Progress Software Q1 Earnings & Revenues Beat Estimates, Stock Up

Progress Software PRGS shares jumped 14.5% over the last two trading sessions to close at $58.98 on Wednesday following impressive first-quarter fiscal 2025 results on Monday. The company reported first-quarter fiscal 2025 non-GAAP earnings of $1.31 per share, beating the Zacks Consensus Estimate by 25.96% and increasing 4.8% year over year.  Non-GAAP revenues of $238 million beat the consensus mark by 0.92% and increased 29% year over year on a reported basis and 30% on a constant currency (cc) basis. The upside can be attributed to strong demand for Progress Software solutions, including ShareFile.On a cc basis, Annualized Recurring Revenue (ARR) came in at $836 million, up 48% year over year, driven by strong contributions from ShareFile and other solutions. Net retention rate surpassed 100%. Progress Software Corporation Price, Consensus and EPS Surprise Progress Software Corporation price-consensus-eps-surprise-chart | Progress Software Corporation Quote PRGS’ Quarter in DetailsSoftware license revenues were $58.4 million, down 8.8% year over year. Maintenance and service revenues were $179.6 million, up 48.9% year over year.Sales and marketing expenses, as a percentage of revenues, increased 40 basis points (bps) from the year-ago quarter’s level to 21.6%. Product development expenses, as a percentage of revenues, increased 50 bps year over year to 19.5%.General and administrative expenses, as a percentage of revenues, declined 80 bps from the year-ago quarter’s level to 10.8%.Progress reported a non-GAAP operating margin of 39.3%, which contracted 220 bps year over year.PRGS Balance Sheet DetailsAs of Feb. 28, 2025, cash and cash equivalents were $124.2 million compared with $118.1 million as of Nov. 30, 2024. Total debt was $1.51 billion, with a net debt position of $1.39 billion.Progress generated $73.2 million in adjusted free cash flow.In first-quarter fiscal 2025, Progress Software continued its strategic capital allocation efforts. The company allocated $30 million toward debt repayment on its revolving credit line and repurchased $30 million worth of shares. This led to a revision in its annual share repurchase forecast, lowering it from $80 million to $70 million, with the $10 million difference redirected toward debt reduction.At the end of the fiscal first quarter, PRGS’ revolving credit line balance was $700 million, and it had $77 million remaining under its current share repurchase authorization.PRGS Raises 2025 OutlookFor fiscal 2025, non-GAAP revenues are projected between $958 million and $970 million.Non-GAAP operating margin is expected to be 38%.Non-GAAP earnings per share are projected between $5.25 and $5.37, up from the previous guidance of $5.00-$5.12.Adjusted free cash flow is expected between $283 million and $294 million for fiscal 2025.For second-quarter fiscal 2025, Progress expects non-GAAP revenues between $235 million and $241 million.PRGS expects non-GAAP earnings per share to be between $1.28 and $1.34.Zacks Rank & Stocks to ConsiderProgress currently carries a Zacks Rank #3 (Hold).DoorDash DASH, CSG Systems International CSGS and Meta Platforms META are some better-ranked stocks in the broader technology sector. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. DoorDash shares have gained 13% year to date. DASH is scheduled to report its first-quarter 2025 results on May 7.CSG Systems shares have gained 19.7% year to date. CSGS is slated to report its first-quarter 2025 results on May 7.Meta Platforms shares have lost 0.2% year to date. META is set to report its first-quarter 2025 results on April 30.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Progress Software Corporation (PRGS): Free Stock Analysis Report CSG Systems International, Inc. (CSGS): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks