BURLINGTON, Mass. - Progress Software Corporation (NASDAQ: PRGS ) reported fourth quarter earnings that beat analyst expectations, but shares fell sharply, by 5.5%, in after-hours trading as the company's guidance came in below Wall Street estimates.

The software company posted adjusted earnings per share of $1.33 for the quarter ended November 30, 2024, surpassing the analyst consensus of $1.21. Revenue grew 21% YoY to $215 million, also topping expectations of $211.7 million.

However, Progress Software's outlook for the upcoming fiscal year disappointed investors. The company forecast full-year 2025 adjusted EPS of $5.00-$5.12, well below the $5.62 analysts were projecting. First quarter EPS guidance of $1.02-$1.08 also fell short of the $1.44 consensus estimate.

The weak guidance overshadowed an otherwise solid quarter, sending shares down 5.5% in after-hours trading following the release.

"2024 was a strong year for Progress as we continue to execute on our long-term strategy to invest and innovate, acquire and integrate, and drive customer success to deliver Total (EPA: TTEF ) Growth," said CEO Yogesh Gupta.

Progress Software reported annualized recurring revenue of $842 million in Q4, up 46% YoY on a constant currency basis. The company completed its acquisition of ShareFile from Cloud Software (ETR: SOWGn ) Group during the quarter.

For fiscal 2024, Progress Software generated cash flow from operations of $211.5 million, up 22% from $173.9 million the prior year.

CFO Anthony Folger noted that net revenue retention closed above 100% for the year. However, the company's conservative outlook for 2025 appears to have overshadowed the positive momentum from 2024.

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