Progress Software (PRGS - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 14.42% and increased 5% year over year.
Non-GAAP revenues of $165.6 million beat the consensus mark by 4.36% and increased 12.3% year over year.
On a constant-currency basis, annualized recurring revenues came in at $569 million, up 20% year over year.
Quarter Details
Software license revenues were $57.6 million, up 34.7% year over year. Maintenance and service revenues were $106.7 million, up 4.4% year over year.
Sales and marketing expenses, as a percentage of revenues, decreased 250 basis points (bps) from the year-ago quarter’s level to 20.6%.
Product development expenses, as a percentage of revenues, decreased 130 bps from the year-ago quarter’s tally to 18.5%.
General and administrative expenses, as a percentage of revenues, decreased 30 bps from the year-ago quarter’s level to 11.4%.
Progress reported a non-GAAP operating margin of 43.7%, which expanded 390 bps year over year.
Balance Sheet
As of Feb 28, 2023, cash and cash equivalents (and short-term investments) were $123 million compared with $251.8 million as of Nov 30, 2022.
Progress generated $47 million in adjusted free cash flow compared with $37.5 million in the previous quarter.
Guidance
For second-quarter fiscal 2023, Progress expects non-GAAP revenues between $168 million and $172 million. The Zacks Consensus Estimate for revenues is currently pegged at $170.7 million, indicating growth of 13.1% from the year-ago quarter’s reported figure.
Progress expects non-GAAP earnings to be 88-92 cents per share. The consensus mark is currently pegged at $1.02 per share, indicating a decline of 1.92% from the year-ago quarter’s reported figure.
For fiscal 2023, non-GAAP revenues are projected between $680 million and $688 million compared with $610.6 million reported in fiscal 2022.
Non-GAAP operating margin is expected between 38% and 39% for fiscal 2023.
Non-GAAP earnings are projected between $4.09 and $4.17 per share for fiscal 2023.
The Zacks Consensus Estimate for fiscal 2023 revenues and earnings is currently pegged at $680.61 million and $4.14 per share, respectively.
Adjusted free cash flow is expected between $175 million and $185 million for fiscal 2023.
Zacks Rank & Stocks to Consider
Progress currently has a Zacks Rank #3 (Hold).
Investors interested in the Zacks Computer & Technology sector are eagerly awaiting earnings releases from players like International Business Machines (IBM - Free Report) , GAN Limited (GAN - Free Report) and Juniper Networks (JNPR - Free Report) .
IBM, currently carrying a Zacks Rank #2 (Buy), is set to release its first-quarter 2023 results on Apr 19. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IBM’s first-quarter 2023 earnings has been steady at $1.27 per share in the past 30 days.
GAN Limited, carrying a Zacks Rank #2, is set to report its fourth-quarter 2022 results on Mar 30.
The Zacks Consensus Estimate for GAN’s fourth-quarter 2022 loss is pegged at 14 cents per share, wider by a penny in the past 30 days.
Juniper, another Zacks Rank #2 stock, is set to report its first-quarter 2023 results on Apr 25.
The consensus mark for JNPR earnings is pegged at 42 cents per share, unchanged in the past 30 days.
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Progress Software (PRGS - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 14.42% and increased 5% year over year.
Non-GAAP revenues of $165.6 million beat the consensus mark by 4.36% and increased 12.3% year over year.
On a constant-currency basis, annualized recurring revenues came in at $569 million, up 20% year over year.
Quarter Details
Software license revenues were $57.6 million, up 34.7% year over year. Maintenance and service revenues were $106.7 million, up 4.4% year over year.
Sales and marketing expenses, as a percentage of revenues, decreased 250 basis points (bps) from the year-ago quarter’s level to 20.6%.
Product development expenses, as a percentage of revenues, decreased 130 bps from the year-ago quarter’s tally to 18.5%.
General and administrative expenses, as a percentage of revenues, decreased 30 bps from the year-ago quarter’s level to 11.4%.
Progress reported a non-GAAP operating margin of 43.7%, which expanded 390 bps year over year.
Balance Sheet
As of Feb 28, 2023, cash and cash equivalents (and short-term investments) were $123 million compared with $251.8 million as of Nov 30, 2022.
Progress generated $47 million in adjusted free cash flow compared with $37.5 million in the previous quarter.
Guidance
For second-quarter fiscal 2023, Progress expects non-GAAP revenues between $168 million and $172 million. The Zacks Consensus Estimate for revenues is currently pegged at $170.7 million, indicating growth of 13.1% from the year-ago quarter’s reported figure.
Progress expects non-GAAP earnings to be 88-92 cents per share. The consensus mark is currently pegged at $1.02 per share, indicating a decline of 1.92% from the year-ago quarter’s reported figure.
For fiscal 2023, non-GAAP revenues are projected between $680 million and $688 million compared with $610.6 million reported in fiscal 2022.
Non-GAAP operating margin is expected between 38% and 39% for fiscal 2023.
Non-GAAP earnings are projected between $4.09 and $4.17 per share for fiscal 2023.
The Zacks Consensus Estimate for fiscal 2023 revenues and earnings is currently pegged at $680.61 million and $4.14 per share, respectively.
Adjusted free cash flow is expected between $175 million and $185 million for fiscal 2023.
Zacks Rank & Stocks to Consider
Progress currently has a Zacks Rank #3 (Hold).
Investors interested in the Zacks Computer & Technology sector are eagerly awaiting earnings releases from players like International Business Machines (IBM - Free Report) , GAN Limited (GAN - Free Report) and Juniper Networks (JNPR - Free Report) .
IBM, currently carrying a Zacks Rank #2 (Buy), is set to release its first-quarter 2023 results on Apr 19. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IBM’s first-quarter 2023 earnings has been steady at $1.27 per share in the past 30 days.
GAN Limited, carrying a Zacks Rank #2, is set to report its fourth-quarter 2022 results on Mar 30.
The Zacks Consensus Estimate for GAN’s fourth-quarter 2022 loss is pegged at 14 cents per share, wider by a penny in the past 30 days.
Juniper, another Zacks Rank #2 stock, is set to report its first-quarter 2023 results on Apr 25.
The consensus mark for JNPR earnings is pegged at 42 cents per share, unchanged in the past 30 days.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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