Progress Software beats Q1 estimates, raises outlook; shares surge

Published 31/03/2025, 21:26
Updated 31/03/2025, 21:31
Progress Software beats Q1 estimates, raises outlook; shares surge

BURLINGTON, Mass. - Progress Software Corporation (NASDAQ:PRGS) reported first-quarter earnings and revenue that surpassed analyst expectations, while also raising its full-year guidance. The company’s shares jumped 6.8% in after-hours trading following the announcement.

The AI-powered digital experience and infrastructure software provider posted adjusted earnings per share of $1.31 for the quarter ended February 28, 2025, beating the analyst consensus of $1.06 by $0.25. Revenue came in at $238 million, exceeding the estimated $235.6 million and marking a 29% increase YoY.

Progress Software’s strong performance was driven by solid demand across its product portfolio, with data platform and infrastructure management products performing particularly well. The company’s Annualized Recurring Revenue (ARR) grew 48% YoY on a constant currency basis to $836 million.

CEO Yogesh Gupta expressed satisfaction with the results, stating, "We’re extremely pleased with our excellent Q1 results. We are ahead, or on plan, with all our ShareFile integration milestones, which are providing significant contributions to ARR and revenues, as well as expense savings."

Looking ahead, Progress Software raised its full-year 2025 guidance. The company now expects adjusted EPS of $5.25-$5.37, up from the previous forecast of $5.00-$5.12 and above the analyst consensus of $5.06. Revenue guidance for the year remains unchanged at $958-970 million.

For the second quarter, Progress Software projects adjusted EPS of $1.28-$1.34 on revenue of $235-241 million, both surpassing analyst estimates.

CFO Anthony Folger noted, "Beyond excellent financial performance, we repurchased $30 million of Progress shares and accelerated repayment of the revolving credit line used to partially finance the ShareFile acquisition, paying down $30 million during Q1."

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