Progress Software Corp (PRGS) 2025 Q2 法說會逐字稿

Hello, everyone and welcome to Progress Software's second-quarter 2025 earnings call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Progress Software 2025 年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。

Now it's my pleasure to turn the call over to Michael Micciche, SVP of Investor Relations. The floor is yours.

現在我很高興將電話轉給投資者關係高級副總裁 Michael Micciche。現在輪到你了。

Thank you, Carmen. Good afternoon, everyone, and thanks for joining us for Progress Software's second fiscal quarter 2025 financial results conference call. On the line with me this afternoon are Yogesh Gupta, President and CEO; and Anthony Folger, our Chief Financial Officer.

謝謝你，卡門。大家下午好，感謝您參加 Progress Software 2025 財年第二季財務業績電話會議。今天下午與我通話的是總裁兼執行長 Yogesh Gupta 和財務長 Anthony Folger。

Before we get started, let's go over the Safe Harbor statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, our integration of share file 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. For a description of the risk factors that may affect our results, please refer to the risk factors in our SEC filings. Progress assumes no obligation to update forward-looking statements included in this call.

在我們開始之前，讓我們先回顧一下安全港聲明。在本次電話會議中，我們將討論對未來財務和營運績效的展望、公司策略、產品計劃、成本計劃、股票文件整合以及其他可能被視為前瞻性的資訊。此類前瞻性資訊僅代表 Progress Software 截至今天的展望和指導，並受風險和不確定性的影響。有關可能影響我們結果的風險因素的描述，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 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 second quarter of fiscal year 2025, and I recommend that you reference it for specific details.

此外，請注意，除非另有說明，本次電話會議中引用的所有財務數據均為非 GAAP 指標。您可以在我們今天股市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 2025 財年第二季度財務業績相關的附加信息，我建議您參考它以了解具體細節。

We've also provided a presentation that contains supplemental data of our second quarter and provides highlights and additional financial metrics. Both the earnings release and the supplemental presentation are available on 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.

我們還提供了一份演示文稿，其中包含第二季的補充數據，並提供了重點和額外的財務指標。收益報告和補充簡報均可在我們網站 investors.progress.com 的「投資者關係」版塊查閱。今天的電話會議將被完整錄音，會議結束後不久即可在我們網站的「投資者關係」版塊重播。

So Yogesh, I'll turn it over to you now that we're done with that.

那麼 Yogesh，既然我們已經完成了這件事，我就把它交給你。

Thank you, Mike. Good afternoon, everyone, and thank you for joining our conference call to discuss the results of our second fiscal quarter of 2025. We're extremely pleased with our solid second quarter results and the success of our ongoing integration of ShareFile.

謝謝你，麥克。大家下午好，感謝您參加我們的電話會議，討論我們 2025 財年第二季的業績。我們對第二季的穩健業績以及 ShareFile 持續整合的成功感到非常滿意。

Before we get into the details of the quarter, let me begin with the news we just announced regarding the acquisition of Nuclia, for which we paid $20 million. Nuclia provides an easy to use self-service SaaS product that democratizes the use of trustworthy and verifiable Gen AI.

在我們了解本季的細節之前，讓我先來介紹一下我們剛剛宣布的有關收購 Nuclia 的消息，我們為此支付了 2000 萬美元。Nuclia 提供易於使用的自助式 SaaS 產品，使值得信賴且可驗證的 Gen AI 的使用變得民主化。

Small and mid sized businesses as well as large global corporations can quickly and easily reap the benefits of sophisticated agentic RAG AI capabilities using Nuclia SaaS. While the deal does not have a material impact on our financials, we are very excited about Nuclia and the unique agentic RAG-as-a-service AI capabilities it brings.

中小型企業以及大型跨國公司可以使用 Nuclia SaaS 快速輕鬆地獲得複雜的代理 RAG AI 功能帶來的好處。雖然這筆交易不會對我們的財務狀況產生實質影響，但我們對 Nuclia 及其帶來的獨特的代理 RAG 即服務 AI 功能感到非常興奮。

As we have often discussed, the first pillar of our total growth strategy is to invest and innovate. We regularly update, modernize, and improve our products as an everyday part of our business, which is reflected in the R&D line of our income statement. For us, our R&D investment is an essential element of providing value to our customers, so they stay with us long into the future.

正如我們經常討論的那樣，我們整體成長策略的第一個支柱是投資和創新。作為我們日常業務的一部分，我們定期更新、現代化和改進我們的產品，這反映在我們的損益表的研發線上。對我們來說，研發投資是提供客戶價值的重要因素，因此客戶會在未來很長一段時間內與我們保持合作關係。

With Nuclia, we have accelerated the R&D process by purchasing great technology that addresses an urgent market need, and we will rapidly integrate it with our products. This will allow us to incorporate additional agentic RAG AI features that help our existing customers speed up their own GenAI initiatives, thereby enabling us to continue to drive strong customer retention. You'll hear more about Nuclia in the coming quarters as we integrate this cutting edge technology with our products.

透過購買 Nuclia，我們加快了研發進程，滿足了迫切的市場需求，並且我們將迅速將其與我們的產品結合。這將使我們能夠整合額外的代理 RAG AI 功能，幫助我們現有的客戶加快他們自己的 GenAI 計劃，從而使我們能夠繼續推動強大的客戶保留率。隨著我們將這項尖端技術融入我們的產品，您將在未來幾季聽到更多有關 Nuclia 的消息。

Turning to our second quarter results, total revenue came in at $237 million, up 36% over last year, and was solid across geographies and product lines. ARR grew 46% year over year or 2% on a pro forma basis to $838 million and net retention was again 100%. Our operating margin was 40%, and earnings exceeded the high end of our guidance, thanks to solid execution and expense control.

回顧我們第二季的業績，總營收達到 2.37 億美元，比去年同期成長 36%，且各地區和各產品線均表現穩健。ARR 年成長 46%（以備考基礎計算成長 2%），達到 8.38 億美元，淨留存率再次達到 100%。我們的營業利潤率超過 40%，並且由於穩健的執行和費用控制，收益超過了預期的上限。

Lastly, our balance sheet improved as well with another $40 million paid down on our revolving credit line. Anthony will provide the rest of the financial details in a minute, but as you saw, we have raised guidance for the remainder of the year, reflecting our confidence in the continued strength of our business and solid expense control.

最後，我們的資產負債表也得到了改善，循環信用額度又償還了 4,000 萬美元。安東尼將在一分鐘內提供其餘的財務細節，但正如您所看到的，我們提高了今年剩餘時間的指導，這反映了我們對業務持續強勁和穩健費用控制的信心。

Overall, the second quarter showed strong renewals, expansions, and new customer additions across all geographies, and we saw consistent performance across our product areas with significant strength coming from OpenEdge, as well as solid performance from ShareFile.

總體而言，第二季所有地區的續約、擴張和新客戶增加均表現強勁，我們看到各個產品領域的表現一致，其中 OpenEdge 表現強勁，ShareFile 表現穩健。

Our data platform products, including OpenEdge, continue to generate major renewals and expansions in the quarter, including a world-class biotech company, a global pharmaceutical firm, a major European DIY retailer, and several OpenEdge independent software vendors. The growing importance of data in an AI-driven world combined with the ongoing investments in our products is the driving force behind these wins.

我們的數據平台產品（包括 OpenEdge）在本季繼續實現重大更新和擴展，其中包括一家世界級的生物技術公司、一家全球製藥公司、一家歐洲大型 DIY 零售商以及幾家 OpenEdge 獨立軟體供應商。在人工智慧驅動的世界中，數據的重要性日益增加，加上我們對產品的持續投資，是這些勝利背後的驅動力。

Let me share an example of how one customer is benefiting from using our products in their generative AI efforts. The research and scientist teams numbering in the thousands at a global pharmaceutical company were struggling to find the correct information needed, which was buried in mountains of unstructured and structured data such as research papers, emails, spreadsheets, files, et cetera.

讓我分享一個例子，說明一位客戶如何在其生成性人工智慧工作中使用我們的產品並從中受益。一家全球製藥公司的數千名研究和科學家團隊正在努力尋找所需的正確訊息，而這些資訊被埋沒在研究論文、電子郵件、電子表格、文件等大量非結構化和結構化資料中。

They tried using GenAI with vector support which yielded rather poor results with only 44% accuracy of answers. This resulted in these highly skilled teams wasting their time and getting frustrated. So to reduce this incredible waste, the company partnered with Progress to strategically transform its information search capabilities using the Progress data platform.

他們嘗試使用具有向量支援的 GenAI，但結果相當差，答案的準確率僅為 44%。這導致這些高技能團隊浪費時間並感到沮喪。因此，為了減少這種巨大的浪費，該公司與 Progress 合作，利用 Progress 數據平台策略性地轉變其資訊搜尋能力。

By implementing our advanced RAG search solution integrated with semantic knowledge graphs, the company dramatically improved the precision and relevance of the search results. The accuracy of answers improved to 84%, delivering significant time savings and dramatically improving user satisfaction.

透過實施我們先進的與語義知識圖譜整合的 RAG 搜尋解決方案，該公司顯著提高了搜尋結果的精確度和相關性。答案的準確率提高到 84%，節省了大量時間並顯著提高了用戶滿意度。

During the quarter, we released new versions of Progress Telerik and Kendo UI, which introduced a series of groundbreaking AI capabilities, including AI coding systems that significantly accelerate development workflows. These AI enhancements were key to a major customer expansion with one of the largest ports in the US. In addition to the developer productivity boost from AI, the customer determined that the AI coding assistant also reduced business risk by producing higher quality code.

本季度，我們發布了新版本的 Progress Telerik 和 Kendo UI，引入了一系列突破性的 AI 功能，包括可顯著加速開發工作流程的 AI 編碼系統。這些 AI 增強功能對於美國最大的港口之一實現重大客戶擴張至關重要。除了人工智慧提高開發人員的工作效率之外，客戶還發現人工智慧編碼助理還可以透過產生更高品質的程式碼來降低業務風險。

Our infrastructure management products also continue to see success around the world. In Q2, one of the largest leading sustainability companies turned to our products to modernize the automation and deployment of their IT infrastructure, supporting their 6,500 locations around the world. And the European government selected our products to improve cybersecurity using AI ops. As organizations modernize the infrastructure, they continue to recommit to our products for their data, digital experience, and infrastructure management needs.

我們的基礎設施管理產品也持續在世界各地取得成功。在第二季度，一家最大的領先永續發展公司採用我們的產品來實現其 IT 基礎設施的自動化和部署現代化，為其全球 6,500 個分支機構提供支援。歐洲政府選擇我們的產品來利用人工智慧操作來提高網路安全。隨著組織對基礎設施進行現代化改造，他們繼續重新使用我們的產品來滿足其數據、數位體驗和基礎設施管理需求。

Our ShareFile business also saw continued strong renewals and expansions, including a Fortune 500 global producer of oil and natural gas who uses ShareFile, AI powered document insights, and collaboration tools to share large sensitive files with their customers and their global supply chain.

我們的 ShareFile 業務也持續強勁更新和擴展，其中包括一家財富 500 強全球石油和天然氣生產商，他們使用 ShareFile、人工智慧文件洞察和協作工具與其客戶和全球供應鏈共享大型敏感文件。

Speaking of ShareFile, let me provide you with an update on the business. We reported at the end of Q1 that we were ahead of our integration plan. The same is true at the end of the second quarter. Most of the primary operational synergies are completed, and nearly all of the major milestones are now behind us. We've completed and terminated the transition services agreement with Cloud Software Group, again earlier than planned, and I'm really pleased with the progress we have made so far.

說到 ShareFile，讓我向您提供業務的最新情況。我們在第一季末報告稱，我們的整合計劃已經提前完成。第二季末也是如此。大多數主要的營運協同都已完成，幾乎所有主要里程碑都已過去。我們已經完成並終止了與雲端軟體集團的過渡服務協議，這比計劃的要早，我對我們迄今為止的進展感到非常滿意。

In addition to our integration efforts, the ShareFile engineering team has continued to deliver new capabilities without missing a beat. For example, we announced powerful new ShareFile AI features for faster document collection, automating repetitive tasks and simplifying workflows, and generating AI-driven insight. With these new AI capabilities, businesses can gather documents 3.5 times faster and extract key insights they need up to 25 times faster.

除了我們的整合工作之外，ShareFile 工程團隊還持續提供新功能，沒有任何錯誤。例如，我們宣布了強大的新 ShareFile AI 功能，可以更快地收集文件、自動執行重複性任務和簡化工作流程，並產生 AI 驅動的洞察力。借助這些新的 AI 功能，企業可以以 3.5 倍的速度收集文檔，並以高達 25 倍的速度提取所需的關鍵見解。

ShareFile is now also deeply integrated with Microsoft 365, allowing users to benefit from ShareFiles', secure co-authoring and file collaboration seamlessly from within Microsoft 365. This helps organizations to streamline complex workflows and improve productivity as well. And we are delighted that ShareFile was named a visionary in the latest Gartner Magic Quadrant for Document Management.

ShareFile 現在也與 Microsoft 365 深度集成，使用戶可以在 Microsoft 365 中無縫地享受 ShareFiles 的安全性共同創作和文件協作功能。這有助於組織簡化複雜的工作流程並提高生產力。我們非常高興 ShareFile 在最新的 Gartner 文件管理魔力像限中被評為「遠見者」。

I also want to briefly touch upon Progress's own use of AI to innovate and improve our operations. As you saw in our excellent bottom line results in Q2, we continue to maintain our expense discipline, which has always been central to our operating philosophy. And AI has begun to play an expanding role in helping us maintain our world-class operating margins. To that end, we are relentlessly pursuing ways to incorporate AI into any process that can be done more efficiently, which includes both off the shelves and our own AI products to drive productivity and produce strong results.

我還想簡單談談 Progress 公司本身如何利用人工智慧進行創新和改進我們的營運。正如您在第二季出色的獲利績效中所看到的，我們繼續保持費用紀律，這一直是我們經營理念的核心。人工智慧在幫助我們維持世界一流的營運利潤率方面開始發揮越來越大的作用。為此，我們堅持不懈地尋求將人工智慧融入任何可以更有效率完成的流程的方法，其中包括現成的和我們自己的人工智慧產品，以提高生產力並產生強大的成果。

Over the past year, we've embedded AI-driven automation and intelligence into a wide range of our business functions from engineering and IT to customer support, marketing, and sales. For example, our engineering teams are leveraging AI assisted coding tools to accelerate development cycles and improve code quality, while our IT operations teams have adopted predictive analytics to proactively manage our infrastructure and reduce downtime.

在過去的一年裡，我們將人工智慧驅動的自動化和智慧嵌入到從工程和 IT 到客戶支援、行銷和銷售等廣泛的業務職能中。例如，我們的工程團隊正在利用人工智慧輔助編碼工具來加速開發週期並提高程式碼質量，而我們的 IT 營運團隊則採用預測分析來主動管理我們的基礎設施並減少停機時間。

In customer support, we have implemented AI powered chat and case rousing systems that significantly improve response times and customer satisfaction. We're also using generative AI to streamline certain content creation and campaign execution within our marketing teams, enabling faster go to market strategies and a more personalized customer engagement.

在客戶支援方面，我們實施了人工智慧聊天和案例激勵系統，顯著提高了回應時間和客戶滿意度。我們還使用生成式人工智慧來簡化行銷團隊中的某些內容創建和活動執行，從而實現更快的市場策略和更個人化的客戶參與。

And we're using AI and sales to help nurture prospects before sales teams begin to interact with them. By generate -- by integrating AI technologies into our workflows, we're not only increasing efficiency and managing costs, but also freeing up our teams to focus on high-value strategic work.

在銷售團隊開始與潛在客戶互動之前，我們會利用人工智慧和銷售技術來幫助培養潛在客戶。透過將人工智慧技術融入我們的工作流程，我們不僅提高了效率和管理成本，還讓我們的團隊專注於高價值的策略工作。

Lastly, I would like to briefly discuss the other key pillar of our strategy, disciplined, accreative M&A to drive sustained top line growth. As you recall, we often discussed the overall size of our opportunity for M&A, which remains quite large.

最後，我想簡要討論我們策略的另一個關鍵支柱，即有紀律的、增值的併購，以推動持續的收入成長。大家還記得，我們經常討論併購機會的整體規模，這個規模仍然相當大。

Before -- but before we acquired ShareFile, we saw many SaaS companies that were unattractive to us as potential targets because we lacked in-house expertise to run a highly profitable SaaS business. Today, with ShareFile, we have a high quality SaaS business that contributes over a quarter of our revenues and more importantly, we have an organization with the expertise and experience of running a highly efficient and profitable SaaS business at scale. So we're in a much better position today to evaluate almost any kind of business, SaaS or otherwise, as a possible acquisition target.

在我們收購 ShareFile 之前，我們發現許多 SaaS 公司對我們來說沒有吸引力，因為我們缺乏經營高利潤 SaaS 業務的內部專業知識。如今，有了 ShareFile，我們擁有了高品質的 SaaS 業務，它為我們貢獻了超過四分之一的收入，更重要的是，我們擁有一個擁有大規模運營高效且盈利的 SaaS 業務的專業知識和經驗的組織。因此，我們今天處於更有利的位置來評估幾乎任何類型的業務，無論是 SaaS 還是其他類型，作為可能的收購目標。

Naturally, our success in executing our total growth strategy depends on maintaining our strict M&A discipline. We will continue to look for companies with excellent products, with great customer base who love those products, significant recurring revenues, and high retention rates, and we will continue to be disciplined about what we pay for them. Our capital allocation priorities are unchanged. We believe M&A will produce the best returns on capital for shareholders, and between deals, we will focus on reducing our net leverage.

當然，我們成功執行整體成長策略取決於維持嚴格的併購紀律。我們將繼續尋找擁有優質產品、喜愛這些產品的龐大客戶群、可觀的經常性收入和高留存率的公司，並且我們將繼續嚴格控制為它們支付的費用。我們的資本配置重點維持不變。我們相信併購將為股東帶來最佳的資本回報，而在交易之間，我們將專注於降低淨槓桿率。

Finally, and as always, I want to thank all of our Progress teams around the world for their dedication and hard work that led to our great results in Q2. In addition to consistently performing at a high level, our employees also make progress a great place to work. Once again, progress was named among the 2025 best places to work recently by the Boston Business Journal. I am so proud of the amazing culture we have and the recognition we continually receive for it.

最後，像往常一樣，我要感謝我們世界各地的所有 Progress 團隊，感謝他們的奉獻和辛勤工作，使我們在第二季度取得了出色的成績。除了始終保持高水準的工作表現外，我們的員工還在工作中取得了進步。最近，Progress 再次被《波士頓商業雜誌》評為 2025 年最佳工作場所之一。我為我們擁有的卓越文化以及我們不斷獲得的認可感到非常自豪。

With that, I will turn it over to Anthony.

說完這些，我將把麥克風交給安東尼。

All right. Thanks, Yogesh, and good afternoon, everyone. Thanks for joining our call. As Yogesh mentioned, we're thrilled with our Q2 financial results, the progress we've made integrating ShareFile, and we feel very well positioned for the second half of 2025.

好的。謝謝，Yogesh，大家下午好。感謝您加入我們的電話會議。正如 Yogesh 所提到的，我們對第二季的財務業績、整合 ShareFile 所取得的進展感到非常興奮，並且我們對 2025 年下半年的前景感到非常樂觀。

Before we dig into the numbers, I'd first like to congratulate Yogesh on recently being named an Ernst and Young Entrepreneur of the Year in New England. This prestigious award recognizes visionary leaders and transformational CEOs that are driving innovation, accelerating growth, and creating lasting impact. Having worked with Yogesh for several years now, I can attest this honor is well deserved.

在我們深入研究這些數字之前，我首先要祝賀 Yogesh 最近被評為新英格蘭年度安永企業家。這項享有盛譽的獎項旨在表彰推動創新、加速成長和創造持久影響的富有遠見的領導者和變革型執行長。與 Yogesh 合作已有數年，我可以證明這項榮譽是當之無愧的。

All right, turning to the numbers. Let's start on the top line with ARR. We closed Q2 with ARR of $838 million, representing 46% growth year over year and 2% pro forma growth on a year over year basis. For clarity, the pro forma results include ShareFiles ARR in both periods.

好的，我們來談談數字。讓我們從 ARR 的頂線開始。我們第二季的 ARR 為 8.38 億美元，年增 46%，年增 2%。為了清楚起見，準備結果包括兩個時期的 ShareFiles ARR。

Although no single product drove material growth in our total ARR, the 2% pro forma growth that we delivered was the result of growth in multiple products across the portfolio, including ShareFile, OpenEdge, DevTools, Sitefinity, Loadmaster, and WhatsApp Gold. Also worth highlighting is our strong net retention rate, which again came in at 100%, reflecting resilience in our top line.

雖然沒有任何單一產品推動我們總 ARR 的實質成長，但我們實現的 2% 預測成長是整個產品組合中多種產品成長的結果，包括 ShareFile、OpenEdge、DevTools、Sitefinity、Loadmaster 和 WhatsApp Gold。同樣值得強調的是我們的強勁淨留存率，再次達到 100%，反映了我們營業收入的韌性。

As we've mentioned several times before, and as Yogesh just covered in his remarks, we believe that smart investments in our product portfolio and good customer relationship management both serve as the foundation of our consistently strong net retention rates. In addition to our solid ARR growth, revenue for the quarter of $237 million was solidly within the guidance range we provided back in March and was powered by strong performance from ShareFile and OpenEdge.

正如我們之前多次提到的，以及 Yogesh 在他的評論中提到的，我們相信對我們的產品組合的明智投資和良好的客戶關係管理都是我們持續強勁的淨留存率的基礎。除了我們穩健的 ARR 成長之外，本季 2.37 億美元的營收也穩固地處於我們 3 月提供的指導範圍內，並得益於 ShareFile 和 OpenEdge 的強勁表現。

Turning now to expenses, our total cost and operating expenses for the quarter were $142 million coming in better than our expectations. The year-over-year increase of 31% was driven entirely by the addition of ShareFile to our business. Operating income in Q2 was $95 million, up 42% over the prior year, and our operating margin in the quarter was strong at over 40% compared to 38% in the second quarter of 2024.

現在談談費用，本季我們的總成本和營運費用為 1.42 億美元，好於我們的預期。同比成長 31% 完全是由於 ShareFile 加入我們的業務。第二季的營業收入為 9,500 萬美元，比上年增長 42%，本季的營業利潤率強勁，超過 40%，而 2024 年第二季為 38%。

On the bottom line, our Q2 earnings per share of $1.40 was $0.06 above the high end of the guidance range we provided in March. This overperformance relative to our expectation was driven by strong cost management across the business, coupled with solid top line performance.

總體而言，我們第二季的每股收益為 1.40 美元，比我們 3 月提供的指導範圍高端高出 0.06 美元。相對於我們的預期，這超出預期的表現得益於整個業務的強大成本管理以及穩健的營收表現。

Moving on to a few balance sheet and cash flow metrics, we ended the quarter with cash and cash equivalents of $102 million and total debt of $1.47 billion for a net debt position of $1.37 billion. On a post synergy basis, we expect our net leverage ratio to be approximately 3.4 times. Our DSO for the quarter was 53 days compared to 48 days last quarter. An unlevered free cash flow of $52 million was driven by the strength of our operating performance, coupled with strong collections in our base business.

從幾個資產負債表和現金流指標來看，本季末我們的現金和現金等價物為 1.02 億美元，總負債為 14.7 億美元，淨負債為 13.7 億美元。在綜效之後，我們預期淨槓桿比率約為 3.4 倍。本季的 DSO 為 53 天，而上一季為 48 天。5,200 萬美元的無槓桿自由現金流是由我們強勁的經營業績以及基礎業務的強勁回款所推動的。

The slight bump in our DSO in Q2 was the result of transitioning the ShareFile business onto Progress's billing system. This was a significant milestone on our integration roadmap and with Billings Fulfillment credit and collections now fully under Progress's control, we expect to significantly improve the ShareFile customer experience.

我們第二季的 DSO 略有上升，這是將 ShareFile 業務轉移到 Progress 的計費系統的結果。這是我們整合路線圖上的一個重要里程碑，隨著 Billings Fulfillment 信用和收款現在完全由 Progress 控制，我們期望顯著改善 ShareFile 客戶體驗。

Also during Q2, we repaid $40 million against the revolving line of credit that was drawn down to partially finance the ShareFile acquisition. This brings our total first half debt repayment to $70 million and keeps us on schedule to pay down a total of $160 million during fiscal 2025. At the end of Q2, our revolving line of credit has a balance of $660 million. Finally, during Q2, we repurchased $20 million of Progress stock, bringing our first half total to $50 million and leaving $57 million remaining under our current share repurchase authorization.

此外，在第二季度，我們償還了 4,000 萬美元的循環信用額度，這筆信用額度是部分用於資助 ShareFile 收購的。這使得我們上半年的債務償還總額達到 7,000 萬美元，並使我們能夠按計劃在 2025 財年償還總計 1.6 億美元的債務。截至第二季末，我們的循環信用額度餘額為 6.6 億美元。最後，在第二季度，我們回購了價值 2,000 萬美元的 Progress 股票，使我們上半年的回購總額達到 5,000 萬美元，而目前的股票回購授權額度還剩下 5,700 萬美元。

Okay. Now I'd like to turn to our outlook for Q3 and the full year 2025. Our outlook reflects continued strength in the demand environment for our solutions. It reflects recent changes in foreign exchange dynamics and it reflects continued confidence in our team's ability to execute.

好的。現在我想談談我們對第三季和 2025 年全年的展望。我們的前景反映出對我們的解決方案的需求環境持續強勁。它反映了近期外匯動態的變化，也反映了對我們團隊執行能力的持續信心。

I'd also like to mention that our acquisition of Nuclia is not expected to have a material impact on our financial results in the second half of 2025. In other words, our second half outlook is the same with or without the Nuclia acquisition.

我還想提一下，我們對 Nuclia 的收購預計不會對我們 2025 年下半年的財務表現產生重大影響。換句話說，無論是否收購 Nuclia，我們對下半年的展望都是相同的。

For the third quarter of 2025, we expect revenue between $237 million and $243 million and earnings per share of between $1.28 and $1.34. For the full year 2025, we are increasing our outlook across the board and expect revenue between $962 million and $974 million, an increase of $4 million from our prior guidance, an operating margin of 38% to 39%, an increase of roughly 50 basis points from our prior guidance.

我們預計2025年第三季營收將在2.37億美元至2.43億美元之間，每股盈餘將在1.28美元至1.34美元之間。我們全面上調2025年全年業績預期，預計營收將在9.62億美元至9.74億美元之間，較此前預期增加400萬美元；營業利潤率將在38%至39%之間，較此前預期增加約50個基點。

Adjusted free cash flow between $228 million and $240 million, and unlevered free cash flow of between $285 million and $296 million an increase of $2 million from prior guidance for both. Finally, we expect earnings per share between $5.28 and $5.40, an increase of $0.03 from prior guidance.

調整後的自由現金流在 2.28 億美元至 2.4 億美元之間，無槓桿自由現金流在 2.85 億美元至 2.96 億美元之間，較先前的預期增加 200 萬美元。最後，我們預計每股收益在 5.28 美元至 5.40 美元之間，比先前的預期增加 0.03 美元。

Our guidance for full year EPS assumes a tax rate of 20%. The repurchase of $50 million in Progress shares that's been done to date and total debt repayment of $160 million. In terms of the total share count in our EPS assumption, we're assuming approximately 45 million shares outstanding, and this includes approximately 500,000 shares associated with potential dilution on our 2026 convertible notes.

我們對全年每股收益的預測假設稅率為 20%。迄今已回購價值 5,000 萬美元的 Progress 股票並償還總計 1.6 億美元的債務。就我們的每股盈餘假設中的總股數而言，我們假設流通股數約為 4500 萬股，其中包括與我們的 2026 年可轉換票據的潛在稀釋相關的約 50 萬股。

I'm sure you'll recall that we purchased a call spread on our 2026 convertible notes to hedge the economic impact of dilution up to approximately $89 per share. Accounting regulations require that recognition of any benefit from that call spread be excluded when calculating shares outstanding.

我相信您會記得，我們購買了 2026 年可轉換票據的看漲價差，以對沖稀釋帶來的經濟影響，最高可達每股約 89 美元。會計法規要求，在計算流通股數時，應排除買權價差所產生的任何收益。

Because of this added nuance, we will continue to provide the number of shares that we've assumed for dilution each time we provide an outlook on earnings per share. For more details, I'd recommend you refer to the supplemental financial presentation filed with our press release, which includes detailed information on our outstanding debt.

由於這種額外的細微差別，每次我們提供每股盈餘展望時，我們都會繼續提供我們假設稀釋的股份數量。有關更多詳細信息，我建議您參閱我們新聞稿中提交的補充財務報告，其中包含有關我們未償債務的詳細信息。

In closing, we're excited to deliver another strong quarter of financial results across the board. Really a continuation of the trend we saw in the first quarter, and we believe we're very well positioned to deliver against our improved outlook for the remainder of 2025 and beyond.

最後，我們很高興能夠再次取得全面強勁的財務表現。這確實延續了我們在第一季看到的趨勢，我們相信，我們完全有能力實現 2025 年剩餘時間及以後改善的前景。

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

現在，我想開始問答環節。

(Operator Instructions)

（操作員指示）

Ittai Kidron, Oppenheimer.

伊泰·基德倫，奧本海默。

Hi, this is Nolan Jenevein on for Ittai. I really just want to get a little bit more color about the Nuclia acquisition and this is a little bit of a divergence from what we generally see as the profile of company that you guys go after, being more mature software company. So maybe just give us a little bit more color on Nuclia and, yeah, thank you for taking the questions.

大家好，我是 Ittai 的 Nolan Jenevein。我真的只是想多了解 Nuclia 收購案，這與我們通常認為的你們所追求的公司形像有點不同，你們是一家更成熟的軟體公司。所以也許可以給我們多介紹 Nuclia，是的，感謝您回答這些問題。

Sure, happy to. And Anthony, feel free to add if you like. So you're right that this is not like some of our more recent acquisitions that we have done. This acquisition was primarily driven as an investment in our product portfolio. As many of you know, Progress has had a long history over many decades of continuing to invest in our portfolio to make sure that the portfolio stays current and our customer retention stays high.

當然，我很樂意。安東尼，如果你願意的話，請隨意添加。所以您說得對，這與我們最近進行的一些收購不同。此次收購主要是為了投資我們的產品組合。眾所周知，Progress 數十年來一直持續投資於我們的產品組合，以確保產品組合保持最新狀態並且我們的客戶保留率保持在較高水準。

When -- and I know this is probably maybe before some folks on the call may even be aware of this, but before the internet came around, Progress was primarily a client server software company. Internet came along, cloud came along, we basically invested heavily in making OpenEdge multi-tenant, which allowed the OpenEdge business to continue extremely strong and stable.

我知道這可能發生在電話會議中的一些人可能還沒有意識到這一點之前，但在互聯網出現之前，Progress 主要是一家客戶端伺服器軟體公司。隨著網路和雲端運算的出現，我們投入了大量資金來打造 OpenEdge 多租戶，這使得 OpenEdge 業務能夠繼續保持強勁和穩定。

Then when mobile computing came along, we again invested heavily in that, made a small acquisition along the way to add mobile computing capabilities to that. And today, we're doing something similar with AI, which is a sort of third major way in the enterprise software that we see dramatically changing the landscape, probably even more than the first two did.

然後，當行動運算出現時，我們再次對其進行了大力投資，並在此過程中進行了小規模收購，以增加行動運算功能。今天，我們正在用人工智慧做類似的事情，這是企業軟體領域第三個主要方式，我們看到它正在極大地改變行業格局，甚至可能比前兩種方式改變的還要大。

And so from our perspective, this is something that the company has a strong history of doing. We believe that there is tremendous opportunity in ensuring that our customers continue to find great value with our products that they stay with us. This is a rather modest purchase price for a leading edge technology around agentic RAG solutions for Gen AI.

因此，從我們的角度來看，這是公司長期以來一直在做的事情。我們相信，確保客戶繼續從我們的產品中發現巨大的價值，並繼續選擇我們的產品，這將帶來巨大的機會。對於圍繞 Gen AI 的代理 RAG 解決方案的前沿技術而言，這是一個相當適中的購買價格。

So we feel really good about it, both for adding the technology as well as bringing on a strong team, they can help us continue to move this technology forward, integrate it with our products, and continue to go to market.

因此，我們對此感到非常高興，既增加了技術，又帶來了一支強大的團隊，他們可以幫助我們繼續推動這項技術的發展，將其與我們的產品相結合，並繼續推向市場。

Pretty much appreciated and congrats on the quarter.

非常感謝，並祝賀本季取得的成績。

Thank you so much.

太感謝了。

John DiFucci, Guggenheim Securities.

古根漢證券公司的約翰‧迪富奇 (John DiFucci)。

Thank you. I'm going to ask another question on Nuclia. I know it's a small acquisition, but it's really interesting in another way. You guys know you typically buy products that sort of stand on their own and you run them -- frankly, you run them a lot more efficiently.

謝謝。我將詢問有關 Nuclia 的另一個問題。我知道這只是一次小收購，但從另一個角度來看它確實很有趣。你們知道，你們通常會購買獨立的產品並運行它們——坦白說，你們運行它們的效率要高得多。

And -- but Nuclia feels like it's something you can leverage across your portfolio of products, which is not what you'd normally do. I know that sometimes there's confusion over that. But can this one be a cross sell opportunity or perhaps even something that can be embedded in other products? It seems like maybe it can.

而且——但 Nuclia 感覺它是你可以在你的產品組合中利用的東西，這不是你通常會做的。我知道有時候人們會對此感到困惑。但這是否可以成為交叉銷售機會，甚至可以嵌入其他產品中？看起來也許可以。

John, you're absolutely right. Sorry, John, you're absolutely right. It is something that we expect to integrate across our product portfolio. I think it brings value not just to our data platform business which is OpenEdge and MarkLogic and Semaphore, but I think it brings value to things like Sitefinity and ShareFile. I think it has all kinds of interesting opportunities to bring value to those that are dealing with leveraging that information that -- in fact, as ShareFile has 86,000 customers and their data is sitting in ShareFile, right?

約翰，你完全正確。抱歉，約翰，你完全正確。我們希望將其融入我們的整個產品組合中。我認為它不僅為我們的資料平台業務（OpenEdge、MarkLogic 和 Semaphore）帶來價值，而且我認為它還為 Sitefinity 和 ShareFile 等帶來價值。我認為它有各種有趣的機會為利用這些資訊的人帶來價值——事實上，ShareFile 有 86,000 名客戶，他們的資料就儲存在 ShareFile 中，對嗎？

So we see opportunity here. We see opportunity to integrate across the portfolio over time and create value for our customers and therefore for our business.

所以我們在這裡看到了機會。我們看到了隨著時間的推移整合整個產品組合併為我們的客戶創造價值以及為我們的業務創造價值的機會。

And that makes sense. It makes it a little different too for at least, from ShareFile certainly (multiple speakers)

這是有道理的。至少與 ShareFile 相比，它確實有點不同（多位發言者）

It does.

確實如此。

Okay. And if I could a follow up for Anthony. Anthony, free cash flow in the quarter was actually below what we had expected, a little bit below what we were looking for, but you brought up annual forecasts meaningfully. So could you just give us a little color on that, like what happened this quarter and why our expectations so much higher for the second half? Was it just some timing things happening? Just want to just make sure we understand that.

好的。如果我可以跟進安東尼的話。安東尼，本季的自由現金流實際上低於我們的預期，略低於我們的期望，但你提出的年度預測很有意義。那麼，您能否向我們稍微介紹一下這一點，例如本季度發生了什麼，以及為什麼我們對下半年的期望值如此之高？這只是一些時間上發生的事情嗎？只是想確保我們理解這一點。

Yeah, I think two things, John. One is a little bit of timing on collections. The second is, we did move, we basically picked up ShareFiles' business which up to this point we had still been on a transition service agreement with CSG.

是的，我認為有兩件事，約翰。一是收藏的時機有點問題。第二，我們確實採取了行動，基本上接管了 ShareFiles 的業務，而在此之前，我們仍與 CSG 簽訂了過渡服務協議。

And we went live on the progress billing platform for ShareFile. And so that's basically picking up a $250 million business and cutting it over onto a new billing fulfillment and credit and collection system. And so, I would say, we are really happy with the result, we are really happy with the early returns on it, but anytime you do a sort of a major lift and shift like that, there's always a little bit of -- you'll go a little bit slower to make sure that everything is working properly.

我們開始在 ShareFile 上線進度計費平台。因此，這基本上就是接手一項價值 2.5 億美元的業務，並將其轉移到新的帳單履行、信用和收款系統上。所以，我想說，我們對結果非常滿意，我們對早期的回報非常滿意，但任何時候你進行類似這樣的重大提升和轉變，總會有一點——你會放慢速度以確保一切正常運轉。

And I would say there was a little bit of that in the quarter in terms of how we were sort of batching up invoices and how we were handling collections. I think we were being much more careful and much more thoughtful about the customer experience and the long term implementation of the system and and less so maybe about the DSO in the quarter. I view it as a something that we sort of moved past very quickly here, but it's -- we're more excited just to get this. I mean, it was a big milestone as you might imagine on the integration plan, so it was a nice one to get done.

我想說的是，就我們如何批量處理發票以及如何處理收款而言，本季度出現了一些這種情況。我認為我們對客戶體驗和系統的長期實施更加謹慎和深思熟慮，而對本季的 DSO 可能關注較少。我認為這是我們在這裡很快度過的階段，但是——我們更興奮的是得到這個。我的意思是，正如你所想像的，這是整合計劃中的一個重要里程碑，所以完成它是一件很好的事。

Yeah. No, okay. That makes a lot of sense. And by the way, I mean, you sort of that's reflected in your guidance for the year. So -- but you know that's such an important metric for -- especially for you guys. But anyway, that's great, especially with ShareFile, given the size of that and it's nice to see that that coming along so well. Thanks a lot guys.

是的。不，好吧。這很有道理。順便說一句，我的意思是，這在某種程度上反映在你對今年的指導中。所以 — — 但你知道這是一個非常重要的指標 — — 尤其是對你們來說。但無論如何，這很棒，特別是考慮到 ShareFile 的規模，很高興看到它進展得如此順利。非常感謝大家。

Thank you, John.

謝謝你，約翰。

(Operator Instructions)

（操作員指示）

All right, as I see no further questions in the queue, I will pass it back to management for final remarks.

好的，由於我沒有看到隊列中還有其他問題，我將把它交回管理層進行最後的評論。

Thank you. Thank you again for joining our call today. I'm truly excited about our performance in Q2 and pleased to share our confidence in the outlook for the rest of fiscal 2025. I'm especially proud of the dedication of our entire organization and their continued hard work, which positions us well as we continue to execute our total growth strategy. We look forward to talking to you soon. Thanks again and bye-bye.

謝謝。再次感謝您今天參加我們的電話會議。我對我們第二季的表現感到非常興奮，並很高興分享我們對 2025 財年剩餘時間前景的信心。我對我們整個組織的奉獻精神和持續的辛勤工作感到特別自豪，這為我們繼續執行全面成長策略奠定了良好的基礎。我們期待很快與您交談。再次感謝，再見。

And this concludes our program for today. Thank you for participating, and you may now disconnect.

今天的節目到此結束。感謝您的參與，您現在可以斷開連接了。