Business
Progress Announces Second Quarter 2024 Financial Results
Second Quarter Revenues and Earnings Per Share Ahead of GuidanceRaising Full Year Revenue and Earnings Per Share Outlook BURLINGTON, Mass., June 25, 2024
About this update from Progress Software Corporation
[{"type":"text","content":"Second Quarter Revenues and Earnings Per Share Ahead of GuidanceRaising Full Year Revenue and Earnings Per Share Outlook BURLINGTON, Mass., June 25, 2024 (GLOBE NEWSWIRE) -- Progress (Nasdaq: PRGS), the trusted provider of AI-powered infrastructure software, today announced financial results for its fiscal second quarter ended May 31, 2024. Second Quarter 2024 Highlights1: Revenue and non-GAAP revenue of $175 million decreased 2% year-over-year on both an actual and a constant currency basis.Annualized Recurring Revenue (“ARR”) of $579 million increased 1% year-over-year on a constant currency basis.Operating margin was 16% and non-GAAP operating margin was 38%.Diluted earnings per share was $0.37 compared to $0.27 in the same quarter last year, an increase of 37%. Non-GAAP diluted earnings per share was $1.09 compared to $1.06 in the same quarter last year, an increase of 3%. “Our outperformance in the second quarter of fiscal 2024 was once again driven by steady demand for our products, with revenues and EPS ahead of our forecast, and ARR up 1%,” said Yogesh Gupta, CEO of Progress. “We are focused on M&A while our sales teams continue to execute well in the field, and internally we drive customer success, innovation and margins.” Additional financial highlights included: Three Months Ended GAAP Non-GAAP1(In thousands, except percentages and per share amounts)May 31, 2024 May 31, 2023 % Change May 31, 2024 May 31, 2023 % ChangeRevenue$175,077 $178,251 (2)% $175,077 $179,233 (2)%Income from operations$27,148 $23,027 18% $67,086 $67,300 —%Operating margin 16% 13% 300 bps 38% 38% 0 bpsNet income$16,188 $12,090 34% $47,899 $46,937 2%Diluted earnings per share$0.37 $0.27 37% $1.09 $1.06 3%Cash from operations (GAAP) /Adjusted free cash flow (non-GAAP)$63,681 $47,951 33% $64,073 $48,040 33% Other fiscal second quarter 2024 metrics and recent results included: Cash and cash equivalents were $190.4 million at the end of the quarter.Days sales outstanding was 41 days compared to 44 days in the fiscal second quarter of 2023 and 50 days in the fiscal first quarter of 2024.On June 18, 2024, our Board of Directors declared a quarterly dividend of $0.175 per share of common stock, which will be paid on September 16, 2024 to shareholders of record as of the close of business on September 2, 2024. Anthony Folger, CFO, said: “We’re very pleased...