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Total margins; of led above also a I to million, our but primarily revenue From flow see just greater a end Thanks, by and gross with and with one, the start we areas expanding XXXX, financial from was go in to margin, great cash and we'll expectations. outlook. two, increasing in and talk we're subscription each very entered updated ARR our fiscal high of this primarily business. momentum our services are due I'll of revenue in business; ARR
basis. which quarter, $XXX XX% ago. for we gross profit was profitability to year-over-year XX% Gross non-GAAP growth. a Turning XX% the to on margin year Overall a discuss representing was million, will compared first
increased This the compared year cloud was expectations from Subscription and XX% of due gross margin and our revenue, efficiency provider. infrastructure ahead to services of timing credits cloud infrastructure a support to our cloud XX% some ago. higher-than-expected was
confidence for margin positive we This negative profitability targets quarters earnings was this work We turnaround gives ago. in are year us of is a our that a thrilled have raise with to X% result prior year. gross profitability Services to compared many XX% the it discussed as result calls.
and services. margins And XX target basis, gross percentage subscription Services sets our percentage total margins this support start year us demonstrate XX On gross profit million results to exciting expanded points. year-over-year in the These up to a percentage year points. margin expanded expanded XX progress margin expansion. hit this for of gross to points gross well $XX and and annual
hard the to teams our do do to to targets, services work us the number by work want long-term of product a team team, this unlock cloud all operations have recognize FinOps the potential. to still we organization including Guidewire, to margin and the While development team, teams, the support get help I our at
the of gross with profit This when of midpoint. million momentum million positive expenses. at compared line $XX this strong this of margins operating negative an to is gross million from $XX came About on a led All came the profit million. operating from $XX.X beat $X.X outlook our result and prior
in million But year. million than expectations. equivalents We we expense cash million, and million to hiring QX the generally from the in quarter $X travel $XX saw internal ended the expectations. was Overall ended we was with expenses bit compensation and our timing later a $XX On $X investments. the which expenses year, certain due is stock-based is X% our million of $XX cash negative with now to slower at in operating of cash, last Operating than the better which side, lower and expected. approximately expected quarter up flow million, $XXX line
other QX related flow are reminder, sales employee expenses lower always year. the as to a and fiscal the out commission As QX a And result, annual QX. quarters cash is in than in bonuses paid
XXXX. ARR and line, and the to we measure targets. we for our Now go are way our on pipeline Starting feel our top confident in is the ARR. still let our outlook year sales are maintaining updated best to annual me with outlook hit momentum, overall through fiscal track for
our maintaining revenue. total We for are outlook also
be a in $XXX approximately and true-ups, now We we $XXX revenue license subscription revenue tempered services bit million prior to higher to revenue expectations term expectations million subscription approximately to and revenue. DWP and our higher support million. than We have in for due expect $XXX expect
away faster previously from Our services revenue shifting is bit a forecasted. lower-margin model subcontracted than we
Additionally, more implementation of and engagements, the which our are more is to great. partners continuing lead
us FY puts expect is the for schedule when year, basis, with our XX% clear to the of focused to margins an we XX% on subscription to and to be of on fiscal the product that XXXX. and work compared profitability, support This teams for and gross percentage investments we on now respect non-GAAP discuss will to increase Turning the XX%. ahead hitting made It points target 'XX having efficiency which desired scalability of a impact gross margins X hard have of product margins. we and
to we in million conjunction excellent with expect gross are as We this in measure by: XX%, continue track two, quarter, margins deliver we of and ability last hit year I to our mentioned services partners' success goals. to $XX outcomes; services deliver one, will our ability customer and gross profit. our on professional services approximately these to
'XX fiscal the and As midpoint XX% of to our operating With we for full year. year. million gross approximately be so of to respect overall a operating expect now tracking between outlook FY at is margin This we the income million we income, $XX our the are $XX raising are ahead schedule. to for already target, result,
this as We the by we potential momentum towards are profitability the thrilled of unlocking work business.
stock-based $XXX X% compensation to million, expect approximately be year-over-year growth. representing We
$XXX are fiscal cash operations our the year. and We expectation from $XXX increasing between to for million flow million
to our QX. for outlook Turning
expect million finish between million. to ARR $XXX We and $XXX
Our outlook $XXX for million $XXX total between is and revenue million.
revenue support million. and services approximately $XXX approximately of subscription expect of revenue $XX We million and
XX%. and services and to margins total of breakeven XX%, subscription expect around to and support be margins between approximately gross be XX% We margins
We early QX, onetime an million a services reorg in charge. approximately $X.X small which did conduct carried
mentioned income respect Operator, profitability operating you for Day, outlook we $XX our for flection questions. ability now an open expansion. as million. $XX margin call Analyst point million to to at it at year. was a exciting Our with strong are can demonstrate In and is between and the to we start summary, the And
