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Jefferies says inorganic growth contribution lifts Progress FY24 revenue guide

Jefferies analyst Brent Thill, who is restricted in terms of coverage of Progress Software, says the company “delivered a solid beat across top & bottom lines” in fiscal Q3, driven by broad growth across its product portfolio. Top-line guidance was raised on the back of expected revenue contribution from ShareFile, offset by some near-term headwinds from the deal to operating margins and free cash flow, notes the firm, which points out that the fiscal Q4 guidance embeds $18M-$20M of revenue contribution from ShareFile and the midpoint of Q4 guidance is just slightly shy of $18M ahead of Street estimates, implying that the Q4 revenue guidance excluding ShareFile was slightly below Street estimates.

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