Company increases cloud annual recurring revenue (ARR) by 59% YoY and cloud direct gross margins to 76%, while reducing operating losses by 71% QoQ
Glassbox, a leading provider of digital experience intelligence for web and mobile applications, announced its financial results for the third quarter of 2023. The company’s revenues grew 5% to $12.2 million and cloud subscription revenues jumped by 34% YoY.
“Glassbox realized strong results in Q3 primarily due to cloud subscription revenue growth from our strategic focus on the financial and insurance sectors. We also continue to improve our profit metrics, including operating margins, by streamlining operations”
Meanwhile, ARR increased by 20% YoY to $56 million, while cloud ARR surged by 59% YoY to $48 million. Cloud growth was bolstered by the signing of a $42.3 million, 3-year agreement with a large bank, which immediately added $8.3 million ARR in the quarter.
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The company’s upward trend in non-GAAP gross margins continued, reaching 70.5% compared to 66.1% in the same quarter last year. Cloud direct gross margins also increased to a record 76.1% in the quarter compared to 64.8% in the same quarter last year.
Glassbox also reduced its non-GAAP operating loss by 71% due to consistent improvement in operational efficiencies and cutting expenses. With a $37 million cash balance, including a credit facility, Glassbox has the financial flexibility to continue its expansion and to implement its strategic initiatives.
This was also the company’s third successive quarter with an increasing customer retention rate. Glassbox added new customers, such as US HealthConnect Inc. and Brisbane City Council, and expanded contracts with existing enterprise customers, including Ace Hardware, one of the three largest banks in the US, top Asian airlines, and a large insurance company.
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“Glassbox realized strong results in Q3 primarily due to cloud subscription revenue growth from our strategic focus on the financial and insurance sectors. We also continue to improve our profit metrics, including operating margins, by streamlining operations,” said Glassbox CEO Yaron Morgenstern. “Our operating cash burn in 2023 will be significantly lower than the previous year, which together with a strong balance sheet, provides the financial flexibility to fuel our growth trend.”
Built from the ground up to securely capture and analyze 100% of digital experience data automatically, Glassbox has embraced AI as a means to bring valuable digital insights to business users more quickly and easily through proven features such as struggle analysis and anomaly detection. This year, the company increased its investment in AI and was recognized in the MarTech Breakthrough Awards with the Customer Experience Innovation Award for its unique ability to use AI to turn qualitative voice of the customer (VoC) feedback into scalable, actionable insights. Glassbox also announced in September its intention to pioneer Autonomous CX, a set of capabilities that will result in self-optimizing digital experiences.
Morgenstern added, “Through the current war in Israel, we will provide unwavering support for our employees and customers in Israel. Our global business activity continues normally thanks to a strong commitment by our employees to our continued business operations. We are grateful to our business partners and customers for the strong solidarity they have shown us during this very complex and painful time.”