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May 31, 2021
Progress Software Q2 2021 Earnings Report
Progress Software's Q2 2021 financial performance exceeded guidance, with revenue and earnings per share surpassing expectations and full-year guidance being raised.
Key Takeaways
Progress Software announced strong second-quarter results, exceeding both top- and bottom-line guidance. The company's success was driven by strength in its core business and the integration of DevOps products from Chef. The company's ARR grew 23% year-over-year on a constant currency basis.
Revenue of $122.5 million increased 22% year-over-year.
Non-GAAP revenue of $129.2 million increased 26% year-over-year.
ARR of $437 million increased 23% year-over-year on a constant currency basis.
Non-GAAP diluted earnings per share was $0.82, a 30% increase compared to the same quarter last year.
Progress Software
Progress Software
Progress Software Revenue by Segment
Revenue by Segment
Software Licenses Revenue
CapyFin.comMaintenance & Services Revenue
CapyFin.com Forward Guidance
Progress provides guidance for the fiscal year ending November 30, 2021, and the fiscal third quarter ending August 31, 2021. They expect revenue between $503 - $509 million and diluted earnings per share between $1.51 - $1.55.
Positive Outlook
- Revenue between $503 - $509 million.
- Non-GAAP revenue between $529 - $535 million.
- Diluted earnings per share between $1.51 - $1.55.
- Non-GAAP diluted earnings per share between $3.46 - $3.50.
- Operating margin of 21%.
Challenges Ahead
- Operating margin of 39% Non-GAAP.
- Cash from operations (GAAP) /Adjusted free cash flow (Non-GAAP) $160 - $164 million.
- Effective tax rate of 20% - 21%.
- Revenue for Q3 between $124 - $127 million.
- Diluted earnings per share for Q3 between $0.34 - $0.36.
Revenue & Expenses
Visualization of income flow from segment revenue to net income