Progress Software Corp (PRGS) is riding high after delivering impressive third-quarter results that exceeded Wall Street expectations. The company’s shares soared in after-hours trading on Tuesday, driven by the positive performance.
The company reported revenue of $178.69 million for the quarter, comfortably surpassing analysts’ estimates of $175.94 million. Earnings per share (EPS) also came in ahead of expectations, reaching $1.26 compared to the projected $1.14. This represents a 2% year-over-year increase in total revenue.
Progress Software’s recurring revenue, a key metric for businesses, reached $582 million on an annualized basis, remaining relatively flat on a constant currency basis. The company also boasted strong operating margins, with a 23% margin overall and an adjusted operating margin of 41%.
Adding to the positive news, Progress Software ended the quarter with a healthy cash position of $232.7 million. CEO Yogesh Gupta expressed his satisfaction with the results, highlighting the company’s successful execution during the quarter.
The company’s recent announcement of a proposed acquisition of ShareFile, a file-sharing platform, also contributed to investor enthusiasm. This strategic move, expected to close before the end of Progress Software’s fiscal year, is anticipated to further strengthen the company’s portfolio and expand its reach.
Looking ahead, Progress Software is optimistic about its fourth-quarter performance. The company anticipates adjusted revenue between $207 million and $217 million, and adjusted earnings between $1.15 and $1.25 per share.
Furthermore, Progress Software has increased its full-year guidance. The company now expects adjusted revenue to range from $745 million to $755 million, up from a prior forecast of $725 million to $735 million. Its full-year earnings outlook has also been raised to a range of $4.75 to $4.85 per share, compared to the previous projection of $4.70 to $4.80 per share.
These positive developments have sparked optimism among investors, driving up the stock price. At the time of publication, Progress Software shares were trading 4.29% higher at $59.60 in after-hours trading. Management will host a conference call later today to discuss the results in more detail.
