Progress Software (NASDAQ: PRGS) reported Q1 EPS of $0.76, $0.06 better than the analyst estimate of $0.70. Revenue for the quarter came in at $113.8 million versus the consensus estimate of $112.06 million.

“Q1 was a very strong quarter for us,” said Yogesh Gupta, CEO at Progress. “We exceeded both our revenue and EPS guidance, sustaining the momentum we achieved in 2019. Given the durable nature of our business, I’m confident that we can deliver solid results despite the current level of macro-economic uncertainty. Longer-term, we remain optimistic in our opportunity to drive shareholder value through accretive acquisitions in the software infrastructure space."

Anthony Folger, CFO, said: “We achieved solid cash flows in Q1, and our strong operating margins and EPS growth for the quarter demonstrate the significant leverage we have in our business. While our 2020 results will be impacted by the economic challenges brought on by the COVID-19 crisis, we remain confident in the overall health of our business, and in our ability to continue to execute on our strategy.”

Other fiscal first quarter 2020 metrics and recent results included:

• Cash, cash equivalents and short-term investments were $177.1 million at the end of the quarter;
• DSO was 49 days compared to 56 days in both the fiscal first quarter of 2019 and the fiscal fourth quarter of 2019;
• Pursuant to the $250 million share authorization by the Board of Directors, Progress repurchased 0.4 million shares for $20.0 million during the fiscal first quarter of 2020. As of February 29, 2020, there was $230.0 million remaining under this authorization; and
• On March 18, 2020, our Board of Directors declared a quarterly dividend of $0.165 per share of common stock that will be paid on June 15, 2020 to shareholders of record as of the close of business on June 1, 2020.

GUIDANCE:

Progress Software sees FY2020 EPS of $2.73-$2.80, versus the consensus of $2.86. Progress Software sees FY2020 revenue of $428-438 million, versus the consensus of $448.51 million.

For earnings history and earnings-related data on Progress Software (PRGS) click here.