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Aug 31, 2024
Progress Software Q3 2024 Earnings Report
Progress Q3 2024 financial results topped high end of estimates and expects to close ShareFile acquisition in fiscal 2024.
Key Takeaways
Progress announced its Q3 2024 financial results, with revenue and non-GAAP revenue increasing by 2% year-over-year to $179 million. Diluted earnings per share increased by 55% to $0.65, and non-GAAP diluted earnings per share increased by 17% to $1.26. The company also announced a definitive agreement to acquire ShareFile for $875 million in cash.
Revenue and non-GAAP revenue increased 2% year-over-year to $179 million.
Annualized Recurring Revenue (ARR) of $582 million remained relatively flat year-over-year on a constant currency basis.
Operating margin was 23% and non-GAAP operating margin was 41%.
Diluted earnings per share was $0.65, a 55% increase, and non-GAAP diluted earnings per share was $1.26, a 17% increase.
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, 2024 and the fiscal fourth quarter ending November 30, 2024. Our updated guidance for FY 2024 and Q4 2024 assumes one month of contribution from our proposed acquisition of ShareFile.
Positive Outlook
- FY 2024 Revenue: $745 - $755 million
- FY 2024 Diluted EPS: $1.69 - $1.81
- FY 2024 Non-GAAP Diluted EPS: $4.75 - $4.85
- Q4 2024 Revenue: $207 - $217 million
- Q4 2024 Non-GAAP Diluted EPS: $1.15 - $1.25
Challenges Ahead
- FY 2024 Operating Margin: 16% - 17%
- FY 2024 Non-GAAP Operating Margin: 39%
- FY 2024 Effective Tax Rate: 17%
- Q4 2024 Diluted EPS: $0.17 - $0.27
- Our updated guidance for FY 2024 and Q4 2024 assumes one month of contribution from our proposed acquisition of ShareFile.
Revenue & Expenses
Visualization of income flow from segment revenue to net income