Research Reports

Revenue: Q3 FY2026 revenue of $125M, up 5% YoY (prepared).
Operating margin: Non-GAAP operating margin of 29%, exceeding guidance and expanding 750 bps YoY (CEO).
GAAP profitability: Second consecutive quarter of GAAP net income; Q3 GAAP net income was $160M, including a one-time income tax benefit of $154M from release of valuation allowance (CFO).
Annual Recurring Revenue (ARR): $497M, 3% YoY growth (CEO).
Dollar-Based Net Retention (DBNR): 100% in Q3 vs 102% in Q2; pressure expected to continue in Q4 (CFO).
Customer metrics: Customers spending >$100K ARR grew 5% YoY to 867; total paid customers 15,398, up 2% YoY; paid + free customers >34,000, up ~13% YoY (CFO).
Gross margin: 87%, above the 84%-86% target range (CFO).
Free cash flow (FCF): $21M or 17% of revenue; cash from operations $25M or 20% of revenue (CFO).
Total RPO: ~$450M, up 2% YoY; ~$287M (69%) expected to be recognized over next 12 months (CFO).
Trailing 12-month billings: $496M, up 4% YoY; Q4 trailing 12-month billings growth expected to be flat (CFO).
Share repurchases: Repurchased 2.4M shares in Q3; $162M remaining on $200M authorization (CFO).

Q4 FY2026 revenue: $122M–$124M, representing 0%–2% growth (CFO).
Q4 FY2026 net income per diluted share: $0.24–$0.25; implies operating margin of 21% (CFO).
Full FY2026 revenue: $490M–$492M, representing 5% growth (prior range: $493M–$497M) (CFO).
Full FY2026 net income per diluted share: $1.11–$1.12; implies operating margin of 24% (prior: 21%–22%) (CFO).

"We delivered revenue of $125 million, up 5% year-over-year. Non-GAAP operating margin of 29% exceeded guidance, expanding 750 basis points over last year." (CEO)
"While the number of customers churning and downgrading is trending downwards, the dollar value of the contraction, driven by seat-based reductions and customer budget caution has been larger than we forecast." (CFO)
"We are expanding margins, generating cash and progressing the pricing and go-to-market transitions that support durable growth." (CFO)
"Our product velocity and expansion into cutting-edge use cases continue to widen our competitive moat." (CEO)
"This will be our sixth consecutive year of expanding operating margins as part of our commitment to profitable growth." (CEO)

Metric	Value	Speaker/Context
Revenue	$125M	Q3 FY2026, up 5% YoY (prepared)
Non-GAAP Operating Margin	29%	Up 750 bps YoY (CEO)
GAAP Net Income	$160M	Includes $154M one-time tax benefit (CFO)
ARR	$497M	3% YoY growth (CEO)
Dollar-Based Net Retention	100%	Q3 vs 102% Q2 (CFO)
Gross Margin	87%	Above target range 84%-86% (CFO)
Free Cash Flow	$21M	17% of revenue (CFO)
Total RPO	~$450M	Up 2% YoY (CFO)
Customers >$100K ARR	867	Up 5% YoY (CFO)
Total Paid Customers	15,398	Up 2% YoY (CFO)
Paid + Free Customers	>34,000	Up ~13% YoY (CFO)
Trailing 12-Month Billings	$496M	Up 4% YoY (CFO)
Q4 FY2026 Revenue Guidance	$122M–$124M	0%-2% growth (CFO)
Full FY2026 Revenue Guidance	$490M–$492M	5% growth (CFO)
Q4 FY2026 Operating Margin Guidance	21%	Implied (CFO)
Full FY2026 Operating Margin Guidance	24%	Prior 21%-22% (CFO)