Progress Software (PRGS - Free Report) reported its third-quarter fiscal 2022 non-GAAP earnings of $1.00 per share, which beat the Zacks Consensus Estimate by 3.09% but decreased 15.3% year over year.
Non-GAAP revenues of $153.1 million surpassed the consensus mark by 3.42% and increased 0.3% year over year, driven by strong demand for Chef, OpenEdge, DataDirect and Sitefinity solutions.
The reported figure was better than management’s guided range of $147-$150 million.
On a constant-currency basis, annualized recurring revenues came in at $495 million, up 13% year over year.
Progress Software Corporation Price, Consensus and EPS Surprise
Quarter Details
Software license revenues were $47.6 million, down 8.3% year over year. Maintenance and service revenues were $103.6 million, up 8.5% year over year.
Sales and marketing expenses, as a percentage of revenues, increased 270 basis points (bps) from the year-ago quarter’s level to 22.9%.
Product development expenses, as a percentage of revenues, increased 160 bps from the year-ago quarter’s tally to 18.9%.
General and administrative expenses, as a percentage of revenues, increased 220 bps from the year-ago quarter’s level to 13.3%.
Progress reported a non-GAAP operating margin of 39.2%, which contracted 740 bps year over year.
Balance Sheet
As of Aug 31, 2022, cash and cash equivalents (and short-term investments) were $225.9 million compared with $225.9 million as of May 31, 2022.
Progress Software generated $39.2 million in adjusted free cash flow compared with $68 million in the previous quarter.
Guidance
For fourth-quarter fiscal 2022, Progress Software expects non-GAAP revenues between $158 million and $166 million. The Zacks Consensus Estimate for revenues is currently pegged at $148.01 million, indicating a decline of 3.01% from the year-ago quarter’s reported figure.
Progress Software expects non-GAAP earnings to be in the range of $1.06-$1.10 per share. The consensus mark is currently pegged at 97 cents per share, indicating a decline of 17.8% from the year-ago quarter’s reported figure.
For fiscal 2022, non-GAAP revenues are projected between $609 million and $617 million compared with $557 million reported in fiscal 2021.
Non-GAAP operating margin is expected between 39% and 40% compared with 41% reported in fiscal 2021.
Non-GAAP earnings are projected between $4.08 and $4.12 per share compared with $3.87 reported in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2022 revenues and earnings is currently pegged at $611.86 million and $4.08 per share, respectively.
Zacks Rank & Stocks to Pick
Progress Software currently has a Zacks Rank #3 (Hold).
Investors interested in the Zacks Computer & Technology sector are eagerly awaiting earnings releases from players like ASGN (ASGN - Free Report) , Amkor Technology (AMKR - Free Report) and F5 (FFIV - Free Report) .
ASGN, a Zacks Rank #2 (Buy) stock, is likely to release third-quarter 2022 results on Oct 26. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for ASGN’s third-quarter 2022 earnings has been steady at $1.78 per share in the past 30 days.
Amkor, carrying a Zacks Rank #2, is set to report third-quarter 2022 results on Oct 24.
The Zacks Consensus Estimate for AMKR’s third-quarter 2022 earnings is pegged at 92 cents per share, unchanged in the past 30 days.
F5, another Zacks Rank #2 stock, is likely to report fourth-quarter fiscal 2022 results on Oct 25.
The consensus mark for F5 earnings is pegged at $2.54 per share, unchanged in the past 30 days.
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Progress Software (PRGS - Free Report) reported its third-quarter fiscal 2022 non-GAAP earnings of $1.00 per share, which beat the Zacks Consensus Estimate by 3.09% but decreased 15.3% year over year.
Non-GAAP revenues of $153.1 million surpassed the consensus mark by 3.42% and increased 0.3% year over year, driven by strong demand for Chef, OpenEdge, DataDirect and Sitefinity solutions.
The reported figure was better than management’s guided range of $147-$150 million.
On a constant-currency basis, annualized recurring revenues came in at $495 million, up 13% year over year.
Progress Software Corporation Price, Consensus and EPS Surprise
Quarter Details
Software license revenues were $47.6 million, down 8.3% year over year. Maintenance and service revenues were $103.6 million, up 8.5% year over year.
Sales and marketing expenses, as a percentage of revenues, increased 270 basis points (bps) from the year-ago quarter’s level to 22.9%.
Product development expenses, as a percentage of revenues, increased 160 bps from the year-ago quarter’s tally to 18.9%.
General and administrative expenses, as a percentage of revenues, increased 220 bps from the year-ago quarter’s level to 13.3%.
Progress reported a non-GAAP operating margin of 39.2%, which contracted 740 bps year over year.
Balance Sheet
As of Aug 31, 2022, cash and cash equivalents (and short-term investments) were $225.9 million compared with $225.9 million as of May 31, 2022.
Progress Software generated $39.2 million in adjusted free cash flow compared with $68 million in the previous quarter.
Guidance
For fourth-quarter fiscal 2022, Progress Software expects non-GAAP revenues between $158 million and $166 million. The Zacks Consensus Estimate for revenues is currently pegged at $148.01 million, indicating a decline of 3.01% from the year-ago quarter’s reported figure.
Progress Software expects non-GAAP earnings to be in the range of $1.06-$1.10 per share. The consensus mark is currently pegged at 97 cents per share, indicating a decline of 17.8% from the year-ago quarter’s reported figure.
For fiscal 2022, non-GAAP revenues are projected between $609 million and $617 million compared with $557 million reported in fiscal 2021.
Non-GAAP operating margin is expected between 39% and 40% compared with 41% reported in fiscal 2021.
Non-GAAP earnings are projected between $4.08 and $4.12 per share compared with $3.87 reported in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2022 revenues and earnings is currently pegged at $611.86 million and $4.08 per share, respectively.
Zacks Rank & Stocks to Pick
Progress Software currently has a Zacks Rank #3 (Hold).
Investors interested in the Zacks Computer & Technology sector are eagerly awaiting earnings releases from players like ASGN (ASGN - Free Report) , Amkor Technology (AMKR - Free Report) and F5 (FFIV - Free Report) .
ASGN, a Zacks Rank #2 (Buy) stock, is likely to release third-quarter 2022 results on Oct 26. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for ASGN’s third-quarter 2022 earnings has been steady at $1.78 per share in the past 30 days.
Amkor, carrying a Zacks Rank #2, is set to report third-quarter 2022 results on Oct 24.
The Zacks Consensus Estimate for AMKR’s third-quarter 2022 earnings is pegged at 92 cents per share, unchanged in the past 30 days.
F5, another Zacks Rank #2 stock, is likely to report fourth-quarter fiscal 2022 results on Oct 25.
The consensus mark for F5 earnings is pegged at $2.54 per share, unchanged in the past 30 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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