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Aug 31, 2023
Progress Software Q3 2023 Earnings Report
Delivered a strong quarter with ARR up 18% and raised full year outlook.
Key Takeaways
Progress announced strong financial results for the third quarter of 2023, with revenue of $175.0 million, a 16% year-over-year increase. The company's ARR increased by 18% year-over-year to $577 million. Diluted earnings per share was $0.42, while non-GAAP diluted earnings per share was $1.08.
Revenue of $175.0 million increased 16% year-over-year.
ARR of $577 million increased 18% year-over-year.
Operating margin was 17% and non-GAAP operating margin was 39%.
Non-GAAP diluted earnings per share was $1.08, an increase of 8%.
Progress Software
Progress Software
Progress Software Revenue by Segment
Forward Guidance
Progress provides the following guidance for the fiscal year ending November 30, 2023 and the fiscal fourth quarter ending November 30, 2023.
Positive Outlook
- FY 2023 Revenue: $688 - $694 million (GAAP)
- FY 2023 Revenue: $692 - $698 million (Non-GAAP)
- FY 2023 Diluted earnings per share: $1.36 - $1.42 (GAAP)
- FY 2023 Diluted earnings per share: $4.20 - $4.26 (Non-GAAP)
- FY 2023 Operating margin: 15% (GAAP)
- FY 2023 Operating margin: 38% - 39% (Non-GAAP)
- FY 2023 Cash from operations / Adjusted free cash flow: $175 - $181 million (GAAP)
- FY 2023 Adjusted free cash flow: $177 - $183 million (Non-GAAP)
- Q4 2023 Revenue: $171 - $177 million (GAAP & Non-GAAP)
- Q4 2023 Diluted earnings per share: $0.13 - $0.19 (GAAP)
- Q4 2023 Diluted earnings per share: $0.87 - $0.93 (Non-GAAP)
Revenue & Expenses
Visualization of income flow from segment revenue to net income