Progress Software Corp (PRGS) 2022 Q3 法說會逐字稿

Welcome to the Progress Software Corporation Q3 2022 Earnings Call. My name is Darryl, and I will be your operator for today's call. (Operator Instructions) I will now turn the call over to Mike Micciche, VP of Investor Relations. Mike, you may begin.

歡迎來到 Progress Software Corporation 2022 年第三季度財報電話會議。我叫 Darryl，我將擔任今天電話的接線員。 （操作員說明）我現在將電話轉給投資者關係副總裁 Mike Micciche。邁克，你可以開始了。

Okay. Thank you, Darryl. Good afternoon, everybody, and thanks for joining us for Progress Software's third quarter 2022 financial results conference call. With us today is Yogesh Gupta, the President and Chief Executive Officer; and Anthony Folger, our Chief Financial Officer.

好的。謝謝你，達里爾。大家下午好，感謝您參加 Progress Software 的 2022 年第三季度財務業績電話會議。今天和我們在一起的是總裁兼首席執行官 Yogesh Gupta；和我們的首席財務官 Anthony Folger。

Before we get started, I'd like to remind you that during this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, the impact of the COVID-19 pandemic on our business and other information that might be considered forward-looking. This forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties.

在我們開始之前，我想提醒您，在這次電話會議中，我們將討論我們對未來財務和經營業績的展望、公司戰略、產品計劃、成本計劃、COVID-19 大流行對我們業務的影響以及其他可能被視為前瞻性的信息。該前瞻性信息僅代表 Progress Software 截至今日的展望和指南，並受風險和不確定因素的影響。

For a description of the risk factors that may affect our results, please refer to our recent SEC filings and in particular, the section captioned Risk Factors in our most recent Form 10-K. Progress Software assumes no obligation to update the forward-looking statements included in this call, whether as a result of new developments or otherwise.

有關可能影響我們結果的風險因素的描述，請參閱我們最近提交給美國證券交易委員會的文件，尤其是我們最近的 10-K 表格中標題為“風險因素”的部分。 Progress Software 不承擔更新本次電話會議中包含的前瞻性陳述的義務，無論是由於新開發還是其他原因。

Additionally, on this call, the financial figures we discuss are non-GAAP measures unless otherwise indicated. You can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP numbers in our financial results press release, which was issued after the market close today and is also available on our website.

此外，在本次電話會議上，除非另有說明，否則我們討論的財務數據是非 GAAP 指標。您可以在我們的財務業績新聞稿中找到這些非 GAAP 財務指標與最直接可比的 GAAP 數字的對賬，該新聞稿是在今天收市後發布的，也可以在我們的網站上找到。

This document contains the full details of our financial results for the fiscal third quarter of 2022, and I recommend you reference it for specific details.

本文件包含我們 2022 財年第三季度財務業績的全部細節，我建議您參考它以了解具體細節。

We also have prepared a presentation that contains supplemental data for our third quarter 2022 results, providing highlights and additional financial metrics. Both the earnings release and this presentation are available in the Investor Relations section of our website at investors.progress.com. Today's conference call will be recorded in its entirety and will be presented -- and will be available via replay on the Investor Relations section of our website.

我們還準備了一份演示文稿，其中包含我們 2022 年第三季度業績的補充數據，提供亮點和其他財務指標。收益發布和本演示文稿均可在我們網站 investors.progress.com 的“投資者關係”部分獲取。今天的電話會議將被完整記錄並呈現——並將通過我們網站投資者關係部分的重播提供。

So with that, I'll turn it over to Yogesh and we'll get started.

因此，我將把它交給 Yogesh，我們將開始。

Thank you, Mike. Good afternoon, everyone, and thank you for joining us as we discuss the results of Progress' fiscal third quarter '22. We're excited to report that we again exceeded the high end of our revenue and EPS guidance and recorded another strong performance across virtually all products and geographies.

謝謝你，邁克。大家下午好，感謝您加入我們討論 Progress'22 財年第三季度的結果。我們很高興地報告，我們再次超出了我們的收入和 EPS 指導的高端，並且在幾乎所有產品和地區都取得了又一次強勁的表現。

We remain confident about our revenues, operating margins and free cash flow for the rest of the year. Despite strong FX headwinds, we are maintaining our revenue guidance and raising our EPS guidance for the full fiscal year '22. Our results continue to be driven by our Total Growth Strategy, which combines accretive M&A with a highly profitable and predictable business with strong recurring revenues and very high retention rates.

我們對今年剩餘時間的收入、營業利潤率和自由現金流仍然充滿信心。儘管外匯逆風強勁，我們仍維持我們的收入指引並提高了整個 22 財年的每股收益指引。我們的業績繼續受到我們的總體增長戰略的推動，該戰略將增值併購與高利潤和可預測的業務相結合，具有強勁的經常性收入和非常高的保留率。

Our disciplined execution of this strategy over the past several years continues to deliver consistent performance and meaningful returns to our shareholders. A very important aspect of our business is its predictability and stability. The mission-critical nature of our products results in a steady demand from our customers. This steady demand forms the foundation of our business in good times and in challenging times, leading to a high-visibility business model and providing a degree of protection from uncertainties that may impact other types of software businesses.

我們在過去幾年嚴格執行這一戰略，繼續為我們的股東帶來穩定的業績和有意義的回報。我們業務的一個非常重要的方面是它的可預測性和穩定性。我們產品的關鍵任務性質導致我們客戶的穩定需求。這種穩定的需求構成了我們在繁榮時期和充滿挑戰的時期的業務基礎，從而形成了一種高知名度的商業模式，並在一定程度上防止了可能影響其他類型軟件業務的不確定性。

Our third quarter results speak to this length. Annual recurring revenues continued to grow to $495 million, up approximately 13% year-over-year on an as-reported basis and 4% year-over-year on a pro forma basis. Net dollar retention rate was again over 100%, coming in at 101.4%. Revenue of $153.1 million was above the high end of prior guidance as was our EPS at $1.

我們第三季度的業績說明了這一點。年度經常性收入繼續增長至 4.95 億美元，在報告基礎上同比增長約 13%，在備考基礎上同比增長 4%。淨美元保留率再次超過 100%，達到 101.4%。 1.531 億美元的收入高於先前指導的上限，我們的每股收益為 1 美元。

Free cash flow was also impressive for the quarter and our balance sheet continues to strengthen. 2 things to note, recall that in our third quarter last year, several very large deals closed at the end of the quarter, giving us a huge beat and a tough compare.

本季度的自由現金流也令人印象深刻，我們的資產負債表繼續加強。需要注意的兩件事，回想一下去年第三季度，幾筆非常大的交易在本季度末完成，給我們帶來了巨大的打擊和艱難的比較。

And of course, FX has had a very strong negative impact of over $5 million, in this quarter alone. So in that light, our third quarter results are even more impressive and show that Progress is managing well in a challenging macro setting. Demand for our products continues to be strong as our renewal rates. Our execution to meet this demand remains super with noteworthy strength in this quarter in Chef, OpenEdge, DataDirect and Sitefinity. Anthony will provide more details on our numbers, including details on the impact of FX.

當然，僅在本季度，外匯就產生了超過 500 萬美元的強烈負面影響。因此，有鑑於此，我們第三季度的業績更加令人印象深刻，表明 Progress 在充滿挑戰的宏觀環境中表現良好。隨著我們的續訂率，對我們產品的需求繼續強勁。我們滿足這一需求的執行力仍然非常出色，本季度在 Chef、OpenEdge、DataDirect 和 Sitefinity 方面表現出色。安東尼將提供有關我們數字的更多詳細信息，包括有關外匯影響的詳細信息。

But before that, let me share some commentary about our business and the macro environment. As we have discussed before, the 3 pillars of our Total Growth Strategy are: number one, strengthen our profitable core businesses by investing in product innovation and customer success to maximize retention and drive organic ARR growth. Number two, focus on operational excellence to successfully execute and integrate acquisitions run efficiently and deliver world-class margins and cash flow. And number three; deploy capital to produce the highest shareholder returns, preferably through accretive acquisitions that fit our disciplined criteria.

但在此之前，讓我分享一些關於我們的業務和宏觀環境的評論。正如我們之前所討論的，我們總體增長戰略的三大支柱是：第一，通過投資於產品創新和客戶成功來加強我們盈利的核心業務，以最大限度地提高保留率並推動有機 ARR 增長。第二，專注於卓越運營以成功執行和整合高效運行的收購併提供世界級的利潤和現金流。第三個；部署資本以產生最高的股東回報，最好是通過符合我們嚴格標準的增值收購。

We also returned value to shareholders through share repurchases. We buy back our stock, both as a calculated element of our capital allocation policy as well as opportunistically if Progress shares offered meaningfully better returns. In the third quarter, we bought back shares worth $24 million. Expanding a bit on our acquisition strategy, we have been steadfast in our commitment to only doing deals that meet our strict criteria. That means identifying strong enterprise software businesses with a durable, recurring revenue model, high retention and renewal rates and once we are confident that we can rapidly integrate within our operating model.

我們還通過股票回購向股東回報價值。我們回購我們的股票，這既是我們資本配置政策的計算要素，也是機會主義，如果 Progress 股票提供有意義的更好回報。第三季度，我們回購了價值 2400 萬美元的股票。擴大我們的收購戰略，我們一直堅定地承諾只進行符合我們嚴格標準的交易。這意味著確定具有持久、經常性收入模式、高保留率和續訂率的強大企業軟件業務，一旦我們有信心我們可以快速整合到我們的運營模式中。

It also means applying them for the right price, such that the expected return on invested capital exceeds our cost of capital. As a result of our stringent standards, we have passed a number of deals that did not meet recurring revenue or retention rate criteria.

這也意味著以合適的價格應用它們，從而使投資資本的預期回報超過我們的資本成本。由於我們嚴格的標準，我們已經通過了一些不符合經常性收入或保留率標準的交易。

Some sellers have tried to reengage at significantly lower asking price. But we'll remain disciplined because any business we buy must deliver strong returns that are sustainable over the long haul. And while deteriorating macro factors are working in our favor with respect to valuation multiples, private company valuations are still not where we believe they should be.

一些賣家試圖以低得多的要價重新參與。但我們將保持紀律，因為我們收購的任何企業都必須提供長期可持續的強勁回報。雖然不斷惡化的宏觀因素在估值倍數方面對我們有利，但私營公司的估值仍未達到我們認為應有的水平。

While lower than a year ago, their valuation expectations remain out of line with public markets. So we will be patient and not overpay for the assets we acquire. We continue to be an extremely active contender in the M&A market and seek to be a buyer of choice for companies looking to sell.

雖然低於一年前，但他們的估值預期仍與公開市場不符。因此，我們將保持耐心，不會為收購的資產多付錢。我們繼續成為併購市場上極其活躍的競爭者，並尋求成為尋求出售的公司的首選買家。

In order to enhance our ability to efficiently integrate acquired businesses and better serve our customers, we're working to realign our go-to-market product and operational teams. This will improve collaboration among the teams that develop, sell and support our products. The work we're doing to realign some of our teams will also centralize some shared services, lead to greater systems uniformity and increased operating efficiency. All of this also supports an important element of our total growth strategy, which is operational excellence.

為了增強我們有效整合收購業務並更好地為客戶服務的能力，我們正在努力重組我們的上市產品和運營團隊。這將改善開發、銷售和支持我們產品的團隊之間的協作。我們正在為重新調整我們的一些團隊所做的工作還將集中一些共享服務，從而提高系統一致性和運營效率。所有這些也支持我們總體增長戰略的一個重要元素，即卓越運營。

Switching to the topic of macroeconomic conditions and inflation. The largest expense drivers in our business are employee-related expenses. And we've worked hard to ensure that we can pay our employees competitively; while at the same time, managing costs across our business in order to protect our margins. We've done this by focusing on employee engagement. Elevated employee turnover can increase expenses in the business significantly because hiring and training new employees is much more expensive than retaining the great talent we have.

切換到宏觀經濟狀況和通貨膨脹的話題。我們業務中最大的支出驅動因素是與員工相關的支出。我們一直在努力確保我們能夠為員工支付具有競爭力的薪酬；同時，管理我們整個業務的成本以保護我們的利潤。我們通過關注員工敬業度來做到這一點。員工流失率升高會顯著增加企業開支，因為僱用和培訓新員工比留住我們擁有的優秀人才要昂貴得多。

We continue to work hard to make Progress the kind of place where employees find the work fulfilling, the environment inclusive and authentic. Our employee engagement scores continue to be in the top quartile in the tech industry. And we're proud that our employee turnover remains significantly below the industry average.

我們繼續努力使 Progress 成為員工感到工作充實、環境包容和真實的地方。我們的員工敬業度得分繼續在科技行業中名列前茅。我們感到自豪的是，我們的員工流失率仍遠低於行業平均水平。

I want to thank our employees for their ongoing commitment to the success of the company and for making progress such a great place to work. On top of all this, we continue to diligently manage other costs to ensure that we can sustain our margins during this unprecedented inflationary period.

我要感謝我們的員工對公司成功的持續承諾，並感謝他們在如此理想的工作場所取得進步。除此之外，我們繼續努力管理其他成本，以確保我們能夠在這個前所未有的通貨膨脹時期維持我們的利潤率。

For example, earlier this year, we sold our headquarters building and reduced our fixed costs significantly. We also continue to keep a close eye on maintaining some of the benefits of pandemic era reductions in travel and marketing expenses. Our focus on employee engagement and our efforts to continually streamline operations will help us retain our talent, while at the same time, position us well as we move forward towards 2023.

例如，今年早些時候，我們出售了總部大樓並大幅降低了固定成本。我們還繼續密切關注保持大流行時代減少差旅和營銷費用的一些好處。我們對員工敬業度的關注以及我們不斷精簡運營的努力將幫助我們留住人才，同時在我們邁向 2023 年的過程中為我們做好準備。

Let me wrap up with a few highlights from our recent global customer event. Just a couple of weeks ago, we hosted Project 360 in Boston, our largest event in the last 3 years. CIOs and other executives from our customers and partners as well as developers, IT ops and Sec-ops practitioners from around the globe, joined Progress team members for 2 days of strategy discussions, training and education, product demonstrations and collaboration.

讓我總結一下我們最近的全球客戶活動中的一些亮點。就在幾週前，我們在波士頓舉辦了 Project 360，這是我們過去 3 年來最大的活動。我們的客戶和合作夥伴的 CIO 和其他高管以及來自全球的開發人員、IT 運營和 Sec-op 從業者與 Progress 團隊成員一起進行了為期 2 天的戰略討論、培訓和教育、產品演示和協作。

For me, personally, it was wonderful to connect face-to-face with technologists and business people who use our products to make a positive impact in the world. Most importantly, it was a reaffirmation that our customers love our products and are, as enthusiastic as ever about working with us.

就我個人而言，與使用我們的產品對世界產生積極影響的技術專家和商務人士面對面交流真是太棒了。最重要的是，這重申了我們的客戶喜歡我們的產品，並且一如既往地熱衷於與我們合作。

So to wrap up, Progress is having an excellent year so far. I'm pleased with these outstanding results for the third quarter. And I'm confident we will finish FY '22 on a strong note as our guidance reflects.

總而言之，到目前為止，Progress 的表現非常出色。我對第三季度的這些出色業績感到滿意。而且我相信，正如我們的指導所反映的那樣，我們將以強有力的方式完成 22 財年。

And with that, I'll now turn it over to Anthony.

有了這個，我現在把它交給安東尼。

Thanks, Yogesh. Good afternoon, everyone, and thanks for joining our call. As Yogesh mentioned, the third quarter was another exceptionally strong one for Progress. Even more impressive is the fact that these results were delivered in the face of significant foreign exchange headwinds and general economic uncertainty, further demonstrating the incredible strength and durability of our business.

謝謝，約格甚。大家下午好，感謝您加入我們的電話會議。正如 Yogesh 所提到的，第三季度對於 Progress 來說是另一個異常強勁的季度。更令人印象深刻的是，這些結果是在面臨重大外匯逆風和普遍經濟不確定性的情況下取得的，進一步證明了我們業務令人難以置信的實力和持久性。

Jumping right into the financials, I'd like to start with ARR, which we believe provides the best view into our underlying performance. As a reminder, our calculation of ARR is presented on a pro forma basis to include the results of acquired businesses in all periods presented and in constant currency, with all periods presented at our current year budgeted exchange rates.

直接進入財務領域，我想從 ARR 開始，我們認為它可以最好地了解我們的基本業績。提醒一下，我們對 ARR 的計算是在備考基礎上進行的，以包括所收購業務在所有期間內以固定貨幣呈現的結果，所有期間均以我們當年的預算匯率呈現。

ARR at the end of Q3 was $495 million, representing approximately 4% organic growth on a year-over-year constant currency basis. The growth in ARR was driven by virtually all our products and was again bolstered by net retention rates, which in Q3 reached a record high, exceeding 101%.

第三季度末的 ARR 為 4.95 億美元，按固定匯率計算同比有機增長約 4%。 ARR 的增長受到我們幾乎所有產品的推動，並再次受到淨保留率的推動，淨保留率在第三季度創下歷史新高，超過 101%。

In the past, we've talked about the investments we've made in our products, which are aimed at improving the customer experience and our net retention rates in Q3 illustrate the continuing benefit of those investments.

過去，我們談到了我們對產品的投資，這些投資旨在改善客戶體驗，我們在第三季度的淨保留率說明了這些投資的持續收益。

Revenue for the quarter was $153.1 million, which is approximately $3 million above the high end of the Q3 guidance range we provided in June. Relative to our guidance, we saw better-than-expected results from our DataDirect, OpenEdge, Sitefinity and Chef Product lines. Moreover, movements in foreign exchange rates during the third quarter alone resulted in a revenue headwind of approximately $1.5 million.

本季度收入為 1.531 億美元，比我們在 6 月份提供的第三季度指導範圍的上限高出約 300 萬美元。相對於我們的指導，我們的 DataDirect、OpenEdge、Sitefinity 和 Chef 產品線的結果好於預期。此外，僅第三季度的外匯匯率變動就造成了約 150 萬美元的收入逆風。

Without which, we would have landed $4.5 million above the high end of our guidance range. On a year-over-year basis, revenue increased slightly. However, there are multiple factors that make the year-over-year comparison difficult, including the timing of revenue recognition and contract duration, which we covered in last year's Q3 earnings call, movements in foreign exchange rates and the addition of Kemp to our 2022 results.

如果沒有它，我們將比指導範圍的高端高出 450 萬美元。與去年同期相比，收入略有增長。然而，有多種因素導致難以進行同比比較，包括我們在去年第三季度財報電話會議中提到的收入確認時間和合同期限、匯率變動以及 Kemp 加入我們的 2022 年結果。

When we consider all these factors, our year-over-year revenue growth in Q3 is reasonably consistent with the growth in ARR mentioned previously. We've provided additional details on the Q3 year-over-year revenue comparison in the slide presentation accompanying our press release. I'd encourage you to look at Slide #11 in that presentation for a clear illustration of this point.

當我們考慮所有這些因素時，我們在第三季度的同比收入增長與前面提到的 ARR 的增長相當一致。我們在新聞稿隨附的幻燈片演示中提供了有關第三季度收入同比比較的更多詳細信息。我鼓勵您查看該演示文稿中的幻燈片 #11，以清楚地說明這一點。

Turning now to expenses. Our total costs and operating expenses were $93 million for the quarter, an increase of $11.6 million compared to Q3 of 2021. The year-over-year increase is the result of 2 primary factors. First is the addition of Kemp to our business, which makes up the vast majority of the year-over-year increase; and second, our increased wages and travel costs.

現在轉向費用。我們本季度的總成本和運營費用為 9300 萬美元，比 2021 年第三季度增加了 1160 萬美元。同比增長是兩個主要因素的結果。首先是 Kemp 加入我們的業務，占同比增長的絕大部分；其次，我們增加了工資和差旅費。

Like most other companies, we are experiencing wage inflation. However, cost management in other parts of our business is helping to offset those increases. Also, we're seeing travel return to a more normalized level in 2022, not quite where it was pre-pandemic, but certainly elevated from 2020 and 2021.

與大多數其他公司一樣，我們正在經歷工資上漲。然而，我們業務其他部分的成本管理正在幫助抵消這些增長。此外，我們看到旅行在 2022 年恢復到更正常的水平，雖然不是大流行前的水平，但肯定比 2020 年和 2021 年有所提高。

This is something we anticipated coming into the year and just like wage inflation, solid cost management in other parts of our business is helping to offset these increases.

這是我們預計今年會出現的情況，就像工資上漲一樣，我們業務其他部分的可靠成本管理正在幫助抵消這些增長。

Operating income was $60.1 million for the quarter and operating margin of 39% compared to 47% in the year ago quarter. As previously mentioned, our results in the third quarter of 2021 were significantly impacted by the timing of revenue recognition and as such, year-over-year comparisons are less meaningful.

本季度營業收入為 6010 萬美元，營業利潤率為 39%，而去年同期為 47%。如前所述，我們 2021 年第三季度的業績受到收入確認時間的重大影響，因此，同比比較意義不大。

Turning to the bottom line. Our earnings per share of $1 for the quarter were $0.02 above the high end of our guidance range.

轉向底線。我們本季度的每股收益為 1 美元，比我們指導範圍的上限高出 0.02 美元。

Moving on to a few balance sheet and cash flow metrics. We ended the quarter with cash and short-term investments of $225 million and approximately $300 million in untapped capacity under our revolving line of credit for a total liquidity of $525 million.

轉到一些資產負債表和現金流量指標。本季度末，我們的現金和短期投資為 2.25 億美元，循環信貸額度下的未開發產能約為 3 億美元，總流動資金為 5.25 億美元。

DSO for the quarter was 48 days, an improvement compared to 54 days in the year ago quarter. Deferred revenue was $251 million at the end of the third quarter, down slightly from the second quarter, reflecting normal seasonality in our business, coupled with the impact of foreign exchange rates on deferred revenue.

本季度的 DSO 為 48 天，與去年同期的 54 天相比有所改善。第三季度末遞延收入為 2.51 億美元，比第二季度略有下降，反映了我們業務的正常季節性，以及外匯匯率對遞延收入的影響。

Adjusted free cash flow was $39 million for the quarter, up $4 million or 11% from the year ago quarter. During Q3, we repurchased approximately $24 million of Progress stock. And at the end of Q3, we have approximately $80 million remaining under our current share repurchase authorization.

本季度調整後的自由現金流為 3900 萬美元，比去年同期增加 400 萬美元或 11%。在第三季度，我們回購了大約 2400 萬美元的 Progress 股票。在第三季度末，我們目前的股票回購授權還剩下大約 8000 萬美元。

In the fourth quarter, we will continue to evaluate the market price of our shares, along with other factors in determining whether to make additional share repurchases. In the first 3 quarters of 2022, we have repurchased a total of $75.5 million of Progress stock.

在第四季度，我們將繼續評估我們股票的市場價格，以及決定是否進行額外股票回購的其他因素。在 2022 年前三個季度，我們回購了總計 7550 萬美元的 Progress 股票。

Okay. Now I'll turn to our outlook. At different times in my remarks, I've mentioned the impact of changes in exchange rates on our reported results and I'd like to provide a little more insight. The primary point I'd like to highlight is the mix of currencies in which we transact is different than the disclosed geographic mix of our business.

好的。現在我將談談我們的前景。在我發言的不同時間，我提到了匯率變化對我們報告結果的影響，我想提供更多的見解。我想強調的主要一點是，我們進行交易的貨幣組合與我們披露的業務地理組合不同。

So when it comes to transacting in different currencies, it's worth noting that more than 70% of our revenue and approximately 2/3 of our expenses are denominated in U.S. dollars. This mix of currencies results in a hedge on our operating margins. Meaning, our operating margin is generally much less exposed to movements in foreign exchange rates than our revenues and this has been the case during 2022.

因此，在使用不同貨幣進行交易時，值得注意的是，我們 70% 以上的收入和大約 2/3 的支出都是以美元計價的。這種貨幣組合導致對我們的營業利潤率進行對沖。這意味著，我們的營業利潤率通常比我們的收入更容易受到匯率變動的影響，而 2022 年就是這種情況。

Now shifting back to our outlook and starting with the full year 2022. We're maintaining our revenue guidance to be between $609 million and $617 million. This outlook includes an increase to our revenue guidance of approximately $4 million, which is offset by a $4 million foreign exchange headwind. To help illustrate this point, we've included a slide in the presentation that accompanies our press release. And I'd encourage you to look at Slide #14 for a clear illustration of this point.

現在回到我們的展望，從 2022 年全年開始。我們將收入指引維持在 6.09 億美元至 6.17 億美元之間。這一前景包括將我們的收入指引增加約 400 萬美元，這被 400 萬美元的外匯逆風所抵消。為了幫助說明這一點，我們在新聞稿隨附的演示文稿中加入了一張幻燈片。我鼓勵您查看幻燈片 #14 以清楚地說明這一點。

We're maintaining our outlook for operating margin for the year at approximately 39% to 40%. We're maintaining our outlook for adjusted free cash flow to be between $185 million and $190 million. And we're increasing our outlook for earnings per share to be between $4.08 and $4.12.

我們將今年的營業利潤率前景維持在 39% 至 40% 左右。我們將調整後的自由現金流量前景維持在 1.85 億美元至 1.9 億美元之間。我們將每股收益預期上調至 4.08 美元至 4.12 美元之間。

Our guidance for full year EPS assumes a tax rate of 20% to 21% and approximately 44 million shares outstanding. For the fourth quarter of 2022, we expect revenue between $157.6 million and $165.6 million and earnings per share between $1.06 and $1.10.

我們對全年每股收益的指導假設稅率為 20% 至 21%，流通股約為 4400 萬股。對於 2022 年第四季度，我們預計收入在 1.576 億美元至 1.656 億美元之間，每股收益在 1.06 美元至 1.10 美元之間。

In closing, we're thrilled with our financial performance and our outlook for the balance of 2022. And we believe the clear strength in our business and our balance sheet positions us very well to continue to execute on our total growth strategy.

最後，我們對我們的財務業績和我們對 2022 年剩餘時間的展望感到興奮。我們相信我們業務和資產負債表的明顯實力使我們能夠很好地繼續執行我們的總體增長戰略。

With that, I'd like to open the call for Q&A.

有了這個，我想打開問答環節。

(Operator Instructions) And our first question comes from Fatima Boolani from Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 Fatima Boolani。

Yogesh, I'll start with you. Last quarter, you did allude to or offered an inclination towards increasing prices across your portfolio.

Yogesh，我將從你開始。上個季度，您確實暗示或表示傾向於提高整個投資組合的價格。

So I just wanted to get a quick update on that and in terms of how you're thinking about the parameters of these price increases and particularly in the context of the inflationary environment where you're absolutely managing costs. But just curious on sort of the top line inputs from just outright pricing increases across your suite of solutions? And then I have a follow-up for Anthony, if I could.

所以我只是想快速了解一下您如何考慮這些價格上漲的參數，特別是在您絕對管理成本的通貨膨脹環境中。但只是對您的解決方案套件中直接定價增加的頂線投入感到好奇嗎？然後，如果可以的話，我會跟進安東尼。

Fatima, thank you. And yes, we did talk about the -- what we could do with respect to price increases. And let me share with you sort of the 3 parts to that answer. Part one is that we have with many of our software vendors who are our partners.

法蒂瑪，謝謝你。是的，我們確實討論了——我們在價格上漲方面可以做些什麼。讓我與您分享該答案的 3 個部分。第一部分是我們與許多軟件供應商合作，他們是我們的合作夥伴。

They embed our software in their software. We have long-term relationships and a revenue share responsibility -- sorry, revenue share relationship where effectively, we don't really change the prices or can't really change prices. It's a percentage of what revenue they get and we collect the percentage of that.

他們將我們的軟件嵌入到他們的軟件中。我們有長期的關係和收入分享責任——抱歉，在有效的收入分享關係中，我們並沒有真正改變價格，也不能真正改變價格。這是他們獲得的收入的百分比，我們收集該百分比。

So there is a segment there that we can't touch at all. There's a second segment where of our customers who, of course, have multiyear contracts. And so, when those contracts come up for renewals, we basically continue to look at opportunities and we are increasing prices.

所以那裡有一個部分我們根本無法觸及。還有第二個部分，我們的客戶當然有多年合同。因此，當這些合同需要續籤時，我們基本上會繼續尋找機會並提高價格。

But again, I would like to make folks aware that the -- we have a larger number of multiyear contract customers than 1 year contract customers. So Fatima, we have made changes to some of our prices, some of our product prices.

但是，我想讓人們再次意識到——我們的多年合同客戶數量多於 1 年合同客戶數量。所以法蒂瑪，我們改變了一些價格，一些產品價格。

We do have a third category of products, which are in what I would call extremely price competitive markets. And there, we are careful about increasing prices. We sometimes reduce our discounts and so on. So we're trying to use the lever on price the best we can.

我們確實有第三類產品，我稱之為價格競爭極其激烈的市場。在那裡，我們對提高價格持謹慎態度。我們有時會降低折扣等。因此，我們正在盡我們所能地利用價格槓桿。

But I do want to point out that it isn't as though we can take our entire business and go, "hey, let's increase price x percent across the board and see that x percent show up in the next 12-month cycle." Is that -- sort of did that explain it a bit?

但我確實想指出，這並不是說我們可以把我們的整個業務都拿走，“嘿，讓我們全面提高價格 x%，然後看到 x% 出現在下一個 12 個月的周期中。”那是——有點解釋了嗎？

That's very helpful. So we should more or less expect a gradual visible impact versus anything pronounced or anything seasonally pronounced. And Anthony -- excellent, thank you. Anthony, just for you, just on the net retention rates, a record high, as you mentioned.

這很有幫助。因此，我們應該或多或少地期待一個逐漸可見的影響，而不是任何明顯的或季節性明顯的影響。安東尼——非常好，謝謝。安東尼，就你而言，正如你提到的那樣，淨保留率創歷史新高。

Can you remind us the key vectors of expansion on this metric? And maybe sketch out the priority sequence of factors that will help drive an even sustain net retention rates in excess of 101%. And that's it for me.

您能否提醒我們擴展該指標的關鍵向量？也許勾勒出有助於推動甚至維持超過 101% 的淨保留率的因素的優先順序。對我來說就是這樣。

Sure. Sure. Thanks, Fatima. Yes, the big driver on net retention really is upsell. We upsell within existing relationships and we continue to grow relationships with customers, where I think we tend to be very, very close to our customers.

當然。當然。謝謝，法蒂瑪。是的，淨留存率的主要驅動因素確實是追加銷售。我們在現有關係中進行追加銷售，並繼續發展與客戶的關係，我認為我們往往與客戶非常、非常接近。

We've got a very strong account sort of account-based management model in place, a good customer success organization in place. And we invest in the technology, so that we understand where our customers are going. And so most of what we're doing to drive improvement in net retention rate has to do with continuing to grow with customer relationships and continuing to invest in the product so that we're not giving customers an excuse to churn out.

我們有一個非常強大的基於帳戶的管理模型，一個良好的客戶成功組織。我們投資於技術，以便我們了解客戶的去向。因此，我們為提高淨保留率所做的大部分工作都與繼續發展客戶關係和繼續投資產品有關，這樣我們就不會給客戶一個流失的藉口。

So really, I think we're increasing the gross retention rate slightly. And then we're continuing to grow relationships with our existing customers. And really that, for us, there may come a time in the future where we're able to do more with cross-selling products. We don't do a lot of that right now.

所以真的，我認為我們正在略微提高總保留率。然後我們將繼續發展與現有客戶的關係。事實上，對我們來說，未來可能會有一段時間我們能夠通過交叉銷售產品做更多事情。我們現在做的不多。

And so the focus really is on really a level of intimacy with our customers that helps us know where they're going. We make the right investments in our products and continue to grow those relationships.

因此，重點實際上是與客戶的親密程度，這有助於我們了解他們的去向。我們對我們的產品進行了正確的投資，並繼續發展這些關係。

And so I think that's what our organizations are designed around and we'll continue to focus there going forward.

因此，我認為這就是我們組織的設計宗旨，我們將繼續專注於此。

And our next question comes from John DiFucci from Guggenheim.

我們的下一個問題來自古根海姆的 John DiFucci。

So I think this is for Yogesh or maybe, Anthony, you might want to chime in, too. You've beat the high end of the revenue guidance by easily this quarter and you maintained guidance.

所以我認為這是給 Yogesh 的，或者 Anthony，你可能也想插話。本季度您輕鬆超過了收入指導的高端，並且保持了指導。

And I get the $4 million foreign exchange impact since you gave guidance; but you actually beat our numbers by more than that. I guess, what does it that say about your views on the macro backdrop?

自從您提供指導以來，我得到了 400 萬美元的外匯影響；但你實際上比我們的數字還要多。我想，這說明您對宏觀背景的看法是什麼？

I just -- get your sense on that. And I know your business is really steady. But you -- I'm sure you're still close to your customers and you talked to them about what they're doing.

我只是 - 明白你的意思。而且我知道你的生意真的很穩定。但是你 - 我敢肯定你仍然與你的客戶保持密切聯繫並且你與他們談論了他們正在做的事情。

So John, we feel really confident about the way our business is shaping up. I think Anthony mentioned, I think the Slide 14 or something that sort of shows how every quarter the FX has continued to negatively impact what we gave the guide.

所以約翰，我們對我們的業務發展方式充滿信心。我想 Anthony 提到過，我認為幻燈片 14 或類似的東西顯示了 FX 如何在每個季度繼續對我們提供的指南產生負面影響。

And so even though the expectation at midpoint looks at the same point, the numbers have gone up in constant currency quite a bit. So we are seeing a healthy demand. We are not seeing demand fall off, which I mean, if you think about it, right, over the last 3 quarters, every single quarter, especially in constant currency, we have raised our top line guidance every single time.

因此，即使中點的預期看起來是同一點，但以固定匯率計算，數字已經上升了很多。因此，我們看到了健康的需求。我們沒有看到需求下降，我的意思是，如果你仔細想想，在過去的 3 個季度中，每個季度，尤其是按固定匯率計算，我們每次都提高了我們的頂線指導。

And so to me, that's just an indication of that. And speaking to our customers, we have this great customer conference. It was -- people are really engaged. The products that they're using from us are solving real business problems for them that are mission-critical.

所以對我來說，這只是一個跡象。與我們的客戶交談，我們舉行了這次很棒的客戶會議。這是——人們真的很投入。他們使用我們的產品正在為他們解決關鍵任務的實際業務問題。

And so what that means is they stick to us and stick with us and continue to expand as their needs expand. So I am really positive about and bullish about where our business is going. Obviously, can't do much about FX, but that's the way the world goes.

所以這意味著他們堅持我們並堅持我們並隨著他們的需求擴大而繼續擴大。所以我對我們的業務發展方向非常樂觀。顯然，不能對 FX 做太多，但世界就是這樣。

Anthony, do you want to add anything?

安東尼，你想補充什麼嗎？

Yes. Yes, I would just say, John, we -- and as has been the case with Progress for a number of years, we probably don't see the same peaks and values as other software companies.

是的。是的，我只想說，約翰，我們——就像 Progress 多年來的情況一樣，我們可能看不到與其他軟件公司相同的高峰和價值。

And so when money is free and everything is frothy, maybe Progress doesn't see the same upside or same growth in terms of the customer base that we have. But the flip side is that when times are tough, because of the mission-critical nature of the products that we have, the values tend to be a lot more muted for us, too.

因此，當錢是免費的，一切都充滿泡沫時，Progress 可能不會像我們擁有的客戶群那樣看到同樣的優勢或增長。但不利的一面是，在艱難時期，由於我們所擁有產品的關鍵任務性質，我們的價值觀往往也變得更加低調。

And I think that's what we're seeing right now. We're not -- certainly not blind to what's going on out there in the macro and we're staying close with our customers. But I think the mission-critical nature of the products that we have and the close relationships with our customers have given us the ability to just continue to grow with them.

我認為這就是我們現在所看到的。我們不是——當然不會對宏觀上發生的事情視而不見，我們與客戶保持密切聯繫。但我認為我們擁有的產品的關鍵任務性質以及與客戶的密切關係使我們有能力繼續與他們一起成長。

And so we'll stay on top of it. Obviously, everyone is going to continue to monitor the macro pretty closely and Progress is certainly going to continue to do that as well. But I think that's where, where things have been for '22.

因此，我們將保持領先地位。顯然，每個人都將繼續密切關注宏觀經濟，Progress 肯定也會繼續這樣做。但我認為這就是 22 年的情況。

That all makes sense and if I could, Anthony, one for you. Just sort of last quarter, you were really clear that there was a large renewal pulled forward in the year ago period. So when we're thinking about the compare, although that looks -- you put up some really good numbers here.

這一切都很有道理，如果可以的話，安東尼，給你一個。就在上個季度，你真的很清楚去年同期有一個大的更新。因此，當我們考慮進行比較時，儘管看起來 - 你在這裡提供了一些非常好的數字。

But as we contemplate guidance going forward, is there anything like that that we should be thinking about? Any pull forwards or anything unusual about the renewal base?

但是，當我們考慮未來的指導時，我們應該考慮類似的事情嗎？更新基礎有任何前瞻性或任何不尋常的地方嗎？

No, nothing unusual. Obviously, the -- if you were to look at that that Q3 comp last year, that was revenue that moved from Q4 of 2021 into Q3 of 2021. There's about $10 million of that. And so we -- when we normalized for that, I think it provides a reasonably healthy outlook for '21, but also for Q4 of '22.

不，沒什麼不尋常的。顯然，如果你看一下去年第三季度的收入，那是從 2021 年第四季度轉移到 2021 年第三季度的收入。其中大約有 1000 萬美元。所以我們——當我們對此進行標準化時，我認為它為 21 年以及 22 年第四季度提供了一個相當健康的前景。

And you also think about the fact that Kemp was part of the business in Q4 of last year. So the incremental contribution from Kemp in Q4 is a lot smaller.

而且您還考慮了 Kemp 是去年第四季度業務的一部分這一事實。因此，Kemp 在第四季度的增量貢獻要小得多。

So our view is the Q3 results when you normalize them are really strong, the Q4 outlook is strong. As we think about 2023, obviously, we're not guiding there today. But we'll be sure to call out any anomalies in the revenue distribution when we get closer there.

所以我們的觀點是，當你將它們標準化時，第三季度的結果非常強勁，第四季度的前景也很強勁。當我們考慮 2023 年時，顯然，我們今天並沒有指導那裡。但是當我們接近那裡時，我們一定會指出收入分配中的任何異常情況。

And our next question comes from Ittai Kidron from Oppenheimer.

我們的下一個問題來自奧本海默的 Ittai Kidron。

A couple of questions for me. Maybe Yogesh if you, I do want to go back to John's question on macro. Are you seeing any elongation in sales cycles and renewal activity? Do you see customers requiring a few more signatures on closing on renewals?

問我幾個問題。也許 Yogesh 如果你，我確實想回到約翰關於宏觀的問題。您是否看到銷售週期和更新活動有任何延長？您是否看到客戶在續訂結束時需要更多簽名？

Are you seeing customers maybe reconsidering renewals or pushing them out or downsizing as a result. Anything that you guess, you can see that you're seeing out there would it be by region as well; if there's any specific color related to that that would be greatly appreciated.

您是否看到客戶可能會重新考慮續訂或將其推出或縮減規模。無論您猜到什麼，您都可以看到您看到的是按地區劃分的；如果有任何與此相關的特定顏色，將不勝感激。

In fact, we're not -- to be honest, we're not really seeing much of that. I'm sure there's some internal scrutiny going on in organizations. But our perspective, we've had business closed on time that we expect it to close in K3. Obviously, otherwise, putting up the numbers we put up would have been not possible.

事實上，我們不是 - 老實說，我們並沒有真正看到很多。我確信組織中正在進行一些內部審查。但我們的觀點是，我們已經按時關閉業務，我們預計它會在 K3 關閉。顯然，否則，我們不可能提供我們提供的數字。

We've had people expand their relationships with us and continue to do so. We -- I'm actually -- I know that that is something that I've heard from other organizations and other companies. I think the difference is that our business is primarily focused around renewals. And our expansions are primarily focused around the capacity of the work that people are trying to do.

我們已經讓人們擴大了與我們的關係，並將繼續這樣做。我們——我實際上——我知道這是我從其他組織和其他公司那裡聽到的。我認為不同之處在於我們的業務主要集中在續訂方面。我們的擴展主要集中在人們試圖做的工作的能力上。

So let me give you an example, if somebody is using Chef for their environment and their environment scales up because they've actually ended up doing more with their environment. And now they have a bigger environment. And now they need more effectively capacity for deploying software securely or deploying the infrastructure securely using Chef. The deal with Chef becomes bigger with us, right?

因此，讓我舉個例子，如果有人在他們的環境中使用 Chef，並且他們的環境擴大了規模，因為他們實際上最終對他們的環境做了更多的事情。現在他們有一個更大的環境。現在，他們需要更有效的能力來安全地部署軟件或使用 Chef 安全地部署基礎設施。與 Chef 的交易對我們來說變得更大了，對吧？

So it is because we are in the IT op side and as well as on application development, which is more on the run time side, rather than developing new things, we really see a really solid business right now. So I know that I'm probably going against the stream with respect to what the rest of the world is talking about.

所以這是因為我們在 IT 運營方面以及應用程序開發方面，更多的是在運行時方面，而不是開發新事物，我們現在確實看到了一個非常穩固的業務。所以我知道我可能會反對世界其他地方正在談論的內容。

But for Progress Software, that's actually one of our core strengths, right, having mission-critical software that people need even when times are tough, makes us such a statement.

但對於 Progress Software 來說，這實際上是我們的核心優勢之一，對的，擁有人們即使在艱難時期也需要的關鍵任務軟件，讓我們做出這樣的聲明。

That's great, great to hear. And then, Anthony, just on the operating margin. I guess you're closing on a year now in Kemp. Maybe you could talk about what's left to squeeze out there from a margin or cost standpoint? And before Kemp, you had higher operating margins. You're kind of reiterating the same operating margin into the fourth quarter.

太好了，很高興聽到。然後，安東尼，就營業利潤率而言。我猜你在坎普的一年就要結束了。也許你可以談談從利潤或成本的角度來看還有什麼可以擠出來的？在 Kemp 之前，您的營業利潤率更高。你有點重申第四季度的營業利潤率。

What will it take for you to get over 40% again from an operating margin standpoint?

從營業利潤率的角度來看，您需要什麼才能再次超過 40%？

Yes. I think there's probably not much left to do with Kemp as we get into the fourth quarter here. I think from an integration perspective, we've done everything that we need to do.

是的。我認為當我們進入第四節時，坎普可能沒什麼可做的了。我認為從整合的角度來看，我們已經做了我們需要做的一切。

I think the business is performing well. I think as we look out and start to see the contribution for Q4; I think it's a pretty solid contribution, probably generally in line with the business case that we've put out.

我認為業務表現良好。我認為，當我們放眼並開始看到第四季度的貢獻時；我認為這是一個非常可靠的貢獻，可能與我們提出的商業案例大體一致。

Kemp will be affected by foreign exchange rates, just like the rest of our business will be. So we'll keep an eye on that. And I think our business generally is a little bit impacted by those foreign exchange rates. And there's probably a little bit of a slight margin compression there, not anything like what we would see on the revenue line. And I talked a little bit about having more of a natural hedge on the operating income line.

Kemp 將受到外匯匯率的影響，就像我們的其他業務一樣。所以我們會密切關注這一點。而且我認為我們的業務通常會受到這些外匯匯率的影響。那裡可能有一點點利潤壓縮，不像我們在收入線上看到的那樣。我談到了在營業收入線上有更多的自然對沖。

We're probably 75% hedged, 75% to 80%, generally speaking, from the negative impact on revenue. But I think Kemp is pretty much chugging along on plan. We'll see how our margins evolve in Q4 and going into 2023.

一般來說，我們可能對沖了 75%，75% 到 80%，因為對收入的負面影響。但我認為 Kemp 幾乎在按計劃進行。我們將看到我們的利潤率在第四季度和 2023 年如何變化。

But I think we're feeling like the margin profile is as stable as it's been a long time for us.

但我認為我們感覺利潤率狀況和我們長期以來一樣穩定。

And our next question comes from Anja Soderstrom from Sidoti.

我們的下一個問題來自 Sidoti 的 Anja Soderstrom。

I'm just curious, you said you had made investments in improving the customer experience, which seems to be very important for you, considering you're dependent on your current customer base.

我只是好奇，你說你已經投資改善客戶體驗，考慮到你依賴於當前的客戶群，這對你來說似乎非常重要。

Can you just elaborate on what kind of improvements you've done there and what we can expect from those?

您能否詳細說明您在那裡做了什麼樣的改進以及我們可以從中得到什麼？

Yes. So Anja, we continually look for better ways to engage with our customers. So there are 2 areas of investment. One area of investment is in our products, continuing to innovate and making sure that our products continue to be relevant and market-leading for our customers, right?

是的。所以 Anja，我們不斷尋找更好的方式來與我們的客戶互動。所以有2個投資領域。投資領域之一是我們的產品，持續創新並確保我們的產品繼續與我們的客戶相關並處於市場領先地位，對嗎？

So for example, like now, for example, our DevTools products for blazer are absolutely the best in the market. And we continue to see interesting customer successes. One of the Blazer users, which, happens to be the S&P Global Markets Market Intelligence team, the MD there basically, spoke about how it has helped them make their apps much more engaging.

因此，例如，像現在這樣，例如，我們用於西裝外套的 DevTools 產品絕對是市場上最好的。我們繼續看到有趣的客戶成功案例。 Blazer 的一位用戶，恰好是 S&P Global Markets 的市場情報團隊，基本上是那裡的總經理，談到了它如何幫助他們使他們的應用程序更具吸引力。

And obviously, they deal with trillions of dollars of fund-raising that companies do either through IPOs or secondaries or debt offerings or whatever. So I think we -- one of that is, as I said, around product investment and innovation. The second area is around customer success and customer intimacy.

顯然，它們處理數万億美元的籌資，這些籌資是公司通過首次公開募股或二級市場或債券發行或其他方式進行的。所以我認為我們——正如我所說，其中之一就是圍繞產品投資和創新。第二個領域是圍繞客戶成功和客戶親密度。

And Anthony spoke about the fact that our customer intimacy efforts are the ones that basically allow us to keep our customers engaged with us and to us be engaged with them. And so that's where we make investments.

安東尼談到了這樣一個事實，即我們的客戶親密度努力基本上使我們能夠讓我們的客戶與我們保持互動，並讓我們與他們互動。這就是我們進行投資的地方。

But these are not -- I don't want you to think of these as incremental investments. These are -- we've been making these investments all along and we will continue to make these investments. So I don't want to imply Anja that we are increasing investments, right? It's not that. We're continuing to invest the way we've been investing in the past.

但這些不是——我不希望你將這些視為增量投資。這些是——我們一直在進行這些投資，我們將繼續進行這些投資。所以我不想暗示 Anja 我們正在增加投資，對嗎？這並不是說。我們將繼續按照過去的投資方式進行投資。

Okay. And then can you also tell us how -- what you see in the M&A market? Are you -- are you sort of much more active there now? Or you're waiting to see when the prices come down? Or what's your sort of approach right now to further M&A?

好的。然後你能告訴我們你在併購市場上看到了什麼嗎？你——你現在在那裡更活躍了嗎？或者你在等著看價格甚麼時候降下來？或者你現在進一步併購的方法是什麼？

So we are extremely active, Anja. An interesting thing happened this year, I think, which was quite unusual, I think, a little bit. In July and August for a couple of months in the summer, it seemed like everybody wanted to take a vacation given that there were in 2020 and 2021, people weren't taking summer vacations.

所以我們非常活躍，Anja。我認為今年發生了一件有趣的事情，這很不尋常，我認為有一點點。在夏季的 7 月和 8 月有幾個月，似乎每個人都想去度假，因為在 2020 年和 2021 年，人們沒有放暑假。

So the deal flow slowed down. So the amount of activity in the M&A market in terms of even deals coming on the market slowed down. But that didn't mean that we didn't stay engaged, just less deals showed up.

因此，交易流程放緩。因此，就即將上市的交易而言，併購市場的活動量有所放緩。但這並不意味著我們沒有保持參與，只是出現的交易減少了。

And we've seen it already pick up this month. So we are extremely active. We are not waiting. We are looking at the right opportunities and the right type of businesses. And where it makes sense, we compete to the right value that we feel is right for our shareholders. I think that's the fundamental process that we go through. So we are extremely active.

我們已經看到它本月已經回升。所以我們非常活躍。我們沒有等待。我們正在尋找合適的機會和合適的業務類型。在有意義的地方，我們會爭取我們認為對股東來說合適的正確價值。我認為這是我們經歷的基本過程。所以我們非常活躍。

And our next question comes from Brent Thill from Jefferies.

我們的下一個問題來自 Jefferies 的 Brent Thill。

This is Bo Yin on for Brent. I guess could you talk a little bit about the mix of enterprise versus mid-market customers on your platform today? And where do you want to see this trend over time?

這是布倫特上的博銀。我想您能談談今天您平台上的企業客戶與中端市場客戶的混合情況嗎？隨著時間的推移，您希望在哪裡看到這種趨勢？

So the vast majority -- so again, our business, I would say, I wouldn't break down our business into 2 major segments first, right? There's a segment, about approximately 1/3 of our business, let's say, 30% of our business is other software companies, right, where we have 1,700 other software companies whose products are built on top of our products.

所以絕大多數 - 再一次，我們的業務，我會說，我不會首先將我們的業務分為兩個主要部分，對嗎？有一個細分市場，大約占我們業務的 1/3，比方說，我們 30% 的業務是其他軟件公司，對吧，我們有 1,700 家其他軟件公司，其產品構建在我們的產品之上。

They embed our products into their products. And then they licensed those to all kinds of companies, large enterprises as well as mid-market companies. And those software companies range from the largest names you can imagine, including Microsoft and Oracle and Adobe and IBM and SAP and others and as well as a whole host of mid-market software companies around the globe.

他們將我們的產品嵌入到他們的產品中。然後他們將這些授權給各種公司、大型企業以及中端市場公司。這些軟件公司包括您能想像到的最知名的公司，包括微軟、甲骨文、Adobe、IBM 和 SAP 等，以及全球眾多的中端市場軟件公司。

So that's one audience. And really, their customers can be enterprise customers or they can be mid-market customers. Then, our direct to the market business where we sell to the business, the vast majority of our business is mid-market. We, of course, have phenomenal enterprise customers, right?

這就是一個觀眾。實際上，他們的客戶可以是企業客戶，也可以是中端市場客戶。然後，我們直接面向我們向企業銷售的市場業務，我們的絕大多數業務都是中端市場。當然，我們有非凡的企業客戶，對嗎？

And 90% of the Fortune 500; are our customers. So I don't imply that that we don't have great large customers. But in terms of revenue impact, the vast majority of our business is mid-market customers. And we like that, by the way. So we actually believe that in-stock elephant hunting, we like the fact that we are able to do mid-market deals. And we're able to work with businesses and grow with them as they grow and have a broad base that cuts across a whole bunch of different industries.

以及90%的財富500強；是我們的客戶。所以我並不是說我們沒有大客戶。但就收入影響而言，我們的絕大部分業務是中端市場客戶。順便說一句，我們喜歡這樣。所以我們實際上相信庫存大象狩獵，我們喜歡我們能夠進行中端市場交易的事實。我們能夠與企業合作，並隨著他們的成長與他們一起成長，並且擁有廣泛的基礎，涵蓋許多不同的行業。

So we have resilience to a specific vertical industry doing well or not doing well. We have resilience to geographies. We have resilience to sectors. So it is really an important thing for us. And we primarily focus on growing our mid-market presence around the world.

因此，我們對特定的垂直行業表現良好或表現不佳具有彈性。我們對地域具有彈性。我們對行業有彈性。所以這對我們來說真的很重要。我們主要專注於擴大我們在全球中端市場的影響力。

That's very helpful. And maybe just one more. Could you just remind us of the split between the contribution of ARR coming from existing and new customers? And with Kemp, is there anything different that you saw in Q3?

這很有幫助。也許還有一個。您能否提醒我們現有客戶和新客戶對 ARR 的貢獻之間的差異？對於 Kemp，您在第三季度看到的有什麼不同嗎？

Yes, I don't think we've broken out the ARR contribution coming from existing versus new. Obviously, with a business like ours, the vast majority is going to be coming from existing.

是的，我不認為我們已經打破了來自現有與新的 ARR 貢獻。顯然，對於像我們這樣的企業，絕大多數將來自現有的。

So I would say significant majority. Kemp, I would say nothing sort of unusual or different in the third quarter. But Kemp overall, when we acquired the business, we expected it to be probably close to $70 million in revenue. And the mix of recurring revenue was a little bit lower than what we have in our business, but that was sort of known coming in.

所以我會說絕大多數。坎普，我想說第三節沒有什麼不尋常或不同的地方。但總的來說，當我們收購 Kemp 時，我們預計它的收入可能接近 7000 萬美元。經常性收入的組合略低於我們業務中的收入，但這是眾所周知的。

And I think there was a drive to improve customer retention rates and net retention rates. And I think we're seeing some success with the integration. So nothing, I think, unusual with their ARR model or their ARR makeup relative to the rest of our business.

而且我認為有一種提高客戶保留率和淨保留率的動力。我認為我們在整合方面取得了一些成功。因此，我認為，與我們其他業務相比，他們的 ARR 模型或 ARR 構成沒有什麼不尋常的。

And our next question comes from Pinjalim Bora from JPMorgan.

我們的下一個問題來自摩根大通的 Pinjalim Bora。

Congrats on the quarter. I wanted to ask you about the -- go back to the price increase question, which was, I think, one of first or second question in the queue. But the -- when I look at the pro forma ARR sequential additions, I think it's something like $9 million seems probably the highest in the last 8 quarters, at least in my model.

祝賀這個季度。我想問你關於價格上漲的問題，我認為這是隊列中的第一個或第二個問題。但是——當我查看備考 ARR 連續增加時，我認為大約 900 萬美元似乎是過去 8 個季度中最高的，至少在我的模型中是這樣。

Is there -- are you seeing any impact of price increase at this point that's kind of helping that number a little bit?

在這一點上，你是否看到價格上漲的任何影響對這個數字有一點幫助？

I think, its -- Pinjalim, thank you. And I think the price increase has a very, very tiny contribution to it. I don't want to say zero, right, I don't imply it is zero.

我想，它-- Pinjalim，謝謝。而且我認為價格上漲對此的貢獻非常非常小。我不想說零，對，我並不是說它是零。

There is some impact on it. But no, it was quite small compared to the rest of it. It's hard for me to estimate that in any quantifiable way, but I think it's extremely small.

有一定的影響。但是不，與其他部分相比，它很小。我很難以任何可量化的方式對其進行估計，但我認為它非常小。

Okay, got it. And then, Yogesh, I think you alluded to a go-to-market realignment in your script. I wanted to ask you if you can elaborate on that. Is that kind of folding Kemp's 2-tier sales motion into the broad broader organization? Is it something else? Help me understand what you're talking about?

好，知道了。然後，Yogesh，我認為你在腳本中提到了上市調整。我想問你是否可以詳細說明一下。是否將 Kemp 的 2 層銷售動議折疊到更廣泛的組織中？是別的東西嗎？幫我理解你在說什麼？

Yes. So I think it is about a better way to go to market. So we are basically saying which products that we now -- we've acquired 3 companies over the last 3 years. And when we acquired them, we were sort of running them differently than we would like to run them because we see that certain products can go to market better. And we can serve our customers better that way and go to market better.

是的。所以我認為這是一種更好的上市方式。所以我們基本上是在說我們現在有哪些產品——我們在過去 3 年裡收購了 3 家公司。當我們收購它們時，我們運行它們的方式與我們希望運行它們的方式有所不同，因為我們看到某些產品可以更好地推向市場。這樣我們就可以更好地為客戶服務，更好地進入市場。

We also want to be ready for M&A and actually -- be able to do M&A across our entire portfolio in a much more rapid way and be able to integrate M&A more rapidly. So both those things are driving what we are doing. It really is primarily realigning some of our functions and not more than that.

我們還希望為併購做好準備，實際上 - 能夠以更快的方式在我們的整個投資組合中進行併購，並能夠更快地整合併購。所以這兩件事都在推動我們正在做的事情。它實際上主要是重新調整我們的一些功能，僅此而已。

And we have no more questions at this time. I'll turn it back to the speakers for final comments.

現在我們沒有其他問題了。我會把它轉回演講者以徵求最終意見。

Well, thank you very much for joining us on our call today. We look forward to talking to you again soon and have a wonderful evening. Goodbye.

非常感謝您今天加入我們的電話會議。我們期待很快再次與您交談，祝您度過一個愉快的夜晚。再見。

And thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

女士們先生們，謝謝你們。今天的會議到此結束。感謝您的參與。您現在可以斷開連接。