Financial Performance - Q1 2024 - Revenue reached $185 million, an 11% increase year-over-year in constant currency, exceeding the high end of guidance[6] - Non-GAAP earnings per share (Diluted) stood at $1.25[6] - Adjusted Free Cash Flow (non-GAAP) amounted to $72 million[6] - Non-GAAP Operating Margin was strong at 42%[6, 27] Annual Recurring Revenue (ARR) - ARR reached $571 million, a 0.2% increase year-over-year in constant currency[21] - Net Retention Rate (NRR) was 99%[21] - Q1 2023 ARR includes an adjustment to eliminate approximately $4 million of ARR associated with contracts booked by MarkLogic prior to the acquisition[34, 67] Guidance - FY24 revenue is projected to be between $722 million and $732 million[33] - FY24 EPS is expected to be between $4.65 and $4.75, an increase from the previous guidance of $4.58 to $4.68[33] - Q2 2024 revenue is guided to be between $166 million and $170 million[33] - Q2 2024 EPS is guided to be between $0.93 and $0.97[33] Capital Allocation - The company focuses on accretive M&A opportunities that meet disciplined criteria to create strong returns[4, 41, 42] - The company has $171 million remaining under its share repurchase authorization[41] - The company continues to return capital to shareholders in the form of dividends[41] Revenue Breakdown by Type (Q1 2024) - License revenue was $64.1 million[11] - Maintenance revenue was $102.025 million[11] - Services revenue was $18.560 million[11] Revenue Breakdown by Region (Q1 2024) - North America revenue was $107.282 million[11] - EMEA revenue was $63.087 million[11] - Latin America revenue was $4.668 million[11] - Asia Pacific revenue was $9.648 million[11] Growth - Revenue Compound Annual Growth Rate (CAGR) from 2019 to 2024(F) is 11%[37, 38] - Unlevered Adjusted Free Cash Flow CAGR from 2019 to 2024(F) is 11%[52]

Exhibit 99.1 P R E S S A N N O U N C E M E N T Progress Announces First Quarter 2024 Financial Results First Quarter Revenues and Earnings Per Share Ahead of Estimates BURLINGTON, Mass, March 26, 2024 (GlobeNewswire) — Progress (Nasdaq: PRGS), the trusted provider of infrastructure software, today announced financial results for its fiscal first quarter ended February 29, 2024. First Quarter 2024 Highlights : 1 "It was another strong, steady quarter for Progress and I'm very pleased with our results, which ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Progress Software Corporation provides enterprise software for business applications, focusing on a dual-channel sales model, customer retention, and growth via M&A - The company provides enterprise software products for the development, deployment, and management of high-impact business applications, operating globally through direct sales and indirect channel partners[13](index=13&type=chunk) - **More than half** of the company's worldwide license revenue is generated through indirect channels, including independent software vendors (ISVs), original equipment manufacturers (OEMs), distributors, and value-added resellers (VARs)[14](index=14&type=chunk)[28](index=28&type=chunk) - **No single customer or partner has accounted for more than 10% of total revenue** in any of the last three fiscal years[33](index=33&type=chunk) - As of November 30, 2023, the company had **2,284 employees worldwide**, with the largest group (886) in product development[58](index=58&type=chunk) [Our Products](index=5&type=section&id=Our%20Products) The company's product portfolio spans the application lifecycle, including development, DevOps, data connectivity, and semantic AI - The product portfolio includes tools for application development, DevOps, UI components, load balancing, managed file transfer, data connectivity, network monitoring, and digital experience[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - Recent additions to the portfolio include **MarkLogic**, a data agility platform, and **Semaphore**, a semantic AI platform, enhancing capabilities in data management and artificial intelligence[22](index=22&type=chunk)[23](index=23&type=chunk) [Customers](index=6&type=section&id=Customers) The company utilizes a global dual-channel sales strategy, with indirect partners like ISVs increasingly adopting a SaaS model - Sales are conducted through a direct sales force targeting business and IT managers, as well as indirectly through ISVs, OEMs, systems integrators, VARs, and distributors[27](index=27&type=chunk) - A significant and growing portion of revenue from ISVs comes from those who have enabled their applications on a **software-as-a-service (SaaS) platform**[29](index=29&type=chunk) - OEMs embed Progress products into their software or devices, typically under one to three-year license agreements which have historically seen **high renewal rates**[30](index=30&type=chunk) [Competition](index=8&type=section&id=Competition) The company operates in a highly competitive software market against a diverse range of proprietary and open-source vendors - The software industry is **intensely competitive**, with competition from various sources for all products[45](index=45&type=chunk) - Competitors range from single-solution providers to large companies offering broad enterprise infrastructure solutions, including proprietary and open-source models[46](index=46&type=chunk) - Some competitors possess **greater financial, marketing, or technical resources** and may adapt more quickly to new technologies or customer requirements[48](index=48&type=chunk) [Human Capital](index=10&type=section&id=Human%20Capital) The company employed 2,284 people globally as of November 30, 2023, emphasizing talent retention through competitive compensation and a flexible, inclusive culture Employee Breakdown by Function (as of Nov 30, 2023) | Function | Number of Employees | | :--- | :--- | | Sales and marketing | 739 | | Customer support and services | 394 | | Product development | 886 | | Administration | 265 | | **Total** | **2,284** | - The company has implemented a **flexible work approach**, allowing employees to choose their office location or work from home, aiming to improve recruitment and retention[65](index=65&type=chunk) - An **Inclusion and Diversity Advisory Committee**, supported by a Chief Inclusion and Diversity Officer, guides the company's initiatives to foster an inclusive and diverse culture[66](index=66&type=chunk) [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its dependency on OpenEdge products, intense competition, and major cybersecurity threats like the MOVEit vulnerability - The company is substantially dependent on its **OpenEdge product set**, which accounted for approximately **37% of aggregate revenue** in fiscal year 2023[73](index=73&type=chunk) - A zero-day vulnerability in **MOVEit Transfer** was exploited in May 2023, leading to data exfiltration from customer environments and resulting in approximately **118 class action lawsuits, 31 customer indemnification claims, and formal investigations** by the SEC and other regulators[88](index=88&type=chunk)[89](index=89&type=chunk)[92](index=92&type=chunk) - The company received a subpoena from the **SEC** on October 2, 2023, and another from the **Office of the Attorney General for the District of Columbia** on January 18, 2024, related to the MOVEit vulnerability[94](index=94&type=chunk)[96](index=96&type=chunk) - Approximately **41% of total fiscal 2023 revenue was generated from sales outside North America**, exposing the company to risks from global economic conditions, political instability, and foreign currency fluctuations[84](index=84&type=chunk) - As of November 30, 2023, the company had approximately **$724 million of consolidated indebtedness**, which could limit cash flow and expose it to financial risks[134](index=134&type=chunk) [Unresolved Staff Comments](index=28&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) As of the report date, the company has no open comments from the SEC regarding its financial statements or periodic filings - The company reports **no open comments from the SEC** as of the filing date[146](index=146&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company leases its headquarters and various global offices, which are considered adequate for its needs, especially given its flexible work approach - The headquarters facility in Burlington, Massachusetts is a leased space of approximately **33,000 square feet**[148](index=148&type=chunk) - Additional offices are leased in key locations including North Carolina, Georgia, California, Virginia, Bulgaria, Ireland, Czech Republic, India, Singapore, and the Netherlands[149](index=149&type=chunk) - The company adopted a **flexible work approach** in 2021, allowing employees to work from home, but has not terminated any significant lease arrangements as of November 30, 2023[150](index=150&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) This section refers to the MD&A for discussion of legal proceedings related to the MOVEit Vulnerability - Information regarding legal proceedings, specifically concerning the **MOVEit Vulnerability**, is detailed in the MD&A section of the report[151](index=151&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on NASDAQ (PRGS), and in FY2023 it returned capital to shareholders via dividends and share repurchases Q4 2023 Stock Repurchases | Period | Total Number of Shares Purchased | Average Price Paid per Share | Dollar Value of Shares Remaining for Purchase ($ thousands) | | :--- | :--- | :--- | :--- | | September 2023 | — | $ — | $197,959 | | October 2023 | — | $ — | $197,959 | | November 2023 | 76,373 | $51.86 | $193,998 | | **Total** | **76,373** | **$51.86** | **$193,998** | - On January 10, 2023, the Board of Directors increased the share repurchase authorization by **$150.0 million**, bringing the total authorization to $228.0 million[157](index=157&type=chunk) Dividends Paid | Fiscal Year | Aggregate Per Share Dividend | Total Cash Dividends Paid | | :--- | :--- | :--- | | 2023 | $0.70 | $31.6 million | | 2022 | $0.70 | $31.1 million | | 2021 | $0.70 | $31.6 million | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) FY2023 revenue grew 15% to $694.4 million, driven by the MarkLogic acquisition, while net income fell 26% due to higher operating costs and incident-related expenses Fiscal Year 2023 vs 2022 Performance | Metric (In thousands) | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $694,439 | $602,013 | 15% | | Gross Profit | $567,862 | $507,517 | 12% | | Income from Operations | $110,523 | $132,131 | (16)% | | Net Income | $70,197 | $95,069 | (26)% | - The increase in revenue was primarily driven by the **acquisition of MarkLogic**, which closed in the first quarter of fiscal year 2023[173](index=173&type=chunk) - **Annual Recurring Revenue (ARR) increased by 17.1%** year-over-year, reaching $574.0 million as of November 30, 2023, largely due to the MarkLogic acquisition[199](index=199&type=chunk) - The company incurred net expenses of **$6.2 million in FY2023 for cyber incidents**, including $1.5 million for the MOVEit vulnerability and $4.7 million for a November 2022 incident[190](index=190&type=chunk)[238](index=238&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) FY2023 revenue grew 15% to $694.4 million, boosted by the MarkLogic acquisition, but higher operating expenses led to a 16% drop in operating income Revenue Breakdown (FY 2023 vs FY 2022) | Revenue Type (In thousands) | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Software License | $220,789 | $188,336 | 17% | | Maintenance | $401,501 | $362,335 | 11% | | Professional Services | $72,149 | $51,342 | 41% | | **Total Revenue** | **$694,439** | **$602,013** | **15%** | Operating Expenses (FY 2023 vs FY 2022) | Expense (In thousands) | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Sales and Marketing | $156,076 | $140,760 | 11% | | Product Development | $132,401 | $114,568 | 16% | | General and Administrative | $83,157 | $77,876 | 7% | | Restructuring Expenses | $8,407 | $879 | 856% | - **North America remains the largest region**, contributing 59% of total revenue in FY2023, up from 57% in FY2022[176](index=176&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Cash decreased by $129.3 million, primarily due to the $355.3 million MarkLogic acquisition, which was partially funded by debt and operating cash flow Cash Flow Summary (In thousands) | Cash Flow Activity | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $173,920 | $192,160 | $178,530 | | Net cash (used in) from investing activities | ($360,382) | $21,992 | ($250,335) | | Net cash from (used in) financing activities | $51,188 | ($101,423) | $132,113 | - The decrease in cash was primarily due to **$355.3 million paid for acquisitions**, net of cash acquired[202](index=202&type=chunk) - As of November 30, 2023, the company had **$110.0 million outstanding** under its revolving line of credit and **$261.3 million outstanding** on its term loan[207](index=207&type=chunk)[252](index=252&type=chunk) - In April 2021, the company issued **$360 million in 1.00% Convertible Senior Notes** due 2026[209](index=209&type=chunk) [Recent Developments: MOVEit Vulnerability](index=45&type=section&id=Recent%20Developments%3A%20MOVEit%20Vulnerability) A May 2023 vulnerability in MOVEit products, representing less than 4% of revenue, has led to significant litigation and regulatory scrutiny - A zero-day vulnerability in **MOVEit Transfer and MOVEit Cloud** was discovered on May 30, 2023, after being exploited by malicious actors[232](index=232&type=chunk) - The MOVEit product line represented **less than 4% of the company's total revenue** for the fiscal year ended November 30, 2023[236](index=236&type=chunk) - As of the filing date, the company faces approximately **118 class action lawsuits and 31 customer indemnification claims** related to the vulnerability[244](index=244&type=chunk) - The company has received formal inquiries from the **SEC, a U.S. federal law enforcement agency, and the D.C. Attorney General**[245](index=245&type=chunk)[247](index=247&type=chunk) - For FY2023, costs related to the MOVEit vulnerability were **$1.5 million, net of $3.7 million in insurance recoveries**, with $8.8 million of its $15.0 million cybersecurity policy remaining[238](index=238&type=chunk)[241](index=241&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk from its variable-rate debt and foreign currency risk, which it manages using derivatives - The company is exposed to interest rate risk on its **$261.3 million term loan** under the Credit Agreement, which has variable rates[252](index=252&type=chunk) - An interest rate swap with a notional value of **$103.1 million** is used to manage cash flow variability on about half of the variable rate debt[253](index=253&type=chunk)[254](index=254&type=chunk) Outstanding Foreign Currency Forward Contracts (in thousands) | Contract Type | Notional Value (Nov 30, 2023) | Fair Value (Nov 30, 2023) | | :--- | :--- | :--- | | Forward contracts to sell U.S. dollars | $102,229 | $(2,526) | | Forward contracts to purchase U.S. dollars | $844 | $(4) | | **Total** | **$103,073** | **$(2,530)** | [Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited financial statements and the independent auditor's report, which highlights revenue recognition and the MOVEit vulnerability as critical audit matters - The independent auditor, Deloitte & Touche LLP, issued an **unqualified opinion** on the consolidated financial statements and internal control over financial reporting[259](index=259&type=chunk)[260](index=260&type=chunk) - **Critical Audit Matters** identified were: 1) Revenue recognition for arrangements with multiple performance obligations due to significant management judgment, and 2) Accounting for the MOVEit Vulnerability due to the complexity and uncertainty in estimating potential losses[265](index=265&type=chunk)[267](index=267&type=chunk) [Consolidated Financial Statements](index=54&type=section&id=Consolidated%20Financial%20Statements) The financial statements show total assets of $1.60 billion and net income of $70.2 million on revenues of $694.4 million for FY2023 Consolidated Balance Sheet Highlights (in thousands) | Account | Nov 30, 2023 | Nov 30, 2022 | | :--- | :--- | :--- | | Total Current Assets | $330,788 | $426,053 | | Goodwill | $832,101 | $671,037 | | **Total Assets** | **$1,602,783** | **$1,411,479** | | Total Current Liabilities | $352,118 | $318,004 | | Long-term debt, net | $710,883 | $611,845 | | **Total Liabilities** | **$1,143,068** | **$953,145** | | **Total Stockholders' Equity** | **$459,715** | **$398,504** | Consolidated Statement of Operations Highlights (in thousands) | Account | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Total Revenue | $694,439 | $602,013 | $531,313 | | Gross Profit | $567,862 | $507,517 | $452,864 | | Income from Operations | $110,523 | $132,131 | $116,102 | | **Net Income** | **$70,197** | **$95,069** | **$78,420** | [Notes to Consolidated Financial Statements](index=60&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, the MarkLogic acquisition, debt structure, and the unquantifiable but possible loss contingency for the MOVEit vulnerability - The company completed the acquisition of MarkLogic on February 7, 2023, for a base purchase price of **$355.0 million in cash**, resulting in $161.1 million of goodwill[347](index=347&type=chunk)[350](index=350&type=chunk) - Total debt as of Nov 30, 2023, includes **$360 million in 1.00% Convertible Senior Notes** due 2026, a **$261.3 million term loan**, and **$110.0 million drawn** on the revolving line of credit[366](index=366&type=chunk) - Regarding the MOVEit vulnerability, the company states that while a loss from litigation and investigations is **reasonably possible**, it cannot estimate a range of possible losses and has therefore not recorded a loss contingency liability[450](index=450&type=chunk) - The company maintains a **$15.0 million cybersecurity insurance policy** and has **$8.8 million of coverage remaining** as of Nov 30, 2023[453](index=453&type=chunk) [Controls and Procedures](index=96&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective - Management concluded that **disclosure controls and procedures were effective** as of November 30, 2023[457](index=457&type=chunk) - Management's assessment, based on the COSO 2013 framework, concluded that **internal control over financial reporting was effective** as of November 30, 2023[459](index=459&type=chunk) - The independent registered public accounting firm, Deloitte & Touche LLP, also issued an **unqualified opinion on the effectiveness** of the company's internal control over financial reporting[463](index=463&type=chunk) [Directors, Executive Officers and Corporate Governance](index=98&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - This information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[474](index=474&type=chunk) [Executive Compensation](index=98&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - This information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[475](index=475&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=98&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Required information is incorporated by reference from the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - This information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[476](index=476&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=98&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - This information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[477](index=477&type=chunk) [Principal Accounting Fees and Services](index=98&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Required information is incorporated by reference from the company's definitive proxy statement for the 2024 Annual Meeting of Stockholders - This information is incorporated by reference from the definitive proxy statement for the 2024 Annual Meeting of Stockholders[478](index=478&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=99&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed as part of the Form 10-K, with schedules omitted as not required - The financial statements are included in Part II, Item 8 of the report[479](index=479&type=chunk) - Financial statement schedules are omitted because they are not applicable or the required information is included in the consolidated financial statements[479](index=479&type=chunk)[484](index=484&type=chunk) - A list of exhibits filed with the report is provided, referencing previously filed documents where applicable[480](index=480&type=chunk)

Financial Data and Key Metrics Changes - The company reported top line revenues of $178 million for Q4 2023, representing approximately 12% year-over-year growth [8][66] - Annual revenue for fiscal 2023 was $698 million, reflecting a growth of $88 million or 14% compared to the previous year [66] - Adjusted free cash flow for Q4 was $33 million, slightly below expectations due to timing of billings [21] - Operating margins for the full year were 39%, with Q4 margins at 35% [8][68] - The company ended the quarter with cash and short-term investments of $127 million and debt of $731 million, resulting in a net leverage of approximately 2.2 times [69] Business Line Data and Key Metrics Changes - Annual Recurring Revenue (ARR) grew 17% year-over-year to $574 million, with a net retention rate of 100% [8][63] - Key products contributing to ARR growth included OpenEdge, MarkLogic, Sitefinity, and DevTools [63] - The integration of MarkLogic was completed ahead of schedule, contributing slightly over $70 million in revenue for fiscal 2023 [9][78] Market Data and Key Metrics Changes - The demand environment for the company's products is expected to remain stable in FY 2024, with a focus on maintaining ARR growth consistent with 2023 [22][95] - The company anticipates revenue for Q1 2024 to be between $180 million and $184 million, and for the full year between $722 million and $732 million, indicating 3% to 5% growth over 2023 [26] Company Strategy and Development Direction - The company is focused on a total growth strategy that includes M&A, sustained innovation, and customer success [10][61] - The integration of MarkLogic is seen as a key driver for future growth, with plans to leverage its capabilities to enhance product offerings [9][13] - The company aims to maintain a disciplined approach to M&A, targeting businesses that align with its technology and culture [55][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable demand for products in FY 2024, driven by the full-year contribution from MarkLogic [17] - The company remains cautious about customer spending, noting that while demand is stable, budgets are being closely monitored [95] - Management highlighted the importance of maintaining strong customer relationships and addressing their needs effectively [16][86] Other Important Information - The company successfully dealt with a cyber incident related to MOVEit, issuing a patch within 48 hours and maintaining customer loyalty [16][86] - The company plans to aggressively repay the revolving line of credit used for the MarkLogic acquisition, aiming for a net leverage ratio of approximately 1.5 times by the end of FY 2024 [25] Q&A Session Summary Question: What are the customer feedback and cross-sell opportunities post-MarkLogic integration? - Management noted that customer feedback has been positive, with opportunities for cross-sell identified, particularly in digital experience products [32][75] Question: What is the outlook for M&A activity in 2024? - Management expressed confidence in pursuing acquisitions, citing favorable market conditions and a strong pipeline of potential targets [33][34] Question: How does the timing of contract renewals impact revenue? - Management indicated that the timing of contract renewals, especially for term-based licenses, will significantly influence quarterly revenue [41][42] Question: What is the expected trajectory for net retention rates in 2024? - Management projected that net retention rates would normalize and potentially improve in the latter half of 2024, despite some churn experienced in 2023 [90][91] Question: How is the demand environment perceived compared to previous periods? - Management reported stable demand, with no significant changes in customer spending attitudes, emphasizing the relevance of their product portfolio [94][95]

Financial Performance Highlights - Revenues reached $178 million, a 10% increase year-over-year in constant currency, exceeding the prior guidance of $171 million - $177 million[8] - Annual Recurring Revenue (ARR) stood at $574 million, up 17% year-over-year in constant currency, or 1% pro-forma, with a Net Retention Rate (NRR) of 100%[8] - Operating margins were strong at 35%[8] - Earnings per share (EPS) reached $1.02, surpassing the prior guidance of $0.87 - $0.93[8] Future Outlook - The company anticipates revenue between $722 million and $732 million for FY24, with an EPS of $4.58 - $4.68[8] - For 1Q'24, revenue is projected to be $180 million - $184 million, and EPS is expected to be $1.12 - $1.16[8] Strategic Initiatives - MarkLogic integration was substantially completed in 4Q23[8] - MarkLogic contributes approximately $80 million to ARR[10, 40] Capital Allocation - The company paid down $30 million of debt with excess Free Cash Flow (FCF) in Q4, maintaining a modest net leverage[8] - The company will continue to prioritize accretive Mergers and Acquisitions (M&A) opportunities and repurchase shares to offset dilution from equity programs[27]

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-looking statements with words like "believe," "may," "could," "would," "might," "should," "expect," "intend," "plan," "target," "anticipate" and "continue," the negative of these words, other terms of similar meaning or the use of future dates. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____. Commission File Number: 0-19417 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required ...

Financial Data and Key Metrics Changes - The company reported an Annual Recurring Revenue (ARR) of $577 million, reflecting approximately 18% year-over-year growth and 2% pro forma growth, including MarkLogic in both periods [10] - Total costs and operating expenses for the quarter were $107 million, an increase of $14 million compared to Q3 2022, driven entirely by the addition of MarkLogic [11] - Operating income was $68 million, up $8 million from the previous year, with an operating margin of 39%, consistent with the prior year [11] - Earnings per share were $1.08, exceeding the high end of the guidance range by $0.06, attributed to strong top-line performance and effective cost management [11] Business Line Data and Key Metrics Changes - OpenEdge continued to perform strongly, contributing significantly to revenue growth, while digital experience products also showed excellent performance [6][23] - The integration of MarkLogic is on track and nearing completion, with expectations to meet synergy targets by the end of the fiscal year [11][7] Market Data and Key Metrics Changes - The company noted that while the overall economy has changed significantly, their business has remained steady, with no major macro-related impacts observed across product lines [19][56] - The demand for solutions remains strong despite economic uncertainties, indicating resilience in the company's market position [67] Company Strategy and Development Direction - The company is focused on integrating MarkLogic, managing debt, and seeking new acquisition opportunities, with a strategy to double the business in five years [7][70] - There is a strong emphasis on leveraging generative AI to enhance operational efficiency and product development, with ongoing investments in AI technologies [8][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment and the ability to manage costs effectively, leading to an increase in revenue guidance for FY23 [67][35] - The company remains vigilant in managing expenses and is optimistic about the integration of MarkLogic and future growth prospects [19][54] Other Important Information - The company ended the quarter with cash and short-term investments of $138 million and a net debt position of $625 million, representing a net leverage of approximately 2.3x [53] - The MOVEit incident had minimal impact on the business, with the company taking swift action to address vulnerabilities and maintain customer satisfaction [21][38] Q&A Session Summary Question: Are there areas of the portfolio seeing macro-related impacts? - Management indicated that while large projects are being scrutinized more closely, overall business strength remains intact across product lines [26][56] Question: Can you comment on MOVEit in more detail? - Management noted that there was minimal impact from the MOVEit incident, with customers generally satisfied with the company's response [33][38] Question: How does the strengthening US dollar influence financial statements? - The company has a natural hedge in place, with a significant portion of revenue and expenses in dollars, which may provide some benefits if the dollar weakens [34][39] Question: What are the plans for headcount growth this year? - The company plans to maintain a flat headcount, primarily replacing turnover, and is not aggressively hiring [32][60] Question: Why hasn't the fourth-quarter guidance been increased despite strong performance? - Management explained that while they are optimistic, they prefer to maintain conservative guidance in light of the stable environment [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to _____. Commission File Number: 0-19417 PROGRESS SOFTWARE CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-2746201 (State or ...

Financial Data and Key Metrics Changes - Revenues increased by 19% year-over-year to $179 million, driven by strong demand for products and effective field performance [18][61] - Earnings per share reached $1.06, exceeding estimates due to strong revenue and effective expense management [19][64] - Operating margins were 38%, surpassing the consensus of around 35% [20] - Annual recurring revenue (ARR) grew to $569 million, a 19% year-over-year increase, supported by the MarkLogic acquisition [20][50] Business Line Data and Key Metrics Changes - OpenEdge saw strength from customer win-backs and modernization needs, indicating its value for mission-critical applications [21] - Loadmaster continued to gain new customers through the Dell Channel, enhancing Dell's cloud storage offerings [22] - Sitefinity Cloud experienced growth as customers recognized its value in marketing effectiveness and engagement [23] - MarkLogic contributed significantly to revenue and ARR, with $25 million recognized in the quarter, slightly above expectations [24][116] Market Data and Key Metrics Changes - The demand environment for solutions remains strong despite potential macroeconomic challenges [67] - The company noted a healthy pipeline of potential acquisition targets, indicating a favorable M&A market [42][59] Company Strategy and Development Direction - The company is focused on a total growth strategy that includes investing in products, acquiring complementary businesses, and ensuring customer success [58] - The integration of MarkLogic is on track, with expectations to achieve all synergy goals by the end of the fiscal year [25][47] - The company is exploring opportunities to enhance security measures across its product portfolio following recent vulnerabilities [80][101] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and raised guidance for the remainder of the year [38][47] - Wage inflation and general inflation are persistent, but the company is managing costs effectively [10][77] - The company is optimistic about future M&A opportunities as capital becomes scarcer in the private market [42][82] Other Important Information - The MOVEit product line, affected by a recent security issue, represents less than 4% of overall annual revenue, limiting its impact [92] - The company has a robust security program and is actively investigating potential vulnerabilities across its product lines [80][101] Q&A Session Summary Question: What is the revenue impact of the MOVEit issue? - The MOVEit product line accounts for less than 4% of overall annual revenue, indicating a limited impact [92] Question: How does the company view customer concerns regarding vulnerabilities? - There have been no significant concerns raised by customers outside of the MOVEit product line [76][96] Question: What proactive steps is the company taking regarding product security? - The company has a strong security program and is reviewing its M&A process to enhance product security [80][101] Question: What is the outlook for revenue and expenses in the coming quarters? - The company expects revenue between $172 million and $176 million for Q3 and has raised full-year revenue guidance [89]