Progress Software Sees Q3 EPS $1.15 Vs $1.21 Est.; Revenue $174M-$178M Vs $183.52M Est.; Revises FY24 EPS From $4.65-$4.75 To $4.70-$4.80 Vs $4.69 Est.; Revenue From $722M-$732M To $725M-$735M $ Vs $726.5M Est.
2024 Business Outlook
Progress provides the following guidance for the fiscal year ending November 30, 2024 and the fiscal third quarter ending August 31, 2024:
| Updated FY 2024 Guidance (June 25, 2024) | Prior FY 2024 Guidance (March 26, 2024) | ||||
| (In millions, except percentages and per share amounts) | GAAP | Non-GAAP1 | GAAP | Non-GAAP1 | |
| Revenue | $725 - $735 | $725 - $735 | $722 - $732 | $722 - $732 | |
| Diluted earnings per share | $1.98 - $2.10 | $4.70 - $4.80 | $1.94 - $2.06 | $4.65 - $4.75 | |
| Operating margin | 19% | 39% - 40% | 19% - 20% | 39% - 40% | |
| Cash from operations (GAAP) / Adjusted free cash flow (non-GAAP) | $205 - $215 | $205 - $215 | $205 - $215 | $205 - $215 | |
| Effective tax rate | 20% | 20% | 20% | 20% | |
| Q3 2024 Guidance | ||
| (In millions, except per share amounts) | GAAP | Non-GAAP1 |
| Revenue | $174 - $178 | $174 - $178 |
| Diluted earnings per share | $0.48 - $0.52 | $1.11 - $1.15 |
Based on current exchange rates, the expected positive currency translation impact on Progress' fiscal year 2024 business outlook compared to 2023 exchange rates on GAAP and non-GAAP revenue is approximately $0.7 million, and approximately $0.02 on GAAP and non-GAAP diluted earnings per share. The expected negative currency translation impact on Progress' fiscal Q3 2024 business outlook compared to 2023 exchange rates on GAAP and non-GAAP revenue is approximately $0.5 million. The expected impact on GAAP and non-GAAP diluted Q3 2024 earnings per share is not expected to be material from an accounting perspective. Fluctuations in exchange rates can impact our future performance.