Core Insights - The company reported solid performance in Q3, with revenue and operating income exceeding guidance for the 11th consecutive quarter [3][4] - Total revenue reached $212 million, marking a 9% year-over-year increase, with subscription revenue also up 9% at $158 million [2][6] - The company is shifting towards broader usage-based pricing models and has raised its FY26 revenue guidance slightly [5][17] Customer Metrics - Total customer count increased by 15 sequentially, the largest quarterly increase in over three and a half years [1] - Million-dollar-plus subscription customers rose to a record 140, with several significant upsell deals signed during the quarter [1] Financial Performance - Annual Recurring Revenue (ARR) increased by more than $11 million quarter over quarter, reflecting a 7% year-over-year growth [2] - Non-GAAP operating income reached $62 million, up 36% year over year, with a record non-GAAP operating margin of 29% [7] - Free cash flow hit a record $67 million, with $39 million allocated for share repurchases [6][8] AI and Strategic Initiatives - AI is positioned as a significant tailwind, with the company signing over 20 AI partners and estimating that approximately 10% of activations are AI or AI-enabled [5][11] - The company aims to achieve "Rule of 40" performance by fiscal 2028, targeting revenue growth of 10% to 15% and a non-GAAP operating margin of 25% to 30% [4][21] Outlook and Guidance - For fiscal 2026, the company raised revenue guidance to between $810 million and $814 million, reflecting a 9% growth expectation [17] - Non-GAAP operating income guidance remains around $180 million, with an expected operating margin expansion to 22% [18] - The company anticipates Q4 revenue between $203 million and $207 million, with non-GAAP operating income of approximately $38 million [19]