Progress Software PRGS reported third-quarter fiscal 2021 non-GAAP earnings of $1.18 per share that beat the Zacks Consensus Estimate by 42.2% and surged 51.3% year over year. Non-GAAP revenues of $152.6 million surpassed the consensus mark by 16.9% and soared 37.6% year over year, driven by solid uptake of the company’s core products, namely, DataDirect, OpenEdge, DevTools, Ipswitch and Chef.The top line also benefited from early closure of two contracts worth $10 million in the reported quarter, which were supposed to close in the fourth quarter.On a constant-currency basis, annualized recurring revenues (ARR) came in at $444 million, up 25% year over year. Net dollar retention rate surpassed 100% in fiscal third quarter. Progress Software Corporation Price, Consensus and EPS Surprise Progress Software Corporation price-consensus-eps-surprise-chart | Progress Software Corporation Quote Quarter DetailsSoftware license GAAP revenues were $51.9 million, up 88.7% year over year. Maintenance and service GAAP revenues were $95.5 million, up 16.2% year over year.GAAP sales and marketing expenses, as a percentage of revenues, contracted 10 basis points (bps) from the year-ago quarter’s level to 20.2%. GAAP product development expenses, as a percentage of revenues, contracted 150 bps from the year-ago quarter’s tally to 17.4%.GAAP general and administration expenses, as a percentage of revenues, declined 120 bps from the year-ago quarter’s level to 11.2%.Progress reported non-GAAP operating margin of 46.6%, which expanded 410 bps year over year, driven by strong top-line growth.Balance SheetAs of Aug 31, 2021, cash and cash equivalents (and short-term investments) were $383.7 million compared with $362.7 million as of May 31, 2021.Progress Software generated $35 million in adjusted free cash flow compared with $30.1 million reported in the year-ago quarter and $55.4 million in the previous quarter.Kemp AcquisitionProgress Software announced its plan to buy Kemp Technologies, a leader in the application experience space, for $258 million in cash. Kemp has more than 1,100 active customers, including Amazon AMZN, The Walt Disney DIS, Apple AAPL, Dell, Raytheon and others.Progress Software expects to complete the acquisition in the fourth quarter of fiscal 2021.GuidanceFor fourth-quarter fiscal 2021, Progress Software expects non-GAAP revenues between $134 million and $138 million. The Zacks Consensus Estimate for revenues is currently pegged at $140.5 million, indicating growth of 8.9% from the year-ago quarter’s reported figure.This Zacks Rank #3 (Hold) company expects non-GAAP earnings in the range of 73-75 cents per share. The consensus mark for the same is currently pegged at 88 cents per share, indicating a decline of 3.3% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.For 2021, non-GAAP revenues are now projected between $548 and $552 million compared with $529-$535 million guided previously. Non-GAAP operating margin is expected to be 40% compared with 39% projected earlier.Non-GAAP earnings are projected between $3.68 and $3.70 per share against $3.46 and $3.50 per share. The Zacks Consensus Estimate for fiscal 2021 revenues and earnings are currently pegged at $532.1 million and $3.48 per share, respectively. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Progress Software Corporation (PRGS): Free Stock Analysis Report To read this article on Zacks.com click here.