NASDAQ$PRGS

Progress Software Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Progress Software's first quarter results for 2022 were announced, exceeding guidance and increasing full-year guidance.

Progress Software reported a strong first quarter in 2022, with revenue of $144.9 million, a 19% increase year-over-year. Diluted earnings per share were $0.46, a 10% increase compared to the same quarter last year. The company's annualized recurring revenue (ARR) reached $479 million, a 12% increase year-over-year.

  • Revenue increased by 19% year-over-year to $144.9 million.
  • Non-GAAP revenue increased by 12% year-over-year to $147.5 million.
  • Annualized Recurring Revenue (ARR) increased by 12% year-over-year to $479 million.
  • Diluted earnings per share increased by 10% year-over-year to $0.46.

Headline financials

Total Revenue

$145M

Previous: $121M+19.5%
EPS (adj)

$0.97

Previous: $0.95+2.1%
Annualized Recurring Revenue

$479M

Previous: $432M+10.9%
Capital Expenditures

-$831K

Previous: -$1.17M+28.7%
Free Cash Flow

$19.6M

Previous: $17.8M+10.3%
Net Income

$20.5M

Previous: $19M+7.9%
Operating Income

$29.4M

Previous: $27.4M+7.4%
Gross Profit

$122M

Previous: $103M+17.8%
Cash & Equivalents

$172M

Previous: $108M+59.4%
Total Assets

$1.35B

Previous: $1.03B+31.7%
Stock-Based Comp

$8.11M

Previous: $6.78M+19.6%

Revenue & EPS history

Progress Software · Revenue · Quarterly

$145M

Q1 2022+19.5%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Progress Software · $145M total across 2 segments · Q1 2022

  • Maintenance
    $102M+16.2%
  • Software Licenses
    $42.8M+28.3%

Forward guidance

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

Tailwinds

  • FY 2022 Revenue: $601 - $609 million (GAAP)
  • FY 2022 Revenue: $609 - $617 million (Non-GAAP)
  • FY 2022 Diluted earnings per share: $2.16 - $2.23 (GAAP)
  • FY 2022 Diluted earnings per share: $4.01 - $4.09 (Non-GAAP)
  • Q2 2022 Diluted earnings per share: $0.62 - $0.64 (GAAP)

Headwinds

  • Expected negative currency translation impact on fiscal year 2022 GAAP and non-GAAP revenue of approximately $9.2 million.
  • Expected negative currency translation impact on fiscal year 2022 GAAP and non-GAAP diluted earnings per share of approximately $0.03.
  • Q2 2022 Revenue: $143 - $146 million (GAAP)
  • Q2 2022 Revenue: $145 - $148 million (Non-GAAP)
  • Q2 2022 Diluted earnings per share: $0.94 - $0.96 (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 2022

Historical avgQ1 2022

+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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