Progress Software program shares fall 5% on weak steering regardless of This fall beat

BURLINGTON, Mass. – Progress Software program Company (NASDAQ:PRGS) reported fourth quarter earnings that beat analyst expectations, however shares fell sharply, by 5.5%, in after-hours buying and selling as the corporate’s steering got here in under Wall Avenue estimates.

The software program firm posted adjusted earnings per share of $1.33 for the quarter ended November 30, 2024, surpassing the analyst consensus of $1.21. Income grew 21% YoY to $215 million, additionally topping expectations of $211.7 million.

Nevertheless, Progress Software program’s outlook for the upcoming fiscal yr disillusioned buyers. The corporate forecast full-year 2025 adjusted EPS of $5.00-$5.12, nicely under the $5.62 analysts had been projecting. First quarter EPS steering of $1.02-$1.08 additionally fell in need of the $1.44 consensus estimate.

The weak steering overshadowed an in any other case stable quarter, sending shares down 5.5% in after-hours buying and selling following the discharge.

“2024 was a powerful yr for Progress as we proceed to execute on our long-term technique to speculate and innovate, purchase and combine, and drive buyer success to ship Whole (EPA:TTEF) Development,” mentioned CEO Yogesh Gupta.

Progress Software program reported annualized recurring income of $842 million in This fall, up 46% YoY on a continuing foreign money foundation. The corporate accomplished its acquisition of ShareFile from Cloud Software program (ETR:SOWGn) Group through the quarter.

For fiscal 2024, Progress Software program generated money stream from operations of $211.5 million, up 22% from $173.9 million the prior yr.

CFO Anthony Folger famous that web income retention closed above 100% for the yr. Nevertheless, the corporate’s conservative outlook for 2025 seems to have overshadowed the constructive momentum from 2024.

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