Progress Software Q3 2021 Earnings Report
Key Takeaways
Progress reported strong Q3 2021 results, with revenue reaching $147.4 million, a 34% increase year-over-year. Diluted earnings per share were $0.70, up 32% compared to the same quarter last year. The company also announced an agreement to acquire Kemp Technologies for $258 million in cash.
Revenue of $147.4 million increased 34% year-over-year.
Non-GAAP revenue of $152.6 million increased 38% year-over-year.
Diluted earnings per share was $0.70, a 32% increase year-over-year.
Non-GAAP diluted earnings per share was $1.18, a 51% increase year-over-year.
Progress Software
Progress Software
Progress Software Revenue by Segment
Forward Guidance
Progress provides the following guidance for the fiscal year ending November 30, 2021 and the fiscal fourth quarter ending November 30, 2021:
Positive Outlook
- FY 2021 GAAP Revenue: $520 - $524 million
- FY 2021 Non-GAAP Revenue: $548 - $552 million
- FY 2021 GAAP Diluted earnings per share: $1.56 - $1.58
- FY 2021 Non-GAAP Diluted earnings per share: $3.68 - $3.70
- Q4 2021 GAAP Revenue: $129 - $133 million
Challenges Ahead
- Q4 2021 GAAP Diluted earnings per share: $0.13 - $0.15
- Based on current exchange rates, the expected positive currency translation impact on Progress' fiscal year 2021 business outlook compared to 2020 exchange rates is approximately $6.8 million on GAAP and non-GAAP revenue
- The expected positive currency translation impact on Progress' fiscal Q4 2021 business outlook compared to 2020 exchange rates on GAAP and non-GAAP revenue is approximately $0.6 million.
- The expected positive impact on GAAP and non-GAAP diluted Q4 2021 earnings per share is $0.01.
- To the extent that there are changes in exchange rates versus the current environment, this may have an impact on Progress' business outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income