BURLINGTON, Mass. – Progress software (NASDAQ:) Corporation (NASDAQ: PRGS) reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.08, $0.13 higher than the consensus estimate of $0.95.
Revenue for the quarter also exceeded expectations at $175 million, compared to the expected $168.42 million. The company’s shares rose modestly by 1%.
CEO Yogesh Gupta attributed the strong performance to consistent demand for the company’s products. He noted that revenue and earnings per share were above expectations, and annual recurring revenue (ARR) increased 1% at constant exchange rates. However, Progress Software’s second quarter revenue declined 2% from last year’s $178 million, reflecting a consistent trend in current and constant currencies.
Looking ahead, Progress Software provided guidance for the third quarter of 2024, expecting earnings per share between $1.11 and $1.15, below the analyst consensus of $1.21. Revenue forecasts for the same period are between $174 million and $178 million, also lower than the expected $183.52 million. For the full year 2024, the company expects earnings per share to be in the range of $4.70 to $4.80, narrowly missing the analyst consensus of $4.69, with revenue expectations of $725 to $735 million, essentially in line with consensus of $726.5 million.
CFO Anthony Folger expressed satisfaction with the quarter’s results, highlighting that revenue and earnings per share exceeded the upper limit of their most recent expectations. He also highlighted the strong demand for their products and the successful execution of their operational objectives.
Progress Software continues to focus on mergers and acquisitions as part of its growth strategy, while maintaining customer success and innovation.
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