Progress Software PRGS reported first-quarter fiscal 2022 non-GAAP earnings of 97 cents per share that beat the Zacks Consensus Estimate by 14.12% and increased 2.1% year over year.
Non-GAAP revenues of $147.5 million surpassed the consensus mark by 5.37% and increased 11.9% year over year, driven by solid uptake of the company’s core products, namely, Data Direct, Chef and DevTools.
On a constant-currency basis, annualized recurring revenues (ARR) came in at $479 million, up 14% year over year.
Software license revenues were $42.8 million, up 28.3% year over year. Maintenance and service revenues were $102.2 million, up 16.2% year over year.
Sales and marketing expenses, as a percentage of revenues, decreased 120 basis points (bps) from the year-ago quarter’s level to 23.1%.
Progress Software Corporation Price, Consensus and EPS Surprise
Progress Software Corporation price-consensus-eps-surprise-chart | Progress Software Corporation Quote
Product development expenses, as a percentage of revenues, declined 50 bps from the year-ago quarter’s tally to 19.8%.
General and administrative expenses, as a percentage of revenues, increased 70 bps from the year-ago quarter’s level to 11.7%.
Progress reported non-GAAP operating margin of 39.8%, which contracted 320 bps year over year due to higher variable expenses and expenses related to the Kemp acquisition.
As of Feb 28, 2022, cash and cash equivalents (and short-term investments) were $173.3 million compared with $157.4 million as of Nov 30, 2021.
Progress Software generated $44.7 million in adjusted free cash flow compared with $42.4 million in the previous quarter.
For second-quarter fiscal 2022, Progress Software expects non-GAAP revenues between $145 million and $148 million. The Zacks Consensus Estimate for revenues is currently pegged at $147.91 million, indicating growth of 14.48% from the year-ago quarter’s reported figure.
Progress Software expects non-GAAP earnings to be 94-96 cents per share. The consensus mark is currently pegged at 88 cents, indicating growth of 7.3% from the year-ago quarter’s reported figure.
For fiscal 2022, non-GAAP revenues are projected between $605 million and $615 million compared with $557 million reported in fiscal 2021.
Non-GAAP operating margin is expected to be 39% compared with 41% reported in fiscal 2021.
Non-GAAP earnings are projected between $3.95 and $4.05 per share compared with $3.87 reported in fiscal 2021. The Zacks Consensus Estimate for fiscal 2022 revenues and earnings are currently pegged at $609.53 million and $4.01 per share, respectively.
Zacks Rank & Stocks to Pick
Progress Software currently has a Zacks Rank #3 (Hold).
Progress Software shares are down 4.3% year to date compared with the Computer and Technology sector’s decline of 9.7%.
Investors interested in the sector are eagerly awaiting earnings releases from players like Apple AAPL, International Business Machines IBM and ASGN ASGN.
Apple, a Zacks Rank #2 (Buy) stock, is scheduled to release second-quarter fiscal 2022 results on Apr 28. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings has moved upward by a penny to $6.16 per share in the past 30 days.
IBM, carrying a Zacks Rank #2, is set to report first-quarter 2022 results on Apr 19.
The Zacks Consensus Estimate for IBM’s 2022 earnings is pegged at $10.09 per share, steady in the past 30 days.
Another Zacks Rank #2 stock, ASGN, is scheduled to report first-quarter 2022 results on Apr 27.
The consensus mark for ASGN’s 2022 earnings is pegged at $6.19 per share, up by 0.8% in the past 30 days.
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