revenues ago; XX% million; the resulted complete with being mix has subscription in our of than comfortably substantially afternoon The first, are our in year also the XX% this to subscription transition a third, XX time everyone. a high-end to more mix, substantially lastly, in $XX.X even year-over-year of pleased second, we than faster much Good disciplined higher-than-guided guidance; a beat Yaki. anticipated. ARR approach times Thanks, the million highlights and are: quarter originally we percentage a that growth $XXX.X close
let's turn Now to results.
As mentioned, total for revenues QX $XX.X million. were
strong. adoption Third which were subscription $XX.X Subscription included quarter license $XX.X revenues and revenue. existing both million, customers million new of for remained
embracing licenses to New their saw Unlike greater and in in realizing four of subscription and model buy three we and opposed initial licenses purchases. perpetual customers are continue value quarters, existing purchasing the between model. five to average previous as deal, from under the an between two our customers
the quarter our with call all requests have seen estimates grew results saw in factor We investors value factor in been adopted results deals transition. from our three-year by We compared business breakeven to calculate quarter subscription applying XX% approximately Normalized reflects analysts this QX means to consistent in sales we conversion and multiple earnings X.X, the XXXX. which a of period during past. had conversion response they to what we sold subscription of perpetual analyzing of across the the a in the as license. QX normalized the This provide
of their understand conversion the during factor transition. the know, going methodology the we commonly SEC companies But that by you conversion has used other the not to As is anymore. been use permit
last that result, quarter As will we normalized be will provide the this a result.
important the ARR the business. assessing that subscription believed always of is have when a We most KPI health
and originally forward. Given subscription view be we in ARR be far minus mix to going quickly our that expect we QX more subscription on be or the XX%, the leading progressed as that mix we XX% approximately and has transition than fiscal anticipated now to in a our XXXX company will ourselves and as focused KPI subscription plus
XX% significant year. are increase the stream reflects our the active correlates and grew a was This related annualized end recurring with underlying to of which plus licenses contribution much value term-based the health each perpetual seeing effect contracts million of licenses at of revenue revenues, business. $XXX.X QX more and greater and is quarter we compared the subscription last subscription predictable of ARR in end maintenance a from at to
Turning statement. year. and the period were back XX% compared services million, to Maintenance to revenues increasing our income same $XX.X last
less mix less associated high revenue. expect stays revenues our license and at maintenance these therefore As levels, we subscription perpetual
that continue We to channel while licenses our offering partners work automation. greater professional provide service move to
a we have As levels rates on maintenance exceeded result, in XX% seen them growth the and levels. will not past. services same the show and expect the these to renewal once high license, Maintenance again stay at we line perpetual
geographically, business were representing World America $XX.X of revenue. total or total revenue. $X.X the North million of Looking $XX.X million EMEA, revenues XX% revenues X% Rest of revenue. were total were In revenues or XX% million at of
our with than QX employees. adds QX customers user with new XXX the added the approximately we In in quarter, companies and associated XXX the the X,XXX new with customers. line fewer ended with we group, year-over-year difference customer was smallest During strategy,
In customers and to QX, of our to XX% XXXX. larger responsible first of revenues commitments license year in we for new Varonis maintenance XX% as saw QX they initial make compared were
or with XX, time families, the more of compared had customers three families, same XX% XX% or September of our of up XX% product purchased from our two As XXXX. QX product purchased of customers in more last at XX% year.
approximately $XX of income to tax related compensation be forward, expense. that non-U.S. are excluded FX million $XXX,XXX the stated, which I'd payroll going out of differences non-GAAP related of point $XXX,XXX like dollar. revaluation the unless otherwise Turning to liabilities approximately assets exchange losses stock-based statement. Also excludes back QX discussing from foreign expense denominated results in and to I'll for in and
margin lower year, the with previous of half higher third for of of slightly mix subscription third Gross first to QX due revenue. than margin of gross our XXXX. XX.X% profit was compared $XX.X the gross the representing in million, was the years XX.X% a quarter in the Consistent to quarter
in $XX.X the totaled third Operating expenses million. quarter
of income operating $X operating was compared a of or an margin period an As quarter the same X.X% the margin negative result, million, to our last operating for $X.X X% of million, in year. operating or third loss
the future to about financial invest margin and but profitability. have expansion. very will continue show results, business our have we a on the short-term impact growth planning drive while committed to market to transition of feel good We to the and opportunity continues and remain The state been to we
financial the the will all through we transition, move our said position can margins become. faster we healthier show believe and stronger quicker we As we have the along, the
the income. quarter and of approximately third financial primarily $XXX,XXX of due to income we XXXX, both quarter to the similar had During interest
and does or the income financial income movement consider impact related impact any gains to currency foreign interest to and not as estimate exchange losses, guidance Our we don't other expense associated in foreign with rate. potential any or
for share the compared basic and outstanding $X.X quarter $XX.X third income per of $XX.X loss million $X.XX is was million or third XXXX for for QX, $X.X $X.XX per share, diluted Our net diluted of of million diluted of net basic outstanding shares on loss the diluted for a based QX, or XXXX, to XXXX. quarter This shares and and XXXX. million
We sheet. last marketable balance generating we year. XXXX, the first cash ended from the $XX.X used nine to securities from cash Through to million cash $XXX.X quarter equivalent, of Turning operations deposits. and operations, short-term $XX.X of cash of in compared the million with period months the and million in same
a quarter increase As on ended a with this flow. contract and short-term of quarter X% impact the are see in annual transition we reminder, to the continue employees, on therefore XXXX. value collecting cash a third X,XXX we from amounts We
I'll for for Q&A, open discuss guidance the our we of remainder Before XXXX.
and by the QX guidance a QX the increase in we meaningful XX%. we would've includes shown year will guidance XX% revenue quarter. mix, subscription Our offset to raise headwind from from approximately full mix guidance to increase the in the this be Without the updated subscription year QX significant last provided our full
of the million total revenues XXXX, fourth For $XX.X quarter we $XX.X of expect million. to
million non-GAAP $XX.X shares between $X.XX. assumes diluted loss and to tax to million the negative net share diluted This $X.X million and $XXX,XXX in expect $X.X operating to range We of per provision loss basic and basic a our non-GAAP negative to range outstanding. $X.XX $XXX,XXX and of
expect beginning now now mix from higher the QX million more our up mix, significantly year full the drastically our of from subscription revenues, of guidance the the approximately which at subscription $XX Given and will even XX%, be XX% year. of approximately we XX% assumes prior guidance
$XXX guidance updated range We in year revenues million. of full $XXX follows. Our to XXXX the as total expect now million is
and shares net loss be We operating the negative to tax $XX.X assumes diluted range expect a million non-GAAP in to of non-GAAP $XX.X full to our million diluted basic to in range outstanding. and $XX.X and basic year of negative $X.XX. per $X.XX the This share of provision million $X.X million million, $X loss the
While a think result, report of we things guidance we for will provide our couple full are XXXX about. QX to financial when here our
for complete mentioned, the with expect plus be year. the transition at subscription we to fiscal XXXX for levels minus previously First as XX% or substantially
the to business, we which Second, mix growth of were than XXXX, remind of we XXXX, when the balancing the want in for I will everyone be subscription And good the significantly first will at we invest transition. of that while the many philosophy first finally, beginning our as and to the about profitability in higher continue been half years. feel has half
customers, model we're that of summary, benefit and in our full the strengthening platform, the leverage particularly will we unleashing ARR, employees results, the we QX reflects our pleased growth our extremely is In fundamentals with able be our our of which new business. potential of and to XX% to believe stockholders. with our Subscription
take With happy that, to Operator? be questions. we'd
