5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
BURLINGTON, Mass. - Progress Software Corporation (NASDAQ:PRGS) saw its shares surge over 5% after reporting third-quarter results that significantly exceeded analyst expectations, driven by strong recurring revenue growth and successful integration of recent acquisitions.
The AI-powered digital experience software provider reported adjusted earnings per share of $1.50 for its fiscal third quarter, handily beating the analyst consensus of $1.30. Revenue reached $249.8 million, surpassing expectations of $240.11 million and representing a 40% increase YoY. The company’s annualized recurring revenue (ARR) grew 47% YoY to $849 million.
Progress Software’s stock jumped 5.4% following the announcement as investors responded positively to both the earnings beat and raised full-year guidance.
"Our third quarter performance was truly exceptional," said Progress CEO Yogesh Gupta. "Net retention remains strong at 100%, while ARR continues to grow steadily. Q3 was very solid in terms of revenue, earnings, cash flow, and execution."
The company highlighted the successful integration of ShareFile, which is now "meaningfully contributing to top and bottom-line results." Progress maintained a strong operating margin of 40% on a non-GAAP basis, though this represented a slight decrease of 100 basis points from the same period last year.
Progress Software raised its full-year guidance, now expecting revenue between $975 million and $981 million, up from its previous forecast of $962 million to $974 million. The company also increased its adjusted earnings outlook to between $5.50 and $5.56 per share, compared to the earlier guidance of $5.28 to $5.40.
For the fourth quarter, Progress expects revenue between $250 million and $256 million and adjusted earnings per share between $1.29 and $1.35.
The company continued to reduce its debt, paying down $40 million during the quarter while also repurchasing $15 million in shares. Its board recently approved an additional $200 million for its share repurchase program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.