Progress Software Corporation (NASDAQ:PRGS) shares closed more than 5% lower on Wednesday, despite the company’s reported strong Q4 results, with EPS coming in at $0.92, beating the consensus estimate of $0.74. Quarterly revenue was $143.7 million, compared to the Street estimate of $135.4 million. The company benefited from an accommodative spending environment and strong demand for its products (OpenEdge, DevTool, Ipswitch, and DataDirect).

On the negative side, margins are expected to remain under pressure in the near term as Kemp is integrated. Despite these expected near-term headwinds, the analysts at Oppenheimer are confident that management can continue its execution and capitalize on a strong acquisition pipeline to reach $1 billion in annual revenue by 2025.