Progress Software Exceeds Q3 Expectations and Raises Full-Year Outlook; Stock Increased by 4%

BURLINGTON, Mass. – Progress Software Corporation (NASDAQ: PRGS) reported stronger-than-expected third-quarter results and increased its full-year guidance, resulting in a 4.99% rise in shares during after-hours trading.

The AI-driven infrastructure software provider recorded adjusted earnings per share of $1.26 for the quarter ending August 31, surpassing analyst estimates of $1.14. Revenue reached $179 million, exceeding the consensus forecast of $176.1 million and reflecting a 2% year-over-year growth.

“This is a very exciting time for Progress. Our Q3 results were ahead of our guidance, and I am extremely pleased with our execution during the quarter,” stated CEO Yogesh Gupta.

For the complete fiscal year 2024, Progress Software now anticipates adjusted earnings per share to range from $4.75 to $4.85, an increase from the previous estimate of $4.70 to $4.80. The company also raised its revenue outlook to between $745 million and $755 million, compared to the earlier forecast of $725 million to $735 million.

This optimistic outlook reflects Progress Software’s confidence in its business momentum and recent acquisition strategies. Earlier this month, the company announced plans to acquire ShareFile from Cloud Software Group for $875 million.

“We expect the deal to close before the end of our fiscal year, and we are eager to begin integrating ShareFile’s team and products into the Progress organization,” Gupta added.