Progress Software Corp (NASDAQ: PRGS) stock rose over 0.3% on 26th June, 2020 (as of 11:35 am GMT-4; Source: Google finance) after the company raised its outlook for the year despite mixed results for the second quarter of FY 20. The company reported second-quarter net income of $17 million compared to $8.2 million, in the year-ago period. During the quarter, the company had signed 2 new important customers for DCI: one, a major U.S.-based financial media and publishing firm; and the other, one of the world’s largest global e-commerce companies. The company ended the quarter with cash, cash equivalents and short-term investments of $204 million and debt of $293 million.
Moreover, during the second quarter, the company had released OpenEdge 12.2, which features improved availability and security, and MOVEit 2020, which further improves secure data file transfer for remote workforces. The company had also launched new releases of the DevTools products, extending the lead and providing the first and most comprehensive set of native development tools for Microsoft Blazor and of Sitefinity, which is the company’s market-leading digital experience platform.
PRGS in the second quarter of FY 20 has reported the adjusted earnings per share of 63 cents, missing the analysts’ estimates for the adjusted earnings per share of 64 cents. The company had reported one percent fall in the adjusted revenue to $102.5 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of $99.2 million. The company’s net revenue retention rate on maintenance was well over 90%, and the SaaS-related revenue from the OpenEdge ISVs who have deployed their applications in the cloud remains to be solid and steady.
Progress Software forecast adjusted earnings to be in the range of 69 cents to 71 cents a share on adjusted revenue expected to be in the range of $104 million to $109 million for the third quarter. The company expects the range of $2.82 to $2.86 a share on adjusted revenue expected to be in the range of $433 million to $443 million for the year. Previously, the company had forecast earnings of $2.73 to $2.80 a share on revenue of $428 million to $438 million for the year. The analysts surveyed by FactSet project earnings to be of 64 cents a share on revenue to be of $105.1 million for the third quarter, and $2.78 a share on revenue of $432.6 million for the year. The company continues to expect ACV to be $32 million to $33 million for the full year 2020, consistent with the actual performance in 2019.