•
May 31, 2023
Progress Software Q2 2023 Earnings Report
Progress Software's Q2 2023 financial performance exceeded revenue and earnings estimates, with ARR increasing by 19% and full-year guidance raised.
Key Takeaways
Progress Software announced strong Q2 2023 results, exceeding revenue and earnings estimates. The company reported a 20% increase in revenue year-over-year and a 19% increase in ARR. Diluted earnings per share was $0.27, while non-GAAP diluted earnings per share was $1.06.
Revenue increased by 20% year-over-year to $178.3 million.
ARR grew by 19% year-over-year to $569.0 million.
Non-GAAP diluted earnings per share increased by 2% year-over-year to $1.06.
The company raised its full-year guidance.
Progress Software
Progress Software
Progress Software Revenue by Segment
Forward Guidance
Progress provides the following guidance for the fiscal year ending November 30, 2023 and the fiscal third quarter ending August 31, 2023:
Positive Outlook
- Revenue: $686 - $694 million (GAAP)
- Revenue: $690 - $698 million (Non-GAAP)
- Diluted earnings per share: $1.35 - $1.43 (GAAP)
- Diluted earnings per share: $4.16 - $4.24 (Non-GAAP)
- Operating margin: 15% - 16% (GAAP) and 38% - 39% (Non-GAAP)
Challenges Ahead
- Revenue: $171 - $175 million (GAAP) for Q3 2023
- Revenue: $172 - $176 million (Non-GAAP) for Q3 2023
- Diluted earnings per share: $0.27 - $0.31 (GAAP) for Q3 2023
- Diluted earnings per share: $0.98 - $1.02 (Non-GAAP) for Q3 2023
- Effective tax rate: 20% - 21%
Revenue & Expenses
Visualization of income flow from segment revenue to net income