NASDAQ$PRGS

Progress Software Corporation · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Progress reported strong Q4 2024 and full-year results, with significant ARR growth and the acquisition of ShareFile.

Progress reported a 21% year-over-year increase in both revenue and non-GAAP revenue, reaching $215 million. Annualized Recurring Revenue (ARR) grew by 46% year-over-year to $842 million. The company's operating margin was 10%, while the non-GAAP operating margin was 37%. Diluted earnings per share decreased by 91% to $0.03, but non-GAAP diluted earnings per share increased by 30% to $1.33.

  • Revenue and non-GAAP revenue increased by 21% year-over-year.
  • ARR grew by 46% year-over-year.
  • Non-GAAP diluted earnings per share increased by 30% year-over-year.
  • Completed the acquisition of ShareFile.

Headline financials

Total Revenue

$215M

Previous: $178M+21.1%
EPS (adj)

$1.33

Previous: $1.02+30.4%
Operating Margin

10.0%

No prior period
Capital Expenditures

-$2.88M

Previous: -$2.39M-20.5%
Net Income

$1.15M

Previous: $15.3M-92.5%
Operating Income

$21.5M

Previous: $22.5M-4.6%
Gross Profit

$178M

Previous: $143M+24.5%
R&D Expense

$41.2M

Previous: $34M+21.2%
Stock-Based Comp

$11.7M

Previous: $10.4M+12.7%

Revenue & EPS history

Progress Software · Revenue · Quarterly

$215M

Q4 2024+21.1%vs Q4 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, 2025 and the fiscal first quarter ending February 28, 2025, together with actual results for the same periods in the fiscal year ending November 30, 2024.

Tailwinds

  • FY 2025 Revenue: $958 - $970 million (GAAP and Non-GAAP)
  • FY 2025 Diluted earnings per share: $1.08 - $1.23 (GAAP)
  • FY 2025 Diluted earnings per share: $5.00 - $5.12 (Non-GAAP)
  • FY 2025 Operating margin: 14% - 15% (GAAP)
  • FY 2025 Operating margin: 37% - 38% (Non-GAAP)

Headwinds

  • Expected negative currency translation impact on fiscal year 2025 business outlook compared to 2024 exchange rates is approximately $5.6 million on revenue.
  • GAAP and non-GAAP diluted earnings per share for fiscal year 2025 is approximately $0.03.
  • Expected negative currency translation impact on fiscal Q1 2025 business outlook compared to 2024 exchange rates is approximately $1.8 million on revenue.
  • GAAP and non-GAAP diluted (loss) earnings per share for fiscal Q1 2025 is approximately $0.01.
  • The ultimate resolution of inquiries, investigations and legal claims regarding the MOVEit Vulnerability remains uncertain, while the ultimate resolution of these matters could result in losses that may be material to our financial results for a particular period

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 Q4 2024

Historical avgQ4 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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