Exhibit 99.1 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
GAAP | Non-GAAP | ||||||||||||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | November 30, 2020 | November 30, 2019 | Change | November 30, 2020 | November 30, 2019 | Change | |||||||||||||||||||||||||||||
Revenue | $ | 122,385 | $ | 117,038 | 5 | % | $ | 129,063 | $ | 123,416 | 5 | % | |||||||||||||||||||||||
Income (loss) from operations | $ | 18,514 | $ | (6,026) | * | $ | 48,081 | $ | 47,285 | 2 | % | ||||||||||||||||||||||||
Operating margin | 15 | % | (5) | % | * | 37 | % | 38 | % | (100) bps | |||||||||||||||||||||||||
Net income (loss) | $ | 17,661 | $ | (4,740) | * | $ | 41,118 | $ | 35,720 | 15 | % | ||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.39 | $ | (0.11) | * | $ | 0.91 | $ | 0.79 | 15 | % | ||||||||||||||||||||||||
Cash from operations (GAAP) /Adjusted free cash flow (Non-GAAP) | $ | 42,762 | $ | 36,601 | 17 | % | $ | 40,656 | $ | 36,705 | 11 | % |
Fiscal Year Ended | |||||||||||||||||||||||||||||||||||
GAAP | Non-GAAP | ||||||||||||||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | November 30, 2020 | November 30, 2019 | Change | November 30, 2020 | November 30, 2019 | Change | |||||||||||||||||||||||||||||
Revenue | $ | 442,150 | $ | 413,298 | 7 | % | $ | 456,212 | $ | 431,961 | 6 | % | |||||||||||||||||||||||
Income from operations | $ | 107,728 | $ | 40,084 | 169 | % | $ | 182,761 | $ | 162,258 | 13 | % | |||||||||||||||||||||||
Operating margin | 24 | % | 10 | % | 1400 bps | 40 | % | 38 | % | 200 bps | |||||||||||||||||||||||||
Net income | $ | 79,722 | $ | 26,400 | 202 | % | $ | 140,082 | $ | 121,745 | 15 | % | |||||||||||||||||||||||
Diluted earnings per share | $ | 1.76 | $ | 0.58 | 203 | % | $ | 3.09 | $ | 2.69 | 15 | % | |||||||||||||||||||||||
Cash from operations (GAAP) /Adjusted free cash flow (Non-GAAP) | $ | 144,847 | $ | 128,484 | 13 | % | $ | 142,453 | $ | 128,893 | 11 | % |
FY 2021 Guidance | FY 2020 Actual | ||||||||||||||||||||||
(In millions, except percentages and per share amounts) | FY 2021 GAAP | FY 2021 Non-GAAP | FY 2020 GAAP | FY 2020 Non-GAAP | |||||||||||||||||||
Revenue | $487 - $495 | $513 - $521 | $ | 442 | $ | 456 | |||||||||||||||||
Diluted earnings per share | $1.40 - $1.46 | $3.22 - $3.28 | $ | 1.76 | $ | 3.09 | |||||||||||||||||
Operating margin | 19% | 37% | 24% | 40% | |||||||||||||||||||
Cash from operations (GAAP) / Adjusted free cash flow (Non-GAAP) | $151 - $156 | $150 - $155 | $ | 145 | $ | 142 | |||||||||||||||||
Effective tax rate | 21 | % | 20 | % | 18% | 18% |
Q1 2021 Guidance | Q1 2020 Actual | ||||||||||||||||||||||
(In millions, except per share amounts) | Q1 2021 GAAP | Q1 2021 Non-GAAP | Q1 2020 GAAP | Q1 2020 Non-GAAP | |||||||||||||||||||
Revenue | $109 - $113 | $119 - $123 | $ | 110 | $ | 114 | |||||||||||||||||
Diluted earnings per share | $0.21 - $0.25 | $0.72 - $0.76 | $ | 0.46 | $ | 0.76 |
Investor Contact: | Press Contact: | |||||||
Garo Toomajanian | Erica McShane | |||||||
Progress Software | Progress Software | |||||||
+1 781 280 4817 | +1 781 280 4000 | |||||||
Investor-Relations@progress.com | PR@progress.com |
Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | November 30, 2020 | November 30, 2019 | % Change | November 30, 2020 | November 30, 2019 | % Change | |||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Software licenses | $ | 37,443 | $ | 39,336 | (5) | % | $ | 115,249 | $ | 122,552 | (6) | % | |||||||||||||||||||||||
Maintenance and services | 84,942 | 77,702 | 9 | % | 326,901 | 290,746 | 12 | % | |||||||||||||||||||||||||||
Total revenue | 122,385 | 117,038 | 5 | % | 442,150 | 413,298 | 7 | % | |||||||||||||||||||||||||||
Costs of revenue: | |||||||||||||||||||||||||||||||||||
Cost of software licenses | 1,171 | 1,598 | (27) | % | 4,473 | 4,894 | (9) | % | |||||||||||||||||||||||||||
Cost of maintenance and services | 14,137 | 12,281 | 15 | % | 49,744 | 44,463 | 12 | % | |||||||||||||||||||||||||||
Amortization of acquired intangibles | 2,923 | 6,887 | (58) | % | 7,897 | 25,884 | (69) | % | |||||||||||||||||||||||||||
Total costs of revenue | 18,231 | 20,766 | (12) | % | 62,114 | 75,241 | (17) | % | |||||||||||||||||||||||||||
Gross profit | 104,154 | 96,272 | 8 | % | 380,036 | 338,057 | 12 | % | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | 32,013 | 29,369 | 9 | % | 100,113 | 101,701 | (2) | % | |||||||||||||||||||||||||||
Product development | 24,482 | 23,868 | 3 | % | 88,599 | 88,572 | — | % | |||||||||||||||||||||||||||
General and administrative | 15,302 | 14,915 | 3 | % | 54,004 | 53,360 | 1 | % | |||||||||||||||||||||||||||
Amortization of acquired intangibles | 7,565 | 7,414 | 2 | % | 20,049 | 22,255 | (10) | % | |||||||||||||||||||||||||||
Impairment of intangible & long-lived assets(1) | — | 24,096 | (100) | % | — | 24,096 | (100) | % | |||||||||||||||||||||||||||
Restructuring expenses | 4,080 | 2,338 | 75 | % | 5,906 | 6,331 | (7) | % | |||||||||||||||||||||||||||
Acquisition-related expenses | 2,198 | 298 | 638 | % | 3,637 | 1,658 | 119 | % | |||||||||||||||||||||||||||
Total operating expenses | 85,640 | 102,298 | (16) | % | 272,308 | 297,973 | (9) | % | |||||||||||||||||||||||||||
Income (loss) from operations | 18,514 | (6,026) | * | 107,728 | 40,084 | 169 | % | ||||||||||||||||||||||||||||
Other expense, net | (1,887) | (3,551) | 47 | % | (11,093) | (11,589) | 4 | % | |||||||||||||||||||||||||||
Income (loss) before income taxes | 16,627 | (9,577) | * | 96,635 | 28,495 | 239 | % | ||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (1,034) | (4,837) | (79) | % | 16,913 | 2,095 | (707) | % | |||||||||||||||||||||||||||
Net income (loss) | $ | 17,661 | $ | (4,740) | * | $ | 79,722 | $ | 26,400 | 202 | % | ||||||||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.39 | $ | (0.11) | * | $ | 1.78 | $ | 0.59 | 202 | % | ||||||||||||||||||||||||
Diluted | $ | 0.39 | $ | (0.11) | * | $ | 1.76 | $ | 0.58 | 203 | % | ||||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||
Basic | 44,723 | 44,882 | — | % | 44,886 | 44,791 | — | % | |||||||||||||||||||||||||||
Diluted | 45,140 | 44,882 | 1 | % | 45,321 | 45,340 | — | % | |||||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.175 | $ | 0.165 | 6 | % | $ | 0.670 | $ | 0.630 | 6 | % | |||||||||||||||||||||||
(1)Primarily represents a reduction in the carrying values of the intangible assets associated with Kinvey and DataRPM. |
Stock-based compensation is included in the condensed consolidated statements of operations, as follows: | |||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 357 | $ | 323 | 11 | % | $ | 1,336 | $ | 1,134 | 18 | % | |||||||||||||||||||||||
Sales and marketing | 1,267 | 950 | 33 | % | 4,462 | 4,155 | 7 | % | |||||||||||||||||||||||||||
Product development | 1,768 | 1,812 | (2) | % | 7,286 | 7,205 | 1 | % | |||||||||||||||||||||||||||
General and administrative | 2,731 | 2,815 | (3) | % | 10,398 | 10,817 | (4) | % | |||||||||||||||||||||||||||
Total | $ | 6,123 | $ | 5,900 | 4 | % | $ | 23,482 | $ | 23,311 | 1 | % |
(In thousands) | November 30, 2020 | November 30, 2019 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash, cash equivalents and short-term investments | $ | 105,995 | $ | 173,685 | |||||||
Accounts receivable, net | 84,040 | 72,820 | |||||||||
Unbilled receivables and contract assets | 24,917 | 10,880 | |||||||||
Other current assets | 23,983 | 27,280 | |||||||||
Total current assets | 238,935 | 284,665 | |||||||||
Property and equipment, net | 29,817 | 29,765 | |||||||||
Goodwill and intangible assets, net | 704,473 | 532,216 | |||||||||
Right-of-use lease assets | 30,635 | — | |||||||||
Long-term unbilled receivables and contract assets | 17,133 | 12,492 | |||||||||
Other assets | 20,789 | 22,133 | |||||||||
Total assets | $ | 1,041,782 | $ | 881,271 | |||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and other current liabilities | $ | 70,899 | $ | 72,674 | |||||||
Current portion of long-term debt, net | 18,242 | 10,717 | |||||||||
Short-term operating lease liabilities | 7,015 | — | |||||||||
Short-term deferred revenue | 166,387 | 157,494 | |||||||||
Total current liabilities | 262,543 | 240,885 | |||||||||
Long-term debt, net | 364,260 | 284,002 | |||||||||
Long-term operating lease liabilities | 26,966 | — | |||||||||
Long-term deferred revenue | 26,908 | 19,752 | |||||||||
Other long-term liabilities | 15,092 | 6,350 | |||||||||
Shareholders' equity: | |||||||||||
Common stock and additional paid-in capital | 306,244 | 295,953 | |||||||||
Retained earnings | 39,769 | 34,329 | |||||||||
Total shareholders' equity | 346,013 | 330,282 | |||||||||
Total liabilities and shareholders' equity | $ | 1,041,782 | $ | 881,271 |
Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||
(In thousands) | November 30, 2020 | November 30, 2019 | November 30, 2020 | November 30, 2019 | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ | 17,661 | $ | (4,740) | $ | 79,722 | $ | 26,400 | |||||||||||||||
Depreciation and amortization | 12,044 | 16,519 | 34,765 | 56,679 | |||||||||||||||||||
Stock-based compensation | 6,123 | 5,900 | 23,482 | 23,311 | |||||||||||||||||||
Impairment of intangible and long-lived assets(1) | — | 24,096 | — | 24,096 | |||||||||||||||||||
Other non-cash adjustments | (2,024) | (8,252) | 6,287 | (13,947) | |||||||||||||||||||
Changes in operating assets and liabilities | 8,958 | 3,078 | 591 | 11,945 | |||||||||||||||||||
Net cash flows from operating activities | 42,762 | 36,601 | 144,847 | 128,484 | |||||||||||||||||||
Capital expenditures | (3,098) | (2,168) | (6,517) | (3,998) | |||||||||||||||||||
Repurchases of common stock, net of issuances | (37,927) | 2,918 | (48,901) | (15,735) | |||||||||||||||||||
Dividend payments to shareholders | (7,542) | (6,941) | (29,900) | (27,760) | |||||||||||||||||||
Payments for acquisitions, net of cash acquired | (213,057) | — | (213,057) | (225,298) | |||||||||||||||||||
Proceeds from the issuance of debt, net of payment of issuance costs | 98,500 | — | 98,500 | 183,374 | |||||||||||||||||||
Proceeds from sale of long-lived assets, net | 889 | — | 889 | 6,146 | |||||||||||||||||||
Payments of principal on long-term debt | (3,763) | (1,882) | (11,288) | (5,309) | |||||||||||||||||||
Other | (888) | (240) | (2,263) | (5,732) | |||||||||||||||||||
Net change in cash, cash equivalents and short-term investments | (124,124) | 28,288 | (67,690) | 34,172 | |||||||||||||||||||
Cash, cash equivalents and short-term investments, beginning of period | 230,119 | 145,397 | 173,685 | 139,513 | |||||||||||||||||||
Cash, cash equivalents and short-term investments, end of period | $ | 105,995 | $ | 173,685 | $ | 105,995 | $ | 173,685 | |||||||||||||||
(1)Primarily represents a reduction in the carrying values of the intangible assets associated with Kinvey and DataRPM. |
Three Months Ended | % Change | ||||||||||||||||||||||||||||
(In thousands, except per share data) | November 30, 2020 | November 30, 2019 | Non-GAAP | ||||||||||||||||||||||||||
Adjusted revenue: | |||||||||||||||||||||||||||||
GAAP revenue | $ | 122,385 | $ | 117,038 | |||||||||||||||||||||||||
Acquisition-related revenue(1) | 6,678 | 6,378 | |||||||||||||||||||||||||||
Non-GAAP revenue | $ | 129,063 | 100 | % | $ | 123,416 | 100 | % | 5 | % | |||||||||||||||||||
Adjusted income from operations: | |||||||||||||||||||||||||||||
GAAP income (loss) from operations | $ | 18,514 | 15 | % | $ | (6,026) | (5) | % | |||||||||||||||||||||
Amortization of acquired intangibles | 10,488 | 8 | % | 14,301 | 12 | % | |||||||||||||||||||||||
Stock-based compensation | 6,123 | 4 | % | 5,900 | 4 | % | |||||||||||||||||||||||
Impairment of intangible and long-lived assets(2) | — | — | % | 24,096 | 20 | % | |||||||||||||||||||||||
Restructuring expenses and other | 4,080 | 3 | % | 2,338 | 2 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 8,876 | 7 | % | 6,676 | 5 | % | |||||||||||||||||||||||
Non-GAAP income from operations | $ | 48,081 | 37 | % | $ | 47,285 | 38 | % | 2 | % | |||||||||||||||||||
Adjusted net income: | |||||||||||||||||||||||||||||
GAAP net income (loss) | $ | 17,661 | 14 | % | $ | (4,740) | (4) | % | |||||||||||||||||||||
Amortization of acquired intangibles | 10,488 | 8 | % | 14,301 | 12 | % | |||||||||||||||||||||||
Stock-based compensation | 6,123 | 5 | % | 5,900 | 4 | % | |||||||||||||||||||||||
Impairment of intangible and long-lived assets(2) | — | — | % | 24,096 | 20 | % | |||||||||||||||||||||||
Restructuring expenses and other | 4,080 | 3 | % | 2,338 | 2 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 8,876 | 7 | % | 6,676 | 5 | % | |||||||||||||||||||||||
Provision for income taxes | (6,110) | (5) | % | (12,851) | (10) | % | |||||||||||||||||||||||
Non-GAAP net income | $ | 41,118 | 32 | % | $ | 35,720 | 29 | % | 15 | % | |||||||||||||||||||
Adjusted diluted earnings per share: | |||||||||||||||||||||||||||||
GAAP diluted earnings (loss) per share | $ | 0.39 | $ | (0.11) | |||||||||||||||||||||||||
Amortization of acquired intangibles | 0.23 | 0.32 | |||||||||||||||||||||||||||
Stock-based compensation | 0.14 | 0.13 | |||||||||||||||||||||||||||
Impairment of intangible and long-lived assets(2) | — | 0.53 | |||||||||||||||||||||||||||
Restructuring expenses and other | 0.09 | 0.05 | |||||||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 0.20 | 0.15 | |||||||||||||||||||||||||||
Provision for income taxes | (0.14) | (0.28) | |||||||||||||||||||||||||||
Non-GAAP diluted earnings per share | $ | 0.91 | $ | 0.79 | 15 | % | |||||||||||||||||||||||
Non-GAAP weighted avg shares outstanding - diluted | 45,140 | 45,484 | (1) | % | |||||||||||||||||||||||||
(1)Acquisition-related revenue constitutes revenue reflected as pre-acquisition deferred revenue that would otherwise have been recognized but for the purchase accounting treatment of acquisitions. Since GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities. Acquisition-related revenue adjustments relate to Progress' Application Development and Deployment business segment for Chef in fiscal year 2020 and Progress' OpenEdge business segment for Ipswitch in fiscal year 2019. | |||||||||||||||||||||||||||||
(2)Primarily represents a reduction in the carrying values of the intangible assets associated with Kinvey and DataRPM. |
Fiscal Year Ended | % Change | ||||||||||||||||||||||||||||
(In thousands, except per share data) | November 30, 2020 | November 30, 2019 | Non-GAAP | ||||||||||||||||||||||||||
Adjusted revenue: | |||||||||||||||||||||||||||||
GAAP revenue | $ | 442,150 | $ | 413,298 | |||||||||||||||||||||||||
Acquisition-related revenue(1) | 14,062 | 18,663 | |||||||||||||||||||||||||||
Non-GAAP revenue | $ | 456,212 | 100 | % | $ | 431,961 | 100 | % | 6 | % | |||||||||||||||||||
Adjusted income from operations: | |||||||||||||||||||||||||||||
GAAP income from operations | $ | 107,728 | 24 | % | $ | 40,084 | 10 | % | |||||||||||||||||||||
Amortization of acquired intangibles | 27,946 | 6 | % | 48,139 | 11 | % | |||||||||||||||||||||||
Stock-based compensation | 23,482 | 5 | % | 23,311 | 5 | % | |||||||||||||||||||||||
Impairment of intangible and long-lived assets(2) | — | — | % | 24,096 | 6 | % | |||||||||||||||||||||||
Restructuring expenses and other | 5,906 | 1 | % | 6,307 | 1 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 17,699 | 4 | % | 20,321 | 5 | % | |||||||||||||||||||||||
Non-GAAP income from operations | $ | 182,761 | 40 | % | $ | 162,258 | 38 | % | 13 | % | |||||||||||||||||||
Adjusted net income: | |||||||||||||||||||||||||||||
GAAP net income | $ | 79,722 | 18 | % | $ | 26,400 | 6 | % | |||||||||||||||||||||
Amortization of acquired intangibles | 27,946 | 6 | % | 48,139 | 11 | % | |||||||||||||||||||||||
Stock-based compensation | 23,482 | 5 | % | 23,311 | 5 | % | |||||||||||||||||||||||
Impairment of intangible and long-lived assets(2) | — | — | % | 24,096 | 6 | % | |||||||||||||||||||||||
Restructuring expenses and other | 5,906 | 1 | % | 6,307 | 1 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 17,699 | 4 | % | 20,321 | 5 | % | |||||||||||||||||||||||
Provision for income taxes | (14,673) | (3) | % | (26,829) | (6) | % | |||||||||||||||||||||||
Non-GAAP net income | $ | 140,082 | 31 | % | $ | 121,745 | 28 | % | 15 | % | |||||||||||||||||||
Adjusted diluted earnings per share: | |||||||||||||||||||||||||||||
GAAP diluted earnings per share | $ | 1.76 | $ | 0.58 | |||||||||||||||||||||||||
Amortization of acquired intangibles | 0.62 | 1.07 | |||||||||||||||||||||||||||
Stock-based compensation | 0.51 | 0.51 | |||||||||||||||||||||||||||
Impairment of intangible and long-lived assets(2) | — | 0.53 | |||||||||||||||||||||||||||
Restructuring expenses and other | 0.13 | 0.14 | |||||||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 0.39 | 0.45 | |||||||||||||||||||||||||||
Provision for income taxes | (0.32) | (0.59) | |||||||||||||||||||||||||||
Non-GAAP diluted earnings per share | $ | 3.09 | $ | 2.69 | 15 | % | |||||||||||||||||||||||
Non-GAAP weighted avg shares outstanding - diluted | 45,321 | 45,340 | — | % | |||||||||||||||||||||||||
(1)Acquisition-related revenue constitutes revenue reflected as pre-acquisition deferred revenue that would otherwise have been recognized but for the purchase accounting treatment of acquisitions. Since GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities. Acquisition-related revenue adjustments relate to Progress' Application Development and Deployment business segment for Chef in fiscal year 2020 and Progress' OpenEdge business segment for Ipswitch in fiscal year 2019. | |||||||||||||||||||||||||||||
(2)Primarily represents a reduction in the carrying values of the intangible assets associated with Kinvey and DataRPM. |
Quarter to Date Adjusted Free Cash Flow | |||||||||||||||||
(In thousands) | Q4 2020 | Q4 2019 | % Change | ||||||||||||||
Cash flows from operations | $ | 42,762 | $ | 36,601 | 17 | % | |||||||||||
Purchases of property and equipment | (3,098) | (2,168) | 43 | % | |||||||||||||
Free cash flow | 39,664 | 34,433 | 15 | % | |||||||||||||
Add back: restructuring payments | 992 | 2,272 | (56) | % | |||||||||||||
Adjusted free cash flow | $ | 40,656 | $ | 36,705 | 11 | % |
Year to Date Adjusted Free Cash Flow | |||||||||||||||||
(In thousands) | FY 2020 | FY 2019 | % Change | ||||||||||||||
Cash flows from operations | $ | 144,847 | $ | 128,484 | 13 | % | |||||||||||
Purchases of property and equipment | (6,517) | (3,998) | 63 | % | |||||||||||||
Free cash flow | 138,330 | 124,486 | 11 | % | |||||||||||||
Add back: restructuring payments | 4,123 | 4,407 | (6) | % | |||||||||||||
Adjusted free cash flow | $ | 142,453 | $ | 128,893 | 11 | % |
Fiscal Year 2021 Revenue Guidance | |||||||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ending | ||||||||||||||||||||||||||||
November 30, 2020 | November 30, 2021 | ||||||||||||||||||||||||||||
(In millions) | Low | % Change | High | % Change | |||||||||||||||||||||||||
GAAP revenue | $ | 442.1 | $ | 487.3 | 10 | % | $ | 495.3 | 12 | % | |||||||||||||||||||
Acquisition-related adjustments - revenue(1) | 14.1 | 25.7 | 82 | % | 25.7 | 82 | % | ||||||||||||||||||||||
Non-GAAP revenue | $ | 456.2 | $ | 513.0 | 12 | % | $ | 521.0 | 14 | % | |||||||||||||||||||
(1)Acquisition-related revenue constitutes revenue reflected as pre-acquisition deferred revenue that would otherwise have been recognized but for the purchase accounting treatment of acquisitions. Since GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities. Acquisition-related revenue adjustments relate to Progress' Application Development and Deployment business segment for Chef and Progress' OpenEdge business segment for Ipswitch. |
Fiscal Year 2021 Non-GAAP Operating Margin Guidance | |||||||||||
Fiscal Year Ending November 30, 2021 | |||||||||||
(In millions) | Low | High | |||||||||
GAAP income from operations | $ | 91.2 | $ | 94.6 | |||||||
GAAP operating margin | 19 | % | 19 | % | |||||||
Acquisition-related revenue | 25.7 | 25.7 | |||||||||
Restructuring expense | 1.9 | 1.9 | |||||||||
Stock-based compensation | 27.3 | 27.3 | |||||||||
Acquisition-related expenses | 0.3 | 0.3 | |||||||||
Amortization of intangibles | 44.9 | 44.9 | |||||||||
Total adjustments | 100.1 | 100.1 | |||||||||
Non-GAAP income from operations | $ | 191.3 | $ | 194.7 | |||||||
Non-GAAP operating margin | 37 | % | 37 | % |
Fiscal Year 2021 Non-GAAP Earnings per Share and Effective Tax Rate Guidance | |||||||||||
Fiscal Year Ending November 30, 2021 | |||||||||||
(In millions, except per share data) | Low | High | |||||||||
GAAP net income | $ | 62.4 | $ | 65.1 | |||||||
Adjustments (from previous table) | 100.1 | 100.1 | |||||||||
Income tax adjustment(2) | (19.2) | (19.2) | |||||||||
Non-GAAP net income | $ | 143.3 | $ | 146.0 | |||||||
GAAP diluted earnings per share | $ | 1.40 | $ | 1.46 | |||||||
Non-GAAP diluted earnings per share | $ | 3.22 | $ | 3.28 | |||||||
Diluted weighted average shares outstanding | 44.5 | 44.5 | |||||||||
(2)Tax adjustment is based on a non-GAAP effective tax rate of approximately 20% for Low and High, calculated as follows: | |||||||||||
Non-GAAP income from operations | $ | 191.3 | $ | 194.7 | |||||||
Other (expense) income | (12.2) | (12.2) | |||||||||
Non-GAAP income from continuing operations before income taxes | 179.1 | 182.5 | |||||||||
Non-GAAP net income | 143.3 | 146.0 | |||||||||
Tax provision | $ | 35.8 | $ | 36.5 | |||||||
Non-GAAP tax rate | 20 | % | 20 | % |
Fiscal Year 2021 Adjusted Free Cash Flow Guidance | |||||||||||
Fiscal Year Ending November 30, 2021 | |||||||||||
(In millions) | Low | High | |||||||||
Cash flows from operations (GAAP) | $ | 151 | $ | 156 | |||||||
Purchases of property and equipment | (7) | (7) | |||||||||
Add back: restructuring payments | 6 | 6 | |||||||||
Adjusted free cash flow (non-GAAP) | $ | 150 | $ | 155 |
Q1 2021 Revenue Guidance | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ending | ||||||||||||||||||||||||||||
February 29, 2020 | February 28, 2021 | ||||||||||||||||||||||||||||
(In millions) | Low | % Change | High | % Change | |||||||||||||||||||||||||
GAAP revenue | $ | 109.7 | $ | 108.8 | (1) | % | $ | 112.8 | 3 | % | |||||||||||||||||||
Acquisition-related adjustments - revenue(1) | 4.1 | 10.2 | 149 | % | 10.2 | 149 | % | ||||||||||||||||||||||
Non-GAAP revenue | $ | 113.8 | $ | 119.0 | 5 | % | $ | 123.0 | 8 | % | |||||||||||||||||||
(1)Acquisition-related revenue constitutes revenue reflected as pre-acquisition deferred revenue that would otherwise have been recognized but for the purchase accounting treatment of acquisitions. Since GAAP accounting requires the elimination of this revenue, GAAP results alone do not fully capture all of our economic activities. Acquisition-related revenue adjustments relate to Progress; Application Development and Deployment business segment for Chef and Progress' OpenEdge business segment for Ipswitch. |
Q1 2021 Non-GAAP Earnings per Share Guidance | |||||||||||
Three Months Ending February 28, 2021 | |||||||||||
Low | High | ||||||||||
GAAP diluted earnings per share | $ | 0.21 | $ | 0.25 | |||||||
Acquisition-related revenue | 0.23 | 0.23 | |||||||||
Stock-based compensation | 0.15 | 0.15 | |||||||||
Amortization of intangibles | 0.23 | 0.23 | |||||||||
Restructuring expense | 0.03 | 0.03 | |||||||||
Total adjustments | 0.64 | 0.64 | |||||||||
Income tax adjustment | (0.13) | (0.13) | |||||||||
Non-GAAP diluted earnings per share | $ | 0.72 | $ | 0.76 |