Progress Software exceeded Q1 earnings and revenue estimates, with stock rising 14.5%.

From Nasdaq: 2025-04-03 10:07:00

Progress Software (PRGS) shares soared 14.5% after impressive first-quarter fiscal 2025 results. Non-GAAP earnings were $1.31 per share, up 4.8% year over year. Revenues of $238 million beat estimates by 0.92%, driven by strong demand for solutions like ShareFile. Annualized Recurring Revenue (ARR) reached $836 million, up 48% year over year.

In detail, software license revenues were down 8.8% while maintenance and service revenues increased by 48.9% year over year. Progress reported a non-GAAP operating margin of 39.3%. Cash and cash equivalents were $124.2 million as of Feb. 28, 2025, with total debt of $1.51 billion.

For fiscal 2025, PRGS raised its outlook with projected non-GAAP revenues between $958 million and $970 million, non-GAAP earnings per share between $5.25 and $5.37, and adjusted free cash flow between $283 million and $294 million. For the second quarter, non-GAAP revenues are expected between $235 million and $241 million.

Progress Software Corporation currently holds a Zacks Rank #3 (Hold). Better-ranked stocks in the technology sector include DoorDash (DASH), CSG Systems International (CSGS), and Meta Platforms (META), each carrying a Zacks Rank #2 (Buy). DoorDash shares have gained 13% year to date, while CSG Systems and Meta Platforms are set to report their first-quarter 2025 results soon.



Read more at Nasdaq: Progress Software Q1 Earnings & Revenues Beat Estimates, Stock Up