Progress Software Q2 2021 Earnings Report
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
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