NASDAQ$PRGS

Progress Software Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Progress Software's Q3 2021 financial performance significantly exceeded expectations, with revenue and EPS surpassing guidance, and full-year 2021 guidance was raised again.

Progress reported strong Q3 2021 results, with revenue reaching $147.4 million, a 34% increase year-over-year. Diluted earnings per share were $0.70, up 32% compared to the same quarter last year. The company also announced an agreement to acquire Kemp Technologies for $258 million in cash.

  • Revenue of $147.4 million increased 34% year-over-year.
  • Non-GAAP revenue of $152.6 million increased 38% year-over-year.
  • Diluted earnings per share was $0.70, a 32% increase year-over-year.
  • Non-GAAP diluted earnings per share was $1.18, a 51% increase year-over-year.

Headline financials

Total Revenue

$147M

Previous: $110M+34.4%
EPS (adj)

$1.18

Previous: $0.78+51.3%
Annualized Recurring Revenue

$444M

No prior period
Capital Expenditures

-$2.74M

Previous: -$3.42M+19.8%
Free Cash Flow

$28.2M

Previous: $20.6M+37.3%
Net Income

$31M

Previous: $24M+29.2%
Operating Income

$46M

Previous: $33.2M+38.7%
Gross Profit

$127M

Previous: $95M+34.1%
Cash & Equivalents

$380M

Previous: $221M+72.2%
Total Assets

$1.28B

Previous: $919M+38.7%
Stock-Based Comp

$6.84M

Previous: $5.69M+20.3%

Revenue & EPS history

Progress Software · Revenue · Quarterly

$147M

Q3 2021+34.4%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Progress Software · $147M total across 2 segments · Q3 2021

  • Maintenance
    $95.5M+16.2%
  • Software Licenses
    $51.9M+88.7%

Forward guidance

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

Tailwinds

  • FY 2021 GAAP Revenue: $520 - $524 million
  • FY 2021 Non-GAAP Revenue: $548 - $552 million
  • FY 2021 GAAP Diluted earnings per share: $1.56 - $1.58
  • FY 2021 Non-GAAP Diluted earnings per share: $3.68 - $3.70
  • Q4 2021 GAAP Revenue: $129 - $133 million

Headwinds

  • Q4 2021 GAAP Diluted earnings per share: $0.13 - $0.15
  • Based on current exchange rates, the expected positive currency translation impact on Progress' fiscal year 2021 business outlook compared to 2020 exchange rates is approximately $6.8 million on GAAP and non-GAAP revenue
  • The expected positive currency translation impact on Progress' fiscal Q4 2021 business outlook compared to 2020 exchange rates on GAAP and non-GAAP revenue is approximately $0.6 million.
  • The expected positive impact on GAAP and non-GAAP diluted Q4 2021 earnings per share is $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.

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 Q3 2021

Historical avgQ3 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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