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Aug 31, 2020
Progress Software Q3 2020 Earnings Report
Progress's Q3 2020 financial performance exceeded guidance, driven by employee dedication during the COVID-19 crisis and strategic acquisition of Chef.
Key Takeaways
Progress announced its Q3 2020 financial results, with revenue at $109.7 million, a 3% increase year-over-year. Diluted earnings per share was $0.53, a 77% increase compared to the same quarter last year. The company also announced a definitive agreement to acquire Chef Software.
Revenue of $109.7 million increased 3% year-over-year.
Operating margin was 30% and Non-GAAP operating margin was 42%.
Diluted earnings per share was $0.53, a 77% increase year-over-year.
Non-GAAP diluted earnings per share was $0.78, a 4% increase year-over-year.
Progress Software
Progress Software
Progress Software Revenue by Segment
Forward Guidance
Progress provided updated guidance for the fiscal year ending November 30, 2020 and the fiscal fourth quarter ending November 30, 2020.
Positive Outlook
- FY2020 GAAP Revenue: $438 - $442 million
- FY2020 Non-GAAP Revenue: $452 - $456 million
- FY2020 GAAP Diluted EPS: $1.63 - $1.66
- FY2020 Non-GAAP Diluted EPS: $2.94 - $2.97
- FY2020 Adjusted Free Cash Flow: $135 - $140 million
Challenges Ahead
- COVID-19 impact is a reduction of approximately $8 to $11 million on GAAP and non-GAAP revenue.
- Chef acquisition contributes approximately $5 to $7 million of GAAP revenue and $10 to $12 million of non-GAAP revenue.
- Chef acquisition has a negative impact of $0.27 to $0.31 to GAAP earnings per share.
- Chef acquisition has a negative impact of $0.00 to $0.04 to non-GAAP earnings per share.
- Negative currency translation impact on fiscal year 2020 business outlook is approximately $1.3 million on GAAP and non-GAAP revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income