Interpreting Progress Software (PRGS) International Revenue Trends

Zacks Equity Research

Tue, May 13, 2025, 7:16 AM 5 min read

Have you evaluated the performance of Progress Software's (PRGS) international operations during the quarter that concluded in February 2025? Considering the extensive worldwide presence of this business software maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Our review of PRGS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter stood at $238.02 million, increasing 28.9% year over year. Now, let's delve into PRGS' international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Trends in PRGS' Revenue from International Markets

Latin America generated $5.05 million in revenues for the company in the last quarter, constituting 2.12% of the total. This represented a surprise of -18.78% compared to the $6.22 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $5.68 million (2.64%), and in the year-ago quarter, it contributed $4.67 million (2.53%) to the total revenue.

During the quarter, Europe, Middle East and Africa contributed $66.94 million in revenue, making up 28.12% of the total revenue. When compared to the consensus estimate of $74.08 million, this meant a surprise of -9.63%. Looking back, Europe, Middle East and Africa contributed $67.63 million, or 31.46%, in the previous quarter, and $63.09 million, or 34.16%, in the same quarter of the previous year.

Of the total revenue, $11.37 million came from Asia Pacific during the last fiscal quarter, accounting for 4.78%. This represented a surprise of +12.73% as analysts had expected the region to contribute $10.09 million to the total revenue. In comparison, the region contributed $9.21 million, or 4.29%, and $9.65 million, or 5.22%, to total revenue in the previous and year-ago quarters, respectively.

Prospective Revenues in International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Progress Software will report a total revenue of $237.85 million, which reflects an increase of 35.9% from the same quarter in the previous year. The revenue contributions are expected to be 2.1% from Latin America ($5.05 million), 28.2% from Europe, Middle East and Africa ($66.97 million) and 4.8% from Asia Pacific ($11.38 million).

For the full year, the company is expected to generate $965 million in total revenue, up 28.1% from the previous year. Revenues from Latin America, Europe, Middle East and Africa and Asia Pacific are expected to constitute 2.1% ($20.47 million), 28.1% ($271.29 million) and 4.8% ($46.09 million) of the total, respectively.

Concluding Remarks

Relying on global markets for revenues presents both prospects and challenges for Progress Software. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At present, Progress Software holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Progress Software's Stock Price Movement in Recent Times

Over the past month, the stock has gained 8% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Computer and Technology sector, of which Progress Software is a part, has risen 11.9% over the same period. The company's shares have increased 8.3% over the past three months compared to the S&P 500's 3.1% decline. Over the same period, the sector has declined 6.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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