welcome, Thank to you, our Good afternoon, everyone, Mike. and call.
expenses million, be we X% to and margin basis sequentially, strategic increase In XXX year all items expected points and the ahead $XX X% was second Non-GAAP within quarter, down operating XX%, non-GAAP this on our towards where make outlined an prior sequentially. gross targets exceeded control. in our we over and of were plan March significant we the continued to time. well of progress We are at
non-GAAP a fifth range, As end we our quarter of generated the guidance high straight of the of expectations. EPS, which exceeding above $X.XX is result,
XXXX bringing positive business up of quarter, $XX adjusted flow to exceeds our of since half of $XX third points million year our was our quarter XX.X% percent full straight was million the represents in as flow cash improvement cash and sales, X,XXX our EBITDA basis an operating first a XXXX. Adjusted That generation, million. $X.X a for first EBITDA revenue. Operating or performance adjusted EBITDA of
reflect progress As improving our on last made year, we've I the efficiency. in substantial operational
Our the second significant from our a targets out EBITDA we believe quarter business strong quarters validates and profit and ahead. take operating demonstrates organic gross quarter initiatives built now years the the and margins leverage in and into growth step-up represent as performance, hold our in we this first set March our
our expect targets, margin XXX investor we to of X% operations laid a flat For revenue reference, long-term achieved improvement of no out additional to we at ahead the already continue event upside with in of number points have gross an In these delivering EBITDA we and in expenses, in initiatives. QX, assuming see operating March, optimize years our through of margin XX%, basis we long-term as growth. to targets
we saw and the remains top the CapEx has the implications a million delivered demand it outlook serve. their mix Like discretionary the both others, Within served a various in quarter. $XX.X a spending revenue From focus markets second our we potential many and for of we customers perspective, our across levels evaluate as markets, in line geographies macroeconomic business.
continue largely to deals planned. forward results, QX our in move as seen As
macro a continues ability to offerings, such to we said, time. in and CapEx software market, the the subsectors, be serve our there believe and we than remains demand discretionary faster soft, normally see while caution environment. over what to degree in construction our as spend continue healthy However, we of in grow see markets service strong continue to and spending that With we would in beyond certain budget a
the in region. remained again and while saw the in Americas demand overall Asia, stable, a in EMEA, decline we Geographically,
results discussed we it was first in Asia-Pac deals for a quarter, in small the the overall were that stable May, created while strength. As number of
China, market had macroeconomic anticipated environment demand Given in a challenges than including first end we metrology, softer XD in proved slower at the of the ongoing quarter. the
gross our in progress. continue our of chain ahead expectations cost variable Operationally, as came productivity, supply localization broker fees efforts focus mitigation of margin to on and
new In identify addition, further our we continue to opportunities operations. optimize to -- identify
the that amount manufacturing as brought on rate. the we improved have last shipping in X facilities, the substantial methods partners shipments us logistics efficiency save will an over new money expect to our our of a global example, we of run spend Using enhanced months, and from leverage our
Beyond we took that from actions the second of optimization pricing quarter, in the also at contribution we the incremental spend start year. the saw
Taken together, gross and to revenue. meaningfully operating pricing decrease improvement contributed the our our initiatives despite sequential margin in nominal
help on Related which and expenses, delivering initiatives to near operating cost are drive midterm objectives. we focused containment, our while
in with road are key lowest shift and make ways to resources we spend map, ensure on we R&D, while and protecting and competencies regions which Within example, products, productivity. remain directly addressable in market product an to our we cost As resource aligned we our refreshing backfill our to to allocation evaluate optimize our enhancing developing investments focused focused continue talent. opportunities dynamic including our the core expansion
operating in and improvements our resulted As earlier, of straight our improved flow. on I positive emphasis quarter profit working cash mentioned capital third the
the and in to continues financial As our foundation to model for have underlying business of flow. the earnings a confidence generate ability improve, business consistently cash growing we our
Based an terms. debt confidence, took to this we in of convertible attractive the action million second quarter on repurchase at $X
to Going redeploy million our repurchase highest for share forward, flow, $XX to generate the evaluate cash existing return our closely repurchase program either our improving through will debt or shareholders. opportunities to continue we
productivity and the strategic ahead, Looking have focused through place. targets initiatives in we on improving fully remain to realize we new existing already both
and new underway, market the our beyond actions itself. products diversification growth we're regional on we and focus improve around profile strategic the these a technologies customers' and greater actions to With well of placing experience, the take can growth investments
Related believe to opportunities map, road markets we product leverage our portfolio, currently and in FARO's March, as technology addition the are discussed refreshing in to there we to we innovation serve. beyond existing product our firmly
look next introducing to we the out begin As intention our products is these the few over market. to quarters,
to these target As look so, you solutions they including impactful new they represent. do in we opportunities discussing forward and markets with we greater detail, the
merges double for Within XG our to again, In a has the Scanner us market, full, year-over-year. our workflow Mobile of in we the scans scanning, delivered of in automatically mobile digits solutions, with processed new continues providing that which allowed existing differentiated great share the wallet to XD and scanning key without X strategic with more portfolio, fully This through capture customers our most manipulation customers. Sphere insights software. in Orbis some increasing our cloud see is require mobile QX, productivity for receptivity to workflow our revenue workflow desktop
commercial into case, focused to through integrating on were estate refreshed fleet project one expedite workflows, their customer able an recently existing deliveries. Orbis In their platform and to hardware. Sphere to FARO and real quickly ability the of significantly measurement productivity they scale XG upgrading the By improved
greater for offerings Orbis' strategy, combining with see success, In solution create value customers. further power hardware with our platform, our to addition our the Sphere of to we XG software traction continue to
FARO distributor enhancement capture the mobile of growth upgraded This a terrestrial to scanners, and quarter, solutions. and a leading HVAC variety the reality products Ferguson, of emphasizing their of markets,
contractors. documentation, and Sphere local projects to photo more scanners and now against using remotely bids be competitive project of By import the scope of nationwide, uses electrical XXX-degree model monitor FARO and Ferguson FARO XG, mechanical, platform plumbing progress
legacy Specific to XG, utilizing our while customers Customers biweekly to Sphere we increasingly our delivering releases, to platform. reviewing SaaS promising make leading and productivity recognize quality the upgrading progress continue on collaboration and value feature platform. and
progress, the XXX QX. migrated the roughly platform, expectation reaching last month context of terabytes pace by terabytes the provide end help XX customer have alone, data the in of with over to our To for of of the we
Finally, a made last number investments over the in we've year. our customer experience of
Our points XX NPS scores are year-over-year. up
loyalty customers is markets we and through responding us. our This commitment are loyalty the to reinforces is XX% We FARO to a with of latest brand overall score, satisfaction. brand metrics buying their and XX% speak renowned view that our serve. a completed an the which also and reflected asset survey, operating business, These from with recently customer-focused likely loyalty continue our further significant
are XX months. very last our over progress In excited summary, about the we to the out set plan we that
our our we position we solution, well well only are that for effectively plan, to leveraging believe We executing with to not innovation but that pressing our innovation has and FARO By outgrow as own both customers' to reputation are deliver our target. to most strong as schedule. of we exceeding serve that expectations brand those currently look high-performance ourselves challenges. potential We addresses the name markets great ahead
to in revenue initiatives excellence operational expect new and leverage realize meaningful margins existing as operating profitability, be expand both position we to and with Combined to gross a grows.
in in and the ahead We are drive to are enthusiastic years our about confident its shareholder substantial value. capacity strategy
that, an turn call and financial quarter third outlook. over our to overview Matt I'll provide With results in-depth to the now second quarter of
