Progress Software Corporation (NASDAQ:PRGS) Q3 2023 Earnings Call Transcript

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Yogesh Gupta : So, Ittai, thanks for questions and Ittai, I will try to answer as many of these as I can, as you know, we do have an ongoing investigation, we do have ongoing legal efforts around this. So most of our communication happens through our filings. But let me share some of the things that you were asking. So from the perspective of our customers, actually, our customers have been extremely positive about what we’ve been doing for them. As we mentioned that there was minimal impact on our business in Q3. As you noticed that in Q4, and for the year, right, we are still confident about our outcome. So we’re not really seeing what I would call meaningful act from our customer at this point. As far as litigation expense, it is way too early, to try to do any kind of an estimate as to what it would be.

I think we had shared that we have a cyber insurance to the tune of $15 million. That’s 15. And we report I mean, we reported in our press release basically sort of the approximate expense in this area, and we will continue to report that in our 10-Q and we just don’t know what the future litigation impact might be because it is so early. But in general customers have been, to be honest, really happy with our response.

Ittai Kidron: Okay. Anthony, a couple of financial questions. First of all, the US dollar is making a move. Can you remind us what if anything is, how this influences your financial statements?

Anthony Folger: Yes, sure, Ittai. I think we would say that we’re north of 70% of our top line of our billings and revenue are done in dollars. And from an expense perspective, I think we’re in the high 60s. And most of the foreign currency billings are sort of, I would say it’s euro or pound, or dollars that are closely — move closely in concert with those two. So I think as to the extent that the dollar weakens, we may see a little bit of benefit from that. But there’s a pretty decent natural hedge built in. So it can move the top line a little bit, but generally speaking, on the margin, we have a reasonable natural hedge in place.

Ittai Kidron: Got it. Okay, and then lastly, on your guidance for the fourth quarter, you haven’t really moved it at all, whatever the upside was in the quarter, you kind of rolled it over into the next — into your annual guide, and you did not really change your fourth quarter number. And I’m just kind of wondering why it fit, your guide is short, before it consensuses, will fund the top line and the bottom line and trying to think what’s the solid execution that you have with the environment being stable? And with the fourth quarter being kind of year end quarter? Why aren’t you a bit more upbeat and willing to commit to a higher set of numbers?

Yogesh Gupta : Yes, no, I think we’re pretty upbeat at time. And I think revenues up a $1 million at the mid and I think EPS is up $0.03 at the mid. And that’s been a pretty consistent theme each quarter this year. So I think we feel pretty good in terms of the demand environment, in terms of our ability to manage costs, in terms of the integration of MarkLogic. And so we felt like going into Q4, taking numbers up a little bit was a pretty positive sign. And I am not sure what others are doing out there in this market. But certainly taking numbers up into Q4 felt like pretty positive thing to do. And to the extent we can overperform those numbers, I think, even better.

Operator: Thank you. And as I’m showing no further questions in the queue at this time, I’ll turn the call back over to Mr. Yogesh Gupta for any closing remarks.

Yogesh Gupta : Well, thank you, Sherry. And thanks again, everyone for joining us. We look forward to talking to you again soon. Have a good night.

Operator: Thank you all for participating. This concludes today’s program. You may now disconnect.

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