Yahoo Finance Progress' (PRGS) Q4 Earnings Top Estimates, Revenues Up Y/Y
Progress Software PRGS reported its fourth-quarter fiscal 2022 non-GAAP earnings of $1.12 per share, which beat the Zacks Consensus Estimate by 2.75% and jumped 21.7% year over year.
Non-GAAP revenues of $159.2 million lagged the consensus mark by 2.45% but increased 10.7% year over year, driven by strong demand for Chef, OpenEdge, DataDirect and Sitefinity solutions.
On a constant-currency basis, annualized recurring revenues came in at $497 million, up 3.5% year over year.
Quarter Details
Software license revenues were $53.2 million, up 28.9% year over year. Maintenance and service revenues were $104 million, up 5.1% year over year.
Progress Software Corporation Price, Consensus and EPS Surprise
Progress Software Corporation price-consensus-eps-surprise-chart | Progress Software Corporation Quote
Sales and marketing expenses, as a percentage of revenues, decreased 130 basis points (bps) from the year-ago quarter’s level to 25.5%.
Product development expenses, as a percentage of revenues, decreased 90 bps from the year-ago quarter’s tally to 18.2%.
General and administrative expenses, as a percentage of revenues, increased 30 bps from the year-ago quarter’s level to 13.7%.
Progress reported a non-GAAP operating margin of 38.9%, which expanded 300 bps year over year.
Balance Sheet
As of Nov 30, 2022, cash and cash equivalents (and short-term investments) were $251.8 million compared with $225.9 million as of Aug 31, 2022.
Progress generated $37.5 million in adjusted free cash flow compared with $39.2 million in the previous quarter.
In the fiscal fourth quarter, Progress repurchased $1.5 million worth of shares. The company renewed its share repurchase authorization by $150 million, bringing the total buyback authorization to $228 million.
Guidance
For first-quarter fiscal 2023, Progress expects non-GAAP revenues between $157 million and $161 million. The Zacks Consensus Estimate for revenues is currently pegged at $152.84 million, indicating growth of 3.61% from the year-ago quarter’s reported figure.
Progress Software expects non-GAAP earnings to be $1.04-$1.08 per share. The consensus mark is currently pegged at $1.04 per share, indicating growth of 7.22% from the year-ago quarter’s reported figure.
For fiscal 2023, non-GAAP revenues are projected between $675 million and $685 million compared with $611 million reported in fiscal 2021.
Non-GAAP operating margin is expected to be 38% compared with 40% reported in fiscal 2021.
Non-GAAP earnings are projected between $4.09 and $4.17 per share compared with $4.13 reported in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2023 revenues and earnings is currently pegged at $633.80 million and $4.39 per share, respectively.
Zacks Rank & Stocks to Pick
Progress Software currently has a Zacks Rank #3 (Hold).
Investors interested in the Zacks Computer & Technology sector are eagerly awaiting earnings releases from players like International Business Machines IBM, SAP SAP and MSCI MSCI.
IBM, currently carrying a Zacks Rank #2 (Buy), is set to release its fourth-quarter 2022 results on Jan 25. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IBM’s fourth-quarter 2022 earnings has been steady at $3.57 per share in the past 30 days.
SAP, carrying a Zacks Rank #2, is set to report its fourth-quarter 2022 results on Jan 26.
The Zacks Consensus Estimate for SAP’s fourth-quarter 2022 earnings is pegged at $1.39 per share, up by a penny in the past 30 days.
MSCI, another Zacks Rank #2 stock, is scheduled to report fourth-quarter fiscal 2022 results on Jan 31.
The consensus mark for MSCI earnings is pegged at $2.71 per share, up by a penny in the past 30 days.
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