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Investing.com -- Progress Software Corporation (NASDAQ:PRGS) stock fell 2.1% after the company reported mixed second quarter results and raised its full-year guidance.
The software company reported second quarter earnings per share (EPS) of $1.40, exceeding analyst estimates of $1.30. Revenue came in at $237 million, slightly below the consensus estimate of $237.53 million, but representing a 36% increase YoY on an actual currency basis.
Progress Software’s Annualized Recurring Revenue (ARR) reached $838 million, growing 46% YoY on a constant currency basis. The company maintained a Net Retention Rate of 100%, which it cited as evidence of its product portfolio’s strength.
For the third quarter, Progress Software forecasts EPS between $1.28 and $1.34, compared to the consensus estimate of $1.30. The company also raised its full-year 2025 guidance, now projecting revenue between $962 million and $974 million, up from its previous forecast of $958 million to $970 million.
CEO Yogesh Gupta highlighted the company’s performance across all geographies and noted progress in integrating its ShareFile acquisition. "Our integration of ShareFile is going extremely well as we have completed numerous major synergy milestones, and we remain confident in our ability to reach all our ShareFile targets by the end of the year," Gupta stated.
The company also announced the acquisition of Nuclia, a provider of Retrieval-Augmented Generation AI solutions, in a separate transaction that closed today. Progress Software indicated the acquisition is immaterial to its financials.
Operating margin for the quarter was 16% on a GAAP basis and 40% on a non-GAAP basis, with the latter showing a 200 basis point improvement YoY. Cash and cash equivalents stood at $102 million at the end of the quarter.
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