Commvault Systems, Inc.

Good day and thank you for standing by. Welcome to the Commvault Q1 fiscal year 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Mike Melnick. Please begin.

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's CEO, and Gary Merrill, Commvault's CFO. An infographic with key financial and 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 risks and uncertainties that could cause the company's actual results to be different from those contemplated in these forward-looking statements. Commvault does not assume any obligation to update these statements. During the call, Commvault's financial results are presented at a non-GAAP basis. A reconciliation between the non-GAAP and GAAP measures can be found on our website. Thanks again for joining. Now I'll turn the call over to Sanjay for his remarks. Sanjay.

Good morning. I'm pleased to share Commvault's record Q1 results. Our subscription software and SaaS strategy is working as customers continue to prioritize data management and protection solutions as they embrace the cloud and hybrid IT. This is reflected in our results, which I'll be discussing in constant currency. Total revenue was up 13% year over year. Software and products revenue increased an impressive 17%. Metallic is starting to contribute meaningfully to revenue, and we once again delivered profitable growth. Total ARR, a key indicator of our future, continues to be strong, growing 16% year over year. Combined, subscription and SaaS ARR grew approximately 50% year over year, and now represents 64% of our total ARR. And we have two and a half times more subscription and SaaS customers than we had two years ago. These are proof points that our strategy is working and that we are the trusted partner for our customers' large multi-cloud environments. I'd like to share a little bit, a little about why I think we are poised to capitalize on the massive opportunity ahead of us. The past few years have been hard on IT professionals and will continue to be challenging with rampant data proliferation, a rise in security threats, increasing costs, and resource limitations. As executives prioritize IT projects in this environment, data protection will remain top of mind, especially as mission-critical hybrid solutions continue to grow in the enterprise. This proliferation of data across multiple environments and vendors is what causes data to be more vulnerable. Organizations are looking to consolidate their data management solutions and reduce complexity and costs while protecting their most precious assets. Nobody has the workload breadth and depth to manage this across the entire data estate like Commvault. We enable this today. Through the power of AND, which offers the best software and SaaS, we provide elegant, industry-leading cloud data management capabilities So customers have the ease and flexibility to use one or both offerings to meet their unique and ever-changing needs. From a single pane of glass, customers can manage their on-prem workloads like virtual machines, containers, mission-critical legacy workloads, and SaaS applications like Office 365 and Salesforce. In fact, approximately 50% of our SaaS customers also use a Commvault software product. Faced with the relentless threat of ransomware attacks, more and more customers are mitigating risk by replacing their multiple point products with Commvault's integrated software and fast solution for air-gapped ransomware protection. Within months of acquiring Trapex, a solution for advanced threat deception, we reimagined the product and introduced it as ThreatWise with end-to-end proactive and responsive capabilities to further strengthen our customers' ransomware protection. The product is currently available in early access via Metallic. Our software and SaaS offerings continue to garner industry accolades and strong ratings for cyber resiliency, governance, and Kubernetes support. In fact, GigaOM recently named us as a frontrunner for Kubernetes and an outperformer for hybrid cloud in its latest radar reports. It is our continuous innovation that solidifies our position as an industry leader, and it is our robust partner ecosystem that enables us to reach more customers globally. In late June, we jointly announced a strategic partnership with Oracle to offer Metallic globally on Oracle Cloud Infrastructure, OCI. With this partnership, Commvault became the first enterprise backup and recovery SaaS provider in the Oracle ISP accelerator program. This will give Oracle customers the performance, security, and trust they need to accelerate their data journey to OCI while leveraging Metallic to protect their most mission-critical workloads on-premises and in the cloud. We expect this partnership to open the door to Oracle's 400,000-plus global customers. By adding native OCI integration and support, we now have industry-leading capability across all hyperscalers. With these partners, we're meeting customers where they are with our portfolio of cloud data management solutions. And we are confident this will enable us to further accelerate our growth. I will turn the call over to Gary.