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Progress Progress Announces Second Quarter 2021 Financial Results June 24 , 2021 Q2 Revenue and Earnings Per Share Exceed Guidance Full Year Guidance Raised BEDFORD , Mass . , June 24 , 2021 ( GLOBE NEWSWIRE ) -- Progress ( NASDAQ : PRGS ) , the leading provider of products to develop , deploy and manage high - impact business applications , today announced financial results for its fiscal second quarter ended May 31 , 2021 . Second Quarter 2021 Highlights : • Revenue of $ 122.5 million increased 22 % year - over - year on an actual currency basis , and 19 % on a constant currency basis . • Non - GAAP revenue of $ 129.2 million increased 26 % on an actual currency basis , and 23 % on a constant currency basis . • Annualized Recurring Revenue ( ARR ) of $ 437 million increased 23 % year - over - year on a constant currency basis . • Operating margin was 18 % and Non - GAAP operating margin was 38 % . • Diluted earnings per share was $ 0.30 compared to $ 0.37 in the same quarter last year , a decrease of 19 % . • Non - GAAP diluted earnings per share was $ 0.82 compared to $ 0.63 in the same quarter last year , an increase of 30 % . " We delivered a strong second quarter , which came in well ahead of our top- and bottom - line guidance ranges , demonstrating the success of our total growth strategy , " said Yogesh Gupta , CEO at Progress . " Our outperformance was driven by a combination of strength in our core business coupled with our acquired DevOps products from Chef , which is achieving nearly all of the integration synergies we expected ahead of schedule . The combination of another quarter of outperformance in our core businesses along with Chef proceeding ahead of plan makes us increasingly confident in our expectations for a strong year . " Additional financial highlights included ( 1 ) : ( In thousands , except percentages and per share amounts ) Revenue Income from operations Operating margin Net income Diluted earnings per share Cash from operations ( GAAP ) / Adjusted free cash flow ( Non - GAAP ) $ $ $ 54,690 GAAP ( 1 ) See Legal Notice Regarding Non - GAAP Financial Information Other fiscal second quarter 2021 metrics and recent results included : Three Months Ended % May 31 , 2021 May 31 , 2020 Change May 31 , 2021 $ 122,488 $ 100,383 22 % $ 129,198 $ 22,282 $ 25,309 ( 12 ) % $ 49,712 25 % ( 700 ) bps 38 % 36,513 $ 0.82 $ $ 38,399 18 % 13,557 $ 16,968 0.30 $ 0.37 $ 37,957 ( 20 ) % $ ( 19 ) % $ 44 % $ 55,411 Non - GAAP May 31 , 2020 $ 102,505 $ 39,590 % Change 28,656 0.63 39 % ( 100 ) bps 26 % 26 % 27 % 30 % 44 % • Cash , cash equivalents and short - term investments were $ 362.7 million at the end of the quarter . • DSO was 44 days compared to 47 days in the fiscal second quarter of 2020 and 53 days in the fiscal first quarter of 2021 . • Pursuant to the $ 250 million share authorization by the Board of Directors , Progress repurchased 0.4 million shares for $ 20.0 million during the second fiscal quarter of 2021. As of May 31 , 2021 , there was $ 155.0 million remaining under this authorization . • During the second quarter , Progress began operating as one distinct segment to align with the way that management internally analyzes the business . Progress previously reported results based on three segments . . During the second quarter , the company completed an offering of convertible senior unsecured notes in the aggregate amount of $ 360,000,000 , including the over allotment . To mitigate potential dilution to existing shareholders , the company privately negotiated capped call transactions that effectively doubled the conversion premium , for an effective conversion price of $ 89.88 per share . • On June 22 , 2021 , our Board of Directors declared a quarterly dividend of $ 0.175 per share of common stock that will be paid on September 15 , 2021 to shareholders of record as of the close of business on September 1 , 2021 . Anthony Folger , CFO , said : " We're very pleased with the performance of our core business and our continued success integrating Chef . Our second quarter results reflect strength across all product lines and we're very pleased with the growth in ARR and the improvement in our net retention rates , both of which were introduced as key metrics last quarter . At the same time , we are achieving acquisition synergies sooner than anticipated , which contributed to our strong profitability and cash flows . These results reinforce our optimism and increase our confidence , providing us with comfort to raise our FY21 guidance again this quarter . "