Progress Software ( PRGS Quick Quote 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
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 Quick Quote ASGN - Free Report) , Amkor Technology ( AMKR Quick Quote AMKR - Free Report) and F5 ( FFIV Quick Quote 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.