Exhibit 99.1 |
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 | % |
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 | % |
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 |
Investor Contact: | Press Contact: | |||||||
Michael Micciche | Erica McShane | |||||||
Progress Software | Progress Software | |||||||
+1 781 850 8450 | +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, 2021 | November 30, 2020 | % Change | November 30, 2021 | November 30, 2020 | % Change | |||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Software licenses | $ | 41,236 | $ | 37,443 | 10 | % | $ | 156,590 | $ | 115,249 | 36 | % | |||||||||||||||||||||||
Maintenance and services | 98,892 | 84,942 | 16 | % | 374,723 | 326,901 | 15 | % | |||||||||||||||||||||||||||
Total revenue | 140,128 | 122,385 | 14 | % | 531,313 | 442,150 | 20 | % | |||||||||||||||||||||||||||
Costs of revenue: | |||||||||||||||||||||||||||||||||||
Cost of software licenses | 1,508 | 1,171 | 29 | % | 5,271 | 4,473 | 18 | % | |||||||||||||||||||||||||||
Cost of maintenance and services | 15,355 | 14,137 | 9 | % | 58,242 | 49,744 | 17 | % | |||||||||||||||||||||||||||
Amortization of acquired intangibles | 4,217 | 2,923 | 44 | % | 14,936 | 7,897 | 89 | % | |||||||||||||||||||||||||||
Total costs of revenue | 21,080 | 18,231 | 16 | % | 78,449 | 62,114 | 26 | % | |||||||||||||||||||||||||||
Gross profit | 119,048 | 104,154 | 14 | % | 452,864 | 380,036 | 19 | % | |||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Sales and marketing | 37,422 | 32,013 | 17 | % | 125,890 | 100,113 | 26 | % | |||||||||||||||||||||||||||
Product development | 26,759 | 24,482 | 9 | % | 103,338 | 88,599 | 17 | % | |||||||||||||||||||||||||||
General and administrative | 18,793 | 15,302 | 23 | % | 65,128 | 54,004 | 21 | % | |||||||||||||||||||||||||||
Amortization of acquired intangibles | 9,160 | 7,565 | 21 | % | 31,996 | 20,049 | 60 | % | |||||||||||||||||||||||||||
Restructuring expenses | 5,175 | 4,080 | 27 | % | 6,308 | 5,906 | 7 | % | |||||||||||||||||||||||||||
Acquisition-related expenses | 1,381 | 2,198 | (37) | % | 4,102 | 3,637 | 13 | % | |||||||||||||||||||||||||||
Total operating expenses | 98,690 | 85,640 | 15 | % | 336,762 | 272,308 | 24 | % | |||||||||||||||||||||||||||
Income from operations | 20,358 | 18,514 | 10 | % | 116,102 | 107,728 | 8 | % | |||||||||||||||||||||||||||
Other expense, net | (6,159) | (1,887) | (226) | % | (20,568) | (11,093) | (85) | % | |||||||||||||||||||||||||||
Income before income taxes | 14,199 | 16,627 | (15) | % | 95,534 | 96,635 | (1) | % | |||||||||||||||||||||||||||
(Benefit) provision for income taxes | (727) | (1,034) | (30) | % | 17,114 | 16,913 | 1 | % | |||||||||||||||||||||||||||
Net income | $ | 14,926 | $ | 17,661 | (15) | % | $ | 78,420 | $ | 79,722 | (2) | % | |||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.34 | $ | 0.39 | (13) | % | $ | 1.79 | $ | 1.78 | 1 | % | |||||||||||||||||||||||
Diluted | $ | 0.33 | $ | 0.39 | (15) | % | $ | 1.76 | $ | 1.76 | — | % | |||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||||
Basic | 43,974 | 44,723 | (2) | % | 43,916 | 44,886 | (2) | % | |||||||||||||||||||||||||||
Diluted | 44,853 | 45,140 | (1) | % | 44,620 | 45,321 | (2) | % | |||||||||||||||||||||||||||
Cash dividends declared per common share | $ | 0.175 | $ | 0.175 | — | % | $ | 0.700 | $ | 0.670 | 4 | % |
Stock-based compensation is included in the condensed consolidated statements of operations, as follows: | |||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 327 | $ | 357 | (8) | % | $ | 1,561 | $ | 1,336 | 17 | % | |||||||||||||||||||||||
Sales and marketing | 1,376 | 1,267 | 9 | % | 6,055 | 4,462 | 36 | % | |||||||||||||||||||||||||||
Product development | 1,925 | 1,768 | 9 | % | 8,104 | 7,286 | 11 | % | |||||||||||||||||||||||||||
General and administrative | 4,111 | 2,731 | 51 | % | 14,004 | 10,398 | 35 | % | |||||||||||||||||||||||||||
Total | $ | 7,739 | $ | 6,123 | 26 | % | $ | 29,724 | $ | 23,482 | 27 | % |
(In thousands) | November 30, 2021 | November 30, 2020 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash, cash equivalents and short-term investments | $ | 157,373 | $ | 105,995 | |||||||
Accounts receivable, net | 99,815 | 84,040 | |||||||||
Unbilled receivables and contract assets | 25,816 | 24,917 | |||||||||
Other current assets | 39,549 | 23,983 | |||||||||
Assets held for sale | 15,255 | — | |||||||||
Total current assets | 337,808 | 238,935 | |||||||||
Property and equipment, net | 14,345 | 29,817 | |||||||||
Goodwill and intangible assets, net | 958,337 | 704,473 | |||||||||
Right-of-use lease assets | 25,253 | 30,635 | |||||||||
Long-term unbilled receivables and contract assets | 17,464 | 17,133 | |||||||||
Other assets | 10,330 | 20,789 | |||||||||
Total assets | $ | 1,363,537 | $ | 1,041,782 | |||||||
Liabilities and shareholders' equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and other current liabilities | $ | 84,215 | $ | 70,899 | |||||||
Current portion of long-term debt, net | 25,767 | 18,242 | |||||||||
Short-term operating lease liabilities | 7,926 | 7,015 | |||||||||
Short-term deferred revenue | 205,021 | 166,387 | |||||||||
Total current liabilities | 322,929 | 262,543 | |||||||||
Long-term debt, net | 239,992 | 364,260 | |||||||||
Long-term operating lease liabilities | 23,130 | 26,966 | |||||||||
Long-term deferred revenue | 47,359 | 26,908 | |||||||||
Convertible senior notes, net | 294,535 | — | |||||||||
Other long-term liabilities | 23,103 | 15,092 | |||||||||
Shareholders' equity: | |||||||||||
Common stock and additional paid-in capital | 354,676 | 306,244 | |||||||||
Retained earnings | 57,813 | 39,769 | |||||||||
Total shareholders' equity | 412,489 | 346,013 | |||||||||
Total liabilities and shareholders' equity | $ | 1,363,537 | $ | 1,041,782 |
Three Months Ended | Fiscal Year Ended | ||||||||||||||||||||||
(In thousands) | November 30, 2021 | November 30, 2020 | November 30, 2021 | November 30, 2020 | |||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 14,926 | $ | 17,661 | $ | 78,420 | $ | 79,722 | |||||||||||||||
Depreciation and amortization | 18,105 | 12,044 | 61,179 | 34,765 | |||||||||||||||||||
Stock-based compensation | 7,739 | 6,123 | 29,724 | 23,482 | |||||||||||||||||||
Other non-cash adjustments | 5,631 | (2,024) | 9,763 | 6,287 | |||||||||||||||||||
Changes in operating assets and liabilities | (2,473) | 8,958 | (556) | 591 | |||||||||||||||||||
Net cash flows from operating activities | 43,928 | 42,762 | 178,530 | 144,847 | |||||||||||||||||||
Capital expenditures | (1,913) | (3,098) | (4,654) | (6,517) | |||||||||||||||||||
Issuances of common stock, net of repurchases | 5,786 | (37,927) | (19,967) | (48,901) | |||||||||||||||||||
Dividend payments to shareholders | (8,189) | (7,542) | (31,561) | (29,900) | |||||||||||||||||||
Payments for acquisitions, net of cash acquired | (253,961) | (213,057) | (253,961) | (213,057) | |||||||||||||||||||
Proceeds from the issuance of debt, net of payment of issuance costs | — | 98,500 | — | 98,500 | |||||||||||||||||||
Payments of principal on long-term debt | (5,644) | (3,763) | (117,313) | (11,288) | |||||||||||||||||||
Proceeds from issuance of Notes, net of issuance costs | — | — | 349,196 | — | |||||||||||||||||||
Purchase of capped calls | — | — | (43,056) | — | |||||||||||||||||||
Proceeds from sale of long-lived assets, net | — | 889 | — | 889 | |||||||||||||||||||
Other | (6,311) | (888) | (5,836) | (2,263) | |||||||||||||||||||
Net change in cash, cash equivalents and short-term investments | (226,304) | (124,124) | 51,378 | (67,690) | |||||||||||||||||||
Cash, cash equivalents and short-term investments, beginning of period | 383,677 | 230,119 | 105,995 | 173,685 | |||||||||||||||||||
Cash, cash equivalents and short-term investments, end of period | $ | 157,373 | $ | 105,995 | $ | 157,373 | $ | 105,995 |
Three Months Ended | % Change | ||||||||||||||||||||||||||||
(In thousands, except per share data) | November 30, 2021 | November 30, 2020 | Non-GAAP | ||||||||||||||||||||||||||
Adjusted revenue: | |||||||||||||||||||||||||||||
GAAP revenue | $ | 140,128 | $ | 122,385 | |||||||||||||||||||||||||
Acquisition-related revenue(1) | 3,597 | 6,678 | |||||||||||||||||||||||||||
Non-GAAP revenue | $ | 143,725 | 100 | % | $ | 129,063 | 100 | % | 11 | % | |||||||||||||||||||
Adjusted income from operations: | |||||||||||||||||||||||||||||
GAAP income from operations | $ | 20,358 | 15 | % | $ | 18,514 | 15 | % | |||||||||||||||||||||
Amortization of acquired intangibles | 13,377 | 9 | % | 10,488 | 8 | % | |||||||||||||||||||||||
Stock-based compensation | 7,739 | 5 | % | 6,123 | 4 | % | |||||||||||||||||||||||
Restructuring expenses and other | 5,175 | 4 | % | 4,080 | 3 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 4,978 | 3 | % | 8,876 | 7 | % | |||||||||||||||||||||||
Non-GAAP income from operations | $ | 51,627 | 36 | % | $ | 48,081 | 37 | % | 7 | % | |||||||||||||||||||
Adjusted net income: | |||||||||||||||||||||||||||||
GAAP net income | $ | 14,926 | 11 | % | $ | 17,661 | 14 | % | |||||||||||||||||||||
Amortization of acquired intangibles | 13,377 | 9 | % | 10,488 | 8 | % | |||||||||||||||||||||||
Stock-based compensation | 7,739 | 5 | % | 6,123 | 5 | % | |||||||||||||||||||||||
Restructuring expenses and other | 5,175 | 4 | % | 4,080 | 3 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 4,978 | 3 | % | 8,876 | 7 | % | |||||||||||||||||||||||
Amortization of discount on Notes | 2,861 | 2 | % | — | — | % | |||||||||||||||||||||||
Provision for income taxes | (7,764) | (5) | % | (6,110) | (5) | % | |||||||||||||||||||||||
Non-GAAP net income | $ | 41,292 | 29 | % | $ | 41,118 | 32 | % | — | % | |||||||||||||||||||
Adjusted diluted earnings per share: | |||||||||||||||||||||||||||||
GAAP diluted earnings per share | $ | 0.33 | $ | 0.39 | |||||||||||||||||||||||||
Amortization of acquired intangibles | 0.30 | 0.23 | |||||||||||||||||||||||||||
Stock-based compensation | 0.17 | 0.14 | |||||||||||||||||||||||||||
Restructuring expenses and other | 0.12 | 0.09 | |||||||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 0.11 | 0.20 | |||||||||||||||||||||||||||
Amortization for discount on Notes | 0.06 | — | |||||||||||||||||||||||||||
Provision for income taxes | (0.17) | (0.14) | |||||||||||||||||||||||||||
Non-GAAP diluted earnings per share | $ | 0.92 | $ | 0.91 | 1 | % | |||||||||||||||||||||||
Non-GAAP weighted avg shares outstanding - diluted | 44,853 | 45,140 | (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. |
Fiscal Year Ended | % Change | ||||||||||||||||||||||||||||
(In thousands, except per share data) | November 30, 2021 | November 30, 2020 | Non-GAAP | ||||||||||||||||||||||||||
Adjusted revenue: | |||||||||||||||||||||||||||||
GAAP revenue | $ | 531,313 | $ | 442,150 | |||||||||||||||||||||||||
Acquisition-related revenue(1) | 25,991 | 14,062 | |||||||||||||||||||||||||||
Non-GAAP revenue | $ | 557,304 | 100 | % | $ | 456,212 | 100 | % | 22 | % | |||||||||||||||||||
Adjusted income from operations: | |||||||||||||||||||||||||||||
GAAP income from operations | $ | 116,102 | 22 | % | $ | 107,728 | 24 | % | |||||||||||||||||||||
Amortization of acquired intangibles | 46,932 | 8 | % | 27,946 | 6 | % | |||||||||||||||||||||||
Stock-based compensation | 29,724 | 5 | % | 23,482 | 5 | % | |||||||||||||||||||||||
Restructuring expenses and other | 6,308 | 1 | % | 5,906 | 1 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 30,093 | 5 | % | 17,699 | 4 | % | |||||||||||||||||||||||
Non-GAAP income from operations | $ | 229,159 | 41 | % | $ | 182,761 | 40 | % | 25 | % | |||||||||||||||||||
Adjusted net income: | |||||||||||||||||||||||||||||
GAAP net income | $ | 78,420 | 15 | % | $ | 79,722 | 18 | % | |||||||||||||||||||||
Amortization of acquired intangibles | 46,932 | 8 | % | 27,946 | 6 | % | |||||||||||||||||||||||
Stock-based compensation | 29,724 | 6 | % | 23,482 | 5 | % | |||||||||||||||||||||||
Restructuring expenses and other | 6,308 | 1 | % | 5,906 | 1 | % | |||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 30,093 | 5 | % | 17,699 | 4 | % | |||||||||||||||||||||||
Amortization of discount on Notes | 7,209 | 1 | % | — | — | % | |||||||||||||||||||||||
Provision for income taxes | (25,800) | (5) | % | (14,673) | (3) | % | |||||||||||||||||||||||
Non-GAAP net income | $ | 172,886 | 31 | % | $ | 140,082 | 31 | % | 23 | % | |||||||||||||||||||
Adjusted diluted earnings per share: | |||||||||||||||||||||||||||||
GAAP diluted earnings per share | $ | 1.76 | $ | 1.76 | |||||||||||||||||||||||||
Amortization of acquired intangibles | 1.05 | 0.62 | |||||||||||||||||||||||||||
Stock-based compensation | 0.67 | 0.51 | |||||||||||||||||||||||||||
Restructuring expenses and other | 0.14 | 0.13 | |||||||||||||||||||||||||||
Acquisition-related revenue(1) and expenses | 0.67 | 0.39 | |||||||||||||||||||||||||||
Amortization of discount on Notes | 0.16 | — | |||||||||||||||||||||||||||
Provision for income taxes | (0.58) | (0.32) | |||||||||||||||||||||||||||
Non-GAAP diluted earnings per share | $ | 3.87 | $ | 3.09 | 25 | % | |||||||||||||||||||||||
Non-GAAP weighted avg shares outstanding - diluted | 44,620 | 45,321 | (2) | % | |||||||||||||||||||||||||
(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. |
Quarter to Date Adjusted Free Cash Flow | |||||||||||||||||
(In thousands) | Q4 2021 | Q4 2020 | % Change | ||||||||||||||
Cash flows from operations | $ | 43,928 | $ | 42,762 | 3 | % | |||||||||||
Purchases of property and equipment | (1,913) | (3,098) | (38) | % | |||||||||||||
Free cash flow | 42,015 | 39,664 | 6 | % | |||||||||||||
Add back: restructuring payments | 432 | 992 | (56) | % | |||||||||||||
Adjusted free cash flow | $ | 42,447 | $ | 40,656 | 4 | % |
Year to Date Adjusted Free Cash Flow | |||||||||||||||||
(In thousands) | FY 2021 | FY 2020 | % Change | ||||||||||||||
Cash flows from operations | $ | 178,530 | $ | 144,847 | 23 | % | |||||||||||
Purchases of property and equipment | (4,654) | (6,517) | (29) | % | |||||||||||||
Free cash flow | 173,876 | 138,330 | 26 | % | |||||||||||||
Add back: restructuring payments | 5,519 | 4,123 | 34 | % | |||||||||||||
Adjusted free cash flow | $ | 179,395 | $ | 142,453 | 26 | % |
Fiscal Year 2022 Revenue Guidance | |||||||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ending | ||||||||||||||||||||||||||||
November 30, 2021 | November 30, 2022 | ||||||||||||||||||||||||||||
(In millions) | Low | % Change | High | % Change | |||||||||||||||||||||||||
GAAP revenue | $ | 531.3 | $ | 596.5 | 12 | % | $ | 606.5 | 14 | % | |||||||||||||||||||
Acquisition-related adjustments - revenue(1) | 26.0 | 8.5 | (67) | % | 8.5 | (67) | % | ||||||||||||||||||||||
Non-GAAP revenue | $ | 557.3 | $ | 605.0 | 9 | % | $ | 615.0 | 10 | % | |||||||||||||||||||
(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 Ipswitch and Chef. |
Fiscal Year 2022 Non-GAAP Operating Margin Guidance | |||||||||||
Fiscal Year Ending November 30, 2022 | |||||||||||
(In millions) | Low | High | |||||||||
GAAP income from operations | $ | 125.0 | $ | 130.0 | |||||||
GAAP operating margin | 21 | % | 21 | % | |||||||
Acquisition-related revenue | 8.5 | 8.5 | |||||||||
Restructuring expense | 1.2 | 1.2 | |||||||||
Stock-based compensation | 33.0 | 33.0 | |||||||||
Acquisition-related expenses | 0.8 | 0.8 | |||||||||
Amortization of intangibles | 69.3 | 69.3 | |||||||||
Total adjustments | 112.8 | 112.8 | |||||||||
Non-GAAP income from operations | $ | 237.8 | $ | 242.8 | |||||||
Non-GAAP operating margin | 39 | % | 39 | % |
Fiscal Year 2022 Non-GAAP Earnings per Share and Effective Tax Rate Guidance | |||||||||||
Fiscal Year Ending November 30, 2022 | |||||||||||
(In millions, except per share data) | Low | High | |||||||||
GAAP net income | $ | 86.1 | $ | 90.6 | |||||||
Adjustments (from previous table) | 112.8 | 112.8 | |||||||||
Income tax adjustment(2) | (22.5) | (22.5) | |||||||||
Non-GAAP net income | $ | 176.4 | $ | 180.9 | |||||||
GAAP diluted earnings per share | $ | 1.93 | $ | 2.03 | |||||||
Non-GAAP diluted earnings per share | $ | 3.95 | $ | 4.05 | |||||||
Diluted weighted average shares outstanding | 44.7 | 44.7 | |||||||||
(2)Tax adjustment is based on a non-GAAP effective tax rate of approximately 21% for Low and 20% for High, calculated as follows: | |||||||||||
Non-GAAP income from operations | $ | 237.8 | $ | 242.8 | |||||||
Other (expense) income | (15.7) | (15.7) | |||||||||
Non-GAAP income from continuing operations before income taxes | 222.1 | 227.1 | |||||||||
Non-GAAP net income | 176.4 | 180.9 | |||||||||
Tax provision | $ | 45.7 | $ | 46.2 | |||||||
Non-GAAP tax rate | 21 | % | 20 | % |
Fiscal Year 2022 Adjusted Free Cash Flow Guidance | |||||||||||
Fiscal Year Ending November 30, 2022 | |||||||||||
(In millions) | Low | High | |||||||||
Cash flows from operations (GAAP) | $ | 188 | $ | 193 | |||||||
Purchases of property and equipment | (6) | (6) | |||||||||
Add back: restructuring payments | 3 | 3 | |||||||||
Adjusted free cash flow (non-GAAP) | $ | 185 | $ | 190 |
Q1 2022 Revenue Guidance | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ending | ||||||||||||||||||||||||||||
February 28, 2021 | February 28, 2022 | ||||||||||||||||||||||||||||
(In millions) | Low | % Change | High | % Change | |||||||||||||||||||||||||
GAAP revenue | $ | 121.3 | $ | 136.4 | 12 | % | $ | 139.4 | 15 | % | |||||||||||||||||||
Acquisition-related adjustments - revenue(1) | 10.5 | 2.6 | (75) | % | 2.6 | (75) | % | ||||||||||||||||||||||
Non-GAAP revenue | $ | 131.8 | $ | 139.0 | 5 | % | $ | 142.0 | 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 Ipswitch and Chef. |
Q1 2022 Non-GAAP Earnings per Share Guidance | |||||||||||
Three Months Ending February 28, 2022 | |||||||||||
Low | High | ||||||||||
GAAP diluted earnings per share | $ | 0.32 | $ | 0.34 | |||||||
Acquisition-related revenue | 0.06 | 0.06 | |||||||||
Acquisition-related expense | 0.01 | 0.01 | |||||||||
Stock-based compensation | 0.17 | 0.17 | |||||||||
Amortization of intangibles | 0.38 | 0.38 | |||||||||
Restructuring expense | 0.02 | 0.02 | |||||||||
Total adjustments | 0.64 | 0.64 | |||||||||
Income tax adjustment | (0.13) | (0.13) | |||||||||
Non-GAAP diluted earnings per share | $ | 0.83 | $ | 0.85 |