Progress, the provider of AI-powered infrastructure software, has announced its financial results for the second quarter of 2024, revealing some significant changes since the same period last year.
In the second quarter of 2024, the company reported a 2% year-over-year decrease in revenue, with non-GAAP revenue also declining by 2%. However, annualized recurring revenue (ARR) saw a 1% year-over-year increase on a constant currency basis.
Operating margin was reported at 16%, representing a 300 basis point improvement from the same quarter last year. Non-GAAP operating margin remained steady at 38%.
Diluted earnings per share (EPS) saw a substantial increase of 37% compared to the same quarter last year, reaching $0.37. Non-GAAP diluted EPS also increased, but by a more modest 3%, reaching $1.09.
In terms of cash flow, the company reported a 33% increase in cash from operations (GAAP) and adjusted free cash flow (non-GAAP) compared to the same period last year.
Other notable financial metrics included a decrease in days sales outstanding to 41 days from 44 days in the fiscal second quarter of 2023 and 50 days in the fiscal first quarter of 2024. Additionally, the company's cash and cash equivalents stood at $190.4 million at the end of the quarter.
Looking ahead, Progress raised its full-year revenue and earnings per share outlook and declared a quarterly dividend of $0.175 per share of common stock.
The company's CFO, Anthony Folger, expressed satisfaction with the second quarter results, highlighting that revenues and EPS were above the high end of their most recent guidance, and ARR increased versus the previous quarter.
The adjusted full-year guidance for 2024 includes revenue in the range of $725 million to $735 million, with diluted EPS expected to be between $1.98 and $2.10. The operating margin is anticipated to be 19%, with non-GAAP EPS in the range of $4.70 to $4.80.
The company also provided guidance for the fiscal third quarter ending August 31, 2024, with anticipated revenue in the range of $174 million to $178 million and diluted EPS between $0.48 and $0.52.
Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $48.7. For more information, read the company's full 8-K submission here.
