We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 fourth-quarter fiscal 2023 non-GAAP earnings of $1.02 per share, which beat the Zacks Consensus Estimate by 12.09% but decreased 8.9% year over year.
Non-GAAP revenues of $177.5 million beat the consensus mark by 1.99% and increased 11.5% year over year.
On a constant-currency basis, annualized recurring revenues came in at $574 million, up 17% year over year, driven by strong contributions from OpenEdge, MarkLogic, Sitefinity, DevTools products and MOVEit and a net retention rate of 100%.
Quarter Details
Software license revenues were $56.3 million, up 5.9% year over year. Maintenance and service revenues were $120.7 million, up 16.1% year over year.
Top-line growth benefited from strong demand for Progress solutions, including OpenEdge, DataDirect and Sitefinity offerings.
Sales and marketing expenses, as a percentage of revenues, decreased 80 basis points (bps) from the year-ago quarter’s level to 24.6%.
Product development expenses, as a percentage of revenues, increased 100 bps to 19.2%.
General and administrative expenses, as a percentage of revenues, decreased 120 bps from the year-ago quarter’s level to 12.5%.
Progress reported a non-GAAP operating margin of 35.2%, which contracted 370 bps year over year.
Balance Sheet
As of Nov 30, 2023, cash and cash equivalents (and short-term investments) were $127 million compared with $138 million as of Aug 31, 2023.
Progress generated $33 million in adjusted free cash flow compared with $46 million in the previous quarter.
During the fiscal fourth quarter, Progress repurchased $4 million of shares. At the end of the fiscal year, the company had $194 million remaining under its current share repurchase authorization.
Guidance
For first-quarter fiscal 2024, Progress expects non-GAAP revenues between $180 million and $184 million. The Zacks Consensus Estimate for revenues is currently pegged at $180.5 million, indicating growth of 8.99% from the year-ago quarter’s reported figure.
Progress expects non-GAAP earnings between $1.12 and $1.16 per share. The consensus mark is currently pegged at $1.14 per share, indicating a decline of 4.2% from the year-ago quarter’s reported figure.
For fiscal 2024, non-GAAP revenues are projected between $722 million and $732 million compared with $694 million reported in fiscal 2023. Progress expects a strong contribution from MarkLogic.
Non-GAAP operating margin is expected between 39% and 40% for fiscal 2024.
Non-GAAP earnings are projected between $4.58 and $4.68 per share for fiscal 2024.
The Zacks Consensus Estimate for fiscal 2024 revenues and earnings is currently pegged at $730.36 million and $4.68 per share, respectively.
Adjusted free cash flow is expected between $202 million and $212 million for fiscal 2024.
Image: Bigstock
Progress' (PRGS) Q4 Earnings Top Estimates, Revenues Up Y/Y
Progress Software (PRGS - Free Report) reported fourth-quarter fiscal 2023 non-GAAP earnings of $1.02 per share, which beat the Zacks Consensus Estimate by 12.09% but decreased 8.9% year over year.
Non-GAAP revenues of $177.5 million beat the consensus mark by 1.99% and increased 11.5% year over year.
On a constant-currency basis, annualized recurring revenues came in at $574 million, up 17% year over year, driven by strong contributions from OpenEdge, MarkLogic, Sitefinity, DevTools products and MOVEit and a net retention rate of 100%.
Quarter Details
Software license revenues were $56.3 million, up 5.9% year over year. Maintenance and service revenues were $120.7 million, up 16.1% year over year.
Top-line growth benefited from strong demand for Progress solutions, including OpenEdge, DataDirect and Sitefinity offerings.
Progress Software Corporation Price and Consensus
Progress Software Corporation price-consensus-chart | Progress Software Corporation Quote
Sales and marketing expenses, as a percentage of revenues, decreased 80 basis points (bps) from the year-ago quarter’s level to 24.6%.
Product development expenses, as a percentage of revenues, increased 100 bps to 19.2%.
General and administrative expenses, as a percentage of revenues, decreased 120 bps from the year-ago quarter’s level to 12.5%.
Progress reported a non-GAAP operating margin of 35.2%, which contracted 370 bps year over year.
Balance Sheet
As of Nov 30, 2023, cash and cash equivalents (and short-term investments) were $127 million compared with $138 million as of Aug 31, 2023.
Progress generated $33 million in adjusted free cash flow compared with $46 million in the previous quarter.
During the fiscal fourth quarter, Progress repurchased $4 million of shares. At the end of the fiscal year, the company had $194 million remaining under its current share repurchase authorization.
Guidance
For first-quarter fiscal 2024, Progress expects non-GAAP revenues between $180 million and $184 million. The Zacks Consensus Estimate for revenues is currently pegged at $180.5 million, indicating growth of 8.99% from the year-ago quarter’s reported figure.
Progress expects non-GAAP earnings between $1.12 and $1.16 per share. The consensus mark is currently pegged at $1.14 per share, indicating a decline of 4.2% from the year-ago quarter’s reported figure.
For fiscal 2024, non-GAAP revenues are projected between $722 million and $732 million compared with $694 million reported in fiscal 2023. Progress expects a strong contribution from MarkLogic.
Non-GAAP operating margin is expected between 39% and 40% for fiscal 2024.
Non-GAAP earnings are projected between $4.58 and $4.68 per share for fiscal 2024.
The Zacks Consensus Estimate for fiscal 2024 revenues and earnings is currently pegged at $730.36 million and $4.68 per share, respectively.
Adjusted free cash flow is expected between $202 million and $212 million for fiscal 2024.
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 Apple (AAPL - Free Report) , Advanced Micro Devices (AMD - Free Report) and Fair Isaac (FICO - Free Report) .
Apple, currently sporting a Zacks Rank #1 (Strong Buy), is scheduled to release its first-quarter fiscal 2024 results on Feb 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AAPL’s first-quarter fiscal 2024 earnings has been steady at $2.08 per share in the past 30 days.
Advanced Micro Devices, carrying a Zacks Rank #2 (Buy) at present, is set to report its fourth-quarter 2023 results on Jan 30.
The Zacks Consensus Estimate for AMD’s fourth-quarter 2023 earnings is pegged at $2.65 per share, unchanged over the past 30 days.
Fair Isaac, also carrying a Zacks Rank #2 at present, is scheduled to report its first-quarter fiscal 2024 results on Jan 25.
The consensus mark for Fair Isaac’s earnings is pegged at $4.79 per share, down by a cent over the past 30 days.