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]

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 February 28, 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 (Stat ...

Financial Data and Key Metrics Changes - The company reported an ARR of $569 million for Q1 2023, reflecting a 3.9% increase on a pro forma constant currency basis compared to $547 million a year ago [19][75] - Revenue for the quarter was $166 million, exceeding the high end of guidance of $161 million, and representing a 12% year-over-year growth [20][76] - Earnings per share (EPS) reached $1.19, which is $0.11 above the high end of guidance and shows a growth of $0.22 year-over-year [20][80] - The net retention rate improved to 102% from 101% a year ago [19] Business Line Data and Key Metrics Changes - Strong performance was noted across multiple product lines, including DataDirect, OpenEdge, Loadmaster, MOVEit, Sitefinity, and Flowmon [20][76] - The integration of MarkLogic is expected to enhance revenue contributions in the upcoming quarters, with the most significant impact anticipated in Q1 of the next fiscal year [25][26] Market Data and Key Metrics Changes - The Americas and Europe showed the most strength in performance, while Asia met expectations [60] - The company is monitoring the ongoing conflict in Europe but reported strong performance across the EMEA region [60] Company Strategy and Development Direction - The company remains optimistic about its business outlook despite economic uncertainties, supported by strong cash flow and a solid balance sheet [11][12] - The focus is on integrating MarkLogic and exploring further acquisition opportunities, with a disciplined approach to M&A in the current market environment [67][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid economic challenges, highlighting the stability of demand for its products [14][16] - The company is aware of potential macroeconomic challenges but maintains a positive outlook for the remainder of fiscal 2023 [86][89] Other Important Information - The company reported a net debt position of $698 million, with a net leverage ratio of approximately 2.6 times [81][82] - Adjusted free cash flow for the quarter was $47 million, an increase of $2 million compared to the prior year [84] Q&A Session Summary Question: Impact of headcount reductions in large companies on developer-oriented solutions - Management noted that the majority of developer-centric products are used by small teams, which mitigates the impact of headcount reductions on monetization prospects [95][96] Question: Clarification on free cash flow cadence and operating expenses - Management indicated that Q1 typically shows strong cash flow, but uncertainties around increased tax payments and rising interest rates could affect future cash flow [101][102]

| --- | --- | --- | |-----------------------------|-------|-------| | | | | | | | | | Progress Financial Results | | | | Q1 2023 Supplemental Data | | | | March 28, 2023 | | | Non-GAAP Financial Measures Conference Call Details To register for the Live Call: Please go to this this link to retrieve dial-in details. Live / Recorded Webcast: https://edge.media-server.com/mmc/p/cgfomqnf This presentation contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securitie ...