Progress Software Corp (NASDAQ:PRGS) stock rose 9.38% (As on April 1, 11:26:25 AM UTC-4, Source: Google Finance) after the company posted a solid earnings and revenue beat and raised its full-year outlook. It posted a net profit for the quarter of $10.9 million, down from a $22.6 million profit in the year-ago period. Progress Software’s strong performance was driven by solid demand across its product portfolio, with data platform and infrastructure management products performing particularly well. The company’s Annualized Recurring Revenue (ARR) grew 48% YoY on a constant currency basis to $836 million. Cash and cash equivalents were $124.2 million at the end of the quarter. Days sales outstanding was 48 days compared to 50 days in the fiscal first quarter of 2024 and 67 days in the fiscal fourth quarter of 2024. The company’s “excellent results” were driven by the strong performance of its data platforms and infrastructure management products, which had a “particularly solid” quarter in terms of revenue growth. Net Retention Rate had again surpassed 100%. The company has paid down $30 million on the revolving line of credit. Unlevered Free Cash Flow was $88 million, an increase of $10 million over the prior year quarter. Total Debt is $1.51 billion, resulting in a net debt position of $1.39 billion. The company is open to SaaS acquisitions due to their predictable revenue and operational efficiency.

PRGS in the first quarter of FY25 has reported the adjusted earnings per share of $1.31, beating the analysts’ estimates for the adjusted earnings per share of $1.06. The company had reported the adjusted revenue growth of 29 percent to $238 million in the first quarter of FY25, beating the analysts’ estimates for revenue of $235.6 million. For the quarter, non-GAAP operating margin was 39%.

Progress Software now expects to generate earnings of between $5.25 and $5.37 per share, up from its previous projection of $5 to $5.12 per share. However, it maintained its earlier revenue guidance of between $958 million and $970 million. Wall Street is still guiding for full-year earnings of just $5.06 per share on sales of $964.4 million.

For the current quarter, Progress Software said it’s looking for earnings of between $1.28 and $1.34 per share on sales of $235 million to $241 million. That’s also ahead of the Street’s view. Analysts had forecast second-quarter earnings of just $1.17 per share on revenue of $233.8 million.