0001193125-25-312847
SEC filingPlatform revenue growth of 25% drove total revenue to $249M, with gross margin expanding to 70.8% from 65.2%.
In Q3 fiscal 2026 (three months ended October 31, 2025), total revenue rose 25% YoY to $249.2M, driven by platform revenue growth of 25% ($48.4M increase) and professional services revenue growth of 19% ($1.5M). Subscription revenue, the largest component, grew 26% YoY, while usage-based revenue grew 24%. Gross profit increased 36% to $176.3M, with total gross margin expanding 560 bps to 70.8%. Platform gross margin improved 450 bps to 77.2% due to the reclassification of customer success costs to sales and marketing and reduced impairment losses. Professional services gross margin improved to -91.0% from -111.8% on cost savings. Operating expenses increased 26% to $218.6M, with sales and marketing up 15%, R&D up 19%, and G&A up 53% (driven by $13.5M in Co-Founder performance-based RSUs). Loss from operations improved to $42.2M from $44.0M. Net loss narrowed to $39.5M from $46.5M, helped by higher interest income and lower interest expense.
The platform segment remains the primary growth engine, with revenue of $239.6M (96% of total). Its gross margin expanded significantly as the company scaled and shifted certain costs. Professional services remain a drag on overall margins but improved YoY. The net dollar retention rate exceeded 110%, indicating strong customer expansion.
No specific numerical guidance was provided in the MD&A. Management highlighted continued investment in R&D and sales to drive GTV growth and customer adoption. The company expects to become a large accelerated filer in fiscal 2027. Key risks include competition and the ability to retain customers, but the strong retention rate and platform stickiness provide a positive outlook.