Progress Software Stock Slumps To 4-Month Lows Despite Robust Q4 Results: Retail Smells ‘Good’ Buying Opportunity
Synopsis
Annualized recurring revenue, a key operational metric for software companies, jumped 46% YoY to $842 million in the fourth quarter.
Progress Software Corp. (PRGS) stock plunged Wednesday despite the Burlington, Massachusetts-based application development platform provider’s fiscal year 2024 fourth-quarter beat.
The stock fell over 10% to $56.88 by mid-session, and the down move was accompanied by nearly three times the average volume. This marked the lowest level since Sept. 24, 2024.
Progress Software reported fourth-quarter non-GAAP earnings per share (EPS) of $1.33, up 30% from the third quarter’s $1.02. The bottom-line result exceeded the consensus estimate of $1.21, compiled by Koyfin, and also the company’s guidance of $1.15-$1.25.
Revenue rose 21% year-over-year (YoY) to $215 million, topping the $211.26 million consensus but below the high end of the guidance range of $207 million to $217 million.
Annualized recurring revenue (ARR) jumped 46% YoY to $842 million versus $582 million in the third quarter.
Non-GAAP operating margin was 37%.
Yogesh Gupta, CEO of Progress Software, said, “Mission-critical business applications at more than a hundred thousand businesses are powered by Progress products.”
“We are particularly excited about our recent acquisition of ShareFile, which adds an AI-powered SaaS content-centric collaboration platform to our portfolio and will contribute meaningfully to our top- and bottom-line."
The company guided first-quarter non-GAAP EPS to $0.51-$1.25 and revenue to $232 million to $238 million. It expects full-year non-GAAP EPS of $5.00 to $5.12 and revenue of $958 million to $970 million. Stocktwits data shows the consensus at $5.18 and $945.22 million.
On Stocktwits, retail sentiment toward Progress Software stock improved to ‘extremely bullish’ (95/100) from ‘bullish’ a day ago. Message volume stayed ‘extremely high.’
Some retailers on the platform saw the pullback as a good opportunity to accumulate shares.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.