Commvault Systems, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Commvault second quarter fiscal year 2020 earnings conference call. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. So as a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Michael Melnyk, Director of Investor Relations. Thank you. Please go ahead, sir.

Good morning, and thanks for dialing in today for our call to discuss our fiscal second quarter 2020 earnings results. Before we begin, I'd like to remind everyone that the statements made during this call, including in the question and answer session at the end of the call, may include forward-looking statements, including statements regarding financial projections and future performance. All the statements that relate to our beliefs, plans, expectations, or intentions relate regarding the future are pursuant to the safe harbor provisions of the private securities litigation reform act of 1995 and are based on our current expectations. Actual results may differ materially due to risks and uncertainties such as competitive factors, difficulties and delays inherent with development, manufacturing, marketing, and sale of software products and related services and general economic conditions. For discussion of these and other risks and uncertainties affecting our business, Thank you for your attention. At our sole discretion, our press release related to today's announcement was issued over the wire services earlier this morning and has also been furnished to SEC as an 8K filing. The press release is also available on our investor relations website. On this conference call, we will refer to non-GAAP financial measures. A reconciliation between the non-GAAP and GAAP measures can be found on our website. This conference call is being recorded and a replay is available for the webcast An archive of today's webcasts will be available on our website following the call. As a reminder, our acquisition of Hedvig closed on October 1st. As a result, our second quarter results discussed this morning do not include Hedvig. With me on the call this morning are Sanjay Mirchandani, President and Chief Executive Officer of Commvault, and Brian Carolyn, Chief Financial Officer of Commvault. Sanjay and Brian will each share opening remarks and commentary before we open the call for Q&A. With that, I'll turn it over to Sanjay.

Good morning, and thanks for joining us today. As you saw from our press release this morning, we delivered results above expectations for both revenue and operating margins. This performance, as well as our positive outlook, reflects the good headway we're making on the simplification, innovation, and execution priorities we established at the start of the fiscal year. We have work to do, but we're making real, measurable progress, and we remain focused on setting achievable goals and meeting them. Key actions since our last earnings call include our first major acquisition with Hedvig, the introduction of Metallic, a new SaaS offering, relaunching our brand, and hosting nearly 2,000 customers, partners, and thought leaders at our Commvault Go conference earlier this month. Brian will provide more context on our financial results in a few minutes. But first, I want to highlight our priorities and positive work underway. Let's discuss them one by one. We are simplifying how we do business. During the quarter, we continue to improve our org structure and reexamine, redesign, and simplify core processes. The resulting operational efficiencies not only contribute to our profitability, but enable us to reinvest in growth-driving initiatives. We also continue to implement, streamline, and align the tools and processes to drive predictability and better linearity in our sales pipeline. Enhancements are being extended to our customers and partners as well. We are making it easier and more beneficial for them to do business with Commvault. The feedback from these efforts has been positive, as noted by Brian Saligani of Tim AG, a longtime partner who said, We are excited about these changes and enhancements to the Commvault Partner Advantage Program. The new levels of simplicity and transparency will help our resellers achieve greater profitability faster than before. We plan to do more to simplify our business. and empower our ecosystem to build on this enthusiasm. Next, on innovation. Commvault has always been a leader in developing innovative solutions for our customers. This was validated once again when we were named as an innovator in the most recent Forced Away for Data Resiliency Solutions. And for the eighth consecutive year, Commvault was cited as a leader in Gartner's 2019 Magic Quadrant for Backup and Recovery. These are two of the most influential analysts for IT decision makers, and we are proud of the recognition we have received. We're continuously innovating our Commvault complete portfolio, and we expect to release new updates and capabilities roughly every 90 days. We've also built machine learning and artificial intelligence into our products and extended our capabilities across numerous public cloud providers and industry-leading applications. As a result, Thank you very much. Not only is it feature-rich, but we made it simpler and easier for our partners and customers to buy and use. Vincent Chang, president of Aerosoft Solutions, noted, quote, we're particularly excited about the new licensing and pricing model, which will make Activate easier to buy, and for us as a partner, easier to sell, end quote. Importantly, we're turning our innovation into new market opportunities. For example, we recently expanded our portfolio to include Metallic, and Enterprise Grade Software-as-a-Service Data Protection Solution. Built as an internal startup on Commvault's proven technology, Metallic sets a new standard for SaaS data protection with its unrivaled flexibility, scalability and simplicity. Now, customers can easily leverage our technology in any form factor, on-premise, in the cloud, as it applies or as a service. Metallic is available today in the United States through an initial set of launch partners who are truly excited about the offering. Steve Guggenheim, a corporate vice president at Microsoft, said, quote, many of our mutual customers are migrating their applications and data to the cloud. One of the really interesting use cases for Metallic is providing additional protection for individual user information within Microsoft Office 365, end quote. And we didn't stop there. We also closed our first major acquisition, Hedvig, on October 1st. Thank you very much. Metallic opens an approximate $1.6 billion addressable opportunity within the broader data replication and data protection public cloud service market. This market is projected to grow at a high single-digit rate. Together, these new offerings enable us to expand our TAM by almost 60%. When combined with our market strength, well-established customer base, and focus on execution, we believe that Commvault has meaningfully enhanced its growth potential. Finally, Thank you very much. and key Fortune 500 clients. We hired David Boyle, a 31-year industry veteran as our Vice President of America Sales. David was instrumental in building Dell EMC's enterprise business and we expect him to have immediate and meaningful impact. We're also making progress on addressing capacity by filling more than 100 open field positions. We believe all of these measures will enable us to better capture new customers and increase share of wallet with existing customers. Supporting our partner ecosystem continues to be a priority Our initial program indicators are positive and in line with expectations. Specifically, our pipeline is healthy and our partner-driven deals are up sequentially and year over year. And we are seeing strong momentum from our largest partners like NetApp, WebPro, and HPE. To further enhance this program, we are delighted that two world-class leaders chose to join Commvault in October, including Mercer Rowe, our new global head of channels and alliances, and Edison Perez, who will serve as a strategic go-to-market advisor. From an execution perspective, we believe the building blocks are in place and we remain extremely committed to growing our partner ecosystem. Looking ahead, Commvault is dedicated to helping our customers become data-ready. This means we enable our customers to protect, control, manage and use data today and as they move from one technology to the next, on-prem, in the cloud, in containers, on virtual machines, any application, anywhere. while multi-cloud, cloud-native applications, automation, and DevOps offer customers tremendous competitive advantages, they also create potential complexity and data fragmentation. This is hard to manage, especially with their multiple generations of infrastructures and applications that never stop creating data. To meet business needs and drive value, IT professionals must be data-ready. This is our sweet spot. Taking it a critical step further with the acquisition of Hedvig, Thank you for joining us. and I believe we're on the right track to deliver even better results in the future. With that, let me turn it over to Brian to give you more financial details. Brian?