Strong ARR and Cloud Momentum
Cloud ARR grew 31% year-over-year to $459.3M and now represents 82% of total ARR of $560M (total ARR +23% YoY), demonstrating strong cloud migration and subscription mix.
Revenue Growth and SaaS Mix Expansion
SaaS revenue was $107.9M, up 27% YoY and comprised nearly 3/4 of total revenue; total revenue was $146.0M, up 13% YoY.
High Cloud Net Revenue Retention
Cloud net revenue retention remained healthy at ~123%, supported by expansion within $100k+ ARR accounts and cross-sell/up-sell motions.
Profitability, Margins and Cash Generation
Non-GAAP gross margin expanded to 78.8% (from 77.9% a year ago). Non-GAAP operating income increased to $25.7M (from $20.3M, +26.6% YoY). Company delivered record free cash flow of $63.4M and ended Q3 with $146.8M in cash.
Strong Forward Visibility and Customer Base
Remaining performance obligations were $791.4M, up 27% YoY. Clients generating at least $100k ARR reached 858 (over +100 net adds YoY). The $50k+ ARR cohort exceeded 1,375 clients and represents ~95% of ARR.
Celeste Early Traction and Strategic Partnerships
Celeste, the agentic AI platform, launched in limited availability and drove over 15% of net new bookings in the quarter; strategic alliances (Microsoft, Anthropic, Harvey) were highlighted as validation.
Marketing and Demand Generation Momentum
Amplify attendance grew >40% YoY, digital impressions +80%, client/partner engagement +110%. Celeste content drove 3x average engagement and averaged >9 minutes per visit. April webinars set company records for registrants and attendees; sales development meetings in April exceeded goals by >65%.
Active Buybacks and Capital Allocation
Board authorized an additional $200M repurchase program; company repurchased $100M (~3.9M shares) in Q3 and has repurchased over 7M shares year-to-date, reflecting confidence in the business.
Product Wins and Cross-Vertical Adoption
New client wins and expansions across legal, accounting, financial services and real assets (e.g., Ropes & Gray added DealCloud and Celeste; multiple accounting and financial services firms adopted Collaboration, Walls, Time and DealCloud), signaling cross-vertical demand.
Guidance and FY Outlook
Q4 guidance: SaaS $113.1M–$114.1M, total revenue $149.1M–$150.1M, non-GAAP operating income $28.4M–$29.4M, non-GAAP EPS $0.36–$0.38. FY guidance: SaaS $421M–$422M, total revenue $574.3M–$575.3M, non-GAAP operating income $102.7M–$103.7M, non-GAAP EPS $1.22–$1.24.