Q3 2024 Progress Software Corp Earnings Call Transcript
Key Points
- Revenue grew by 2% year-over-year to $179 million, exceeding the high end of guidance.
- Earnings per share (EPS) increased by 17% year-over-year, reflecting strong expense management.
- Annual Recurring Revenue (ARR) increased to $582 million, with a net retention rate of 99%.
- The company generated excellent cash flows with Days Sales Outstanding (DSO) at 45 days.
- The SEC concluded its investigation into the MOVEit vulnerability with no enforcement action recommended.
- The proposed acquisition of ShareFile will result in negative adjusted free cash flow of approximately $15 million to $20 million in Q4.
- The decision to suspend the quarterly cash dividend upon closing the ShareFile acquisition may not be well-received by some shareholders.
- Integration of ShareFile, a larger acquisition, poses a significant challenge and risk.
- The company’s net debt position stands at $577 million, with net leverage of approximately two times trailing 12 months adjusted EBITDA.
- Deferred revenue was down slightly from the second quarter, reflecting normal seasonality but indicating potential volatility.
Good day and welcome to the Progress Software Corporation Q3 2024 earnings call (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker Mr. Mike Micciche, Senior Vice President, Investor Relations. Please go ahead sir.
Okay. Thank you, Shuri. It's always a pleasure to have you with us. Good afternoon, everybody. Thanks for joining us for Progress Software's third quarter 2024 financial results conference call. On the line with me today are Yogesh Gupta, President and CEO; and Anthony Folger, our Chief Financial Officer.
Before we get started, let's go over our Safe Harbor statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, our proposed acquisition of ShareFile, which we announced on 9 September, and other information that might be considered forward-looking.
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