Progress Software Corp (PRGS) 2026 Q3 法說會逐字稿

Hello, and welcome to Progress Software third quarter earnings conference call. (Operator Instructions)

大家好，歡迎參加 Progress Software 第三季財報電話會議。(接線員指示)

I would now like to turn the call over to Michael Micciche, SVP of Investor Relations. You may begin.

現在我想把電話交給投資人關係資深副總裁 Michael Micciche。您可以開始了。

Thank you, Tawanda. It’s nice to have you back with us. Good afternoon, everyone, and thanks for joining us for Progress Software’s third fiscal quarter 2026 financial results conference call. Joining me on the call are Yogesh Gupta, our President and CEO; and Anthony Folger, our Chief Financial Officer.

謝謝你，Tawanda。很高興你再次回到我們的會議。各位下午好，感謝各位參加 Progress Software 2026 會計年度第三季財務業績電話會議。今天與我一同出席的還有我們的總裁暨執行長 Yogesh Gupta，以及財務長 Anthony Folger。

Before we get started, please consider our Safe Harbor statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategy, product plans, cost initiatives, our acquisition and integration of Domo, 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, and our actual results may differ materially. For a description of the factors that may affect our future results and operations, please refer to the risk factors in our SEC filings, particularly the Risk Factors section in our most recent Form 10-K and the latest 10-Q filing, which was filed in conjunction with this announcement. Progress assumes no obligation to update forward-looking statements included in this call.

在開始之前，請各位留意我們的「安全港」聲明。在本次電話會議中，我們將討論未來財務與營運表現展望、公司策略、產品規劃、成本措施、我們對 Domo 的收購與整合，以及其他可能被視為前瞻性陳述的資訊。此類前瞻性資訊僅代表 Progress Software 截至今日的展望與指引，並受風險與不確定性影響，實際結果可能出現重大差異。關於可能影響我們未來業績與營運的因素說明，請參閱我們向 SEC 提交的文件中的風險因素，特別是最近一期 Form 10-K 的「風險因素」章節，以及與本次公告一併提交的最新 10-Q 文件。Progress 不承擔更新本次電話會議中所包含之前瞻性陳述的義務。

Additionally, please note that all the financial figures referenced in the call will be non-GAAP measures unless otherwise indicated. You can find a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP figures in our earnings press release, which also was issued at the market close today. This document contains additional information related to our financial results for the third quarter of fiscal year 2026, and I recommend that you reference it for specific detail.

此外，請注意，除非另有說明，本次電話會議中提及的所有財務數字皆為非 GAAP 指標。您可在我們於今日收盤後發布的財報新聞稿中，找到非 GAAP 財務指標與最直接可比 GAAP 數字之間的調節表。該文件亦包含與 2026 會計年度第三季財務結果相關的其他資訊，我建議各位參考以取得具體細節。

We’ve also provided a slide presentation that contains supplemental data for our second quarter, or excuse me, for our third quarter, and provides additional highlights, financial metrics and information regarding the Domo acquisition. Both the earnings release and the supplemental presentation are available on the Investor Relations section of our website at investors.progress.com. Just a reminder that today’s call is being recorded in its entirety and will be available for replay on the investor relations website shortly after we finish this call.

我們也提供了一份投影片簡報，內含第三季（更正，是第三季）的補充資料，並提供更多重點、財務指標以及與 Domo 收購案相關的資訊。財報新聞稿與補充簡報皆可在我們網站 investors.progress.com 的投資人關係專區取得。提醒各位，今天的電話會議將全程錄音，並會在會議結束後不久於投資人關係網站提供重播。

Yogesh, we’re done with that. We’ll turn it over to you.

Yogesh，我們這部分就到這裡。接下來交給你。

Thank you, Mike, and good afternoon, everyone. Thank you for joining us today to discuss the results of our third quarter of fiscal year 2026 and to also talk a bit about our acquisition of Domo, which just closed last week.

謝謝你，Mike，各位下午好。感謝各位今天加入我們，一起討論 2026 會計年度第三季的業績，也談談我們上週剛完成交割的 Domo 收購案。

We delivered another solid quarter as ARR was up over 1% in constant currency to $873 million, and net retention rate finished at 99%, within our expected range of 99% to 100%, consistent over the last several quarters. Q3 revenue was $246 million, right around the midpoint of our most recent guidance, with notable strength again, thanks to OpenEdge, DataDirect, MOVEit, and LoadMaster, among other products.

我們再度交出穩健的一季表現：以固定匯率計算，ARR 成長超過 1% 至 8.73 億美元；淨留存率為 99%，落在我們預期的 99% 至 100% 區間內，且與過去數季一致。第三季營收為 2.46 億美元，約落在我們最近一次指引的中點附近；其中 OpenEdge、DataDirect、MOVEit 與 LoadMaster 等產品再次展現明顯強勁動能。

Operating margins were exceptionally strong again, coming in at 43%, while earnings per share increased 13% to $1.69, exceeding the high end of our guidance. Cash flow continued to be very strong in the quarter as DSOs improved significantly, and we continue to strengthen our balance sheet through aggressive debt paydown. We had a strong third quarter and our outlook for Q4 remains positive with the rest of the fiscal year on track. You’ll hear more details from Anthony on our results and guidance later.

營業利潤率再次表現格外強勁，達到 43%；每股盈餘成長 13% 至 1.69 美元，超越我們指引區間的上緣。本季現金流持續非常強勁，因應收帳款週轉天數（DSO）顯著改善；同時我們也透過積極償還債務，持續強化資產負債表。我們第三季表現強勁，對第四季的展望仍然正向，整個會計年度也維持在既定軌道上。稍後 Anthony 會就我們的業績與指引提供更多細節。

Let me share some color on our Q3 results. Our performance again demonstrated the strength and durability of our portfolio, which deals across some of the world’s largest enterprises and government agencies, reflecting the mission-critical role our software plays in their business. Several major customers across a wide range of industries and geographies recommitted to and expanded their relationship with Progress.

我再補充一些第三季業績的背景說明。我們的表現再次展現產品組合的強度與韌性；我們與全球一些最大型的企業與政府機構合作，反映出我們的軟體在其業務中扮演關鍵任務（mission-critical）的角色。多家來自不同產業與地區的重要客戶，重新承諾並擴大與 Progress 的合作關係。

This included major financial institutions, health organizations, global energy leaders, technology companies, several state agencies in the US, as well as one of the largest European law enforcement agencies. We also continued to gain momentum in highly regulated and security-sensitive environments where trust and performance matter most.

其中包括大型金融機構、醫療健康組織、全球能源領導企業、科技公司、美國多個州政府機構，以及歐洲規模最大的執法機構之一。我們也持續在高度監管且對資安敏感的環境中取得動能，在這些環境中，信任與效能最為關鍵。

These organizations are using Progress products for mission-critical systems to securely manage and leverage their data and content, to automate complex processes, and to modernize their infrastructure. Customers consistently cite reliability, security, compliance, and operational efficiency as the key reasons for deepening their relationships with us.

這些組織使用 Progress 產品來支援關鍵任務系統，安全地管理並運用其資料與內容、自動化複雜流程，以及現代化其基礎架構。客戶一再指出，可靠性、安全性、合規性與營運效率，是他們深化與我們合作關係的關鍵原因。

Most importantly, we continue to see growing interest in our AI-enabled capabilities as customers rely on Progress products to deliver the context and control for AI, so that they can achieve their business goals with confidence.

最重要的是，我們持續看到客戶對我們 AI 強化能力的興趣日益提升；客戶仰賴 Progress 產品為 AI 提供「情境（context）」與「控制（control）」，使其能更有信心地達成商業目標。

Context grounds AI in trusted data, institutional knowledge, and business policies to produce reliable and dependable outcomes. While control ensures security, governance, and the management of the infrastructure and the cost of their AI projects. Organizations that successfully bring these two elements together are the ones that can scale AI with confidence and realize lasting business value. That is one of the reasons we are so excited to add Domo’s AI and data platform business to Progress, which was a defining strategic development during the third quarter.

情境能讓 AI 以可信賴的資料、組織知識與商業政策為基礎，產生可靠且可依賴的結果。而控制則確保安全性、治理，以及 AI 專案的基礎架構與成本管理。能成功將這兩個要素結合的組織，才能有信心地擴大 AI 規模並實現長期的商業價值。這也是我們對將 Domo 的 AI 與資料平台業務納入 Progress 感到非常振奮的原因之一；這項收購是第三季一項具指標性的策略發展。

What makes the Domo business particularly exciting is its ability to connect data across the enterprise, apply AI to that data, and deliver trusted insights and actions directly into business workflows. Customers across all industries are using Domo to build AI-powered applications and agents, to automate decision-making, and to empower employees with self-service access to real-time intelligence. They are using Domo offerings to turn data into measurable business outcomes from accelerating growth to improving operational efficiencies.

Domo 業務特別令人振奮之處，在於它能連結企業內部各處的資料，將 AI 應用於這些資料，並把可信的洞察與行動直接帶入業務工作流程。各行各業的客戶都在使用 Domo 建置 AI 驅動的應用程式與代理（agents）、自動化決策，並讓員工以自助方式存取即時情報。他們運用 Domo 的方案把資料轉化為可衡量的商業成果，從加速成長到提升營運效率。

For example, a leading sports broadcaster connects all fan social interactions, customer service conversations, and operational data using Domo, creating a real-time intelligence capability that provides the context to understand what fans are experiencing across live events and how to improve that experience. This allows the broadcaster to have the confidence to make real-time data-driven decisions, improve fan engagement, while resolving issues quickly and continuously enhancing the viewing experience of its audience.

例如，一家領先的體育轉播業者使用 Domo 串聯所有粉絲社群互動、客服對話與營運資料，建立即時情報能力，提供理解粉絲在現場賽事中體驗的情境脈絡，並據此改善體驗。這讓該轉播業者能有信心做出即時、以資料為基礎的決策，提升粉絲互動，同時快速解決問題並持續強化觀眾的收視體驗。

From a technology and product perspective, the strategic opportunity for integrating Domo’s cloud-native AI and data platform with Progress’ data platform is extremely compelling. As data and data platforms become increasingly important layers in the AI-enabled enterprise architecture, combining and integrating Domo’s data transformation, analytics, and agentic workflow capabilities provide significant acceleration of our overall data platform.

從技術與產品角度來看，將 Domo 的雲原生 AI 與資料平台與 Progress 的資料平台進行整合的策略機會極具吸引力。隨著資料與資料平台在 AI 強化的企業架構中成為愈來愈重要的層級，結合並整合 Domo 的資料轉換、分析，以及代理式（agentic）工作流程能力，將大幅加速我們整體資料平台的發展。

Progress already provides critical elements of the AI-enabled data architecture, including ontology management, unstructured data management, semantic analysis, agentic RAG, intelligent decisioning, and AI-powered automated workflows. Domo adds real-time data integration and transformation, analytics and visualization, automation, and agentic orchestration. Together, we can deliver a far more complete AI-ready data layer that takes complex data in and delivers deeper insights, automation, and trusted AI-driven outcomes.

Progress 已經提供 AI 賦能資料架構的關鍵要素，包括本體（ontology）管理、非結構化資料管理、語意分析、代理式 RAG、智慧決策，以及 AI 驅動的自動化工作流程。Domo 則帶來即時資料整合與轉換、分析與視覺化、自動化，以及代理式協同編排。結合雙方能力，我們能提供更完整、可支援 AI 的資料層，將複雜資料導入並產出更深入的洞察、自動化，以及可信賴的 AI 驅動成果。

Now that Domo is a part of Progress, we see significant opportunities to deepen our relationship with customers to help them realize even greater value from their data analytics and AI investments. We have already begun to engage with Domo customers who are eager to hear how we intend to help them accelerate their AI journeys.

如今 Domo 已成為 Progress 的一部分，我們看見與客戶深化關係的重大機會，協助他們從資料分析與 AI 投資中實現更高價值。我們已開始與 Domo 客戶互動，他們迫切想了解我們將如何協助他們加速 AI 旅程。

Our General Manager of the data platform business, John Ainsworth, and I have spoken to several of these customers who have shared their excitement about this acquisition and what it could mean for them. We also met with Domo’s customer advisory board yesterday, which represents a broad cross-section of their global customer base to share ideas, hear their input, and share our plans. We have launched a global customer meeting tour covering a dozen cities around the world, where at each event, our senior executives expect to meet with 50 to 100 Domo customers. The first of these customer events also took place earlier this week.

我們資料平台業務的總經理 John Ainsworth 與我，已與其中數位客戶交流；他們分享了對此次收購的興奮，以及這對他們可能意味著什麼。我們昨天也與 Domo 的客戶諮詢委員會會面；該委員會代表其全球客戶群的廣泛面向，我們藉此分享想法、聽取意見，並說明我們的計畫。我們已啟動全球客戶巡迴會議，涵蓋全球約一打城市；在每場活動中，我們的資深主管預期將與 50 到 100 位 Domo 客戶會面。其中第一場客戶活動也已於本週稍早舉行。

I want to especially thank the Domo team for continuing to stay focused on their business while dealing with the significant distractions and uncertainty this year, both prior to the announcement of the acquisition, as well as the period between the deal announcement and closing.

我特別要感謝 Domo 團隊：在今年面對重大干擾與不確定性之際，無論是在收購案公告之前，或是在交易公告到完成交割之間的期間，他們仍持續專注於本業。

Their dedication is truly commendable. For example, they completed all the work on a new release of the product, further extending the capabilities of the Domo offering, which we announced this morning. Anthony will discuss in detail the financial aspects of the deal and the significant financial opportunity that Domo brings, but let me share some highlights.

他們的投入確實值得稱許。例如，他們完成了產品新版發佈的所有工作，進一步擴展 Domo 產品的能力，而我們也在今天早上對外宣布。Anthony 將詳細說明本交易的財務面向，以及 Domo 帶來的重大財務機會；但我先分享幾個重點。

As you recall, we paid $400 million for Domo, and because it is an asset purchase, we expect meaningful tax benefits and other favorable adjustments. Because of this very attractive valuation, we are excited about the shareholder value creation opportunity that Domo represents.

如各位所知，我們以 4 億美元收購 Domo；由於這是一項資產收購，我們預期可獲得可觀的稅務利益及其他有利調整。基於這個非常具吸引力的估值，我們對 Domo 所代表的股東價值創造機會感到振奮。

I want to remind folks that the most exciting aspect of Domo’s AI and data platform business is the part that is on the consumption-based model. Throughout our due diligence process, we have believed that the seat-based business of Domo will continue to see significant churn, and that we would also continue to de-emphasize Domo services business, something Domo itself had already started.

我想提醒大家，Domo 的 AI 與資料平台業務中最令人振奮的部分，是採用「按使用量計費」（consumption-based）的模式。在整個盡職調查過程中，我們一直認為 Domo 的「按席位計費」（seat-based）業務將持續出現顯著流失（churn）；同時，我們也會持續降低 Domo 服務業務的比重，而這也是 Domo 自身早已開始的方向。

As we manage the planned churn, the conversion of remaining seat-based customers to the consumption-based model, and begin the work of maximizing customer retention and ARR, we anticipate that the steady state revenue from Domo will stabilize in the range of $280 million to $290 million, which again, will largely come from the consumption-based model. Once Domo is fully integrated, which we plan to complete by the end of FY27, we believe that Domo will annually add well over $100 million of EBITDA to our business.

在我們管理既定的流失、將剩餘的按席位客戶轉換為按使用量計費模式，並開始最大化客戶留存與 ARR 的工作之際，我們預期 Domo 的穩態營收將穩定在 2.8 億至 2.9 億美元區間；同樣地，這些營收將主要來自按使用量計費模式。一旦 Domo 完成全面整合（我們計畫於 FY27 年底前完成），我們相信 Domo 每年將為我們的業務新增遠超過 1 億美元的 EBITDA。

In the meantime, our immediate priorities are to apply our proven integration playbook to integrate Domo’s business into ours, to strengthen the customer retention, and deliver our operating targets for the business by end of FY27.

同時，我們當前的優先事項是運用我們經驗證的整合作戰手冊，將 Domo 的業務整合進我們的體系、強化客戶留存，並在 FY27 年底前達成該業務的營運目標。

In closing, Q3 was another impressive quarter for Progress with a lot going on. We delivered strong results, expanded margins, exceeded earnings expectations, and again generated excellent cash flow. At the same time, we executed on an integral component of our total growth strategy, completing yet another acquisition that adds significant scale to our business, expands our AI opportunity, and one which will contribute meaningfully to earnings and free cash flow.

最後，第三季對 Progress 而言又是令人印象深刻的一季，期間有許多進展。我們交出強勁成果、擴大毛利率（margins）、超越獲利預期，並再次創造優異的現金流。同時，我們也執行了整體成長策略中的關鍵一環，完成另一項收購，為我們的業務帶來顯著規模、擴大我們的 AI 機會，且將對獲利與自由現金流做出實質貢獻。

We’re confident in the value Domo brings to Progress and in our ability to deliver that value to customers and to our shareholders. I want to thank our employees around the world this quarter, especially for delivering strong results while helping us make the largest acquisition in the industry. I continue to be in awe of their continued dedication and outstanding work.

我們對 Domo 為 Progress 帶來的價值，以及我們將該價值交付給客戶與股東的能力充滿信心。我也要感謝本季全球各地的員工，特別是在協助我們完成業界最大收購案的同時，仍交出強勁成果。我持續對他們一貫的投入與卓越表現感到敬佩。

With that, Anthony, over to you.

接下來，Anthony，交給你。

Great. Thanks, Yogesh, and good afternoon, everyone. Q3 was another quarter of strong execution. We delivered ARR growth of more than 1%, an operating margin of 43%, earnings per share well above the high end of our range, and adjusted free cash flow growth of 17%. We also closed our acquisition of Domo’s AI and data platform business last week. I’m going to spend a little more time on Domo today and provide some detail on what we bought and what it means for our longer-term model.

好的。謝謝你，Yogesh，各位下午好。第三季是又一個執行力強勁的季度。我們的 ARR 成長超過 1%，營業利益率達 43%，每股盈餘遠高於我們區間上緣，調整後自由現金流成長 17%。我們也在上週完成對 Domo 的 AI 與資料平台業務之收購交割。今天我會花更多時間談 Domo，並提供一些細節，說明我們買了什麼，以及這對我們長期模型的意義。

With that, let’s get right into the numbers. I’ll start with ARR, which remains our key metric for assessing top-line performance. We closed Q3 with ARR of approximately $873 million, representing more than 1% pro forma year-over-year growth on a constant currency basis.

那麼，我們直接進入數字。我先從 ARR 談起；ARR 仍是我們評估營收端表現的關鍵指標。第三季結束時，我們的 ARR 約為 8.73 億美元，以固定匯率基礎計算的備考（pro forma）年增率超過 1%。

For clarity, our pro forma results include ARR from acquired businesses in all periods presented. Our Q3 results exclude Domo, which closed after quarter end and will be included in our ARR beginning next quarter. The year-over-year growth in ARR was led by OpenEdge, along with contributions from LoadMaster, WhatsUp Gold, our DevTools products, and MOVEit. In addition, our net retention rate for the quarter was again strong, coming in at 99%.

為了釐清，我們的備考結果在所呈列的所有期間均包含已收購業務的 ARR。我們第三季結果不包含 Domo，因其在季末後完成交割，並將自下季起納入我們的 ARR。ARR 的年增主要由 OpenEdge 帶動，並有 LoadMaster、WhatsUp Gold、我們的 DevTools 產品，以及 MOVEit 的貢獻。此外，本季的淨留存率（net retention rate）同樣強勁，達到 99%。

Q3 revenue of $246 million was within our guidance range. With the timing of contract renewals affecting quarterly revenue, I think it is worthwhile to point out that our year-to-date constant currency revenue growth of 2% maps very closely to our ARR growth rate, both squarely in the low single-digit range.

第三季營收 2.46 億美元落在我們的財測區間內。由於合約續約時點會影響季度營收，我認為值得指出的是：我們年初至今以固定匯率計算的營收成長 2%，與我們的 ARR 成長率高度一致，兩者皆明確落在低個位數成長區間。

Turning to expenses. Total cost and operating expenses were approximately $141 million for the quarter, down approximately $10 million or 6% compared to the year-ago quarter. The decline reflects disciplined cost management across our business, and it contributed significantly to our earnings outperformance in the quarter.

接著談費用。本季總成本與營運費用約為 1.41 億美元，較去年同期減少約 1,000 萬美元或 6%。此下降反映我們在全公司範圍內的嚴謹成本管理，並對本季獲利超預期做出重大貢獻。

Operating income of $105 million increased 6% year-over-year, resulting in an operating margin of 43%, up 300 basis points from a year ago. Earnings per share of $1.69 came in well above the high end of our guidance range and grew approximately 13% on a year-over-year basis.

營業利益 1.05 億美元年增 6%，使營業利益率達 43%，較去年同期提升 300 個基點。每股盈餘 1.69 美元遠高於我們財測區間上緣，並以年增基礎計算成長約 13%。

Turning now to a few balance sheet and cash flow metrics. We ended the quarter with cash and cash equivalents of $114 million and total debt of approximately $1.24 billion for a net debt position of approximately $1.1 billion. Our net leverage ratio at the end of Q3 was approximately 2.7 times on a trailing 12-month basis.

現在轉到幾項資產負債表與現金流量指標。本季末，我們的現金及約當現金為1.14億美元，總負債約為12.4億美元，因此淨負債部位約為11億美元。第三季末，我們的淨槓桿比率以過去12個月為基礎約為2.7倍。

DSO for the quarter was 42 days, an improvement of 13 days compared to 55 days in the year-ago quarter, and a substantial improvement from 73 days at the end of fiscal 2025. Deferred revenue was approximately $406 million at the end of Q3, an increase of approximately $25 million compared to the year-ago quarter.

本季DSO（應收帳款週轉天數）為42天，較去年同期的55天改善13天，且相較於2025會計年度末的73天亦有顯著改善。第三季末遞延收入約為4.06億美元，較去年同期增加約2,500萬美元。

Adjusted free cash flow was $87 million for the quarter, an increase of 17% compared to the prior year quarter, and unlevered free cash flow of $101 million, an increase of 14%. On a year-to-date basis, adjusted free cash flow is $265 million, an increase of 44% over the same period last year, reflecting materially improved collections along with continued strong operating performance.

本季調整後自由現金流為8,700萬美元，較去年同期增加17%；無槓桿自由現金流為1.01億美元，增加14%。以年初至今計，調整後自由現金流為2.65億美元，較去年同期增加44%，反映收款情況大幅改善，並伴隨持續強勁的營運表現。

As for capital allocation, during the third quarter, we repaid $60 million against our revolving credit facility, bringing our year-to-date debt repayment to $170 million. We repurchased approximately $17 million of Progress stock, bringing our year-to-date total to approximately $72 million. At the end of Q3, we had approximately $131 million remaining under our current share repurchase authorization.

就資本配置而言，第三季期間我們償還循環信用額度（revolver）6,000萬美元，使年初至今的還債總額達到1.7億美元。我們回購約1,700萬美元的Progress股票，使年初至今總額約為7,200萬美元。第三季末，在目前的庫藏股回購授權下，我們尚餘約1.31億美元可用額度。

Now let me turn to Domo. As mentioned, we closed our acquisition of Domo’s AI and data platform business last week, and the integration process is already well underway. The headline purchase price was $400 million in cash. If you include the minimum cash balance we received at closing and the net effect of assumed transaction expenses, our actual cash outlay was $390 million, which we funded by drawing on our revolving credit facility. We again intend to de-lever quickly and aggressively as we’ve done following all of our prior acquisitions.

接下來我談談Domo。如前所述，我們已於上週完成對Domo之AI與資料平台業務的收購，整合流程也已在積極推進中。公告的交易對價為4億美元現金。若將交割時我們收到的最低現金餘額，以及承擔之交易費用的淨影響納入考量，我們實際現金支出為3.9億美元，並透過動用循環信用額度來籌資。我們再次計畫如同過往所有收購案後一樣，迅速且積極地去槓桿。

In his prepared remarks, Yogesh mentioned planned churn among some of Domo’s products. Let me provide a little more detail around that. Domo’s top line today annualizes at approximately $300 million and includes a strong and stable consumption-based revenue model, along with seat-based revenue and a services business, both of which were in decline prior to the acquisition. In our model for Domo, we anticipated continued seat-based churn and declines in services revenue.

在其事先準備的談話中，Yogesh提到Domo部分產品的計畫性流失（churn）。我再就此補充一些細節。Domo目前的營收年化約為3億美元，包含強勁且穩定的以用量計費（consumption-based）營收模式，以及以席次計費（seat-based）營收與服務業務；後兩者在收購前即呈下滑。在我們對Domo的模型中，我們已預期以席次計費的持續流失，以及服務營收的下滑。

Now that the deal is closed, our outlook for Domo is that we expect the top line to settle at a steady state of approximately $280 million to $290 million. To elaborate further, we view Domo’s top line as the combination of three elements.

交易完成後，我們對Domo的展望是：我們預期其營收將在約2.8億至2.9億美元的穩態水準落定。進一步說明，我們將Domo的營收視為由三個要素組成。

First, roughly 10% of Domo’s revenue is professional services, and that revenue has been declining and will decline further as we shift delivery towards partners. This is what we do often in acquisitions, and it’s margin accretive.

第一，Domo約10%的營收來自專業服務，而該營收一直在下滑；隨著我們將交付更多轉向合作夥伴，該營收將進一步下降。這是我們在收購案中經常採取的作法，且有助於提升毛利/利潤率（margin accretive）。

Second, a portion of Domo’s customers sit in legacy seat-based agreements, and we plan for a significant amount of that to convert to a consumption-based model or to churn at renewal.

第二，Domo部分客戶仍在傳統的以席次計費合約中，我們預期其中相當一部分將在續約時轉為以用量計費模式，或在續約時流失。

Third, and most important, is Domo’s consumption-based platform, which, as Yogesh outlined, is strategically aligned to Progress’ AI data platform, represents more than 85% of Domo’s ARR, and carries significantly higher net retention rates.

第三，也是最重要的，是Domo的以用量計費平台；如Yogesh所述，該平台在策略上與Progress的AI資料平台高度一致，佔Domo的ARR（年度經常性收入）超過85%，且具備顯著更高的淨留存率。

Yogesh covered the strategic rationale for buying Domo’s AI and data platform business. From a finance perspective, it’s worth highlighting the math because profitability is one of the key tenets in the M&A pillar of our total growth strategy. Using the steady state revenue range I provided, Progress paid roughly 1.44 times revenue, and from an earnings perspective, roughly 3.5 times pro forma EBITDA. At Domo’s scale, that is a significant addition to our earnings power and cash flow.

Yogesh已說明收購Domo之AI與資料平台業務的策略理由。從財務角度來看，值得強調其計算邏輯，因為獲利能力是我們整體成長策略中M&A支柱的關鍵信條之一。以我提供的穩態營收區間計算，Progress支付的價格約為營收的1.44倍；以獲利角度來看，約為備考（pro forma）EBITDA的3.5倍。以Domo的規模而言，這將對我們的獲利能力與現金流帶來顯著增益。

All of this brings me to fiscal 2027, and we’ll provide formal guidance in January. But given the size of this transaction, we think it’ll be helpful to highlight two mechanical effects of the transaction and how they’ll show up in our numbers next year.

以上內容帶我談到2027會計年度，我們將在1月提供正式指引。但鑑於本次交易規模，我們認為有必要先說明兩項交易帶來的機械性影響，以及它們明年將如何反映在我們的數字上。

The first is operating margin. For the full year 2027, Domo will likely run slightly below 30% operating margin as the synergies ramp, and that will result in some compression of Progress’ overall 2027 operating margin, maybe 100 to 200 basis points. So a Progress margin in the range of 38%-39% might look more like 36% to 37% as the integration proceeds. I want to be clear about this. Any 2027 margin compression is the result of integration timing, and it reverses as the synergies are fully realized.

第一項是營業利益率。在2027全年，隨著綜效逐步釋放，Domo的營業利益率可能略低於30%，這將使Progress整體2027年的營業利益率出現一些壓縮，可能約100至200個基點。因此，Progress原本約38%至39%的利益率區間，在整合推進期間可能看起來更像36%至37%。我想把這點說清楚。任何2027年的利益率壓縮都是整合時點所致，待綜效完全實現後將會回轉。

The second point I want to highlight is interest expense. We drew $390 million on our revolver to fund this transaction, and the incremental interest expense in 2027 is expected to be approximately $21 million, and that will decline as we pay the revolver down. Net both of those items, we still expect fiscal 2027 to be a year of substantial earnings growth because Domo’s earnings contribution meaningfully exceeds the interest cost of funding it. As synergies fully ramp into fiscal 2028, both the margin dilution and a good portion of the interest drag reverse and deliver even more earnings growth.

第二點我想強調的是利息費用。我們為了完成本次交易動用循環信用額度3.9億美元，預期2027年的新增利息費用約為2,100萬美元，並將隨著我們償還循環額度而下降。將上述兩項因素合併考量後，我們仍預期2027會計年度將是獲利大幅成長的一年，因為Domo的獲利貢獻顯著高於為其籌資所產生的利息成本。當綜效在2028會計年度完全到位後，利益率稀釋與相當一部分的利息拖累都將回轉，帶來更高的獲利成長。

Turning now to our outlook. For the fourth quarter of 2026, Domo will contribute approximately two months of activity to our results, and we expect revenue to be between $297 million and $305 million, and earnings per share between $1.24 and $1.33. For the full year 2026, we are raising our outlook and now expect revenue of between $1.044 billion and $1.052 billion, an increase of more than $50 million from our prior guidance, driven by the addition of Domo for a partial quarter, together with solid underlying performance in our base business.

接下來談我們的展望。對於2026年第四季，Domo將為我們的業績貢獻約兩個月的活動，我們預期營收介於2.97億至3.05億美元之間，每股盈餘介於1.24至1.33美元之間。對於2026全年，我們上調展望，現預期營收介於10.44億至10.52億美元之間，較先前指引增加逾5,000萬美元，主要由於Domo在單季中部分期間的併入，以及我們核心業務穩健的基本面表現。

We expect an operating margin for the year of 38%, which includes the impact of taking on Domo’s business, which was running roughly break even at close. We expect adjusted free cash flow of between $275 million and $283 million, and unlevered free cash flow of between $330 million and $338 million, both slight increases from our prior guidance. Finally, we expect earnings per share of between $6.15 and $6.23, an increase from our prior guidance. Our guidance for full year EPS assumes a tax rate of 20% and approximately 42 million weighted shares outstanding.

我們預期全年營業利益率為38%，其中包含承接Domo業務的影響；該業務在交割時大致處於損益兩平。我們預期調整後自由現金流介於2.75億至2.83億美元之間，無槓桿自由現金流介於3.30億至3.38億美元之間，兩者皆較先前指引略為上調。最後，我們預期每股盈餘介於6.15至6.23美元之間，較先前指引上調。我們對全年EPS的指引假設稅率為20%，加權平均流通股數約為4,200萬股。

In closing, Q3 again demonstrated the durability of our business. Strong margins, strong cash generation, and continued improvement in our balance sheet and collections. To echo Yogesh, we are extremely excited to welcome Domo to Progress, and we are looking forward to continuing to execute on our total growth strategy.

最後，第三季再次展現了我們業務的韌性。強勁的利潤率、強勁的現金創造能力，以及我們資產負債表與收款狀況的持續改善。呼應 Yogesh 的說法，我們非常興奮地歡迎 Domo 加入 Progress，也期待持續執行我們的整體成長策略。

With that, I would like to open the call for questions.

接下來，我想開放電話會議進入提問環節。

(Operator Instructions)

(接線員指示)

John DiFucci, Guggenheim Securities.

John DiFucci，Guggenheim Securities。

Hey, this is Lawrence Vensko on for John DiFucci. Nice job, team. You have proven that you can improve margins following an acquisition. As we think about Domo and the journey to Progress margins, where do you expect to gain the most leverage? How much leverage will you essentially get from redundant public company cost elimination or G&A sales and marketing or restructuring? I just have a follow-up for Anthony.

嗨，我是代替 John DiFucci 出席的 Lawrence Vensko。團隊表現很棒。你們已經證明，在併購之後可以提升利潤率。當我們思考 Domo 以及邁向 Progress 利潤率水準的旅程時，你們預期最大的槓桿會來自哪裡？你們基本上會從重複的上市公司成本消除，或是一般與行政（G&A）、銷售與行銷，或重整中獲得多少槓桿？我還有一個要追問 Anthony 的問題。

So, hey, Lawrence. As you know, we look at, first of all, two public company expenses versus one. There is some savings there, as you already recognize. Definitely G&A is an area with a significant savings because we are able to leverage our existing G&A structure, integrate their business into ours, use our financial systems, use our HR systems, and all that stuff, right? So there is significant synergies there.

好的，嗨，Lawrence。如你所知，我們首先會看兩家上市公司的費用變成一家。那裡確實有一些節省，你也已經注意到了。另外，一般與行政（G&A）肯定是節省幅度很大的領域，因為我們可以運用既有的 G&A 架構，把他們的業務整合到我們體系中，使用我們的財務系統、使用我們的人資系統等等，對吧？所以那裡有相當可觀的協同效益。

Also, when it comes to go-to-market expenses, the reality is that Domo had a strategy around trying to grow the top line very aggressively. We expect the top line of Domo to be mostly stable, maybe grow somewhat. But it is not the same level of focus on top line growth that Domo had.

此外，在 go-to-market（市場進入）費用方面，現實是 Domo 先前的策略是非常積極地推動營收成長。我們預期 Domo 的營收大致會保持穩定，可能會有些成長。但不會像 Domo 過去那樣，把焦點放在同等程度的營收成長上。

So I think there are opportunities in multiple places. Anthony also mentioned that we would move the professional services efforts to some degree to partners, because again, it is a lower margin business than the softer side of the business.

所以我認為在多個面向都有機會。Anthony 也提到，我們會在某種程度上把專業服務的工作轉移給合作夥伴，因為相較於軟體業務那一端，這是一個毛利較低的業務。

So I think the opportunities are across the board. And Lawrence, as we go into these acquisitions, we actually plan those extremely carefully and methodically and thoughtfully. We have done that. Our integration plans and synergy plans are not only in place, but we have begun to execute on those. And we are confident, and I am truly confident, that we will get margins to the Progress range by end of FY27.

因此我認為機會是全面性的。而且 Lawrence，當我們進行這些併購時，我們其實會非常謹慎、有系統且深思熟慮地規劃。我們已經這麼做了。我們的整合計畫與協同效益計畫不僅已經就緒，也已開始執行。我們有信心，而且我也真的有信心，我們會在 27 財年年底前把利潤率提升到 Progress 的區間。

That is really helpful. Thanks, Yogesh. Both you and Anthony also talked about how free cash flow is very strong this quarter, and it grew almost 20%, which is above where we were probably expecting. Just want to make sure, was there anything unique in cash flow this quarter that could have a negative effect on next quarter cash flow, or was this more of just a reflection of just efficient management of the business?

這非常有幫助。謝謝你，Yogesh。你和 Anthony 也都提到本季自由現金流非常強勁，成長接近 20%，高於我們原本大概的預期。我想確認一下，本季現金流是否有任何一次性因素，可能會對下季現金流造成負面影響？還是這更多只是反映了對業務的高效率管理？

Thanks, Lawrence. Yeah, there definitely is. And I would say it has been in place for the full year 2026. If you recall, last year, there was a lot of discussion about ShareFile and the integration that was underway and some of the billing and collection challenges we had because it was an asset deal, and it was a divestiture out of a larger organization.

謝謝，Lawrence。是的，確實有。而且我會說這個情況在整個 2026 年都會存在。如果你還記得，去年大家討論很多 ShareFile，以及當時正在進行的整合，還有因為那是一筆資產交易、且是從更大型組織中剝離出來，導致我們在開立帳單與收款上遇到一些挑戰。

And so I would say in 2025, our cash flow was probably light because of that. And in 2026, we have seen -- because that operational backlog is gone and because the systems and the processes have gotten a lot better, we have seen pretty meaningful improvement in cash flow and collections due to ShareFile. So it is more that last year was light.

所以我會說在 2025 年，我們的現金流可能因此偏弱。而在 2026 年，因為那個營運積壓已經消除，且系統與流程改善了很多，我們看到因 ShareFile 帶來的現金流與收款出現相當明顯的改善。所以比較像是去年偏弱。

This year we are probably a little bit heavier than we would otherwise be. It probably normalizes next year. You can look at a normalized EBITDA free cash flow conversion ratio for us as opposed to trying to take this year’s number for cash flow and map it out.

今年我們可能比原本應有的水準稍微偏強一些。明年大概會回歸正常化。你可以看我們經正常化的 EBITDA 對自由現金流的轉換比率，而不是試圖用今年的現金流數字去外推。

Fatima Boolani, Citi.

Fatima Boolani，花旗（Citi）。

Yogesh, I wanted to ask you a strategy-leaning question as it relates to Progress dipping its toes in different modalities of pricing. Historically, you’ve seen capacity growth with some of your core flagship products. You’re now introducing and will be scaling the consumption modality by way of Domo.

Yogesh，我想就 Progress 在不同定價模式上「試水溫」的策略問一個偏策略面的問題。過去你們在一些核心旗艦產品上看到的是容量（capacity）成長。你們現在透過 Domo 引入並將擴大採用消耗（consumption）模式。

I’m wondering firstly, how much is just aggregate data growth and environmental growth with some of your customers as it relates to AI investments, how that is influencing maybe capacity growth trends on a unit basis?

我想先問，首先，隨著部分客戶在 AI 投資上的推進，整體資料量成長與環境成長，在多大程度上正在影響你們以單位計的容量成長趨勢？

And then relatedly, is there an opportunity to take some learnings from Domo’s consumption model and maybe propagating that to other parts of the portfolio and why or why not? Then I have a quick follow-up for Anthony, please.

另外相關地，是否有機會把 Domo 的消耗式模型的一些經驗，推廣到產品組合的其他部分？為什麼可以或為什麼不行？然後我還有一個要追問 Anthony 的簡短問題，謝謝。

Fatima, I think those are really wonderful and strategically important questions. Let me go through them one at a time. First of all, you are absolutely correct. The volume of data that businesses are trying to now consume and they realize the value of has suddenly become dramatically larger, and it is growing larger. It is showing up in two places. In places like obviously Domo products, it is showing up as greater consumption because it is on the use of the data.

Fatima，我覺得這些問題非常好，而且在策略上非常重要。我一個一個來回答。首先，你說得完全正確。企業現在試圖消耗（使用）並意識到其價值的資料量，突然大幅增加，而且還在持續增加。這會在兩個地方顯現。在像 Domo 這類產品上，會表現為更高的消耗量，因為它是基於資料使用量。

In products that we have that are more traditionally capacity based, it is showing up in greater capacity needs, bigger server needs, a larger number of servers, a larger compute capacity, therefore larger number of licenses on the server side. The vast, vast majority of Progress products are either on the volume of infrastructure or volume of data in terms of capacity more than anything else.

在我們一些較傳統、以容量為基礎的產品上，則會表現為更高的容量需求、更大的伺服器需求、更多的伺服器數量、更大的運算容量，因此在伺服器端需要更多授權數。Progress 絕大多數產品的計價，主要是依據基礎設施的規模或資料量（也就是容量），多於其他因素。

That also impacts our infrastructure management products positively. As the infrastructure gets more complex, as they bring in more compute infrastructure to deal with AI workloads, all of this leads to additional capacity needs when it comes to our observability products or our security products and so on.

這也會對我們的基礎設施管理產品帶來正面影響。隨著基礎設施變得更複雜，當他們為了處理 AI 工作負載而導入更多運算基礎設施時，這些都會帶來額外的容量需求，反映在我們的可觀測性（observability）產品或資安產品等方面。

I think that we see this whole rising tide on the use of data, the rising tide of complexity because of new types of hardware coming in. People are buying these AI compute boxes to put on people’s desktops, and they are putting them in their own private clouds because they do not want to pay and run models on those rather than trying to pay some other AI company for their foundational models, et cetera. All of these things add to complexity and scale on the infrastructure side as well. I think capacity growth will continue to be a driver for us and a positive trend for us.

我認為我們看到的是：資料使用的整體水位上升，以及因為新型硬體導入而帶來的複雜度水位上升。人們正在購買這些 AI 運算盒子放在員工桌面上，也把它們部署在自己的私有雲中，因為他們不想付費把模型跑在別人的環境裡，而是希望用自己的設備來跑模型，而不是付費給其他 AI 公司使用其基礎模型等等。所有這些都會增加基礎設施端的複雜度與規模。我認為容量成長將會持續成為我們的驅動因素，並且是對我們有利的趨勢。

I think the second part of the question is really, really important. One of the things that we are doing is that we have been, actually, over the last 90 days, analyzing Domo’s consumption-based model and trying to understand how it can apply across a variety of our products across our portfolio. I think there is a tremendous opportunity to do that because the vast majority of our products are something where the value is derived based on the amount of information, whether it is structured data or unstructured data, content, you name it, the amount of workflows that go through those, and therefore the consumption of that content or that data. I think those are the right metrics because that is where the business value lies.

我認為問題的第二部分真的、真的很重要。我們正在做的一件事是，實際上在過去 90 天裡，我們一直在分析 Domo 的以使用量為基礎（consumption-based）的模式，並試著理解它如何能夠套用到我們產品組合中各式各樣的產品上。我認為這裡有非常大的機會，因為我們絕大多數的產品，其價值來源取決於資訊的量——不論是結構化資料或非結構化資料、內容等等——以及流經其中的工作流程數量，因此也取決於對該內容或資料的使用量。我認為這些是正確的衡量指標，因為商業價值就在那裡。

Human seats are going to get replaced by automated AI agents. We all know that. Which is why I think the seat-based models are under pressure out there, and which is why we have been talking about the fact that the vast majority of our business is not on seat-based models. And so we continue to look at how we can apply the consumption model to any of our businesses that are still on seat-based models as well.

人力席位（human seats）將會被自動化的 AI 代理取代。我們都知道這點。這也是為什麼以席位為基礎（seat-based）的模式在市場上正承受壓力，也因此我們一直在談：我們絕大多數的業務並不是採用席位制模式。因此，我們也持續在看，如何把使用量模式套用到我們仍採席位制模式的任何業務上。

Also maybe some of our capacity models, we could basically use consumption as a metric for capacity as an alternate measure if customer wants those, rather than actual just volumes of data managed. They can say, no, we want to use the volumes of data used rather than managed. Because the volumes of data managed is actually right now growing extremely fast.

另外，對於我們的一些容量（capacity）模式，我們基本上也可以把使用量作為容量的衡量指標，作為替代度量方式——如果客戶想要那樣——而不是僅僅以實際被管理的資料量來衡量。他們可以說，不，我們想用實際被使用的資料量，而不是被管理的資料量。因為目前被管理的資料量其實正在以極快的速度成長。

As time goes on, the volumes of data being used is going to go up even faster, because the more the data becomes valuable because of AI, the more it’s going to get consumed. I think this is a really positive trend for businesses who are on the consumption-based model, for businesses who are on the capacity-based models, while they are a headwind, of course, for seat-based businesses.

隨著時間推進，被使用的資料量會成長得更快，因為資料因 AI 而變得越有價值，就會被消耗（consumed）得越多。我認為這對採用使用量模式的企業來說是非常正面的趨勢；對採用容量模式的企業而言也是如此；但對席位制企業來說，當然就是逆風。

I appreciate that detail so much. Thank you, Yogesh. Just as a follow-up, Anthony, as the business maybe transitions more towards a consumption orientation, as you evaluate the applicability of this model to more flagship products in the portfolio, is there something we need to consider or maybe reconsider as it relates to COGS profile or intrinsic profitability profile? Just because I noticed that you’re talking about a post-integration margin ZIP code around 38, 39. We’re certainly used to you delivering well above that, in the low 40s.

我非常感謝你提供這麼多細節。謝謝你，Yogesh。再追問一下，Anthony，當業務可能更朝向以使用量為導向轉型、你們評估把這個模式套用到產品組合中更多旗艦產品的適用性時，關於 COGS（銷貨成本）結構或內在獲利能力結構，有沒有什麼我們需要考量或可能需要重新思考的地方？因為我注意到你提到整合後的利潤率「區間」大約在 38、39 左右。我們當然習慣你們交出遠高於那個水準、也就是 40% 出頭的表現。

I’m wondering, as the business sort of transitions and incorporates more of this modality, does that sort of structurally change the upside, or put a ceiling rather, on your ability to deliver 40 post-integration operating margins? Thank you.

我想問的是，當業務逐步轉型並納入更多這種模式時，是否會在結構上改變上行空間，或者更像是對你們交出 40% 整合後營業利潤率的能力設下一個天花板？謝謝。

Yeah, sure. That’s a good question, and I’ve got my knee-jerk reaction or my knee-jerk response is that we generally guide 38% to 39% and deliver above that. But in reality, the point you’re making, I think, is true. Domo is another purely SaaS-based business that we’re acquiring. This is the second one in a row. ShareFile was also pure SaaS. The two of them together are going to be north of half a billion dollars of revenue.

好的，當然。這是個好問題。我直覺的反應是：我們通常指引 38% 到 39%，但實際交付會高於這個水準。但回到你提出的重點，我認為確實是成立的。Domo 是我們正在收購的另一個純 SaaS 型業務。這已經是連續第二個了。ShareFile 也是純 SaaS。兩者加總的營收將超過 5 億美元。

We also have other SaaS-based offerings within the portfolio that are growing. We do know that those SaaS-based offerings do have a slightly lower growth margin. I wouldn’t say we’re ready to sort of lower the margin outlook at this point, but we are certainly evaluating the pricing model and trying to understand from a COGS perspective with the significant mix shift towards SaaS now, is there a slight drag on growth margin, and therefore on our operating margin?

我們在產品組合中也有其他以 SaaS 為基礎的產品在成長。我們確實知道，這些 SaaS 產品的毛利率會略低一些。我不會說我們現在就準備下調利潤率展望，但我們確實正在評估定價模式，並試著從 COGS 的角度理解：在目前顯著朝 SaaS 組合占比轉移的情況下，是否會對毛利率造成些微拖累，進而影響我們的營業利潤率？

There’s potential for that, but I think that’s more of a scale issue as we scale. It could be slight where you would see a little bit of compression there, but I think it’s a slight compression probably with better retention and a much higher mix of SaaS revenue as part of our overall revenue. Thank you so much.

確實有這種可能性，但我認為這更多是規模（scale）問題，會隨著我們擴張而改善。你可能會看到些微的壓縮，但我認為那是小幅壓縮，同時伴隨更好的留存率，以及在我們整體營收中 SaaS 營收占比大幅提高。非常感謝。

(Operator Instructions)

（接線員指示）

Lucky Schreiner, D.A. Davidson.

Lucky Schreiner，D.A. Davidson。

Maybe just to start back on the margins and the guide for roughly 30% operating margins around Domo. Given just how rapidly the technology is evolving here, is there a factor of you need to keep investing in the product and keep that product relevant today as the landscape changes so quickly, factoring into some of that? Or how quickly could we maybe see some of the upside around the operating margin? Thanks.

也許先回到利潤率，以及你們對 Domo 大約 30% 營業利潤率的指引。考量到這裡技術演進的速度非常快，是否有一部分原因是你們需要持續投資產品、讓產品在快速變動的環境下仍保持相關性，因而影響到其中一些數字？或者我們大概多快能看到營業利潤率上行空間的一些改善？謝謝。

Hey, so Lucky, let me start, and then I want Anthony to follow up. I just want to clarify that what Anthony said is that for FY27, because their margin currently was basically zero when we acquired them, and the margin will ramp up over time as we go through the synergies. The margin contribution from the Domo side of the business will be around 30%.

嗨，Lucky，我先回答，然後我想請 Anthony 補充。我想先澄清一下：Anthony 的意思是，針對 FY27，因為我們收購時他們的利潤率基本上是零，而利潤率會在我們推進協同效益的過程中隨時間逐步拉升。從 Domo 這一側業務帶來的利潤率貢獻大約會在 30% 左右。

That’s not the steady-state margin of the Domo business. The steady-state margin of the Domo business we expect to be very similar to ours. So that’s one clarification I just wanted to make. Once synergies are done, expect the same type of margins as we’ve had in our recent past.

那並不是 Domo 業務的穩態（steady-state）利潤率。我們預期 Domo 業務的穩態利潤率會與我們非常接近。這是我想先做的第一個澄清。當協同效益完成後，請預期會是我們近年來一貫的那種利潤率水準。

In terms of whether we would be investing more, because the market changes, the reality, Lucky, is that the competitive landscape is shifting across our entire portfolio. If you look at how much we have invested in AI across our entire product portfolio with an R&D, it is truly meaningful. And we have delivered strong capabilities that are tremendously beneficial to our customers doing that.

至於我們是否會因市場變化而加大投資，現實是，Lucky，競爭格局正在我們整個產品組合中發生轉變。如果你看我們在整個產品組合的 AI 研發投入規模，那確實非常可觀。而我們也交付了強大的能力，對客戶而言帶來極大的效益。

So we will continue to invest in Domo as well. We invest in our teams, in our R&D expense every year. So it is a significant chunk of our operating expense line. And I actually think that that will continue because of that. And I think, we believe that with the right focus and with the right set of -- even the tools with AI are helping as well there on the other side, Lucky. They’re helping do more R&D work and do faster R&D work than one can do without it. So I think there’s benefits to leveraging AI for our engineering teams as well.

所以我們也會持續投資 Domo。我們每年都會投資我們的團隊、投資研發費用。因此它在我們的營業費用項目中占了相當大的一部分。而我其實認為，基於這些原因，這樣的投入會持續下去。同時我們也相信，只要有正確的聚焦，以及正確的一套——甚至 AI 工具本身也在另一端幫上忙，Lucky。它們正在幫助我們做更多研發工作、也能比沒有 AI 的情況更快完成研發工作。所以我認為，對我們的工程團隊而言，善用 AI 也同樣帶來好處。

With all that, I think we are very comfortable saying that the overall margins with Domo, once we have fully synergized it, the steady-state margins will be very similar to the rest of Progress. And we will be able to invest in the product the way we need to sustain its long-term viability and customer attractiveness and market competitiveness.

綜合以上，我認為我們非常有把握地說，Domo 在我們完成全面協同之後，其整體利潤率在穩態下將會與 Progress 其他業務非常相近。而且我們也將能以所需的方式投入產品，以維持其長期可行性、對客戶的吸引力以及市場競爭力。

I would just say that thanks for pointing that out, Yogesh. If it came across that Domo was only going to hit 30% margins, I should have clarified that that was really specific to '27, just to help people out with modeling in terms of how the synergies would progress through the year. That for the full year of 2027, they may hit 30%, but their exit rate is going to be a lot higher, obviously.

我只想說，謝謝你指出這一點，Yogesh。如果讓人覺得 Domo 只會達到 30% 的利潤率，那我應該澄清：那其實是非常針對 2027 年的數字，只是為了幫助大家在建模時理解協同效益會如何在一年中逐步體現。2027 全年他們可能會達到 30%，但很顯然，他們的期末退出利潤率會高得多。

Your question on R&D, I think our model is telling us we are going to invest at or even above levels we normally invest in Domo. So the investment level absolutely is going to be there from a product standpoint. We are in sort of high teens, close to 20% in terms of R&D as a percentage of revenue. So we do spend. I like to think that we spend in the right areas, and I think we will do the same with Domo.

關於你對研發（R&D）的問題，我認為我們的模型顯示，我們對 Domo 的投資將會達到、甚至高於我們通常的投資水準。因此，從產品角度來看，投資水準絕對會到位。以研發占營收比重來看，我們大約在十幾個百分點的高段，接近 20%。所以我們確實會花錢。我喜歡相信我們把錢花在正確的領域，我也認為我們會以同樣方式對待 Domo。

Maybe on cross-selling and with Domo, the asset purchase, the cross-selling motion is more practical and attractive today than previously. Is there any cross-sell factored into the $280 million to $290 million range that you gave for 2027? Or is that all potential upside? How quickly can you roll this out to both customer bases?

也許談談交叉銷售以及 Domo。隨著這次資產收購，交叉銷售的推進方式在今天比以前更務實、也更具吸引力。你們給出的 2027 年 2.8 億到 2.9 億美元區間，是否已經納入任何交叉銷售？還是說那全部都是潛在上行空間？你們能多快把這套做法推向兩邊的客戶群？

Yeah. So that is not factored into the $280 million to $290 million. As you know, I have said this before, our initial plan is to focus really on getting the business integrated, getting the synergies done, and so on and so forth. By the way, improving retention of customers, paying attention to existing customers that Domo has, making sure that they recognize that it is a better home for Domo than maybe they previously felt that they had.

是的。所以，那並沒有納入 2.8 億到 2.9 億美元之中。如你所知，我以前也說過，我們的初步計畫會先專注在把業務整合好、把協同效益落地等等。順帶一提，也包括提升客戶留存，關注 Domo 現有客戶，確保他們認知到：對 Domo 來說，這裡是一個比他們先前可能感受到的更好的歸宿。

Therefore, we have not factored any cross-sell in the model. So it is all upside, Lucky, and I think that as time goes on, we will talk about it. You know us, until we see actual traction and proof, we don't like to sort of throw out expectations. We are just a different style that way, and our style is to prove it out, see whether we are actually seeing that cross-sell.

因此，我們在模型中沒有納入任何交叉銷售。所以那全部都是上行空間，Lucky，我認為隨著時間推進，我們會再談這件事。你也了解我們，在看到實際動能與證據之前，我們不喜歡隨便拋出預期。我們的風格就是如此：先驗證、先看到是否真的出現交叉銷售。

That said, I am extremely excited about the cross-sell opportunity because you are right. The Progress data platform, combined with the data platform and AI capabilities of Domo, are truly compelling. And I really do see cross-sell opportunities over time. I think it is just premature right now for us to talk about sizing it.

話雖如此，我對交叉銷售機會非常興奮，因為你說得沒錯。Progress 的資料平台，結合 Domo 的資料平台與 AI 能力，確實非常有吸引力。而且我確實看到隨時間推進會有交叉銷售機會。只是現在談規模還為時過早。

John DiFucci, Guggenheim Securities.

John DiFucci，Guggenheim Securities。

Thank you. This is John DiFucci, not Lawrence. I apologize, guys. I am on the road. I was hoping to hear Yogesh’s public comments about Domo a little bit here, because as you guys know, we calculate you bought it for 1.1 times recurring revenue. I know, and you talked about, I think both Yogesh and Anthony mentioned there are other things that add value here, too, with Domo, and that is really unique, right? That kind of a multiple and highly attractive at first look. At the same time, for a recurring revenue company, which this probably means the market was questioning how recurring that revenue stream really is in the era of AI.

謝謝。我是 John DiFucci，不是 Lawrence。各位抱歉。我人在外出差。我本來希望能在這裡多聽一點 Yogesh 對 Domo 的公開評論，因為如各位所知，我們估算你們是以經常性收入的 1.1 倍買下它。我知道，而且你們也談到——我想 Yogesh 和 Anthony 都提到——這裡還有其他能增加價值的因素，而那確實很獨特，對吧？這樣的倍數乍看之下非常有吸引力。但同時，對一家經常性收入公司而言——而這大概意味著市場在 AI 時代質疑那條收入流到底有多「經常性」。

Yogesh, I know you spoke about this a little differently, Domo, and I have watched Domo for a while, probably all of us have, but I never really officially covered it. But can you explain how you think of more traditional analytics? I know Domo maybe is a little bit different, but it is also put in that bucket in the era of AI.

Yogesh，我知道你用不同的角度談過 Domo。我也觀察 Domo 一段時間了，可能我們大家都是，但我從未正式覆蓋它。不過你能否解釋一下，你如何看待較傳統的分析（analytics）？我知道 Domo 可能有點不同，但在 AI 時代它也常被歸在那一類。

Is there still a place for it, or are you changing Domo here, or are the probabilistic derivations of AI likely to displace traditional analytics, even though a lot of what they do is deterministic, which seems to be the conclusion of the market, okay? I am going to shut up. Go ahead, Yogesh.

它還有存在的空間嗎？還是你們會在這裡改造 Domo？或者 AI 的機率式推導很可能取代傳統分析——即便他們做的很多是確定性的——這似乎就是市場的結論，對吧？我就不多說了。請吧，Yogesh。

Yeah. Yeah, no. John, I think that you are right that there is a segment of analytics that AI can and will disrupt. And especially when it comes to presentation. When you think of analytics, there is the part of analytics that says, how do I bring data together from hundreds of different sources? How do I transform it? How do I rationalize it? How do I get semantics into it and apply ontologies to it?

是的。是的，不。John，我認為你說得對：分析領域中確實有一部分會被 AI 顛覆，而且也將會被顛覆。尤其是在呈現（presentation）方面。當你想到分析時，其中有一部分是在說：我如何把來自數百個不同來源的資料整合在一起？我如何轉換它？我如何使其合理化（rationalize）？我如何把語意（semantics）放進去並套用本體（ontologies）？

That stuff is hard, complex, and especially in a business context where you are trying to get dependable, reliable outcomes. Even though you understand some of it could be probabilistic, you still want dependable, reliable outcomes, and you want the same answer twice, if you ask the same question twice.

這些事情很難、很複雜，尤其是在商業情境中，你想要得到可依賴、可靠的結果。即便你理解其中一部分可能是機率性的，你仍然想要可依賴、可靠的結果；而且如果你問同一個問題兩次，你希望得到相同的答案。

There is a huge amount of work that goes in what was traditionally called data prep, but is a combination of a lot of things. I think there, the value actually gets greater because of the amount of AI being leveraged and that will be leveraged for basic analytics and reporting and what-if analysis, will only need better and better quality data.

在傳統上所謂的資料準備（data prep）中，其實投入了大量工作，但它本質上是很多事情的組合。我認為在那裡，價值反而會更高，因為被用來做基礎分析與報表、以及假設情境（what-if）分析的 AI 越來越多、也將會越來越多，而這只會需要越來越高品質的資料。

High-quality data with integrity, data that is business specific, is something that Domo is one of the companies that actually leads in that market. Therefore, that is why I keep going back to the consumption side of the business, the business that is on the consumption model. By the way, you have heard Domo’s own public comments about this. The consumption side business has much better net retention rates than the seat-based business. That has been historic

具備完整性（integrity）的高品質資料、且是特定於業務的資料，是 Domo 在該市場中實際上領先的面向之一。因此，這也是我為什麼一直回到業務的「消費」端，也就是採用用量計費（consumption model）的那部分業務。順帶一提，你也聽過 Domo 自己對此的公開評論。用量計費端的業務，其淨留存率（net retention rates）遠優於按席位（seat-based）的業務。這一直以來都是如此。

Customers who start on their consumption business have actually net retention rate of over 100%. It is really interesting to see that people who are leveraging Domo for truly just the AI portion are actually expanding as they go forward. Folks that have converted over are much more stable in their net retention rate. Then, of course, the seat-based business, which reflects more of the BI aspect of things, or what I want to call simple BI, where really the value is thought to be in the user experience rather than in the back-end aspect of data aggregation, data transformation, and applying AI on top of that.

從用量計費業務起步的客戶，其淨留存率實際上超過 100%。很有意思的是，真正只是為了 AI 部分而使用 Domo 的人，隨著時間推進其實是在擴張使用。已經轉換過去的客戶，其淨留存率要穩定得多。當然，還有按席位的業務，它更反映 BI 的面向，或我想稱之為「簡單 BI」：在那裡，價值更多被認為在使用者體驗，而不是在後端的資料彙整、資料轉換，以及在其上疊加 AI。

That is not reflected in the seat-based model, which is why the seat-based model has continued to see more meaningful churn, even at Domo, and which is why our comments about where we see the business ending at steady state. I mean, you have known that they just announced their last quarter, and when you analyze it, business has declined compared to what it was two or three quarters ago. We expect that decline to continue, and we expect it to get to that 280, 290 range. We feel very comfortable about the stability of that part of the business. I think that is the question you are asking, right?

這一點在以席位為基礎的模式中並未反映出來，這也是為什麼以席位為基礎的模式持續出現更顯著的流失（churn），即使在 Domo 也是如此；也因此我們才會評論我們認為該業務在穩態（steady state）下最終會落在什麼位置。我的意思是，你也知道他們剛公布了上一季的業績，而當你去分析時，業務相較於兩、三季前已經下滑。我們預期這種下滑會持續，並且我們預期會降到 280、290 那個區間。我們對於這部分業務的穩定性非常有信心。我想這就是你在問的問題，對吧？

Yep.

對。

The multiple may not look as good as 1.1 or 1.2. It might look like 1.4. But you know what? 1.4 times ARR is still a darn good multiple, at least in our book, or 3.5x the pro forma EBITDA, as Anthony Folger mentioned.

這個倍數可能看起來不會像 1.1 或 1.2 那麼好看，可能會像 1.4。但你知道嗎？1.4 倍 ARR 仍然是個相當不錯的倍數，至少在我們看來；或者如 Anthony Folger 提到的，約為備考（pro forma）EBITDA 的 3.5 倍。

So I think that is our rationale. I think what is interesting is that the public markets are right now pretty wonky, and there is a lot of noise out there. Therefore, I think Domo’s valuation in the public market was really challenged. Of course, they also had other challenges in their business that led to significant share price erosion, which made the deal possible at the number it was, right? It was a different environment. So I think some of the valuation challenges that Domo had were company specific, not product or market specific in which they play.

所以我認為這就是我們的理由。我覺得有趣的是，公開市場目前相當不穩定（wonky），外面雜音很多。因此，我認為 Domo 在公開市場的估值確實受到很大挑戰。當然，他們的業務也有其他挑戰，導致股價大幅下跌，這才使得這筆交易能以當時那個價格達成，對吧？那是不同的環境。所以我認為 Domo 面臨的一些估值挑戰是公司特定的（company specific），而不是他們所處的產品或市場本身的問題。

Thank you, Yogesh Gupta. I am not surprised. It is very thoughtful. So if I could just summarize, I am thinking about this, the data preparation part of Domo, you expect to actually continue to grow, whereas some of the traditional analytic components of Domo will see pressure, but it is not going to be eliminated. You still need that in certain instances with certain queries, where you need a deterministic, consistent response versus a probabilistic response that may be different every time. This is really clear --

謝謝你，Yogesh Gupta。我並不意外。這回答很周到。所以如果我可以簡單總結一下：我在想，Domo 的資料準備（data preparation）部分，你們預期其實會持續成長；而 Domo 一些傳統的分析（analytic）元件會面臨壓力，但不會被消除。在某些情境、某些查詢中，你仍然需要它，因為你需要確定性（deterministic）、一致的回應，而不是每次可能都不同的機率性（probabilistic）回應。這非常清楚--

Yeah, you are right, John. The deterministic answers are so important. You are doing your financial reporting, you are doing your business numbers, you are doing your forecasting of how much raw material you need to manufacture something. These things are You need exact numbers. You need to manage a supply chain correctly. You need to manage a distribution chain correctly.

是的，你說得對，John。確定性的答案非常重要。你在做財務報表，你在做營運數字，你在預測製造某樣產品需要多少原物料。這些事情——你需要精確的數字。你需要正確地管理供應鏈。你需要正確地管理配送鏈。

You cannot have a probabilistic system that says, I think I will need 100, but I really ended up needing 110, and now I cannot manufacture cars. I think there is tremendous value to the probabilistic answers in what-if analysis, all kinds of things, and other things where your forecasting is approximate is good enough, but then there are other places where you need deterministic.

你不能有一個機率性系統說：「我想我需要 100」，但最後其實需要 110，結果現在我就無法生產汽車。我認為機率性答案在假設情境（what-if）分析、各種事情上有巨大的價值；以及在其他一些預測只要大致接近就夠用的地方也很有用，但也有一些地方你需要確定性。

I actually think that the analytics market is stronger than what people think, will be stronger than I think what people think, but I think it will still be under pressure. It will not have the same level of value. But you are right. You are absolutely correct, John.

我其實認為分析市場比大家想像的更強，會比大家想像的更強，但我也認為它仍然會承受壓力。它不會有同樣程度的價值。但你說得對。你完全正確，John。

By the way, I agree with that. Listen, if you guys, that multiple goes from 1.1 to 1.4 or 2.4, that is still, especially when you guys do what you do with margins, that is still -- you said a darn good multiple. I was thinking of a different word, but, yeah, that makes a lot of sense. I appreciate it.

順帶一提，我同意。聽著，如果你們那個倍數從 1.1 變成 1.4 或 2.4，那仍然——尤其是當你們用你們擅長的方式去改善利潤率時——那仍然是——你說的是個相當不錯的倍數。我本來想到另一個詞，但，是的，這很有道理。我很感謝。

Thank you. Ladies and gentlemen, I am showing no further questions in the queue. I would now like to turn the call back over to Mr. Gupta for closing remarks.

謝謝。各位女士先生，我這邊看到提問佇列中已沒有其他問題。現在我想把電話交回給 Gupta 先生做結語。

Thank you so much for joining, everyone. I am really excited about what we have done and what lies ahead, and I am looking forward to our conversation at the end of the fiscal year. Thank you. Bye-bye.

非常感謝各位今天參與。我對我們已經完成的事情以及未來的發展感到非常振奮，也期待在本財政年度結束時與各位再交流。謝謝。再見。

Ladies and gentlemen, that concludes today’s conference call. Thank you for your participation. You may now disconnect.

各位女士先生，今天的電話會議到此結束。感謝各位的參與。您現在可以掛線。