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Annualized Recurring Revenue ("ARR") of $838 million Grew 46% year-over-year
Revenue of $237 million Grew 36% year-over-year
Raises Full Year Guidance for Revenue, Operating Margin, Earnings Per Share, and Cash Flow
Acquires Agentic RAG AI Company
BURLINGTON, Mass., June 30, 2025 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced financial results for its fiscal second quarter ended May 31, 2025.
Second Quarter 2025 Highlights:
"We're extremely pleased with our solid Q2 results" said Yogesh Gupta, CEO of Progress Software. "Revenue contributions were strong across all geographies resulting in ARR of $838 million or 46% year-over-year growth. Our Net Retention Rate was 100%, demonstrating the consistent strength of our product portfolio. Our confidence in the business is reflected in our raised guidance for FY25. Equally important, our integration of ShareFile is going extremely well as we have completed numerous major synergy milestones, and we remain confident in our ability to reach all our ShareFile targets by the end of the year."
Additional financial highlights included:
Three Months Ended | |||||||||||||||||||||
GAAP | Non-GAAP | ||||||||||||||||||||
(in thousands, except percentages and per share amounts) | May 31, 2025 | May 31, 2024 | % Change | May 31, 2025 | May 31, 2024 | % Change | |||||||||||||||
Revenue | $ | 237,355 | $ | 175,077 | 36 | % | $ | 237,355 | $ | 175,077 | 36 | % | |||||||||
Income from operations | $ | 38,616 | $ | 27,148 | 42 | % | $ | 95,461 | $ | 67,086 | 42 | % | |||||||||
Operating margin | 16 | % | 16 | % | 0 bps | 40 | % | 38 | % | 200 bps | |||||||||||
Net income | $ | 17,029 | $ | 16,188 | 5 | % | $ | 61,749 | $ | 47,899 | 29 | % | |||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.37 | 5 | % | $ | 1.40 | $ | 1.09 | 28 | % | |||||||||
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP) | $ | 29,996 | $ | 63,681 | (53 | )% | $ | 37,068 | $ | 64,073 | (42 | )% | |||||||||
$ | 51,579 | $ | 69,679 | (26 | )% |
See Important Information Regarding Non-GAAP Financial Measures, Liquidity Measures, and Select Performance Metrics and a reconciliation of non-GAAP adjustments to Progress’ GAAP financial results at the end of this press release.
Other fiscal second quarter 2025 metrics and recent results included:
"Our second quarter performance reflects the continued strong execution by our teams and this is further reflected in our increase to full year guidance across the board," said Anthony Folger, CFO of Progress Software. "Our ShareFile business is progressing well and we are ahead of schedule with the integration and moving swiftly towards reaching our synergy targets. On the balance sheet, we again made significant progress on paying down our revolving credit facility, with another $40 million this quarter, putting us on a solid trajectory to hit our goal of $160 million debt paydown this year."
Acquisition of Nuclia
In a separate press release, the Company also announced today its acquisition of Nuclia, an innovator in agentic Retrieval-Augmented Generation ("RAG") AI solutions. Nuclia provides unique, easy-to-use agentic RAG-as-a-service technology enabling organizations to automatically leverage their own proprietary business information to retrieve verifiable, accurate answers using GenAI. Nuclia will extend the end-to-end value of the Progress Data Platform while creating new opportunities to reach a broader market of organizations looking to leverage agentic RAG technology.
The acquisition was signed and closed today and is immaterial to Progress' financials.
To learn more about Nuclia, go to https://nuclia.com/.
2025 Business Outlook
Progress provides the following guidance for the fiscal year ending November 30, 2025 and the fiscal third quarter ending August 31, 2025:
Updated FY 2025 Guidance (June 30, 2025) | Prior FY 2025 Guidance (March 31, 2025) | ||||||||||
(in millions, except percentages and per share amounts) | GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||
Revenue | $962 - $974 | $962 - $974 | $958 - $970 | $958 - $970 | |||||||
Diluted earnings per share | $1.27 - $1.43 | $5.28 - $5.40 | $1.19 - $1.35 | $5.25 - $5.37 | |||||||
Operating margin | 15% | 38% - 39% | 14% - 15% | 38% | |||||||
Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) / Unlevered free cash flow (non-GAAP) | $218 - $230 | $228 - $240 | $216 - $228 | $226 - $238 | |||||||
$285 - $296 | $283 - $294 | ||||||||||
Effective tax rate | 17% | 20% | 19% | 20% |
Q3 2025 Guidance | |||
(in millions, except per share amounts) | GAAP | Non-GAAP | |
Revenue | $237 - $243 | $237 - $243 | |
Diluted earnings per share | $0.29 - $0.35 | $1.28 - $1.34 |
Based on current exchange rates, the expected positive currency translation impact on our:
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 second quarter of 2025 at 5:00 p.m. ET on Monday, June 30, 2025. Participants must register for the conference call here: https://register-conf.media-server.com/register/BIc386d20e6fbd46acbadafca492a42b35. The webcast can be accessed at: https://edge.media-server.com/mmc/p/bujcypbf/. 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 Software (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 | |
[email protected] | [email protected] | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(in thousands, except per share data) | May 31, 2025 | May 31, 2024 | % Change | May 31, 2025 | May 31, 2024 | % Change | |||||||||||||||
Revenue: | |||||||||||||||||||||
Software licenses | $ | 50,795 | $ | 53,979 | (6 | )% | $ | 109,240 | $ | 118,079 | (7 | )% | |||||||||
Maintenance, SaaS, and professional services | 186,560 | 121,098 | 54 | % | 366,130 | 241,683 | 51 | % | |||||||||||||
Total revenue | 237,355 | 175,077 | 36 | % | 475,370 | 359,762 | 32 | % | |||||||||||||
Costs of revenue: | |||||||||||||||||||||
Cost of software licenses | 2,987 | 2,497 | 20 | % | 5,912 | 5,228 | 13 | % | |||||||||||||
Cost of maintenance, SaaS, and professional services | 33,764 | 22,176 | 52 | % | 66,648 | 44,395 | 50 | % | |||||||||||||
Amortization of acquired intangibles | 10,537 | 7,398 | 42 | % | 20,959 | 15,257 | 37 | % | |||||||||||||
Total costs of revenue | 47,288 | 32,071 | 47 | % | 93,519 | 64,880 | 44 | % | |||||||||||||
Gross profit | 190,067 | 143,006 | 33 | % | 381,851 | 294,882 | 29 | % | |||||||||||||
Operating expenses: | |||||||||||||||||||||
Sales and marketing | 49,677 | 37,889 | 31 | % | 100,973 | 77,000 | 31 | % | |||||||||||||
Product development | 46,570 | 35,435 | 31 | % | 92,945 | 70,423 | 32 | % | |||||||||||||
General and administrative | 25,637 | 21,983 | 17 | % | 51,260 | 43,327 | 18 | % | |||||||||||||
Amortization of acquired intangibles | 26,063 | 16,316 | 60 | % | 51,871 | 33,705 | 54 | % | |||||||||||||
Cyber vulnerability response expenses, net | 730 | 3,036 | (76 | )% | 1,467 | 4,023 | (64 | )% | |||||||||||||
Restructuring expenses | 1,043 | 651 | 60 | % | 8,072 | 3,000 | 169 | % | |||||||||||||
Acquisition-related expenses | 1,731 | 548 | 216 | % | 4,221 | 1,250 | 238 | % | |||||||||||||
Total operating expenses | 151,451 | 115,858 | 31 | % | 310,809 | 232,728 | 34 | % | |||||||||||||
Income from operations | 38,616 | 27,148 | 42 | % | 71,042 | 62,154 | 14 | % | |||||||||||||
Other expense, net | (18,752 | ) | (7,020 | ) | 167 | % | (37,876 | ) | (14,419 | ) | 163 | % | |||||||||
Income before income taxes | 19,864 | 20,128 | (1 | )% | 33,166 | 47,735 | (31 | )% | |||||||||||||
Provision for income taxes | 2,835 | 3,940 | (28 | )% | 5,191 | 8,908 | (42 | )% | |||||||||||||
Net income | $ | 17,029 | $ | 16,188 | 5 | % | $ | 27,975 | $ | 38,827 | (28 | )% | |||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.40 | $ | 0.37 | 8 | % | $ | 0.65 | $ | 0.89 | (27 | )% | |||||||||
Diluted | $ | 0.39 | $ | 0.37 | 5 | % | $ | 0.63 | $ | 0.87 | (28 | )% | |||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 43,053 | 43,213 | — | % | 43,154 | 43,508 | (1 | )% | |||||||||||||
Diluted | 44,156 | 43,964 | — | % | 44,522 | 44,395 | — | % | |||||||||||||
Cash dividends declared per common share | $ | — | $ | 0.175 | (100 | )% | $ | — | $ | 0.350 | (100 | )% |
Stock-based compensation is included in the condensed consolidated statements of operations, as follows: | |||||||||||||||||
Cost of revenue | $ | 1,560 | $ | 912 | 71 | % | $ | 2,755 | $ | 1,898 | 45 | % | |||||
Sales and marketing | 3,663 | 2,458 | 49 | % | 6,695 | 4,770 | 40 | % | |||||||||
Product development | 4,984 | 3,391 | 47 | % | 9,394 | 7,056 | 33 | % | |||||||||
General and administrative | 6,534 | 5,228 | 25 | % | 12,580 | 10,729 | 17 | % | |||||||||
Total | $ | 16,741 | $ | 11,989 | 40 | % | $ | 31,424 | $ | 24,453 | 29 | % | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) | May 31, 2025 | November 30, 2024 | |||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 102,006 | $ | 118,077 | |
Accounts receivable, net | 140,122 | 163,575 | |||
Unbilled receivables, current portion | 34,136 | 34,672 | |||
Other current assets | 49,387 | 52,489 | |||
Total current assets | 325,651 | 368,813 | |||
Property and equipment, net | 12,474 | 13,746 | |||
Goodwill and intangible assets, net | 1,944,387 | 2,015,748 | |||
Right-of-use lease assets | 27,351 | 30,894 | |||
Unbilled receivables, non-current portion | 29,890 | 28,893 | |||
Other assets | 73,839 | 68,872 | |||
Total assets | $ | 2,413,592 | $ | 2,526,966 | |
Liabilities and shareholders’ equity | |||||
Current liabilities: | |||||
Accounts payable and other current liabilities | $ | 75,610 | $ | 113,801 | |
Convertible senior notes, current portion, net | 358,051 | — | |||
Operating lease liabilities, current portion | 8,250 | 9,202 | |||
Deferred revenue, current portion, net | 308,360 | 332,142 | |||
Total current liabilities | 750,271 | 455,145 | |||
Long-term debt, net | 660,000 | 730,000 | |||
Convertible senior notes, non-current portion, net | 440,244 | 796,267 | |||
Operating lease liabilities, non-current portion | 22,548 | 26,259 | |||
Deferred revenue, non-current portion, net | 80,219 | 72,270 | |||
Other non-current liabilities | 7,609 | 8,237 | |||
Stockholders’ equity: | |||||
Common stock and additional paid-in capital | 362,522 | 354,592 | |||
Retained earnings | 90,179 | 84,196 | |||
Total stockholders’ equity | 452,701 | 438,788 | |||
Total liabilities and stockholders’ equity | $ | 2,413,592 | $ | 2,526,966 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands) | May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | |||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 17,029 | $ | 16,188 | $ | 27,975 | $ | 38,827 | |||||||
Depreciation and amortization | 39,568 | 27,529 | 78,777 | 55,073 | |||||||||||
Stock-based compensation | 16,741 | 11,989 | 31,424 | 24,453 | |||||||||||
Other non-cash adjustments | (1,332 | ) | (812 | ) | 1,738 | 515 | |||||||||
Changes in operating assets and liabilities | (42,010 | ) | 8,787 | (40,971 | ) | 15,317 | |||||||||
Net cash flows from operating activities | 29,996 | 63,681 | 98,943 | 134,185 | |||||||||||
Capital expenditures | (495 | ) | (955 | ) | (1,785 | ) | (1,264 | ) | |||||||
Repurchases of common stock, net of issuances | (13,478 | ) | (44,636 | ) | (37,348 | ) | (59,553 | ) | |||||||
Dividend equivalent and dividend payments to stockholders | (295 | ) | (7,951 | ) | (654 | ) | (16,122 | ) | |||||||
Payments for acquisitions | — | — | (1,195 | ) | — | ||||||||||
Proceeds from the issuance of debt, net of payment of issuance costs | — | 431,929 | — | 431,929 | |||||||||||
Repayment of revolving line of credit and principal payment on term loan | (40,000 | ) | (337,813 | ) | (70,000 | ) | (371,250 | ) | |||||||
Purchase of capped calls | — | (42,210 | ) | — | (42,210 | ) | |||||||||
Other | 2,117 | (4,847 | ) | (4,032 | ) | (12,253 | ) | ||||||||
Net change in cash and cash equivalents | (22,155 | ) | 57,198 | (16,071 | ) | 63,462 | |||||||||
Cash and cash equivalents, beginning of period | 124,161 | 133,222 | 118,077 | 126,958 | |||||||||||
Cash and cash equivalents, end of period | $ | 102,006 | $ | 190,420 | $ | 102,006 | $ | 190,420 | |||||||
RECONCILIATIONS OF GAAP TO NON-GAAP SELECTED FINANCIAL MEASURES
(Unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands, except per share data) | May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | |||||||||||
Adjusted income from operations: | |||||||||||||||
GAAP income from operations | $ | 38,616 | $ | 27,148 | $ | 71,042 | $ | 62,154 | |||||||
Amortization of acquired intangibles | 36,600 | 23,714 | 72,830 | 48,962 | |||||||||||
Stock-based compensation | 16,741 | 11,989 | 31,424 | 24,453 | |||||||||||
Restructuring expenses | 1,043 | 651 | 8,072 | 3,000 | |||||||||||
Acquisition-related expenses | 1,731 | 548 | 4,221 | 1,250 | |||||||||||
Cyber vulnerability response expenses, net | 730 | 3,036 | 1,467 | 4,023 | |||||||||||
Non-GAAP income from operations | $ | 95,461 | $ | 67,086 | $ | 189,056 | $ | 143,842 | |||||||
Adjusted net income: | |||||||||||||||
GAAP net income | $ | 17,029 | $ | 16,188 | $ | 27,975 | $ | 38,827 | |||||||
Amortization of acquired intangibles | 36,600 | 23,714 | 72,830 | 48,962 | |||||||||||
Stock-based compensation | 16,741 | 11,989 | 31,424 | 24,453 | |||||||||||
Restructuring expenses | 1,043 | 651 | 8,072 | 3,000 | |||||||||||
Acquisition-related expenses | 1,731 | 548 | 4,221 | 1,250 | |||||||||||
Cyber vulnerability response expenses, net | 730 | 3,036 | 1,467 | 4,023 | |||||||||||
Provision for income taxes | (12,125 | ) | (8,227 | ) | (25,245 | ) | (16,688 | ) | |||||||
Non-GAAP net income | $ | 61,749 | $ | 47,899 | $ | 120,744 | $ | 103,827 | |||||||
Adjusted diluted earnings per share: | |||||||||||||||
GAAP diluted earnings per share | $ | 0.39 | $ | 0.37 | $ | 0.63 | $ | 0.87 | |||||||
Amortization of acquired intangibles | 0.83 | 0.54 | 1.64 | 1.10 | |||||||||||
Stock-based compensation | 0.37 | 0.27 | 0.71 | 0.56 | |||||||||||
Restructuring expenses | 0.02 | 0.02 | 0.18 | 0.07 | |||||||||||
Acquisition-related expenses | 0.04 | 0.01 | 0.09 | 0.03 | |||||||||||
Cyber vulnerability response expenses, net | 0.02 | 0.07 | 0.03 | 0.09 | |||||||||||
Provision for income taxes | (0.27 | ) | (0.19 | ) | (0.57 | ) | (0.38 | ) | |||||||
Non-GAAP diluted earnings per share | $ | 1.40 | $ | 1.09 | $ | 2.71 | $ | 2.34 | |||||||
Non-GAAP weighted avg shares outstanding - diluted | 44,156 | 43,964 | 44,522 | 44,395 | |||||||||||
OTHER NON-GAAP FINANCIAL MEASURES
(Unaudited)
Adjusted Free Cash Flow and Unlevered Free Cash Flow | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(in thousands) | May 31, 2025 | May 31, 2024 | % Change | May 31, 2025 | May 31, 2024 | % Change | |||||||||||||||
Cash flows from operations | $ | 29,996 | $ | 63,681 | (53 | )% | $ | 98,943 | $ | 134,185 | (26 | )% | |||||||||
Purchases of property and equipment | (495 | ) | (955 | ) | (48 | )% | (1,785 | ) | (1,264 | ) | 41 | % | |||||||||
Free cash flow | 29,501 | 62,726 | (53 | )% | 97,158 | 132,921 | (27 | )% | |||||||||||||
Add back: restructuring payments | 7,567 | 1,347 | 462 | % | 13,121 | 3,356 | 291 | % | |||||||||||||
Adjusted free cash flow | $ | 37,068 | $ | 64,073 | (42 | )% | $ | 110,279 | $ | 136,277 | (19 | )% | |||||||||
Add back: tax-effected interest expense | 14,511 | 5,606 | 159 | % | 29,253 | 11,481 | 155 | % | |||||||||||||
Unlevered free cash flow | $ | 51,579 | $ | 69,679 | (26 | )% | $ | 139,532 | $ | 147,758 | (6 | )% | |||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2025 GUIDANCE
(Unaudited)
Fiscal Year 2025 Updated Non-GAAP Operating Margin Guidance | |||||||
Fiscal Year Ending November 30, 2025 | |||||||
(in millions) | Low | High | |||||
GAAP income from operations | $ | 140.7 | $ | 149.2 | |||
GAAP operating margins | 15 | % | 15 | % | |||
Acquisition-related expense | 6.0 | 6.0 | |||||
Restructuring expense | 9.2 | 9.2 | |||||
Stock-based compensation | 63.0 | 63.0 | |||||
Amortization of acquired intangibles | 145.7 | 145.7 | |||||
Cyber vulnerability response expenses, net | 4.2 | 4.2 | |||||
Total adjustments(1) | 228.1 | 228.1 | |||||
Non-GAAP income from operations | $ | 368.8 | $ | 377.3 | |||
Non-GAAP operating margin | 38 | % | 39 | % | |||
(1) Total adjustments include preliminary estimates relating to the valuation of intangible assets acquired from ShareFile and restructuring expenses. The final amounts will not be available until the Company's internal procedures and reviews are completed. |
Fiscal Year 2025 Updated Non-GAAP Earnings per Share and Effective Tax Rate Guidance | |||||||
Fiscal Year Ending November 30, 2025 | |||||||
(in millions, except per share data) | Low | High | |||||
GAAP net income | $ | 56.9 | $ | 64.8 | |||
Adjustments (from previous table) | 228.1 | 228.1 | |||||
Income tax adjustment(2) | (47.7 | ) | (48.0 | ) | |||
Non-GAAP net income | $ | 237.3 | $ | 244.9 | |||
GAAP diluted earnings per share | $ | 1.27 | $ | 1.43 | |||
Non-GAAP diluted earnings per share | $ | 5.28 | $ | 5.40 | |||
Diluted weighted average shares outstanding | 45.0 | 45.4 |
2 Tax adjustment is based on a non-GAAP effective tax rate of approximately 20%, calculated as follows: | ||||||||
Fiscal Year Ending November 30, 2025 | ||||||||
Low | High | |||||||
Non-GAAP income from operations | $ | 368.8 | $ | 377.3 | ||||
Other (expense) income | (72.2 | ) | (71.2 | ) | ||||
Non-GAAP income from continuing operations before income taxes | 296.6 | 306.1 | ||||||
Non-GAAP net income | 237.3 | 244.9 | ||||||
Tax provision | $ | 59.3 | $ | 61.2 | ||||
Non-GAAP tax rate | 20 | % | 20 | % | ||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR FISCAL YEAR 2025 GUIDANCE
(Unaudited)
Fiscal Year 2025 Adjusted Free Cash Flow and Unlevered Free Cash Flow Guidance | |||||||
Fiscal Year Ending November 30, 2025 | |||||||
(in millions) | Low | High | |||||
Cash flows from operations (GAAP) | $ | 218 | $ | 230 | |||
Purchases of property and equipment | (7 | ) | (7 | ) | |||
Add back: restructuring payments | 17 | 17 | |||||
Adjusted free cash flow (non-GAAP) | 228 | 240 | |||||
Add back: tax-effected interest expense | 57 | 56 | |||||
Unlevered free cash flow (non-GAAP) | $ | 285 | $ | 296 |
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2025 GUIDANCE
(Unaudited)
Q3 2025 Non-GAAP Earnings per Share Guidance | |||||||
Three Months Ending August 31, 2025 | |||||||
Low | High | ||||||
GAAP diluted earnings per share | $ | 0.29 | $ | 0.35 | |||
Acquisition-related expense | 0.02 | 0.02 | |||||
Restructuring expense | 0.01 | 0.01 | |||||
Stock-based compensation | 0.35 | 0.35 | |||||
Amortization of acquired intangibles | 0.83 | 0.83 | |||||
Cyber vulnerability response expenses, net | 0.03 | 0.03 | |||||
Total adjustments(1) | 1.24 | 1.24 | |||||
Income tax adjustment | (0.25 | ) | (0.25 | ) | |||
Non-GAAP diluted earnings per share | $ | 1.28 | $ | 1.34 | |||
(1) Total adjustments include preliminary estimates relating to the valuation of intangible assets acquired from ShareFile and restructuring expenses. The final amounts will not be available until the Company's internal procedures and reviews are completed. |
Important Information Regarding Non-GAAP Financial Measures, Liquidity Measures and Select Performance Metrics
Progress furnishes certain non-GAAP supplemental information to our financial results. We use such non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that excluding the effects of certain GAAP-related items helps to illustrate underlying trends in our business and provides us with a more comparable measure of our continuing business, as well as greater understanding of the results from the primary operations of our business. Management also uses such non-GAAP financial measures to establish budgets and operational goals, evaluate performance, and allocate resources. In addition, the compensation of our executives and non-executive employees is based in part on the performance of our business as evaluated by such non-GAAP financial measures. We believe these non-GAAP financial measures enhance investors’ overall understanding of our current financial performance and our prospects for the future by: (i) providing more transparency for certain financial measures, (ii) presenting disclosure that helps investors understand how we plan and measure the performance of our business, (iii) affording a view of our operating results that may be more easily compared to our peer companies, and (iv) enabling investors to consider our operating results on both a GAAP and non-GAAP basis (including following the integration period of our prior acquisitions). However, this non-GAAP information is not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP") and should be considered in conjunction with our GAAP results as the items excluded from the non-GAAP information may have a material impact on Progress’ financial results. A reconciliation of non-GAAP adjustments to Progress' GAAP financial results is included in the tables above.
In the noted fiscal periods, we adjusted for the following items from our GAAP financial results to arrive at our non-GAAP financial measures:
In the noted fiscal periods, we also present the following liquidity measures:
In the noted fiscal periods, we also present the following select performance metrics:
Note Regarding Forward-Looking Statements
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like "believe," "may," "could," "would," "might," "should," "expect," "intend," "plan," "target," "anticipate" and "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this press release include, but are not limited to, statements regarding Progress' business outlook (including future acquisition activity) and financial guidance. There are a number of factors that could cause actual results or future events to differ materially from those anticipated by the forward-looking statements, including, without limitation: (i) economic, geopolitical and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price; (ii) our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses; (iii) we may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, fluctuations in currency exchange rates, or a decline in our renewal rates for contracts; (iv) if the security measures for our software, services, other offerings or our internal information technology infrastructure are compromised or subject to a successful cyber-attack, or if our software offerings contain significant coding or configuration errors or zero-day vulnerabilities, we may experience reputational harm, legal claims and financial exposure; and the results of inquiries, investigations and legal claims regarding the MOVEit Vulnerability remain uncertain, while the ultimate resolution of these matters could result in losses that may be material to our financial results for a particular period; (v) future acquisitions may not be successful or may involve unanticipated costs or other integration issues that could disrupt our existing operations; and (vi) expected synergies and benefits of the ShareFile acquisition may not be realized which could negatively impact our future results of operations and financial condition. For further information regarding risks and uncertainties associated with Progress' business, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended November 30, 2024. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
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