SEC investigation into MOVEit exploitation by Progress Software persists with the company's ongoing collaboration
Progress Software, a leading software company, has reported its financial results for the first quarter of 2024, showing a revenue of $185 million. This figure is consistent with the company's earlier guidance for the fiscal year, which anticipates between $722 million and $732 million in revenue for the full year.
However, the company is currently facing investigations by multiple entities, including the SEC, FTC, data privacy regulators, several attorneys general, and foreign regulators, regarding the MOVEit vulnerability and related attacks. These investigations were initially disclosed by Progress Software in October 2023, following mass exploitation activity that affected thousands of companies and organizations.
MOVEit, although representing only 4% of the company's total revenues, is considered important by CEO Yogesh Gupta for every customer using it. The company is cooperating with these investigations, and the inquiries do not indicate any law violations by anyone at the company or a negative impression of the company by the agencies.
Progress Software is also considering acquiring MariaDB, a company providing open source relational database management software. A potential offer for MariaDB is 60 cents per share, which is 9% higher than the previous offer by K1 Investment Management. If accepted, the new offer would be valued at approximately $40.5 million.
CEO Yogesh Gupta stated that the company has received positive feedback for its response to the situation. The forecast for the fiscal year anticipates about $5.8 million in cyber incident and vulnerability response expenses. In the first quarter, the company incurred $987,000 in such expenses.
As of now, there are no publicly available details or updates regarding any SEC investigation into Progress Software. The recent SEC filings mentioned refer to insider stock purchases by David Krall, a director at Progress Software, with no indication of an investigation or related enforcement action.
Recent news highlights strong financial performance by Progress Software in Q2 2025, with revenue growth, improved margins, and raised guidance. However, it does not mention any SEC investigation or regulatory issues related to the company.
In conclusion, while Progress Software is facing investigations regarding the MOVEit vulnerability, the company's financial performance remains strong, and there is no publicly available information suggesting an SEC investigation is ongoing.
- Progress Software's financial results for Q1 2024 show revenue of $185 million, consistent with their earlier guidance of $722 million to $732 million for the fiscal year.
- The company is currently under investigation by multiple entities, including the SEC, FTC, data privacy regulators, attorneys general, and foreign regulators, regarding the MOVEit vulnerability and related attacks.
- CEO Yogesh Gupta has stated that the company has received positive feedback for its response to the situation, and the forecast for the fiscal year anticipates about $5.8 million in cyber incident and vulnerability response expenses.
- In addition to addressing the ongoing investigations, Progress Software is considering acquiring MariaDB, a company providing open source relational database management software, for approximately $40.5 million.
