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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
Revenue by Segment
Software Licenses Revenue
CapyFin.comMaintenance & Services Revenue
CapyFin.com 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