NASDAQ$PRGS

Progress Software Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Second quarter revenues and earnings per share were ahead of guidance, and the full year revenue and earnings per share outlook was raised.

Progress announced strong financial results for the second quarter of fiscal year 2024, with revenues and EPS exceeding forecasts and ARR up by 1%. The company is focused on M&A, sales execution, customer success, innovation, and margins.

  • Revenue and non-GAAP revenue reached $175 million, a 2% year-over-year decrease on both actual and constant currency basis.
  • Annualized Recurring Revenue (ARR) was $579 million, reflecting a 1% year-over-year increase on a constant currency basis.
  • Operating margin was 16%, while non-GAAP operating margin was 38%.
  • Diluted earnings per share increased by 37% to $0.37, compared to $0.27 in the same quarter last year, and non-GAAP diluted earnings per share increased by 3% to $1.09, compared to $1.06 last year.

Headline financials

Total Revenue

$175M

Previous: $178M-1.8%
EPS

$0.37

Previous: $1.06-65.1%
Operating Margin

16.0%

No prior period
Capital Expenditures

-$1.26M

Previous: -$1.97M+35.8%
Free Cash Flow

$14.9M

Previous: $10.1M+47.5%
Net Income

$16.2M

Previous: $12.1M+33.9%
Operating Income

$27.1M

Previous: $23M+17.9%
Gross Profit

$143M

Previous: $144M-1.0%
Cash & Equivalents

$190M

Previous: $126M+51.7%
Total Assets

$1.59B

Previous: $1.6B-1.0%
R&D Expense

$35.4M

No prior period
Stock-Based Comp

$12M

Previous: $10.3M+16.5%

Revenue & EPS history

Progress Software · Revenue · Quarterly

$175M

Q2 2024-1.8%vs Q2 2023
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Progress Software · $175M total across 2 segments · Q3 2023

  • Maintenance
    $124M+20.1%
  • Software Licenses
    $50.5M+6.1%

Forward guidance

Progress provides the following guidance for the fiscal year ending November 30, 2024 and the fiscal third quarter ending August 31, 2024:

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 Q2 2024

Historical avgQ2 2024

+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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