From the mission data platform and its real-time cross-domain collaboration across allied nations to MAVERICK for target effect repairing and advanced fires execution. These real-world events validate the investments that we have made over the last five years, and strengthens our conviction in what we are building now for the future. And with that, I’ll hand it over to Dave to talk us through the financials.
David Glazer: Thanks, Shyam. We had an exceptional quarter. Revenue growth reaccelerated on the back of our U.S. commercial business, driven by our intense focus on AIP, while margins continue to expand, demonstrating the transforming unit economics of our business. We beat the high end of our guidance range on both top line and bottom line and increased our Rule of 40 score 800 basis points (ph) quarter-over-quarter to 46, while simultaneously delivering our fourth consecutive quarter of GAAP profitability, the first time ever that we are GAAP profitable on a trailing 12-month basis. We also delivered our third consecutive quarter of GAAP operating profit and over $0.5 billion in adjusted free cash flow over the last four quarters.
Turning to our global top line results. Third quarter revenue reaccelerated to $558 million, up 17% year-over-year and 5% sequentially, exceeding the high end of the range of our prior guidance. Excluding the impact of revenue from strategic commercial contracts, third quarter revenue grew 21% year-over-year and 6% sequentially. Revenue from our largest customers continues to expand. Trailing 12-month revenue per customer from our top 20 customers increased 13% year-over-year to $54 million per customer. Customer count grew 34% year-over-year and 8% sequentially to 453 customers as we remain focused on landing new accounts. Now moving to our commercial segment. Third quarter commercial revenue grew 23% year-over-year and 8% sequentially to $251 million.
I’d like to congratulate the entire commercial org for reaching a $1 billion annualized run rate milestone this quarter. It’s quite an achievement. Excluding the impact from strategic commercial contracts, commercial revenue grew 34% year-over-year and 11% sequentially. In the third quarter, U.S. commercial revenue reaccelerated to $116 million, up 33% year-over-year and 13% sequentially. Excluding revenue from strategic commercial contracts, U.S. commercial revenue grew 52% year-over-year and 19% sequentially. We continue to see the impact of our intense focus on AIP on our commercial business, both through the adoption of new customers and the expansion of opportunities at existing customers. We booked $252 million of U.S. commercial TCV, representing growth of 55% year-over-year on a dollar-weighted duration basis.
Our U.S. commercial customer count grew to 181 customers, reflecting 37% growth year-over-year and 12% sequentially, benefiting from the increase in velocity of our AIP go-to-market motion. This represents a ten-fold increase in U.S. commercial customer count from when we went public just 3 years ago. Our international commercial business was up 15% year-over-year and 4% sequentially to $134 million as we continue to capitalize on targeted growth opportunities in Asia, the Middle East and beyond, while conditions remain challenging in Continental Europe. Revenue from strategic commercial contracts was $15 million or 2.6% of quarterly revenue, down from $19 million in the prior quarter. We anticipate fourth quarter revenue from these customers to continue to decline to between $13 million to $15 million, representing 2.3% of expected fourth quarter revenue.
Shifting to our Government segment. Third quarter government revenue grew 12% year-over-year and 2% sequentially to $308 million. U.S. government revenue grew 10% year-over-year and 2% sequentially to $229 million. While it’s hard to predict exactly when our government revenue will reconverge at historically high CAGRs, as Shyam mentioned, our products, PG, GAIA, MetaConstellation and AIP are needed in battlefields across the world and even more so in the current geopolitical landscape. International government revenue grew 21% year-over-year and 2% sequentially to $78 million, bolstered by our continued work in health care and defense. Moving to bookings. TCV booked was $830 million, up 29% sequentially. Net dollar retention was 107%, impacted primarily by headwinds from our commercial business in Continental Europe.
Net dollar retention does not include revenue from new customers that we acquired in the past 12 months and is, therefore, not reflective of the recent acceleration in our U.S. commercial business. We ended the third quarter with $3.7 billion in total remaining deal value and $988 million in remaining performance obligations. As a reminder, RPO is primarily comprised of our commercial business as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience clauses, both of which are common in most of our government business. Our U.S. commercial business saw total remaining deal value growth of 23% year-over-year and 27% sequentially when excluding the impact from strategic commercial contracts highlighting the acceleration of our go-to-market motion.
Turning to margin and expense. Adjusted gross margin, which excludes stock-based compensation expense was 82% for the quarter. Adjusted income from operations, which excludes stock-based compensation expense and related employer payroll taxes was $163 million, representing an adjusted operating margin of 29%, 400 basis points ahead of the high end of our prior guidance, and marking the fourth consecutive quarter of expanding adjusted operating margins. Q3 adjusted expense was $395 million, down 1% sequentially and flat year-over-year. In short, we’ve been able to flatline expenses for four consecutive quarters while investing significantly in our products, including AIP and reaccelerating our revenue. This drives home the efficiency and operating leverage of our software at scale.
R&D adjusted expense was up 9% year-over-year and 11% sequentially, demonstrating our commitment to continuously drive forward product innovation and invest in technical talent. Over the past year, we have emphasized our unwavering dedication to sustain GAAP profitability and GAAP operating income. Our four consecutive quarters of improving GAAP operating income enable us to more aggressively invest in AIP. Looking ahead to the fourth quarter and beyond, we remain focused on calibrating expense growth below revenue growth, even as we increase investment and resourcing to AIP and in specific geographies around the world. In the third quarter, we generated GAAP operating income of $40 million, our third consecutive quarter of GAAP operating income.
We also generated GAAP net income of $72 million, representing a 13% margin, our fourth consecutive quarter of GAAP profitability. This is the first time we’ve ever achieved both GAAP net income and GAAP operating profitability on a trailing 12-month basis. While we continue to manage our stock-based compensation expense, as I mentioned in previous quarters, we expect it to trend up in Q4 as we continue to invest in AIP. Third quarter adjusted earnings per share was $0.07 and GAAP earnings per share was $0.03. Additionally, our combined revenue growth and adjusted operating margin accelerated to 46%, an 800 basis point increase to a Rule of 40 score from the prior quarter. We will strive to maintain this exceptional balance of top and bottom line performance.
Turning to our cash flow. In the third quarter, we generated $141 million in adjusted free cash flow, representing a margin of 25%, and $133 million in cash from operations, representing a margin of 24%. Over the past four quarters, we’ve generated $490 million in cash flow from operations and $502 million in adjusted free cash flow, marking the first time we’ve exceeded $0.5 billion in adjusted free cash flow on a trailing 12-month basis. We ended Q3 with $3.3 billion in cash, cash equivalents and short-term U.S. treasury bills. We retain access to additional liquidity of up to $500 million through our revolving credit facility, which remains entirely undrawn. Now turning to our outlook. For Q4 2023, we expect revenue of between $599 million and $603 million, adjusted income from operations of between $184 million and $188 million and GAAP net income.
For full year 2023, we are raising our revenue guidance to between $2.216 billion and $2.22 billion. We are raising our adjusted income from operations guidance to between $607 million and $611 million and we continue to expect GAAP net income in each quarter of this year. With that, I’ll turn it over to Alex for a few remarks.
