Annualized Recurring Revenue ("ARR") of $836 million Grew 48% year-over-year
Revenue of $238 million Grew 29% year-over-year
ShareFile Integration Underway
BURLINGTON, Mass., March 31, 2025 (GLOBE NEWSWIRE) -- Progress (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced financial results for its fiscal first quarter ended February 28, 2025.
First Quarter 2025 Highlights:
- Revenue and non-GAAP revenue of $238 million increased 29% year-over-year on an actual and 30% on a constant currency basis.
- Annualized Recurring Revenue ("ARR") of $836 million increased 48% year-over-year on a constant currency basis.
- Operating margin was 14% and non-GAAP operating margin was 39%.
- Diluted earnings per share was $0.24 compared to $0.51 in the same quarter last year, a decrease of 53%.
- Non-GAAP diluted earnings per share was $1.31 compared to $1.25 in the same quarter last year, an increase of 5%.
Additional financial highlights included:
Three Months Ended | |||||||||||||||||||||||
GAAP | Non-GAAP | ||||||||||||||||||||||
(In thousands, except percentages and per share amounts) | February 28, 2025 | February 29, 2024 | % Change | February 28, 2025 | February 29, 2024 | % Change | |||||||||||||||||
Revenue | $ | 238,015 | $ | 184,685 | 29 | % | $ | 238,015 | $ | 184,685 | 29 | % | |||||||||||
Income from operations | $ | 32,426 | $ | 35,006 | (7 | )% | $ | 93,595 | $ | 76,756 | 22 | % | |||||||||||
Operating margin | 14 | % | 19 | % | (500) bps | 39 | % | 42 | % | (300) bps | |||||||||||||
Net income | $ | 10,946 | $ | 22,639 | (52 | )% | $ | 58,995 | $ | 55,928 | 5 | % | |||||||||||
Diluted earnings per share | $ | 0.24 | $ | 0.51 | (53 | )% | $ | 1.31 | $ | 1.25 | 5 | % | |||||||||||
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP)
| $ | 68,947 | $ | 70,504 | (2 | )% | $ | 73,211 | $ | 72,204 | 1 | % | |||||||||||
$ | 87,954 | $ | 78,079 | 13 | % | ||||||||||||||||||
Other fiscal first quarter 2025 metrics and recent results included:
- Cash and cash equivalents were $124.2 million at the end of the quarter.
- Days sales outstanding was 48 days compared to 50 days in the fiscal first quarter of 2024 and 67 days in the fiscal fourth quarter of 2024.
2025 Business Outlook
Progress provides the following guidance for the fiscal year ending November 30, 2025 and the fiscal second quarter ending May 31, 2025:
Updated FY 2025 Guidance (March 31, 2025) | Prior FY 2025 Guidance (January 21, 2025) | ||||||||||
(In millions, except percentages and per share amounts) | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||
Revenue | $958 - $970 | $958 - $970 | $958 - $970 | $958 - $970 | |||||||
Diluted earnings per share | $1.19 - $1.35 | $5.25 - $5.37 | $1.08 - $1.23 | $5.00 - $5.12 | |||||||
Operating margin | 14% - 15 | % | 38 | % | 14% - 15 | % | 37% - 38 | % | |||
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP) | $216 - $228 | $226 - $238 | $216 - $228 | $225 - $237 | |||||||
$283 - $294 | $282 - $294 | ||||||||||
Effective tax rate | 19 | % | 20 | % | 21 | % | 20 | % | |||
Q2 2025 Guidance | |||||
(In millions, except per share amounts) | GAAP | Non-GAAP | |||
Revenue | $235 - $241 | $235 - $241 | |||
Diluted earnings per share | $0.24 - $0.30 | $1.28 - $1.34 | |||
- Fiscal year 2025 business outlook compared to 2024 exchange rates is approximately $2.8 million on revenue.
- Fiscal Q2 2025 business outlook compared to 2024 exchange rates is approximately $0.1 million on revenue.
To the extent that there are changes in exchange rates versus the current environment and/or our expectations, this may have an impact on Progress' business outlook.
Conference Call
Progress will hold a conference call to review its financial results for the fiscal first quarter of 2025 at 5:00 p.m. ET on Monday, March 31, 2025. Participants must register for the conference call here: https://register-conf.media-server.com/register/BIb86bb577ced14b9fa67069eb761f36a9. The webcast can be accessed at: https://edge.media-server.com/mmc/p/bt5rgqn7. The conference call will include comments followed by questions and answers. Attendees must register for the webcast and an archived version of the conference call and supporting materials will be available on the Progress website within the investor relations section after the live conference call.
About Progress
Progress (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and digital experiences with agility and ease. Customers get a trusted provider in Progress, with the products, expertise and vision they need to succeed. Over 4 million developers and technologists at hundreds of thousands of enterprises depend on Progress. Learn more at www.progress.com.
Progress and Progress Software are trademarks or registered trademarks of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.
Investor Contact: | Press Contact: | |
Michael Micciche | Jeff Young | |
Progress Software | Progress Software | |
+1 781 850 8450 | +1 781 280 4000 | |
Investor-Relations@progress.com | PR@progress.com | |
(Unaudited)
Three Months Ended | |||||||||||
(In thousands, except per share data) | February 28, 2025 | February 29, 2024 | % Change | ||||||||
Revenue: | |||||||||||
Software licenses | $ | 58,445 | $ | 64,100 | (9 | )% | |||||
Maintenance, SaaS, and professional services | 179,570 | 120,585 | 49 | % | |||||||
Total revenue | 238,015 | 184,685 | 29 | % | |||||||
Costs of revenue: | |||||||||||
Cost of software licenses | 2,925 | 2,731 | 7 | % | |||||||
Cost of maintenance, SaaS, and professional services | 32,884 | 22,219 | 48 | % | |||||||
Amortization of acquired intangibles | 10,422 | 7,859 | 33 | % | |||||||
Total costs of revenue | 46,231 | 32,809 | 41 | % | |||||||
Gross profit | 191,784 | 151,876 | 26 | % | |||||||
Operating expenses: | |||||||||||
Sales and marketing | 51,296 | 39,111 | 31 | % | |||||||
Product development | 46,375 | 34,988 | 33 | % | |||||||
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