NASDAQ$PRGS

Progress Software Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Progress Software's first quarter of 2021 marked by revenue and EPS exceeding guidance, and full year guidance increased.

Progress announced strong financial results for the first quarter ended February 28, 2021, with revenue increasing 11% year-over-year to $121.3 million and non-GAAP diluted earnings per share increasing 25% to $0.95. The company's performance exceeded expectations across product lines and key metrics, driven by the acquisition of Chef Software. As a result, Progress increased its full year guidance for revenue, earnings per share, and free cash flow.

  • Revenue increased 11% year-over-year to $121.3 million.
  • Non-GAAP revenue increased 16% year-over-year to $131.8 million.
  • ARR increased 22% year-over-year to $432 million.
  • Non-GAAP diluted earnings per share increased 25% to $0.95.

Headline financials

Total Revenue

$121M

Previous: $110M+10.6%
EPS (adj)

$0.95

Previous: $0.76+25.0%
Annualized Recurring Revenue

$432M

No prior period
Capital Expenditures

-$1.17M

Previous: -$1.15M-1.6%
Free Cash Flow

$17.8M

Previous: $20M-10.9%
Net Income

$19M

Previous: $21.1M-10.2%
Operating Income

$27.4M

Previous: $30.7M-10.7%
Gross Profit

$103M

Previous: $94.8M+9.0%
Cash & Equivalents

$108M

Previous: $161M-33.1%
Total Assets

$1.03B

Previous: $890M+15.4%
Stock-Based Comp

$6.78M

Previous: $6.05M+12.1%

Revenue & EPS history

Progress Software · Revenue · Quarterly

$121M

Q1 2021+10.6%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Progress Software · $121M total across 2 segments · Q1 2021

  • Maintenance
    $88M
  • Software Licenses
    $33.3M

Forward guidance

Progress provides the following guidance for the fiscal year ending November 30, 2021 and the fiscal second quarter ending May 31, 2021:

Tailwinds

  • FY 2021 Revenue: $493 - $501 million (GAAP) and $519 - $527 million (Non-GAAP)
  • FY 2021 Diluted EPS: $1.56 - $1.60 (GAAP) and $3.38 - $3.42 (Non-GAAP)
  • FY 2021 Cash from operations / Adjusted free cash flow: $157 - $162 million (GAAP) and $155 - $160 million (Non-GAAP)
  • Q2 2021 Revenue: $112 - $116 million (GAAP) and $119 - $123 million (Non-GAAP)
  • Q2 2021 Diluted EPS: $0.25 - $0.27 (GAAP) and $0.72 - $0.74 (Non-GAAP)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.8%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.1%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+19.8%

Q1 2019

Best reaction

-15.5%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-9.3%-4.0%
Q4 2025+10.7%+11.1%+4.5%
Q3 2025+3.2%+8.4%-1.8%
Q2 2025+1.8%+0.3%-4.0%
Q1 2025+12.1%+9.0%+16.7%
Q4 2024-9.0%-15.8%-10.1%
Q3 2024+12.4%+16.6%+14.5%
Q2 2024+12.2%+10.8%+17.3%
Q1 2024-0.2%+1.0%-3.9%
Q4 2023+4.7%+7.2%+4.4%
Q3 2023-6.2%-6.4%-9.9%
Q2 2023+8.4%+10.0%+9.0%
Q1 2023-5.2%-2.4%-6.6%
Q4 2022-3.7%-3.4%+8.0%
Q3 2022+2.5%+3.0%+20.1%
Q2 2022-9.2%-11.4%-8.2%
Q1 2022+3.3%+5.3%+8.3%
Q4 2021-6.2%-3.1%-2.0%
Q3 2021+17.5%+8.3%+13.1%
Q2 2021+2.2%+2.7%+1.6%
Q1 2021+5.9%+4.5%+11.5%
Q4 2020-7.0%-10.2%-8.6%
Q3 2020-1.6%+1.3%-3.0%
Q2 2020+2.5%+5.6%-5.8%
Q1 2020-0.7%-3.7%+13.4%
Q4 2019+8.4%+4.2%-0.5%
Q3 2019-3.8%-6.2%-2.2%
Q2 2019+9.4%+1.7%+9.5%
Q1 2019+19.8%+20.6%+22.8%
Q4 2018-4.7%-4.1%+3.0%
Q3 2018-15.5%-17.5%-25.4%
Q2 2018+14.4%+8.3%+6.8%
Q1 2018-0.4%-3.6%-4.1%
Q4 2017+15.6%+15.9%+6.2%
Q3 2017+0.5%+3.4%+13.4%
Q2 2017+1.9%+2.7%+6.8%
Q1 2017+3.7%+3.0%+5.0%
Q4 2016-14.3%-12.6%-10.5%
Q3 2016-2.6%-1.5%-4.5%
Q2 2016+10.9%+12.2%+17.4%
Q1 2016-4.7%
Q4 2015-0.7%
Q3 2015-11.0%
Q2 2015+8.7%
Q1 2015-5.6%
Q4 2014-4.3%
Q3 2014+4.3%
Q2 2014+8.4%
Q1 2014-3.2%
Q4 2013-5.2%
Q3 2013+4.4%
Q2 2013+7.3%
Q1 2013+1.4%
Q4 2012+2.2%
Q3 2012+7.9%
Q2 2012-0.9%
Q1 2012+1.1%
Q4 2008+4.3%
Q4 2011+4.3%
Q3 2011+2.6%
Q2 2011-1.4%
Q1 2010-2.3%
Q1 2011-4.7%
Q4 2010+5.8%
Q2 2010+5.8%
Q4 2009+5.4%
Q3 2009+5.4%
Q3 2010+5.4%

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