NASDAQ$PRGS

Progress Software Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Progress Q3 2024 financial results topped high end of estimates and expects to close ShareFile acquisition in fiscal 2024.

Progress announced its Q3 2024 financial results, with revenue and non-GAAP revenue increasing by 2% year-over-year to $179 million. Diluted earnings per share increased by 55% to $0.65, and non-GAAP diluted earnings per share increased by 17% to $1.26. The company also announced a definitive agreement to acquire ShareFile for $875 million in cash.

  • Revenue and non-GAAP revenue increased 2% year-over-year to $179 million.
  • Annualized Recurring Revenue (ARR) of $582 million remained relatively flat year-over-year on a constant currency basis.
  • Operating margin was 23% and non-GAAP operating margin was 41%.
  • Diluted earnings per share was $0.65, a 55% increase, and non-GAAP diluted earnings per share was $1.26, a 17% increase.

Headline financials

Total Revenue

$179M

Previous: $175M+2.1%
EPS

$0.65

Previous: $1.08-39.8%
Operating Margin

23.0%

No prior period
Capital Expenditures

-$2.33M

Previous: -$3.18M+26.8%
Free Cash Flow

$26.1M

Previous: $15.9M+64.2%
Net Income

$28.5M

Previous: $19.1M+49.0%
Operating Income

$40.3M

Previous: $29.4M+37.4%
Gross Profit

$150M

Previous: $142M+5.3%
Cash & Equivalents

$233M

Previous: $138M+68.6%
Total Assets

$1.62B

Previous: $1.6B+1.4%
R&D Expense

$34.7M

No prior period
Stock-Based Comp

$10.6M

Previous: $10.1M+4.8%

Revenue & EPS history

Progress Software · Revenue · Quarterly

$179M

Q3 2024+2.1%vs Q3 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 fourth quarter ending November 30, 2024. Our updated guidance for FY 2024 and Q4 2024 assumes one month of contribution from our proposed acquisition of ShareFile.

Tailwinds

  • FY 2024 Revenue: $745 - $755 million
  • FY 2024 Diluted EPS: $1.69 - $1.81
  • FY 2024 Non-GAAP Diluted EPS: $4.75 - $4.85
  • Q4 2024 Revenue: $207 - $217 million
  • Q4 2024 Non-GAAP Diluted EPS: $1.15 - $1.25

Headwinds

  • FY 2024 Operating Margin: 16% - 17%
  • FY 2024 Non-GAAP Operating Margin: 39%
  • FY 2024 Effective Tax Rate: 17%
  • Q4 2024 Diluted EPS: $0.17 - $0.27
  • Our updated guidance for FY 2024 and Q4 2024 assumes one month of contribution from our proposed acquisition of ShareFile.

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 2024

Historical avgQ3 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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