📈 Progress Software (NASDAQ: PRGS) delivered impressive Q3 2024 results, surpassing its revenue and earnings targets. With $179M in revenue, the company achieved a 2% year-over-year increase, exceeding the projected range of $174M-$178M. Its annual recurring revenue (ARR) also grew to $582M, demonstrating a 99% net retention rate, which reflects strong customer loyalty and retention​​.
💰 Earnings per share (EPS) rose significantly, up 17% to $1.26, well above the guidance range of $1.11-$1.15. The non-GAAP operating margin was robust at 41%, while adjusted free cash flow reached $58M, a 21% increase from last year. This result emphasizes Progress’ effective cost management and consistent focus on profitability, setting a strong foundation for future quarters​​.
🔄 In September, Progress announced the acquisition of ShareFile for $875M—its largest deal to date. The acquisition is expected to contribute $240M in annual revenue and ARR, pushing the company’s total revenue closer to $1B. Initially, the deal will result in temporary cash flow challenges, but a positive turnaround is anticipated by fiscal 2025, thanks to strategic integration plans and operational synergies​​.
💼 By the end of Q3, Progress maintained a solid financial position, with $233M in cash and a net leverage ratio of 2.0x. The company repurchased $14M in shares during the quarter, increasing total buybacks to $87M year-to-date, with $107M still authorized, underscoring its commitment to returning value to shareholders​.
🚀 Progress raised its FY 2024 guidance, now expecting revenue between $745M-$755M and EPS of $4.75-$4.85. The ShareFile acquisition is positioned as a key driver for long-term growth, reinforcing the company’s strategy for higher recurring revenues and sustained profitability, thus enhancing investor confidence going forward​​.
What do you think about it? Tag me on your favourite social media (Facebook / Instagram / LinkedIn / X).
P.S. I research and interview economists, NZ investors and profitable companies to find tools & tactics that you can use to achieve financial freedom.
➔ Join my private newsletter to be the first one to learn insider tips! Here are examples of what you’ll get. It’s FREE. You can unsubscribe at any time. I treat your email as my top secret.
IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.