PRGS...Nice report...Progress Reports 2021 Fiscal Fourth Quarter and Year End Results
January 18 2022 - 04:15PM
GlobeNewswire Inc.
Progress (NASDAQ: PRGS), the leading provider of products to develop, deploy and manage high-impact applications, today announced financial results for its fiscal fourth quarter and fiscal year ended November 30, 2021.
Fourth Quarter 2021 Highlights:
Revenue of $140.1 million increased 14% year-over-year on an actual currency basis and 15% year-over-year on a constant currency basis.
Non-GAAP revenue of $143.7 million increased 11% on both an actual currency basis and a constant currency basis.
Annualized Recurring Revenue ("ARR") of $486 million increased 12% year-over-year on a constant currency basis.
Operating margin was 15% and Non-GAAP operating margin was 36%.
Diluted earnings per share was $0.33 compared to $0.39 in the same quarter last year, a decrease of 15%.
Non-GAAP diluted earnings per share was $0.92 compared to $0.91 in the same quarter last year, an increase of 1%.
“We're very pleased with our performance throughout 2021, and especially our Q4 results that significantly beat our guidance for revenue and earnings,” said Yogesh Gupta, CEO at Progress. “We're also thrilled with the customer response and rapid integration pace of Kemp, whose acquisition we completed in November. As a leader in the Application Experience ("AX") space, Kemp fits our total growth strategy perfectly, and the acquisition will enable us to drive significant value to our shareholders while bringing a very talented team to Progress that will contribute to our future success.”
Additional financial highlights included(1):
Three Months Ended
GAAP Non-GAAP
(In thousands, except percentages and per share amounts) November 30, 2021 November 30, 2020 % Change November 30, 2021 November 30, 2020 % Change
Revenue $ 140,128 $ 122,385 14 % $ 143,725 $ 129,063 11 %
Income from operations $ 20,358 $ 18,514 10 % $ 51,627 $ 48,081 7 %
Operating margin 15 % 15 % — 36 % 37 % (100) bps
Net income $ 14,926 $ 17,661 (15) % $ 41,292 $ 41,118 — %
Diluted earnings per share $ 0.33 $ 0.39 (15) % $ 0.92 $ 0.91 1 %
Cash from operations (GAAP) /Adjusted free cash flow (Non-GAAP) $ 43,928 $ 42,762 3 % $ 42,447 $ 40,656 4 %
(1)See Legal Notice Regarding Non-GAAP Financial Information
Other fiscal fourth quarter 2021 metrics and recent results included:
Cash, cash equivalents and short-term investments were $157.4 million at the end of the quarter.
DSO was 60 days compared to 54 days in the fiscal fourth quarter of 2020 and 54 days in the fiscal third quarter of 2021.
On January 10, 2022, our Board of Directors declared a quarterly dividend of $0.175 per share of common stock that will be paid on March 15, 2022 to shareholders of record as of the close of business on March 1, 2022.
On November 1, 2021, the company completed the acquisition of Kemp Technologies, Inc., a leader in the Application Experience space.
“Q4 results were outstanding across every metric and we're very pleased with such a strong close to our fiscal 2021,” said Anthony Folger, CFO at Progress. “As we begin to realize synergies from the acquisition of Kemp, we are very well positioned to deliver strong financial results in 2022 and beyond. We exit 2021 having grown our ARR by 12%, while at the same time, achieving Non-GAAP operating margins of over 40% for the second year in a row.”
Full Year Results
Fiscal Year Ended
GAAP Non-GAAP
(In thousands, except percentages and per share amounts) November 30, 2021 November 30, 2020 % Change November 30, 2021 November 30, 2020 % Change
Revenue $ 531,313 $ 442,150 20 % $ 557,304 $ 456,212 22 %
Income from operations $ 116,102 $ 107,728 8 % $ 229,159 $ 182,761 25 %
Operating margin 22 % 24 % (200) bps 41 % 40 % 100 bps
Net income $ 78,420 $ 79,722 (2) % $ 172,886 $ 140,082 23 %
Diluted earnings per share $ 1.76 $ 1.76 — % $ 3.87 $ 3.09 25 %
Cash from operations (GAAP) /Adjusted free cash flow (Non-GAAP) $ 178,530 $ 144,847 23 % $ 179,395 $ 142,453 26 %
2022 Business Outlook
Progress provides the following guidance for the fiscal year ending November 30, 2022 and the fiscal first quarter ending February 28, 2022, together with actual results for the same periods in the fiscal year ending November 30, 2021:
FY 2022 Guidance FY 2021 Actual
(In millions, except percentages and per share amounts) FY 2022
GAAP FY 2022
Non-GAAP FY 2021
GAAP FY 2021
Non-GAAP
Revenue $597 - $607 $605 - $615 $ 531 $ 557
Diluted earnings per share $1.93 - $2.03 $3.95 - $4.05 $ 1.76 $ 3.87
Operating margin 21% 39% 22% 41%
Cash from operations (GAAP) /
Adjusted free cash flow (Non-GAAP) $188 - $193 $185 - $190 $ 179 $ 179
Effective tax rate 20 - 21% 20 - 21% 18% 20%
Q1 2022 Guidance Q1 2021 Actual
(In millions, except per share amounts) Q1 2022
GAAP Q1 2022
Non-GAAP Q1 2021
GAAP Q1 2021
Non-GAAP
Revenue $136 - $139 $139 - $142 $ 121 $ 132
Diluted earnings per share $0.32 - $0.34 $0.83 - $0.85 $ 0.42 $ 0.95
Based on current exchange rates, the expected negative currency translation impact on Progress' fiscal year 2022 business outlook compared to 2021 exchange rates is approximately $7.5 million on GAAP and non-GAAP revenue, and approximately $0.03 on GAAP and non-GAAP diluted earnings per share. The expected negative currency translation impact on Progress' fiscal Q1 2022 business outlook compared to 2021 exchange rates on GAAP and non-GAAP revenue is approximately $2.5 million. The expected negative currency translation impact on GAAP and non-GAAP diluted earnings per share for fiscal Q1 2022 is approximately $0.01. To the extent that there are changes in exchange rates versus the current environment, this may have an impact on Progress' business outlook.
Conference Call
Progress will hold a conference call to review its financial results for the fiscal fourth quarter of 2021 at 5:00 p.m. ET on Tuesday, January 18, 2022. The call can be accessed on the investor relations section of the company’s website, located at www.progress.com. Additionally, you can listen to the call by telephone by dialing 800-773-2954 or +1 847-413-3731, pass code 50242105. The conference call will include comments followed by questions and answers. An archived version of the conference call and supporting materials will be available on the Progress website within the investor relations section after the live conference call.
Legal Notice Regarding Non-GAAP Financial Information
Progress provides non-GAAP financial information as additional information for investors. These non-GAAP measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP"). Progress believes that the non-GAAP results described in this release are useful for an understanding of its ongoing operations and provide additional detail and an alternative method of assessing its operating results. A reconciliation of non-GAAP adjustments to the company's GAAP financial results is included in the tables below and is available on the Progress website at www.progress.com within the investor relations section. Additional information regarding the company's non-GAAP financial information is contained in the company's Current Report on Form 8-K furnished to the Securities and Exchange Commission in connection with this press release, which is also available on the Progress website within the investor relations section.
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