Progress Software Corp (NASDAQ:PRGS) stock rose 1.44% (As on January 17, 11:17:38 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23, while the software company issued an annual outlook for 2024 that’s higher than the previous financial year. Cash and cash equivalents were $127.0 million at the end of the quarter. Days sales outstanding was 62 days consistent with 62 days in the fiscal fourth quarter of 2022, and 49 days in the fiscal third quarter of 2023. Annualized Recurring Revenue (“ARR”) of $574 million increased 17% year-over-year on a constant currency basis. The company has delivered non-GAAP operating margin of 35% compared with 39% a year ago. Total operating expenses widened to $120.8 million from $103.2 million year-on-year. The company has generated $175 million in adjusted free cash flow, and substantially integrated MarkLogic ahead of schedule. In the fourth quarter, the company has paid down another $30 million of debt, and the company remains well-positioned operationally and financially for the next acquisition. MarkLogic will contribute to full-year results in fiscal 2024, further propelling the operating income and cash flow, as well as revenues.

PRGS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.02, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 13 percent to $177.5 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $174.12 million. Maintenance and services revenue climbed 16% to $120.7 million, while software licenses grew to $56.3 million from $53.2 million in the 2022 quarter.

Additionally, the company has declared a quarterly dividend of $0.175 per share of common stock, which will be paid on March 15, 2024 to shareholders of record as of the close of business on March 1, 2024. The company currently have $194M remaining under the share repurchase authorization.

Progress Software Corporation expects FY2024 earnings per share to be in the range of $4.58-$4.68, versus the consensus of $4.23. Progress Software Corporation anticipates FY2024 revenue to be in the range of $722-732 million, versus the consensus of 694.2 million. Progress Software also anticipates adjusted earnings of $1.12 to $1.16 per share for the current quarter, while adjusted revenue is pegged at $180 million to $184 million. Analysts expect normalized EPS of $1.14 on revenue of $180.5 million.