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Progress' (PRGS) Q1 Earnings Top Estimates, Revenues Up Y/Y
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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) .
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Progress' (PRGS) Q1 Earnings Top Estimates, Revenues Up Y/Y
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%.
Progress Software Corporation Price and Consensus
Progress Software Corporation price-consensus-chart | Progress Software Corporation Quote
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.