We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Progress' (PRGS) Q4 Earnings Top Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Progress Software (PRGS - Free Report) reported its fourth-quarter fiscal 2022 non-GAAP earnings of $1.12 per share, which beat the Zacks Consensus Estimate by 2.75% and jumped 21.7% year over year.
Non-GAAP revenues of $159.2 million lagged the consensus mark by 2.45% but increased 10.7% year over year, driven by strong demand for Chef, OpenEdge, DataDirect and Sitefinity solutions.
On a constant-currency basis, annualized recurring revenues came in at $497 million, up 3.5% year over year.
Quarter Details
Software license revenues were $53.2 million, up 28.9% year over year. Maintenance and service revenues were $104 million, up 5.1% year over year.
Progress Software Corporation Price, Consensus and EPS Surprise
Sales and marketing expenses, as a percentage of revenues, decreased 130 basis points (bps) from the year-ago quarter’s level to 25.5%.
Product development expenses, as a percentage of revenues, decreased 90 bps from the year-ago quarter’s tally to 18.2%.
General and administrative expenses, as a percentage of revenues, increased 30 bps from the year-ago quarter’s level to 13.7%.
Progress reported a non-GAAP operating margin of 38.9%, which expanded 300 bps year over year.
Balance Sheet
As of Nov 30, 2022, cash and cash equivalents (and short-term investments) were $251.8 million compared with $225.9 million as of Aug 31, 2022.
Progress generated $37.5 million in adjusted free cash flow compared with $39.2 million in the previous quarter.
In the fiscal fourth quarter, Progress repurchased $1.5 million worth of shares. The company renewed its share repurchase authorization by $150 million, bringing the total buyback authorization to $228 million.
Guidance
For first-quarter fiscal 2023, Progress expects non-GAAP revenues between $157 million and $161 million. The Zacks Consensus Estimate for revenues is currently pegged at $152.84 million, indicating growth of 3.61% from the year-ago quarter’s reported figure.
Progress Software expects non-GAAP earnings to be $1.04-$1.08 per share. The consensus mark is currently pegged at $1.04 per share, indicating growth of 7.22% from the year-ago quarter’s reported figure.
For fiscal 2023, non-GAAP revenues are projected between $675 million and $685 million compared with $611 million reported in fiscal 2021.
Non-GAAP operating margin is expected to be 38% compared with 40% reported in fiscal 2021.
Non-GAAP earnings are projected between $4.09 and $4.17 per share compared with $4.13 reported in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2023 revenues and earnings is currently pegged at $633.80 million and $4.39 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 International Business Machines (IBM - Free Report) , SAP (SAP - Free Report) and MSCI (MSCI - Free Report) .
Image: Bigstock
Progress' (PRGS) Q4 Earnings Top Estimates, Revenues Up Y/Y
Progress Software (PRGS - Free Report) reported its fourth-quarter fiscal 2022 non-GAAP earnings of $1.12 per share, which beat the Zacks Consensus Estimate by 2.75% and jumped 21.7% year over year.
Non-GAAP revenues of $159.2 million lagged the consensus mark by 2.45% but increased 10.7% year over year, driven by strong demand for Chef, OpenEdge, DataDirect and Sitefinity solutions.
On a constant-currency basis, annualized recurring revenues came in at $497 million, up 3.5% year over year.
Quarter Details
Software license revenues were $53.2 million, up 28.9% year over year. Maintenance and service revenues were $104 million, up 5.1% year over year.
Progress Software Corporation Price, Consensus and EPS Surprise
Progress Software Corporation price-consensus-eps-surprise-chart | Progress Software Corporation Quote
Sales and marketing expenses, as a percentage of revenues, decreased 130 basis points (bps) from the year-ago quarter’s level to 25.5%.
Product development expenses, as a percentage of revenues, decreased 90 bps from the year-ago quarter’s tally to 18.2%.
General and administrative expenses, as a percentage of revenues, increased 30 bps from the year-ago quarter’s level to 13.7%.
Progress reported a non-GAAP operating margin of 38.9%, which expanded 300 bps year over year.
Balance Sheet
As of Nov 30, 2022, cash and cash equivalents (and short-term investments) were $251.8 million compared with $225.9 million as of Aug 31, 2022.
Progress generated $37.5 million in adjusted free cash flow compared with $39.2 million in the previous quarter.
In the fiscal fourth quarter, Progress repurchased $1.5 million worth of shares. The company renewed its share repurchase authorization by $150 million, bringing the total buyback authorization to $228 million.
Guidance
For first-quarter fiscal 2023, Progress expects non-GAAP revenues between $157 million and $161 million. The Zacks Consensus Estimate for revenues is currently pegged at $152.84 million, indicating growth of 3.61% from the year-ago quarter’s reported figure.
Progress Software expects non-GAAP earnings to be $1.04-$1.08 per share. The consensus mark is currently pegged at $1.04 per share, indicating growth of 7.22% from the year-ago quarter’s reported figure.
For fiscal 2023, non-GAAP revenues are projected between $675 million and $685 million compared with $611 million reported in fiscal 2021.
Non-GAAP operating margin is expected to be 38% compared with 40% reported in fiscal 2021.
Non-GAAP earnings are projected between $4.09 and $4.17 per share compared with $4.13 reported in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2023 revenues and earnings is currently pegged at $633.80 million and $4.39 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 International Business Machines (IBM - Free Report) , SAP (SAP - Free Report) and MSCI (MSCI - Free Report) .
IBM, currently carrying a Zacks Rank #2 (Buy), is set to release its fourth-quarter 2022 results on Jan 25. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IBM’s fourth-quarter 2022 earnings has been steady at $3.57 per share in the past 30 days.
SAP, carrying a Zacks Rank #2, is set to report its fourth-quarter 2022 results on Jan 26.
The Zacks Consensus Estimate for SAP’s fourth-quarter 2022 earnings is pegged at $1.39 per share, up by a penny in the past 30 days.
MSCI, another Zacks Rank #2 stock, is scheduled to report fourth-quarter fiscal 2022 results on Jan 31.
The consensus mark for MSCI earnings is pegged at $2.71 per share, up by a penny in the past 30 days.