Commvault Systems, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to Commvault 4th Quarter Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. It is now my pleasure to introduce Head of Investor Relations, Mike Melny.

Good morning, and welcome to our earnings conference call. I'm Mike Melnick, head of investor relations, and I'm joined by Sanjay Merchandani, Commvault CEO, and Brian Carolyn, Commvault CFO. An infographic with key financial operating metrics is posted on the investor relations website for reference. Statements made on today's call will include forward-looking statements about Commvault, future expectations, plans, and prospects. All such forward-looking statements are subject to risks, uncertainties, and assumptions. Please refer to the cautionary language in today's earnings release and Commvault's most recent periodic reports filed with the SEC for discussion of the risk and uncertainties that could cause the company's actual results to be different than those contemplated in these forward-looking statements. Commvault does not assume any obligation to update these statements. During this call, Commvault's financial results are presented on a non-GAAP basis. A reconciliation between the non-GAAP and GAAP measures can be found on our website. Thank you again for joining us. Now I'll turn it over to Sanjay for his remarks. Sanjay. Thank you, Mike. Good morning, and thank you for joining us today.

Fiscal 2022 was the best year in Commvault's history. Our differentiated platform and portfolio are resonating with customers and partners alike. Demand is strong, and our team is executing, enabling us to outpace and take share from the competition. We closed the year on a high note, posting record quarterly revenue EBIT, and EPS. Q4 software revenue of $101 million was a new milestone for the company, and we crossed $200 million in total revenue for the second consecutive quarter. Our growth was driven by the continued traction of our software and SaaS offerings, increased multi-product adoption, and through large deals. Additionally, Metallic continued to scale and contribute meaningfully to our revenue and customer growth. As we accelerate our recurring revenue journey, we are increasingly focused on ARR as a barometer of our future growth potential. Over 80% of our revenue is now recurring in nature and growing. At March 31st, subscription and SaaS ARR increased 46% year on year to 346 million and now represents 59% of total ARR. And I'm pleased to report that in just six quarters of commercial availability, Metallic has exceeded 50 million in ARR. Its growth is extraordinary. Customers love it, and we love it. Brian will discuss the financial highlights in a moment, but let's first discuss the year ahead. Over the past three years, we've assembled a world-class leadership team with deep domain expertise in cloud and SaaS. We transformed the company through our simplification, innovation, and execution mantra. And today's data protection market, especially data management as a service, is at a tipping point. This is an incredible tailwind for the company, and it is why we firmly believe our time is now. You see, it's rare to have three critical drivers converging at once. One, our heritage is grounded in solving very hard and complex data problems for customers. This has never been more important. Two, we continuously innovate elegant and industry-leading solutions to these problems in software and SaaS. And three, our execution engine is humming, as we've proven by the results we're sharing today. Commvault has all this. Let me discuss these one by one. First, we solve hard problems. Our customers live in a transient world. Data is everywhere, on site, in the cloud, in flight, and on remote devices. They're contending with multiple generations of data and new and different workloads. Well-funded bad actors are using ransomware and other threats to take organizations, infrastructures, and data hostage, all of which are creating what I call IT collision, putting more pressure on often siloed IT and security teams who are entrusted to protect data while moving to the cloud. Upstarts, point solutions, and companies built through piecemeal acquisitions only create more silos. Customers look to us as a proven and trusted partner to help them on their journey. For 26 years, Commvault has helped solve these hard problems and provided customers with peace of mind that their data is secure and readily available. That's why government agencies that demand the highest security and capabilities, like the US Coast Guard, the US Air Force, and Spain's Ministry of Justice, all chose Commvault for their data protection needs. Second, we build elegant, world-class solutions to these hard problems. We do this for any workload and any customer environment, one provider, one platform, for a multitude of data management needs. Our flexible architecture and single pane of glass removes the rigidity and complexity in their systems. Additionally, as many of our customers straddle both on-prem and cloud environments, they need a solution that can flex and scale to meet their evolving needs. Having moved several exabytes of customer data to the cloud over the past few years, we enabled this transformation. It is our competitive advantage. For example, in Q4, we displaced the incumbent vendors a legacy and an upstart, and welcomed Trinca Thierry, one of the world's largest shipbuilders, to our roster. They chose us to protect their on-prem workloads and thousands of VMs, migrate their Office 365 mailboxes to the cloud, and provide cloud-based immutable copies of their data against ransomware, all through our unified platform. And speaking of ransomware, when customers are staring down an unfortunate attack, our teams are there to help them get back to work. For example, When a Fortune 500 materials company was hit by a global ransomware attack, it was us that alerted them, not only did we save their data, but it opened the door to an expanded relationship as it was the only provider to meet the company's ransomware, multi-cloud, automation, and integration needs. But the third, and probably the most important reason I believe it is our time, is our razor-sharp execution. Over the past two years, We've delivered consistent revenue growth while accelerating our transition from perpetual to subscription software. We built a world-class SaaS franchise that has surpassed 50 million in ARR. We self-funded this while delivering 800 basis points of margin expansion. And we've gone from 9 to 29 in our pursuit of the rule of 40. This is definitive proof we are a well-executing company and is why I believe it is our time. Now, let me take a moment to discuss our portfolio. Today, our software, combined with Metallic, offers customers the unified solutions they need to address the complexity and collision of systems, workloads, and competing IT and security priorities. They shouldn't have to choose unnaturally between on-prem software or SaaS. Depending on where they are in their journey and their various workloads, they will need both. We're the only company that provides them software and SaaS at scale with the flexibility they require. For example, an existing Commvault customer, a multinational software and services provider, recently expanded their on-prem data management capabilities across their entire footprint and added Hyperscale X and Metallic to accelerate their cloud transition. We're now helping them protect thousands of virtual machines, Kubernetes workloads, and more than a petabyte of data in Azure. And they're doing it with one unified platform. And that is why we win. This is the power of AND. And this is showing up in the financials. This quarter, we saw 80% year-on-year growth in the number of customers with more than one product, which drives higher ASP, higher lifetime value, and higher recurring revenue. This is why we are bullish. We've put in the hard work, and we're ready to lean into our future as the cloud data management company. Before I turn the call over to Brian to discuss our results, I want to recognize him and the announcement we made today. Brian has enabled us to build a solid foundation we stand on today as a company. On a personal note, his counsel to me, the leadership team, and the board has been invaluable, and we all wish him well. Gary Merrill's appointment as our new CFO reflects the deep bench of talent here at Commvault. Gary has held several senior roles at Commvault, including Chief Accounting Officer, and most recently as Chief of Business Operations. Importantly, Gary has been leading our transformation initiatives that allow us to build a modernized business platform and positioned us for accelerated growth. Now, I'll turn the call over to Brian.