Rayfront Software Industry Q3 Financial Report Season: Strong demand for cloud services and AI expected to deliver better-than-expected results.

With the arrival of the financial report season, a industry research report from the Wall Street financial giant Ruihui shows that American Software, Inc. Class A as a whole is expected to achieve better-than-expected growth in the third quarter. "Our overall research results for the third quarter are very robust," said Gregg Moskowitz, leading the Ruihui analyst team in a detailed investor report. "The performance of public cloud/consumer data is quite impressive, the application penetration rate of artificial intelligence remains strong. There is a good demand trend for network security, although there are reports of transaction delays. Lastly, the Software-as-a-Service (SaaS) sector shows resilience, and performance in one or two niche areas seems to have improved." As the financial reporting season approaches, Ruihui believes that the strongest performing software companies include the following, all of which have been rated as "outperforming the market": - Microsoft Corporation (MSFT.US): Target price raised from $625 to $640; - Datadog (DDOG.US): Target price raised from $155 to $170; - Palo Alto Networks (PANW.US): Target price raised from $210 to $220; - CyberArk (CYBR.US): Currently in the process of being acquired by Palo Alto, target price raised from $500 to $520. In addition, Ruihui also expects Atlassian (TEAM.US) to deliver solid performance, with the current target price being $235 and also receiving an "outperform the market" rating. Moskowitz noted, "Our expectation for the industry's third-quarter revenue is approximately 3% growth compared to the previous quarter, and an 18% growth on a year-over-year basis. As for the exchange rate, the USD to Euro rate has depreciated by 3 basis points compared to the previous quarter, and the USD to GBP rate has depreciated by 1 basis point. However, most of the exchange rate movements occurred before the management provided performance guidance. Therefore, we expect the exchange rate in the third quarter to only have a slight additional tailwind effect. Overall, we expect the industry's average revenue to likely exceed our latest expectations." He added, "Our research results for Atlassian this quarter have been positive, including slight improvements in their cloud migration activities. We are optimistic that the company will deliver good performance in the first quarter of fiscal year 2025 (F1Q). Our research results for Microsoft Corporation's Azure have been very positive, and we expect Azure's year-over-year growth rate (calculated at a fixed exchange rate) to exceed the company's guidance of around 37%."