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Aug 31, 2021
Progress Software Q3 2021 Earnings Report
Progress Software's Q3 2021 financial performance significantly exceeded expectations, with revenue and EPS surpassing guidance, and full-year 2021 guidance was raised again.
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
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, 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