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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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