New $1.5B facility will support continued growth and provide greater scale and flexibility BURLINGTON, Mass., July 22, 2025 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced that it has entered into a Fifth Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which, among other things, increased the company’s revolving credit facility from $900 million to $1.5 billion and extended the ma ...

Core Insights - Progress Software (PRGS) reported total revenue of $237.35 million for the quarter ending May 2025, reflecting a 35.6% increase year-over-year [4] - The company's international revenue performance is crucial for understanding its financial resilience and growth potential [2][10] International Revenue Breakdown - Latin America contributed $5.05 million, accounting for 2.13% of total revenue, showing a slight increase from 2.12% in the previous quarter [5] - Europe, Middle East, and Africa generated $66.94 million, representing 28.20% of total revenue, slightly down from 32.86% year-over-year [6] - Asia Pacific brought in $11.37 million, making up 4.79% of total revenue, consistent with the previous quarter's contribution [7] Future Revenue Forecasts - Analysts project total revenue of $240.35 million for the current fiscal quarter, a 34.5% increase year-over-year, with expected contributions of 2% from Latin America, 30.7% from Europe, Middle East, and Africa, and 5.1% from Asia Pacific [8] - For the full year, total revenue is anticipated to reach $965.22 million, indicating a 28.1% rise from the previous year, with regional contributions expected to be 2.1% from Latin America, 30.1% from Europe, Middle East, and Africa, and 5% from Asia Pacific [9] Market Context - The reliance on international markets presents both opportunities and challenges for Progress Software, necessitating close monitoring of revenue trends to project future performance accurately [10] - The company's stock has seen a decline of 15.2% over the past four weeks, contrasting with a 5.2% increase in the S&P 500, indicating potential market concerns [13]

Progress Software (NASDAQ: PRGS ) just announced its Q2 results, which were quite lackluster in my opinion. I wanted to go through the numbers in a bit more detail and give some thoughts on the company's pivot strategy. For now, it is still earlyMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell ...

Core Viewpoint - Progress Software (PRGS) reported quarterly earnings of $1.4 per share, exceeding the Zacks Consensus Estimate of $1.3 per share, and showing an increase from $1.09 per share a year ago, representing an earnings surprise of +7.69% [1][2] Financial Performance - The company posted revenues of $237.36 million for the quarter ended May 2025, which was slightly below the Zacks Consensus Estimate by 0.21%, but an increase from $175.08 million year-over-year [2] - Over the last four quarters, Progress Software has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Progress Software shares have declined approximately 2.1% since the beginning of the year, while the S&P 500 has gained 5% [3] - The current Zacks Rank for Progress Software is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.31 on revenues of $240.16 million, and for the current fiscal year, it is $5.28 on revenues of $964.97 million [7] - The estimate revisions trend for Progress Software was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Computer - Software industry, to which Progress Software belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Commvault Systems (CVLT), another company in the same industry, is expected to report quarterly earnings of $0.97 per share, reflecting a year-over-year change of +14.1% [9]

Financial Data and Key Metrics Changes - Total revenue for Q2 reached $237 million, representing a 36% increase year over year [7] - Annual Recurring Revenue (ARR) grew by 46% year over year to $838 million, with a net retention rate of 100% [7][21] - Operating margin was reported at 40%, an increase from 38% in the same quarter last year [24] - Earnings per share for Q2 were $1.40, exceeding the high end of guidance by $0.06 [24] Business Line Data and Key Metrics Changes - Strong performance was noted across product lines, particularly from OpenEdge and ShareFile, contributing to major renewals and expansions [8][23] - ShareFile's integration is progressing well, with operational synergies completed ahead of schedule [12] Market Data and Key Metrics Changes - The company reported consistent performance across geographies, with significant strength in data platform products [8] - The integration of ShareFile with Microsoft 365 has enhanced productivity and streamlined workflows for users [13] Company Strategy and Development Direction - The acquisition of Nuclear for $20 million aims to enhance the product portfolio with advanced Gen AI capabilities [5][6] - The company emphasizes disciplined M&A strategies to drive sustained top-line growth, focusing on companies with strong products and customer bases [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the business and raised guidance for the remainder of the year [8][27] - The integration of AI into various business functions is seen as a key driver for maintaining high operating margins and improving efficiency [15] Other Important Information - The company repaid $40 million against its revolving credit line, contributing to a total debt repayment of $70 million in the first half of the fiscal year [26] - ShareFile was recognized as a visionary in the latest Gartner Magic Quadrant for Document Management [13] Q&A Session Summary Question: Insights on the Nuclea acquisition - Management clarified that the acquisition is an investment in the product portfolio, aimed at enhancing customer retention and integrating advanced technology [32][34] Question: Cross-sell opportunities with Nuclea - Management confirmed that Nuclea's technology is expected to be integrated across the product portfolio, providing value to various business lines [40][42] Question: Free cash flow expectations - Management explained that the lower free cash flow in the quarter was due to timing on collections and the transition of ShareFile to Progress' billing system, which is expected to improve moving forward [46][48]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $237 million, representing a 36% increase year-over-year [7] - Annual Recurring Revenue (ARR) grew 46% year-over-year to $838 million, with a net retention rate of 100% [8][23] - Operating margin was 40%, with earnings per share of $1.40, exceeding guidance [8][26] - Total costs and operating expenses were $142 million, a 31% increase driven by the addition of ShareFile [26] - Cash and cash equivalents at the end of the quarter were $102 million, with total debt of $1.47 billion [27] Business Line Data and Key Metrics Changes - Significant strength was noted in OpenEdge and ShareFile, contributing to strong renewals and expansions [9] - ShareFile's integration is ahead of schedule, with operational synergies completed [13] - New AI capabilities were introduced in ShareFile, enhancing document collection speed and insights extraction [14] Market Data and Key Metrics Changes - The company reported consistent performance across all geographies and product areas, with major renewals from various sectors including biotech and pharmaceuticals [9][10] - The integration of AI into products is driving customer retention and satisfaction [11][12] Company Strategy and Development Direction - The acquisition of Nuclear for $20 million aims to enhance the product portfolio with Gen AI capabilities [5][6] - The company emphasizes disciplined M&A strategy to drive sustained top-line growth, focusing on companies with strong products and customer bases [19][20] - Continued investment in R&D is seen as essential for customer retention and product value [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and raised guidance for the remainder of the year [9][29] - The integration of ShareFile is progressing well, with expectations for improved customer experience [27][28] - The outlook for Q3 2025 includes revenue expectations between $237 million and $243 million, with full-year revenue guidance increased to between $962 million and $974 million [29][30] Other Important Information - The company has maintained expense discipline, which is central to its operating philosophy [15][17] - Progress was recognized as one of the Best Places to Work by the Boston Business Journal [20] Q&A Session Summary Question: Can you provide more details about the Nuclea acquisition? - Management indicated that the acquisition is an investment in the product portfolio, aimed at integrating advanced AI technology to enhance customer value [33][36] Question: Will Nuclea be a cross-sell opportunity or embedded in other products? - Management confirmed that Nuclea is expected to integrate across the product portfolio, adding value to various offerings including ShareFile and OpenEdge [41][43] Question: Why was free cash flow below expectations this quarter, yet annual forecasts were raised? - Management explained that timing on collections and the transition of ShareFile to Progress' billing system impacted cash flow, but they remain optimistic about future performance [46][48]

Q2 2025 Financial Highlights - Revenues reached $237 million, a 35% year-over-year increase in constant currency, surpassing prior guidance of $235 million - $241 million[9] - Annual Recurring Revenue (ARR) reached $838 million, up 46% year-over-year in constant currency, or 2% pro-forma[9] - The company achieved a Net Retention Rate (NRR) of 100%[9] - Operating margin was 40%[9] - Earnings per share (EPS) was $1.40, exceeding the high end of prior guidance of $1.28 - $1.34[9] Guidance - Q3 2025 guidance projects revenue between $237 million and $243 million, with EPS between $1.28 and $1.34[9] - Fiscal Year 2025 revenue guidance is updated to $962 million - $974 million, increased from $958 million - $970 million[9] - Fiscal Year 2025 EPS guidance is updated to $5.28 - $5.40, increased from $5.25 - $5.37[9] Growth Strategy - The company's ARR has a Compound Annual Growth Rate (CAGR) of 19% from Q2 2020 to Q2 2025[20] - Revenue has a CAGR of 15% from 2021 to 2025(E), based on the midpoint of FY25 guidance[22] - Operating income has a CAGR of 13% from 2021 to 2025(E), based on the midpoint of FY25 guidance[24] - Unlevered Free Cash Flow (FCF) has a CAGR of 11% from 2021 to 2025(E), based on the midpoint of FY25 guidance[26] Capital Allocation - The company repaid $40 million in debt in Q2 2025, bringing the year-to-date total to $70 million[30] - The company is currently modeling $160 million in debt repayment for FY2025[30] - The company repurchased $20 million of shares in Q2 2025, bringing the year-to-date total to $50 million[30] - ShareFile adds over $250 million of ARR[11]

[Part I: Financial Information](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for May 31, 2025, show total assets decreased, liabilities increased, and revenue grew to **$475.4 million** while net income declined to **$28.0 million** [Note 4: Business Combinations](index=14&type=section&id=Note%204%3A%20Business%20Combinations) The company acquired ShareFile for **$875.0 million** on October 31, 2024, contributing **$129.6 million** to revenue for the six months ended May 31, 2025 - Completed the acquisition of ShareFile on October 31, 2024, for an aggregate purchase price of **$875.0 million** in cash[35](index=35&type=chunk) - The acquisition contributed **$65.9 million** and **$129.6 million** in revenue for the three and six months ended May 31, 2025, respectively[41](index=41&type=chunk) Preliminary Purchase Price Allocation for ShareFile (in thousands) | Asset/Liability | Adjusted Purchase Price Allocation | | :--- | :--- | | Purchased technology | $119,000 | | Customer relationships | $318,000 | | Goodwill | $461,091 | | **Net assets acquired** | **$853,897** | [Note 12: Cyber Related Matters](index=20&type=section&id=Note%2012%3A%20Cyber%20Related%20Matters) The company incurred **$1.5 million** in net costs for the MOVEit Vulnerability, facing ongoing lawsuits and inquiries, with no loss contingency recorded due to estimation difficulties - The company is party to class action lawsuits and governmental inquiries resulting from the May 2023 MOVEit Vulnerability[63](index=63&type=chunk) MOVEit Vulnerability Costs, Net (in thousands) | Period | Net Costs Incurred | | :--- | :--- | | Three Months Ended May 31, 2025 | $700 | | Six Months Ended May 31, 2025 | $1,500 | - As of May 31, 2025, approximately **$5.4 million** of cybersecurity insurance coverage remains available under the applicable policy[66](index=66&type=chunk) - A loss contingency liability has not been recorded as a range of possible losses cannot be reasonably estimated at this time[65](index=65&type=chunk) Condensed Consolidated Balance Sheet Summary (in thousands) | Account | May 31, 2025 | November 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $325,651 | $368,813 | | **Total assets** | $2,413,592 | $2,526,966 | | **Total current liabilities** | $750,271 | $455,145 | | **Total liabilities** | $1,960,891 | $2,088,178 | | **Total stockholders' equity** | $452,701 | $438,788 | Condensed Consolidated Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | Six Months Ended May 31, 2025 | Six Months Ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $237,355 | $175,077 | $475,370 | $359,762 | | **Income from operations** | $38,616 | $27,148 | $71,042 | $62,154 | | **Net income** | $17,029 | $16,188 | $27,975 | $38,827 | | **Diluted EPS** | $0.39 | $0.37 | $0.63 | $0.87 | Condensed Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | Six Months Ended May 31, 2025 | Six Months Ended May 31, 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | $98,943 | $134,185 | | Net cash flows used in investing activities | $(2,980) | $(1,264) | | Net cash flows used in financing activities | $(118,103) | $(67,798) | | **Net (decrease) increase in cash** | **$(16,071)** | **$63,462** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth, driven by the ShareFile acquisition, was offset by increased operating and interest expenses, while Annualized Recurring Revenue (ARR) grew **46%** to **$838 million**, and liquidity was impacted by debt repayment and share repurchases [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q2 2025 total revenue increased **36%** to **$237.4 million** due to the ShareFile acquisition, driving SaaS revenue up **1,104%**, despite increased operating expenses and interest costs Total Revenue Growth (in thousands) | Period | May 31, 2025 | May 31, 2024 | % Change (As Reported) | % Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended** | $237,355 | $175,077 | 36% | 35% | | **Six Months Ended** | $475,370 | $359,762 | 32% | 32% | - The increase in total revenue was primarily due to the acquisition of ShareFile, which contributed **$65.9 million** and **$129.6 million** in the second quarter and first six months of fiscal 2025, respectively[74](index=74&type=chunk) Revenue by Type - Q2 2025 vs Q2 2024 (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Software licenses | $50,795 | $53,979 | (6)% | | Maintenance | $103,491 | $102,503 | 1% | | SaaS | $72,105 | $5,988 | 1,104% | | Professional services | $10,964 | $12,607 | (13)% | - Interest expense increased **159%** for the quarter and **155%** for the six-month period, primarily due to costs associated with drawing on the revolving line of credit to acquire ShareFile[93](index=93&type=chunk) [Select Performance Metrics](index=29&type=section&id=Select%20Performance%20Metrics) Key performance metrics include Annualized Recurring Revenue (ARR) of **$838 million**, a **46%** year-over-year increase, and a stable Net Retention Rate between **100%** and **102%** - Annualized Recurring Revenue (ARR) was **$838 million** as of May 31, 2025, an increase of **46%** year-over-year, primarily driven by the acquisition of ShareFile[103](index=103&type=chunk) - The Net Retention Rate, a measure of revenue from existing customers, has generally ranged between **100%** and **102%** for all periods presented[105](index=105&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **$16.1 million** to **$102.0 million** due to **$70.0 million** in debt repayments and **$50.1 million** in share repurchases, leading to a dividend suspension - Cash and cash equivalents decreased by **$16.1 million** from November 30, 2024, to **$102.0 million** at May 31, 2025[106](index=106&type=chunk) - Key uses of cash in the first six months of 2025 included **$70.0 million** to pay down the revolving line of credit and **$50.1 million** for share repurchases[106](index=106&type=chunk)[112](index=112&type=chunk) - The Board of Directors approved the suspension of the quarterly dividend to redirect capital toward debt repayment, M&A, and share repurchases[114](index=114&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes occurred in market risk disclosures during the first six months of fiscal 2025, apart from revolving credit facility repayments - There were no significant changes to the company's market risk disclosures, aside from repayments on the revolving credit facility[122](index=122&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management deemed disclosure controls effective as of May 31, 2025, excluding the ShareFile business, which comprised approximately **27%** of consolidated revenues - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of May 31, 2025[124](index=124&type=chunk) - The assessment of controls excluded the ShareFile business, acquired on October 31, 2024. ShareFile represented about **27%** of total consolidated revenues for the six months ended May 31, 2025[124](index=124&type=chunk) [Part II: Other Information](index=33&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is addressing legal matters from the MOVEit Vulnerability, including class action lawsuits and governmental inquiries, with outcomes and potential losses currently unpredictable - The company is subject to class action lawsuits and governmental inquiries related to the MOVEit Vulnerability, which are in the early stages of litigation[119](index=119&type=chunk)[126](index=126&type=chunk) - Management does not believe the outcome of other ordinary course legal matters will have a material effect on the company's financial position[127](index=127&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) Investors are directed to the comprehensive discussion of risk factors in the company's 2024 Annual Report on Form 10-K - For a complete discussion of risks, the report refers to Part I, Item 1A. Risk Factors in the 2024 Annual Report[128](index=128&type=chunk) [Use of Proceeds and Stock Repurchases](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **351,216 shares** for approximately **$20.0 million**, with **$57.2 million** remaining for future repurchases Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in thousands) | | :--- | :--- | :--- | :--- | | March 2025 | — | $— | $— | | April 2025 | 351,216 | $56.93 | $20,000 (approx) | | May 2025 | — | $— | $— | | **Total** | **351,216** | **$56.93** | **$20,000 (approx)** | - As of May 31, 2025, **$57.2 million** remained available under the current share repurchase authorization[129](index=129&type=chunk) [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) Several executive officers, including the CEO and CFO, adopted Rule 10b5-1 trading arrangements during Q2 2025 for future stock sales - The CEO, CFO, and Chief Accounting Officer each adopted a Rule 10b5-1 trading arrangement during the quarter[130](index=130&type=chunk)

Financial Performance - Annualized Recurring Revenue (ARR) reached $838 million, growing 46% year-over-year[2] - Revenue for the second quarter was $237 million, an increase of 36% year-over-year[3] - Operating margin was 16%, with a non-GAAP operating margin of 40%[7] - Diluted earnings per share increased to $0.39, up 5% from $0.37 in the same quarter last year[7] - Net income for the three months ended May 31, 2025, was $17,029 thousand, a 5.2% increase compared to $16,188 thousand for the same period in 2024[19] - Non-GAAP income from operations for the three months ended May 31, 2025, was $95,461 thousand, up 42% from $67,086 thousand in the same period last year[21] - GAAP diluted earnings per share for the fiscal year ending November 30, 2025, is projected to be between $1.27 and $1.43[25] - Non-GAAP diluted earnings per share for the fiscal year ending November 30, 2025, is expected to range from $5.28 to $5.40[25] - For Q3 2025, GAAP diluted earnings per share is projected to be between $0.29 and $0.35, with non-GAAP diluted earnings per share expected to range from $1.28 to $1.34[28] Cash Flow and Guidance - Cash from operations decreased by 53% to $29.996 million compared to $63.681 million in the same quarter last year[3] - Adjusted free cash flow for the three months ended May 31, 2025, was $37,068 thousand, a decrease of 42% compared to $64,073 thousand for the same period in 2024[22] - Fiscal Year 2025 adjusted free cash flow guidance ranges from $228 million to $240 million, while unlevered free cash flow guidance is between $285 million and $296 million[27] Debt and Liabilities - The company made significant progress in paying down its revolving credit facility, reducing debt by $40 million this quarter[6] - Total current liabilities increased from $455,145 thousand as of November 30, 2024, to $750,271 thousand as of May 31, 2025, marking a rise of approximately 64.7%[18] - The company’s cash and cash equivalents decreased from $118,077 thousand at the end of November 2024 to $102,006 thousand by May 31, 2025, reflecting a decline of about 13.6%[19] Acquisitions and Investments - Progress Software acquired Nuclia, an innovator in agentic Retrieval-Augmented Generation (RAG) AI solutions[9] - The company reported a significant increase in stock-based compensation, which rose to $16,741 thousand for the three months ended May 31, 2025, compared to $11,989 thousand in the same period last year[21] Tax and Projections - The effective tax rate for FY 2025 is projected to be 17%[12] - Non-GAAP operating margin for fiscal year 2025 is projected to be between 38% and 39%[24] Performance Metrics - Annualized Recurring Revenue (ARR) is a key performance metric, reflecting the substantial majority of the company's revenues from recurring sources[32] - Net Retention Rate (NRR) is calculated based on ARR from the same customer cohort over the past 12 months, excluding new customers[36] - The company emphasizes the importance of non-GAAP financial measures for evaluating operating performance and establishing budgets[29] - Adjusted free cash flow (AFCF) is defined as cash flows from operating activities less purchases of property and equipment, plus restructuring payments[32] - The company uses constant currency measures to present revenue growth rates, aiding in understanding performance across periods[31] Risks and Challenges - Forward-looking statements indicate potential risks including economic conditions, cybersecurity threats, and challenges in achieving financial forecasts[37] - The company expects to continue incurring expenses related to the MOVEit Vulnerability, impacting future operating expenses[30] Other Financial Changes - Days sales outstanding increased to 53 days, compared to 41 days in the same quarter last year[8] - Total assets decreased from $2,526,966 thousand as of November 30, 2024, to $2,413,592 thousand as of May 31, 2025, representing a decline of approximately 4.5%[18]

Core Insights - Progress Software reported an Annualized Recurring Revenue (ARR) of $838 million, reflecting a 46% year-over-year growth [1][3] - The company's revenue for the second quarter reached $237 million, marking a 36% increase year-over-year [1][5] - Full-year guidance for revenue, operating margin, earnings per share, and cash flow has been raised, indicating strong confidence in business performance [1][9] Financial Performance - The operating income for the second quarter was $38.6 million, a 42% increase from $27.1 million in the same quarter last year [4][5] - The operating margin remained stable at 16%, while the non-GAAP operating margin improved to 40%, up from 38% [4][5] - Net income for the quarter was $17.0 million, a 5% increase compared to $16.2 million in the prior year [4][5] Earnings Per Share - Diluted earnings per share (EPS) for the second quarter was $0.39, up 5% from $0.37 in the same quarter last year [4][5] - Non-GAAP diluted EPS increased by 28% to $1.40 from $1.09 year-over-year [4][5] Cash Flow and Liquidity - Cash from operations was reported at $30.0 million, a decrease of 53% compared to $63.7 million in the same quarter last year [4][5] - The company ended the quarter with cash and cash equivalents of $102.0 million [6] Acquisition Activity - Progress Software announced the acquisition of Nuclia, a company specializing in Retrieval-Augmented Generation (RAG) AI solutions, which is expected to enhance the Progress Data Platform [7][8] Business Outlook - Updated guidance for fiscal year 2025 includes revenue expectations of $962 million to $974 million and diluted EPS of $1.27 to $1.43 [9][27] - The company anticipates an operating margin of 15% for GAAP and 38% for non-GAAP for the fiscal year [9][27]