Progress Software program inventory surges as fiscal Q3 outcomes crush expectations, raises yr view
Growth instruments pioneer Progress Software program this afternoon reported fiscal Q3 income and revenue that simply surpassed Wall Road’s expectations, and raised its yr outlook for income and revenue above consensus as nicely.
The report despatched Progress shares higher by 8% in late trading.
CEO Yogesh Gupta mentioned the corporate was “very happy to announce Q3 outcomes that considerably beat our earlier steering for income and earnings,” including, “and we’re elevating 2021 steering for the third time this yr.”
Added Gupta, “We additionally introduced the signing of a definitive settlement to accumulate Kemp, a frontrunner within the Software Expertise (‘AX’) area. Kemp meets all our acquisition standards, suits completely with our whole progress technique, and brings a really gifted workforce to Progress.”
In a separate release, Progress mentioned it would purchase privately held Kemp Applied sciences, a maker of utility expertise administration software program, for $258 million in money.
Kemp, based in 2000, relies in New York Metropolis.
As Progress describes the corporate’s merchandise,
Kemp Loadmaster and Flowmon Community Visibility merchandise monitor utility efficiency, and distribute and steadiness visitors and workloads throughout servers, within the cloud or on premise, making certain excessive efficiency and availability. They do that by leveraging machine studying to determine anomalies and alert IT professionals earlier than end-users are impacted. These capabilities complement Progress choices, reminiscent of WhatsUp Gold, a market chief in easy-to-use community administration. Mixed, they may supply the perfect utility expertise answer out there.
Income within the three months resulted in August rose 40%, yr over yr, to $152.6 million, yielding a internet revenue of $1.18 a share.
Analysts had been modeling $131 million and 82 cents per share.
The corporate’s annualized recurring income rose by 25% to $444 million, Progress mentioned.
For the present quarter, the corporate sees income of $134 million to $138 million, and EPS in a spread of 73 cents to 75 cents. That compares to consensus for $141 million and an 86-cent revenue per share.
For the complete yr, the corporate now sees income in a spread of $548 million to $552 million, and EPS of $3.68 to $3.70. That compares to consensus of $533 million and a $3.47 per share.
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