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PowerSchool PowerSchool Announces Third Quarter 2021 Financial Results FOLSOM , CA - November 10 , 2021 : PowerSchool Holdings , Inc. ( NYSE : PWSC ) ( " PowerSchool " or the " Company " ) , the leading provider of cloud - based software for K - 12 education , today announced financial results for its third quarter ended September 30 , 2021 . " As the new school year began , K - 12 educators have turned to PowerSchool's comprehensive cloud software to ensure they are ready for whatever lies ahead , " said Hardeep Gulati , Power School CEO . " In Q3 , our cross - sell efforts helped us to achieve $ 527.8 million of ARR , representing 28.5 % year - over - year growth . These results show that when we meet customers ' needs where they are , we generate growth , as we've especially seen with the increased adoption of our Unified Insights solution . As schools and districts continue to leverage data analytics to focus on accelerating student learning gains , we have been able to reach over 1.5 million additional students through our sales efforts of Unified Insights this year so far . " Third Quarter 2021 Financial Results Total revenue was $ 149.0 million for the three months ended September 30 , 2021 , up 28.9 % year - over - year . Subscriptions and Support revenues were $ 124.3 million , up 30.7 % year - over - year . Gross Profit was $ 85.6 million , or 57.5 % of total revenue , and Adjusted Gross Profit was $ 101.2 million , or 67.9 % of total revenue . Net loss was $ 25.1 million , or negative 16.9 % of total revenue . Adjusted EBITDA was $ 40.1 million , or 26.9 % of total revenue . Net cash provided by operations was $ 173.1 million , and free cash flow was $ 163.6 million . Annual Recurring Revenue ( ARR ) was $ 527.8 million , up 28.5 % year - over - year , and Net Revenue Retention Rate was 105.6 % . * Definitions of the key business metrics and the non - GAAP financial measures used in this press release and reconciliations of such measures to the most closely comparable GAAP measures are included below under the headings " Definitions of Certain Key Business Metrics " and " Use and Reconciliation of Non - GAAP Financial Measures . " Recent Business Highlights PowerSchool continued to expand its footprint , with over 300 cross - sell transactions in Q3 , including one of the U.S.'s 10 largest school districts by student enrollment choosing Unified Insights and two additional cross - sell transactions in regional departments of education . PowerSchool implemented over 1,200 new products within its school and district customers and helped thousands of districts across the U.S. prepare for the 2021 school year including Detroit Public Schools , Lawrence Public Schools , and Kern County , CA. PowerSchool was honored with several top industry awards for its customer service and outstanding contributions in transforming education through technology , standing out as the only K - 12 education technology company featured alongside the world's premier software companies on The Software Report's list of Top 100 Software Companies . PowerSchool showed continued commitment to K - 12 interoperability and security by completing the TrustEd Apps privacy certification across multiple products and achieving CASE consumer certification for its Learning Standards Management platform with IMS Global , the world - leading non - profit collaborative advancing edtech interoperability , innovation , and learning impact . PowerSchool committed over $ 800 thousand from the PowerSchool Education Fund to DonorsChoose , University of California - Davis , University of South Alabama , University of South Florida , and North Carolina State University to support classroom equity programs and help diverse new teachers enter the profession . PowerSchool repaid approximately $ 849 million of debt , including the entirety of the outstanding balances of its Bridge Loan , Revolving Credit Facility , Incremental Facility and Second Lien Term Loan , using net - 1