Good day, and welcome to the Progress Software Corporation Q4 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Mike Micciche, Senior Vice President of Investor Relations. Please go ahead.
Thank you, Sherry. It's always great to be in your capable hands. Thank you. Before we get started here, we're going to go over our Safe Harbor statement. During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, our acquisition of ShareFile, which closed on October 31st, 2024, and other information that might be considered forward-looking. Such forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties. For a description of the risk factors that may affect our results, please refer to the risk factors in our filings with the Securities and Exchange Commission. Progress Software assumes no obligation to update forward-looking statements included in this call. Additionally, please note that all the financial figures referenced in this call are non-GAAP measures unless otherwise indicated.
You can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP figures in our financial results press release, which was issued after the market closed today. This document contains additional information related to our financial results for the fourth quarter and full fiscal year 2024, and I recommend that you reference it for specific details. We've also provided a presentation that contains supplemental data for our fourth quarter and full fiscal year 2024 results, provides highlights and additional financial metrics. Both the earnings release and the supplemental presentation are all available on the Investor Relations section of our website at investors.progress.com. Today's call will be recorded in its entirety and should be available for replay on the Investor Relations section of our website shortly after we finish. With that, I'll turn it over to Yogesh.
Thank you, Mike. Good afternoon, everyone, and thank you for joining our Q4 2024 financial results conference call. Fiscal 24 was another outstanding year for Progress, as you can see from our published results. We registered another strong performance in Q4, marked by continued demand across our product portfolio, especially for our data platform products like MarkLogic, OpenEdge, and DataDirect, and our AIOps network management products. Our data platform products are the foundation for mission-critical applications at over 100,000 businesses, and we are living in a world where business data is increasingly important for responsible AI applications. We exceeded the high end of guidance on earnings and free cash flow, and ARR grew by 46% in constant currency. Our net retention rates came in above 100%, which holds true even when you completely exclude ShareFile from our results.
We generated $238 million in unlevered free cash flow on revenues of $753 million, close to the high-end guidance of $755 million. As a reminder, ShareFile contributed only one month of revenues in Q4. Our strong top-line performance, coupled with excellent expense management, led to the significant outperformance in earnings and free cash flow. I'm extremely proud of our team for their dedication and their relentless commitment to excellence. Anthony will go through our excellent results in more detail and provide FY 2025 guidance shortly. But in the meantime, I'd like to share some highlights of FY 2024. As you might recall, we received good news in August from the SEC, which concluded its investigation into the MOVEit vulnerability with no actions recommended. Earlier in the year, several international data privacy regulators also closed their investigations without action.
We are heartened by these confirmations that Progress did the right thing in addressing the attack on MOVEit and are happy to focus on the business of our business. The biggest highlight of the year, of course, was that we closed the acquisition of ShareFile on October 31st, and we've had an excellent start to our integration process. Because ShareFile was a carve-out and not a standalone company, you will recall that we're operating under a transition services agreement with Cloud Software Group, or CSG. We're working diligently towards ending our reliance on the transition services from CSG in a rapid and timely manner.
We've already completed or are well into some of the more immediate synergies, such as eliminating duplicate infrastructure, transitioning ShareFile employees to our collaboration and HR systems, working with customers and partners to ensure a smooth transition, and all the other activities we customarily initiate upon closing. While it's still very early, the integration is on track, and we expect to complete the full integration of ShareFile within the 12-month timeframe we provided when we announced our Q3 results. And as we indicated when we announced the deal, we believe our 40% threshold for operating margins for the acquired business is attainable by the end of FY 2025. We expect ShareFile to add about $250 million to the top line in FY 2025, which will be 100% SaaS recurring revenue. This meaningfully increases the percentage of Progress's total SaaS revenue, getting it close to 30%.
It also adds excellent stability and visibility to our top line by significantly raising the share of recurring revenue to well over 85% of our overall revenue. Anthony will share more on this. Perhaps more importantly, ShareFile is a native SaaS platform with gross margins in excess of 80% and will benefit our own SaaS journey. ShareFile's proven at-scale SaaS platform, combined with the expertise of the technologists that joined us with this acquisition, provides us the foundation to accelerate our own SaaS product deliveries. It will also make it easier for us to integrate any additional SaaS companies that we may acquire in the future. What's more, with this demonstrable proof point of evaluating, buying, and integrating a large SaaS business into our company, the universe of potential acquisition now expands to include other SaaS businesses as well.