BURLINGTON, Mass. - Progress Software (NASDAQ:PRGS) Corporation (NASDAQ: PRGS) reported second-quarter earnings that surpassed analyst expectations, with adjusted EPS coming in at $1.08, $0.13 higher than the consensus estimate of $0.95.
Revenue for the quarter was also above estimates at $175 million, compared to the expected $168.42 million. The company's stock saw a modest increase of 1%.
CEO Yogesh Gupta attributed the strong performance to consistent demand for the company's products, noting that revenues and EPS were ahead of forecasts, and Annualized Recurring Revenue (ARR) saw a 1% increase on a constant currency basis. Progress Software's second-quarter revenue, however, marked a 2% decrease from the previous year's $178 million, reflecting a consistent trend in actual and constant currency terms.
Looking ahead, Progress Software provided guidance for the third quarter of 2024, expecting EPS in the range of $1.11 to $1.15, which falls below the analyst consensus of $1.21. Revenue projections for the same period are set between $174 million and $178 million, also trailing the expected $183.52 million. For the full year 2024, the company forecasts EPS to be between $4.70 and $4.80, narrowly edging past the analyst consensus of $4.69, with revenue guidance of $725 to $735 million, essentially in line with the consensus of $726.5 million.
CFO Anthony Folger expressed satisfaction with the quarter's results, highlighting revenues and EPS that exceeded the upper end of their most recent guidance. He also emphasized strong demand for their products and successful execution of their operational targets.
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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