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Progress Software (PRGS), Microsoft Team Up for India Expansion

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Progress Software (PRGS - Free Report) is collaborating with Microsoft to extend the coverage of the Chef DevSecOps portfolio to India. Progress division Chef, in collaboration with Microsoft, offers automation tools that accelerate the enterprise journey to cloud computing.

Per the latest collaboration, Microsoft Azure customers and partners in India will have increased access to all Chef products, including Chef InSpec and the recently released Chef Cloud Security solutions. This will enable accelerated cloud migration among these customers with continuous compliance and misconfigurations detection.

Progress is benefiting from strong demand for its solutions including Chef, DataDirect, DevTools, OpenEdge and Sitefinity. Strong contribution from Kemp is also driving top-line growth. Expansion into India is expected to further boost prospects.

Progress’ expanding portfolio is also noteworthy. The company recently announced a portfolio expansion with the launch of new solutions, Telerik, Kendo UI and Telerik Test Studio. Progress also launched ThemeBuilder Pro with the latest R3 2022 release.

Progress is riding on a solid portfolio and growing clientele. Progress reported $486 million in annualized recurring revenues, up 13% on a constant currency basis at the end of the second quarter of 2022. The trailing 12-month net retention rate was approximately 101%, driven by portfolio strength.

For third-quarter fiscal 2022, Progress expects non-GAAP revenues between $147 million and $150 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.
 

 

The company expects non-GAAP earnings to be 96-98 cents 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 the $557 million reported in fiscal 2021.

Non-GAAP operating margin is expected between 39% and 40% compared with the 41% reported in fiscal 2021.

Non-GAAP earnings are projected between $4.05 and $4.11 per share compared with the $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.

Progress shares have declined 7% year to date but have outperformed the Zacks Computer & Technology sector’s drop of 33.9%.

Zacks Rank & Stocks to Consider

Progress Software currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same industry are Absolute Software (ABST - Free Report) , Paylocity (PCTY - Free Report) and Synchronoss (SNCR - Free Report) , all three sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Absolute shares have declined 6.1% in the year-to-date period. The Zacks Consensus Estimate for ABST’s fiscal 2023 earnings has moved 487.5% higher over the past 30 days to 47 cents per share.

Paylocity shares have declined 18.6% in the year-to-date period. The Zacks Consensus Estimate for PCTY’s fiscal 2023 earnings has been steady over the past 30 days at $3.58 per share.

Synchronoss shares have lost 53.8% in the year-to-date period. The consensus mark for SNCR’s 2022 earnings has been steady at 16 cents per share over the past 30 days.

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