Progress Reports Fiscal Third Quarter 2024 Financial Results

Progress Reports Fiscal Third Quarter 2024 Financial Results

Progress (NASDAQ: PRGS), a leading provider of AI-powered infrastructure software, has announced its financial results for the fiscal third quarter ended August 31, 2024. The company's performance topped the high end of previous estimates and sets a promising outlook with the upcoming acquisition of ShareFile.

Key Financial Metrics

Interpretation: Progress reported a robust quarter with total revenue exceeding expectations by generating $179 million, which marks a modest 2% increase from the previous year. The company's GAAP EPS surged by 55% year-over-year, while non-GAAP EPS increased by 17%, outperforming market expectations. This financial performance highlights solid operational execution and efficient expense management.

Operational Highlights and Developments

• Cash and cash equivalents at the end of the quarter were $232.7 million.
• Days sales outstanding decreased to 45 days from 49 days year-over-year and 41 days from the prior quarter.
• Announced a definitive agreement to acquire ShareFile for $875 million in cash.
• The suspension of Progress’ quarterly dividend upon closing the ShareFile acquisition, with a plan to redirect capital towards debt repayment and share repurchases.

Comments from Company Officers

Yogesh Gupta, CEO, expressed satisfaction with the company's performance, highlighting the execution beyond guidance expectations. Gupta emphasized excitement around the ShareFile acquisition, anticipated to close within the fiscal year, which will potentially enhance Progress' offerings and operational scale.

Anthony Folger, CFO, also noted the strong top-line and bottom-line figures, reflecting a well-managed growing business. Folger underscored the significant operating margin of over 41% and expressed eagerness to integrate ShareFile upon closing the acquisition.

Dividends and Share Repurchase Program

Progress’ Board of Directors has approved suspension of quarterly dividends, reallocating resources to enhance liquidity for future mergers and acquisitions, and initiate share repurchases.

Forward Guidance

Progress anticipates the ShareFile acquisition will begin contributing to their financial results over the final quarter of fiscal 2024, as reflected in their expanded guidance, considering current favorable currency translation impacts.

Stock Price Movement

Following the earnings release, Progress' stock price noted a modest positive movement, increasing by approximately 0.47%.

The financial and strategic actions communicated in these results underscore Progress' commitment to growth and strengthening its market position with strategic acquisitions and strong financial discipline.