to G, our another start our in traction healthy to priorities via the a Thanks volatile really good quarter webcast. markets joining as products XXXX. for for We're of execute solid results year of and we financial the we QX. got seeing fiscal markets, and all you on with call for thanks on the off Despite
today, expectations with the trends for the full on key quarter, first results seeing drivers close call year the Later, XXXX. and our I'll we're providing I'll For our and background forward-looking cover QX business. financial in commentary and some while from
numbers. agent which expansion million, includes related taxes stock-based usage due As X% impact of a intangibles natural acquired $XXX.X for negative QX reminder focus adjustments. in grew activity most this the or around or more with financial payroll our transactions, other the I'll path as on the a largest to non-GAAP employee increasing XX% is of stock and exclude healthy of and products. additions and little over to of saw our fee the for income of Revenue non-GAAP impact These discussion Starting amortization a FX. in be quarter, We compensation expenses, my driver results, continues numbers simplest the statement. to
product in of desk omni-channel, continues adoption incremental multiple multi-product customers adoption line with our As of the as support especially messaging. G mentioned Freshdesk using combination products, the earlier, make improvements to are our and where
Our slightly provider. to quarter right margin driver ITSM the pass-through healthy finding from QX, gross margin non-GAAP a product mid-market in from be solutions. Freshservice a big XX.X%. maintained from our higher of that product was continues customers size we as as contribution outside a includes lower value tremendous are a In This growth an down we prior costs had
a compared to matter that expenses operating our $XX.X $X expenses this expenses were quarter, settled to as of million as to non-GAAP we increased in costs invest included improvement Most G&A improvement and an million came related non-GAAP QX, QX. QX. continue prior decreased Our was to R&D litigation $X.X $X.X Non-GAAP as quarter-over-quarter technology the QX of for million efforts. higher compared in by product million from this
included that invested prior, refresh marketing flat expenses in were to also our sales expenses not The conference non-GAAP costs the QX QX. our included were from relatively compared We go-to-market efforts. as in and
performance our we improvements margin million led operating to the a grow breakeven loss out business as clearly $X.X for non-GAAP resulting revenue the in a believe this a ability continue non-GAAP business. drive Our operating to to of basis. with and on We efficiency highlights nearly combined scale quarter, expense
metrics. operating our to Turning
increased from was X% reflects adoption expansion activity the business. incremental net the churn basis, our seeing quarter. to but improvements only a the in XXX%. robust number in constant This also overall customers, prior we're XXX% On and Our from retention not dollar multi-product the currency this figure rate
this we land we XXX%-plus naturally before, business foreseeable metric the the for for future. low-teens to As range said in expect to
this with pleased we're performance. So,
contributing in now customers XX% of and metric of our $X,XXX ending in ARR. grew operating ARR represents QX, customers XX% than more at second XX,XXX Our
customers ending represents XX,XXX X,XXX at and customer XX% this ARR, account contributing customers ARR. For grew than XX% our of larger more
as products, to customers increase account account and as net of over customer XXXX. larger on ads the contribute QX XXXX the growth XX,XXX reflecting engage in per since quarters, total to we as customers Similar continues Our quarter, over revenue added expanding to grew our in we average customers are deals. XX% prior the to highest revenue our
Now billings the and balance turning sheet items. to
calculated year-over-year. billings XX% $XXX.X reflecting was QX Our million, growth
As quarter-to-quarter you know, of the from a billings based growth on fluctuate can rate factors. number
items of; the be approximately From of in quarter. renewals growth movements, perspective, and early for impacts QX calculated new of a of reserve large growth mix X.X%. Normalizing So, X%, would billing duration negative was negative specific approximate billings number lower factors, activity and X% impacted business these deals billings in include FX XX%. a positive by closed
we and mid-market a While especially of build for competitive ramp average continue the customers size as also We're the our out Europe. healthy prior the new hiring side, customer very a added environment to go-to-market larger compared productivity field in on was seeing in number operations quarter customers. up smaller and QX, to
realization sales our impacted region. has this that in So,
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our QX in requirements, as activity we tax noted net settle balance to was $XX down cash the equivalents in ended We equity Moving which sheet. in amounts continue and QX. call. prior net approximately to to plan prior shares flows vested cash with captured we our and of used amount Nearly net settle million $XXX expect finances. $X.X the use settle million to our of and quarter approximately approximately on all We billion, cash from to meeting
also further cash for reminder, So, efficiency impact a balance, model as underscores QX, as cash the we flow. flow business reduce impact and and the but expectations which had our not operating million $X.X growth. savings even which Free capitalized and [ph], our of invest our the to flow, the in free was as In this will of software payments CapEx realized million, cash year. shift negative ahead was does later $X.X we in of includes some quarter cash
negative $XX year negative full expect by $X million we estimated the with QX for result, be million cash QX million, flow a to to As free to improve each. $XX and
expect positive to positive slightly we thereafter. be and QX, For
times ability manage economic volatile it through pleased and the environment, Given with these do to prudently. I'm our
a In method using year. XXXX. for terms March we few of note full XXX fully shares as we approximately diluted basis the had million our XX, of expectations items on QX to share as outstanding count, A to treasury the move and
First, on revenue.
revenue which for are merit result related QX our impact our of financial X% rates. expenses increased is and costs, rates strength are based And we improvements to annual to normal currency Thus called Using improvements out to reminder expect not the QX, in year in to full slight Our of of have QX forward holds do we've the other not negative but growth impacts couple which the impact expecting third, this of our the created call, optimal and included with from as impact guidance. in areas far nearing continue prior end related revenue U.S. we're a include dollar, quarters, of reserves, QX, we're additional to as on Also FX consistent as our guidance and of seeing levels. results, in made the past processes. a negative XXXX previously. to as X.X% rates leading X.X% quarter-over-quarter. benefits trend expenses operations collections going revenue, to would we if to approximately this our have in increasing cycle we've QX, currency of estimates and These our negative our the end financial planning FX to a of
have shifted year. timing projects addition, the we and to QX In impacts certain in as investments and QX later
our factored going estimates these into We have forward. impacts
non-GAAP the approximately $XX.X we $XX.X million shares of share $X.XX, XXX.X be of be in for range per of million; second to operations in to range non-GAAP in be range loss to XXXX, million $XXX average to the of $X.XX from So, quarter $XXX loss million. expect million; of and weighted the revenue the net to assuming outstanding to
$XX.X and assuming the For operations outstanding range revenue the $XXX.X per we be non-GAAP be net approximately to $XXX.X full average the be in million of loss to of XXX.X to year million in weighted the to loss range share in to shares to of million; million; XXXX, non-GAAP expect $X.XX, from range of $X.XX $XX.X million.
we're year. start us that the let And take saying off with by close Operator? good your me that, Let to questions. a to
