deliver for taking time serving in provider day. Well, today. that we value certainly that earnings with participate thank the but pleased are We solutions market your our progress that call Clark, our right. and a to like customers do, and you, work every the you lot and to making of enterprise have to I’d to we’re All of managed we’re and the our thank partners each service
deliver increased by our driving from and while across centers enable exabyte recovery to solutions storage innovator data environments, are and world. backup security data trusted Protecting for customers hybrid solutions and data over data under operations managed the long-term an footprints providers most world’s We these cloud on-premise then X,XXX to a management. end-user well for cloud down with accomplish data modernize And recovery, their demanding protection data We service XX%. the quick public provide enterprises attacks. ransomware including of up data and our and archival
to X beginning FalconStor. of back reinvent continue year, work key our at implemented the For as initiatives we strategic we XXXX, the
growth drive consistent that line our extensible believe by will protection retention on decade. product innovations data First, the growth we recovery next flexible over and industry-leading, new, by our expanding data and long-term creating and generating
then driven on sharpening important our and R&D those growth customers. that commercial to data to and to or replication beginning focus, M&A. most data then to which via finally, on strategic And on third, continuing in profitability. our ensure related enterprise continuity largest are cases focused delivering Then Second, generate products use consistent our and business we’re operating
we are how X So We’re into quarters XXXX. doing?
license subscription First, revenue, we’ve an model. recurring that moving highly let’s a revenue subscription we’re been as GAAP perpetual about focused deals area talk perpetual -- on into older-fashioned
delivered the XXXX, For quarter, increased And our of the we first GAAP revenue subscription-based for a subscription year-over-year XX% -- XX%. X months our actually then increase. has
move we’re to So we’re as licenses in subscription. that we perpetual area doing where -- our progress great making from
to consistent Second we’re driving yet, can quarterly continues there then, a as key GAAP growth. consistency not our remain And see, us. revenue total you total for not We’re right? priority revenue
and service are few In and fact, total also it’s certainly, to about are providers. year-over-year subscription, into And we’re we’ll generating actually we new But a down of converted, converting revenue. on of subscription. XX% revenue with begin talk we will there minutes be revenue matter we here into licenses in our it’s perpetual perpetual converting driving doing able more focused a just then in we our our QX, And total as here license recurring as more not growth. away what was from revenue, moving -- And total get that. again remain GAAP perpetual managed
our we’re operating Third continuing to expenses. then, can manage you tightly see that
as very a to we us. we in reduction gain continuing growth. book both operating to nonetheless, the QX, settlement But behind expenses invest actually was is in and tightly because that to maximize very manage we’re were our get this, our GAAP for legacy litigation our of pleased we that operating expenses aided $XXX,XXX by were business -- able Now a
increasing is Also, the it’s despite then has line we’re operating still fact that dramatically inconsistent. net total because bottom lumpy. and remained revenue expenses, tightly subscription revenue, mainly So of income managing our
So in some progress in revenue initiatives, we’ve but making to do, especially we obviously, really increased work are got year-over-year. key of good our driving recurring
As we of you know, of reinventions back began in XXXX. most our late FalconStor
So the for view trending it’s being, think longer as a we least period. we’re time keep broader go at over how forward, important, I of the to
for releases, a is few. to few earnings next And and that continue go so and the let’s these numbers. last this review for of the we’ll shown we table a do But have that several just
for which treat just customer hardware pass-through, no longer net In I our revenue XXXX, we’re retention does customer treat So Year-to-date, exclude XX%. revenue say. it as a we we XXXX, was XX%. because at net retention, hardware, should
Our XX%. year-to-date, in margin XXXX XX%. And it’s far, gross so year, was then this
cash Our Free XX%. adjusted XXXX EBITDA in X%. flow. Year-to-date, was
We’re good making progress.
progress. We’re still did ‘XX. We but in XXXX. free generate not, million every $X.X making a we’re good We’ve yet, earned year, single delivering cash positive in cash flow
So of is EBITDA to progress percentage which far it plus percent, was in that simply have a but XXXX. making Rule XX, then relates we year-over-year this annual earned $XXX,XXX, as annual And year, negative we’re growth XX there. revenue
this points some finally, this And made out decisions early But of XX. to positive And has so it’s pull us. an anymore then some core be significantly. far, not to markets of XX increase Rule XX. year, we That’s metric out to we stabilized a on, that of of considered
was percent sales markets As our an XXXX, noncore In China. of those total from XX%. example,
down we So speaking XXXX, markets markets, billion billion instead. to far, I market predicted in to as predicted we XXXX. billion, XX% it’s X% core in $XXX billion And $XXX FalconStor. focus excited grow growing year predicted to The there to as of we market. as IT X%. that a these year, earlier grow a our hair in on these billion year-to-date, to a are data of are markets services I focused to mentioned that that, rate at XXXX. just look at in we continue at an expect rate go $XXX a continue XXXX, over was are about will a stands finally, that XXXX, X then In These $XXX markets market really This MSP the to service. protection a to in market, $XX hybrid at of And be to through managed cloud $XX billion it’s grow XXXX. or XX% rate slowly
have and And extremely focused these us so that these play we within be for are markets. to fantastic markets in, well technologies
patents at MSPs the applications. able X we, protected In patent is then been today, organizations really technology. And last XXX,XXX we’ve FalconStor, exabyte with] management FalconStor or quarters, XX [come over up commercial using technology an over that So to under have of that data important have some in by items.
me of through those. Let go kind
of very to multi-tenant a of cloud in managed protection first providers, hundreds efficient into all, providers. So route different launched data then us with StorSafe service the cases, with to of And this new MSP is open of enabled enterprises many many this we integration market And a serve, very version services. or important. who with partners,
we’ve very the pricing and Second, way. with response for QX, a model. those OpEx by launched per just aligns MSP per service model month managed providers’ this business a service that. customer seen already launched we to managed or providers, we the monthly launched per well good that And tenant then disruptive new and model. new We’ve And have in --
partners that the pricing toward new of end fact, QX, signed X under new model. MSP In
very for that’s efficient found for think MSPs. encouraging market of we So us, good we’ve a in the go-to-market that form and really -- with growth partnering
announcement here not data partnered the our hybrid But with Vantara so with Third go the StorGuard of deliver then, Hitachi partnered on also replication HCP cloud on referenced we’re with are Hitachi’s midrange and I’ll we process -- and StorSafe storage new and I And announce slide, to Hitachi although also protection Storage. saw an it data technology a this powered call. today by devices. we their on architecture in Object ahead pairing
And so be that QX early here launching QX. later in or in will
doing data about AWS storage integration we’ve excited and fourth, of optimized then tiers. services, particularly storage the their that And Hitachi So Vantara. we’re with cloud various our some with archival things
share protection government gained multi-petabyte to with end-of-life from centers large replacements then data several ProtecTIER And across continue deployments of the we’ve expansions large to of demonstrate installations. IBM accelerating then, solutions and enterprises Next finally, multiple ability scale we data our by market the solution. of
at there’s so been of and with new are And here setting partners well a FalconStor lot our growth and on in some scenes us very behind for work we the going believe XXXX. up that markets
Okay.
we be and Next, as to growth, we’ll X key focused we XXXX focus forward and forward on we areas. look look in
revenue MSPs. monthly the to including talked that our new continuing revenue licenses, our with increase we subscription-based recurring First, just pricing model with recurring about MSP
cases. to protection solutions continue we’ll with in Second, data hybrid use and market routes aligned to data efficient invest
but very generating is area to us And while our good then targeted great, structure in made score that continue And we we’ve finally, least an quarterly to growth, to XX. we’ll also just cash and look performance. to subscription we’ll of M&A XXXX. allow remaining Third, R capital continue while focus growth, you will total profile. revenue on on of opportunities operating liquidity revenue know, then, some positive strong continue strides flow seek throughout focused at maintaining improve consistent to as and which reach growth, not will Fourth most profitability which doing
of to pause to provide turn Brad that, Brad? over more and a overview year-to-date I’m going our QX to and with So going results. financial I’m detailed to it
