PRGS Earnings Prediction
The chart below shows how PRGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PRGS sees a +2.88% change in stock price 10 days leading up to the earnings, and a +2.36% change 10 days following the report. On the earnings day itself, the stock moves by +0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
PRGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
178.69M
2.11%
2.06%
Gross Margin
76.01%
6.92%
5.04%
Operating Margin
24.32%
33.55%
35.64%
Net Margin
15.93%
46.01%
72.22%
EPS
0.65
54.76%
75.68%
No Data Available
PRGS Earnings Analysis
Progress Software Corp Corporation (PRGS.O) Earnings Conference Call
Positive
Revenue Exceeds Guidance: Revenue grew by 2% year over year to $179,000,000, exceeding the high end of guidance.
Earnings Per Share Surge: Earnings per share increased by 17% year over year to $1.26, surpassing the high end of guidance by $0.11.
Annual Recurring Revenue Growth: Annual recurring revenue (ARR) reached $582,000,000, reflecting a 1% sequential growth and a net retention rate of 99%.
Quarterly Cash Flow Increase: Adjusted free cash flow for the quarter was $58,000,000, representing a 21% increase from the previous year.
Stock Repurchase Activity: The company repurchased $14,000,000 of its stock during the quarter, bringing the year-to-date total to $87,000,000.
Negative
Revenue Growth Slowdown: Revenue growth was only 2% year over year, indicating a slowdown compared to previous quarters.
Stagnant Customer Growth: Annual recurring revenue (ARR) increased by just 1% sequentially, suggesting stagnation in customer growth and retention.
Deferred Revenue Decline: Deferred revenue decreased to $285 million, down slightly from the second quarter, reflecting normal seasonality but also potential weakness in future revenue recognition.
Negative Cash Flow Impact: The acquisition of ShareFile is expected to contribute negative adjusted free cash flow of approximately $15 million to $20 million in the next quarter, indicating immediate financial strain from the deal.
Dividend Suspension and Capital Shift: The decision to suspend the quarterly cash dividend upon closing the ShareFile acquisition highlights a shift in capital allocation strategy, prioritizing debt repayment over shareholder returns.
PRGS FAQs
How does PRGS typically perform around its earnings report dates?
Is Earnings call transcript: Progress Software beats Q3 2024 earnings estimates positive or negative?
How can historical earnings data help predict future stock performance?
PRGS Earning Call Sentiment
Earnings call transcript: Progress Software beats Q3 2024 earnings estimates
PRGS.O
-2.58%Positive
The earnings report shows moderate financial performance with a slight revenue increase and strong EPS growth. However, the suspension of dividends and significant acquisition risks, including integration challenges and negative cash flow, balance the positives. The Q&A revealed some uncertainties, particularly in cross-selling opportunities, but also confidence in ShareFile's profitability. Given the company's market cap, the stock is likely to experience a neutral movement, as the market digests both the acquisition's potential and its inherent risks.
