Progress Software, a global software company, reported lower profits in its fiscal fourth quarter as both revenue and costs saw a significant rise.
Profit and Earnings
In the three months ended Nov. 30, the company recorded a profit of $15.3 million, or 34 cents per share, compared to $23.7 million, or 54 cents per share, in the same quarter last year. Adjusted earnings excluding one-time items were $1.02 per share, surpassing analysts’ expectations of 91 cents per share, according to FactSet.
Revenue Growth
Progress Software’s revenue for the quarter reached $177 million, up from $157.1 million in the year-ago quarter. This figure also exceeded analyst forecasts of $174.1 million.
Positive Performance Indicators
Chief Financial Officer Anthony Folger highlighted the company’s positive performance indicators, stating that annual recurring revenue increased by 17% year-over-year and net retention remained at 100%, aligning with the company’s desired target.
Increased Costs
While the company experienced growth in revenue, it also faced an increase in costs. Total costs of revenue rose by 43%, and total operating expenses increased by 17%.
