Financial Data and Key Metrics Changes - The company reported a 23% year-over-year growth in total Annual Recurring Revenue (ARR), reaching a new record with net new ARR of $54 million in Q3 [24][25] - Revenue for Q3 grew 23% year-over-year to $259 million, with international markets growing 34% and representing 40% of total revenue [24][25] - The gross margin maintained an industry-leading level of 79%, with an operating margin of 7%, reflecting a significant improvement of nearly 1,200 basis points year-over-year [25][26] - The net income margin increased to 10% in Q3, up from break-even in the prior year quarter, marking a significant milestone for the company [26] Business Line Data and Key Metrics Changes - Non-endpoint solutions accounted for approximately half of quarterly bookings, indicating strong growth and diversification of the platform [8][10] - Purple AI achieved a record attach rate of over 40% of licenses sold in Q3, driven by strong adoption from both new and existing customers [8][9] - Data solutions saw triple-digit year-over-year bookings growth, reflecting increasing demand for the AI SIEM solution [9][10] Market Data and Key Metrics Changes - The company is expanding its market share in cybersecurity, particularly in AI-driven solutions, as organizations increasingly adopt digital transformations [6][10] - The federal sector showed strong engagement, with a major U.S. federal agency broadening its deployment across the Singularity Platform [12][55] Company Strategy and Development Direction - The company is focused on sustainable profitability and has achieved sustained quarterly operating profitability, marking a significant milestone [25][26] - The acquisition of Observo AI is expected to enhance the company's data solutions and competitive position, allowing for a more integrated and efficient data pipeline [15][28] - The company aims to lead in both AI for security and security for AI, helping organizations innovate securely [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute against its Q4 guidance, despite a dynamic macro environment [29][54] - The company anticipates continued strong demand for its Singularity Platform, supported by a healthy pipeline and growing contributions from emerging products [29][30] - Management emphasized the importance of maintaining a strong financial profile while pursuing long-term growth opportunities [31] Other Important Information - The company announced a leadership transition, with Barbara Larson stepping down as CFO, and Barry Paget serving as interim CFO [22][23] - The company reaffirmed its commitment to delivering positive free cash flow for the full year, expecting it to be a few points higher than operating margin [30] Q&A Session Summary Question: What products outside of Endpoint are becoming material from a new business perspective? - Management highlighted data solutions and Purple AI as key contributors to growth, with Flex enabling broader consumption of the platform [35] Question: Can you comment on the guidance for Q4 and the factors influencing it? - Management noted that Q4 revenue outlook reflects steady momentum, but deal timing and linearity can influence quarterly revenue [38] Question: What are the drivers of the expected sequential gross margin compression? - Management explained that the Q4 guide includes strategic investments in cloud infrastructure and capacity expansion, reflecting growing global scale [40] Question: How is the company positioned in terms of M&A and platform functionality? - Management stated that the platform is competitive and complete, with no immediate plans for further acquisitions, focusing instead on in-house innovation [41][42] Question: What actions are being taken to accelerate net new ARR performance? - Management indicated that the Flex model is driving efficiency and larger deals, while also integrating acquired assets to enhance platform capabilities [52] Question: How did deal timing and macro sales cycles play out in Q3? - Management acknowledged that the macro environment is unpredictable, but expressed confidence in executing against Q4 guidance [54][55]

Q3 FY2026 Earnings Presentation December 4, 2025 Safe Harbor This presentation includes express and implied "forward-looking statements", including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "pre ...