ZeroFox (NASDAQ:ZFOX) CEO Foster joined Steve Darling from Proactive to share the company's impressive financial results for the third quarter. ZeroFox (NASDAQ:ZFOX) continued its positive momentum, achieving robust top-line growth while simultaneously generating positive free cash flow for the second consecutive quarter. The financial highlights for the quarter include total revenue reaching an impressive $65.0 million, with annual recurring revenue (ARR) totaling $185.9 million. Gross margins were strong at 30%, while non-GAAP gross margin reached an even more impressive 38%.
The GAAP subscription gross margin stood at 52%, with non-GAAP subscription gross margin reaching a remarkable 73%. Foster went on to mention the company's growing customer base, revealing that ZeroFox concluded the quarter with 1,330 subscription customers. Notably, there were 182 subscription customers with ARR exceeding $100,000, marking a substantial 27% increase year-over-year. The company also highlighted a significant achievement—the renewal and expansion of an 8-figure contract with a strategic U.S. federal agency focused on cybersecurity.
ZeroFox's expertise in external cybersecurity is built on its robust platform, which incorporates advanced AI analytics, digital risk and privacy protection, comprehensive threat intelligence, and a suite of response capabilities for breaches, incidents, and takedowns. These financial results and achievements underscore ZeroFox's position as a leader in the cybersecurity industry, reflecting its commitment to innovation and its ability to provide comprehensive solutions to address evolving threats in the digital landscape.