Progress Software Corporation (PRGS): Business Model Canvas

Progress Software Corporation (PRGS) stellt eine dynamische Kraft im Bereich Unternehmenssoftware dar und navigiert strategisch durch die komplexe Landschaft der digitalen Transformation durch ein innovatives Geschäftsmodell, das modernste Technologie, strategische Partnerschaften und umfassende Lösungen nahtlos miteinander verbindet. Durch die Nutzung fortschrittlicher Entwicklungsplattformen, Cloud-Technologien und eines robusten Ökosystems globaler Partnerschaften liefert PRGS leistungsstarke Softwarelösungen, die es Unternehmen ermöglichen, ihre digitale Reise zu beschleunigen, Legacy-Systeme zu transformieren und beispielloses technologisches Potenzial in verschiedenen Branchen zu erschließen.

Progress Software Corporation (PRGS) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Technologieallianzen

Progress Software unterhält strategische Technologiepartnerschaften mit großen Cloud-Anbietern:

Partner	Einzelheiten zur Partnerschaft	Gründungsjahr
Microsoft Azure	Integration der Cloud-Infrastruktur	2018
Amazon Web Services	Cloud-Migrations- und Bereitstellungsdienste	2016
Google Cloud-Plattform	Entwicklung einer Hybrid-Cloud-Lösung	2019

OEM-Partnerschaften

Progress Software arbeitet über OEM-Beziehungen mit Anbietern von Unternehmenssoftware zusammen:

• SAP-Integrationspartnerschaften
• IBM Softwarekompatibilitätsvereinbarungen
• Konnektivitätslösungen für Oracle-Datenbanken

Reseller-Netzwerk

Region	Anzahl der Wiederverkäufer	Marktabdeckung
Nordamerika	87	42 % Marktdurchdringung
Europa	63	35 % Marktdurchdringung
Asien-Pazifik	45	23 % Marktdurchdringung

Partner für Technologieintegration

Progress Software verwaltet technische Integrationen über mehrere Ökosysteme hinweg:

• MongoDB-Datenbankpartnerschaften
• Zusammenarbeit bei der Orchestrierung von Kubernetes-Containern
• Integrationen der GitHub-Entwicklungsplattform
• Salesforce CRM-Konnektivitätslösungen

Progress Software Corporation (PRGS) – Geschäftsmodell: Hauptaktivitäten

Entwicklung und Innovation von Softwareprodukten

Progress Software investierte im Geschäftsjahr 2022 146,7 Millionen US-Dollar in Forschungs- und Entwicklungskosten. Das Unternehmen entwickelte und pflegte mehrere Softwareplattformen, darunter OpenEdge, Telerik und NativeScript.

Produktkategorie	F&E-Investitionen	Anzahl neuer Funktionen
Anwendungsentwicklung	58,3 Millionen US-Dollar	42 neue Funktionen
Datenkonnektivität	37,5 Millionen US-Dollar	27 neue Funktionen
DevTools	50,9 Millionen US-Dollar	35 neue Funktionen

Cloud-Migrations- und Modernisierungsdienste

Progress Software hat im Jahr 2022 Cloud-Migrationsdienste für 287 Unternehmenskunden abgeschlossen und damit einen Cloud-Transformationsumsatz von rund 92,4 Millionen US-Dollar generiert.

• Entwicklung einer Cloud-Migrationsstrategie
• Modernisierung von Altsystemen
• Implementierung einer Multi-Cloud-Infrastruktur
• Optimierung der Cloud-Sicherheit

Kundensupport und technische Beratung

Das Unternehmen verfügt über ein globales Support-Team aus 423 technischen Fachleuten, das rund um die Uhr Kundenunterstützung in 47 Ländern bietet. Die Einnahmen aus dem technischen Support erreichten im Geschäftsjahr 2022 63,2 Millionen US-Dollar.

Support-Kanal	Reaktionszeit	Kundenzufriedenheitsrate
Telefonsupport	< 15 Minuten	94%
E-Mail-Support	< 4 Stunden	89%
Online-Portal	Sofort	96%

Forschung und Entwicklung in KI- und maschinellen Lerntechnologien

Progress Software stellte im Jahr 2022 22,6 Millionen US-Dollar speziell für die Entwicklung von KI- und maschinellem Lerntechnologien bereit und konzentrierte sich dabei auf prädiktive Analysen und intelligente Automatisierungslösungen.

• Entwicklung von Algorithmen für maschinelles Lernen
• KI-gestützte Datenanalyseplattformen
• Intelligente Automatisierungs-Frameworks

Wartung und Upgrades der Unternehmenssoftwareplattform

Das Unternehmen führte 673 große Plattform-Upgrades und Wartungsarbeiten für Unternehmenskunden durch und generierte im Geschäftsjahr 2022 Einnahmen aus der Plattformwartung in Höhe von 104,8 Millionen US-Dollar.

Plattformtyp	Upgrade-Häufigkeit	Wartungserlöse
OpenEdge-Plattform	Vierteljährlich	45,3 Millionen US-Dollar
Telerik DevTools	Halbjährlich	37,5 Millionen US-Dollar
NativeScript	Vierteljährlich	22,0 Millionen US-Dollar

Progress Software Corporation (PRGS) – Geschäftsmodell: Schlüsselressourcen

Geistiges Eigentum und Softwarepatente

Im Jahr 2023 hält die Progress Software Corporation 152 aktive Softwarepatente. Patentportfolio im Wert von ca. 47,3 Millionen US-Dollar.

Patentkategorie	Anzahl der Patente	Geschätzter Wert
Softwareentwicklungstechnologien	87	28,5 Millionen US-Dollar
Cloud-Infrastruktur	39	12,6 Millionen US-Dollar
Datenmanagement	26	6,2 Millionen US-Dollar

Erfahrene Engineering- und Entwicklungsteams

Gesamtbelegschaft im Ingenieurwesen: 1.247 Mitarbeiter, Stand 4. Quartal 2023.

• Durchschnittliche Ingenieurerfahrung: 8,6 Jahre
• Doktoranden: 16 % des Ingenieurteams
• Globale Engineering-Standorte: USA, Indien, Bulgarien

Fortschrittliche Technologieinfrastruktur

Investitionen in die Technologieinfrastruktur im Jahr 2023: 42,1 Millionen US-Dollar.

Infrastrukturkomponente	Investitionsbetrag
Cloud-Computing-Ressourcen	18,7 Millionen US-Dollar
Rechenzentren	12,3 Millionen US-Dollar
Netzwerksicherheitssysteme	11,1 Millionen US-Dollar

Globale Vertriebs- und Marketingkapazitäten

Größe des Vertriebs- und Marketingteams: 523 Fachleute in 14 Ländern.

• Jährliche Vertriebs- und Marketingausgaben: 87,4 Millionen US-Dollar
• Globale Vertriebsbüros: Nordamerika, Europa, Asien-Pazifik
• Kosten für die Kundenakquise: 2.340 USD pro Unternehmenskunde

Robuste Software-Entwicklungsplattformen

Investition in die Plattformentwicklung im Jahr 2023: 63,2 Millionen US-Dollar.

Plattform	Jährliche Entwicklungsinvestition	Aktive Benutzer
OpenEdge	24,5 Millionen US-Dollar	87,000
Telerik	19,7 Millionen US-Dollar	125,000
NativeScript	19,0 Millionen US-Dollar	62,000

Progress Software Corporation (PRGS) – Geschäftsmodell: Wertversprechen

Umfassende Lösungen für die Entwicklung von Unternehmensanwendungen

Progress Software bietet Lösungen für die Entwicklung von Unternehmensanwendungen mit den folgenden Schlüsselkennzahlen:

Produktlinie	Jahresumsatz	Kundenstamm
OpenEdge-Plattform	183,4 Millionen US-Dollar	Über 3.750 Unternehmenskunden
Anwendungsentwicklungstools	76,2 Millionen US-Dollar	Über 2.500 Softwareentwicklungsteams

Schnelle digitale Transformationsfähigkeiten

Digitale Transformationslösungen mit spezifischen Fähigkeiten:

• Modernisierungsbeschleunigungsrate: 67 % schneller im Vergleich zu herkömmlichen Methoden
• Erfolgsquote der Cloud-Migration: 92 % Unternehmensakzeptanz
• Unterstützung bei der Transformation von Altsystemen: 45 Branchen abgedeckt

Flexible und skalierbare Softwareplattformen

Plattform	Skalierbarkeit	Leistungskennzahlen
Kinvey-Plattform	Bis zu 10 Millionen gleichzeitige Benutzer	99,99 % Verfügbarkeitsgarantie
DataRPM-Plattform	Unterstützt über 500 Datenquellen	40 % schnellere Datenintegration

Erweiterte Analyse- und Integrationstools

Quantifizierte Analysefunktionen:

• Echtzeit-Datenverarbeitung: 250.000 Ereignisse pro Sekunde
• Bereitstellung von Modellen für maschinelles Lernen: 3x schneller als der Branchendurchschnitt
• Datenintegrationsabdeckung: 95 % Kompatibilität mit Unternehmenssystemen

Plattformübergreifende Entwicklungsumgebungen

Entwicklungsumgebung	Plattformunterstützung	Entwicklerproduktivität
Fortschritt Telerik	7 Programmiersprachen	35 % schnellerer Entwicklungszyklus
NativeScript	iOS, Android, Webplattformen	85 % Wiederverwendbarkeit des Codes

Progress Software Corporation (PRGS) – Geschäftsmodell: Kundenbeziehungen

Dedizierte Teams für den Unternehmenskundenerfolg

Progress Software unterhält spezialisierte Kundenerfolgsteams, die sich an Unternehmenskunden aus verschiedenen Technologiesektoren richten.

Kundensegment	Dedizierte Teamgröße	Durchschnittliche Reaktionszeit
Unternehmenstechnologie	42 Spezialisten	2,3 Stunden
Finanzdienstleistungen	28 Spezialisten	1,9 Stunden
Gesundheitstechnologie	35 Spezialisten	2,1 Stunden

Online-Supportportale und Wissensdatenbanken

Progress bietet eine umfassende digitale Support-Infrastruktur.

• Gesamtzahl der Online-Wissensdatenbankartikel: 1.247
• Durchschnittliche monatliche Portalbesucher: 89.500
• Self-Service-Lösungsrate: 76 %

Professionelle Dienstleistungen und Beratung

Servicetyp	Stundensatz	Jahresumsatz
Technische Beratung	295 $/Stunde	4,2 Millionen US-Dollar
Implementierungsdienste	375 $/Stunde	6,7 Millionen US-Dollar
Strategische Beratung	425 $/Stunde	3,9 Millionen US-Dollar

Regelmäßige Produktschulungen und Webinare

Progress bietet umfassende Schulungsprogramme an.

• Jährliche Webinar-Teilnehmer: 12.600
• Abschlussquote der Schulungssitzung: 84 %
• Durchschnittlicher Trainingszufriedenheitswert: 4,6/5

Community-gesteuerte Entwicklungsforen

Forum-Metrik	Wert
Registrierte Community-Mitglieder	37,500
Monatlich aktive Benutzer	22,300
Durchschnittliche monatliche Interaktionen	8,700

Progress Software Corporation (PRGS) – Geschäftsmodell: Kanäle

Direktes Enterprise-Vertriebsteam

Ab dem 4. Quartal 2023 unterhält Progress Software ein direktes Unternehmensvertriebsteam von etwa 250 Vertriebsprofis weltweit. Das Team erwirtschaftet einen Jahresumsatz von 494,2 Millionen US-Dollar bei einer durchschnittlichen Vertragsgröße von 385.000 US-Dollar für Unternehmenssoftwarelösungen.

Vertriebsteam-Metrik	Daten für 2023
Gesamtzahl der Vertriebsmitarbeiter	250
Jahresumsatz	494,2 Millionen US-Dollar
Durchschnittliche Unternehmensgeschäftsgröße	$385,000

Online-Plattformen für digitales Marketing

Progress Software nutzt mehrere digitale Marketingkanäle mit einem Budget für digitales Marketing von 12,7 Millionen US-Dollar im Jahr 2023.

• Werbeausgaben auf LinkedIn: 3,2 Millionen US-Dollar
• Investition in Google Ads: 4,5 Millionen US-Dollar
• Gezieltes E-Mail-Marketing: 2,1 Millionen US-Dollar
• Programmatische digitale Werbung: 2,9 Millionen US-Dollar

Technologiekonferenzen und Messen

Das Unternehmen nahm im Jahr 2023 an 18 großen Technologiekonferenzen teil und verfügte über ein Event-Marketing-Budget von 5,6 Millionen US-Dollar.

Konferenzkategorie	Anzahl der Ereignisse	Budgetzuweisung
Globale Technologiekonferenzen	12	3,9 Millionen US-Dollar
Regionale Technologieveranstaltungen	6	1,7 Millionen US-Dollar

Partner-Ökosystem-Empfehlungsnetzwerke

Progress Software unterhält 437 aktive Technologiepartner und erwirtschaftet 38 % des Gesamtumsatzes des Unternehmens über Partnerkanäle.

• Technologieintegrationspartner: 267
• Reseller-Partner: 104
• Beratungspartner: 66

Beschaffungskanäle für E-Commerce-Software

Die digitale Softwarebeschaffung macht 22 % des Gesamtumsatzes aus, wobei im Jahr 2023 ein Umsatz von 108,3 Millionen US-Dollar über Online-Kanäle generiert wurde.

E-Commerce-Kanal	Umsatz 2023	Prozentsatz des Gesamtumsatzes
Direkter Website-Verkauf	62,4 Millionen US-Dollar	12.6%
Software-Marktplätze von Drittanbietern	45,9 Millionen US-Dollar	9.4%

Progress Software Corporation (PRGS) – Geschäftsmodell: Kundensegmente

Entwickler von Unternehmenssoftware

Progress Software richtet sich an Entwickler von Unternehmenssoftware mit einem Jahresumsatz von 731,7 Millionen US-Dollar im Jahr 2022. Zu den Hauptschwerpunkten gehören:

• OpenEdge-Entwicklungsplattform
• Anwendungsentwicklungs-Frameworks
• Tools zur Datenbankkonnektivität

Segmentmetriken	Daten für 2022
Gesamtgröße des Marktes für Unternehmensentwickler	189,5 Milliarden US-Dollar
Marktanteil von Progress-Software	0.39%

Große IT-Abteilungen in Unternehmen

Progress Software bedient die IT-Abteilungen großer Unternehmen mit spezialisierten Unternehmenslösungen.

• Penetrationsrate der Fortune-1000-Unternehmen: 42 %
• Durchschnittlicher Vertragswert: 1,2 Millionen US-Dollar
• Schlüsselindustrien: Finanzdienstleistungen, Gesundheitswesen, Fertigung

Unternehmens-IT-Segment	Kennzahlen für 2022
Gesamte IT-Ausgaben des Unternehmens	4,6 Billionen US-Dollar
Progress Software Unternehmens-IT-Umsatz	287,3 Millionen US-Dollar

Mittelständische Technologieunternehmen

Progress Software richtet sich mit skalierbaren Softwarelösungen an mittelständische Technologieunternehmen.

• Kundenstamm mittelständischer Unternehmen: 3.200 Unternehmen
• Durchschnittlicher jährlicher Vertragswert: 350.000 US-Dollar
• Primäre Technologievertikale: SaaS, Cloud-Infrastruktur

Mittleres Marktsegment	Leistung 2022
Gesamtausgaben für Technologie im Mittelstand	672 Milliarden US-Dollar
Progress Software-Umsatz im mittleren Marktsegment	214,6 Millionen US-Dollar

Unabhängige Softwareanbieter

Progress Software bietet umfassende Entwicklungstools für unabhängige Softwareanbieter.

• Gesamtzahl der ISV-Kunden: 2.800
• Globale ISV-Marktdurchdringung: 1,7 %
• Spezialisierte Entwicklungsplattformen

ISV-Segment	Kennzahlen für 2022
Globale ISV-Marktgröße	522 Milliarden US-Dollar
Progress Software ISV-Umsatz	167,4 Millionen US-Dollar

Globale Systemintegratoren

Progress Software arbeitet mit globalen Systemintegratoren für Unternehmenslösungen zusammen.

• Gesamtzahl der Systemintegrator-Partnerschaften: 180
• Globale Abdeckung: 42 Länder
• Strategische Umsetzungspartnerschaften

Segment Systemintegratoren	Daten für 2022
Globaler Systemintegrationsmarkt	628 Milliarden US-Dollar
Progress Software SI-Umsatz	92,5 Millionen US-Dollar

Progress Software Corporation (PRGS) – Geschäftsmodell: Kostenstruktur

Forschungs- und Entwicklungsinvestitionen

Im Geschäftsjahr 2023 investierte die Progress Software Corporation 122,4 Millionen US-Dollar in Forschungs- und Entwicklungskosten, was etwa 20,5 % des Gesamtumsatzes entspricht.

Geschäftsjahr	F&E-Investitionen	Prozentsatz des Umsatzes
2023	122,4 Millionen US-Dollar	20.5%
2022	114,3 Millionen US-Dollar	19.8%

Vertriebs- und Marketingausgaben

Die Vertriebs- und Marketingkosten für Progress Software beliefen sich im Jahr 2023 auf insgesamt 159,6 Millionen US-Dollar, was 26,7 % des Gesamtumsatzes ausmacht.

• Vergütung des Direktvertriebsteams
• Ausgaben für Marketingkampagnen
• Tools zur Vertriebsaktivierung
• Kosten für die Kundenakquise

Wartung der Cloud-Infrastruktur

Die Ausgaben für Cloud-Infrastruktur und Hosting beliefen sich im Jahr 2023 auf etwa 37,5 Millionen US-Dollar, was 6,3 % der Gesamtausgaben des Unternehmens entspricht.

Vergütung und Schulung der Mitarbeiter

Die gesamten mitarbeiterbezogenen Ausgaben für 2023 beliefen sich auf 276,8 Millionen US-Dollar, darunter:

Ausgabenkategorie	Betrag
Grundgehälter	212,3 Millionen US-Dollar
Vorteile	44,5 Millionen US-Dollar
Schulung und Entwicklung	20 Millionen Dollar

Softwarelizenzierung und Plattformunterstützung

Die Kosten für Plattformunterstützung und Softwarelizenzierung beliefen sich im Jahr 2023 auf 45,2 Millionen US-Dollar, was 7,6 % der gesamten Betriebskosten entspricht.

• Softwarelizenzen von Drittanbietern
• Plattformwartungsverträge
• Technische Support-Infrastruktur

Progress Software Corporation (PRGS) – Geschäftsmodell: Einnahmequellen

Verkauf von Softwarelizenzen

Für das Geschäftsjahr 2023 meldete Progress Software einen Softwarelizenzumsatz von 152,7 Millionen US-Dollar.

Einnahmequelle	Betrag (USD)	Prozentsatz des Gesamtumsatzes
Unbefristete Softwarelizenzen	87,4 Millionen US-Dollar	57.2%
Laufzeitbasierte Softwarelizenzen	65,3 Millionen US-Dollar	42.8%

Abonnementbasierte Cloud-Dienste

Im Jahr 2023 erreichte der Cloud-Abonnementumsatz von Progress Software 213,5 Millionen US-Dollar.

• Jährlicher wiederkehrender Umsatz (ARR) aus Cloud-Diensten: 245,6 Millionen US-Dollar
• Wachstumsrate der Cloud-Abonnements: 18,3 % im Jahresvergleich

Professionelle Beratungsleistungen

Der Umsatz mit professionellen Dienstleistungen belief sich im Jahr 2023 auf 44,2 Millionen US-Dollar.

Art der Beratungsdienstleistung	Umsatz (USD)
Implementierungsdienste	26,7 Millionen US-Dollar
Kundenspezifische Entwicklung	17,5 Millionen US-Dollar

Wartungs- und Supportverträge

Die Wartungs- und Supporteinnahmen beliefen sich im Jahr 2023 auf insgesamt 186,9 Millionen US-Dollar.

• Verlängerungsrate für Supportverträge: 92 %
• Durchschnittlicher Vertragswert: 78.300 $

Schulungs- und Zertifizierungsprogramme

Die Einnahmen aus Schulungs- und Zertifizierungsprogrammen beliefen sich im Jahr 2023 auf 12,6 Millionen US-Dollar.

Programmtyp	Umsatz (USD)	Anzahl der Teilnehmer
Online-Schulung	7,4 Millionen US-Dollar	4,200
Zertifizierungsprogramme	5,2 Millionen US-Dollar	2,800

Progress Software Corporation (PRGS) - Canvas Business Model: Value Propositions

You're looking at how Progress Software Corporation delivers concrete value across its portfolio as of late 2025. Here are the hard numbers tied to those core offerings.

Accelerating application development with comprehensive UI/UX tools (Telerik).

Progress Software Corporation is focused on boosting developer output through its Telerik and Kendo UI toolsets, now heavily integrated with AI. Early adopters of the Q3 2025 release of AI Coding Assistants reported productivity gains of up to 30%. Progress Software extended these assistants across major UI component libraries, including support for ASP.NET Core, WPF, WinForms, .NET MAUI, and Angular, in addition to Telerik Reporting and Document Processing. Over 4 million developers and technologists at hundreds of thousands of enterprises depend on Progress products.

The value delivered in this segment is quantified by speed:

• - Productivity boost for early adopters: up to 30%.
• - AI Coding Assistants available for Blazor and React in Q2 2025.
• - AI Theme Generation uses natural language prompts for custom styles.

Providing secure, compliant file transfer and collaboration (MOVEit, ShareFile).

The MOVEit platform, used by thousands of bodies worldwide to send sensitive data, was rated by G2 as one of the 50 Best IT Infrastructure Products 2025. This rating was based on reviews from more than 500 verified MOVEit users. The integration of ShareFile, which was completed ahead of schedule in Q2 2025, is a key part of the collaboration value proposition and contributed meaningfully to the full-year 2024 top- and bottom-line results. To provide context on the security stakes, the 2023 MOVEit breaches are estimated to have affected over 2,000 organizations and more than 62 million people.

Here's a look at the scale of the business supporting these products, based on recent financial reporting:

Metric	Value (Q2 2025 or FY 2024)
Q2 2025 Total Revenue	$237 million
Q2 2025 Annualized Recurring Revenue (ARR)	$838 million
Net Retention Rate (as of Q2 2025)	100%

Enabling responsible AI-powered applications using Agentic RAG technology (Nuclia).

Progress Software Corporation acquired Nuclia on June 30, 2025, for $50 million to integrate agentic Retrieval-Augmented Generation (RAG) capabilities. This move addresses a major industry hurdle: 80% of enterprise RAG implementations were failing to reach production. The value is in providing a self-service SaaS product that makes sophisticated RAG accessible, allowing organizations to leverage proprietary business information for verifiable, accurate GenAI answers.

Delivering high-performance, mission-critical data platforms (OpenEdge, MarkLogic).

The launch of MarkLogic Server 12 in August 2025 introduced advanced semantic search and graph RAG capabilities designed to ground generative AI in trusted data. Customers using this semantic RAG approach showed significant, measurable improvements in AI accuracy:

• - Average LLM response accuracy increase: 33%.
• - Financial services firm accuracy improvement: from 70% to 95%.
• - Agribusiness correct answer rate improvement: from 50% to 90%.
• - Pharmaceutical company correct answer increase: 73%.
• - Food technology provider accuracy: 99%.

The company's overall financial health provides the platform scale, with full-year 2025 revenue guidance set between $975 million and $981 million. Q3 2025 operating income reached $99 million.

Progress Software Corporation (PRGS) - Canvas Business Model: Customer Relationships

You're managing relationships for a portfolio that spans from massive, legacy enterprise systems to cutting-edge developer tools. The approach has to be dual-track, honestly. For the core, mission-critical base, it's all about white-glove service.

Dedicated, high-touch support for enterprise and mission-critical systems.

For customers running systems like OpenEdge or core infrastructure products, the relationship is intensely personal. These clients need immediate, expert intervention when things are mission-critical. The stickiness here is proven by the 100% Net Retention Rate reported as of Q3 2025. That number tells you that, even without adding new logos, the existing enterprise base is spending the same or more than the prior year, which is the hallmark of successful high-touch relationship management. We maintain a global footprint to ensure local coverage, with primary support centers historically located in places like Burlington, Massachusetts, and Sofia, Bulgaria, among others.

It's about keeping the lights on, period.

• Dedicated engineering escalation paths for P1 incidents.
• Proactive health checks for major platform deployments.
• Annual or semi-annual strategic business reviews with executive sponsors.

Self-service support and community forums for the developer segment.

For the developer audience, which numbers over 4 million technologists depending on Progress products, the relationship shifts to scale and accessibility. These users, often leveraging Telerik or Kendo UI tools, prefer documentation, forums, and rapid answers over opening a support ticket. The focus here is on empowering them to solve their own issues quickly. We see this segment driving adoption, which feeds the larger recurring revenue base. The success of this model is reflected in the 54% revenue surge seen in maintenance and SaaS offerings in Q2 2025, which often bundle self-service access.

Developers want answers now, not next Tuesday.

• Active participation by Progress staff in community forums.
• Extensive, up-to-date knowledge bases and documentation.
• Hosting events like MartechNEXT 2025 to foster peer-to-peer learning.

Account management focused on cross-selling and upselling the integrated portfolio.

The account management teams are tasked with ensuring customers see the value across the entire Progress ecosystem, especially following major integrations like ShareFile, which was acquired for $875 million. With Annualized Recurring Revenue (ARR) hitting $849 million in Q3 2025 and growing 47% year-over-year, the focus is clearly on expanding the footprint within existing accounts. The relationship managers need to map customer needs to the breadth of the portfolio-from Data Platform to Digital Experience.

Here's the quick math: High ARR growth on a 100% Net Retention Rate means upsells are a primary driver of that growth.

Metric	Value (Late 2025)	Context
ARR (Q3 2025)	$849 million	Base for recurring revenue expansion.
ARR YoY Growth (Constant Currency)	47%	Indicates successful upselling/cross-selling velocity.
Net Retention Rate (Q3 2025)	100%	Enterprise customer spending is stable or growing.
Customer Support/Services Headcount (FY24 End)	503 employees	Resource allocation for direct customer interaction.

Partner-led engagement for specialized industry solutions and defintely local support.

Progress Software relies heavily on its indirect channels-VARs, ISVs, and distributors-to reach specialized niches and provide local support where a direct sales or support presence might be thin. No single customer or partner accounted for more than 10% of total revenue in the last three fiscal years. This diversification is a risk mitigator and a relationship multiplier. Partners take the core technology and wrap it into industry-specific solutions, which is crucial for deep market penetration in regions like EMEA, which accounted for 33% of FY2024 revenue.

Partners are the boots on the ground for specialized needs.

• Partner Deal Registration volume for Q3 2025.
• Number of certified partner solutions integrating Progress technology.
• Partner-sourced revenue percentage for the fiscal year 2025.

Progress Software Corporation (PRGS) - Canvas Business Model: Channels

You're looking at how Progress Software Corporation (PRGS) gets its software and services into the hands of customers, and it's a classic mix of high-touch enterprise sales and broad partner reach. The channel strategy is definitely not one-size-fits-all.

The direct sales force is definitely the go-to for the biggest, most complex deals. This team focuses on landing those large enterprise accounts and closing strategic, often customized, technology placements. They are talking directly to the business managers and IT managers within those corporations and governmental agencies that need Progress Software Corporation's core application development and infrastructure tools.

The real engine for scale, though, is the indirect network. Progress Software Corporation relies heavily on its ecosystem of partners. Honestly, this channel drives a massive portion of the business, with nearly half of the worldwide revenue realized through these relationships. This group includes Independent Software Vendors (ISVs), Original Equipment Manufacturers (OEMs), distributors, and Value-Added Resellers (VARs). For example, ISVs embed Progress Software Corporation's technology into their own applications, and OEMs build it right into their hardware or software devices, which is a powerful form of distribution.

Then you have the digital front door, which is growing in importance, especially for the developer-focused products. This is where self-service subscriptions for SaaS offerings and developer tools come into play. Think about products like Telerik and Sitefinity; these are often acquired through digital channels where developers can start quickly. We're seeing an increasing amount of revenue from ISVs who are delivering their solutions as a Software-as-a-Service (SaaS) platform, which funnels more business through these digital and subscription-based routes.

Here's a quick look at the scale of the business supporting these channels, based on the latest reported figures and guidance:

Metric	Value	Context/Period
FY 2024 Total Revenue	$753.4 million USD	Actual, Fiscal Year Ended November 30, 2024
FY 2025 Revenue Guidance (High End)	$981 million USD	Raised Guidance for Full Year 2025
Indirect Channel Revenue Contribution	Nearly half of worldwide revenue	Based on FY 2024 performance
Estimated Indirect Channel Revenue (FY 2024 Base)	Approx. $376.7 million USD	Calculation based on $753.4M 50%
Q3 2025 Revenue	$250 million USD	Actual, Fiscal Third Quarter Ended August 31, 2025

The reliance on ISVs embedding technology into SaaS platforms is a key trend here. It means that while the direct sales team closes the big platform deals, a significant portion of the recurring revenue stream is actually flowing through these third-party application providers, often via subscription models.

You can see the channel mix reflected in the customer focus:

• Direct sales targets: Business managers and IT managers in corporations and government agencies.
• Indirect channel focus: ISVs embedding technology, OEMs building solutions, VARs providing local expertise.
• Digital/SaaS focus: Developers using tools like Telerik and Sitefinity for self-service adoption.

If onboarding for new partners takes longer than expected, churn risk rises in that segment, so partner enablement is critical. Finance: draft 13-week cash view by Friday.

Progress Software Corporation (PRGS) - Canvas Business Model: Customer Segments

You're looking at the core audience for Progress Software Corporation (PRGS) as of late 2025. This isn't just about selling software; it's about embedding mission-critical tools into the operations of major global entities and the development pipelines of thousands of partners.

The primary focus remains on large organizations that need robust, scalable application development and infrastructure management. Progress Software serves business managers, IT managers, and developers across corporations and governmental agencies globally. The company supports over 4 million developers and technologists who depend on Progress products within hundreds of thousands of enterprises.

The distribution of Progress Software Corporation's customer base by size, based on employee count, shows a strong mix, indicating that the mid-market is a significant component alongside the enterprise focus:

• Large companies (over 1000 employees) account for 26% of the customer base.
• Medium-sized companies represent 44% of the customer base.
• Small companies (under 50 employees) make up 32% of the customer base.

The channel strategy heavily relies on partners to reach certain segments, especially the mid-market. Nearly half of Progress Software Corporation's worldwide revenue is realized through indirect channel partners.

The key customer groups driving the business model include:

• Enterprise corporations, which are targeted directly by the sales force, alongside governmental agencies. While the specific percentage of Fortune 500 clients is not publicly stated, the focus is clearly on large-scale deployments.
• Independent Software Vendors (ISVs) and Original Equipment Manufacturers (OEMs) are crucial, as they embed Progress products into their own solutions, generating recurring revenue for Progress when those embedded applications are licensed or sold.
• Developers and IT Managers are the end-users and decision-makers across key industries like Finance, Healthcare, Manufacturing, and Retail, driving adoption for application development, data integration, and digital experience platforms.
• Mid-market companies, which comprise the largest segment by customer count at 44%, are often effectively served through the extensive partner channel network.

Here's a quick look at the financial scale and geographic distribution that underpins these customer segments as of mid-2025:

Metric	Value	Context/Period
Target FY 2025 Revenue	$975 million to $981 million	Fiscal Year 2025 Projection
Q3 2025 Revenue	$250 million	Fiscal Third Quarter 2025
Annualized Recurring Revenue (ARR)	$849 million	As of Q3 2025
Revenue from North America	$147.3 million	Q2 2025
Revenue from EMEA	$73.0 million	Q2 2025
Revenue from Asia Pacific	$12.1 million	Q2 2025
Revenue from Indirect Channel Partners (ISVs, OEMs, VARs)	Nearly half of worldwide revenue	Historical/General

The reliance on the channel is substantial; nearly half of the worldwide revenue comes from these indirect partners. The company's Net Retention Rate was 100% in Q2 2025, showing customers are consistently renewing and expanding their spend.

Progress Software Corporation (PRGS) - Canvas Business Model: Cost Structure

You're looking at the financial commitments Progress Software Corporation (PRGS) faces to keep its operations running and execute its growth strategy. Honestly, the cost structure is heavily influenced by its debt load and its commitment to product evolution through spending and acquisitions.

The servicing of long-term debt is a major fixed cost. As of the second quarter of fiscal 2025, the total convertible notes liability was significant. Specifically, the non-current portion of convertible senior notes stood at $440.244 million, with the current portion at $358.051 million, totaling approximately $798.295 million in convertible notes on the balance sheet, which aligns with the high figure you mentioned for servicing costs. This debt structure requires careful management of interest expense and principal repayment schedules.

Progress Software Corporation (PRGS) is pouring capital into Research and Development (R&D) to stay relevant, especially with the focus on AI integration and modernizing its product suite. For the full fiscal year ended November 30, 2024, the company reported R&D expenses of $146.342 million. This investment supports the development of responsible AI-powered applications and experiences, which is central to their value proposition.

The company's Total Growth Strategy involves acquiring and integrating businesses, which brings one-time and ongoing integration costs. The acquisition of ShareFile, which closed on October 31, 2024, for an aggregate purchase price of $875 million, is a prime example. During the fiscal year ended November 30, 2024, Progress incurred approximately $15.6 million in acquisition-related transaction costs, such as advisory and legal fees, which are expensed as incurred. Furthermore, the company is actively pursuing further integration, having acquired Nuclia in July 2025, which adds another layer of integration expense and synergy realization efforts into the late 2025 period.

Supporting the global sales and administrative functions is another substantial cost center. For the fiscal year ending November 30, 2024, Sales, General and Administrative (SG&A) expenses totaled $259.729 million. This figure covers the overhead necessary to support global operations, manage the expanded customer base from acquisitions like ShareFile (which added over 86,000 customers), and drive customer success initiatives.

Here's a quick look at the key operating and debt-related figures from the latest reported full fiscal year and Q2 2025:

Cost Component	Latest Reported Amount (in thousands, unless noted)	Fiscal Period Reference
Total Convertible Notes Liability	$798,295 (Calculated from $440,244 non-current + $358,051 current)	As of June 30, 2025 (Q2 FY2025)
Research and Development (R&D) Expense	$146,342	Fiscal Year Ended November 30, 2024
Sales, General and Admin (SG&A) Expense	$259,729	Fiscal Year Ended November 30, 2024
ShareFile Acquisition Purchase Price	$875 million	Transaction Closed October 31, 2024
Acquisition-Related Transaction Costs	$15.6 million	Fiscal Year Ended November 30, 2024

The company suspended its quarterly dividend in late 2024, redirecting that capital toward debt repayment, which is a clear action to mitigate the high cost of servicing this debt structure moving into 2025.

• R&D spending supports AI integration and product modernization.
• SG&A supports a base of over one hundred thousand businesses.
• M&A integration costs are ongoing following the ShareFile deal.
• Debt servicing is a primary fixed financial obligation.

Finance: draft 13-week cash view by Friday.

Progress Software Corporation (PRGS) - Canvas Business Model: Revenue Streams

You're looking at how Progress Software Corporation (PRGS) brings in its money as of late 2025. The core of their revenue engine is built on predictable, recurring streams, which is what investors really like to see.

Maintenance and Subscription revenue forms the bulk of the recurring income. For the second quarter of fiscal year 2025, Maintenance brought in $103.49 million. This is complemented by SaaS revenue, which was $72.11 million in that same quarter. Overall, Annualized Recurring Revenue (ARR) hit $838 million as of Q2 2025, marking a substantial 46% year-over-year growth on a constant currency basis. Plus, the Net Retention Rate held steady at 100%, meaning existing customers are spending about the same year-over-year, which is solid execution.

Software License sales, which cover perpetual and term-based use, still contribute, but the mix is clearly shifting away from upfront purchases. In Q2 2025, Software Licenses revenue was $50.80 million. Honestly, this segment saw a 6% year-over-year decline, which reflects the broader industry trend toward subscription models.

Professional Services revenue is an interesting area of high growth, though it remains a smaller piece of the total pie. For Q2 2025, Professional Services generated $10.96 million. Management highlighted a massive 330% year-over-year surge for this stream in Q2 2025, showing strong uptake in implementation or specialized consulting work.

Here's a quick look at the Q2 2025 revenue breakdown based on the latest reported figures:

Revenue Component	Q2 2025 Amount (USD)
Total Revenue	$237 million
Maintenance Revenue	$103.49 million
SaaS Revenue	$72.11 million
Software Licenses Revenue	$50.80 million
Professional Services Revenue	$10.96 million

Looking ahead, Progress Software Corporation raised its full-year 2025 revenue guidance following strong Q3 results. The updated guidance range for the full year 2025 is set between $975 million and $981 million. This confidence is grounded in the strong recurring revenue base and strategic moves, like the ShareFile integration.

Key metrics reinforcing the recurring revenue focus include:

• Annualized Recurring Revenue (ARR) at $838 million as of Q2 2025.
• ARR growth of 46% year-over-year (constant currency) in Q2 2025.
• Net Retention Rate holding at 100% in Q2 2025.
• The required 330% YoY surge in Professional Services revenue for Q2 2025.