For information concerning factors that could cause actual results to differ materially from those in the forward-looking statements, we encourage you to review our annual report on Form 10-K for the year ended May 31, 2011, and subsequent Saba periodic reports, which are available through the Investor Relations section of our website or through the SEC's website at sec.gov.
We assume no duty or obligation to publicly update or revise any forward-looking statements. In addition, we intend to discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP results is included with the financial statements accompanying our earnings release.
With that, I would now like to turn the call over to Bobby Yazdani, Chairman and Chief Executive Officer of Saba.
Bobby YazdaniGreat. Thanks, Roy. Two years ago, we made the strategic decision to transform Saba to a cloud business, and we knew that this transformation would yield a significantly better offering for our customers on the market, as well as greater financial predictability, as a result, increase shareholder value. But I'm happy to report that we have successfully transitioned our business to the cloud and have done so, well ahead of our plan. Our dependence on license revenue to increase total revenue and billings growth have been eliminated. We believe our Cloud business has emerged as one of the fastest-growing publicly traded cloud businesses. Our second quarter results reflect this growth as our cloud revenue was $9.7 million and represented the majority of our subscription revenue. We doubled the number of million-dollar deals we signed this quarter versus last quarter. We added over 1 million subscribers in Q2 alone, and our cloud customers are signing longer-term contracts with us. We are also gaining efficiencies in delivering our Cloud solution as it was the primary driver behind our 200 basis points increase in subscription gross margin year-over-year.