In Q3, 46% of total revenue came from Enterprise Plus subscription, up from 39% in Q3 of 2022. Revenue from Enterprise Plus subscription grew 46% year-over-year. Now let me discuss our income statement in more detail. Gross profit in the quarter was $74.1 million, representing a gross margin of 83.7%, up by 10 basis points from the second quarter as economies of scale and cost control offset higher cloud revenue contribution. Operating expenses for the third quarter were $62.3 million, up by $100,000 sequentially, equalling 70.2% of revenues, compared with $59.4 million, or 82.5% of revenues in the year-ago period. During the third quarter, we continue to remain focused on expense discipline, while investing in scaling our enterprise sales and channel partner teams and introducing multiple new products.
Our operating profit in Q3 was $11.9 million or a 13.4% operating margin compared to an operating income of $1.2 million or 1.7% operating margin in the prior year as we continue to execute toward increased profitability as suggested in our long-term model. Third quarter net income equaled $16.6 million or $0.15 per diluted share based on 110 million diluted shares outstanding versus a year ago net profit of $1.8 million or income of $0.02 per diluted share. Turning to the balance sheet and cash flow, we ended the September quarter with $502 million in cash and short-term investments, up from $443 million as of December 31, 2022. The Cash flow from operations was a record $26 million in the quarter. After taking into consideration CapEx, free cash flow was $25.4 million, generating a 28.6% free cash flow margin.
Our strong free cash flow margin is driven by better-than-expected profitability and strong collection from our customers. We increased our expectations for free cash flow margin in fiscal 2023 and now believe we’ll be able to achieve 15% to 16% free cash flow margin. As of September 30, 2023, our remaining performance obligation totaled $235.1 million. Now I’d like to speak about our guidance for the fourth quarter and full year 2023. For Q4, we expect revenue to be between $92.5 million to $93.5 million, with non-GAAP operating profit between $10 million to $11 million and non-GAAP earnings per diluted share of $0.12 to $0.13, assuming a share count of approximately 111 million shares. For the full year 2023, we anticipate total revenues in the range between $345.1 million and $346.1 million.
Non-GAAP operating income is expected to be between $32.8 million and $33.8 million. And non-GAAP earnings per diluted share of $0.44 to $0.45, assuming a share count of approximately 109 million shares. Now let me turn the call back to Shlomi for some closing remarks before we take your questions. Shlomi?
Shlomi Haim: Thank you, Jacob. We believe that Q3 strong results showcased the alignment with our long-term strategic growth plans as we continue to meet technology and business goals. To JFrog tireless global teams, thank you for your focus, solidarity, passion and execution. Q3 is a testament to our resilience. I’m excited to welcome Ed Grabshid as our new CFO beginning January 1, 2024. Ed brings vast experience prior to his time at JFrog and in the past four years as part of our finance leadership. Ed, we are confident that your leadership will continue to drive JFrog’s success. From here, I would like to send our CFO, Jacob Shulman, the best of wishes on his next journey. While you will be with us through the end of this year, I’ll take the opportunity now to thank you, Jacob, for the years of friendship and partnership.
You will always be a Frog. I would also like to congratulate Orit Goren, who was recently appointed as our Chief Sustainability Officer, highlighting JFrog’s commitment to maintaining and driving responsible business. After many years as our Chief Operation Officer, I want to thank you, Orit, for taking on this very important role. In closing, our thoughts and prayers continue to be with the families affected by the brutality of the terror on Israel. Israel, like JFrog, is strong and will prevail. — we hope for peaceful and secure days ahead. With that, thank you all for joining us for our Q3 earnings call and may the Frog be with you. Now we will be happy to take your questions. Operator?
