Capital Allocation Strategy
12© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Capital Allocation Strategy Continue to prioritize accretive M&A opportunities that meet our disciplined criteria PRIMARY FOCUS Repurchase shares to offset dilution from our equity programs • In Q4 202
Slide 13: Who is MarkLogic?
13© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Who is MarkLogic? A leader in complex data and metadata management with more than 300 diverse and loyal enterprise customers across key verticals including financial services, government, healthcare, m
Slide 14: MarkLogic – Overview of Proposed Transaction
14© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. MarkLogic – Overview of Proposed Transaction Timing • Definitive agreement signed January 3, 2023 • Currently expected close in Feb 2023 subject to customary conditions, including regulatory review Pur
Slide 15: Business Outlook Q1 and FY 2023
15© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Q1 2023 Current Outlook * (As of January 17, 2023) FY 2023 Current Outlook * (As of January 17, 2023) Non-GAAP Revenue $157M - $161M $675M - $685M GAAP Revenue $156M - $160M $671M - $681M Non-GAAP EPS
Slide 16: Supplemental Financial Information
16© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Financial Information
Slide 17: Supplemental Revenue Information (Unaudited)
17© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 18: Supplemental Revenue Information (Unaudited)
18© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Supplemental Revenue Information (Unaudited)
Slide 19: Important Information Regarding Non-GAAP Financial Information
19© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information Progress furnishes certain non-GAAP supplemental information to its financial results. We use such non-GAAP financial measures to evaluate
Slide 20: Important Information Regarding Non-GAAP Financial Information (continued)
20© 2023 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved. Important Information Regarding Non-GAAP Financial Information (continued) • Amortization of the discount on our convertible senior notes - In April 2021, in a private offering, we issued 1.0% Converti
Slide 21: Dv Progress’
Dv Progress’