Strong Cloud Revenue Growth
Q1 cloud revenue was $485 million, up 6% year-over-year. Content Cloud grew 21% year-on-year in Q1, driven by bookings in financial services, energy, utilities, and telecom sectors.
Increase in Enterprise Cloud Bookings
Enterprise cloud bookings were up 20% year-on-year in Q1, positioning the company towards achieving its fiscal '26 outlook range of 12% to 16% growth.
Improved Profit Margins
Q1 GAAP-based gross margins were 72.8%, up 100 basis points year-over-year, and adjusted EBITDA margin was 36.3%, an increase of 130 basis points year-over-year.
Record Number of Large Deals
Closed 33 deals greater than $1 million in Q1, up 43% year-on-year, with key wins in various sectors, including healthcare and cybersecurity.
Free Cash Flow Surge
Q1 free cash flow was $101 million, a significant increase of $218 million year-over-year.
Commitment to Strong Financial Position
Company reports a solid financial foundation with expanding margin and free cash flow, and a strategy to reduce debt, pay dividends, and reinvest in growth.