Free and paid customers on our platform, however, grew to over 27,000, an increase of approximately 18% compared to Q3 of last year. Q3 gross margin was 85% and within our 84% to 86% target range. Operating income improved by over 1,000 basis points to $15 million or 14% of revenue. This compares to $3 million or 3% of revenue in the same quarter last year. Revenue upside along with a one quarter delay in realizing approximately $2 million of non-recurring expenses contributed positively to the operating income result. In terms of cash flow for the quarter, cash from operations were $17 million or 16% of revenue, and free cash flow was $15 million or 14% of revenue. Turning to the balance sheet. We ended the quarter with $575 million in cash, cash equivalents and investments.
Total deferred revenue ended the quarter at $196 million, up 9% year-over-year. Quarterly calculated billings were $109 million, an increase of 4% year-over-year and below the range of 8% to 10% provided during last quarter’s call. On a trailing 12-months basis, billings were $437 million, an increase of 14% compared to a year ago and in line with our estimates. With respect to Q4, we expect 12-month billings growth to be approximately 10%. Turning to our guidance. For the fourth quarter of fiscal 2024. We expect revenue in the range of $109.5 million to $111.5 million, representing a growth rate of 8% to 10%. And net income per diluted share attributable to PagerDuty, Inc. in the range of $0.14 to $0.15. This implies an operating margin of 8% to 9%.
For the full fiscal year 2024, we are increasing our revenue expectation to a range of $429 million to $431 million, representing a growth rate of 16%. This compares to the range previously provided of $426 million to $430 million. And net income per diluted share attributable to PagerDuty Inc. remains between $0.72 and $0.73. This implies an operating margin of 13%. The changes we have made adjusting to the macroeconomic environment over the past two quarters are yielding results.We are driving a new level of engagement with our customers outside of the renewal cycle to ensure they are successful and support their business priorities. In enterprise and mid-market, our investments enablement are leading to improved new customer acquisitions, stronger expansion metrics, increase in larger multiyear commitments and strategic operations cloud multiproduct transactions.
Our long-term view of the business has us focused on continuing to deliver profitable growth as we revolutionize operations with our customers. With that, I will open the call for Q&A.
A – Tony Righetti: Okay. Thank you, team, and we’re going to hear first from Rob Oliver. Rob, please go ahead.
Rob Oliver: Thank you, guys. Can you hear me okay?
Jennifer Tejada: Yes, we can.
Rob Oliver: Okay. Great. I apologize for the bad connection and I’m going to keep myself off video. Hi Jen, Hi Howard. So I’ll squeeze in two quick ones and then I’ll mute out in case I’ll lose the connection. So the first, Jen, is on just your comments around green shoots. I was wondering if you could add a little bit more color now you mentioned enterprise and just like that’s a statement we’ve heard from a couple of people this week. And I would love to hear, what it is that gives you kind of the comfort to kind of call that out, whether it be pipelines, conversations? And then my follow-up is for Howard. Just around the slowing in the 100,000 customers. You headed into your final fiscal quarter of the year, if there’s any comments around pipeline.
I know sort of last quarter, the thought was perhaps the setup was a bit conservative when you guys didn’t pass through the beat. So just wondering if there was any change in the macro or how we should think about that number? Sorry to squeeze in both and thank you guys very much.
Jennifer Tejada: No worries. Thanks for the question, Rob. I’ve been spending a lot of time with customers. I’ve seen over 100 customers in the last couple of quarters. I just came back from AWS’ re:Invent in Las Vegas, this week. And I’m tremendously encouraged by just the level of engagement around more strategic operations cloud discussions. I think the while the operating environment continues to be demanding, it’s actually driving this focus on doing more with less. And it’s really what people’s appetite for automation. And I think the long-term relationships that we’ve had with customers has led to them really turning to us as they understand what’s available to them in the broader operations cloud platform. Secondly, we’ve seen enterprise and mid-market really stabilize and continue to perform.
We saw really great new and expansion this quarter from an enterprise perspective. And I talked about a record deal and a very significant operations cloud expansion and that we did in my prepared remarks. So just when I think about the large deal opportunity and more strategic operations, cloud opportunities, we see the initiatives that we’ve had underway for several quarters, taking hold and resulting in stronger big deal pipeline. I’d also say that our customers are starting to get a handle on their budgets. And while the market is still volatile and that causes some cautious spend behavior, we see more of that in SMB and lower mid-market and more reengagement around strategic discussions in enterprise. And so, that, along with the way our teams are adapting well to the environment is encouraging and gives us a lot of confidence.
