Revenue and EPS Exceed Prior Guidance
BURLINGTON, Mass., Sept. 27, 2022 (GLOBE NEWSWIRE) — Progress (Nasdaq: PRGS), the trusted supplier of infrastructure software program, right this moment introduced monetary outcomes for its fiscal third quarter ended August 31, 2022.
Third Quarter 2022 Highlights1:
- Revenue of $151.2 million elevated 3% year-over-year on an precise forex foundation, and 6% on a continuing forex foundation.
- Non-GAAP income of $153.1 million remained flat year-over-year on an precise forex foundation, and elevated 4% on a continuing forex foundation.
- Annualized Recurring Revenue (“ARR”) of $495 million elevated 13% year-over-year on a continuing forex foundation.
- Operating margin was 21% and Non-GAAP working margin was 39%.
- Diluted earnings per share was $0.50 in comparison with $0.70 in the identical quarter final yr, a lower of 29%.
- Non-GAAP diluted earnings per share was $1.00 in comparison with $1.18 in the identical quarter final yr, a lower of 15%.
“We’re very pleased to report excellent quarterly results with revenue and earnings per share both exceeding the high end of our guidance ranges for the third consecutive quarter,” mentioned Yogesh Gupta, CEO at Progress. “Our continued execution is further evident in our quarter ending ARR of $495 million and net dollar retention rates that exceeded 101%. The strength in our results was reflected across virtually all our products and provides a strong, durable base for Progress to continue to pursue our Total Growth Strategy.”
Additional monetary highlights included:
Three Months Ended | |||||||||||||||||||||
GAAP | Non-GAAP1 | ||||||||||||||||||||
(In hundreds, besides percentages and per share quantities) | August 31, 2022 |
August 31, 2021 |
% Change |
August 31, 2022 |
August 31, 2021 |
% Change |
|||||||||||||||
Revenue | $ | 151,217 | $ | 147,417 | 3 | % | $ | 153,060 | $ | 152,597 | — | % | |||||||||
Income from operations | $ | 32,021 | $ | 46,046 | (30) | % | $ | 60,075 | $ | 71,163 | (16) | % | |||||||||
Operating margin | 21 | % | 31 | % | (1000) bps | 39 | % | 47 | % | (800) bps | |||||||||||
Net revenue | $ | 21,797 | $ | 30,976 | (30) | % | $ | 44,090 | $ | 52,577 | (16) | % | |||||||||
Diluted earnings per share | $ | 0.50 | $ | 0.70 | (29) | % | $ | 1.00 | $ | 1.18 | (15) | % | |||||||||
Cash from operations (GAAP) /Adjusted free money circulation (Non-GAAP) | $ | 39,670 | $ | 35,224 | 13 | % | $ | 39,237 | $ | 35,022 | 12 | % |
Other fiscal third quarter 2022 metrics and up to date outcomes included:
- Cash, money equivalents and short-term investments had been $224.9 million on the finish of the quarter.
- Days gross sales excellent was 48 days in comparison with 54 days within the fiscal third quarter of 2021 and 39 days within the fiscal second quarter of 2022.
- On September 23, 2022, our Board of Directors declared a quarterly dividend of $0.175 per share of frequent inventory which will probably be paid on December 15, 2022 to shareholders of report as of the shut of business on December 1, 2022.
Anthony Folger, CFO, mentioned: “For the third consecutive quarter, Progress has delivered results that have exceeded the high end of our guidance ranges. These results were delivered in the face of global economic uncertainty and significant foreign exchange headwinds and demonstrate the incredible strength of our operating platform.”
______________________
1 See Important Information Regarding Non-GAAP Financial Information and a reconciliation of non-GAAP changes to Progress’ GAAP monetary outcomes on the finish of this press launch.
2022 Business Outlook
Progress supplies the next steerage for the fiscal yr ending November 30, 2022 and the fiscal fourth quarter ending November 30, 2022:
Updated FY 2022 Guidance (September 27, 2022) |
Prior FY 2022 Guidance (June 28, 2022) |
|||||||
(In hundreds of thousands, besides percentages and per share quantities) | GAAP | Non-GAAP1 | GAAP | Non-GAAP1 | ||||
Revenue | $601 – 609 | $609 – $617 | $601 – $609 | $609 – $617 | ||||
Diluted earnings per share | $2.12 – $2.20 | $4.08 – $4.12 | $2.11 – $2.21 | $4.05 – $4.11 | ||||
Operating margin | 22% – 23% | 39% – 40% | 22% – 23% | 39% – 40% | ||||
Cash from operations (GAAP) / Adjusted free money circulation (Non-GAAP) |
$188 – $193 | $185 – $190 | $188 – $193 | $185 – $190 | ||||
Effective tax charge | 20% – 21% | 20% – 21% | 21% | 20% – 21% |
This autumn 2022 Guidance | |||
(In hundreds of thousands, besides per share quantities) | GAAP | Non-GAAP1 | |
Revenue | $156 – $164 | $158 – $166 | |
Diluted earnings per share | $0.53 – $0.57 | $1.06 – $1.10 |
Based on present change charges, the anticipated damaging forex translation influence on Progress’ fiscal yr 2022 business outlook in comparison with 2021 change charges is roughly $15.9 million on GAAP and non-GAAP income, and roughly $0.06 on GAAP and non-GAAP diluted earnings per share. The anticipated damaging forex translation influence on Progress’ fiscal This autumn 2022 business outlook in comparison with 2021 change charges on GAAP and non-GAAP income is roughly $5.0 million. The anticipated damaging influence on GAAP and non-GAAP diluted This autumn 2022 earnings per share is $0.02. To the extent that there are adjustments in change charges versus the present atmosphere, this will likely have an effect on Progress’ business outlook.
Conference Call
Progress will maintain a convention name to assessment its monetary outcomes for the fiscal third quarter of 2022 at 5:00 p.m. ET on Tuesday, September 27, 2022. The name could be accessed on the investor relations part of the corporate’s web site, situated at www.progress.com. Additionally, you may take heed to the decision by phone by dialing 866-374-5140 or +1 404-400-0571, passcode 824-86-411#. The convention name will embrace feedback adopted by questions and solutions. An archived model of the convention name and supporting supplies will probably be out there on the Progress web site inside the investor relations part after the stay convention name.
Important Information Regarding Non-GAAP Financial Information
Progress furnishes sure non-GAAP supplemental info to its monetary outcomes. We use such non-GAAP monetary measures to judge our period-over-period working efficiency as a result of our administration believes that by excluding the results of sure gadgets that don’t mirror the extraordinary earnings of our operations, such info helps illustrate underlying traits in our business and supplies us with a extra comparable measure of our persevering with business, in addition to higher understanding of the outcomes from the first operations of our business. Management additionally makes use of such non-GAAP monetary measures to ascertain budgets and operational targets (that are communicated internally and externally), consider efficiency, and allocate assets. In addition, the compensation of our executives and non-executive workers relies partly on the efficiency of our business as evaluated by such non-GAAP monetary measures. We consider these non-GAAP monetary measures improve buyers’ total understanding of our present monetary efficiency and our prospects for the long run by: (i) offering extra transparency for sure monetary measures, (ii) presenting disclosure that helps buyers perceive how we plan and measure our business, (iii) affords a view of our working outcomes that could be extra simply in comparison with our peer firms, and (iv) permits buyers to contemplate our working outcomes on each a GAAP and non-GAAP foundation throughout and following the combination interval of our acquisitions.
In the famous fiscal durations, we adjusted for the next gadgets from our GAAP monetary outcomes to reach at our non-GAAP monetary measures:
- Acquisition-related income – We embrace acquisition-related income, which constitutes income mirrored as pre-acquisition deferred income associated to Chef Software, Inc. and Ipswitch, Inc that will in any other case have been acknowledged however for the acquisition accounting therapy of acquisitions. We consider these changes are helpful to buyers as a measure of the continuing efficiency of the business as a result of, though we can’t be sure that clients will renew their contracts, we have now traditionally skilled excessive renewal charges on upkeep and help agreements and different buyer contracts.
- Amortization of acquired intangibles – We exclude amortization of acquired intangibles as a result of these bills are unrelated to our core working efficiency and the intangible belongings acquired differ considerably primarily based on the timing and magnitude of our acquisition transactions and the maturities of the companies acquired. Adjustments embrace preliminary estimates regarding the valuation of intangible belongings acquired from Kemp. The last quantities is not going to be out there till the Company’s inside procedures and evaluations are accomplished.
- Stock-based compensation – We exclude stock-based compensation to be in keeping with the way in which administration and the monetary neighborhood evaluates our efficiency and the strategies utilized by analysts to calculate consensus estimates. The expense associated to stock-based awards is mostly not controllable within the short-term and might differ considerably primarily based on the timing, measurement and nature of awards granted. As such, we don’t embrace these expenses in working plans.
- Restructuring bills – In all durations introduced, we exclude restructuring bills incurred as a result of these bills distort traits and aren’t a part of our core working outcomes. Adjustments embrace preliminary estimates regarding restructuring bills from Kemp. The last quantities is not going to be out there till the Company’s inside procedures and evaluations are accomplished.
- Acquisition-related and transition bills – We exclude acquisition-related bills with a purpose to present a extra significant comparability of the monetary outcomes to our historic operations and forward-looking steerage and the monetary outcomes of much less acquisitive peer firms. We think about these kind of prices and changes, to an incredible extent, to be unpredictable and depending on a major variety of elements which might be exterior of our management. Furthermore, we don’t think about these acquisition-related prices and changes to be associated to the natural persevering with operations of the acquired companies and are usually not related to assessing or estimating the long-term efficiency of the acquired belongings. In addition, the scale, complexity and/or quantity of previous acquisitions, which regularly drives the magnitude of acquisition-related prices, might not be indicative of the scale, complexity and/or quantity of future acquisitions.
- Amortization of the low cost on our convertible senior notes – In April 2021, in a non-public providing, we issued 1.0% Convertible Senior Notes with an combination principal quantity of $360 million, together with the over allotment, due April 15, 2026, until earlier repurchased, redeemed or transformed (the “Notes”). We exclude the portion of amortization of debt low cost that pertains to the fairness element of the Notes as they’re non-cash and haven’t any direct correlation to the operations of our business. Upon adoption of ASU 2020-06 on December 1, 2021, the Company reversed the separation of the debt and fairness parts and accounted for the Notes wholly as debt.
- Gain on sale of belongings held on the market – We exclude the achieve related to the sale of our Bedford, Massachusetts headquarters throughout fiscal yr 2022. We don’t consider such positive factors are a part of our core working outcomes as a result of they’re inconsistent in quantity and frequency and subsequently could distort working traits.
- Income tax adjustment – We modify our revenue tax provision by excluding the tax influence of the non-GAAP changes mentioned above.
Constant Currency – Revenue from our worldwide operations has traditionally represented a considerable portion of our complete income. As a end result, our income outcomes have been impacted, and we count on will proceed to be impacted, by fluctuations in international forex change charges.
- As change charges are an vital consider understanding interval to interval comparisons, we current income development charges on a continuing forex foundation, which helps enhance the understanding of our income outcomes and our efficiency compared to prior durations. The fixed forex info introduced is calculated by translating present interval outcomes utilizing prior interval weighted common international forex change charges. These outcomes ought to be thought-about along with, not as an alternative to, outcomes reported in accordance with GAAP.
Annual Recurring Revenue (“ARR”) – We present an ARR efficiency metric to assist buyers higher perceive and assess the efficiency of our business as a result of our mixture of income generated from recurring sources has elevated in recent times. ARR represents the annualized contract worth for all energetic and contractually binding term-based contracts on the finish of a interval. ARR consists of upkeep, software program improve rights, public cloud and on-premises subscription-based transactions and managed companies.
- ARR doesn’t have any standardized that means and is subsequently unlikely to be similar to equally titled measures introduced by different firms. ARR ought to be seen independently of income and deferred income and isn’t supposed to be mixed with or to exchange both of these gadgets. ARR will not be a forecast and the energetic contracts on the finish of a reporting interval utilized in calculating ARR could or might not be prolonged or renewed by our clients.
We additionally present steerage on adjusted free money circulation, which is the same as money flows from working actions much less purchases of property and tools, plus restructuring funds.
However, this non-GAAP info will not be in accordance with, or an alternative choice to, usually accepted accounting rules within the United States (“GAAP”) and ought to be thought-about along with our GAAP outcomes because the gadgets excluded from the non-GAAP info typically have a fabric influence on Progress’ monetary outcomes. A reconciliation of non-GAAP changes to Progress’ GAAP monetary outcomes is included within the tables on the finish of this press launch and is on the market on the Progress web site at www.progress.com inside the investor relations part.
Note Regarding Forward-Looking Statements
This press launch comprises statements which might be “forward-looking statements” inside the that means 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 recognized a few of these forward-looking statements with phrases like “believe,” “may,” “could,” “would,” “might,” “should,” “expect,” “intend,” “plan,” “target,” “anticipate” and “continue,” the damaging of those phrases, different phrases of comparable that means or using future dates.
Forward-looking statements on this press launch embrace, however aren’t restricted to, statements relating to Progress’ business outlook, Total Growth Strategy, and monetary steerage. There are a variety of elements that might trigger precise outcomes or future occasions to vary materially from these anticipated by the forward-looking statements, together with, with out limitation: (i) financial, geopolitical and market situations can adversely have an effect on our business, outcomes of operations and monetary situation, together with our income development and profitability, which in flip may adversely have an effect on our inventory worth; (ii) our worldwide gross sales and operations topic us to extra dangers that may adversely have an effect on our working outcomes, together with dangers regarding international forex positive factors and losses; (iii) we could fail to attain our monetary forecasts because of such elements as delays or measurement reductions in transactions, fewer massive transactions in a specific quarter, fluctuations in forex change charges, or a decline in our renewal charges for contracts; (iv) if the safety measures for our software program, companies, different choices or our inside info expertise infrastructure are compromised or topic to a profitable cyber-attack, or if our software program choices comprise vital coding or configuration errors, we could expertise reputational hurt, authorized claims and monetary publicity; (v) delay or failure to understand the anticipated synergies and advantages of the Kemp acquisition may negatively influence our future outcomes of operations and monetary situation; and (vi) optimization initiatives could disrupt our operations and we could not obtain the anticipated advantages from our efforts. For additional info relating to dangers and uncertainties related to Progress’ business, please check with Progress’ filings with the Securities and Exchange Commission, together with its Annual Report on Form 10-Ok for the fiscal yr ended November 30, 2021. Progress undertakes no obligation to replace any forward-looking statements, which converse solely as of the date of this press launch.
About Progress
Dedicated to propelling business ahead in a technology-driven world, Progress (Nasdaq: PRGS) helps companies drive sooner cycles of innovation, gas momentum and speed up their path to success. As the trusted supplier of one of the best merchandise to develop, deploy and handle high-impact functions, Progress permits clients to develop the functions and experiences they want, deploy the place and the way they need and handle all of it safely and securely. Hundreds of hundreds of enterprises, together with 1,700 software program firms and three.5 million builders, rely upon Progress to attain their targets—with confidence. Learn extra at www.progress.com.
Progress and Progress Software are emblems or registered emblems of Progress Software Corporation and/or its subsidiaries or associates within the U.S. and different nations. Any different names contained herein could also be emblems of their respective house owners.
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 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(In hundreds, besides per share knowledge) | August 31, 2022 |
August 31, 2021 |
% Change |
August 31, 2022 |
August 31, 2021 |
% Change |
|||||||||||||||
Revenue: | |||||||||||||||||||||
Software licenses | $ | 47,618 | $ | 51,930 | (8) | % | $ | 135,182 | $ | 115,354 | 17 | % | |||||||||
Maintenance and companies | 103,599 | 95,487 | 8 | % | 309,704 | 275,831 | 12 | % | |||||||||||||
Total income | 151,217 | 147,417 | 3 | % | 444,886 | 391,185 | 14 | % | |||||||||||||
Costs of income: | |||||||||||||||||||||
Cost of software program licenses | 2,477 | 1,574 | 57 | % | 7,669 | 3,763 | 104 | % | |||||||||||||
Cost of upkeep and companies | 15,761 | 14,895 | 6 | % | 46,707 | 42,887 | 9 | % | |||||||||||||
Amortization of acquired intangibles | 5,558 | 3,599 | 54 | % | 16,589 | 10,719 | 55 | % | |||||||||||||
Total prices of income | 23,796 | 20,068 | 19 | % | 70,965 | 57,369 | 24 | % | |||||||||||||
Gross revenue | 127,421 | 127,349 | — | % | 373,921 | 333,816 | 12 | % | |||||||||||||
Operating bills: | |||||||||||||||||||||
Sales and advertising | 34,595 | 29,737 | 16 | % | 100,768 | 88,468 | 14 | % | |||||||||||||
Product improvement | 28,650 | 25,616 | 12 | % | 85,966 | 76,579 | 12 | % | |||||||||||||
General and administrative | 20,141 | 16,451 | 22 | % | 56,339 | 46,335 | 22 | % | |||||||||||||
Amortization of acquired intangibles | 11,716 | 7,978 | 47 | % | 35,330 | 22,836 | 55 | % | |||||||||||||
Restructuring bills | 130 | 40 | 225 | % | 784 | 1,133 | (31) | % | |||||||||||||
Acquisition-related bills | 168 | 1,481 | (89) | % | 3,816 | 2,721 | 40 | % | |||||||||||||
Gain on sale of belongings held on the market | — | — | * | (10,770 | ) | — | * | ||||||||||||||
Total working bills | 95,400 | 81,303 | 17 | % | 272,233 | 238,072 | 14 | % | |||||||||||||
Income from operations | 32,021 | 46,046 | (30) | % | 101,688 | 95,744 | 6 | % | |||||||||||||
Other expense, internet | (4,339 | ) | (6,539 | ) | 34 | % | (11,209 | ) | (14,409 | ) | 22 | % | |||||||||
Income earlier than revenue taxes | 27,682 | 39,507 | (30) | % | 90,479 | 81,335 | 11 | % | |||||||||||||
Provision for revenue taxes | 5,885 | 8,531 | (31) | % | 19,118 | 17,841 | 7 | % | |||||||||||||
Net revenue | $ | 21,797 | $ | 30,976 | (30) | % | $ | 71,361 | $ | 63,494 | 12 | % | |||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.50 | $ | 0.71 | (30) | % | $ | 1.64 | $ | 1.45 | 13 | % | |||||||||
Diluted | $ | 0.50 | $ | 0.70 | (29) | % | $ | 1.61 | $ | 1.43 | 13 | % | |||||||||
Weighted common shares excellent: | |||||||||||||||||||||
Basic | 43,211 | 43,762 | (1) | % | 43,589 | 43,896 | (1) | % | |||||||||||||
Diluted | 43,935 | 44,502 | (1) | % | 44,299 | 44,542 | (1) | % | |||||||||||||
Cash dividends declared per frequent share | $ | 0.175 | $ | 0.175 | — | % | $ | 0.525 | $ | 0.525 | — | % |
Stock-based compensation is included within the condensed consolidated statements of operations, as follows: | |||||||||||||||||||||
Cost of income | $ | 527 | $ | 374 | 41 | % | $ | 1,410 | $ | 1,234 | 14 | % | |||||||||
Sales and advertising | 1,331 | 1,424 | (7) | % | 3,423 | 4,679 | (27) | % | |||||||||||||
Product improvement | 2,586 | 1,848 | 40 | % | 7,548 | 6,179 | 22 | % | |||||||||||||
General and administrative | 4,195 | 3,193 | 31 | % | 13,729 | 9,893 | 39 | % | |||||||||||||
Total | $ | 8,639 | $ | 6,839 | 26 | % | $ | 26,110 | $ | 21,985 | 19 | % |
*not significant
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In hundreds) | August 31, 2022 | November 30, 2021 | |||
Assets | |||||
Current belongings: | |||||
Cash, money equivalents and short-term investments | $ | 224,864 | $ | 157,373 | |
Accounts receivable, internet | 82,258 | 99,815 | |||
Unbilled receivables and contract belongings | 27,847 | 25,816 | |||
Other present belongings | 29,465 | 39,549 | |||
Assets held on the market | — | 15,255 | |||
Total present belongings | 364,434 | 337,808 | |||
Property and tools, internet | 13,409 | 14,345 | |||
Goodwill and intangible belongings, internet | 906,337 | 958,337 | |||
Right-of-use lease belongings | 18,950 | 25,253 | |||
Long-term unbilled receivables and contract belongings | 25,972 | 17,464 | |||
Other belongings | 17,190 | 10,330 | |||
Total belongings | $ | 1,346,292 | $ | 1,363,537 | |
Liabilities and shareholders’ fairness | |||||
Current liabilities: | |||||
Accounts payable and different present liabilities | $ | 68,581 | $ | 84,215 | |
Current portion of long-term debt, internet | 6,234 | 25,767 | |||
Short-term working lease liabilities | 7,443 | 7,926 | |||
Short-term deferred income | 197,425 | 205,021 | |||
Total present liabilities | 279,683 | 322,929 | |||
Long-term debt, internet | 260,779 | 239,992 | |||
Convertible senior notes, internet | 352,108 | 294,535 | |||
Long-term working lease liabilities | 16,662 | 23,130 | |||
Long-term deferred income | 53,696 | 47,359 | |||
Other long-term liabilities | 16,391 | 23,103 | |||
Shareholders’ fairness: | |||||
Common inventory and extra paid-in capital | 318,989 | 354,676 | |||
Retained earnings | 47,984 | 57,813 | |||
Total shareholders’ fairness | 366,973 | 412,489 | |||
Total liabilities and shareholders’ fairness | $ | 1,346,292 | $ | 1,363,537 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
(In hundreds) | August 31, 2022 |
August 31, 2021 |
August 31, 2022 |
August 31, 2021 |
|||||||||||
Cash flows from working actions: | |||||||||||||||
Net revenue | $ | 21,797 | $ | 30,976 | $ | 71,361 | $ | 63,494 | |||||||
Depreciation and amortization | 19,219 | 16,383 | 57,816 | 43,074 | |||||||||||
Gain on sale of belongings held on the market | — | — | (10,770 | ) | — | ||||||||||
Stock-based compensation | 8,639 | 6,839 | 26,110 | 21,985 | |||||||||||
Other non-cash changes | 234 | 1,009 | 6,349 | 4,132 | |||||||||||
Changes in working belongings and liabilities | (10,219 | ) | (19,983 | ) | 1,157 | 1,917 | |||||||||
Net money flows from working actions | 39,670 | 35,224 | 152,023 | 134,602 | |||||||||||
Capital expenditures | (1,107 | ) | (625 | ) | (3,086 | ) | (2,741 | ) | |||||||
Repurchases of frequent inventory, internet of issuances | (21,438 | ) | 2,947 | (65,140 | ) | (25,753 | ) | ||||||||
Dividend funds to shareholders | (7,778 | ) | (7,755 | ) | (23,351 | ) | (23,372 | ) | |||||||
Proceeds from the issuance of debt, internet of fee of issuance prices | — | — | 5,517 | — | |||||||||||
Payments of principal on long-term debt | (1,719 | ) | (5,644 | ) | (5,154 | ) | (111,669 | ) | |||||||
Proceeds from issuance of Notes, internet of issuance prices | — | — | — | 349,196 | |||||||||||
Purchase of capped calls | — | — | — | (43,056 | ) | ||||||||||
Other | (8,677 | ) | (3,130 | ) | 6,682 | 475 | |||||||||
Net change in money, money equivalents and short-term investments | (1,049 | ) | 21,017 | 67,491 | 277,682 | ||||||||||
Cash, money equivalents and short-term investments, starting of interval | 225,913 | 362,660 | 157,373 | 105,995 | |||||||||||
Cash, money equivalents and short-term investments, finish of interval | $ | 224,864 | $ | 383,677 | $ | 224,864 | $ | 383,677 |
RECONCILIATIONS OF GAAP TO NON-GAAP SELECTED FINANCIAL MEASURES – THIRD QUARTER1
(Unaudited)
Three Months Ended | % Change | |||||||||||||||
(In hundreds, besides per share knowledge) | August 31, 2022 | August 31, 2021 | Non-GAAP | |||||||||||||
Adjusted income: | ||||||||||||||||
GAAP income | $ | 151,217 | $ | 147,417 | ||||||||||||
Acquisition-related income | 1,843 | 5,180 | ||||||||||||||
Non-GAAP income | $ | 153,060 | 100 | % | $ | 152,597 | 100 | % | — | % | ||||||
Adjusted revenue from operations: | ||||||||||||||||
GAAP revenue from operations | $ | 32,021 | 21 | % | $ | 46,046 | 31 | % | ||||||||
Amortization of acquired intangibles | 17,274 | 11 | % | 11,577 | 8 | % | ||||||||||
Restructuring bills and different | 130 | — | % | 40 | — | % | ||||||||||
Stock-based compensation | 8,639 | 6 | % | 6,839 | 4 | % | ||||||||||
Acquisition-related income and bills | 2,011 | 1 | % | 6,661 | 4 | % | ||||||||||
Non-GAAP revenue from operations | $ | 60,075 | 39 | % | $ | 71,163 | 47 | % | (16) | % | ||||||
Adjusted internet revenue: | ||||||||||||||||
GAAP internet revenue | $ | 21,797 | 14 | % | $ | 30,976 | 21 | % | ||||||||
Amortization of acquired intangibles | 17,274 | 11 | % | 11,577 | 8 | % | ||||||||||
Restructuring bills and different | 130 | — | % | 40 | — | % | ||||||||||
Stock-based compensation | 8,639 | 7 | % | 6,839 | 3 | % | ||||||||||
Acquisition-related income and bills | 2,011 | 1 | % | 6,661 | 4 | % | ||||||||||
Amortization of low cost on notes | — | — | % | 2,868 | 2 | % | ||||||||||
Provision for revenue taxes | (5,761 | ) | (4) | % | (6,384 | ) | (4) | % | ||||||||
Non-GAAP internet revenue | $ | 44,090 | 29 | % | $ | 52,577 | 34 | % | (16) | % | ||||||
Adjusted diluted earnings per share: | ||||||||||||||||
GAAP diluted earnings per share | $ | 0.50 | $ | 0.70 | ||||||||||||
Amortization of acquired intangibles | 0.39 | 0.26 | ||||||||||||||
Stock-based compensation | 0.19 | 0.15 | ||||||||||||||
Acquisition-related income and bills | 0.05 | 0.15 | ||||||||||||||
Amortization of low cost on notes | — | 0.06 | ||||||||||||||
Provision for revenue taxes | (0.13 | ) | (0.14 | ) | ||||||||||||
Non-GAAP diluted earnings per share | $ | 1.00 | $ | 1.18 | (15) | % | ||||||||||
Non-GAAP weighted avg shares excellent – diluted | 43,935 | 44,502 | (1) | % | ||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP SELECTED FINANCIAL MEASURES – YEAR TO DATE1
(Unaudited)
Nine Months Ended | % Change | |||||||||||||||
(In hundreds, besides per share knowledge) | August 31, 2022 | August 31, 2021 | Non-GAAP | |||||||||||||
Adjusted income: | ||||||||||||||||
GAAP income | $ | 444,886 | $ | 391,185 | ||||||||||||
Acquisition-related income | 6,558 | 22,394 | ||||||||||||||
Non-GAAP income | $ | 451,444 | 100 | % | $ | 413,579 | 100 | % | 9 | % | ||||||
Adjusted revenue from operations: | ||||||||||||||||
GAAP revenue from operations | $ | 101,688 | 23 | % | $ | 95,744 | 24 | % | ||||||||
Amortization of acquired intangibles | 51,919 | 12 | % | 33,555 | 8 | % | ||||||||||
Restructuring bills and different | 784 | — | % | 1,133 | — | % | ||||||||||
Stock-based compensation | 26,110 | 5 | % | 21,985 | 5 | % | ||||||||||
Acquisition-related income and bills | 10,374 | 2 | % | 25,115 | 6 | % | ||||||||||
Gain on sale of belongings held on the market | (10,770 | ) | (2) | % | — | — | % | |||||||||
Non-GAAP revenue from operations | $ | 180,105 | 40 | % | $ | 177,532 | 43 | % | 1 | % | ||||||
Adjusted internet revenue: | ||||||||||||||||
GAAP internet revenue | $ | 71,361 | 16 | % | $ | 63,494 | 16 | % | ||||||||
Amortization of acquired intangibles | 51,919 | 12 | % | 33,555 | 8 | % | ||||||||||
Restructuring bills and different | 784 | — | % | 1,133 | — | % | ||||||||||
Stock-based compensation | 26,110 | 6 | % | 21,985 | 5 | % | ||||||||||
Acquisition-related income and bills | 10,374 | 2 | % | 25,115 | 6 | % | ||||||||||
Gain on sale of belongings held on the market | (10,770 | ) | (2) | % | — | — | % | |||||||||
Amortization of low cost on notes | — | — | % | 4,348 | 1 | % | ||||||||||
Provision for revenue taxes | (16,242 | ) | (4) | % | (18,036 | ) | (4) | % | ||||||||
Non-GAAP internet revenue | $ | 133,536 | 30 | % | $ | 131,594 | 32 | % | 1 | % | ||||||
Adjusted diluted earnings per share: | ||||||||||||||||
GAAP diluted earnings per share | $ | 1.61 | $ | 1.43 | ||||||||||||
Amortization of acquired intangibles | 1.17 | 0.75 | ||||||||||||||
Restructuring bills and different | 0.02 | 0.03 | ||||||||||||||
Stock-based compensation | 0.59 | 0.48 | ||||||||||||||
Acquisition-related income and bills | 0.23 | 0.56 | ||||||||||||||
Gain on sale of belongings held on the market | (0.24 | ) | — | |||||||||||||
Amortization of low cost on notes | — | 0.10 | ||||||||||||||
Provision for revenue taxes | (0.37 | ) | (0.40 | ) | ||||||||||||
Non-GAAP diluted earnings per share | $ | 3.01 | $ | 2.95 | 2 | % | ||||||||||
Non-GAAP weighted avg shares excellent – diluted | 44,299 | 44,542 | (1) | % | ||||||||||||
OTHER NON-GAAP FINANCIAL MEASURES1
(Unaudited)
Quarter to Date Adjusted Free Cash Flow | ||||||||||
(In hundreds) | Q3 2022 | Q3 2021 | % Change | |||||||
Cash flows from operations | $ | 39,670 | $ | 35,224 | 13 | % | ||||
Purchases of property and tools | (1,107 | ) | (625 | ) | 77 | % | ||||
Free money circulation | 38,563 | 34,599 | 11 | % | ||||||
Add again: restructuring funds | 674 | 423 | 59 | % | ||||||
Adjusted free money circulation | $ | 39,237 | $ | 35,022 | 12 | % |
Year to Date Adjusted Free Cash Flow | ||||||||||
(In hundreds) | Q3 2022 | Q3 2021 | % Change | |||||||
Cash flows from operations | $ | 152,023 | $ | 134,602 | 13 | % | ||||
Purchases of property and tools | (3,086 | ) | (2,741 | ) | 13 | % | ||||
Free money circulation | 148,937 | 131,861 | 13 | % | ||||||
Add again: restructuring funds | 3,019 | 5,087 | (41) | % | ||||||
Adjusted free money circulation | $ | 151,956 | $ | 136,948 | 11 | % |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2022 GUIDANCE1
(Unaudited)
Fiscal Year 2022 Updated Revenue Guidance | ||||||||||||||
Fiscal Year Ended | Fiscal Year Ending | |||||||||||||
November 30, 2021 | November 30, 2022 | |||||||||||||
(In hundreds of thousands) | Low | % Change | High | % Change | ||||||||||
GAAP income | $ | 531.3 | $ | 600.5 | 13 | % | $ | 608.5 | 15 | % | ||||
Acquisition-related changes – income | 26.0 | 8.5 | (67) | % | 8.5 | (67) | % | |||||||
Non-GAAP income | $ | 557.3 | $ | 609.0 | 9 | % | $ | 617.0 | 11 | % |
Fiscal Year 2022 Updated Non-GAAP Operating Margin Guidance | |||||||
Fiscal Year Ending November 30, 2022 | |||||||
(In hundreds of thousands) | Low | High | |||||
GAAP revenue from operations | $ | 133.0 | $ | 138.7 | |||
GAAP working margins | 22 | % | 23 | % | |||
Acquisition-related income | 8.5 | 8.5 | |||||
Acquisition-related expense | 4.3 | 4.3 | |||||
Restructuring expense | 0.9 | 0.9 | |||||
Stock-based compensation | 35.6 | 35.6 | |||||
Amortization of acquired intangibles | 69.0 | 69.0 | |||||
Gain on sale of belongings held on the market | (10.8 | ) | (10.8 | ) | |||
Total changes | 107.5 | 107.5 | |||||
Non-GAAP revenue from operations | $ | 240.5 | $ | 246.2 | |||
Non-GAAP working margin | 39 | % | 40 | % |
Fiscal Year 2022 Updated Non-GAAP Earnings per Share and Effective Tax Rate Guidance | |||||||
Fiscal Year Ending November 30, 2022 | |||||||
(In hundreds of thousands, besides per share knowledge) | Low | High | |||||
GAAP internet revenue | $ | 93.8 | $ | 97.2 | |||
Adjustments (from earlier desk) | 107.5 | 107.5 | |||||
Income tax adjustment2 | (20.8 | ) | (22.6 | ) | |||
Non-GAAP internet revenue | $ | 180.5 | $ | 182.1 | |||
GAAP diluted earnings per share | $ | 2.12 | $ | 2.20 | |||
Non-GAAP diluted earnings per share | $ | 4.08 | $ | 4.12 | |||
Diluted weighted common shares excellent | 44.2 | 44.2 |
2Tax adjustment relies on a non-GAAP efficient tax charge of roughly 20% for Low and 21% for High, calculated as follows: | ||||||||
Non-GAAP revenue from operations | $ | 240.5 | $ | 246.2 | ||||
Other (expense) revenue | (15.7 | ) | (15.7 | ) | ||||
Non-GAAP revenue from persevering with operations earlier than revenue taxes | 224.8 | 230.5 | ||||||
Non-GAAP internet revenue | 180.5 | 182.1 | ||||||
Tax provision | $ | 44.3 | $ | 48.4 | ||||
Non-GAAP tax charge | 20 | % | 21 | % |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2022 GUIDANCE1
(Unaudited)
Fiscal Year 2022 Adjusted Free Cash Flow Guidance | |||||||
Fiscal Year Ending November 30, 2022 | |||||||
(In hundreds of thousands) | Low | High | |||||
Cash flows from operations (GAAP) | $ | 188 | $ | 193 | |||
Purchases of property and tools | (6 | ) | (6 | ) | |||
Add again: restructuring funds | 3 | 3 | |||||
Adjusted free money circulation (non-GAAP) | $ | 185 | $ | 190 |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR This autumn 2022 GUIDANCE1
(Unaudited)
This autumn 2022 Revenue Guidance | ||||||||||||||
Three Months Ended | Three Months Ending | |||||||||||||
November 30, 2021 | November 30, 2022 | |||||||||||||
(In hundreds of thousands) | Low | % Change | High | % Change | ||||||||||
GAAP income | $ | 140.1 | $ | 155.7 | 11 | % | $ | 163.7 | 17 | % | ||||
Acquisition-related changes – income | 3.6 | 1.9 | (47) | % | 1.9 | (47) | % | |||||||
Non-GAAP income | $ | 143.7 | $ | 157.6 | 10 | % | $ | 165.6 | 15 | % |
This autumn 2022 Non-GAAP Earnings per Share Guidance | |||||||
Three Months Ending November 30, 2022 | |||||||
Low | High | ||||||
GAAP diluted earnings per share | $ | 0.53 | $ | 0.57 | |||
Acquisition-related income | 0.04 | 0.04 | |||||
Acquisition-related expense | 0.01 | 0.01 | |||||
Stock-based compensation | 0.22 | 0.22 | |||||
Amortization of acquired intangibles | 0.39 | 0.39 | |||||
Total changes | 0.66 | 0.66 | |||||
Income tax adjustment | (0.13 | ) | (0.13 | ) | |||
Non-GAAP diluted earnings per share | $ | 1.06 | $ | 1.10 |