Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $202 million, representing a 15% year-over-year growth and exceeding guidance [5][16] - Adjusted EBITDA was $49 million, with a margin of 24.2%, marking a significant increase from the previous year [5][20] - Free cash flow generated in the quarter was $37 million, with cash, cash equivalents, and investments totaling $569 million at the end of the quarter [21][22] Business Line Data and Key Metrics Changes - Subscription-based revenues grew by 18% year-over-year, accounting for 82% of total revenue, indicating a shift towards higher-margin revenue streams [16][17] - Services and other revenues increased by 5% year-over-year, driven by higher professional services revenues [17] - Total annualized recurring revenue (ARR) reached $888 million, up 12% year-over-year, with subscription ARR growing to $745 million, a 14% increase [18] Market Data and Key Metrics Changes - The backlog increased to approximately $2.5 billion, representing a 24% year-over-year growth, driven by expansion with existing customers and new activity [19] - The company secured seven Tier 1 and enterprise deals in Q3, indicating strong market demand and competitive positioning [5][6] Company Strategy and Development Direction - The company is focusing on AI integration into its platform, showcasing several AI capabilities during its Dev Days event [10][12] - A new leadership structure was announced to align talent with long-term strategy, emphasizing operational excellence and AI enablement [13][14] - The company aims to leverage its existing customer base and partnerships to drive innovation and growth in the financial services sector [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the company's ability to close the year strongly, with a solid pipeline heading into 2026 [12][26] - The company raised its full-year revenue guidance to a range of $789-$793 million, reflecting a year-over-year growth of 13%-14% [22][24] - Management noted that the demand for digital banking solutions remains strong, as financial institutions seek to enhance their offerings in a changing interest rate environment [85] Other Important Information - The company authorized a share repurchase program for up to $150 million, indicating confidence in its financial position [21][22] - The gross margin for Q3 was 57.9%, up from 56% in the prior year, with expectations for further expansion in Q4 [19][20] Q&A Session Summary Question: Management changes and their timing - Management explained that the changes were made to align technical resources and enhance operational efficiency, particularly in light of a strong bookings quarter [30][32] Question: AI development and market appetite - Management highlighted ongoing conversations with conservative buyers about AI solutions, indicating a growing interest and potential for future contributions [38][39] Question: Cross-selling opportunities and renewal cohorts - Management confirmed strong cross-selling opportunities exist, particularly among tier one customers, with a similar renewal cohort composition expected for 2026 [64][110] Question: Pricing environment and competitive positioning - Management stated that there have been no significant changes in pricing discipline, maintaining a premium pricing strategy based on the value provided [59] Question: Gross margin outlook for 2026 - Management indicated that the completion of the cloud migration project will be a key driver for achieving the 60% gross margin target in 2026 [89]