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 Yazdani Great. 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.
Our Cloud billings grew almost 90% year-over-year, and this was on top of the 60% growth we achieved in Q2 of last year. We grew our cloud bookings 81% during the quarter.Turning to the competitive landscape. We see many technology vendors have fallen short of developing modern HTM applications beyond the traditional HRIS systems. Enterprises are not going to rely on solutions from their legacy vendors. Rather, they will demand best-of-class solutions from vendors with innovative technology who are leaders in their application category. On that front, Saba has been the clear leader in the enterprise learning space, with 51% of Fortune 100 as customers, and we are the only vendor in this space to offer fully integrated real-time collaboration, testing and assessment capabilities. Additionally, we have over 2 million user deploying our performance and talent solutions, and we essentially have every major pharmaceutical company deploying our testing and assessment capabilities. More importantly, we have been developing our next-generation Saba People Cloud offerings. The Saba People Cloud will provide an open trusted environment to develop, engage and inspire all the people in your people network to change the way they work by combining the best of social and collaboration technology with modern people and management practices. The Saba People Cloud is designed to be a unified, people-centric and social platform to enable the transformative workplace. The transformative workplace is an interactive, always on, flexible environment that enables organizations and governments to provide their entire people network: employees; customers; suppliers; partners and citizens, with the development, engagement and inspiration they need to constantly transform themselves and their organization to meet the dynamic challenges of the knowledge economy and be more competitive through better innovation, speed, agility and trust. This is why Saba is not a traditional talent management provider, but instead a provider of people networks deliver in the Saba People Cloud. Legacy talent management solutions have failed to change the way work gets done in the organizations. These legacy solutions have been designed for top-down control of talent, learning and recruiting, resources and processes. They are not designed to empower frontline managers and employees to align themselves to organizational strategies, connect with the right people, information or ideas to get their job done and take charge of their own professional development. Read the rest of this transcript for free on seekingalpha.com