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Progress Progress Announces Third Quarter 2021 Financial Results September 23 , 2021 Q3 Revenue and EPS Significantly Ahead of Guidance Full Year 2021 Guidance Raised Again BEDFORD , Mass . , Sept. 23 , 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 third quarter ended August 31 , 2021 . Third Quarter 2021 Highlights : • Revenue of $ 147.4 million increased 34 % year - over - year on an actual currency basis , and 33 % on a constant currency basis . • Non - GAAP revenue of $ 152.6 million increased 38 % on an actual currency basis , and 36 % on a constant currency basis . • Annualized Recurring Revenue ( ARR ) of $ 444 million increased 25 % year - over - year on a constant currency basis . • Operating margin was 31 % and Non - GAAP operating margin was 47 % . • Diluted earnings per share was $ 0.70 compared to $ 0.53 in the same quarter last year , an increase of 32 % . • Non - GAAP diluted earnings per share was $ 1.18 compared to $ 0.78 in the same quarter last year , an increase of 51 % . " We're very pleased to announce Q3 results that significantly beat our previous guidance for revenue and earnings , and we're raising 2021 guidance for the third time this year , " said Yogesh Gupta , CEO at Progress . " We also announced the signing of a definitive agreement to acquire Kemp , a leader in the Application Experience ( ' AX ' ) space . Kemp meets all our acquisition criteria , fits perfectly with our total growth strategy , and brings a very talented team to Progress . " 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 ) August 31 , 2021 $ 147,417 $ 46,046 $ $ $ 31 % GAAP August 31 , 2020 $ $ 109,699 33,193 30 % 23,977 0.53 30,976 $ 0.70 $ 35,224 $ 31,112 ( 1 ) See Legal Notice Regarding Non - GAAP Financial Information Other fiscal third quarter 2021 metrics and recent results included : ( In millions , except percentages and per share amounts ) Revenue Diluted earnings per share Operating margin Three Months Ended Non - GAAP August 31 , 2020 34 % $ 152,597 $ 110,882 39 % $ 71,163 $ 47,117 100 bps 42 % 47 % 29 % $ 52,577 $ 35,605 32 % $ 1.18 $ 13 % $ 0.78 35,022 $ 30,101 % Change August 31 , 2021 GAAP $ 520 - $ 524 $ 1.56 - $ 1.58 21 % • Cash , cash equivalents and short - term investments were $ 383.7 million at the end of the quarter . • DSO was 54 days compared to 49 days in the fiscal third quarter of 2020 and 44 days in the fiscal second quarter of 2021 . • On September 21 , 2021 , our Board of Directors declared a quarterly dividend of $ 0.175 per share of common stock that will be paid on December 15 , 2021 to shareholders of record as of the close of business on December 1 , 2021 . • On September 23 , 2021 , we announced a definitive agreement to acquire Kemp Technologies , a leader in the Application Experience space , for $ 258 million in cash . Progress provides the following guidance for the fiscal year ending November 30 , 2021 and the fiscal fourth quarter ending November 30 , 2021 : Updated FY 2021 Guidance ( September 23 , 2021 ) % Change Anthony Folger , CFO , said : " Q3 results were outstanding across every metric and our confidence in our business is reflected in the increased outlook for 2021. In addition to our strong financial results and outlook , we continued to execute our total growth strategy while remaining disciplined with the acquisition of Kemp , a deal that positions us exceptionally well for 2022 and beyond . " 2021 Business Outlook Non - GAAP $ 548 - $ 552 $ 3.68 - $ 3.70 40 % 500 bps 48 % 51 % 38 % 51 % GAAP $ 503- $ 509 $ 1.51 - $ 1.55 21 % Prior FY 2021 Guidance ( June 24 , 2021 ) 16 % Non - GAAP $ 529 - $ 535 $ 3.46 - $ 3.50 39 %