Earnings Reports - Lamb Weston Holdings Inc. is expected to report quarterly earnings of 55 cents per share on revenue of $1.62 billion [2] - Progress Software Corp. reported better-than-expected financial results, raising its full-year 2025 revenue guidance to $975 million to $981 million, exceeding estimates of $967.24 million [2] - Paychex Inc. is anticipated to post earnings of $1.21 per share on revenue of $1.54 billion for the latest quarter [2] - Nike Inc. is expected to report quarterly earnings of 27 cents per share on revenue of $11.00 billion [2] Stock Performance - Lamb Weston shares gained 0.1% to $55.72 in after-hours trading [2] - Progress Software shares surged 4% to $44.33 in after-hours trading [2] - Paychex shares increased by 0.3% to $128.85 in after-hours trading [2] - Vail Resorts Inc. shares declined 1.9% to $145.30 in after-hours trading following downbeat results [2] - Nike shares rose slightly to $69.56 in after-hours trading [2]

Progress Software Corporation (NASDAQ:PRGS) reported an EPS of $1.50, surpassing the estimated $1.30, indicating a 15.38% earnings surprise.The company achieved a revenue of $249.8 million for the quarter, exceeding estimates and marking a 39.8% year-over-year increase.Progress Software's Annualized Recurring Revenue (ARR) grew by 47% year-over-year, with the company raising its full-year guidance for revenue, EPS, and cash flow.Progress Software Corporation, listed on NASDAQ as PRGS, is a key player in the ...

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Core Insights - Progress Software (PRGS) reported quarterly earnings of $1.5 per share, exceeding the Zacks Consensus Estimate of $1.3 per share, and showing an increase from $1.26 per share a year ago, resulting in an earnings surprise of +15.38% [1] - The company achieved revenues of $249.8 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 3.93% and up from $178.69 million year-over-year [2] - Progress Software has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The company has delivered a revenue surprise three times in the last four quarters, indicating strong performance relative to market expectations [2] - Despite the positive earnings report, Progress Software shares have declined approximately 35.5% year-to-date, contrasting with a 13% gain in the S&P 500 [3] Future Outlook - The future performance of Progress Software's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] - Current consensus estimates for the upcoming quarter are $1.32 EPS on $251.11 million in revenues, and for the current fiscal year, $5.35 EPS on $966.85 million in revenues [7] - The Zacks Industry Rank places the Computer - Software sector in the top 38% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 reached $250 million, exceeding previous guidance and representing approximately 40% year-over-year growth [20][6] - Earnings per share were $1.50, significantly above the high end of guidance and up 19% from the prior year [21][6] - Annualized recurring revenue (ARR) grew 47% year-over-year, closing at $849 million [19][5] - Operating margin was 40%, slightly down from 41% in the previous year [20][21] Business Line Data and Key Metrics Changes - The ShareFile business showed improved net retention rates as customers adopted AI capabilities, contributing to better-than-expected ARR and top-line growth [8][19] - Other products such as OpenEdge, MarkLogic, Sitefinity, WhatsUp Gold, and DevTools also exceeded expectations, indicating strong performance across the portfolio [9][19] Market Data and Key Metrics Changes - The demand for AI-related products is driving growth, with customers increasingly looking for solutions that deliver clear ROI [7][5] - The integration of ShareFile has been successful, with over 3,000 customers using the new AI document assistant [8][7] Company Strategy and Development Direction - The company is focused on innovation, particularly in AI capabilities, to enhance product value and customer success [10][11] - M&A remains a key growth strategy, with ongoing evaluations of potential acquisitions in application platforms, digital experience, and infrastructure management [17][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for products driven by AI initiatives, expecting this trend to persist beyond fiscal 2025 [7][5] - The company plans to maintain disciplined capital allocation, focusing on debt repayment and share repurchases based on market conditions [23][24] Other Important Information - The company repurchased $15 million of shares in Q3, with a total of $65 million repurchased year-to-date [23][6] - The board authorized an increase in share repurchase authorization by $200 million, bringing the total to $242 million [23][6] Q&A Session Summary Question: AI strategy and its impact on net retention rate and pricing power - Management indicated that AI capabilities are expected to first impact monthly recurring revenue (MRR) and net retention rates, with potential for indirect pricing opportunities through product upgrades [28][30][32] Question: EBIT guidance and conservatism in outlook - Management clarified that the guidance reflects a strong Q3 performance but maintains a conservative approach for Q4, which is typically a strong quarter [34][36] Question: Surprises from ShareFile acquisition - Management noted challenges in integration but highlighted positive aspects such as strong team engagement and customer reliance on ShareFile [40][41] Question: Monetization of Agentic RAG product - The initial monetization strategy focuses on cross-selling opportunities within the existing customer base while also targeting new customers [46][47] Question: Gross margin performance - Management explained that gross margin improvements are due to better operational efficiencies across SaaS products, despite the growing share of SaaS revenue [48][49] Question: M&A attractiveness in the current environment - Management expressed interest in all three business categories, emphasizing the growing importance of data platforms and digital experiences in the context of AI [52][55]

Financial Data and Key Metrics Changes - The company reported revenues of $250 million for Q3 2025, exceeding previous guidance and representing approximately 40% year-over-year growth [20][6] - Earnings per share for Q3 were $1.50, significantly above the high end of guidance and up 19% compared to the prior year [21][6] - Annualized recurring revenue (ARR) reached $849 million, reflecting a 47% year-over-year growth [19][6] - Operating margin was 40%, slightly down from 41% in the previous year [20][21] Business Line Data and Key Metrics Changes - The ShareFile business showed strong performance with improved net retention rates as customers adopted new AI capabilities [8][19] - Other products such as OpenEdge, MarkLogic, Sitefinity, WhatsUp Gold, and DevTools also exceeded expectations, contributing to overall ARR growth [9][19] - The integration of ShareFile was highlighted as a successful acquisition, with all major milestones met ahead of schedule [7][8] Market Data and Key Metrics Changes - The company experienced solid market demand driven by customer investments in AI initiatives, which are expected to continue as businesses are in the early stages of AI adoption [5][7] - The net retention rate was solid at 100%, indicating strong customer loyalty and satisfaction [5][19] Company Strategy and Development Direction - The company emphasized innovation as a foundational pillar of its growth strategy, focusing on delivering new AI capabilities across its product portfolio [10][11] - M&A remains a key growth strategy, with ongoing evaluations of potential acquisition targets in application and development platforms, digital experience, and infrastructure management [16][17] - The company is actively looking for SaaS opportunities, having reduced hesitancy towards acquiring SaaS companies following the successful integration of ShareFile [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of demand for products and the ability to execute well through fiscal 2025 and beyond [5][7] - The company raised its full-year revenue guidance, expecting total revenue between $975 million and $981 million for 2025 [24][25] - Management noted that the integration of AI capabilities is expected to enhance customer retention and potentially drive pricing power through product upgrades [30][32] Other Important Information - The company repurchased $15 million of its shares in Q3, with a total of $65 million repurchased year-to-date [23] - The board authorized an increase in the share repurchase program by $200 million, bringing the total available for repurchase to $242 million [23] Q&A Session Summary Question: AI strategy and its impact on net retention rate and pricing power - Management indicated that AI capabilities are expected to first impact monthly recurring revenue (MRR) and net retention rates, with potential for indirect pricing opportunities through product upgrades [30][32] Question: EBIT guidance and conservatism in outlook - Management explained that the guidance reflects a strong Q3 performance but maintains a conservative approach for Q4, which is typically a strong quarter [34][36] Question: Surprises from ShareFile acquisition - Management noted challenges in integration but highlighted positive aspects such as strong team engagement and customer reliance on ShareFile products [40][41] Question: Monetization of Agentic RAG product - Management stated that the initial monetization strategy focuses on cross-selling opportunities within the existing product portfolio [47] Question: Gross margin performance - Management attributed the gross margin increase to better operational efficiencies and the blending of different product margins [49] Question: M&A attractiveness in the current environment - Management expressed interest across all three business categories, emphasizing the growing importance of data platforms and digital experiences in the context of AI [55][56]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 reached $250 million, exceeding previous guidance and representing approximately 40% year-over-year growth [20] - Earnings per share were $1.50, significantly above the high end of guidance and up 19% from the prior year [21] - Annualized recurring revenue (ARR) grew 47% year-over-year, closing at $849 million [19] - Operating margin was 40%, slightly down from 41% in the previous year [20] Business Line Data and Key Metrics Changes - ShareFile business showed improved net retention rates as customers adopted AI capabilities, contributing to better-than-expected ARR and top-line growth [8] - Other products such as OpenEdge, MarkLogic, Sitefinity, WhatsUp Gold, and DevTools also exceeded expectations, indicating strong performance across the portfolio [9] Market Data and Key Metrics Changes - The demand for AI-related products is driving growth, with customers increasingly looking for solutions that deliver clear ROI [7] - The integration of ShareFile has been successful, with over 3,000 customers using the new AI document assistant [8] Company Strategy and Development Direction - The company emphasizes innovation as a core growth strategy, focusing on delivering AI capabilities across its product lines [10] - M&A remains a key growth strategy, with ongoing evaluations of potential acquisitions in application development, digital experience, and infrastructure management [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for products driven by customers' AI initiatives, expecting this trend to persist beyond fiscal 2025 [7] - The company plans to maintain disciplined capital allocation, focusing on debt repayment and share repurchases based on market conditions [23][24] Other Important Information - The company repaid $40 million of debt in Q3 and increased its revolver capacity from $900 million to $1.5 billion, enhancing financial flexibility [6][22] - Adjusted free cash flow for the quarter was $74 million, a 29% increase from the previous year [22] Q&A Session Summary Question: AI strategy and its impact on net retention rate and pricing power - Management indicated that AI capabilities are expected to first impact net retention rates, with potential for pricing power through product upgrades [30][32] Question: EBIT guidance and conservatism in outlook - Management clarified that the guidance reflects strong Q3 performance but maintains a conservative approach for Q4, anticipating continued momentum [34][36] Question: Insights from ShareFile integration - Management noted challenges in integration but highlighted positive cultural fit and strong customer reliance on ShareFile products [40][41] Question: Monetization of Agentic RAG product - The initial monetization strategy focuses on cross-selling opportunities within the existing customer base [47] Question: Gross margin performance - Management explained that gross margin improvements are due to better operational efficiencies across SaaS products [49] Question: M&A attractiveness in the context of AI - Management expressed interest in all three business categories for potential acquisitions, emphasizing the growing importance of data platforms and digital experiences [55][56]

Financial Data and Key Metrics Changes - The company reported revenues of $250 million for Q3 2025, exceeding previous guidance and representing approximately 40% year-over-year growth [21][26] - Earnings per share for Q3 were $1.50, up $0.24 or 19% compared to the prior year quarter, driven by the addition of ShareFile [22] - Annualized recurring revenue (ARR) reached $849 million, reflecting a 47% year-over-year growth [20][26] - Operating margin was 40%, slightly down from 41% in the year-ago quarter [21] Business Line Data and Key Metrics Changes - The ShareFile business showed improved net retention rates as customers adopted AI capabilities, contributing to better-than-expected ARR and top-line growth [9][10] - Other products such as OpenEdge, MarkLogic, Sitefinity, WhatsUp Gold, and DevTools also exceeded expectations, indicating strong performance across the portfolio [10] Market Data and Key Metrics Changes - The company experienced solid market demand, particularly for products related to AI initiatives, which are driving customer investments [5][7] - The integration of ShareFile has been successful, with over 3,000 customers using the new AI document assistant [9] Company Strategy and Development Direction - Innovation is a foundational pillar of the company's growth strategy, with a focus on delivering AI capabilities across products [11] - The company is actively pursuing M&A opportunities, particularly in the areas of application and development platforms, digital experience, and infrastructure management [18][54] - The company aims to leverage AI to enhance customer experiences and operational efficiencies [12][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for products driven by customer AI initiatives, expecting this trend to persist beyond fiscal 2025 [7][19] - The company plans to maintain disciplined capital allocation, focusing on debt repayment and share repurchases based on market conditions [25][27] Other Important Information - The company repurchased $15 million of its shares in Q3, with a total of $65 million repurchased year-to-date [6][25] - The board authorized an increase in share repurchase authorization by $200 million, bringing the total to $242 million [25] Q&A Session Summary Question: AI strategy and its impact on net retention rate and pricing power - Management indicated that AI capabilities are expected to first impact monthly recurring revenue (MRR) and net retention rates, with potential for indirect pricing opportunities through product upgrades [29][34] Question: EBIT guidance and conservatism in outlook - Management clarified that the guidance reflects strong Q3 results and maintains expectations for Q4, emphasizing confidence in the overall performance [36][38] Question: Surprises from ShareFile acquisition - Management noted challenges in integration but highlighted positive aspects such as strong team engagement and customer reliance on ShareFile [40][43] Question: Monetization of Agentic RAG product - The initial monetization strategy focuses on cross-selling opportunities with existing products, while also targeting new customers [46][47] Question: M&A environment and SaaS opportunities - Management expressed interest in acquiring both SaaS and non-SaaS companies, noting a reduced hesitancy towards SaaS acquisitions following the ShareFile experience [52][55]

Financial Performance - Q3 2025 revenues reached $250 million, exceeding prior guidance of $237 million - $243 million, representing a 38% year-over-year increase in constant currency[10] - Annualized Recurring Revenue (ARR) grew by 47% year-over-year in constant currency to $849 million, with a 3% pro-forma increase[10, 12] - Net Retention Rate (NRR) remained strong at 100%[10] - Non-GAAP Earnings Per Share (EPS) was $1.50, surpassing the high end of prior guidance of $1.28 - $1.34[10] - The company's operating margin was 40%[10] Guidance and Outlook - Q4 2025 revenue is projected to be between $250 million and $256 million, with EPS between $1.29 and $1.35[10] - Fiscal Year 2025 revenue guidance has been updated to $975 million - $981 million, up from $962 million - $974 million[10] - Fiscal Year 2025 EPS guidance has been raised to $5.50 - $5.56, from $5.28 - $5.40[10] Growth Strategy - The company has an ARR Compound Annual Growth Rate (CAGR) of 20% from Q3 2020 to Q3 2025[18] - The company has a revenue CAGR of 15% from 2021 to 2025(E)[19] - The company has an operating income CAGR of 13% from 2021 to 2025(E), with non-GAAP operating margins consistently above 35%[20]