Should investors worry about SKIL's Q1 2025 EPS miss?

**Investors should not necessarily worry about Progress Software Corp's (SKIL) Q1 2025 EPS miss.** Here's why:

1. **Revenue Growth**: The company has demonstrated strong revenue growth, with a 29% year-over-year increase in Q1 2025, reaching $238 million. This is a positive indicator of the company's business expansion and market demand for its products.
2. **Annualized Recurring Revenue (ARR) Growth**: Progress Software Corp has seen a significant increase in ARR, growing by 48% year-over-year to $836 million. ARR is a key metric for software companies, as it reflects the recurring revenue generated from subscriptions. This growth suggests a strong customer base and a sustainable revenue model.
3. **ShareFile Integration**: The integration of ShareFile has contributed significantly to the company's financial performance. This strategic acquisition has not only brought in revenue but has also led to expense savings, indicating operational efficiency.
4. **Net Retention Rate**: The company's Net Retention Rate has surpassed 100%, which is a strong indicator of customer loyalty and satisfaction. This suggests that existing customers are continuing to use and expand their usage of Progress Software Corp's products, which is beneficial for long-term revenue growth.
5. **Market Position and Strategy**: The company's focus on AI-powered solutions aligns with current market trends, positioning it well for future growth. This strategic direction is likely to attract investors who are looking for companies with strong growth potential.

While the EPS miss may raise some concerns, the overall financial performance of the company, including the revenue growth, ARR increase, and strategic initiatives, suggest that investors should not worry excessively about the EPS miss in Q1 2025. However, it is important for investors to monitor the company's future earnings reports to ensure that the trends are sustainable and that profitability is improving over time.