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Progress Software
🇺🇸 NASDAQ:PRGS
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•
Nov 30, 2022

Progress Software Q4 2022 Earnings Report

Progress Software's Q4 2022 earnings exceeded guidance, driven by strong business performance and the announcement of the MarkLogic acquisition.

Key Takeaways

Progress reported a strong fourth quarter in fiscal year 2022, with revenue increasing by 12% year-over-year to $157.1 million. Diluted earnings per share increased by 64% to $0.54, while non-GAAP diluted earnings per share increased by 22% to $1.12. The company also announced a definitive agreement to acquire MarkLogic, which is expected to drive significant growth.

Revenue increased 12% year-over-year to $157.1 million.

Diluted earnings per share increased 64% year-over-year to $0.54.

Non-GAAP diluted earnings per share increased 22% year-over-year to $1.12.

A definitive agreement was signed to acquire MarkLogic, expecting to scale Progress to well above $700M in annualized sales.

Total Revenue
$159M
Previous year: $144M
+10.7%
EPS
$1.12
Previous year: $0.92
+21.7%
Gross Profit
$134M
Previous year: $119M
+12.2%
Cash and Equivalents
$252M
Previous year: $157M
+60.0%
Free Cash Flow
$37.1M
Previous year: $42M
-11.6%
Total Assets
$1.41B
Previous year: $1.36B
+3.5%

Progress Software

Progress Software

Progress Software Revenue by Segment

Forward Guidance

Progress provides guidance for the fiscal year ending November 30, 2023 and the fiscal first quarter ending February 28, 2023.

Positive Outlook

  • FY 2023 GAAP Revenue: $671 million - $681 million
  • FY 2023 Non-GAAP Revenue: $675 million - $685 million
  • FY 2023 GAAP Diluted earnings per share: $1.38 - $1.46
  • FY 2023 Non-GAAP Diluted earnings per share: $4.09 - $4.17
  • FY 2023 Adjusted free cash flow (non-GAAP): $175 million - $185 million

Challenges Ahead

  • Expected negative currency translation impact on Progress' fiscal year 2023 business outlook compared to 2022 exchange rates is approximately $1.2 million on GAAP and non-GAAP revenue.
  • Expected positive currency translation impact on GAAP and non-GAAP diluted earnings per share for fiscal year 2023 is approximately $0.01.
  • Expected negative currency translation impact on Progress' fiscal Q1 2023 business outlook compared to 2022 exchange rates on GAAP and non-GAAP revenue is approximately $2.5 million.
  • The expected currency translation impact on GAAP and non-GAAP diluted earnings per share for fiscal Q1 2023 is not expected to be material from an accounting perspective.
  • Economic, geopolitical and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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