Progress Software : Q2 2022 Earnings Call Supplement

Progress Financial Results

Q2 FY22 Supplemental Data

June 28, 2022

Safe Harbor

This presentation 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 presentation include, but are not limited to, statements regarding Progress's strategy; acquisitions; future revenue growth, operating margin and cost savings; strategic partnering and marketing initiatives; and other statements regarding the future operation, direction, prospects and success of Progress's business.

There are many factors that could cause actual results or future events to differ materially from those anticipated by the forward-looking statements, including, without limitation:

• 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.
• 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.
• 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.
• 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.
• We depend upon our extensive partner channel, and we may not be successful in retaining or expanding our relationships with channel partners.

• 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.
• 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.
• 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.
• 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 our business, please refer to our filings with the Securities and Exchange Commission. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this presentation, except for statements relating to Progress' projected results for the quarter ended August 31, 2022, and fiscal year ended November 30, 2022, which speak only as of June 28, 2022.

Finally, in this presentation we will be referring to non-GAAP financial measures such as non- GAAP revenue, non-GAAP income from operations and operating margin, adjusted free cash flow and non-GAAP diluted earnings per share. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation between non- GAAP and the most directly comparable GAAP financial measures appears in our earnings press release for the fiscal quarter ended May 31, 2022 and is available in the Investor Relations section of our Web site.

© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved.

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Conference Call Details

What:	Progress Q2 2022 Financial Results Conference Call
When:	Tuesday, June 28, 2022
Time:	5:00 p.m. ET
Live Call:	866-374-5140
	404-400-0571
	Conf ID: 18683835#
Live / Recorded Webcast:	https://edge.media-server.com/mmc/p/ko3zzo69

Please note: Webcast is listen-only.

© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved.

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Summary Highlights Q2 FY22

Strong Revenue & EPS, ARR up 3.5%, NDRR +100%, Kemp Integration on Course, Strong Balance Sheet

• Continued execution with reliable and predictable revenues, earnings, and cash flow.
• ARR increased to $486M - up 12.5% year-over-year and 3.5% pro-forma, both on a constant currency basis.
• Net retention rates of >100% reflect ongoing customer reliance on Progress products.
• Balance sheet improved on $68M in adjusted FCF (up 23% yoy), finishing Q2 with $226M cash & equivalents, DSO at 39 days.
• Kemp integration continues on plan.

© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved.

Updated Guidance#

--- FY22E ---
Revenue:	$613M

Results Overview

All results shown are for Q2 FY22, non-GAAP, as reported June 28, 2022

$1.04

Q2 FY22 Earnings Per Share

EPS :	$4.08
Adjusted FCF:	$188M
Operating margin:	39.5%
Effective Tax Rate:	20.5%
--- Q3 FY22E ---
Q3E Revenue:	$149M
Q3E EPS:	$0.97

#

Guidance provided/updated June 28, 2022, non-GAAP; midpoint of guidance shown.

$150.9М

Revenue

$486М

ARR

$68.0M

Adjusted FCF

17%*

YoY Revenue Growth

~80%

Recurring Revenue

41%

Operating Margin

*Revenues grew 19% in constant currency

© 2022 Progress Software Corporation and/or its subsidiaries or affiliates. All rights reserved.