Progress Reports 2021 Fiscal Fourth Quarter and Year End Results

Tuesday, 18. January 2022 22:15

Q4 and FY21 Revenue and EPS Significantly Ahead of Guidance
Integration of Kemp On Target as Acquisition Drives Projected Fiscal 2022 Revenue Growth

BEDFORD, Mass., Jan. 18, 2022 (GLOBE NEWSWIRE) -- Progress (NASDAQ: PRGS), the leading provider of products to develop, deploy and manage high-impact applications, today announced financial results for its fiscal fourth quarter and fiscal year ended November 30, 2021.

Fourth Quarter 2021 Highlights:

  • Revenue of $140.1 million increased 14% year-over-year on an actual currency basis and 15% year-over-year on a constant currency basis.
  • Non-GAAP revenue of $143.7 million increased 11% on both an actual currency basis and a constant currency basis.
  • Annualized Recurring Revenue ("ARR") of $486 million increased 12% year-over-year on a constant currency basis.
  • Operating margin was 15% and Non-GAAP operating margin was 36%.
  • Diluted earnings per share was $0.33 compared to $0.39 in the same quarter last year, a decrease of 15%.
  • Non-GAAP diluted earnings per share was $0.92 compared to $0.91 in the same quarter last year, an increase of 1%.

“We're very pleased with our performance throughout 2021, and especially our Q4 results that significantly beat our guidance for revenue and earnings,” said Yogesh Gupta, CEO at Progress. “We're also thrilled with the customer response and rapid integration pace of Kemp, whose acquisition we completed in November. As a leader in the Application Experience ("AX") space, Kemp fits our total growth strategy perfectly, and the acquisition will enable us to drive significant value to our shareholders while bringing a very talented team to Progress that will contribute to our future success.”

Additional financial highlights included(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 %

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

Other fiscal fourth quarter 2021 metrics and recent results included:

  • Cash, cash equivalents and short-term investments were $157.4 million at the end of the quarter.
  • DSO was 60 days compared to 54 days in the fiscal fourth quarter of 2020 and 54 days in the fiscal third quarter of 2021.
  • On January 10, 2022, our Board of Directors declared a quarterly dividend of $0.175 per share of common stock that will be paid on March 15, 2022 to shareholders of record as of the close of business on March 1, 2022.
  • On November 1, 2021, the company completed the acquisition of Kemp Technologies, Inc., a leader in the Application Experience space.

“Q4 results were outstanding across every metric and we're very pleased with such a strong close to our fiscal 2021,” said Anthony Folger, CFO at Progress. “As we begin to realize synergies from the acquisition of Kemp, we are very well positioned to deliver strong financial results in 2022 and beyond. We exit 2021 having grown our ARR by 12%, while at the same time, achieving Non-GAAP operating margins of over 40% for the second year in a row.”

Full Year Results

 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 %
                      

2022 Business Outlook

Progress provides the following guidance for the fiscal year ending November 30, 2022 and the fiscal first quarter ending February 28, 2022, together with actual results for the same periods in the fiscal year ending November 30, 2021:

 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 margin21% 39%  22%  41%
Cash from operations (GAAP) /
Adjusted free cash flow (Non-GAAP)
$188 - $193  $185 - $190 $179 $179
Effective tax rate20 - 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
          

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 $7.5 million on GAAP and non-GAAP revenue, and approximately $0.03 on GAAP and non-GAAP diluted earnings per share. The expected negative currency translation impact on Progress' fiscal Q1 2022 business outlook compared to 2021 exchange rates on GAAP and non-GAAP revenue is approximately $2.5 million. The expected negative currency translation impact on GAAP and non-GAAP diluted earnings per share for fiscal Q1 2022 is approximately $0.01. 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 fourth quarter of 2021 at 5:00 p.m. ET on Tuesday, January 18, 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 800-773-2954 or +1 847-413-3731, pass code 50242105. 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; and (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, 2020 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended February 28, 2021, May 31, 2021 and August 31, 2021. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

About Progress

Progress (NASDAQ: PRGS) provides the best products to develop, deploy and manage high-impact applications. Our comprehensive product stack is designed to make technology teams more productive and we have a deep commitment to the developer community, both open source and commercial alike. With Progress, organizations can accelerate the creation and delivery of strategic business applications, automate the process by which apps are configured, deployed and scaled, and make critical data and content more accessible and secure—leading to competitive differentiation and business success. Over 1,700 independent software vendors, 100,000 enterprise customers, and three million developers rely on Progress to power their applications. Learn about Progress at www.progress.com or +1-800-477-6473.

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 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 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 %
                      

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(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
      

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)  

 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 
                

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

 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.
 

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

 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.
 

OTHER NON-GAAP FINANCIAL MEASURES
(Unaudited)

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 %
           

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

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 %
        

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 Q1 2022 GUIDANCE
(Unaudited)

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 

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