J. Kalsu
Thanks, Sudhakar.
solid progress. strategy continues make subscription-first Our to
know, historically, our we on-premises to you maintenance licenses As and sold customers.
self-hosted Hybrid Observability subscription existing our of maintenance to our base subscription our involves first The converting via phase product. transformation Cloud
by in database are driven a subscription and observability our sales and our products. solution seeing to our We now new service shift bigger desk offerings,
the began Observability, with SolarWinds second The launch solution. phase our of SaaS
markets, So or portfolio discipline back quarter. broadly momentum more continue we we that value the and a is be can lifetime we fourth on rule transformation, participating XX performance Cloud a that a of lays customers.
We've sell and great for position of we believe with XX recurring whether believe believe we in our focus worth are basis. in progress with Hybrid noting even this our company. expand operating puts to a predictable the us the Observability, foundation opportunity company growing We third being solutions SolarWinds It sustained this the with through a quarter the of to of rule position our Observability revenue diversified in investment seen and on and
of outlook finished total to range the numbers. and to X% million with compared We third the provided of of the to a million. million revenue year we above total Turning increase $XXX the $XXX quarter prior $XXX revenue
meaningful transformation. notice our a shift our revenue reflects that mix, which You'll subscription in
as We X% of total of the quarter have ended continue $XXX up subscription million, with percentage larger ARR new products.
We sales to year-over-year. our third a
ARR the Cloud base the an revenue our of solution and our subscription continued conversion September products.
Digging $XXX Hybrid was million, increase desk as database execution our into of of strategy, of the subscription-first service in growth to subscription XX% is a details. Observability growth Our This of due year-over-year. the primarily XX, maintenance to and portion
XX% quarter $XX was up million, third Our year-over-year. revenue subscription
ongoing reflects subscription-first subscription our growth success of Our revenue efforts. the
our manage observability customers to need continue and as We X:X convert hybrid products the value ratio to the of a IT their they at environments. higher see maintenance than
the percentage our Subscription are subscription multiyear third the Maintenance by year. the year. revenue we increase a increase positively renewal of attributed to being in implemented sold In the price quarter. third X% rates also start in revenue higher-than-normal our impacted and The an of high increase arrangements million addition, was prior the from new deals the as quarter, is arrangements. $XXX higher at of was
impacted been of products, our selling in and has converting a revenue As subscription by previously our as strategy. new subscription-first maintenance discussed, percentage by to a line subscriptions our larger with maintenance of customers portion sales
of was of rate for a to testifies quarter. XX-month exclude fourth the is those renewal customers our XXXX.
We XX-month our the maintenance our rate we efforts. maintenance customer XX% base, retention trailing XX% the renewal Our basis this and The value highest subscription customer convert on focus the from trailing loyalty on rate that the our since as calculation. and and was we customers expansion believe to third quarter rate of Note solutions arrangements,
the we revenue. XX% total renewal in maintenance rates, our growth and subscription As of recurring a of strong revenue as have revenue now result
profitability. third approximately by transformation, license to more negatively XX% new to is of this decline We XX sales performance of a XXXX was of than third more representing decline with finished with we last of sales of delivered year-over-year us quarter quarter design sequential $XXX,XXX customers license year.
I'm of the of quarter second XXXX. increased increase continue efforts third have improvement well which expect license the that subscription to quarter the third quarter, offset report is XXX Remember on be the non-GAAP impacted.
This in increased For pleased we the subscription who as quarter $XX revenue. strong another the quarter revenue XXXX than compared that the perpetual and in continue to spent over another million, as our the will with a over months,
the from approximately year-over-year, XX% and quarter EBITDA in related the growing onetime of the we end quarter of for margin incident, of cyber above net insurance million in outlook million of high an Excluded $X.X XX% to quarter. EBITDA the Third adjusted gave $XX adjusted EBITDA are expenses third adjusted was million, coming December's reimbursements. representing $X.X
SEC. cyber with We the fluctuate continue costs an to related the litigation future to expect onetime increase incident-related to in quarters
on focused broader efficiencies operational capital management in we we May, our our our business in focusing driving As growth earnings discussed and while subscription transition. our and on are allocation, call disciplined expense across
expense part the of XXXX, of outlook on optimized Given focus our structure our the uncertain ongoing first in operating we for year. half macro margins improving as the
XXXX, costs related $XX charges, restructuring associated these During resulted and million office in reductions. of of primarily locations million for impairments lease with to optimizations $XX certain headcount
to cost will and we manner. in Looking continue to ahead, our hire and monitor closely the we selectively manage continue to disciplined plan a environment
the balance ratio, progress which our our made compares approximately trailing significant adjusted leverage last of sheet. We've to XXth X.Xx year. end to Turning at reducing September EBITDA. our net X.Xx at was XX-month This
have ability to non-GAAP in to our convert position flow. performance improved significantly and We XXXX leverage our improved through profitability cash
to continue execute plans As Xx we to our leverage. communicated below before, get net will
third balance to our investments billion.
I over turning quarter now will and quarter, discuss the fourth to million the full Our cash outlook the what $X of was thoughts. through approximately I final before will and $XXX our it and short-term end year. that for walk start debt Sudhakar guidance for our means bringing at with net cash equivalents you then
Given believe we to our and to continue that ongoing diversity product and challenging as industries markets across performance we by driven customer attractive line weather as our customer rates. date, focus execution conditions. believe sizes of and grow renewal and in retention the XXXX, us expanded well seen allow economic to on should our strong We able growth top be our base our portfolio in we improvements the to have will
We what carefully into takes and conditions our account profitability profile focused model outlook our and our impact strategy continuing are improve in committed control transition. of to subscription-first the macroeconomic remain XXXX. can business on Our we and to
year-over-year for fourth X% $XXX.X quarter, million a diluted the of fully approximately million the fourth representing midpoint. shares are the For to to at to $XX.X to be the XXX.X projected total growth share, expected at expect million fully EBITDA quarter in an growth midpoint. to $XXX.X $XX.X $X.XX be million, we assuming is the to million, share range representing per Non-GAAP revenue year-over-year be per Adjusted X% $X.XX estimated diluted earnings outstanding.
tax to assumes quarter. non-GAAP rate taxes for expect our fourth Finally, the in XX%, quarter $X approximately the outlook fourth cash during a of pay and million we
year-over-year million in the to million, $XXX and range expect For the our of total initial the previously year, the guidance million growth full we $XXX range revenue million at raising at million midpoint. compares the of year. to issued be $XXX are the again guidance to start the of to This representing to and $XXX X% $XXX $XXX million of
are million the between adjusted a EBITDA XX% to provided the to midpoint. representing for $XXX year our guidance the to $XXX million previously full guidance raising of at $XXX is million, This growth We and full $XXX be year million. again compared year-over-year
line focused these our We continue committed We consistent on profitability. priorities go-to-market investments make starting diluted pay dividends. per rate share share, to assumes $X.XX earnings X.XX million assuming diluted be XXX.X finally, an to shares $X.XX is our projected full and outstanding.
And estimated Non-GAAP exchange euro fully X. remain to and top investments We have made very portfolio and meaningful with in dollar and strategies. year to efficiency product improving as of growth fourth per believe our quarter a are guidance investments to selective to fully remain we to
return I'll the his Sudhakar to remarks. call for that, With closing
