Progress Software Corp (PRGS) 2024 Q3 法說會逐字稿

Good day and welcome to the Progress Software Corporation Q3 2024 earnings call (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，歡迎參加 Progress Software Corporation 2024 年第三季財報電話會議（操作員說明） 請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker Mr. Mike Micciche, Senior Vice President, Investor Relations.

現在我想將會議交給演講者投資者關係高級副總裁 Mike Micciche 先生。

Please go ahead sir.

請先生繼續。

Okay.

好的。

Thank you, Shuri.

謝謝你，舒裡。

It's always a pleasure to have you with us.

很高興您能和我們在一起。

Good afternoon, everybody.

大家下午好。

Thanks for joining us for Progress Software's third quarter 2024 financial results conference call.

感謝您參加 Progress Software 2024 年第三季財務業績電話會議。

On the line with me today are Yogesh Gupta, President and CEO; and Anthony Folger, our Chief Financial Officer.

今天和我一起在線的是總裁兼首席執行官 Yogesh Gupta；和我們的財務長安東尼福爾格。

Before we get started, let's go over our Safe Harbor statement.

在開始之前，讓我們先回顧一下我們的安全港聲明。

During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, our proposed acquisition of ShareFile, which we announced on 9 September, and other information that might be considered forward-looking.

在本次電話會議中，我們將討論我們對未來財務和營運績效的展望、公司策略、產品計劃、成本計劃、我們於9 月9 日宣布的對ShareFile 的擬議收購，以及其他可能被視為前瞻性的信息。

Such forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties.

此類前瞻性資訊僅代表 Progress Software 截至目前的展望和指導，並存在風險和不確定性。

For a description of the risk factors that may affect our results, please refer to the risk factors in our filings with the Securities and Exchange Commission.

有關可能影響我們業績的風險因素的說明，請參閱我們向美國證券交易委員會提交的文件中的風險因素。

Progress Software assumes no obligation to update the forward-looking statements included in this call.

Progress Software 不承擔更新本次電話會議中所包含的前瞻性聲明的義務。

Additionally, please note that all the financial figures referenced on this call are non-GAAP measures, unless otherwise indicated, you can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP figures in our financial results press release, which was issued after the market closed today.

此外，請注意，本次電話會議引用的所有財務數據均為非GAAP 衡量標準，除非另有說明，否則您可以在我們的財務業績新聞稿中找到這些非GAAP 財務衡量標準與最直接可比較的GAAP數據的調節表，其中是在今天收盤後發布的。

This document contains additional information related to our financial results for the third quarter of fiscal year 2024 and I recommend that you reference it for specific details.

本文件包含與我們 2024 財年第三季度財務業績相關的其他信息，我建議您參考它以了解具體詳細信息。

We also have prepared a presentation that contains supplemental data for our third quarter 2024 results, provides highlights and additional financial metrics.

我們也準備了一份演示文稿，其中包含 2024 年第三季業績的補充數據，提供要點和其他財務指標。

Both the earnings release and the supplemental presentation, along with a copy of our press release and the supplemental slide presentation announcing the ShareFile acquisition on September 9, 2024, are all available in the Investor Relations section of our website at investors.progress.com. Today's call will be recorded in its entirety and should be available for replay on the Investor Relations section of our website shortly after we finish.

收益發布和補充演示文稿，以及我們宣佈於 2024 年 9 月 9 日收購 ShareFile 的新聞稿副本和補充幻燈片演示文稿，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，並應在結束後不久在我們網站的投資者關係部分進行重播。

With that let me turn it over to Yogesh.

接下來讓我把它交給 Yogesh。

Thank you, Mike.

謝謝你，麥克。

Good afternoon, everyone, and thank you for joining us as we share the results of our third fiscal quarter.

大家下午好，感謝您加入我們，分享我們第三財季的表現。

The last few months have been busy and exciting and I'm glad to be here this afternoon to talk about all the great things happening here at Progress right now.

過去的幾個月是忙碌而令人興奮的，我很高興今天下午來到這裡，談論現在在 Progress 發生的所有偉大的事情。

To begin with, let's talk about the third quarter which was ahead of the high end of our guidance on both the top and bottom lines.

首先，我們來談談第三季度，該季度的營收和利潤均超出了我們指導的上限。

Revenue grew by 2% year-over-year to $179 million and EPS grew 17% year-over-year, reflecting continued expense management.

營收年增 2%，達到 1.79 億美元，每股收益年增 17%，反映出持續的費用管理。

We ended the quarter with $582 million in ARR, up sequentially 1% and net retention rate held steady at 99% as some churn from late last year, which we have previously discussed, works through the trailing 12-month calculation.

本季末，我們的 ARR 為 5.82 億美元，比上一季成長 1%，淨留存率穩定在 99%，因為去年年底的一些流失（我們之前已經討論過）貫穿了過去 12 個月的計算。

We generated excellent cash flows with DSOs at 45 days and our balance sheet remained healthy and strong, ending the quarter with over $230 million in cash.

我們透過 DSO 在 45 天內產生了出色的現金流，我們的資產負債表保持健康強勁，本季末現金超過 2.3 億美元。

So on just about every metric, we had a strong quarter.

因此，在幾乎所有指標上，我們都有一個強勁的季度。

I'm very pleased with our Q3 results and Anthony will provide more details on the financial metrics and dynamics in his remarks.

我對我們第三季的業績感到非常滿意，安東尼將在他的演講中提供有關財務指標和動態的更多詳細資訊。

And another important news during the third quarter, the SEC notified us that it has concluded its investigation into the MOVEit vulnerability with no enforcement action recommended.

第三季的另一個重要消息是，美國證券交易委員會 (SEC) 通知我們，它已結束對 MOVEit 漏洞的調查，但不建議採取任何執法行動。

This news from the SEC in August was in addition to clearance decisions by data privacy regulators in the UK, Australia, and Spain over the past year.

SEC 在 8 月發布的這一消息是英國、澳洲和西班牙資料隱私監管機構在過去一年中做出的許可決定的補充。

We view all these decisions as positive indicators of how we've handled the MOVEit vulnerability from our rapid initial response and reporting transparency to our foresight cooperation with all regulatory inquiries and investigation.

我們將所有這些決定視為我們如何處理 MOVEit 漏洞的積極指標，從我們的快速初步回應和報告透明度到我們與所有監管詢問和調查的遠見合作。

The third piece of exciting news which we announced two weeks ago is our signing of the agreement to acquire ShareFile, which is the latest step in our total growth strategy and our largest acquisition yet.

我們兩週前宣布的第三條令人興奮的消息是我們簽署了收購 ShareFile 的協議，這是我們整體成長策略的最新一步，也是我們迄今為止最大的收購。

We intend to make an all-cash purchase of ShareFile for $875 million and expect to close the transaction before the end of fiscal 2024 subject to regulatory approvals and customary closing conditions.

我們打算以 8.75 億美元全現金收購 ShareFile，並預計在 2024 財年年底前完成交易，但須獲得監管部門批准並滿足慣例成交條件。

Immediately after closing, we will begin the integration process and we look forward to welcoming the ShareFile team to Progress.

交易結束後，我們將立即開始整合過程，我們期待歡迎 ShareFile 團隊加入 Progress。

We expect full integration to be completed within 12 months.

我們預計全面整合將在 12 個月內完成。

I'm really excited about this acquisition and let me share some of the reasons why.

我對這次收購感到非常興奮，讓我分享一些原因。

ShareFile, which we're acquiring from the Cloud Software Group is a leading provider of collaboration software for document-centric use cases.

我們從 Cloud Software Group 收購的 ShareFile 是一家領先的協作軟體供應商，為以文件為中心的用例提供協作軟體。

It is a modern SaaS native platform with AI-powered document-centric collaboration and automated workflows, client portals, secure file sync and share, and e-signature capabilities.

它是一個現代 SaaS 本機平台，具有人工智慧驅動的以文件為中心的協作和自動化工作流程、客戶端入口網站、安全文件同步和共享以及電子簽名功能。

Any company whose business workflows are document-centric and compliance heavy, where several internal and external parties collaborate on documents and require various levels of editing and approval through a secure auditable solution can benefit from using ShareFile.

任何其業務工作流程以文件為中心且合規性較高的公司，其中多個內部和外部各方協作處理文件並需要通過安全的可審核解決方案進行不同級別的編輯和批准，都可以從使用ShareFile 中受益。

This is why ShareFile will complement and fit in perfectly with our existing digital experience offerings and will enable us to offer greater value to users.

這就是為什麼 ShareFile 將補充並完美契合我們現有的數位體驗產品，並使我們能夠為使用者提供更大的價值。

ShareFile's 86,000 strong customer base is large and loyal and spans industries such as accounting, financial and legal services, healthcare, construction, and real estate.

ShareFile 擁有 86,000 名龐大且忠誠的強大客戶群，涵蓋會計、金融和法律服務、醫療保健、建築和房地產等行業。

100% of its revenue is recurring with a net retention rate of over 100%.

其100%的收入是經常性的，淨留存率超過100%。

Integration with our existing digital experience sales, go-to-market, engineering, support, and operating infrastructure will provide us a clear path to our operating margin target for the acquired business of 40%.

與我們現有的數位體驗銷售、上市、工程、支援和營運基礎設施的整合將為我們提供一條清晰的道路，實現所收購業務 40% 的營運利潤率目標。

When the deal closes, we expect ShareFile to add over $240 million in both annual revenue and ARR, which will bring our total annual revenue to nearly $1 billion and our ARR to well over $800 million.

交易完成後，我們預計 ShareFile 的年收入和 ARR 將增加超過 2.4 億美元，這將使我們的年總收入達到近 10 億美元，ARR 遠超過 8 億美元。

In terms of financing deal, we will use a combination of cash on hand and our existing revolving credit facility.

在融資交易方面，我們將結合使用庫存現金和現有的循環信貸額度。

We expect pro forma net leverage to be around 3.6 at the time of closing and we intend to delever quickly as we have with our prior acquisitions.

我們預計交割時預期淨槓桿約為 3.6，並且我們打算像之前的收購一樣迅速去槓桿化。

Speaking of delevering, let me spend a few minutes on why we also announced our intention to suspend our quarterly cash dividend once the deal closes.

說到去槓桿化，讓我花幾分鐘時間解釋為什麼我們還宣布打算在交易完成後暫停季度現金股息。

This decision was made with significant deliberations as part of our total growth strategy.

作為我們整體成長策略的一部分，這項決定是經過深思熟慮後做出的。

So it's worth examining our commitment to executing our plan in a little more detail.

因此，值得更詳細地審視我們執行計劃的承諾。

Our goal with the total growth strategy is to make Progress more valuable while making us stronger and larger.

我們整體成長策略的目標是讓進步變得更有價值，同時讓我們變得更強、更大。

Our goal is to provide more value to our customers and create more value for our shareholders.

我們的目標是為客戶提供更多價值，為股東創造更多價值。

I'm extremely enthusiastic and passionate about our technology and our products and how they help our customers succeed and thrive in this ever-changing technology-driven world.

我對我們的技術和產品以及它們如何幫助我們的客戶在這個不斷變化的技術驅動的世界中取得成功和繁榮充滿熱情和熱情。

Our fanatical focus on customer success is one of the three key pillars of our strategy, as is our commitment to investing in and innovating our products to grow and adapt to the needs of our customers.

我們對客戶成功的狂熱關注是我們策略的三大關鍵支柱之一，我們致力於投資和創新我們的產品，以發展和適應客戶的需求。

Updating and modernizing our offerings is essential for the continued success of our customers and for retaining them well into the future.

更新和現代化我們的產品對於我們客戶的持續成功以及留住他們在未來至關重要。

This strong foundation of great technology and sustained customer success are the bedrock of our business and the reason why all products generate significant free cash flow.

卓越技術的堅實基礎和持續的客戶成功是我們業務的基石，也是所有產品產生大量自由現金流的原因。

And that free cash flow, in turn, needs to be guided by a prudent capital allocation policy to continue driving the success of our total growth strategy.

反過來，自由現金流需要以審慎的資本配置政策為指導，以繼續推動我們整體成長策略的成功。

We've always placed the highest priority on M&A, followed by share buybacks.

我們始終將併購放在首位，其次是股票回購。

So our game plan for growing shareholder value is simple.

因此，我們提高股東價值的計畫很簡單。

First, achieve greater revenues, earnings, and cash flows by acquiring highly accretive businesses with characteristics similar to ours, businesses with excellent products and loyal customer bases.

首先，透過收購具有與我們相似特徵的高增值業務、擁有優質產品和忠誠客戶群的業務，實現更大的收入、收益和現金流。

Second, pay the right price, integrate them quickly and efficiently, while focusing on customer success and retention.

其次，支付合適的價格，快速有效地整合它們，同時專注於客戶的成功和保留。

And finally, aggressively reduce leverage to prime our liquidity for the next deal.

最後，積極降低槓桿，為下一筆交易提供流動性。

In the meantime, we minimize dilution and return capital to shareholders in the form of well-timed buybacks.

同時，我們最大限度地減少稀釋，並以適時回購的形式將資本回饋給股東。

When it comes to executing on M&A, we will continue to remain disciplined and patient as we search for new opportunities and then act decisively.

在執行併購方面，我們將繼續保持紀律和耐心，尋找新的機會，然後果斷採取行動。

Oftentimes, as you've seen, acting decisively means walking away from a potential acquisition that we don't think will work.

正如您所看到的，果斷行動通常意味著放棄我們認為行不通的潛在收購。

We are far more willing to say no than yes when it comes to finding the right fit and paying the right price.

當談到尋找合適的產品並支付合適的價格時，我們更願意說“不”而不是“是”。

And we're very comfortable walking away because in the absence of an acquisition, we focus on continuously improving our processes and systems.

我們很樂意離開，因為在沒有收購的情況下，我們專注於不斷改進我們的流程和系統。

We put great effort into upgrading and optimizing our internal technology and business practices to continue to make us more integration ready and efficient.

我們大力升級和優化我們的內部技術和業務實踐，以繼續使我們更加整合和高效。

And of course, we're always trying to incorporate the lessons learned from any mistakes we make.

當然，我們一直在努力吸取從所犯錯誤中學到的教訓。

Just as important, we keep Progress a great place to work for our employees.

同樣重要的是，我們讓 Progress 成為員工的理想工作場所。

Our voluntary turnover remains well below that of the overall software industry and has hovered around 6% over the past two years.

我們的自願離職率仍然遠低於整個軟體產業的水平，過去兩年一直徘徊在 6% 左右。

Keeping a talented, stable workforce is essential to the effective execution of our total growth strategy from innovation and customer success to acquisition and integration.

維持一支才華橫溢、穩定的員工隊伍對於有效執行我們從創新和客戶成功到收購和整合的整體成長策略至關重要。

Our front office and back office teams all get better with each deal and its subsequent integration.

我們的前台和後台團隊在每筆交易及其後續整合中都變得更好。

I feel proud of how we have continued to mature and grow our ability to execute on our strategy and create more value for our customers, our shareholders, and of course, our employees.

我為我們如何不斷成熟和增強執行策略的能力並為我們的客戶、股東，當然還有我們的員工創造更多價值感到自豪。

So to wrap up, the third quarter was excellent on several fronts.

總而言之，第三季在幾個方面都表現出色。

We had another great performance on the top and bottom line.

我們在營收和利潤方面再次取得了出色的表現。

We received more good news about MOVEit and we are getting ready to close on a meaningful acquisition that will provide us recurring revenues at scale.

我們收到了更多有關 MOVEit 的好消息，我們正準備完成一項有意義的收購，這將為我們帶來大規模的經常性收入。

As always, I want to acknowledge all the people on the Progress team who worked hard to produce these great results.

像往常一樣，我要感謝 Progress 團隊中為取得這些偉大成果而付出努力的所有人員。

Their work is extraordinary and I'm grateful for their talent, dedication and desire to succeed.

他們的工作非常出色，我很感謝他們的才華、奉獻精神和對成功的渴望。

Now let me turn it over to Anthony to provide more financial detail around our third quarter.

現在讓我將其交給安東尼，以提供有關我們第三季度的更多財務細節。

Anthony?

安東尼？

Great.

偉大的。

Thanks, Yogesh, and good afternoon, everyone.

謝謝 Yogesh，大家下午好。

Thanks for joining our call.

感謝您加入我們的通話。

As Yogesh mentioned, we're very pleased with our third quarter results, which once again exceeded the high end of our previously issued guidance ranges.

正如 Yogesh 所提到的，我們對第三季的業績非常滿意，該業績再次超出了我們先前發布的指導範圍的上限。

We're also thrilled that on September 9, we announced the signing of a definitive agreement to acquire ShareFile from Cloud Software Group.

我們也很高興在 9 月 9 日宣布簽署最終協議，從 Cloud Software Group 收購 ShareFile。

I'll talk more about ShareFile and the acquisition in a bit, but first let's get into the numbers.

我稍後會詳細討論 ShareFile 和收購，但首先讓我們了解數字。

Starting with ARR, which came in at $582 million and represented slight growth on a year-over-year basis and approximately 1% sequential growth over the second quarter.

首先是 ARR，其營收為 5.82 億美元，較去年同期略有成長，比第二季較上季成長約 1%。

Although no single product drove material growth in our total ARR, the increase that we delivered was the result of modest growth in multiple products across our portfolio including OpenEdge, DevTools, Sitefinity, Loadmaster, Flowmon, and MOVEit.

儘管沒有任何單一產品推動我們的總 ARR 大幅成長，但我們實現的成長是我們產品組合中多個產品適度成長的結果，包括 OpenEdge、DevTools、Sitefinity、Loadmaster、Flowmon 和 MOVEit。

We also had another strong quarter for net retention with our Q3 rates coming in at 99%.

我們的淨保留率也表現強勁，第三季的淨保留率達到 99%。

In addition to our solid ARR performance in the quarter, quarterly revenue of $179 million slightly exceeded the high end of the Q3 guidance range we provided in June and represents approximately 2% year-over-year growth.

除了本季穩健的 ARR 表現外，季度營收 1.79 億美元略高於我們 6 月提供的第三季指導範圍的上限，年增約 2%。

Our strong revenue performance in the quarter was driven by stronger-than-expected demand for multiple products in our portfolio, including OpenEdge.

我們本季強勁的營收表現得益於對我們產品組合中多種產品（包括 OpenEdge）的需求強於預期。

Turning now to expenses.

現在轉向費用。

Our total costs and operating expenses were $105 million for the quarter, a decrease of $3 million compared to Q3 of last year.

本季我們的總成本和營運費用為 1.05 億美元，比去年第三季減少了 300 萬美元。

This year-over-year decrease was driven by two factors.

這一同比下降是由兩個因素驅動的。

First is tight cost management across the business as our teams again executed well during the quarter.

首先是整個企業嚴格的成本管理，我們的團隊在本季再次表現良好。

Second is the timing of certain expenses between the third and fourth quarters.

其次是第三季和第四季之間某些支出的時間安排。

Operating income for the quarter was $74 million, an increase of $6 million compared to the same quarter last year with an operating margin of 41%, up 200 basis points year-over-year.

該季度營業收入為 7,400 萬美元，比去年同期增加 600 萬美元，營業利潤率為 41%，年增 200 個基點。

Earnings per share for the quarter were $1.26, $0.11 above the high end of our guidance range and compared to the prior year, earnings per share were up $0.18 or 17%, with the increase being comprised of an improved operating margin and lower interest coupled with higher interest income for the quarter, both resulting from the convertible notes issuance and credit facility refinancing we completed earlier in the year.

本季每股收益為1.26 美元，比我們指導範圍的上限高出0.11 美元，與前一年相比，每股收益增長了0.18 美元，即17%，增長的原因包括營運利潤率的提高和利息的降低以及本季利息收入增加，這都是由於我們今年稍早完成的可轉換票據發行和信貸安排再融資。

Moving on to a few balance sheet and cash flow metrics.

接下來討論一些資產負債表和現金流量指標。

We ended the quarter with cash, cash equivalents, and short-term investments totaling $233 million and debt of $810 million, resulting in a net debt position of $577 million.

截至本季末，我們的現金、現金等價物及短期投資總額為 2.33 億美元，負債為 8.1 億美元，淨負債部位為 5.77 億美元。

This represents net leverage of approximately two times using our trailing 12 months adjusted EBITDA.

這相當於我們過去 12 個月調整後 EBITDA 的淨槓桿比率的大約兩倍。

DSO for the quarter was 45 days, down 4 days compared to the year ago quarter.

本季的 DSO 為 45 天，比去年同期減少 4 天。

Deferred revenue was $285 million at the end of the third quarter, down slightly from the second quarter reflecting normal seasonality in our business.

第三季末遞延收入為 2.85 億美元，比第二季略有下降，反映了我們業務的正常季節性。

Adjusted free cash flow was $58 million for the quarter, an increase of $10 million or 21% from the year ago quarter.

本季調整後自由現金流為 5,800 萬美元，比去年同期增加 1,000 萬美元，成長 21%。

In the third quarter, we repurchased $14 million of Progress stock, bringing our year-to-date total to $87 million.

第三季度，我們回購了 1,400 萬美元的 Progress 股票，使年初至今的總額達到 8,700 萬美元。

And at the end of Q3, we have $107 million remaining under our current share repurchase authorization.

截至第三季末，我們目前的股票回購授權剩餘 1.07 億美元。

On September 9, in conjunction with the ShareFile announcement, we also announced our intent to suspend our quarterly cash dividend upon closing the ShareFile acquisition.

9 月 9 日，在發布 ShareFile 公告的同時，我們也宣布打算在完成 ShareFile 收購後暫停季度現金股利。

We believe we can generate higher returns on capital through M&A as part of our total growth strategy and will therefore prioritize debt repayment to free up capacity for future M&A.

我們相信，作為我們整體成長策略的一部分，我們可以透過併購產生更高的資本回報，因此將優先考慮債務償還，為未來的併購釋放產能。

We expect that we will continue to repurchase shares to offset dilution from our equity plans and on occasion repurchase shares opportunistically.

我們預計我們將繼續回購股票，以抵消股權計劃的稀釋，並偶爾回購股票。

Now let's discuss our outlook, starting with ShareFile.

現在讓我們從 ShareFile 開始討論我們的前景。

We expect ShareFile to contribute approximately one month of results to our fiscal fourth quarter with revenue of $18 million to $20 million, an operating margin of 15% to 20%, and negative adjusted free cash flow of approximately $15 million to $20 million.

我們預期ShareFile 將為我們第四財季貢獻約一個月的業績，營收為1,800 萬美元至2,000 萬美元，營業利潤率為15% 至20%，負調整自由現金流約為1,500 萬美元至2,000 萬美元。

I'd like to emphasize that the negative cash flow is due to the proposed deal structure of the ShareFile acquisition.

我想強調的是，負現金流是由於擬議的 ShareFile 收購交易結構造成的。

The acquisition is structured as an asset purchase and ShareFile's accounts receivable at the time of closing are not included in the assets that are being acquired.

此次收購的結構為資產購買，ShareFile 在成交時的應收帳款不包含在被收購的資產中。

To compensate for this structural point, Progress will receive a $25 million working capital adjustment, which will net against the $875 million purchase price at close.

為了彌補這個結構性問題，Progress 將獲得 2,500 萬美元的營運資本調整，這將抵銷交易結束時 8.75 億美元的收購價格。

After our first billing cycle with ShareFile, we will begin generating cash inflows and expect ShareFile's adjusted free cash flow to be increasingly positive throughout 2025.

在 ShareFile 的第一個計費週期之後，我們將開始產生現金流入，並預計 ShareFile 的調整後自由現金流在 2025 年將變得越來越積極。

With that context for ShareFile in mind, for the fourth quarter of 2024, we expect revenue between $207 million and $217 million and earnings per share of between $1.15 and $1.25.

考慮到 ShareFile 的這一背景，我們預計 2024 年第四季的營收將在 2.07 億美元至 2.17 億美元之間，每股收益將在 1.15 美元至 1.25 美元之間。

For the full year 2024, we expect revenue to be between $745 million and $755 million and operating margin for the year of approximately 39%.

對於 2024 年全年，我們預計收入將在 7.45 億美元至 7.55 億美元之間，全年營業利潤率約為 39%。

Free cash flow between $195 million and $205 million.

自由現金流在 1.95 億美元至 2.05 億美元之間。

This includes the negative contribution from ShareFile; and earnings per share between $4.75 and $4.85. Our guidance for full year EPS assumes a tax rate of approximately 19% and approximately 44 million shares outstanding.

這包括 ShareFile 的負面影響；每股收益在 4.75 美元至 4.85 美元之間。我們對全年每股盈餘的指導假設稅率約為 19%，流通股數約為 4,400 萬股。

In closing, we're really excited to deliver another strong quarter of results and we're thrilled with the announced ShareFile acquisition, both of which position us very well for 2025 and beyond.

最後，我們非常高興能夠再交付一個強勁的季度業績，我們對宣布的 ShareFile 收購感到非常興奮，這兩者都使我們在 2025 年及以後處於有利地位。

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

這樣，Shuri，我想開始問答環節。

(Operator Instructions)

（操作員說明）

John DiFucci, Guggenheim.

約翰‧迪福奇，古根漢。

Thank you for taking my questions.

感謝您回答我的問題。

First one, I think, a question for Anthony.

我想，第一個問題是要問安東尼的。

And then I'd like to ask a follow-up to Yogesh.

然後我想問 Yogesh 的後續情況。

So, Anthony, really nice cash flow in the quarter and you reduced the annual guidance by $10 million even though ShareFile impact was negative $15 million to $20 million.

所以，安東尼，本季的現金流非常好，儘管 ShareFile 的影響為負 1500 萬至 2000 萬美元，但您還是將年度指導減少了 1000 萬美元。

So I just want to make sure my math is right, it's easy math, but that implies excluding ShareFile effect, you would have raised it $5 million to $10 million, the cash flow guidance, and I just want to make sure is that correct?

所以我只是想確保我的數學是正確的，這是簡單的數學，但這意味著排除 ShareFile 效應，你會籌集 500 萬到 1000 萬美元，現金流指導，我只是想確定這是正確的嗎？

And then I know you've talked about this, when you're talking about profit and getting things up to normal levels.

然後我知道當你談論利潤和讓事情恢復到正​​常水平時，你已經談論過這一點。

But -- and you've proven yourself in M&A, Progress has, your team has done that.

但是——你已經在併購中證明了自己，Progress 已經做到了，你的團隊已經做到了。

But can you go through some of the detail of why you're confident in bringing ShareFile profit metrics and I'm really focused with free cash flow to your level to your normalized level over the next 12 months?

但是，您能否詳細說明為什麼您有信心將 ShareFile 利潤指標帶到您的水平，並且我非常關注未來 12 個月內自由現金流達到您的正常水平？

The reason I ask on this one, I know you said you're going to do that and you have done in the past.

我問這個問題的原因是，我知道你說過你會這麼做，而且你過去也這麼做。

But this is a big one, right?

但這是一件大事，對吧？

And it's a little different regarding the core customer base relative to a lot of your other acquisitions?

與您的許多其他收購相比，其核心客戶群略有不同？

Sorry for the long winded.

抱歉囉嗦了。

No, that's great, John.

不，那太好了，約翰。

Thank you.

謝謝。

And you're correct.

你是對的。

The first question about free cash flow, yes, there's an implied increase to our cash flow guide for the year that gets netted down by the ShareFile impact in Q4.

關於自由現金流的第一個問題，是的，我們今年的現金流指南隱含成長，但由於第四季度 ShareFile 的影響而被抵消。

So your math there is correct.

所以你的數學是正確的。

When it comes to our confidence in the ShareFile integration, you're right, it's a larger acquisition, but as our business has grown, ShareFile is about a third of our revenue.

當談到我們對 ShareFile 整合的信心時，您是對的，這是一個更大的收購，但隨著我們業務的成長，ShareFile 約占我們收入的三分之一。

And so it's really not that far out of what we would normally target.

所以這其實與我們通常的目標相差不遠。

It feels like it's manageable to us.

感覺這對我們來說是可以管理的。

The business already is profitable.

該業務已經盈利。

It's running, let's say, between 15% and 20% operating margins.

比如說，它的營業利潤率在 15% 到 20% 之間。

And they already have -- one of the things that was attractive to us is it's a cloud platform operating at scale.

他們已經擁有了——對我們有吸引力的事情之一是它是一個大規模運營的雲端平台。

They've had gross margins better than 80% at least in terms of the diligence we were able to dig into.

至少從我們能夠深入研究的角度來看，他們的毛利率高於 80%。

And all of those things, I think having already an ability to operate cloud infrastructure at scale like that, to do it as a solid gross margin, and the fact that this is an asset deal and it's really a carve-out from Cloud Software Group, we have a sizable DX business already, digital experience business.

所有這些，我認為已經有能力像這樣大規模地運營雲端基礎設施，並以此作為堅實的毛利率，事實上，這是一項資產交易，它實際上是雲端軟體集團的剝離，我們已經有相當規模的DX業務，數位體驗業務。

I think there's a lot of resources that we will bring to bear.

我認為我們可以利用很多資源。

I think our DX business is used to a transactional type of heavy volume business.

我認為我們的DX業務習慣於交易型的大量業務。

So there's an element within Progress that ShareFile looks very familiar to.

因此，Progress 中有一個 ShareFile 看起來非常熟悉的元素。

And I think bringing it over with really strong gross margins and very good net retention rates gives us a lot of confidence that we're going to be able to drive margins where we would expect to in our model and to maintain similar cash flow conversion metrics in this business.

我認為，以非常強勁的毛利率和非常好的淨保留率來實現這一目標，讓我們充滿信心，我們將能夠提高模型中預期的利潤率，並保持類似的現金流轉換指標在這個行業。

Okay.

好的。

Thank you.

謝謝。

And then, Yogesh, to that point about the digital experience business you have, ShareFile, a lot of exposure to the SMB, the similar customer base here, right?

然後，Yogesh，關於您擁有的數位體驗業務，ShareFile，大量接觸中小企業，這裡有類似的客戶群，對嗎？

Yeah.

是的。

But we're starting to see at least indications in the market a bit of a

但我們至少開始在市場上看到一些跡象

[rollover].

[滾下]。

The SMB has been really strong, right?

中小企業真的很強大，對嗎？

And I just -- starting to see a little bit of weakness out of that cohort in the market.

我剛開始看到市場上這群人的一些弱點。

Can you comment on your thoughts regarding this and your recent experience regarding your businesses that do sell into sort of an SMB customer base.

您能否評論一下您對此的想法以及您最近對向中小企業客戶群進行銷售的企業的經歷。

Happy to, John.

很高興，約翰。

So in our digital experience business, right, we also have a very, very large number of customers.

所以在我們的數位體驗業務中，對吧，我們也有非常非常多的客戶。

I mean I think it's quite often not well known that we have more than 20,000 customers in our digital experience business ourselves.

我的意思是，我認為人們常常不知道我們自己的數位體驗業務擁有超過 20,000 名客戶。

It also is a high velocity small repeatable deals business.

這也是一項高速、小型、可重複的交易業務。

We continue to see strength there.

我們繼續看到那裡的實力。

We continue to see the business doing well.

我們繼續看到業務表現良好。

John, from our perspective, business has been solid is the way I would characterize it.

約翰，從我們的角度來看，我對業務的描述是穩健的。

I know that some folks were seeing really, really meaningful upside with the SMB side.

我知道有些人看到了中小企業方面非常非常有意義的好處。

We saw just a steady solid business and we are not seeing changes there in what we do.

我們看到的只是穩定可靠的業務，我們的業務沒有改變。

The ShareFile business is a very interesting one, right?

ShareFile 業務是一項非常有趣的業務，對吧？

It targets really a business user that is using it for the core part of their business, which is collaborating with their clients and making sure that their business functions, right.

它實際上針對的是將其用於其業務核心部分的業務用戶，即與客戶合作並確保其業務正常運作。

If you're an accountant, if you're a lawyer, if you're a doctor, if you are a -- any of the business services people that use this, they are using it to exchange mission-critical from their perspective, business critical information in a secure reliable way, do workflow on it, make sure that multiple people can work on it in a secure way, make sure that there is versioning and ability to audit and track who did what.

如果你是會計師，如果你是律師，如果你是醫生，如果你是任何使用此功能的商業服務人員，他們正在使用它從他們的角度來交換關鍵任務，以安全可靠的方式處理業務關鍵訊息，對其進行工作流程，確保多人可以以安全的方式處理它，確保有版本控制以及審計和追蹤誰做了什麼的能力。

And many of these industries are highly regulated.

其中許多行業都受到嚴格監管。

So it is a very stable business.

所以這是一個非常穩定的業務。

The business has had a track record of stability, right.

該業務有著穩定的記錄，對吧。

So we know that from looking at what has been shared with us.

所以我們透過查看與我們分享的內容就知道了這一點。

So we feel good.

所以我們感覺很好。

It isn't just that suddenly the business was doing well over the last couple of years, so we thought it was a good time to buy, John.

約翰，這不僅僅是因為過去幾年業務突然表現良好，所以我們認為現在是購買的好時機。

So that's that.

就是這樣。

I also want to sort of add a little bit to Anthony's earlier comment about operating margins.

我還想對安東尼之前關於營業利潤率的評論進行一些補充。

One additional point to share, when you have a business the scale that this is, which is really nice, if you think about it, right, the R&D expense doesn't linearly grow with scale.

另外要分享的一點是，當你擁有這樣的規模的企業時，這真的很好，如果你仔細想想，對吧，研發費用不會隨著規模而線性增長。

If I had -- if ShareFile had instead of 86,000 customers, they had 75,000 customers or 60,000 customers, they would still have to do the same R&D.

如果我 - 如果 ShareFile 擁有 75,000 名客戶或 60,000 名客戶，而不是 86,000 名客戶，他們仍然需要進行相同的研發。

So often as you scale up beyond a certain level, the R&D costs don't go up linearly.

通常，當規模超過一定水準時，研發成本不會線性增加。

So that's one of the reasons why we actually feel really good about our ability to

這就是為什麼我們對自己的能力感到非常滿意的原因之一

--

--

And that's just one example.

這只是一個例子。

But I think the scale gives you added benefit, the only other single product we have at Progress that is of similar scale is OpenEdge.

但我認為規模為你帶來了額外的好處，我們在 Progress 擁有的唯一具有類似規模的單一產品是 OpenEdge。

And so obviously this is a cloud offering.

顯然這是一個雲端產品。

Obviously, this is an offering in which we need to continue to invest quite aggressively to stay competitive.

顯然，我們需要繼續積極投資以保持競爭力。

So the gross margins aren't the same as an on-prem product, but we are extremely comfortable with the fact that we see line of sight to that 40% operating margin target.

因此，毛利率與本地產品不同，但我們對 40% 營業利潤率目標的預期感到非常滿意。

Well, you guys have done it every time.

嗯，你們每次都這麼做了。

So thanks for all this.

所以感謝這一切。

Thanks.

謝謝。

Thank you, John.

謝謝你，約翰。

Thank you.

謝謝。

Lucky Schreiner, D.A. Davidson.

幸運施賴納，D.A.戴維森。

Hi.

你好。

Awesome.

驚人的。

Thanks for taking my question.

感謝您提出我的問題。

I know you guys probably don't like this question.

我知道你們可能不喜歡這個問題。

But since you mentioned ShareFile and MOVEit have similar customer base.

但既然你提到 ShareFile 和 MOVEit 有著相似的客戶群。

Some of them, both use the products.

他們中的一些人都使用這些產品。

Is there a cross-sell opportunity here that you see?

您認為這裡有交叉銷售機會嗎？

Any color there would be helpful.

任何顏色都會有幫助。

So there are some common customers of MOVEit and ShareFile, Lucky, from our perspective, whenever we do these transactions and look at these acquisitions.

因此，MOVEit 和 ShareFile 有一些共同的客戶，幸運的是，從我們的角度來看，每當我們進行這些交易並查看這些收購時。

Our business model is all done based on assuming no cross-sell because we believe that cross-sell is often much, much harder than it looks on the surface.

我們的商業模式都是基於假設沒有交叉銷售的基礎上完成的，因為我們相信交叉銷售通常比表面上看起來困難得多。

We will see what happens over time.

我們將看看隨著時間的推移會發生什麼。

And, obviously, if there is an opportunity and if we do see some traction, we will share with you transparently.

而且，顯然，如果有機會並且我們確實看到了一些吸引力，我們將透明地與您分享。

But our plan at least at this point does not contemplate any cross-sell.

但我們的計劃至少在這一點上不考慮任何交叉銷售。

And it just makes it for, to be honest, a more conservative realistic plan so that we get to the targets we need to get to the way we want to.

說實話，這只是為了製定一個更保守、現實的計劃，以便我們達到我們需要的目標，以我們想要的方式實現。

Yeah.

是的。

I appreciate that.

我很欣賞這一點。

That makes sense.

這是有道理的。

Maybe then on -- any additional color you can give on the average contract length for ShareFile and maybe what the renewal process will look like here in the future?

也許接下來——您可以對 ShareFile 的平均合約長度給出任何額外的顏色，也許未來的續約過程會是什麼樣子？

Sorry, your line was a little scratchy.

抱歉，你的線條有點粗糙。

Were you asking about average contract size?

您是否詢問平均合約規模？

Average contract length, the duration of the contract for ShareFile and how renewals might trend here in the future?

ShareFile 的平均合約長度、合約期限以及未來續約趨勢如何？

Yeah.

是的。

So they have -- so they do both.

所以他們做到了——所以他們兩者都做了。

The vast majority of them are annual.

其中絕大多數是一年一度的。

And Anthony please correct if I'm wrong.

如果我錯了，安東尼請糾正。

They also have credit-card-based auto renewals of their contracts.

他們還可以透過信用卡自動續約。

Some of their billings are annual, some of their billings are monthly I believe.

我相信他們的一些帳單是每年的，有些帳單是每月的。

That's right.

這是正確的。

So it is a mix, Lucky, as to the contract length as well as the billing cycle.

幸運的是，就合約期限和計費週期而言，這是一個混合體。

But nothing is multiyear build upfront.

但沒有什麼是需要多年累積的。

So it is either built or maybe de minimus.

所以它要么是建成的，要么是微不足道的。

Got it.

知道了。

Yeah.

是的。

Okay.

好的。

So de minimus is a multiyear build upfront.

因此，最低限度是需要多年的前期建設。

So there isn't -- in terms of the kind of lumpiness you see year-over-year for our billings in our other products, you won't see that here.

因此，就您在其他產品中逐年看到的帳單的那種塊狀而言，您在這裡不會看到這種情況。

Yeah.

是的。

Perfect.

完美的。

Appreciate you taking the questions.

感謝您提出問題。

You're welcome, Lucky.

不客氣，幸運兒。

Brent Thill, Jefferies.

布倫特·希爾，杰弗里斯。

Hey, guys.

嘿，夥計們。

This is Bo on for Brent.

這是布倫特的博。

Thanks for taking the question.

感謝您提出問題。

Typically, you guys have acquired businesses in the 15% to 25% of your rev based, like that range.

通常情況下，你們收購的業務是基於您的收入的 15% 到 25%，就像這個範圍一樣。

But clearly ShareFile was much bigger.

但顯然 ShareFile 要大得多。

And so what gives you the confidence and your ability to integrate that deal in the same timeframe as previous smaller acquisitions?

那麼，是什麼讓您有信心和能力在與之前的小型收購相同的時間內整合該交易？

And should we be looking at this as an indicator that perhaps going forward the M&A pool could be beyond that 25% range?

我們是否應該將此視為一個指標，表明未來併購池可能會超出 25% 的範圍？

Thanks.

謝謝。

So Bo, good question.

所以博，好問題。

So first of all, right, you are correct that we have historically done deals that have been 15% to 25% of our size and revenue.

首先，你是對的，我們歷史上完成的交易占我們規模和收入的 15% 到 25%。

That is our sweet spot.

那是我們的甜蜜點。

But we've also said if the right opportunity comes along, we might go in smaller, we might go a little bit bigger.

但我們也說過，如果有合適的機會，我們可能會縮小規模，也可能擴大規模。

As you know, it wasn't that long ago that we were looking at a business that was not even quite 10% of our size, right, which became public because of the way because the way Irish stuff works.

如你所知，不久前我們正在尋找一家規模還不到我們 10% 的企業，對吧，它之所以上市是因為愛爾蘭的運作方式。

But -- so really, from our perspective, being about a third of our revenue is not that far off.

但是，實際上，從我們的角度來看，占我們收入的三分之一左右並不是那麼遙遠。

The integration challenge is really not on revenue, right.

整合挑戰其實並不在於收入，對吧。

When you think about it, the integration challenges around people, it's around systems, it is around processes.

仔細想想，整合挑戰圍繞著人、圍繞著系統、圍繞著流程。

That's fundamentally what is the challenge.

從根本上來說，這就是挑戰。

And when it comes to scale, the biggest scale challenge can be people.

當談到規模時，最大的規模挑戰可能是人。

So one of the things that we always look for is what is the headcount ratio between our company and the acquired business because if that is, as I like to say, it's four of us, and we're bringing in one new for every four we have, which is what approximately this is -- the ratio between ShareFile employees and Progress employees, it's about four of us to one of ShareFile.

因此，我們一直在尋找的一件事是我們公司與被收購企業之間的員工比例是多少，因為如果是這樣的話，正如我想說的，我們有四個人，並且我們每四個人就引進一名新員工我們有，大約是這樣的──ShareFile 員工和 Progress 員工之間的比例，大約是我們四個人對一個 ShareFile。

That makes it easier to sustain our culture, that makes it easier for the people to be brought on board and integrated into our organization.

這使得我們更容易維持我們的文化，也更容易讓人們加入並融入我們的組織。

It allows for much easier go-forward success.

它可以更輕鬆地取得成功。

And that's why we feel that bringing in 25% additional folks in our organization is really very doable.

這就是為什麼我們認為在我們的組織中增加 25% 的人員確實是非常可行的。

So, Bo, integration effort or integration complexity, people are always the single biggest thing to watch for.

因此，Bo，無論是整合工作量還是整合複雜性，人員始終是最需要關注的事情。

And we're really excited about bringing in the ShareFile people.

我們非常高興能夠引進 ShareFile 人員。

The people we have met have been all delightfully wonderful.

我們遇到的人都非常出色。

And I can't wait to welcome them and to welcome the ShareFile customers into the Progress family.

我迫不及待地歡迎他們並歡迎 ShareFile 客戶加入 Progress 大家庭。

Thanks for that.

謝謝你。

And maybe a quick one on international.

也許還可以快速了解國際。

It looks like EMEA was a little softer this quarter and you had some outperformance in Asia Pacific.

歐洲、中東和非洲地區本季的表現似乎有些疲軟，而亞太地區的表現則有些出色。

Just anything to call out there in terms of productivity levels from sales reps between the different regions?

不同地區銷售代表的生產力水準有什麼值得稱讚的嗎？

No, I don't think so, Bo.

不，我不這麼認為，博。

I think it was probably generally in line with what we expected.

我認為這可能總體上符合我們的預期。

I don't think anything unusual to speak of.

我不認為有什麼異常可言。

Great.

偉大的。

Thank you.

謝謝。

Thank you.

謝謝。

I'm showing no further questions in the queue at this time.

目前我在隊列中沒有顯示任何其他問題。

I would now like to turn the call back over to Mr. Yogesh Gupta for any closing remarks.

現在我想將電話轉回給 Yogesh Gupta 先生，讓他發表結束語。

Thank you, Shuri.

謝謝你，舒裡。

Thank you, everyone, for joining us for this call.

謝謝大家參加我們的這次電話會議。

We're excited about what lies ahead and we look forward to speaking with you soon.

我們對未來的發展感到興奮，並期待盡快與您交談。

Thank you very much and have a wonderful evening.

非常感謝，祝您有個美好的夜晚。

This concludes today's program.

今天的節目到此結束。

Thank you all for participating.

感謝大家的參與。

You may now disconnect.

您現在可以斷開連線。