Overview
- Shares jumped more than 20% after fiscal Q3 topped forecasts, with revenue up 19% to $628 million and adjusted EPS at $1.32.
- Management raised full-year targets to $2.434–$2.439 billion in revenue (about 21% growth) and 30%–31% growth in adjusted EPS.
- Atlas, the subscription cloud platform, grew 30% year over year and accounted for 75% of quarterly sales, highlighting the shift to recurring cloud revenue.
- Profitability and cash generation improved, including $123.1 million in adjusted operating income and $140.1 million in free cash flow, though GAAP results showed a small net loss.
- Coverage notes a debate over sustainability as growth has cooled in recent years and the valuation appears demanding, even with multi-cloud positioning against larger rivals.