Progress Software Corp (NASDAQ: PRGS) stock rose 11.2% on 28th June, 2019 (as of 12:40 pm GMT-4; Source: Google finance) driven by better than expected results for the second quarter of FY 19. Total bookings were $20.2 million, up 4% versus last year and rebounding nicely from Q1, with 20% sequential growth. The year-over-year bookings increase was primarily due to higher maintenance renewal bookings for both DevTools and Sitefinity. Further, North America revenue was $59.7 million, up 26% versus Q2 of 2018; EMEA revenue was $36.1 million, up 3%; Latin America revenue was $4.6 million, up 8%; and Asia Pacific revenue was $5.6 million, down 10%.
PRGS in the second quarter of FY 19 has reported the adjusted earnings per share of 65 cents, beating the analysts’ estimates for the adjusted earnings per share of 58 cents, as per analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 11 percent to $100 million in the second quarter of FY 19, beating the analysts’ estimates for revenue of $98.2 million. The revenue grew mainly due to the timing of several large OEM renewals within the DCI segment and by better-than-expected license sales to direct enterprises within the OpenEdge segment.
License revenue of $29.8 million increased by 32% from a year ago at actual exchange rates and by 35% on a constant currency basis. The increase was mainly due to the renewal of a higher number of multiyear-term OEM contracts in the DCI segment as compared to last year as well as a license revenue from Ipswitch for the month of May. Maintenance and services revenue was $73.7 million, an increase of 5% year-over-year at actual exchange rates and 7% on a constant currency basis. This increase was again primarily due to the addition of Ipswitch.
Moreover, OpenEdge revenue was $71.3 million for the second quarter, up 6% versus Q2 2018. For the OpenEdge product line, although license revenue from direct enterprises was higher than expected for the quarter, it was down year-over-year due to a difficult comparison versus Q2 of 2018. For DCI segment, the revenue was $12.9 million for the quarter, nearly 4x the revenue in Q2 of last year.
For the third quarter of 2019, Progress Software expects the adjusted earnings to be in the range of 68 cents to 70 cents a share and adjusted revenue is expected to be in the range of $109 million to $112 million, while analysts had forecast earnings of 66 cents a share on revenue of $110.9 million.