Progress Software Corp (PRGS) 2024 Q4 法說會逐字稿

Good day, and welcome to the Progress Software Corporation Q4 2024 earnings call.

大家好，歡迎參加 Progress Software Corporation 2024 年第四季財報電話會議。

(Operator instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Mike Mickey, Senior Vice President of Investor Relations. Please go ahead.

（操作員指示）請注意，今天的會議正在錄音。現在，我想將會議交給發言人、投資者關係高級副總裁 Mike Mickey 先生。請繼續。

Thank you, Sheri. It's always great to to be in your capable hands. Thank you. Before we get started here, we're going to go over our safe harbor statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans cost initiatives. Our acquisition of share file which closed on October 31, 2024 and other information that might be considered forward-looking, such forward-looking information represents progress, software's outlook and guidance only as of today. And is subject to risks and uncertainties.

謝謝你，雪莉。能在您能幹的手中總是一件很愉快的事。謝謝。在我們開始之前，我們將先了解安全港聲明。在本次電話會議中，我們將討論對未來財務和營運績效、公司策略、產品計劃和成本舉措的展望。我們的股票收購文件於 2024 年 10 月 31 日完成，其他資訊可能被視為前瞻性訊息，此類前瞻性資訊僅代表截至今天的進展、軟體的前景和指導。並受風險和不確定性的影響。

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

對於可能影響我們結果的風險因素的描述。請參閱我們提交給證券交易委員會的文件中的風險因素。Progress 軟體不承擔更新本次電話會議中前瞻性聲明的義務。

Additionally, please note that all the financial figures referenced in 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. This document contains additional information related to our financial results for the fourth quarter and full fiscal year 2024. And I recommend that you reference it for specific details.

此外，請注意，本次電話會議中引用的所有財務數據均為非 GAAP 指標。除非另有說明，您可以在我們今天收盤後發布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較的 GAAP 數據的對帳表。本文檔包含與我們 2024 財年第四季和全年財務表現相關的附加資訊。我建議您參考它來了解具體細節。

We've also provided a presentation that contains supplemental data for our fourth quarter and full fiscal year 2024 results provides highlights and additional financial and provides highlights and additional financial metrics. Both the earnings release and the supplemental presentation are all available on the investor relations section of our website at investors.progress.com.

我們還提供了一份演示文稿，其中包含我們第四季度和 2024 財年全年業績的補充數據，提供了亮點和額外的財務指標。收益報告和補充報告均可在我們網站 investors.progress.com 的投資者關係部分找到。

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.

今天的電話會議將完整錄音，並可在我們網站的投資者關係部分重播。我們完成後不久。

With that. I'll turn it over to Yogesh.

就這樣。我將把它交給 Yogesh。

Thank you, Mike. Good afternoon everyone. And thank you for joining our Q4 2024 financial results conference call. Fiscal '24 was another outstanding year for profits, as you can see from our published results. We registered another strong performance in Q4, marked by continued demand across our product portfolio, especially for our data platform products, MarkLogic, OpenEdge and DataDirect and our AI OPS Network Management Products.

謝謝你，麥克。大家下午好。感謝您參加我們的 2024 年第四季財務業績電話會議。從我們公佈的業績可以看出，24財年又是利潤豐厚的一年。我們在第四季度再次取得了強勁的業績，標誌著我們整個產品組合的需求持續成長，尤其是我們的數據平台產品、MarkLogic、OpenEdge 和 DataDirect 以及我們的 AI OPS 網路管理產品。

Our Data platform products are the foundation for mission-critical applications at over 100,000 businesses, and we are living in a world where business data is increasingly important for responsible AI applications.

我們的資料平台產品是超過 100,000 家企業關鍵任務應用程式的基礎，在我們生活的世界裡，業務資料對於負責任的 AI 應用程式越來越重要。

We exceeded the high end of guidance on earnings and free cash flow, and ARR grew by 46% in constant currency. Our net retention rates came in above 100%, which holds true even when you completely exclude ShareFile from our results. We generated $238 million in unlevered free cash flow on revenues of $753 million, close to the high end guidance of $755 million.

我們的獲利和自由現金流超出了預期上限，ARR 按固定匯率計算增加了 46%。我們的淨保留率超過了 100%，即使將 ShareFile 完全排除在我們的結果之外，這一結果仍然成立。我們在 7.53 億美元的營收中產生了 2.38 億美元的無槓桿自由現金流，接近 7.55 億美元的最高預期。

As a reminder, ShareFile contributed only one month of revenues in Q4. Our strong top line performance, coupled with excellence expense management led to the significant outperformance in earnings and free cash flow.

提醒一下，ShareFile 在第四季度僅貢獻了一個月的收入。我們強勁的營收表現，加上卓越的費用管理，使得獲利和自由現金流大幅上漲。

I'm extremely proud of our team for their dedication and their relentless commitment to excellence. Anthony will go through our excellent results in more detail and provide FY25 guidance shortly.

我為我們團隊的奉獻精神和對卓越的不懈追求感到非常自豪。安東尼將更詳細地介紹我們的優異成績，並很快提供 FY25 指導。

But in the meantime, I'd like to share some highlights of FY24. As you might recall, we received good news in August from the SEC, which concluded its investigation into the MOVEit vulnerability with no actions recommended. Earlier in the year, several international data privacy regulators also closed their investigations without action.

但同時，我想分享24財年的一些亮點。您可能還記得，我們​​在八月收到了來自美國證券交易委員會的好消息，該委員會結束了對 MOVEit 漏洞的調查，但未提出任何行動建議。今年早些時候，幾家國際資料隱私監管機構也沒有採取任何行動，就結束了調查。

We are heartened by these conformations that Progress did the right thing in addressing the attack on MOVEit and are happy to focus on the business of our business. The biggest highlight of the year, of course, was that we closed the acquisition of ShareFile on October 31, and we've had an excellent start to our integration.

這些確認讓我們感到振奮，證明 Progress 在應對 MOVEit 攻擊方面做出了正確的舉措，我們也很高興能夠專注於我們的業務。當然，今年最大的亮點是我們在 10 月 31 日完成了對 ShareFile 的收購，我們的整合工作有了一個很好的開始。

Because ShareFile was a carve-out and not a stand-alone in the company, you will recall that we are operating under a transition services agreement with Cloud Software Group or CSG. We're working diligently towards ending our reliance on the congestion services from CSG in a rapid and timely manner. We've already completed or are well into some of the more immediate synergies such as eliminating duplicate infrastructure transitioning ShareFile employees to our collaboration and HR systems, working with customers and partners to ensure a smooth transition and all the other activities we customarily initiate upon closing.

由於 ShareFile 是公司分拆出來的部分，而不是獨立的部分，您會記得，我們​​是根據與雲端軟體集團 (Cloud Software Group) 或 CSG 簽訂的過渡服務協議開展運營的。我們正在努力快速及時地擺脫對 CSG 擁塞服務的依賴。我們已經完成或正在進入一些更直接的協同效應，例如消除重複的基礎設施，將ShareFile 員工過渡到我們的協作和人力資源系統，與客戶和合作夥伴合作以確保平穩過渡，以及我們在交易結束後通常啟動的所有其他活動。

While it's still very early, the integration is on track and we expect to complete the full integration of ShareFile within the 12-month time frame we provided when we announced our Q3 results. And as we indicated when we announced the deal, we believe our 40% threshold for operating margins for the acquired business is attainable by the end of FY25.

雖然還處於早期階段，但整合工作正在按計劃進行，我們預計將在宣布第三季業績時規定的 12 個月期限內完成 ShareFile 的全面整合。正如我們在宣布交易時所指出的那樣，我們相信到 25 財年末，收購業務的營業利潤率可以達到 40% 的門檻。

We expect ShareFile to add about $250 million to the top line in FY25, which will be 100% SaaS recurring revenue. This meaningfully increases the percentage of Progress's total SaaS revenue getting it close to 30%. It also adds excellent stability and visibility to our top line by significantly raising the share of recurring revenue to well over 85% of our overall revenue. Anthony will have more on this.

我們預計 ShareFile 將在 25 財年增加約 2.5 億美元的營收，其中 100% 為 SaaS 經常性收入。這顯著提高了 Progress 總 SaaS 收入的百分比，使其接近 30%。透過將經常性收入的份額大幅提高到總收入的 85% 以上，它還為我們的營收增加了出色的穩定性和可見性。安東尼將會對此進行更多報道。

Perhaps more importantly, ShareFile is a native SaaS platform with gross margins in excess of 80% and will benefit our own SaaS journey. ShareFile's proven at scale SaaS platform, combined with the expertise of the technologists that joined us with this acquisition provides us the foundation to accelerate our own SaaS product deliveries.

或許更重要的是，ShareFile 是一個原生的 SaaS 平台，毛利率超過 80%，將有利於我們自己的 SaaS 之旅。ShareFile 經過驗證的大規模 SaaS 平台，加上透過此次收購加入我們的技術人員的專業知識，為我們加速自己的 SaaS 產品交付奠定了基礎。

It will also make it easier for us to integrate any additional SaaS companies that we may acquire in the future. Once more with this demonstrable proof point of evaluating, buying and integrating a large SaaS business into our company the universe of potential acquisition now extends to include other SaaS businesses as well.

這也將使我們更容易整合未來可能收購的任何其他 SaaS 公司。再次，透過評估、購買和將大型 SaaS 業務整合到我們公司這一可證明的證據點，潛在收購的範圍現在也擴展到包括其他 SaaS 業務。

Our approach to M&A, which is one of the three pillars of our total growth strategy continues to be disciplined. Our M&A discipline is simple apply great businesses at the right place, integrate rapidly and have a laser-like focus on improving customer retention. Let me define what we mean by great businesses.

作為我們整體成長策略的三大支柱之一，我們的併購方式依然是嚴謹的。我們的併購原則很簡單：在正確的地方應用優秀的業務，迅速整合，並全神貫注於提高客戶保留率。讓我來定義一下什麼是偉大的企業。

A great business to us is one with exceptional products that have future relevance, an impressive customer base that loves those products and relies heavily on them to run their business and has excellent talented employees and a culture that fit well with RO. Acquiring such businesses strengthens Progress today and will keep us relevant well into the future.

對我們來說，偉大的企業是擁有與未來息息相關的卓越產品、擁有喜愛這些產品並高度依賴這些產品來經營業務的令人印象深刻的客戶群、擁有優秀人才的員工以及與RO 非常契合的企業文化的企業。收購這類企業不僅能增強 Progress 目前的實力，也能讓我們在未來保持競爭力。

For example, ShareFile has made us a meaningful provider in the DevSecOps market as the shift left to continues to gain momentum. Ipswitch and Kemp brought us observability and AIOps capabilities while MarkLogic has enabled us to enter the Gen AI application market with a business-centric reliable and secure offering.

例如，隨著向左轉變的勢頭持續增強，ShareFile 已使我們成為 DevSecOps 市場中具有重要意義的提供者。Ipswitch 和 Kemp 為我們帶來了可觀察性和 AIOps 功能，而 MarkLogic 則使我們能夠以業務為中心的可靠、安全的產品進入 Gen AI 應用市場。

And our latest acquisition, ShareFile, is an at-scale SaaS AI-powered platform for content center collaboration. All these modern offerings enable us to address a broader set of our customers' needs. And the skills in equities brought to progress by the employees of these acquired companies accelerate the technological evolutions of all our products.

我們最新收購的 ShareFile 是一個用於內容中心協作的大規模 SaaS AI 驅動平台。所有這些現代化的產品使我們能夠滿足更廣泛的客戶需求。這些被收購公司的員工所帶來的股權技能加速了我們所有產品的技術革新。

Importantly, our acquisitions have also broadened our go-to-market channels. Ipswitch and Kemp with their respective two-tier channels, ShareFile with open source and MarkLogic with US federal government contractors.

重要的是，我們的收購也拓寬了我們的市場通路。Ipswitch 和 Kemp 與其各自的雙層頻道、ShareFile 與開源以及 MarkLogic 與美國聯邦政府承包商合作。

And ShareFile at scale and ShareFile's XScale high-velocity sales model significantly complements our role. These channels, combined with our existing enterprise and ISC and OEM go-to-market strength, enable us to efficiently serve large and small businesses around the world.

而且 ShareFile 的規模和 XScale 高速銷售模式大大補充了我們的角色。這些管道加上我們現有的企業、ISC 和 OEM 市場進入實力，使我們能夠有效地為世界各地的大大小小的企業提供服務。

Acquiring such excellent businesses for the right price, requires us to be patient and disciplined, which we have demonstrated in each of the five acquisitions completed to date, as well as in all the deals we have walked away from. We will continue our track record of such discipline and patience when it comes to doing deals.

以合適的價格收購如此優秀的企業，需要我們必須保持耐心和紀律，這一點我們在迄今為止完成的五次收購以及我們放棄的所有交易中都得到了體現。在進行交易時，我們將繼續保持這種紀律和耐心。

The other two equally important pillars in our total growth strategy are to innovate and to focus on customer success. We invest in innovation to ensure that our products both market efforts, people and systems continue to deliver increasing value to our customers. In FY24, we delivered several innovative solutions within our product portfolio that enable our customers to develop, deploy and manage responsible AI-powered applications and digital experiences.

我們整體成長策略中的另外兩個同樣重要的支柱是創新和專注於客戶成功。我們投資創新，以確保我們的產品、市場努力、人員和系統能夠持續為我們的客戶提供越來越高的價值。在 24 財年，我們在產品組合中提供了多種創新解決方案，使我們的客戶能夠開發、部署和管理負責任的人工智慧應用和數位體驗。

For example, our data platform products, MarkLogic and Semaphore now use retrieval automated generational -- retrieval augmented generation and vector capabilities to enable our customers to securely leverage proprietary data and content to augment the Gen AI capabilities of large language models.

例如，我們的資料平台產品 MarkLogic 和 Semaphore 現在使用檢索自動產生——檢索增強生成和向量功能，使我們的客戶能夠安全地利用專有資料和內容來增強大型語言模型的 Gen AI 功能。

This leads to accurate and contextually relevant Gen AI responses based on a business own proprietary data, and these responses are supplemented with traceability and links to the original source material so that users can easily verify the results. Businesses need such accuracy, reliability and variability to use GenAI effectively and confidently, which is why a large US government agency that serves tens of millions of citizens recently decided to extend their use of our data platform with its new capabilities to meet their GenAI needs.

這將基於企業自己的專有數據產生準確且上下文相關的 Gen AI 響應，並且這些響應還具有可追溯性和與原始源材料的鏈接，以便用戶可以輕鬆驗證結果。企業需要這樣的準確性、可靠性和可變性才能有效和自信地使用GenAI，這就是為什麼為數千萬公民服務的美國大型政府機構最近決定利用我們的數據平台的新功能來擴展其使用範圍，以滿足他們的GenAI 需求。

In another example, our digital experience products now leverage AI to simplify the job of marketers by automating content creation and personalization, enabling conversion rate optimizations. And our UI Developer Tools are AI-powered -- easy for developers to embed Gen AI applications and deliver AI-powered experiences to end users.

另一個例子是，我們的數位體驗產品現在利用人工智慧來簡化行銷人員的工作，透過自動化內容創建和個人化，實現轉換率優化。我們的 UI 開發工具由人工智慧驅動——開發人員可以輕鬆嵌入 Gen AI 應用程式並為最終用戶提供由人工智慧驅動的體驗。

Our core infrastructure management products have always incorporated some level of AI in their architecture. But we are now leveraging advanced AI technology to make our products even more productive and easier to use, and enhance their predictive analytics capabilities.

我們的核心基礎設施管理產品在其架構中始終融入一定程度的人工智慧。但我們現在正在利用先進的人工智慧技術，使我們的產品更有效率、更易於使用，並增強其預測分析能力。

For example, in '24, we launched Flowmon with AdvanceAI-powered threat detection that distilled thousands of network events into specific actionable intelligence drastically reducing the time and effort spent by cybersecurity experts to pinpoint threat.

例如，在 24 年，我們推出了採用 AdvanceAI 驅動的威脅偵測功能的 Flowmon，它將數千個網路事件提煉為特定的可操作情報，大大減少了網路安全專家找出威脅所花費的時間和精力。

Our ShareFile acquisition also brings new AI capabilities to our portfolio, which include Automated Document Summarization and Automated Guidance on user workflows. It also leverages AI to protect sensitive information. For example, if a user tries to share a document that contains sensitive information, ShareFile's AI-powered security detects the sensitive information alerts the user and suggests more secure ways for the user to share their document within their workflow. In addition to innovation, we also have an unrelenting focus on customer success to ensure that they stay with us, which leads to a high net retention rates.

我們對 ShareFile 的收購也為我們的產品組合帶來了新的 AI 功能，其中包括自動文件摘要和使用者工作流程的自動指導。它還利用人工智慧來保護敏感資訊。例如，如果使用者嘗試共用包含敏感資訊的文檔，ShareFile 的人工智慧安全功能會偵測到敏感資訊並向使用者發出警報，並為使用者建議在工作流程中以更安全的方式共用文件。除了創新之外，我們還堅持不懈地專注於客戶的成功，以確保他們繼續與我們合作，從而實現較高的淨留存率。

It is this focus on customer success that resulted in a net retention rate in FY24 of over 100% despite, as you might recall, a few large customers turning in late '23 and early FY24. Keeping our customers happy and NRR high, also enables us to be efficient with our sales and marketing efforts and allows us to continue to deliver high operating margins and generate cash.

正是這種對客戶成功的關注，使得 24 財年的淨留存率超過 100%，儘管您可能還記得，一些大客戶在 23 年底和 24 財年初轉向。讓客戶滿意並保持較高的 NRR，也使我們能夠有效率地進行銷售和行銷工作，並使我們能夠繼續提供高營業利潤率並產生現金。

Speaking of cash, I'd like to briefly talk about our capital allocation strategy as a reminder, we strengthened our balance sheet in Q2 of 2024 when we issued a new $450 million convertible bond and consolidated our prior credit facilities, ending up with a single $900 million revolving facility. We used $730 million of that credit facility to finance the ShareFile deal, with our strong recurring revenues and cash generation, we expect to pay down our outstanding debt quickly and prepare for our next acquisition.

說到現金，我想簡單談談我們的資本配置策略。負債表，最終只剩下一個9億美元的循環信用額度。我們利用其中 7.3 億美元的信貸額度為 ShareFile 交易提供資金，憑藉我們強勁的經常性收入和現金創造能力，我們預計將迅速償還未償債務並為下一次收購做好準備。

Our goal is to allocate capital in the most effective and efficient way to create greater shareholder value over time. And we want to consistently generate a return on invested capital that exceeds our cost of capital.

我們的目標是以最有效、最有效率的方式分配資本，以便隨著時間的推移創造更大的股東價值。我們希望持續獲得超過資本成本的投資回報。

I want to reiterate what we said in our Q3 earnings call. Our corporate development efforts are ongoing. We continue to look for great businesses. And if the right one comes along at the right price, we will not hesitate to act. We are confident that we can integrate more than one acquisition in parallel.

我想重申我們在第三季財報電話會議上所說的話。我們的企業發展努力正在進行中。我們將繼續尋找優秀的企業。如果有合適的選擇，而且價格合適，我們會毫不猶豫地採取行動。我們有信心可以同時整合多個收購。

Lastly, as a final highlight of the year, we continue to make progress to even better place to work for our employees. In addition to the numerous awards Progress earned for our exceptional work related to the environment and to employee culture, we were again selected a Best Place to Work by Boston Globe and the Boston Business Journal. These awards reflect the strength and engagement of our employees, which is a key to our success.

最後，作為今年的最後一個亮點，我們繼續努力為員工提供更好的工作場所。除了在環境和員工文化方面所做的出色工作而贏得的眾多獎項之外，我們還再次被《波士頓環球報》和《波士頓商業雜誌》評選為「最佳工作場所」。這些獎項體現了我們員工的實力和參與度，這是我們成功的關鍵。

Our low employee turnover and our outstanding employee Net Promoter Scores, continue to show that we are one of the best technology companies to work for. We have good people who get better at what they do to each year, and we benefit from their expertise, experience and institutional knowledge. Because of this low turnover, we have a significantly lower hiring and training expenses. We strongly believe that having highly talented and engaged employees is one of our strategic differentiators, and a competitive advantage in an industry where high turnover is the norm.

我們較低的員工流動率和出色的員工淨推薦值繼續表明，我們是最好的科技公司之一。我們擁有優秀的人才，他們的工作每年都在進步，他們的專業知識、經驗和機構知識讓我們受益匪淺。由於人員流動率低，我們的招募和培訓費用明顯降低。我們堅信，擁有高素質和敬業度的員工是我們的策略優勢之一，也是在高流動率的產業中的競爭優勢。

I can't thank the progress deep enough for their commitment to our success and for their hard work. So to wrap up, we are thrilled with our execution in FY24 and excited about FY25. Just a few weeks ago, we got our field organization off to a quick start to FY25. We held our global kickoff in early December, where more than 500 people gathered in person to learn about our new offerings to sales place and their targets.

我對他們為了我們成功所做的貢獻以及他們的辛勤工作深表感謝。總而言之，我們對 24 財年的執行感到非常興奮，並對 25 財年的執行感到興奮。就在幾週前，我們現場組織迅速啟動了 FY25 工作。我們於 12 月初舉行了全球啟動儀式，超過 500 人齊聚一堂，親自了解我們向銷售場所提供的新產品及其目標。

The team has returned energized and ready to hit the ground-line. In FY25, we expect continued solid demand for our products to drive meaningful ARR growth. We also expect continued improvement in the ShareFile operating margin throughout the year, resulting in significant growth in the unlevered free cash flow, which we will use to aggressively pay down debt while we look for the next business to acquire.

隊伍已恢復精力並準備向地面進攻。在 25 財年，我們預計我們產品的需求將繼續保持強勁，從而推動 ARR 實現有意義的成長。我們也預期 ShareFile 全年的營業利潤率將持續提高，從而實現無槓桿自由現金流的大幅成長，我們將利用這筆錢積極償還債務，同時尋找下一個收購對象。

Let me now turn it over to Anthony to provide additional details around our results and guidance. Anthony?

現在，讓我將主題交給安東尼，讓他提供有關我們的結果和指導的更多詳細資訊。安東尼？

Thanks Yogesh. Good afternoon, everyone and thank you for joining our call. As Yogesh mentioned, our fourth quarter results were strong across every metric and we're thrilled to deliver such a solid close to the year. I'll start by mentioning the close of our acquisition of share file at the end of October, which means we've got a one month contribution from share file included in our 2024 fiscal fourth quarter and full year results. Please keep that in mind as we run through the numbers.

謝謝 Yogesh。大家下午好，感謝大家參加我們的電話會議。正如 Yogesh 所說，我們第四季的業績在各個指標上都表現強勁，我們很高興能夠以如此堅實的成績結束這一年。首先要說的是，我們在 10 月底完成了股票文件的收購，這意味著我們在 2024 財年第四季和全年業績中包含了來自股票文件的一個月的貢獻。當我們計算這些數字時，請記住這一點。

And speaking of the numbers, let's start with ARR which we believe provides the best view into our top line performance. We closed Q4 with ARR of $842 million which represents approximately 46% growth on a year-over-year basis and almost 4% pro forma growth on a year over year basis. For clarity, the proforma results include share files, ARR in both periods.

說到數字，讓我們從 ARR 開始，我們認為它最能體現我們的營收表現。我們第四季的 ARR 為 8.42 億美元，較上年同期成長約 46%，較上年同期成長近 4%。為了清楚起見，預測結果包括兩個期間的股票文件和 ARR。

Our growth in ARR was driven by multiple products including ShareFile, OpenEdge, our DevTools products, Loadmaster and Sitefinity. Also, as mentioned on previous calls, our net retention rate continued its upward move again in the fourth quarter, and we closed the year with a net retention rate of over 100%.

我們的 ARR 成長受到多種產品推動，包括 ShareFile、OpenEdge、我們的 DevTools 產品、Loadmaster 和 Sitefinity。此外，正如先前的電話會議中所提到的，我們的淨留存率在第四季度再次繼續上升，並以超過 100% 的淨留存率結束了這一年度。

And as Yogesh mentioned in his remarks, our net retention rate is over 100%. If you completely exclude ShareFile's results, and it's also over 100%, when ShareFile's results are included in all periods. In addition to growth in ARR and an increasing net retention rate, revenue for the quarter of $250 million was very close to the high end of the Q4 guidance range we provided back in September and represents approximately 21% growth on a year-over-year basis.

正如 Yogesh 在評論中提到的，我們的淨留存率超過 100%。如果完全排除 ShareFile 的結果，當所有期間都包含 ShareFile 的結果時，它也會超過 100%。除了 ARR 成長和淨留存率上升外，本季 2.5 億美元的收入非常接近我們 9 月提供的第四季度指導範圍的高端，同比增長約 21%。

Our strong revenue performance in the quarter includes a $21 million contribution from ShareFile, coupled with growth in other products, including OpenEdge, DataDirect MarkLogic, and our DevTools products, all of which performed better than our internal expectations. For the full year, our revenue of $753 million grew $55 million or 8% over the prior year. This growth was driven by the top line contributions of MarkLogic and ShareFile, combined with growth in other products, most notably, OpenEdge and our DevTools products.

我們本季強勁的營收表現包括來自 ShareFile 的 2,100 萬美元貢獻，以及 OpenEdge、DataDirect MarkLogic 和我們的 DevTools 產品等其他產品的成長，所有這些產品的表現都優於我們的內部預期。全年來看，我們的營收為 7.53 億美元，較上年成長 5,500 萬美元，增幅 8%。這項成長主要得益於 MarkLogic 和 ShareFile 的營收貢獻，以及其他產品的成長，尤其是 OpenEdge 和我們的 DevTools 產品。

With customer retention rates improving throughout 2024 and a consistent demand environment fueling growth for our products, we're thrilled with our top line performance for the year. Turning now to expenses. Our total costs and operating expenses were $135 million for the quarter, up 17% over the year ago quarter and $455 million for the full year, up 6% compared to fiscal 2023.

隨著 2024 年客戶保留率的提高以及持續的需求環境推動我們產品的成長，我們對今年的營收表現感到非常滿意。現在談談費用。本季我們的總成本和營運費用為 1.35 億美元，較去年同期成長 17%，全年總成本和營運費用為 4.55 億美元，較 2023 財年成長 6%。

The year-over-year increase in expense for the quarter was driven by the acquisition of ShareFile, and the increase in our full year expense was driven almost entirely by the inclusion of a full year of activity for MarkLogic and the aforementioned acquisition of ShareFile.

本季費用的年增率是由於收購 ShareFile 所致，而全年費用的成長幾乎完全是由於 MarkLogic 全年的活動以及前面提到的收購 ShareFile 所致。

Operating income for the quarter was $81 million for an operating margin of 37%, handily exceeding our internal expectations. This better-than-expected operating performance was the result of overperforming on the top line while managing our expenses to plan. On the bottom line, our earnings per share of $1.33 for the quarter were $0.08 above the high end of our guidance range. This overperformance relative to expectations was again driven by strong top line performance, coupled with solid cost management across the business.

本季營業收入為 8,100 萬美元，營業利潤率為 37%，輕鬆超出我們的內部預期。這比預期的營運表現好是我們超額完成營收目標並按計畫管理費用的結果。總體而言，本季我們的每股收益為 1.33 美元，比我們的預期範圍上限高出 0.08 美元。超越預期的表現再次得益於強勁的營收表現，以及整個業務穩健的成本管理。

All right. Turning now to a few balance sheet and cash flow metrics. Let me start with a few details on the acquisition of ShareFile. The acquisition was an asset purchase, whereby certain assets and liabilities were acquired for a base purchase price of $875 million, and it was subject to a $25 million working capital credit. This working capital credit was negotiated to compensate for the fact that ShareFile accounts receivable were not acquired.

好的。現在來看看一些資產負債表和現金流量指標。首先，我介紹一下收購 ShareFile 的一些細節。此次收購為一項資產購買，以 8.75 億美元的基本購買價收購部分資產和負債，並需獲得 2,500 萬美元的營運資金信貸。這筆營運資金信貸是為了彌補未能獲得 ShareFile 應收帳款的事實而協商的。

While the credit results in a net purchase price of $850 million, Progress won't collect any of share files accounts receivable from the acquisition close date.

雖然該信貸導致淨收購價達到 8.5 億美元，但 Progress 公司自收購結束之日起不會收取任何股票應收帳款。

So said simply, we swapped some future cash inflows for an equivalent purchase price reduction. To fund the purchase, we used a combination of cash and debt, drawing $730 million from our existing revolving line of credit, which has a variable interest rate currently running at approximately 6.6%.

簡單地說，我們用一些未來現金流入來換取等量的購買價格降低。為了資助此次收購，我們採用了現金和債務相結合的方式，從我們現有的循環信用額度中提取了 7.3 億美元，該額度的浮動利率目前約為 6.6%。

As we've previously mentioned, we intend to begin aggressively paying down debt in the first half of 2025. After closing the acquisition, we ended the year with cash and cash equivalents of $118 million and debt of $1.54 billion for a net debt position of $1.42 billion. We expect to complete the integration of ShareFile in 2025, and in doing so, we expect to realize meaningful synergies throughout the year.

正如我們之前提到的，我們打算在 2025 年上半年開始積極償還債務。完成收購後，我們年底的現金和現金等價物為 1.18 億美元，債務為 15.4 億美元，淨債務為 14.2 億美元。我們預計將在 2025 年完成 ShareFile 的整合，並期望在此過程中全年實現有意義的協同效應。

On a post-synergy basis, we expect our net leverage ratio to be approximately 3.5 times. DSO for the quarter was 67 days, up five days compared to the year ago quarter and deferred revenue was $404 million at the end of the fourth quarter, up approximately $119 million on a sequential basis, reflecting our strong top line performance in the fourth quarter, coupled with the addition of $96 million in deferred revenue from the ShareFile acquisition.

在綜效之後，我們預期淨槓桿率約為3.5倍。本季的 DSO 為 67 天，比去年同期增加了 5 天，第四季末的遞延收入為 4.04 億美元，比上一季增加約 1.19 億美元，反映了我們第四季強勁的營收表現，再加上收購ShareFile 帶來的9,600 萬美元遞延收入。

Adjusted free cash flow was $18 million for the quarter, bringing our annual total to $212 million, an increase of 21% over prior year. During the fourth quarter, we did not repurchase any Progress stock. Our annual repurchase total for fiscal 2024 and was $87 million at an average price of less than $53 per share. And we ended our fiscal year with $107 million remaining under our current share repurchase authorization.

本季調整後的自由現金流為 1,800 萬美元，使我們的年度總額達到 2.12 億美元，比上年增長 21%。在第四季度，我們沒有回購任何 Progress 股票。我們 2024 財年的年度回購總額為 8,700 萬美元，平均價格不到每股 53 美元。我們財政年度結束時，現有股票回購授權餘額為 1.07 億美元。

Okay. Now turning to our outlook. When considering our outlook, it is important to keep in the following. First, ShareFile's revenue model is entirely SaaS, and the acquisition will increase our recurring revenue mix to approximately 87%. So consistent with our message last year, we are going to continue to focus on ARR as a key metric, and we expect ARR will continue to grow in fiscal 2025 in the low single digits.

好的。現在來談談我們的展望。當考慮我們的觀點時，牢記以下幾點很重要。首先，ShareFile 的營收模式完全是 SaaS，這筆收購將使我們的經常性收入結構增加至約 87%。因此，與我們去年的信息一致，我們將繼續關注 ARR 作為關鍵指標，我們預計 ARR 在 2025 財年將繼續以個位數低速成長。

Second, absent any acquisitions, we expect to aggressively repay the revolving line of credit that was used to partially finance the ShareFile acquisition. We've modeled $150 million in repayments during fiscal year 2025. As a result of this, our 2025 interest expense will increase meaningfully compared to 2024, and it will be further affected by the amount and timing of our 2025 repayments. These changes have the potential to distort the comparability of earnings per share and free cash flow in both prior and future periods.

其次，如果沒有任何收購，我們預計將積極償還部分融資 ShareFile 收購的循環信用額度。我們預計2025財年的還款金額將達到1.5億美元。因此，我們 2025 年的利息支出將較 2024 年大幅增加，也將受到 2025 年還款金額和時間的進一步影響。這些變化可能會扭曲前期和未來每股盈餘和自由現金流的可比性。

As a result, we will provide unlevered free cash flow as a key metric to assist with year-over-year comparisons. Finally, when calculating our fiscal 2025 earnings per share, we've considered dilution from our 2026 convertible notes because our share price is well above the conversion price.

因此，我們將提供無槓桿自由現金流作為關鍵指標，以協助進行同比比較。最後，在計算 2025 財年每股收益時，我們考慮了 2026 年可轉換票據的稀釋，因為我們的股價遠高於轉換價格。

Though we did purchase a call spread that covers the economic impact of dilution up to approximately $89 per share. The accounting regulations do not allow us to recognize any benefit from the call spread when calculating our shares outstanding. Because of this added nuance, we will provide you with the number of shares that we've assumed for dilution each time we provide an outlook for EPS.

不過，我們確實購買了涵蓋稀釋的經濟影響的看漲價差，最高可達每股約 89 美元。會計法規不允許我們在計算流通股數時確認看漲價差帶來的任何收益。由於這種額外的細微差別，每次我們提供每股收益展望時，我們都會向您提供我們假設稀釋的股份數量。

All right. With all that said, for the first quarter of 2025, we expect revenue between $232 million and $238 million and earnings per share of between $1.02 and $1.08. And for the full year 2025, we expect revenue of between $958 million and $970 million, representing between 27% and 29% growth over 2024. We anticipate an operating margin for the year of 37% to 38%. We are projecting adjusted free cash flow of between $225 million and $237 million, and we're projecting unlevered free cash flow of between $282 million and $294 million.

好的。綜上所述，我們預計 2025 年第一季的營收將在 2.32 億至 2.38 億美元之間，每股收益在 1.02 美元至 1.08 美元之間。我們預計 2025 年全年營收將在 9.58 億美元至 9.7 億美元之間，比 2024 年成長 27% 至 29%。我們預計今年的營業利潤率為 37% 至 38%。我們預計調整後的自由現金流在 2.25 億美元至 2.37 億美元之間，而我們預計無槓桿自由現金流將在 2.82 億美元至 2.94 億美元之間。

We expect earnings per share to be between $5 and $5.12. Our guidance for the full year EPS assumes a tax rate of 20%, the repurchase of $80 million in progress shares and approximately 46 million shares outstanding, which includes 1.4 million shares associated with dilution on our 2026 convertible notes.

我們預計每股收益在 5 美元至 5.12 美元之間。我們對全年每股盈餘的指導假設稅率為 20%，回購價值 8,000 萬美元的進步股份和約 4,600 萬股流通股，其中包括與 2026 年可轉換票據稀釋相關的 140 萬股。

In closing, we're excited to deliver a great result for fiscal 2024. We're thrilled with the ShareFile acquisition and our delivery against some early integration milestones, and we think we're well positioned for 2025 and beyond.

最後，我們很高興能夠在 2024 財年取得優異的業績。我們對收購 ShareFile 以及實現一些早期整合里程碑感到非常興奮，我們認為我們已經為 2025 年及以後的發展做好了準備。

With that, I'd like to open the call up for questions.

現在，我想開始回答大家的提問。

Thank you. (Operator Instructions)

謝謝。（操作員指令）

Fatima Boolani, Citi.

花旗銀行的 Fatima Boolani。

Good afternoon. Thank you for taking my questions and a belated Happy New year to you. Yogesh, I wanted to focus my first question on channel to you with regards to the performance in the entire organic side of the business. You saw a ton of momentum in your flagship solution like OpenEdge, DataDirect and now MarkLogic. And so I wanted to really unearth what is driving some of that almost revitalization in organic demand performance? And if you can maybe help us bifurcate that by end markets, if you're seeing any differences by way of geography and/or end market and even from a distribution perspective? And then I have a quick follow-up as well, please. Thank you.

午安.感謝您回答我的問題，並祝您新年快樂。Yogesh，我想就整個業務有機方面的表現向您提出第一個問題。您在旗艦解決方案（如 OpenEdge、DataDirect 以及現在的 MarkLogic）中看到了巨大的發展勢頭。因此，我想真正挖掘出推動有機需求表現幾乎復甦的因素是什麼？您是否可以幫助我們按終端市場進行分類，您是否發現地理和/或終端市場甚至分銷角度有任何差異？然後我還想快速跟進。謝謝。

Thank you, Fatima a happy New Year to you as well. So the three businesses, as you know, they are to be honest, relatively lumpy businesses, just to be upfront, we all know that these are these are businesses with large enterprises and large OEM deals in the case of DataDirect, large ISV customers in the case of OpenEdge and MarkLogic is a large enterprise solution as well. So what drove these?

謝謝你，法蒂瑪，也祝你新年快樂。因此，如您所知，這三項業務是相對分散的業務，坦白說，我們都知道，這些業務都是與大型企業和大型 OEM 交易相關的業務，就 DataDirect 而言，是大型 ISV 客戶。 OpenEdge 和MarkLogic 的案例也是一個大型企業解決方案。那麼，是什麼導致了這些呢？

So the business -- first of all, from a global perspective, we saw strength across the globe. There wasn't really whether North America did better than Europe. Most of these products are primarily North America and Europe, where their footprint is, even though we do have customers in Latin America and APJ for these products. I think the whole importance of data is becoming critical to businesses. These products are the data.

因此，首先，從全球角度來看，我們看到了全球的實力。事實上，北美是否比歐洲表現更好並無定論。儘管我們在拉丁美洲和亞太及日本地區也有這些產品的客戶，但這些產品的主要市場還是北美和歐洲。我認為數據的重要性對企業來說正變得越來越關鍵。這些產品就是數據。

This is where mission-critical data either sits in the case of OpenEdge, and MarkLogic or it is connected to using DataDirect. So I think that the whole -- I think the data movement is an important part of this. It's kind of interesting to see. But as I said, this is a lumpy business. And Anthony, if you like to add something to this?

這就是關鍵任務資料在 OpenEdge 和 MarkLogic 中的位置，或是使用 DataDirect 進行連線的位置。所以我認為整個——我認為數據移動是其中的重要部分。看起來挺有趣的。但正如我所說，這是一項不穩定的業務。安東尼，您還想補充一點什麼嗎？

Yeah. No, I agree with all that. Yogesh. I think, there continue to be more and more opportunities to leverage the AI aspects of our platform in our install base. And I think that's another element that I think is at least bolstering a lot of our Upsell and giving us a lot more opportunity. So it just felt like a strong quarter, across geographies, across channels and across a good number of products.

是的。不，我全部同意。尤格甚。我認為，在我們的安裝基礎中，利用我們平台的人工智慧方面的機會將會越來越多。我認為這是另一個因素，它至少可以增強我們的追加銷售並為我們帶來更多機會。因此，無論在地理、通路或產品數量上，這似乎都是一個強勁的季度。

Appreciate that. And Anthony, just as a direct consequence of the increased criticality of your core solutions, how are you thinking about the investment on both specifically around core product and especially because historically, you have done a pretty good job of maybe siloing some of your products, so very surgically focusing on attention rate, but just wondering how you're thinking about incremental investment on the organic solutions to help power more upsell potentially more cross-sell to really have the net retention rate break out into new territory? And that's it for me. Thank you.

非常感謝。安東尼，由於核心解決方案的重要性日益增加，您如何看待對核心產品的投資？但只是想知道您如何考慮對有機解決方案的增量投資，以幫助推動更多的追加銷售，潛在的更多交叉銷售，從而真正使淨留存率突破到新的領域？對我來說這就是全部了。謝謝。

Yes. Thank you, Fatima. I would say we're not -- there's not going to be a material change in our investment envelope. A lot of -- as Yogesh mentioned, we've got a lot of AI capabilities in some of our products and have historically, and a lot of that has been enhanced with the budget envelope that we have. And then through acquisition, I think we have done a lot to really add to the portfolio in terms of AI capabilities, especially on the data platform side.

是的。謝謝你，法蒂瑪。我想說的是，我們的投資組合不會有重大變化。正如 Yogesh 所提到的，我們的一些產品中已經擁有很多人工智慧功能，而且從歷史上看，許多功能都透過我們的預算得到了增強。然後透過收購，我認為我們在人工智慧能力方面做了很多工作來真正增強投資組合，特別是在數據平台方面。

And so I think it's less about the investment envelope and just more about continuing to focus and enhance those solutions for our customers. I think we're well positioned to continue to get some traction in that area.

因此，我認為這與投資範圍無關，而更多在於繼續專注和增強為客戶提出的解決方案。我認為我們有能力繼續在該領域取得進展。

John DiFucci, Guggenheim Securities.

古根漢證券的約翰‧迪富奇 (John DiFucci)。

Thank you. First question is for Yogesh. You guys spoke about your acquisition strategy. And you guys have done a commendable job, at least in our observation. How does the new administration and perhaps even more importantly, higher interest rates for longer affect that strategy? In other words, if rates stay where they are, should we assume sort of -- I don't know, a pause in your strategy?

謝謝。第一個問題是問 Yogesh 的。你們談到了你們的收購策略。至少在我們看來，你們做得非常好。新政府以及或許更重要的是更長期的高利率將如何影響這項策略？換句話說，如果利率保持在當前水平，我們是否應該假設——我不知道，你的策略會暫停？

So John, thank you for those kind words, but the short answer is no boss. But not, I'll give you a slightly longer answer, I think interest rate if you notice, right? I mean, they, they've been relatively high for a couple of years now. I actually creates a competitive advantage for us. There are a lot of buyers who look to buy the kind of businesses we look to buy and their sort of approach is to lever them to an extremely high degree, which doesn't work in a high interest environment.

所以約翰，謝謝你的好意，但簡短的回答是沒有老闆。但不是，我會給你一個稍微長一點的答案，我認為如果你注意到的話，利率就是，對嗎？我的意思是，它們在過去幾年中一直處於相對較高的位置。我實際上為我們創造了競爭優勢。有很多買家想要收購我們想要收購的那種企業，他們採用的方法是將槓桿率提高到極高的程度，但這在高利率環境下是行不通的。

So therefore, I think in terms of competitive situation, I think we will find that we have an edge. I mean you look at ShareFile, I mean here was a business that potentially, if you had lower interest rates, somebody else could have potentially said, Oh, I can never touch more, and therefore, pay much more. So I think that's one competitive advantage us. We still have a little bit of firepower left in our capital even today. So we could do a relatively modest-sized transaction.

因此，我認為就競爭情勢而言，我們會發現我們具有優勢。我的意思是，看看ShareFile，我的意思是，這是一項潛在的業務，如果你有較低的利率，其他人可能會說，哦，我再也無法使用更多了，因此，要支付更多。所以我認為這是我們的一個競爭優勢。直到今天，我們的首都仍然留有一點火力。因此我們可以進行相對適中的交易。

But as we pay off our debt, which we intend to, as rapidly as we can, I mean, Anthony mentioned the $150 million down this year, that creates additional capital that frees up for us to go do additional acquisitions.

但是，當我們償還債務時，我們打算盡快償還，我的意思是，安東尼提到今年的 1.5 億美元首付，這將創造額外的資本，讓我們可以進行額外的收購。

So I think the combination of getting ShareFile synergies going combination of paying down debt, the combination of the fact that the competitive landscape for buyers like us is going to be favorable. I think last but not least, hire for longer, also probably, John, means, let's just say, more reasonable valuations, right?

因此，我認為，發揮 ShareFile 的協同效應、償還債務，再加上為我們這樣的買家創造有利的競爭環境，這些因素結合起來將會非常有利。我認為最後但並非最不重要的一點是，僱用時間更長，也可能意味著更合理的估值，對嗎？

And so all those things are -- think are they going to play in our favor. I mean historically, I've seen that the periods that follow this kind of increased interest rate for the next few years, 3 to 5 years. There is tremendous opportunity to buy great enterprise infrastructure software companies at reasonable multiples.

所以所有這些事情——想想它們是否會對我們有利。我的意思是，從歷史上看，我看到這種利率上升的時期會持續幾年，大概是 3 到 5 年。以合理的價格收購優秀的企業基礎設施軟體公司有著巨大的機會。

And so we're excited about doing more deals.

因此我們很高興能達成更多交易。

Yogesh, thank you. All of that makes a lot of sense. It does. And I guess a follow-up for Anthony. And Andy, I'm going to come back afterwards ask you because actually, I think like the Street, including us, like your forecast for the year, we got the revenue, right.

Yogesh，謝謝你。所有這些都很有道理。是的。我想這是安東尼的後續行動。安迪，我稍後會回來問你，因為實際上，我認為就像華爾街，包括我們在內，就像你對今年的預測一樣，我們得到了收入，對吧。

We even got the operating margin, right, like within your range. But our interest expense has got to be off because it ended -- but we'll talk about that after.

我們甚至獲得了營業利潤率，就像在你的範圍內一樣。但我們的利息支出必須取消，因為它結束了——但我們稍後會談論這個問題。

I guess I want to ask a question, because helping us model -- as you know, you have a lot of different models within Progress. So it makes it -- it's hard to model you if you really try to do it, and we tried several times, so it's hard. But at this point, with ShareFile would you break out the SaaS business going forward? Since it's material, I think Yogesh said in his prepared remarks, it's going to be close to 30% of total revenue. Is that something you could do for us. I think you put it in Services this quarter, but it just seems like it's -- we can model. Go ahead.

我想問一個問題，因為幫助我們建模——如你所知，你在 Progress 中有很多不同的模型。所以，如果你真的嘗試這樣做的話，就很難為你樹立榜樣，我們也嘗試過好幾次，所以這很難。但就目前情況而言，您是否會藉助 ShareFile 開拓 SaaS 業務呢？由於它很重要，我認為 Yogesh 在他的準備好的演講中說過，它將接近總收入的 30%。您能為我們做些什麼嗎？我認為您在本季度將其放在了服務中，但它看起來就像——我們可以建模。前進。

Yeah. No, John, that's a good question. And I think as we move through 2025, you're right, because ShareFile is material, because we have other SaaS offerings that are going to push us up close to that 30% mark. I think it is likely that we'll have a services line in our P&L this year, which will effectively be all of our SaaS Solutions may include a little bit of professional services as well.

是的。不，約翰，這是個好問題。我認為，隨著我們進入 2025 年，您是對的，因為 ShareFile 很重要，因為我們還有其他 SaaS 產品可以推動我們接近 30% 的目標。我認為我們今年的損益表中很可能會有一條服務線，實際上我們所有的 SaaS 解決方案可能也包含一些專業服務。

But I think you'll be able to -- I think it will lend itself to maybe some tighter modeling as we go and maybe a better understanding of for folks just sort of how the different elements within the revenue line are working. So yes, I think that is to come as we move through the quarters this year.

但我認為你將能夠——我認為隨著我們的進行，它可能有助於建立更緊密的建模，並可能讓人們更好地理解收入線內的不同要素是如何運作的。是的，我認為這將在今年各個季度中實現。

Thank you. I think that will help. It will help me understanding the business a lot and to your benefits. So, thank you. Thanks guys.

謝謝。我認為這會有所幫助。這將有助於我更好地了解業務並為您帶來利益。所以，謝謝你。謝謝大家。

Ittai Kidron, Oppenheimer.

伊泰·基德倫，奧本海默。

Thanks and guys congrats on closing the deal. It's a big one, but I have full confidence you can do with it as you've done with others. I guess I have maybe two, three questions. Maybe start with you, Anthony, just on the financial on the EPA side. I want to make sure I understand the guide for next year.

謝謝大家，恭喜你們達成交易。這是一件大事，但我完全有信心你能像對待其他人一樣處理好它。我想我可能有兩三個問題。也許可以從你開始，安東尼，只談 EPA 方面的財務問題。我想確保我理解明年的指南。

Is there a way for you to quantify the convert and the interest impact on a year-over-year basis? I'm just trying to think about what would have been the EPS guide if those two wouldn't have been a factor this year as they have not been a factor last year. So just trying to get a little bit more of an apples-to-apples EPS. So if you could do the work on that, that will be great.

有沒有辦法可以量化年比轉換率和利息影響？我只是想知道，如果今年這兩個因素不存在，那麼 EPS 指南會是什麼樣的，就像去年這兩個因素不存在一樣。因此，只是想獲得稍微更加相似的每股盈餘。所以如果你能完成這項工作，那就太好了。

Yeah, sure. I think the from an interest expense perspective, the incremental interest expense is about $0.74, $0.75 for the year and the dilution from our converts is about $0.20. So both of those together, you're talking just under $1 per share on a year-over-year basis. That's the impact on EPS.

是的，當然。我認為從利息支出的角度來看，增量利息支出約為 0.74 美元、全年 0.75 美元，而我們轉換的稀釋約為 0.20 美元。因此，將這兩項加在一起，與去年同期相比，每股收益略低於 1 美元。這就是對每股盈餘的影響。

Okay. That's very helpful. And then one thing on the annual guide, if I got this right, correct me if I'm wrong, you've guided to 37%, 38% operating margin. To be honest, I was a little bit surprised by that guide because you've already delivered more than that or within that range, right, this quarter, which included ShareFile, and I understand you included it only for one month. But if your baseline already here with ShareFile is within that range.

好的。這非常有幫助。然後關於年度指南有一件事，如果我沒有記錯的話，請糾正我，您指導的營業利潤率為 37% 到 38%。說實話，我對該指南感到有點驚訝，因為您本季度已經交付了超過該範圍或在此範圍內的產品，其中包括 ShareFile，而我了解到您只將其包含了一個月。但是如果您使用 ShareFile 的基線已經在此範圍內。

Why is you work to fully integrate and improve and bring that business back to the 40% level? Why that number is not more closer to 40% than rather than 37%, 38%?

為什麼您要努力進行全面整合和改進，並使該業務恢復到 40％ 的水平？為什麼這個數字不更接近 40％，而不是 37％、38％？

Yes. Keep in mind, the ShareFile contribution in 2024 in the fourth quarter was only one month. And I think we mentioned this before when we were sort of framing the acquisition that, that business came over with an operating margin below 20%, so sort of in the high teens. And I think that's right around where it landed for the fourth quarter. And so there'll be a gradual improvement in that margin as the year goes on.

是的。請記住，2024 年第四季的 ShareFile 貢獻僅一個月。我想我們之前在製定收購計劃時提到過這一點，當時該業務的營業利潤率低於 20%，大概在 10% 左右。我認為這正是第四季的預期。因此，隨著時間的推移，利潤率將會逐步提高。

I think with the knowing that it's coming on at that level and the size of that acquisition, I think we feel pretty good about being able to deliver 37% to 38%.

我認為，考慮到這一水平以及收購的規模，我們對能夠實現 37% 至 38% 的增幅感到非常滿意。

So if I think about the linearity of this starting low, getting better and improving through the year, ending on a high note? Is that kind of the way to think about this?

因此，如果我考慮這個線性過程，從低處開始，然後逐漸變好，並在一年內不斷改進，最後以高調結束呢？是這樣思考這個問題嗎？

I think so. Yes.

我認為是這樣。是的。

Okay. And lastly for you, Yogesh. It was an interesting review of the business from you in that you've kind of highlighted or I guess, reminded all of us that your business is not just all legacy on-premise infrastructure software, but rather evolving to be a cloud-based with also multiple go-to-market motions, right, whether it be through OEMs, open source on and so forth.

好的。最後，我要向你問好，Yogesh。您對業務的回顧很有趣，因為您強調了，或者我想，提醒了我們所有人，您的業務不僅僅是所有傳統的內部基礎設施軟體，而是發展成為基於雲端的還有多種進入市場的動議，無論是透過OEM 還是開源等等。

I guess my question is, one of the things you've always emphasized in our meetings in the past is the importance of running your business focused and efficient. And I guess my question is, where is the risk in having multiple go-to-market motions, how do you maintain efficiency when you have multiple go-to-market motions? Is there I'm just kind of wondering what is the risk in executing here and also on the ShareFile, shouldn't we think that, that business by the nature of it is a higher churn than the other businesses you typically purchase? Thank you.

我的問題是，在我們過去的會議中，您一直強調的一件事就是專注、有效率地經營業務的重要性。我想我的問題是，擁有多個上市動議的風險在哪裡，當您擁有多個上市動議時如何保持效率？我只是想知道在這裡執行以及在 ShareFile 上執行的風險是什麼，我們是否應該認為，就其性質而言，該業務的流失率比您通常購買的其他業務更高？謝謝。

Thanks for the multiple questions. I'll start with the first of. No, that's okay. So on the staying focused part, right, so it is one of the things that we have demonstrated that even with before we acquired ShareFile, right, all the channels basically were in place at Progress. We've had a high velocity go-to-market model.

感謝您提出的多個問題。我先從第一個開始。不，沒關係。因此，關於保持專注，這是我們已經證明的事情之一，即使在我們收購 ShareFile 之前，所有管道基本上都在 Progress 到位。我們擁有高速上市模式。

We've had a channel model with Kemp and Ipswitch. We've had an open source model with chef. So we've demonstrated that we can and of course, we've always had an enterprise and selling to IVS lease model since pretty much the early days of Progress.

我們與 Kemp 和 Ipswitch 合作建立了頻道模型。我們與 Chef 一起建立了一個開源模型。所以我們已經證明我們可以，當然，自從 Progress 成立初期以來，我們一直都擁有企業和向 IVS 銷售的租賃模式。

So I think we have already demonstrated that we can run a lean operation and deliver high margins because our go-to-market efforts, there's a lot of commonality in a lot of things that we do. We put in a lot of automation for a high-velocity model. We work with channel partners in a very efficient way. I think there are all kinds of benefits of having this wide range of go-to-market motions. It all allows us to actually address not just large enterprises, but midsized and smaller businesses.

所以我認為我們已經證明我們可以進行精實營運並獲得高利潤，因為我們的行銷努力以及我們所做的許多事情都有很多共同點。我們為高速模型投入了大量自動化。我們以非常有效率的方式與通路合作夥伴合作。我認為擁有如此廣泛的上市動議可以帶來各種好處。這一切使得我們實際上不僅可以滿足大型企業的需求，還可以滿足中型和小型企業的需求。

After all, we have now nearly 200,000 businesses who use our products around the world. And there are only 2,000; global 2000s, right? So really, we have a very large number of businesses who rely on us and how do we reach them. And the impact channels actually are very efficient in doing so, as is the things like online sales and so on.

畢竟，現在全球有近20萬家企業使用我們的產品。而且數量也只有2000個；全球 21 世紀，對吧？所以實際上，我們有大量的企業依賴我們，我們如何接觸他們。影響管道實際上在做到這一點方面非常有效，例如線上銷售等等。

So, I don't see it impacting our margins. I actually see them as being very, very effective in helping us manage our costs. A lot of the channels a lot of our channel, a lot of the lower-sized deals, a lot of the high velocity stuff, that's all it's either inside sales or completely automated or folks that do channel partner management, who then basically do meaningful revenue at their end. So it's actually -- it is tremendously efficient.

所以，我認為這不會影響我們的利潤。事實上，我認為他們在幫助我們管理成本方面非常非常有效。很多管道，很多小規模的交易，很多高速度的東西，都是內部銷售或完全自動化的，或是做通路夥伴管理的人，他們基本上會做有意義的事情他們的收益。所以它實際上——非常有效率。

Very good. And then on the churn on ShareFile?

非常好。那麼 ShareFile 的使用者流失情況如何呢？

So I think that actually, the net retention of ShareFile was practically the same as that of Progress in FY '24. And as you know, we have always looked to improve net retention when we acquire a business. That is one of our core competencies. And so our goal is to get that to 100% plus as well. And it's extremely close to that.

因此我認為，ShareFile 的淨留存率實際上與 24 財年的 Progress 的淨留存率相同。如您所知，我們在收購企業時始終致力於提高淨留存率。這是我們的核心競爭力之一。因此我們的目標也是將這一比例提高到 100% 以上。而且它與此非常接近。

Yeah. And I would just add, Ittai, that you're right, the sort of the raw churn or raw gross retention might be slightly lower in a business like ShareFile. But it's not different than some of the other products we have in our portfolio. So we have a group of Dx products. We've got dev tools, we have Sitefinity, products like that, I would say, share common attributes with ShareFile in terms of the velocity and sort of the churn and how those products play out.

是的。我想補充一點，Ittai，你是對的，像 ShareFile 這樣的企業的原始流失率或原始總保留率可能略低一些。但它與我們產品組合中的其他一些產品沒有什麼不同。所以我們有一組 Dx 產品。我們有開發工具，有 Sitefinity，我想說，類似的產品在速度、客戶流失率和產品表現方面與 ShareFile 有著共同的屬性。

And I think we're pretty comfortable with where ShareFile has been and where it can be relative to the rest of those products in our portfolio.

我認為我們對 ShareFile 目前的狀況以及它相對於我們產品組合中其他產品的地位相當滿意。

Appreciate it. Thanks for your patience. Thank you.

非常感謝。感謝您的耐心。謝謝。

Brent Thill, Jefferies.

傑富瑞的布倫特‧蒂爾 (Brent Thill)。

Hi guys, this is Phil on for Granville. Thanks for taking the question. Yes, I wanted to ask a high level one on the demand environment. So, we're three weeks into the new year now. And I guess my question is, more around how demand looks, the customer appetite, spending trends, heading into 2025 versus this time last year. And you know, what are the assumptions that you're sort of embedding in the full year guide?

大家好，我是格蘭維爾的菲爾。感謝您回答這個問題。是的，我想就需求環境向高層請教。現在，我們已經進入新年第三週了。我的問題更多的是關於 2025 年與去年同期相比需求狀況、顧客需求、消費趨勢如何。您知道嗎，您在全年指南中嵌入了哪些假設？

So, we see really, continue similar demand as we've had in '24. has been solid. I mean, actually, we expected not such great demand. I mean that's one of the reasons why we have continued to do well throughout '24, as the year has progressed.

因此，我們確實看到，需求繼續與24年類似。一直很穩定。我的意思是，實際上，我們預期需求不會這麼大。我的意思是，這就是為什麼隨著時間的推移，我們在整個 24 年裡表現良好的原因之一。

We are expecting sustained demand across our product portfolio. So right now -- and we're not seeing anything to make us feel otherwise. Of course, there are lots of uncertainties out there, as we all know. And who knows what will happen. But at least at this stage, we see solid demand going forward.

我們預計我們整個產品組合的需求都會持續存在。所以現在——我們還沒有看到任何讓我們有其他感覺的事情。當然，我們都知道，還存在著許多不確定性。誰知道會發生什麼事？但至少在現階段，我們看到未來需求強勁。

Got it. Is there anything you could share on just maybe like the state of your pipeline or top of funnel metrics that you're seeing today?

知道了。您能分享什麼嗎，例如您今天看到的管道狀態或漏斗頂部指標？

I don't think there's anything specific that is different. Our top of funnel continues to be robust. Our pipeline continues to be robust. In general, as you know, the vast majority of our business is existing customers the vast most of our business is existing customers. So to us, that is a very, very predictable and we know well in advance when renewals are coming up.

我認為沒有什麼具體不同。我們的漏斗頂部依然保持強勁。我們的管道持續保持強勁。總的來說，如您所知，我們的業務絕大部分是現有客戶。所以對我們來說，這是非常非常可預測的，我們事先知道續約何時會到來。

We know well in advance when customers have their contracts that we can maybe expand upon.

我們事先知道客戶的合約時間，以便我們可以擴展合約內容。

So I think that as we -- as you know, our new business is very small, right? Our ARR growth, which is in the low single digits last year. And but 100% was NRR, so over 100%. So you can see that news just a couple of points. And so that's a relatively small amount, so to speak, and we have good pipelines, robust pipeline for that.

所以我認為，如你所知，我們的新業務規模很小，對嗎？我們的 ARR 成長率去年處於個位數的低點。但 100% 是 NRR，所以超過 100%。因此你可以看到那條新聞只有幾點。可以這麼說，這是一個相對較小的數目，而且我們擁有良好的管道和強大的管道。

So really for us, pipeline, we think of a pipeline very differently. We don't -- to us, it's really more of the -- making sure that we understand our existing customer base and their cycles. That's where the vast majority of energy growth.

因此對我們來說，我們對管道的看法非常不同。對我們來說，這實際上更重要的是確保我們了解現有的客戶群及其週期。絕大部分能源成長都來自於此。

That's helpful. Thank you.

這很有幫助。謝謝。

Pinjalim Bora with J.P Morgan.

摩根大通的 Pinjalim Bora。

Great. Thank you for taking the questions. Yogesh, I want to double down on one of the thing that you said about Marklogic being sold to I think us government agency on kind of the GenAI workload. What is it that the customer is using? Is that kind of a vector using MarkLogic, Semaphore as a vector database? What is the usage?

偉大的。感謝您回答這些問題。Yogesh，我想再強調一下你剛才提到的關於 Marklogic 被出售給美國政府機構的 GenAI 工作量的事情。客戶正在使用什麼？那是使用MarkLogic，Semaphore當向量資料庫的向量嗎？有何用途？

I want to just understand that use case and maybe help us understand if you're seeing more customer traction around that use case? And are you leaning in on from a marketing standpoint? Trying to think if the business line could start accelerating.

我只是想了解該用例，也許可以幫助您了解是否看到該用例對客戶有更多吸引力？您是否從行銷角度傾向於此？試著想想業務線是否可以開始加速。

Yeah, happy to. So Pinjalim, this is an existing MarkLogic Semaphore customers. So let me start there, right? And so they have been using MarkLogic for their for their primary business database, right? So the business data is unstructured as well as structured.

是的，很高興。所以 Pinjalim，這是現有的 MarkLogic Semaphore 客戶。那麼讓我從那裡開始，好嗎？所以他們一直使用 MarkLogic 作為其主要業務資料庫，對嗎？因此，業務資料既是結構化的，又是非結構化的。

They store all of that in MarkLogic. And so what has happened is that as we have delivered back to capabilities and the ability to do virtual augment generation RAC, against the corporate information to augment the answers coming back from LLM.

他們將所有這些都儲存在 MarkLogic 中。所以發生的事情是，當我們將能力和進行虛擬增強生成 RAC 的能力交還給公司時，我們會根據公司資訊來增強從 LLM 返回的答案。

These customers who are users of MarkLogic already, MarkLogic Semaphore already, they have an opportunity much rather than the near term rather than the longer term to see how they can use that for a whole host of purposes. So initial LRM use is for the internal use or initial GenAI use with MarkLogic and Semaphore is for internal use and the internal users. And then we'll see how it goes from there. So they just started this project just -- so this is a new go-to-market plan for us.

這些已經是 MarkLogic 和 MarkLogic Semaphore 的用戶的客戶，他們有機會在短期內而不是長期內了解如何將其用於各種各樣的目的。因此，初始 LRM 用途是供內部使用，或初始 GenAI 與 MarkLogic 一起使用，而 Semaphore 則供內部使用和內部使用者使用。然後我們看看事情進展如何。所以他們剛剛啟動這個項目——所以這對我們來說是一個新的市場進入計劃。

We are looking at our entire both MarkLogic and Semaphore customer base as well as looking at broader than that and seeing how we can get some of the other customers to recognize what we can bring to them as well.

我們正在關注整個 MarkLogic 和 Semaphore 客戶群，同時也著眼於更廣泛的客戶群，研究如何讓其他客戶認識到我們能為他們帶來什麼。

Yeah. Understood. One follow-up for Anthony. Anthony, what is the assumption of revenue contribution for fiscal '25 from ShareFile? And can you remind us what that business is growing at?

是的。明白了。安東尼的後續行動之一。安東尼，您認為 ShareFile 對 25 財年的營收貢獻率是多少？您能提醒我們一下該業務的成長嗎？

Yeah, we're expecting it to be around $250 million for the year, Pinjalim. And I would say it's going to be -- we're going to say it's consistent with the rest of our business sort of low single digits.

是的，Pinjalim，我們預計今年的營收將達到 2.5 億美元左右。我想說的是——我們會說這與我們其他業務的低個位數成長是一致的。

Just to follow up, you said $50 million to $250 million in addition. I'm just looking at the guidance. I think the guidance versus last or the last fiscal year came up -- you'd be adding something like $211 million $214 million. So I'm trying to understand how if you're adding $250 million from this acquisition is the organic business looks weak, a little bit weak. So I'm trying to understand the ratable piece.

順便問一下，您說另外還要增加 5,000 萬至 2.5 億美元。我只是在看指導。我認為與上一財年或上一個財年的指導價是——將增加 2.11 億美元至 2.14 億美元。所以我想了解一下，如果透過這項收購增加 2.5 億美元，有機業務看起來會不會有點弱。因此我試圖理解可評估的部分。

ARR $250 million, I understand, but to revenue, the ratable piece, is that lower?

我理解 ARR 是 2.5 億美元，但對於收入（可評估部分）來說，這個數字是否更低呢？

Yeah. Well, one thing to keep in mind is there's one month contribution from ShareFile in '24. So there's maybe a $230 million, $229 million incremental contribution. And yes, the base business on a pure revenue perspective, as we deal with and we've talked about this before, the timing of contract renewals for things like DataDirect and even OpenEdge to the extent we have multiyear term license renewals that either come in or don't in a particular year, the revenue can get lumpy one way or another, which is why we continue to focus on ARR, which I would say we're expecting growth in ARR.

是的。嗯，有一件事要記住，那就是 '24 年 ShareFile 有一個月的貢獻。因此可能有 2.3 億美元、2.29 億美元的增量貢獻。是的，從純收入的角度來看，基礎業務，正如我們之前討論過的，DataDirect 和 OpenEdge 等產品的合約續約時間，我們有多年期許可證續約，要么或者在某一年沒有實現，收入可能會以這樣或那樣的方式出現波動，這就是為什麼我們繼續關注ARR，我想說我們預計ARR 會成長。

And if you look at '24, even without ShareFile, ARR grew by probably around 2%, which was probably a little ahead of where we thought it would be. I think next year with ShareFile, we're expecting continued ARR growth. So yes, you can if you sort of unwrap let's say, $228 million, $229 million for the incremental share file revenue in '25. You do have an FX impact of maybe $5 million, $6 million on the year. And then there's going to be a little variability from timing of contract renewals for things like DataDirect.

如果你看看 24 年，即使沒有 ShareFile，ARR 成長也可能達到 2% 左右，這可能比我們想像的要高一點。我認為明年有了 ShareFile，我們預計 ARR 將繼續成長。是的，如果您計算一下，我們可以得出 2.28 億美元、2.29 億美元的增量共享檔案收入。您每年確實會面臨 500 萬美元、600 萬美元的外匯影響。然後，DataDirect 等公司的合約續約時間會有些許變化。

Understood. Thank you.

明白了。謝謝。

Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Yogesh Gupta for any closing remarks.

謝謝。目前隊列中沒有其他問題。現在，我想將發言權交還給 Yogesh Gupta 先生，請他做最後發言。

Thank you, Sherri to close. We're delighted with our performance in FY24 and we're looking forward to an exciting FY25. Thanks again for joining us, everyone. Have a good time.

謝謝 Sherri，最後謝謝您。我們對 24 財年的表現感到非常滿意，並期待著令人興奮的 25 財年。再次感謝大家的加入我們。玩的很開心。

Thank you all for participating. This concludes today's program. You may now disconnect.

感謝大家的參與。今天的節目到此結束。您現在可以斷開連線。