By Anvee Bhutani
Progress Software shares rose sharply Wednesday after the software company reported higher second-quarter profit and revenue, with artificial intelligence-driven products boosting sales.
Shares of the company were recently up about 16% at $39.11. The stock has gained more than 50% over the past three months.
On Tuesday after the market close, the software company said net income rose to $21.1 million, or 50 cents a share, from $17 million, or 39 cents a share, in the same quarter a year earlier. Adjusted earnings came in at $1.62 a share.
Second-quarter revenue rose 7% to $253.5 million, beating expectations for $242.7 million.
Chief Executive Yogesh Gupta said AI-powered offerings continued to drive momentum during the quarter.
For the fiscal year, Progress Software raised its revenue outlook to a range of $990 million to slightly more than $1 billion, compared with a prior view of $988 million to $1 billion. It also lifted its adjusted earnings guidance to $6.09 to $6.21 a share, from $5.91 to $6.03.