Extreme Networks, Inc.

Thank you for standing by. My name is Ian, and I will be your conference operator today. At this time, I would like to welcome everyone to the Extreme Networks Q3 FY25 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star 1. Thank you. I would like to hand the call over to Stan Kovler, Senior Vice President, Corporate Development and Investor Relations. Stan, you may begin your conference.

Thank you, Ian. Good morning, and welcome, everyone, to Xtreme's third quarter fiscal 2025 earnings conference call. With me today are Xtreme Network's President and CEO, Ed Meyercourt, and Executive Vice President and CFO Kevin Rhodes. We just distributed a press release and filed an 8K detailing Extreme Network's financial results for fiscal Q3. A copy of the press release, which includes our GAAP and non-GAAP reconciliations, and our earnings presentation are available in the IR section at extremenetworks.com. Today's call and Q&A may include certain forward-looking statements based on our current expectations about Extreme's future financial and operational results growth expectations, and strategies. Our financial disclosures made on this call will be on a non-GAAP basis, unless stated otherwise. We caution you not to put undue reliance on these forward-looking statements, as they involve risks that can cause actual results to differ materially from those anticipated by these statements. These risks are described in our risk factors in our 10-K and 10-Q filings, and any forward-looking statements made on this call reflect our analysis as of today. We have no plans to update them except as required by law. Following our prepared remarks, we will take questions. And now, I will turn the call over to Xtreme's President and CEO, Ed Myercourt.

Thank you, Stan, and thank you all for joining us this morning. Revenue in the quarter reached $284.5 million, representing a 35% increase year over year, growing sharply in EMEA and Americas regions, with a particularly strong performance in the Americas, sequentially up 21% from the prior quarter. We're seeing robust demand across both our wired and wireless network solutions. Revenue grew sequentially for the fourth quarter in a row, driven largely by product revenues, and we achieved our best quarter of product bookings in six quarters. We're encouraged by new logo wins and the growth in average deal sizes This quarter, we have 40 customers generating over a million dollars in bookings, up from 36 last quarter. This highlights our move up market, with success penetrating larger enterprise customers across all our industry verticals. Our competitive position continues to strengthen, with significant wins against major players in key accounts, such as City of Everett, Washington, West London NHS Hospital, and the United Soccer League, and two major government agencies in Japan. We're seeing customer behavior patterns shift towards larger, more comprehensive deployments. And looking ahead, we have strong confidence in sustained customer demand based on our Q3 funnel generation and with continued strong growth in our pipeline. Our competitive win rates are on the rise across a variety of verticals. We're displacing major players like Cisco, HP, and Juniper, largely due to our highly differentiated campus fabric solution. the simplicity of our cloud solution, and our flexible licensing. When customers see the impact of Fabric's unique features, like sub-second convergence, the unmatched security benefits of micro-segmentation, and the ease of deployment with automated zero-touch provisioning, Extreme becomes an easy choice. One higher education customer recently told us, with zero-touch provisioning, automatic configuration, and unified network management across 14 locations, they've been able to reduce IT workloads by almost 50%. If enterprise customers spec our technology, competitors cannot match these features with their limited IP data center fabric, and it causes them to drop out of the competitive pitch. In the quarter, customers such as Ferrovia Nord, an Italian transport company overseeing 120 regional railway stations covering provinces such as Milan, Varese, and Como, chose Xtreme Cloud and Xtreme Fabric to streamline network management, ensure consistent performance and low latency, and create secure network segmentation across its sites. The city of Everett, the seventh largest city in Washington State, upgraded its network and moved to a flexible, cost-effective network infrastructure as a service model from Xtreme. During the upgrade, they can continue to manage aging third-party devices with Extreme Cloud IQ while automating and provisioning new devices with Extreme Fabric, making it fast and easy to upgrade with no downtime. Also, Duquesne University chose Extreme Fabric and Extreme Cloud IQ because of the streamlined way Fabric will help minimize some of the IT team's most arduous tasks. HP Hood, a large dairy company in the U.S., recently upgraded to Extreme Cloud to manage operations across its 20 manufacturing and distribution center. Xtreme's seamless integration with Zebra devices was a significant factor in winning that deal. We continue to expand our footprint in the Six Flags theme parks with new deals in Six Flags Magic Mountain in Fiesta, Texas. Each deployed Xtreme Cloud alongside a new six gigahertz wireless network, which will create real-time monitoring and management of rides to reduce downtime deliver more efficiency and park infrastructure, and reduce operating costs. They're also receiving Xtreme's premier white glove professional services for installation. We also had a nice win with a large law firm in North Carolina, which has 24 offices and more than 450 employees. They were using legacy HPE infrastructure, which made it very difficult for their team to manage the network across several locations. With Xtreme Cloud and Universal ZTNA, They'll be moving operations to the cloud, simplifying the IT and employee experience, and increasing security of their network. Xtreme's used ETNA SaaS solution is gaining momentum with strong interest from customers in education, manufacturing, healthcare, and financial services. It combines mature network access control with zero-trust remote application access. We're also seeing strong momentum with our commercial models, We added 11 new partners to our MSP program this quarter, bringing the total to 48. We offer the industry's first consumption-based billing model, eliminating upfront costs and ensuring cost predictability. Our unique poolable licensing lets MSPs flexibly allocate licenses across devices, locations, and customers, making it easier than ever to scale. In the quarter, we made Extreme Platform 1 available for MSPs, With everything centralized, Platform 1 helps MSPs gain a comprehensive view of each client's network health, performance, and security status. The VP of Technology Alliances at our partner, Logicali, said, with Extreme Platform 1, we can efficiently manage all of our clients under one platform, which will significantly reduce the time and IT staff required to maintain operations. On the innovation front, early indications from customers and partners reinforce that Xtreme Platform One will be a game changer. It's the first solution that offers holistic AI for networking. It drives significant automation by leveraging AI agents that assist in tasks across the entire network lifecycle from planning and deployment to management and remediation, reducing the time to complete complex tasks from hours to minutes. As enterprise teams feel pressure from executive leadership and their boards to leverage AI to drive operating efficiencies, Xtreme Platform One will provide the most modern tools to achieve this objective. According to a survey we conducted with 200 C-level executives earlier this year, 89% are ready to invest in a platform for AI networking and security. Earlier this month, we made Xtreme Platform One available to E-rate customers To date, we have approximately 100 customers that have subscribed to the platform. And we're excited to share more details about Xtreme Platform 1 at our oversubscribed Connect user conference in Paris, which is happening next month. Our customers are enjoying the best quality products in Xtreme's history. We see this in our data and our financial results, as well as service costs, which are running at record lows, and customer satisfaction, which runs consistently at high levels. We anticipate further market share gains and revenue growth for the full year and continued strength in Q4. We expect this growth to be accompanied by increased margins and cash flow for the full year. And with that, I'd like to turn the call over to our CFO, Kevin Rhodes, to walk us through the results and guidance.