Revenue and EPS Exceed Prior Guidance

BURLINGTON, Mass., June 28, 2022 (GLOBE NEWSWIRE) -- Progress (Nasdaq: PRGS), the trusted provider of infrastructure software, today announced financial results for its fiscal second quarter ended May 31, 2022.

Second Quarter 2022 Highlights:

  • Revenue of $148.7 million increased 21% year-over-year on an actual currency basis, and 24% on a constant currency basis.
  • Non-GAAP revenue of $150.9 million increased 17% on an actual currency basis, and 19% on a constant currency basis.
  • Annualized Recurring Revenue (ARR) of $486 million increased 13% year-over-year on a constant currency basis.
  • Operating margin was 27% and Non-GAAP operating margin was 41%.
  • Diluted earnings per share was $0.66 compared to $0.30 in the same quarter last year, an increase of 120%. 
  • Non-GAAP diluted earnings per share was $1.04 compared to $0.82 in the same quarter last year, an increase of 27%.

“Once again, we are very pleased to report excellent quarterly results, especially during so much market turmoil and global uncertainty,” said Yogesh Gupta, CEO at Progress. “Progress again performed exceptionally well across the board, exceeding revenue and EPS guidance, which was driven by a Total Growth Strategy that layers accretive M&A over a highly profitable and predictable business with strong recurring revenue and very high retention rates. Despite a tumultuous market and an economy with increasing risks, Progress remains well positioned to continue our steady execution for the remainder of 2022 and beyond.”

Additional financial highlights included(1):

 Three Months Ended
 GAAP Non-GAAP
(In thousands, except percentages and per share amounts)May 31, 2022 May 31, 2021 % Change May 31, 2022 May 31, 2021 % Change
Revenue$148,747  $122,488  21% $150,879  $129,198  17%
Income from operations$40,235  $22,282  81% $61,298  $49,712  23%
Operating margin 27%  18% 900bps  41%  38% 300bps
Net income$29,110  $13,557  115% $45,886  $36,513  26%
Diluted earnings per share$0.66  $0.30  120% $1.04  $0.82  27%
Cash from operations (GAAP) /Adjusted free cash flow (Non-GAAP)$68,260  $54,690  25% $68,038  $55,411  23%

(1)See Legal Notice Regarding Non-GAAP Financial Information

Other fiscal second quarter 2022 metrics and recent results included:

  • Cash, cash equivalents and short-term investments were $225.9 million at the end of the quarter.
  • DSO was 39 days compared to 44 days in the fiscal second quarter of 2021 and 52 days in the fiscal first quarter of 2022.
  • On June 21, 2022, our Board of Directors declared a quarterly dividend of $0.175 per share of common stock that will be paid on September 15, 2022 to shareholders of record as of the close of business on September 1, 2022.

Anthony Folger, CFO, said: “Despite the recent challenges in the global economy, our business continues to perform well across virtually all product lines. Our integration of Kemp is on track, our balance sheet continues to strengthen, and the recurring nature of our revenues and our strong retention rates will continue to serve us well in this environment.”

2022 Business Outlook

Progress provides the following guidance for the fiscal year ending November 30, 2022 and the fiscal third quarter ending August 31, 2022:

 Updated FY 2022 Guidance
(June 28, 2022)
 Prior FY 2022 Guidance
(March 29, 2022)
(In millions, except percentages and per share amounts)GAAP Non-GAAP GAAP Non-GAAP
Revenue$601 - $609 $609 - $617 $601 - $609 $609 - $617
Diluted earnings per share$2.11 - $2.21 $4.05 - $4.11 $2.16 - $2.23 $4.01 - $4.09
Operating margin22% - 23% 39% - 40% 23% 39% - 40%
Cash from operations (GAAP) /
Adjusted free cash flow (Non-GAAP)
$188 - $193 $185 - $190 $188 - $193 $185 - $190
Effective tax rate21% 20% - 21% 21% 20% - 21%


 Q3 2022 Guidance
(In millions, except per share amounts)GAAP Non-GAAP
Revenue$145 - $148 $147 - $150
Diluted earnings per share$0.46 - $0.48 $0.96 - $0.98

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 $11.7 million on GAAP and non-GAAP revenue, and approximately $0.04 on GAAP and non-GAAP diluted earnings per share. The expected negative currency translation impact on Progress' fiscal Q3 2022 business outlook compared to 2021 exchange rates on GAAP and non-GAAP revenue is approximately $3.6 million. The expected negative impact on GAAP and non-GAAP diluted Q3 2022 earnings per share is $0.02. 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 second quarter of 2022 at 5:00 p.m. ET on Tuesday, June 28, 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 866-374-5140 or +1 404-400-0571, passcode 186-83-835#. 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.

Note Regarding Forward-Looking Statements

This press release 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.

Forward-looking statements in this press release include, but are not limited to, statements regarding Progress' business outlook and financial guidance. There are a number of factors that could cause actual results or future events to differ materially from those anticipated by the forward-looking statements, including, without limitation:

(1) Economic, geopolitical and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, fluctuations in currency exchange rates, or a decline in our renewal rates for contracts. (3) Our ability to successfully manage transitions to new business models and markets, including an increased emphasis on a cloud and subscription strategy, may not be successful. (4) If we are unable to develop new or sufficiently differentiated products and services, or to enhance and improve our existing products and services in a timely manner to meet market demand, partners and customers may not purchase new software licenses or subscriptions or purchase or renew support contracts. (5) We depend upon our extensive partner channel and we may not be successful in retaining or expanding our relationships with channel partners. (6) Our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses. (7) If the security measures for our software, services, other offerings or our internal information technology infrastructure are compromised or subject to a successful cyber-attack, or if our software offerings contain significant coding or configuration errors, we may experience reputational harm, legal claims and financial exposure. (8) We have made acquisitions, and may make acquisitions in the future, and those acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. (9) Delay or failure to realize the expected synergies and benefits of the Kemp acquisition could negatively impact our future results of operations and financial condition; (10) The continuing impact of the coronavirus disease (COVID-19) outbreak on our employees, customers, partners, and the global financial markets could adversely affect our business, results of operations and financial condition. For further information regarding risks and uncertainties associated with Progress' business, please refer to Progress' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2021. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

About Progress

Dedicated to propelling business forward in a technology-driven world, Progress (Nasdaq: PRGS) helps businesses drive faster cycles of innovation, fuel momentum and accelerate their path to success. As the trusted provider of the best products to develop, deploy and manage high-impact applications, Progress enables customers to develop the applications and experiences they need, deploy where and how they want and manage it all safely and securely. Hundreds of thousands of enterprises, including 1,700 software companies and 3.5 million developers, depend on Progress to achieve their goals—with confidence. Learn more at www.progress.com.

Progress and Progress Software are trademarks or registered trademarks of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.

Investor Contact:Press Contact:
Michael MiccicheErica McShane
Progress SoftwareProgress Software
+1 781 850 8450+1 781 280 4000
Investor-Relations@progress.comPR@progress.com

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 Three Months Ended    Six Months Ended   
(In thousands, except per share data)May 31, 2022 May 31, 2021 % Change May 31, 2022 May 31, 2021 % Change
Revenue:                 
Software licenses$44,814  $30,107  49% $87,564  $63,424  38%
Maintenance and services 103,933   92,381  13%  206,105   180,344  14%
Total revenue 148,747   122,488  21%  293,669   243,768  20%
Costs of revenue:                 
Cost of software licenses 2,583   1,038  149%  5,192   2,189  137%
Cost of maintenance and services 15,801   14,673  8%  30,946   27,992  11%
Amortization of acquired intangibles 5,573   3,599  55%  11,031   7,120  55%
Total costs of revenue 23,957   19,310  24%  47,169   37,301  26%
Gross profit 124,790   103,178  21%  246,500   206,467  19%
Operating expenses:                 
Sales and marketing 32,704   29,262  12%  66,173   58,731  13%
Product development 28,643   26,415  8%  57,316   50,963  12%
General and administrative 19,207   16,460  17%  36,198   29,884  21%
Amortization of acquired intangibles 11,892   7,979  49%  23,614   14,858  59%
Restructuring expenses 143   (64) (323)%  654   1,093  (40)%
Acquisition-related expenses 2,736   844  224%  3,648   1,240  194%
Gain on sale of assets held for sale (10,770)     *  (10,770)     *
Total operating expenses 84,555   80,896  5%  176,833   156,769  13%
Income from operations 40,235   22,282  81%  69,667   49,698  40%
Other expense, net (3,390)  (5,218) 35%  (6,870)  (7,870) 13%
Income before income taxes 36,845   17,064  116%  62,797   41,828  50%
Provision for income taxes 7,735   3,507  121%  13,233   9,310  42%
Net income$29,110  $13,557  115% $49,564  $32,518  52%
                  
Earnings per share:                 
Basic$0.67  $0.31  116% $1.13  $0.74  53%
Diluted$0.66  $0.30  120% $1.11  $0.73  52%
Weighted average shares outstanding:                 
Basic 43,575   43,818  (1)%  43,778   43,963  
%
Diluted 44,253   44,472  %  44,480   44,562  %
                  
Cash dividends declared per common share$0.175  $0.175  % $0.350  $0.350  %


Stock-based compensation is included in the condensed consolidated statements of operations, as follows:        
Cost of revenue$472 $468 1% $883 $860 3%
Sales and marketing 690  1,752 (61)%  2,092  3,255 (36)%
Product development 2,740  2,412 14%  4,962  4,331 15%
General and administrative 5,455  3,730 46%  9,534  6,700 42%
Total$9,357 $8,362 12% $17,471 $15,146 15%

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)May 31, 2022 November 30, 2021
Assets   
Current assets:   
Cash, cash equivalents and short-term investments$225,913 $157,373
Accounts receivable, net 64,733  99,815
Unbilled receivables and contract assets 32,735  25,816
Other current assets 32,488  39,549
Assets held for sale   15,255
Total current assets 355,869  337,808
Property and equipment, net 13,649  14,345
Goodwill and intangible assets, net 925,426  958,337
Right-of-use lease assets 21,364  25,253
Long-term unbilled receivables and contract assets 24,253  17,464
Other assets 14,021  10,330
Total assets$1,354,582 $1,363,537
Liabilities and shareholders’ equity   
Current liabilities:   
Accounts payable and other current liabilities$62,821 $84,215
Current portion of long-term debt, net 6,234  25,767
Short-term operating lease liabilities 7,843  7,926
Short-term deferred revenue 207,331  205,021
Total current liabilities 284,229  322,929
Long-term debt, net 262,337  239,992
Convertible senior notes, net 351,567  294,535
Long-term operating lease liabilities 18,965  23,130
Long-term deferred revenue 51,249  47,359
Other long-term liabilities 14,089  23,103
Shareholders’ equity:   
Common stock and additional paid-in capital 310,348  354,676
Retained earnings 61,798  57,813
Total shareholders’ equity 372,146  412,489
Total liabilities and shareholders’ equity$1,354,582 $1,363,537

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)  

 Three Months Ended Six Months Ended
(In thousands)May 31,
2022
 May 31,
2021
 May 31,
2022
 May 31,
2021
Cash flows from operating activities:       
Net income$29,110  $13,557  $49,564  $32,518 
Depreciation and amortization 19,379   14,829   38,597   26,691 
Gain on sale of assets held for sale (10,770)     (10,770)   
Stock-based compensation 9,357   8,362   17,471   15,146 
Other non-cash adjustments 1,673   708   6,115   3,123 
Changes in operating assets and liabilities 19,511   17,234   11,376   21,900 
Net cash flows from operating activities 68,260   54,690   112,353   99,378 
Capital expenditures (1,148)  (950)  (1,979)  (2,116)
Issuances of common stock, net of repurchases (22,796)  (17,185)  (43,702)  (28,700)
Dividend payments to shareholders (7,789)  (7,763)  (15,573)  (15,617)
Proceeds from the issuance of debt, net of payment of issuance costs       5,517    
Proceeds from sale of long-lived assets, net           
Payments of principal on long-term debt (1,716)  (87,262)  (3,435)  (106,025)
Proceeds from issuance of Notes, net of issuance costs    349,196      349,196 
Purchase of capped calls    (43,056)     (43,056)
Other 17,780   619   15,359   3,605 
Net change in cash, cash equivalents and short-term investments 52,591   248,289   68,540   256,665 
Cash, cash equivalents and short-term investments, beginning of period 173,322   114,371   157,373   105,995 
Cash, cash equivalents and short-term investments, end of period$225,913  $362,660  $225,913  $362,660 

RECONCILIATIONS OF GAAP TO NON-GAAP SELECTED FINANCIAL MEASURES - SECOND QUARTER
(Unaudited)

 Three Months Ended % Change
(In thousands, except per share data)May 31, 2022 May 31, 2021 Non-GAAP
Adjusted revenue:         
GAAP revenue$148,747    $122,488     
Acquisition-related revenue(1) 2,132     6,710     
Non-GAAP revenue$150,879  100% $129,198  100% 17%
          
Adjusted income from operations:         
GAAP income from operations$40,235  27% $22,282  18%  
Amortization of acquired intangibles 17,465  12%  11,578  9%  
Restructuring expenses and other 143  %  (64) %  
Stock-based compensation 9,357  6%  8,362  5%  
Acquisition-related revenue(1) and expenses 4,868  3%  7,554  6%  
Gain on sale of assets held for sale (10,770) (7)%    %  
Non-GAAP income from operations$61,298  41% $49,712  38% 23%
          
Adjusted net income:         
GAAP net income$29,110  20% $13,557  11%  
Amortization of acquired intangibles 17,465  12%  11,578  9%  
Restructuring expenses and other 143  %  (64) %  
Stock-based compensation 9,357  5%  8,362  6%  
Acquisition-related revenue(1) and expenses 4,868  3%  7,554  6%  
Gain on sale of assets held for sale (10,770) (7)%    %  
Amortization of discount on notes   %  1,480  1%  
Provision for income taxes (4,287) (3)%  (5,954) (5)%  
Non-GAAP net income$45,886  30% $36,513  28% 26%
          
Adjusted diluted earnings per share:         
GAAP diluted earnings per share$0.66    $0.30     
Amortization of acquired intangibles 0.39     0.26     
Stock-based compensation 0.22     0.19     
Acquisition-related revenue(1) and expenses 0.11     0.17     
Gain on sale of assets held for sale (0.24)         
Amortization of discount on notes      0.03     
Provision for income taxes (0.10)    (0.13)    
Non-GAAP diluted earnings per share$1.04    $0.82    27%
          
Non-GAAP weighted avg shares outstanding - diluted 44,253     44,472    %
          
(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.

RECONCILIATIONS OF GAAP TO NON-GAAP SELECTED FINANCIAL MEASURES - YEAR TO DATE
(Unaudited)

 Six Months Ended % Change
(In thousands, except per share data)May 31, 2022 May 31, 2021 Non-GAAP
Adjusted revenue:         
GAAP revenue$293,669    $243,768     
Acquisition-related revenue(1) 4,715     17,214     
Non-GAAP revenue$298,384  100% $260,982  100% 14%
          
Adjusted income from operations:         
GAAP income from operations$69,667  24% $49,698  20%  
Amortization of acquired intangibles 34,645  12%  21,978  8%  
Restructuring expenses and other 654  %  1,093  %  
Stock-based compensation 17,471  5%  15,146  6%  
Acquisition-related revenue(1) and expenses 8,363  3%  18,454  7%  
Gain of sale of assets held for sale (10,770) (4)%    %  
Non-GAAP income from operations$120,030  40% $106,369  41% 13%
          
Adjusted net income:         
GAAP net income$49,564  17% $32,518  13%  
Amortization of acquired intangibles 34,645  12%  21,978  8%  
Restructuring expenses and other 654  %  1,093  %  
Stock-based compensation 17,471  6%  15,146  6%  
Acquisition-related revenue(1) and expenses 8,363  3%  18,454  7%  
Gain of sale of assets held for sale (10,770) (4)%    %  
Amortization of discount on notes   %  1,480  %  
Provision for income taxes (10,481) (4)%  (11,652) (4)%  
Non-GAAP net income$89,446  30% $79,017  30% 13%
          
Adjusted diluted earnings per share:         
GAAP diluted earnings per share$1.11    $0.73     
Amortization of acquired intangibles 0.78     0.49     
Restructuring expenses and other 0.01     0.02     
Stock-based compensation 0.40     0.35     
Acquisition-related revenue(1) and expenses 0.19     0.41     
Gain of sale of assets held for sale (0.24)         
Amortization of discount on notes      0.03     
Provision for income taxes (0.24)    (0.26)    
Non-GAAP diluted earnings per share$2.01    $1.77    14%
          
Non-GAAP weighted avg shares outstanding - diluted 44,480     44,562    %
          
(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.

OTHER NON-GAAP FINANCIAL MEASURES
(Unaudited)

Quarter to Date Adjusted Free Cash Flow     
      
(In thousands)Q2 2022 Q2 2021 % Change
Cash flows from operations$68,260  $54,690  25%
Purchases of property and equipment (1,148)  (950) 21%
Free cash flow 67,112   53,740  25%
Add back: restructuring payments 926   1,671  (45)%
Adjusted free cash flow$68,038  $55,411  23%


Year to Date Adjusted Free Cash Flow     
      
(In thousands)Q2 2022 Q2 2021 % Change
Cash flows from operations$112,353  $99,378  13%
Purchases of property and equipment (1,979)  (2,116) (6)%
Free cash flow 110,374   97,262  13%
Add back: restructuring payments 2,345   4,664  (50)%
Adjusted free cash flow$112,719  $101,926  11%

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2022 GUIDANCE
(Unaudited)

Fiscal Year 2022 Updated Revenue Guidance
 Fiscal Year Ended Fiscal Year Ending
 November 30, 2021 November 30, 2022
(In millions)  Low % Change High % Change
GAAP revenue$531.3 $600.5 13% $608.5 15%
Acquisition-related adjustments - revenue(1) 26.0  8.5 (67)%  8.5 (67)%
Non-GAAP revenue$557.3 $609.0 9% $617.0 11%
(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 Updated Non-GAAP Operating Margin Guidance
 Fiscal Year Ending November 30, 2022
(In millions)Low High
GAAP income from operations$133.5  $139.8 
GAAP operating margins 22%  23%
Acquisition-related revenue 8.5   8.5 
Acquisition-related expense 4.9   4.9 
Restructuring expense 0.9   0.9 
Stock-based compensation 34.4   34.4 
Amortization of acquired intangibles 69.1   69.1 
Gain on sale of assets held for sale (10.8)  (10.8)
Total adjustments(2) 107.0   107.0 
Non-GAAP income from operations$240.5  $246.8 
Non-GAAP operating margin 39%  40%
(2)Total adjustments include preliminary estimates relating to the valuation of intangible assets acquired from Kemp and restructuring expenses. The final amounts will not be available until the Company’s internal procedures and reviews are completed.


Fiscal Year 2022 Updated 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$93.7  $98.2 
Adjustments (from previous table) 107.0   107.0 
Income tax adjustment(3) (20.7)  (22.5)
Non-GAAP net income$180.0  $182.7 
    
GAAP diluted earnings per share$2.11  $2.21 
Non-GAAP diluted earnings per share$4.05  $4.11 
    
Diluted weighted average shares outstanding 44.5   44.5 
    
(3)Tax adjustment is based on a non-GAAP effective tax rate of approximately 20% for Low and 21% for High, calculated as follows:
Non-GAAP income from operations$240.5  $246.8 
Other (expense) income (15.5)  (15.5)
Non-GAAP income from continuing operations before income taxes 225.0   231.3 
Non-GAAP net income 180.0   182.7 
Tax provision$45.0  $48.6 
Non-GAAP tax rate 20%  21%

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2022 GUIDANCE
(Unaudited)

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 

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2022 GUIDANCE
(Unaudited)

Q3 2022 Revenue Guidance
 Three Months Ended Three Months Ending
 August 31, 2021 August 31, 2022
(In millions)  Low % Change High % Change
GAAP revenue$147.4 $145.2 (1)% $148.2 1%
Acquisition-related adjustments - revenue(1) 5.2  1.8 (65)%  1.8 (65)%
Non-GAAP revenue$152.6 $147.0 (4)% $150.0 (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. Acquisition-related revenue adjustments relate to Ipswitch and Chef.


Q3 2022 Non-GAAP Earnings per Share Guidance
 Three Months Ending August 31, 2022
 Low High
GAAP diluted earnings per share$0.46  $0.48 
Acquisition-related revenue 0.04   0.04 
Acquisition-related expense 0.01   0.01 
Stock-based compensation 0.19   0.19 
Amortization of acquired intangibles 0.39   0.39 
Total adjustments(2) 0.63   0.63 
Income tax adjustment (0.13)  (0.13)
Non-GAAP diluted earnings per share$0.96  $0.98 
(2)Total adjustments include preliminary estimates relating to the valuation of intangible assets acquired from Kemp. The final amounts will not be available until the Company’s internal procedures and reviews are completed.

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