Progress Software Exceeds Earnings Guidance, Reports Strong Q4 2024 Results
Progress Software Corporation has announced its Q4 2024 financial results, exceeding earnings guidance with a strong performance across its product portfolio. The company's data platform products, including MarkLogic, OpenEdge, and DataDirect, saw continued demand, while its AIOps network management products also performed well.
As reported by Yogesh Gupta, Senior Vice President of Progress Software, the company's data platform products are the foundation for mission-critical applications at over 100,000 businesses. This is particularly significant in today's business environment where data is increasingly important for responsible AI applications.
Progress Software exceeded its earnings and free cash flow guidance, with ARR growing by 46% in constant currency. The company also reported a strong net retention rate, exceeding 100%, even when excluding the impact of ShareFile from its results.
The company generated $238 million in unlevered free cash flow on revenues of $753 million, close to the high end guidance of $755 million. ShareFile contributed only one month of revenue in Q4, yet Progress Software's strong top-line performance and expense management led to significant outperformance in earnings and free cash flow.
Gupta expressed pride in the company's team for their dedication and commitment to excellence. He also highlighted some key highlights from FY 2024, including the conclusion of investigations into the MOVEit vulnerability by international data privacy regulators without action, and the successful integration process following the acquisition of ShareFile on October 31.
The acquisition of ShareFile has provided Progress Software with a significant opportunity for growth and synergy. The company is working diligently to end its reliance on transition services from Cloud Software Group (CSG) in a rapid and timely manner. Some immediate synergies have already been completed, including the elimination of duplicate infrastructure and the transitioning of ShareFile employees to the company's collaboration and HR systems.
Progress Software's Q4 2024 results demonstrate the company's ability to adapt and thrive in a rapidly changing business environment. With a strong product portfolio and a commitment to excellence, Progress Software is well-positioned for continued growth and success.
