The increases primarily reflect headcount investments in revenue generating positions and in research and development. Our revenue growth continues to grow significantly faster than operating expenses. We exited the quarter with 281 employees compared to 273 at June 30, 2023 reflecting an increase of 8 FTEs sequentially. Adjusted EBITDA, which excludes stock-based compensation and the other onetime items, improved 38% year-over-year and 20% sequentially. It was negative $11.1 million in the third quarter compared to negative $18 million in the third quarter of last year and negative $13.8 million in the second quarter of this year. Turning to the balance sheet. We ended the quarter with $140 million in cash, cash equivalents, restricted cash and marketable securities; down about $16 million sequentially primarily driven by our net loss as well as fixed asset additions to support the pure subscription business.
We continue to encourage investors to review property and equipment on the balance sheet, which is where the cash effectively sits that we invest in Evolv Express systems and future inventory for our pure subscription customers. Property and equipment has grown by nearly $50 million year-to-date as more of our business has transitioned to our pure subscription model. I want to close with a few comments about how we’re thinking about the future starting with the close of 2023. In short, we believe we’re well-positioned to deliver results in line with the upwardly revised growth plans we shared with investors on October 12. To that end, we are reaffirming the outlook for 2023 that we shared that day. We are expecting full year revenue of between $75 million to $77 million.
We expect to exit the year with ARR of between $73 million to $75 million reflecting full-year growth in ARR of approximately 115%. We expect adjusted full year gross margin to be between 43% to 45%. We also expect adjusted EBITDA to be between negative $50 million and negative $53 million. Finally, we expect to exit the year with cash, cash equivalents and marketable securities at the high end of our previously issued guidance of $110 million to $120 million. Turning to 2024, as Peter mentioned, we remain encouraged by the growth opportunity we see ahead. While we’re still developing our final plans for next year, we want to share some high level perspectives on how we’re thinking about 2024. We are currently modeling full-year revenues of about $115 million in 2024 reflecting growth of about 50% year-over-year.
We believe we can exit 2024 with ARR of between $108 million and $112 million reflecting growth of about 50% year-over-year. Our models call for adjusted gross margins of about 60% in 2024. While we have not yet finalized our hiring plans for 2024, we expect to continue to moderate expense growth and leverage our earlier investments. Of the hiring that we will do in 2024, I expect more than half of the headcount additions to be customer-facing, revenue-generating roles. Based on our current models for 2024, we expect to reduce our adjusted EBITDA loss by at least 40% in 2024. We believe we remain on track to get to positive adjusted EBITDA in the first half of 2025 and when we do, we expect to have cash, cash equivalents and marketable securities of between $75 million to $100 million.
Again, we have more work to finalize our growth plans for 2024, but we wanted to share some of our latest thoughts with you. That’s it for now. With that, I’ll turn things back over to Brian.
Brian Norris: Thanks, Mark. Eric, at this time, we’d like to open the call up for Q&A.
Operator: Thank you. [Operator Instructions] And we’ll go with line of Mike Latimore with Northland Capital Markets. Please go ahead.
Mike Latimore: Hi, good evening, yes. Congrats, the 1 billion number sounds pretty impressive there.
Mark Donohue: Got to be in it, Mike.
Mike Latimore: That’s it. Very good. So I think at your Analyst Day, you talked about a long-term growth rate of 30% to 40%. The initial number you gave there for ’25 was the unit growth of well over that number. Can you just kind of help provide a little more context around that?
Mark Donohue: Mike, we can give you a little bit more context there. I mean what we’re really looking at I think over the long term here is a transition to our distribution model, which is going to happen next year. So we talked about that at the May Analyst Call. The growth that we’re giving next year is, I would say, at least 50%. That’s sort of a starting point for us as we’re thinking about the early parts of our annual operating plan, which we’re still refining through the end of this year. Peter talked about 12,000 plus units in 2025, that’s a number that we’re pushing up above 20% from our prior comments there. So I think that’s a good indicator of where we’re going over that period of time.
Mike Latimore: Got it. And then the mix here, are you still thinking purchase subscription could be sort of 50% of new adds?
