Progress Software Q4 2021 Earnings Report
Key Takeaways
Progress Software reported a strong Q4 2021, with revenue of $140.1 million, a 14% increase year-over-year, and non-GAAP EPS of $0.92, a 1% increase year-over-year. The company's performance significantly exceeded guidance, driven by the acquisition of Kemp and strong financial results.
Revenue reached $140.1 million, reflecting a 14% year-over-year increase.
Non-GAAP revenue was $143.7 million, up 11% year-over-year.
ARR increased by 12% year-over-year, reaching $486 million.
Non-GAAP diluted earnings per share increased to $0.92, up 1% year-over-year.
Progress Software
Progress Software
Progress Software Revenue by Segment
Forward Guidance
Progress provided guidance for the fiscal year ending November 30, 2022, projecting GAAP revenue between $597 million and $607 million and non-GAAP revenue between $605 million and $615 million. They also expect GAAP diluted earnings per share between $1.93 and $2.03 and non-GAAP diluted earnings per share between $3.95 and $4.05.
Positive Outlook
- Projected GAAP revenue between $597 million and $607 million.
- Projected non-GAAP revenue between $605 million and $615 million.
- Expected GAAP diluted earnings per share between $1.93 and $2.03.
- Expected non-GAAP diluted earnings per share between $3.95 and $4.05.
- Anticipated cash from operations (GAAP) / Adjusted free cash flow (Non-GAAP) between $188 million and $193 million / $185 million and $190 million.
Challenges Ahead
- Expected negative currency translation impact on GAAP and non-GAAP revenue of approximately $7.5 million.
- Expected negative currency translation impact on GAAP and non-GAAP diluted earnings per share of approximately $0.03.
- Potential for delays or size reductions in transactions.
- Possible fluctuations in currency exchange rates.
- Risk of decline in renewal rates for contracts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income