Progress Software Corporation (PRGS) 首席执行官 Yogesh Gupta 在 2019年 第二季度业绩 - 收益电话会议记录

[机器翻译] 电话会议 · 2019年06月29日 · 50 次阅读

Progress Software Corporation (NASDAQ:PRGS) Q 2, 2019 Earnings Call June 27, 2019 5:00 PM ET

Progress Software Corporation(纳斯达克股票代码:[PRGS])2019年第2期收益电话会议2019年6月27日美国东部时间下午5:00

公司参与者

Brian Flanagan - Vice President, Treasury and Investor Relations
Yogesh Gupta - Chief Executive Officer
Paul Jalbert - Chief Financial Officer

  • Brian Flanagan - 财务和投资者关系副总裁
  • Yogesh Gupta - 首席执行官
  • Paul Jalbert - 首席财务官

电话会议参与者

Matthew Galinko - National Securities
Mark Schappel - Benchmark

  • Matthew Galinko - 国家证券
  • Mark Schappel - 基准

会议主持员

Good day, and welcome to the Progress Software Corporation Q2, 2019 Investor Relations Call. At this time, I'd like to turn the conference over to Mr. Brian Flanagan, Vice President of Investor Relations. Please go ahead, sir.

美好的一天,欢迎来到Progress Software Corporation Q2,2019投资者关系电话会议。 在这个时候,我想把会议转交给投资者关系副总裁Brian Flanagan先生。 请继续,先生。

Brian Flanagan

Thank you, Codey. Good afternoon, everyone, and thanks for joining us for Progress Software's fiscal second quarter 2019 earnings call. With me today is Yogesh Gupta, President and Chief Executive Officer; and Paul Jalbert, our Chief Financial Officer.
Before we get started, I'd like to remind you that during this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, initiatives and other information that might be considered forward-looking. This forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties. Please review our Safe Harbour statement regarding this information, which is available in today's earnings release, as well as well as in the Investor Relations section of our website at progress.com.
Progress Software assumes no obligation to update the forward-looking statements included in this call whether as a result of new developments or otherwise. Additionally, on this call, the revenue, operating margin, diluted earnings per share and adjusted free cash flow amounts we will refer to are on a non-GAAP basis. You can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP numbers in our earnings release issued today. Today, we published our financial press release on our website. This document contains the full details of our financial results for the fiscal second quarter 2019, and I recommend you reference it for specific details. Today's conference call will be recorded in its entirety and will be available via replay on our website in the Investor Relations section.
And with that, I'll now turn it over to Yogesh.

谢谢你,Codey。大家下午好,感谢您加入我们的Progress Software 2019财年第二季度财报电话会议。今天和我在一起的是总裁兼首席执行官Yogesh Gupta;和我们的首席财务官Paul Jalbert。

在我们开始之前,我想提醒您,在本次电话会议中,我们将讨论我们对未来财务和经营业绩,公司战略,产品计划,计划和其他可能被视为具有前瞻性的信息的展望。这些前瞻性信息仅代表Progress Software迄今为止的展望和指导,并受到风险和不确定因素的影响。请查看有关此信息的安全港声明,该声明可在今天的收益发布中以及我们网站progress.com的投资者关系部分中找到。

Progress Software不承担更新本次电话中包含的前瞻性陈述的义务,无论是由于新的发展还是其他原因。此外,在此次通话中,我们将参考的收入,营业利润率,每股摊薄收益和调整后的自由现金流量均采用非GAAP计算。您可以在我们今天发布的收益发布中找到这些非GAAP财务指标与最直接可比的GAAP数字的对账。今天,我们在我们的网站上发布了财经新闻稿。本文档包含2019财年第二季度财务业绩的全部详细信息,我建议您参考具体细节。今天的电话会议将全部记录下来,并可通过我们网站上的“投资者关系”部分重播。

有了这个,我现在将其转交给Yogesh。

Yogesh Gupta

Thanks Brian. Good afternoon, everyone. And thank you for attending our second quarter earnings call. As you've seen this afternoon's press release, we had a really strong Q2 performance. Both revenue and EPS were well above the high end of our guidance range and cash flows were very solid. Although, much of the revenue over achievement is due timing within our DCI segment, OpenEdge also achieved better than expected revenue and I am encouraged by the overall momentum we've seen in our business.
During the quarter we completed our acquisition of Ipswitch. And I am very pleased with the strides we've made over the past two months in integrating their people, products and processes. I'll get into more detail from Ipswitch later but we are well on our way to realizing the synergies we projected while keeping this business healthy and strong.
Based on our performance in the first two quarters, as well as our optimism of continued strong execution in the remainder of the year, we are increasing our annual guidance for both operating margin and EPS. Paul will provide more details during his remarks, but we've raised our EPS projection by $0.05 to $0.06 and now expect margins of 36% to 37% for the full year and increase of 100 basis points on the high end. This is a great way to start the second half and I am pleased to see our hard work reflected in our financial performance.
Let's turn now to a few highlights for each of our segment, starting with OpenEdge. This is a third consecutive quarter that OpenEdge has over performed versus our expectations. This time driven primarily by increased revenue from direct enterprises. While much of this is due to deal timing, I am certainly encouraged by the overall trends we are seeing with our flagship product. Our OpenEdge partners also performed well in Q2. Fueled by an increase in the SaaS related revenue we received from partners who sell their applications in the cloud.
The OpenEdge SaaS related business represents an important revenue stream for us and we continue to expect double digit growth from these partners on an annual basis. Maintenance renewals, a key indicator of customer satisfaction, as well as the health and strength of OpenEdge, was again well over 90% in Q2 for both ISV and direct enterprises.
As I stated many times, our ongoing investments in OpenEdge like our release of OpenEdge 12 last quarter, will enable us to generate these high retention rate within our existing customer base. In addition, these customer and partner driven product enhancement position us to win back customers who have discontinued maintenance at some point in the past. We had several of these win backs during Q2 including one I'd like to highlight that contributed in a meaningful way to our revenue during the quarter. Based in EMEA, this customer is one of the largest optical retailers in the world. And runs both their central offices as well as their retail location on OpenEdge.
They had discontinued maintenance several years ago, but are now back on maintenance and as a next step we're discussing how we can help them move forward and modernize their current apps. This was only possible because our OpenEdge products are regularly updated with modern cutting edge capabilities and features. We also had a very good quarter from our DCI segment, with growth that was even stronger than the significant year-over-year increase we had expected. This was due to the timing of several large OEM renewals that we had expected to close later in the year. What's even more exciting is that we signed a significant new DCI OEM during the quarter. A US based multibillion dollar global provider of internet related services and products.

谢谢Brian。大家下午好。并感谢您参加我们的第二季度财报电话会议。正如你今天下午的新闻稿所见,我们的第二季度表现非常强劲。收入和每股盈利都远高于我们的指导范围的高端,现金流非常稳固。虽然大部分收入超过了我们DCI部门的到期时间,但OpenEdge也取得了比预期更好的收入,我对我们业务中看到的整体势头感到鼓舞。

在本季度,我们完成了对Ipswitch的收购。我对过去两个月在整合员工,产品和流程方面所取得的进步感到非常满意。我稍后会从Ipswitch了解更多细节,但我们正在努力实现我们预测的协同效应,同时保持这项业务的健康和强大。

根据我们在前两个季度的表现,以及我们对今年剩余时间持续强劲执行的乐观情绪,我们正在增加对经营利润率和每股盈利的年度指引。保罗将在他的发言中提供更多细节,但我们将每股盈利预测上调0.05美元至0.06美元,现在预计全年利润率为36%至37%,高端则增加100个基点。这是开始下半场的好方法,我很高兴看到我们的努力工作反映在我们的财务表现中。

现在让我们来看看我们每个细分市场的一些亮点,从OpenEdge开始。这是OpenEdge连续第三个季度超出我们的预期。这一次主要是由于直接企业的收入增加。虽然这很大程度上取决于交易时间,但我们对我们的旗舰产品所看到的整体趋势感到鼓舞。我们的OpenEdge合作伙伴在第二季度也表现良好。我们从在云中销售其应用程序的合作伙伴收到的SaaS相关收入增加所推动。

OpenEdge SaaS相关业务对我们来说是一个重要的收入来源,我们继续期望这些合作伙伴每年实现两位数的增长。维护更新是客户满意度的关键指标,也是OpenEdge的健康和实力,在ISV和直接企业的第二季度再次超过90%。

正如我多次说过的那样,我们对OpenEdge的持续投资,如上个季度发布的OpenEdge 12,将使我们能够在现有客户群中实现这些高保留率。此外,这些客户和合作伙伴驱动的产品增强使我们能够赢回过去某些时候停止维护的客户。我们在第二季度有几次这样的回击,包括一个我想强调的是,这个季度我们的收入有一个有意义的贡献。该客户位于EMEA,是全球最大的光学零售商之一。并在OpenEdge上运行其中心办公室和零售店。

几年前他们已停止维护,但现在又重新开始维护,下一步我们正在讨论如何帮助他们前进并使他们当前的应用程序现代化。这是唯一可能的,因为我们的OpenEdge产品定期更新,具有现代尖端功能和特性。我们的DCI部门也有一个非常好的季度,增长甚至强于我们预期的同比增长。这是由于我们预计将在今年晚些时候关闭几个大型OEM续订的时机。更令人兴奋的是,我们在本季度签下了一个重要的新DCI OEM。美国一家价值数十亿美元的全球互联网相关服务和产品供应商。

This is a marquee win for us and as a six figure multiyear deal; it will contribute meaningfully to our DCI revenue and ACV going forward. Our AD&D segment also performed well in Q2 bouncing back from a disappointing first quarter. Q2 bookings grew sequentially by 20% and by 4% versus last year and are trending consistent with the expectation we outlined last quarter.
Turning to Ipswitch. I briefly mentioned that the integration is going well and I wanted to provide a little more color on the progress we've made so far. The transaction closed on April 30th as expected. So our Q2 operating results include the impact of one of Ipswitch revenue and expenses. Let's start with the reminder of what made this such an ideal acquisition for us. Ipswitch meet all of the strict criteria we have in place for potential acquisition. It is immediately accretive to both non-GAAP EPS and cash flow with products and customers that are complementary to others. The business also has high levels of recurring revenue and solid maintenance renewal rate similar to Progress.
And finally, by leveraging our operating model and infrastructure, we expect Ipswitch to contribute operating margins of over 40% after cost synergy. The bulk of the $15 million of cost synergies we've identified are already completed which is slightly ahead of plan and part of the reason we feel comfortable increasing our EPS guidance for the full year. In addition, I am pleased so far with Ipswitch's bookings and revenue performance. It's only been one month of course but we are off to an encouraging start. We've seen very positive customer and channel partner reaction to the deal. In the month of May alone we had a number of new customer win and existing customer expansion that were in the six figure range, which constitute large deal for Ipswitch.
Overall, this positive response bolsters my confidence that we will achieve the $42 million revenue contribution from this business that we projected for this year. I am particularly proud of the performance of Ipswitch team both before and after the acquisition and remaining focused on the business objective. We've also seen high levels of enthusiasm and collaboration from the Progress employees as we begin to fold Ipswitch's operations into our OpenEdge segment. We are confident in our ability to execute on acquisitions like Ipswitch going forward which provide scale and increased cash flow and generate strong return for our shareholders.
Successfully integrating Ipswitch remains our top priority. However, we are also actively building a pipeline of opportunities that meet our strict criteria and we will remain deliberate in our approach. Before I close, I'd like to spend a few minutes recapping ProgressNEXT, our annual customer and partner conference that we held in May. The conference was a huge success and was even bigger than last year's with over 800 attendees from 36 countries taking part in sessions covering all of our offerings including our newly acquired Ipswitch product.

这对我们来说是一个巨大的胜利,也是一个六位数的多年合约;它将为我们的DCI收入和未来的ACV做出有意义的贡献。我们的AD&D细分市场也在第二季度表现良好,从第一季度的令人失望中恢复过来。第二季度订单比上一季度增长了20%,增长了4%,并且与上一季度的预期一致。

转向Ipswitch。我简要地提到整合进展顺利,我想为我们迄今取得的进展提供更多的颜色。该交易按预期于4月30日结束。因此,我们的第二季度运营业绩包括Ipswitch收入和支出之一的影响。让我们首先提醒一下这对我们来说是如此理想的收购。 Ipswitch符合我们为潜在收购制定的所有严格标准。它可以立即增加非GAAP EPS和现金流,产品和客户可以互补。该业务还具有高水平的经常性收入和与Progress相似的可靠维护续订率。

最后,通过利用我们的运营模式和基础设施,我们预计Ipswitch在成本协同作用后可以贡献超过40%的运营利润率。我们已经确定的1500万美元的成本协同效应中的大部分已经完成,略高于计划,部分原因是我们感到舒适地增加了全年的EPS指导。此外,到目前为止,我很高兴Ipswitch的预订和收入表现。这只是一个月的过程,但我们有一个令人鼓舞的开始。我们已经看到非常积极的客户和渠道合作伙伴对此交易的反应。仅在5月份,我们就获得了许多新的客户获胜和现有的客户扩展,这些扩展在6个数字范围内,这对Ipswitch来说构成了巨大的优势。

总体而言,这一积极的反应增强了我的信心,即我们将从今年预计的这项业务中获得4200万美元的收入贡献。我对Ipswitch团队在收购前后的表现感到特别自豪,并且仍然专注于业务目标。当我们开始将Ipswitch的业务部门纳入我们的OpenEdge部门时,我们也看到了Progress员工的高度热情和合作。我们有信心能够执行Ipswitch未来的收购,这些收购可提供规模和增加的现金流,并为股东带来丰厚回报。

成功整合Ipswitch仍然是我们的首要任务。但是,我们也在积极建立符合我们严格标准的机会渠道,我们将继续深思熟虑。在我结束之前,我想花几分钟时间重新介绍我们在5月举办的年度客户和合作伙伴会议ProgressNEXT。会议取得了巨大的成功,甚至比去年更大,来自36个国家的800多名与会者参加了我们所有产品的会议,包括我们新收购的Ipswitch产品。

Over half of the attending company was new this year, evidence of our appeal to a broader audience. Those are particular focused on some of our newer products such as OpenEdge 12, our DCI Autonomous Rest Connector, Sitefinity Cloud, Kinvey and DataRPM. Customer and partner reaction to our new initiatives at NEXT was validation that delivering modern, high-productivity access capability is important to their future success. We also had strong industry and media representation along with more than 3,300 additional viewers for the live stream of the event. Sessions were packed from the pre conference workshop right up to the keynote speech by Megan Smith, former Chief Technology Officer of the United States.
Overall, there was a tremendous level of enthusiasm and engagement from the customers, partners, sponsors and employees who attended our premier annual showcase. So in summary, we've now closed out a very solid first half to 2019. Our businesses are performing well and I am particularly pleased with the performance of OpenEdge which continues to be the cornerstone of our success. Our focus in the second half will be on continuing to run our business well with an emphasis on the ongoing integration of Ipswitch. We are committed to delivering the revenue contribution we are projecting for Ipswitch this year while maintaining their long standing customer relationship and healthy renewal rate.
We will also work to achieve the planned synergies even more quickly enabling us to potentially advance the timeline of the returns to our investors. Our business is tending in the right direction and coupled with ongoing emphasis on operating efficiently, I am confident that we will achieve our financial goals for 2019.
I am now going to turn things over to Paul to review our Q2 performance in more detail and outline our financial expectations for Q3 and FY2019. Paul?

今年有超过一半的参与公司是新的,证明了我们对更广泛的受众的吸引力。这些特别关注我们的一些新产品,如OpenEdge 12,我们的DCI Autonomous Rest Connector,Sitefinity Cloud,Kinvey和DataRPM。客户和合作伙伴对我们在NEXT的新举措的反应是验证,提供现代化,高效率的访问能力对他们未来的成功至关重要。我们还拥有强大的行业和媒体代表以及超过3,300名观众直播活动。会议讨论会从会前研讨会开始,直到美国前首席技术官梅根史密斯的主题演讲。

总体而言,参加我们的年度展会的客户,合作伙伴,赞助商和员工都表现出了极高的热情和参与度。总而言之,我们现在已经关闭了2019年的上半年。我们的业务表现良好,我对OpenEdge的表现特别满意,OpenEdge仍然是我们成功的基石。我们在下半年的重点将是继续保持良好的业务,重点是Ipswitch的持续整合。我们致力于为今年的Ipswitch提供收入贡献,同时保持其长期客户关系和健康的续订率。

我们还将努力更快地实现计划的协同效应,使我们有可能推进投资回报的时间表。我们的业务正朝着正确的方向发展,加上持续强调高效运营,我相信我们将实现2019年的财务目标。

我现在要把事情交给Paul来更详细地回顾我们的Q2表现,并概述我们对Q3和2019财年的财务预期。保罗?

保罗·贾尔伯特

Thank you, Yogesh and good afternoon, everyone. As a reminder, all financial results that I'll be referring to in my remarks are on a non-GAAP basis. Also, please note that all 2018 amounts have been adjusted to reflect ASC 606 which we adopted effective December 1, 2018 using the full retrospective method.
For our second quarter, total revenue was $103.5 million, $4.5 million above the high-end of our guidance range. The overachievement was primarily driven by the timing of several large OEM renewals within our DCI segment and by better than expected license sales to direct enterprises within our OpenEdge segment. Revenue from Ipswitch which was included in our results for month was consistent with our expectations.
Our earnings per share were $0.65 for the quarter, $0.08 above the high-end of our guidance range due to the higher revenue. Looking at consolidated revenue for the quarter as compared to Q2 of last year, total revenue of $103.5 million was 11% higher than a year ago at actual exchange rates, and 48% higher on a constant currency basis. This includes a negative $2.5 million impact due to foreign exchange fluctuations which was consistent with our expectations.
License revenue of $29.8 million increased by 32% from a year ago at actual exchange rates and 35% on a constant currency basis. The increase was primarily due to the renewal of a higher number of multiyear term OEM contracts in our DCI segment as compared to last year, as well as license revenue from Ipswitch for the month of May.
Maintenance and services revenue was $73.7 million, an increase of 5% year-over-year at actual exchange rates and 7% on a constant currency basis. This increase is again primarily due to the addition of Ipswitch.
Turning now to our revenue by segment with all comparisons at constant currency. OpenEdge revenue was $71.3 million for the second quarter, up 6% versus Q2 of 2018. Now as a reminder, Ipswitch is being reported as part of our OpenEdge segment and was primary driver behind the increased revenue. For the OpenEdge product line, although license revenue from direct enterprises was higher than expected for the quarter, it was down year-over-year due to difficult comparison versus Q2 of 2018.
License sales from our OpenEdge partner channel continues to be solid and stable including a strong quarter for SaaS related billings from our ISV partners who offer their applications in cloud. We once again achieved maintenance renewal rates of well over 90% during the quarter for both OpenEdge ISV partners and direct enterprise customers.
Turning to our DCI segment. Revenue was $12.9 million for the quarter, nearly 4x the revenue in Q2 of last year. We had projected a significant increase both sequentially and year-over-year. But the actual growth is even stronger due to the completion of several large OEM renewals earlier in the year than anticipated. However, while the timing of these renewals drove a significant revenue increase in Q2, our view for the full year has not changed.

谢谢你,Yogesh,大家下午好。提醒一下,我在发言中提到的所有财务结果均以非GAAP为基础。此外,请注意所有2018年的金额已经过调整,以反映我们采用完整的追溯法于2018年12月1日生效的ASC 606。

对于我们的第二季度,总收入为1.035亿美元,比我们的指导范围的高端高出450万美元。超出成本的主要原因是我们的DCI细分市场中几次大型OEM续订的时间安排以及OpenEdge细分市场中直接企业的许可证销售好于预期。 Ipswitch的收入包含在我们的月度业绩中,符合我们的预期。

由于收入增加,本季度每股收益为0.65美元,比我们的指导范围高端0.08美元。与去年第二季度相比,本季度的综合收入为1.035亿美元,按实际汇率计算,比去年同期增长11%,按固定汇率计算则增长48%。这包括由于外汇波动导致的250万美元的负面影响,这符合我们的预期。

按实际汇率计算,许可证收入为2980万美元,与一年前相比增长了32%,按固定汇率计算增长了35%。这一增长主要是由于我们的DCI部门与去年相比更新了更多的多年期OEM合同,以及Ipswitch在5月份的许可收入。

维护和服务收入为7370万美元,按实际汇率计算同比增长5%,按固定汇率计算增长7%。这种增加再次主要是由于增加了Ipswitch。

现在转到我们按部门划分的收入,所有比例都按固定汇率计算。第二季度OpenEdge收入为7130万美元,比2018年第二季度增长6%。现在提醒一下,Ipswitch被报告为我们OpenEdge部分的一部分,并且是增加收入的主要推动力。对于OpenEdge产品线,尽管直接企业的许可收入高于预期,但由于与2018年第二季度的比较困难,其同比下降。

我们的OpenEdge合作伙伴渠道的许可销售继续保持稳定和稳定,包括我们的ISV合作伙伴在云中提供应用程序的SaaS相关账单的强劲季度。对于OpenEdge ISV合作伙伴和直接企业客户,我们在本季度再次实现了超过90%的维护续订率。

转向我们的DCI细分市场。本季度收入为1290万美元,是去年第二季度收入的近4倍。我们预计会有连续和同比大幅增长。但由于今年早些时候几次大型OEM续约的完成超过预期,实际增长甚至更强劲。然而,虽然这些续约的时间推动了第二季度的显着收入增长,但我们对全年的看法并没有改变。

Our results fluctuate quarterly and annually for this segment due to the timing of OEM renewals and the associated accounting treatment under ASC 606. And for these reasons, we believe renewal contract value remains the most effective way to evaluate our DCI business. We continue to expect ACV to be $32 million to $33 million for 2019 consistent with 2018. Since the economic value of our DCI OEM contract is very steady and predictable, we do not expect ACV to fluctuate in a meaningful way going forward.
Turning to our AD&D segment, revenue was $19.2 million for the quarter, down 3% compared to Q2 of 2018. The decrease was due to lower license sales, partially offset by a slight increase in maintenance. I am pleased with the booking performance for the quarter. Total bookings were $20.2 million, up 4% versus last year and rebounding nicely from Q1 with 21% sequential growth. The year-over-year bookings increase was primarily due to higher maintenance renewal bookings for both DevTools and Sitefinity.
The total revenue by geography with our international regions at constant currency. North America revenue was $59.7 million, up 26% versus Q2, 2018. EMEA revenue was $36.1 million, up 3%. Latin America revenue was $4.6 million, up 8% and Asia Pacific revenue was $5.6 million, down 10%.
Total cost and operating expenses was $64.6 million for the quarter, up 10% from Q2 of 2018 primarily due to the addition of Ipswitch. Operating income for Q2 was $39 million, an increase of $5 million or 40% versus Q2 of 2018. In Q2, 2019 operating margin was 38%, an increase of nearly 100 basis points from Q2 of last year and above our expectations due to the increase revenue for the quarter.
Q2 EPS of $0.65 was $0.10 or 18% higher than last year. The increase was primarily due to the higher revenue through quarter, as well as a lower tax rate and the contribution from Ipswitch, partially offset by negative $0.02 impact from foreign exchange.
Moving on to a few balance sheet and cash flow metrics, the company ended the quarter with a strong balance sheet with cash, cash equivalents and short-term investments of $129 million. Our debt principal balance at the end of Q2 was $301 million. This includes the additional $185 million of debt that was used to partially finance the Ipswitch acquisition, part of a new $401 million term loan and revolving credit facility. The facility includes $100 million revolving line of credit and $125 million expansion feature with substantially similar terms, interest rate and covenants as our prior facility. Our leverage ratio is now 1.8x EBITDA well within our capacity and very manageable given our strong, consistent cash flow.
DSO for Q2, 2019 was 42 days, down 14 days sequentially and up two days from Q2 of last year.
Deferred revenue was $150 million at the end of the second quarter, up $14 million compared to Q4 of 2018 due primarily to the addition of Ipswitch deferred revenue balances. And deferred revenue balance does not include $30 million of Ipswitch pre acquisition deferred revenue which is eliminated in purchase accounting under GAAP. We will include this revenue in our non-GAAP guidance and quarterly reporting going forward to better reflect true performance of that business.

由于OEM续订的时间安排以及ASC 606下的相关会计处理,我们的结果每季度和每年都会出现波动。由于这些原因,我们认为续约合同价值仍然是评估我们DCI业务的最有效方式。我们继续预计2019年的ACV将达到3200万美元至3300万美元,与2018年一致。由于我们的DCI OEM合同的经济价值非常稳定且可预测,我们预计ACV不会以有意义的方式向前发展。

转向我们的AD&D细分市场,本季度收入为1,920万美元,较2018年第二季度下降3%。这一下降主要是由于许可证销售额下降,部分被维护略有增加所抵消。我很满意本季度的预订表现。预订总额为2020万美元,比去年增长4%,从第一季度开始大幅反弹,连续​​增长21%。预计同比增长主要是由于DevTools和Sitefinity的维护续订预订量增加。

按地理位置与我们的国际地区按固定汇率计算的总收入。北美收入为5970万美元,比2018年第二季度增长26%.EMEA收入为3610万美元,增长3%。拉丁美洲的收入为460万美元,增长8%,亚太地区收入为560万美元,下降10%。

本季度总成本和运营费用为6460万美元,比2018年第二季度增长10%,主要是由于增加了Ipswitch。第二季度营业收入为3900万美元,比2018年第二季度增加500万美元或40%。二季度,2019年营业利润率为38%,比去年第二季度增加近100个基点,高于我们的预期。增加本季度的收入。

第二季度每股盈利0.65美元为0.10美元,比去年高出18%。这一增长主要是由于季度收入增加,以及较低的税率和Ipswitch的贡献,部分抵消了来自外汇的0.02美元的负面影响。

继续采用一些资产负债表和现金流量指标,该公司在本季度结束时拥有强劲的资产负债表,现金,现金等价物和1.29亿美元的短期投资。我们在第二季度末的债务本金余额为3.01亿美元。这包括用于部分资助Ipswitch收购的额外1.85亿美元债务,这是新的4.01亿美元定期贷款和循环信贷额度的一部分。该设施包括1亿美元的循环信贷额度和1.25亿美元的扩展功能,其条款,利率和契约与我们之前的设施基本相似。我们的杠杆率现在是我们能力范围内的1.8倍EBITDA,并且由于我们强大,稳定的现金流量,我们的管理非常可控。

2019年第二季度的DSO为42天,比去年第二季度连续14天下降了两天。

截至第二季度末,递延收入为1.5亿美元,较2018年第四季度增加1,400万美元,主要是由于增加了Ipswitch递延收入余额。递延收入余额不包括3000万美元的Ipswitch预购递延收入,该收入在GAAP下的采购会计中被抵销。我们将此收入纳入我们的非GAAP指南和季度报告,以更好地反映该业务的真实表现。

Adjusted free cash flow was $40 million for the quarter compared to $43 million in Q2 of last year.
I'd like to turn to our business outlook and guidance for fiscal 2019 and Q3. For our full year revenue guidance is $420 million to $428 million, unchanged from our prior outlook. Turning to operating margin and earnings per share. While our over achievement and profitability for the first half was primarily related to timing of revenue, we are increasing our annual guidance for both of these metrics. This is reflection of our ongoing focus on running our operations efficiently as well as the acceleration of the Ipswitch cost synergies we have identified. We've raised our guidance for 2019 operating margin to a range of 36% to 37%, and increase of 100 basis points at the high end.
For EPS, our guidance is now $2.52 to $2.57, an increase of $0.06 on the low end and $0.05 on a high end compared to our prior guidance. As a reminder, we are not planning on repurchasing additional shares during 2019 as the returns from Ipswitch acquisition are expected to be substantially higher than we would on a share repurchases. We expect to resume share repurchases in fiscal 2020 at a level consistent with our publicly stated capital allocation policy.
Our guidance for adjusted free cash flow is $125 million to $130 million, unchanged from our previous forecast and our expected tax rate is approximately 19%, also unchanged. Based on current exchange rate, total expected negative currency translation impact on our 2019 revenue is now $6.2 million, an increase of $300,000 from the guidance we provided in March, and a negative impact of exchange rate on our full year EPS is now $0.05, an increase of $0.01 compared to prior guidance.
Turning to our guidance for Q3, 2019. We expect revenue to be between $109 million and $112 million, a year-over-year increase of 18% to 21%. The increase revenue is primarily due to the inclusion of a full quarter's revenue from Ipswitch which offsets a step-down in our DCI revenue from Q2 to Q3. DCI revenue is expected to represent approximately 7% of our total revenue in Q3.
The year-over-year currency translation impact on our Q3 revenue is expected to be a negative $1 million. We expect earnings per share of $0.68 to $0.70 for the third quarter, compared to $0.55 in Q3 of last year, an increase of 24% to 27%. This in par related to the Ipswitch contribution but to also our ongoing efforts to manage our business efficiently. Based on current exchange rate, the expected currency translation impact on our Q3 EPS is expected to be a negative $0.01.
Now in closing, I am very pleased with our financial performance in Q2 and the first half. And with our ability to increase our full year guidance for both operating margin and EPS. The expected revenue contribution from Ipswitch is on track and we are actually slightly ahead of plan in realizing the $15 million of cost synergies we've identified. Our cash flows are strong. Overall business is healthy and I look forward to sustaining our momentum in the second half and closing out a successful 2019.

本季度调整后的自由现金流为4000万美元,而去年第二季度为4300万美元。

我想转向2019财年和第三季度的业务展望和指导。我们的全年收入指引为4.2亿美元至4.28亿美元,与我们之前的预测相同。转向营业利润率和每股收益。虽然我们上半年的成就和盈利能力主要与收入时间有关,但我们正在增加这两个指标的年度指引。这反映了我们持续关注有效运营我们的运营以及加速我们已经确定的Ipswitch成本协同效应。我们已将2019年营业利润率的指引上调至36%至37%,并在高端增加100个基点。

对于EPS,我们的指引现在为2.52美元至2.57美元,与我们之前的指引相比,低端增加0.06美元,高端增加0.05美元。提醒一下,由于收购Ipswitch的回报预计将大大高于我们在股票回购时的回报,因此我们并未计划在2019年期间回购额外的股票。我们预计2020财年将恢复股票回购,其水平与我们公布的资本配置政策一致。

我们对调整后自由现金流的指引为1.25亿至1.3亿美元,与我们之前的预测相同,我们的预期税率约为19%,也未变。根据目前的汇率,2019年收入的预计负货币换算总额现在为620万美元,比我们3月份提供的指引增加了300,000美元,汇率对我们全年EPS的负面影响现在是0.05美元,与之前的指导相比增加0.01美元。

转向我们对2019年第3季度的指导。我们预计收入将在1.09亿美元至1.12亿美元之间,同比增长18%至21%。增加的收入主要是由于Ipswitch收入了整个季度的收入,抵消了我们的DCI收入从第二季度到第三季度的逐步下降。 DCI收入预计将占第三季度总收入的约7%。

对我们的第三季度收入的同比货币换算预计将为负100万美元。我们预计第三季度每股收益为0.68美元至0.70美元,而去年第三季度为0.55美元,增幅为24%至27%。这与Ipswitch的贡献相关,也与我们持续努力有效管理业务有关。根据目前的汇率,预期货币换算对我们的第三季度每股盈利预计将为负0.01美元。

现在结束时,我对第二季度和上半年的财务表现非常满意。我们有能力提高运营利润率和每股盈利的全年指导。 Ipswitch的预期收入贡献正在按计划进行,我们实际上略微领先于实现我们已确定的1500万美元成本协同效应的计划。我们的现金流很强劲。整体业务是健康的,我期待在下半年保持我们的势头,并在2019年成功结束。

With that I'd like to turn it over to Brian for Q&A.

有了这个,我想把它转交给Brian进行问答。

Brian Flanagan

Thank you, Paul. That concludes our formal remarks for today. I'd now like to open up the call to your questions. I ask that you keep your remarks to your primary question and one follow up. I'll now hand over to the operator to conduct the Q&A session.

谢谢你,保罗。 这就是我们今天的正式发言。 我现在想打开你的问题的电话。 我请你保留你的主要问题和一个跟进的评论。 我现在交给运营商进行问答环节。

问答环节

[Operator Instructions]
And we will take our first question from Matthew Galinko with National Securities. Please go ahead.

[操作说明]

我们将从Matthew Galinko向National Securities提出第一个问题。 请继续。

****MatthewGalinko

Hi, can you hear me now? How are you guys doing? So was there -- can you highlight any key feature in OpenEdge that brought your highlight EMEA customer back on to maintenance or was there anything in particular that brought them back into the fold?

嗨,你现在能听见我吗? 你们最近还好吗? 那么,您是否可以突出显示OpenEdge中的任何关键功能,这些功能将您的重点EMEA客户带回到维护中,或者是否有任何特别的东西将它们带回到折叠中?

****YogeshGupta

So, Matt, as you know over the last few years we've been making all of the enhancement within OpenEdge have been focused around what we are hearing back from our customers and partners as to what they want to see. So a lot of the 12 is around both a combination of performance, availability as well as readiness for large scale 100% up time or 99.999% uptime for cloud type of environment. So the improved application server that we release last year. The released 12.0 that we released this year. The ongoing effort around continuous availability, all of those things added to this and these guys are all trying to -- they are retailer. They had not really thought of using us for their online presence and so on and now they basically say, hey, this is really great what you guys have done. So we would like to come back and move forward with you and how we modernize and go forward.

所以,Matt,正如你所知,在过去的几年里,我们一直在使OpenEdge中的所有增强功能都集中在我们从客户和合作伙伴那里听到他们想要看到的内容。 因此,12大部分都围绕着性能,可用性以及大规模100%正常运行时间的准备就绪或云类型环境的99.999%正常运行时间。 所以我们去年发布了改进的应用服务器。 我们今年发布的12.0发布。 围绕持续可用性的持续努力,所有这些事情都加入了这个和这些家伙都在努力 - 他们是零售商。 他们并没有真正考虑过将我们用于他们的在线状态等等,现在他们基本上都说,嘿,这真的很棒你们所做的。 因此,我们希望回过头来与您共同前进,以及我们如何实现现代化和前进。

****MatthewGalinko

Got it, thanks. And I guess just as a follow-up for that one. Did you -- were you engaged with that customer while they were off maintenance? So you sort of had an exchange of understanding what they wanted and what is the pipeline book like for the sorts of -- the sorts of potential customers?

知道了谢谢。 我想这只是一个后续行动。 你有没有 - 你在维修期间与那个顾客订婚了吗? 所以你有点交换了他们想要什么,管道书是什么样的 - 各种各样的潜在客户?

****YogeshGupta

So we -- yes, so we -- Matt, we have some amount of engagement with our customers that have left on a periodic basis. I don't think it is clear-- clearly it is not the same as we do for our customers who are on maintenance and who are currently engaged with us. So we do, do that. As you know, Gary has put an emphasis in his team on account management and follow-up. And so therefore that has tremendously helped with our win back efforts that have been going on.

所以我们 - 是的,所以我们 - 马特,我们与定期离开的客户有一定程度的接触。 我认为不是很清楚 - 显然它与我们对维修客户以及目前与我们合作的客户不同。 所以我们这样做,做到这一点。 如您所知,Gary在他的团队中强调了帐户管理和后续工作。 因此,这对我们一直在进行的回击努力有很大帮助。

会议主持员

We will take our next question from Mark Schappel with Benchmark.

我们将从Mark Schappel的Benchmark中提出下一个问题。

****MarkSchappel

Hi, good afternoon. Thanks for taking my question and let me just say nice job on the quarter. Let me just start off, in your prepared remarks you called out new multiyear DCI deal. And I think it was with US internet provider. Couldn't catch all of your remarks. I was wondering if you could just review your comments one more time.

嗨,下午好。 感谢您提出我的问题,让我在本季度说得很好。 让我开始吧,在你准备好的评论中,你召集了新的多年DCI协议。 我认为这是与美国互联网提供商。 无法抓住你的所有评论。 我想知道你是否可以再次审查你的评论。

****YogeshGupta

Yes. So this is one of the well-known household names when it comes to an internet company. They are somebody who is considered one of the leaders in their field. And we signed a significant new DCI OEM deal with them during this quarter which is a six figure, multiyear deal. And it will have meaningful contribution to both revenue and ACV going forward. This is somebody that could easily spend lots of money and try to build something like themselves. They clearly recognize that what we bring to the table is unique and differentiated. So it was tremendously gratifying to us. And it is really the first win of a meaningful OEM, I don't know for a while. So to us, it's really exciting thing.

是。 因此,对于一家互联网公司来说,这是众所周知的家喻户晓的名字之一。 他们是被认为是他们领域领导者之一的人。 我们在本季度与他们签订了一项重要的新DCI OEM协议,这是一项六位数的多年合约。 它将对未来的收入和ACV产生有意义的贡献。 这个人可以很容易地花很多钱并尝试建立类似自己的东西。 他们清楚地认识到,我们带来的是独特和差异化的。 所以这对我们来说非常令人满意。 这真的是有意义的OEM的第一次胜利,我暂时不知道。 所以对我们来说,这真是令人兴奋的事情。

****MarkSchappel

That's actually why I asked the question because it was, to my attention, one of the first new meaningful OEM wins in a while as well. That's good. Congratulations on that. Real quick on Ipswitch. In your prepared remarks, I believe you stated that $15 million in synergies that you plan for that acquisition have already been completed. Did I catch that correctly?

这就是为什么我问这个问题的原因,因为在我看来,这是第一个新的有意义的OEM赢得了一段时间。 非常好。 恭喜你。 真正快速的Ipswitch。 在您准备好的评论中,我相信您说已经完成了您为此次收购计划的1500万美元的协同效应。 我抓到了吗?

****YogeshGupta

No, no. What we had -- what we specifically said was that the bulk of those $15 million of cost synergies are completed. And we are slightly ahead of plan. So, no, we are not all completed but the bulk of them are. We are slightly ahead of plan and which is why we were comfortable increasing our EPS guidance for the full year.

不,不。 我们所拥有的 - 我们具体说的是,这1500万美元的成本协同效应中的大部分都已完成。 我们略微领先于计划。 所以,不,我们并非全部完成,但其中大部分都是。 我们略微领先于计划,这也是我们为全年提高EPS指导的原因。

****MarkSchappel

Hey, great. Thanks for the clarification. And then very little if any commentary on the Kinvey and DataRPM products in the prepared remarks. Are these products still in pipeline building mode?

嘿,太好了。 谢谢你的澄清。 然后在准备好的评论中对Kinvey和DataRPM产品的任何评论都很少。 这些产品是否仍处于管道建设模式?

****YogeshGupta

Yes. We continue to go to market with them. As I said before, the reaction from our customers and partners to our initiatives continuous to be very positive. And we see quite a bit of demand in the HIPAA-compliant version of Kinvey within the healthcare vertical. But we also see some applicability in other verticals as well. So we do see traction but we are not at a point where we are ready to disclose metrics and we continue to manage our go-to-market activities and spend to be aligned with the demand we are seeing, Mark.
End of Q&A

是。 我们继续与他们一起上市。 正如我之前所说,客户和合作伙伴对我们的举措的反应持续非常积极。 我们在医疗保健行业的HIPAA兼容版Kinvey中看到了相当多的需求。 但我们也看到其他垂直行业也有一些适用性。 所以我们确实看到牵引力,但我们还没有准备好披露指标,我们继续管理我们的市场活动,并花费与我们看到的需求保持一致,马克。

问答结束

会议主持员

Thank you. And it does conclude today's question-and-answer session. I'd now like to turn the conference back over to Mr. Brian again for any additional or closing remarks.

谢谢。 它确实结束了今天的问答环节。 我现在想再次将会议转回Brian先生,以获取任何补充或结束语。

Brian Flanagan

Thank you and thank you all for joining the call today. As a reminder, we plan on releasing financial results for our fiscal third quarter of 2019 on Thursday, September 26, 2019 after the financial markets closed and holding the conference call the same day at 5 PM Eastern Time. I'll now turn the call over to Yogesh for his closing remarks.

谢谢你们,感谢大家今天加入这个电话会议。 提醒一下,我们计划在金融市场关闭后于2019年9月26日星期四公布2019财年第三季度的财务业绩,并在东部时间下午5点召开电话会议。 我现在将电话转到Yogesh的闭幕词。

Yogesh Gupta

Thank you, Brian. We maintained our momentum in Q2 and are well positioned for a successful 2019 as we head into the second half of the year. There are lots of exciting things happening at Progress right now and I am enthusiastic about our future. And our ability to create real value for our shareholders. I thank you again for your continued support and for joining us on our call today. Thank you. Bye, bye.

谢谢你,Brian。 我们在第二季度保持了良好的势头,并且在我们进入下半年进入2019年时取得了成功。 现在Progress正在发生许多令人兴奋的事情,我对未来充满热情。 我们有能力为股东创造真正的价值。 我再次感谢你们的继续支持和今天我们的来电。 谢谢。 再见。

会议主持员

Thank you. That does conclude today's conference. Thank you all for your participation. You may now disconnect.

谢谢。 这确实结束了今天的会议。 谢谢大家的参与。 您现在可以断开连接。

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