Progress (NASDAQ: PRGS) has released its financial results for the third quarter of fiscal year 2024, which ended on August 31, 2024. The company reported revenue of $178.7 million, a 2% increase compared to the same period last year. Non-GAAP revenue also increased by 2% year-over-year to $178.7 million.
The company's annualized recurring revenue ("ARR") remained relatively flat year-over-year at $582 million on a constant currency basis. Progress reported an operating margin of 23% and a non-GAAP operating margin of 41% for the quarter.
The company's net income for the quarter was $28.5 million, reflecting a 49% increase from the same period last year. Diluted earnings per share also saw significant growth, reaching $0.65 compared to $0.42 in the third quarter of the previous year, marking a 55% increase. Non-GAAP diluted earnings per share were $1.26, a 17% increase from $1.08 in the same quarter last year.
In terms of cash and cash equivalents, Progress reported $232.7 million at the end of the quarter. The company's days sales outstanding decreased to 45 days, compared to 49 days in the fiscal third quarter of 2023 and 41 days in the fiscal second quarter of 2024.
On September 9, 2024, Progress announced a definitive agreement to acquire ShareFile, a business unit of Cloud Software Group, Inc., for $875 million in cash.
Looking ahead, Progress provided updated guidance for the fiscal year ending November 30, 2024. The company expects revenue in the range of $745 million to $755 million, with diluted earnings per share projected to be between $1.69 and $1.81. The operating margin is forecasted to be in the range of 16% to 17%, and the effective tax rate is expected to be 17%.
Following these announcements, the company's shares moved 0.5%, and are now trading at a price of $57.15. Check out the company's full 8-K submission here.
