Last week, on October 19, we announced our Q3 earnings. I’m very pleased with the results, which clearly demonstrate how our renewed focus is resonating in the marketplace. We achieved $841 million in revenue, up 3 percent from last year. Our operating margins improved to 30 percent, and our earnings per share grew to $1.32, beating expectations.
Most importantly, we are seeing growth in all of our core areas of business — most notably in our Workspace Services business, which grew for the second consecutive quarter. Our efforts in accelerating product innovation and improving operational processes are working. And the progress on cultural transformation that defines us as a company will continue to power us forward.
We are seeing improved stability in our workforce and incredibly strong employee engagement, as evidenced by very strong results and participation in our recent Global Employee Survey. Specific to our field organization, through these improvements, we now have approximately 100 more quota-carrying reps since our restructuring last year. Our Americas sales team continues to fire on all cylinders with consistently strong execution quarter after quarter; and we see great opportunity to replicate, around the world, what is working so strongly in the Americas.
Our vision is clear; our strategy is crisp; and our execution has improved dramatically. We have now had five straight quarters of continuous operating improvements.
Core Area Highlights
The big story this quarter is, of course, Workspace Services or, as we know it, our Xen Family. It is exciting to see this core part of our business deliver a 5 percent year-over-year increase in license revenue growth. I am encouraged by sales energy and tremendous product innovations in this area, including XenApp/XenDesktop 7.11, which features day-one support for Windows Server 2016 and many other enhancements. After two quarters of solid growth, this is clearly not a fluke or just a blip on the radar—this is an exciting change deliberately driven by the strongest, most highly differentiated products; and much-improved competitive edge.
In our network delivery business, we saw good growth in the core ADC area, with a 5 percent year-over-year increase from the strong Q3 in 2015. And this quarter we delivered NetScaler SD-WAN 9.1, NetScaler support for the FIPS standard, which is a testament to our commitment to security in the U.S. Federal Government, and NetScaler CPX Express, a free developer version of NetScaler in a container.
As with previous quarters, ShareFile continued to prove itself as a growing force in the EFSS market, growing 25 percent year over year. We continued to drive rapid product innovations and expand ShareFile functionality in targeted industries, adding more workflows and cloud connectors. We are starting to see increased traction of ShareFile outside of the United States where it’s still the strongest and in the larger enterprise segment.
Momentum with Partners
We saw our stronger-than-ever relationship with Microsoft begin to bear fruit this quarter – from the announcement Microsoft made in August regarding its Azure RemoteApp service to joint wins we are seeing in the field from the alignment of our sales organizations. Acceleration of adoption of Windows 10, Office 365, and Azure in the Enterprise all serve as continuous catalysts for our business.
As to our broader partner channel, the momentum is continuing to grow. We had nearly 50 $1M+ deals in Q3; the share of our sales coming from the mid-market is increasing—a clear signal that our strategy to expand in mid-market is working and that our partner channel is more vibrant than ever.
A Demand for Security
Cyber Security, the BYOD phenomenon, and Cloud adoption are additional industry trends that are driving demand for our solutions.
With cyber security as the number one concern for enterprises of all sizes, it’s becoming increasingly evident that Citrix solutions are, indeed, one of the strongest defenses against potential end point device and perimeter attacks. This is particularly clear in highly regulated industries, including financial services and healthcare, where we had more than a dozen large deals this quarter. We also had several defense ministries and government agencies around the world choose Citrix to address security concerns.
Moving into Q4 and Beyond
So, how am I feeling about the future? For starters, I’m excited to see that with highly differentiated products and by stepping up our competitive edge, we are taking share in all our core areas. Our hard work is really paying off.
Overall, I feel very enthusiastic about the business and our ability to serve the needs of our customers and our partners. With continued focus on our strategy and vision, we’re going to start 2017 with Citrix being better and stronger than ever.