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Feb 28, 2023

Progress Software Q1 2023 Earnings Report

Revenue and earnings per share exceeded guidance, and ARR surged following MarkLogic integration.

Key Takeaways

Progress announced strong first-quarter results for fiscal year 2023, with revenue and earnings per share exceeding guidance. ARR surged to $569 million, driven by strong demand and execution across products and geographies.

Revenue increased by 13% year-over-year to $164.2 million.

ARR reached $569 million, a 20% increase year-over-year on a constant currency basis.

Operating margin was 22%, while non-GAAP operating margin was 44%.

Diluted earnings per share increased by 15% to $0.53, and non-GAAP diluted earnings per share increased by 23% to $1.19.

Total Revenue
$166M
Previous year: $148M
+12.3%
EPS
$1.19
Previous year: $0.97
+22.7%
Gross Profit
$138M
Previous year: $122M
+13.4%
Cash and Equivalents
$123M
Previous year: $173M
-29.1%
Free Cash Flow
$46.4M
Previous year: $43.3M
+7.2%
Total Assets
$1.64B
Previous year: $1.35B
+21.5%

Progress Software

Progress Software

Progress Software Revenue by Segment

Forward Guidance

Progress provides revenue guidance for the fiscal year ending November 30, 2023 of between $676 million and $684 million (GAAP) and between $680 million and $688 million (Non-GAAP). Diluted earnings per share is expected to be between $1.32 and $1.40 (GAAP) and between $4.09 and $4.17 (Non-GAAP).

Positive Outlook

  • Revenue between $676 million and $684 million (GAAP)
  • Revenue between $680 million and $688 million (Non-GAAP)
  • Diluted earnings per share between $1.32 and $1.40 (GAAP)
  • Diluted earnings per share between $4.09 and $4.17 (Non-GAAP)
  • Adjusted free cash flow between $175 million and $185 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income