Commvault Systems, Inc.

Good day, and thank you for standing by. Welcome to the Commvault Q2 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'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Mike Melnick, Head of Investor Relations. Please go ahead.

Thank you, Andrea. Yes. 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 your 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 and 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 actual results to be materially different from 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. Thanks again for joining us. Now I'll turn the call over to Sanjay for his remarks. Sanjay?

Thanks, Michael. Good morning. I'm pleased to share that we delivered record fiscal Q2 results, which I'll discuss in constant currency. Software and products revenue increased 16%. Growth was driven by strength in the Americas and our continued success in winning large transactions. Our best-in-class technology continues to resonate in the enterprise, where data protection and ransomware remain top of mind. ARR growth continues to be strong, increasing 18% year over year. Combined subscription and SaaS ARR grew over 40% year over year and now represents a healthy 66% of our total ARR. Metallic continues to fuel this growth. I'll share more shortly. These results are proof that our strategy is working in three ways. First, over the past three years, we've been focused on transforming the business and have returned the company to responsible growth. Our focus on driving ARR now over 600 million gives us a predictable model for future growth. Second, our unified software and SaaS portfolio is a differentiator and a competitive advantage because customers want and need both. This is helping us land marquee customers. I'll share some examples in a minute. In addition to transitioning to a subscription software model, we organically funded and delivered a hyper-growth and world-class fast platform. As a reminder, Metallic launched commercially in October of 2020. We see this as a marker against which to measure its success, because in two years, we have achieved phenomenal growth. Metallic is a logo acquisition machine that is complementary to our software business. We ended the quarter with over 2,500 Metallic customers. In Q2, 70% of Metallic customer additions were new to Commvault. Half of those have another Commvault product, and one third have multiple Metallic offerings, reinforcing that in today's world, customers need both software and SaaS. Microsoft M365 and Metallic Recovery Reserve, part of our ransomware offering, continue to drive adoption, and our other offerings are gaining traction. Our Metallic SaaS offerings surpassed 75 million in ARR in less than approximately two years. This makes Metallic one of the fastest growing SaaS offerings in this industry. It's very clear that we're outpacing benchmarks and reinforces that Metallic will be a big part of our future. The third proof point that our strategy is working is our go-to-market execution. Through our investments in talent, and operational excellence, combined with our partner ecosystem and a lot of smart work, we have reinvigorated growth, materially improved our efficiency, and reinforced our leadership position as the number one ranked vendor in data center, cloud, and edge environments. But we're not done. In fact, I'm even more excited and confident of the opportunity in front of us because we offer elegant solutions to our customers' hard data problems in an increasingly difficult world. After all, our customers are relying on data to modernize and grow their businesses. Your data is fluid, moving from on-prem to the edge to the cloud and back again. And it is remote, fragmented, and exposed to new threats every day. As a trusted and proven provider, we offer customers a future-proof data protection strategy to ensure their data is always available. This begins before the data is compromised. After all, an organization's ability to recover from a ransomware attack or other threat is only as good as the quality of the backup, which is why we launched Metallic ThreatWise, built on the Trapex technology that we acquired in February. ThreatWise is a SaaS-delivered, intelligent early warning system that proactively surfaces unknown and zero-day threats to help ensure your backup copy is uncompromised. We believe that data security is non-negotiable, which is why it is implicit in our offerings. Commvault is the only data protection provider with these proactive and responsive protection, security, and recovery capabilities today. And customers see the value. For example, Woodward Inc., a multinational Fortune 1000 company, turned to Commvault software and Metallic to consolidate multiple data protection products to better protect its data and increase efficiencies. Commvault now handles all of the company's data in all locations while meeting its recovery point and recovery time objectives. Another great example of how customers are leveraging both software and SaaS for their data protection needs was a recent win with a Fortune 500 manufacturer. This company decided to close its global data centers and fully adopt a multi-cloud strategy. While multiple vendors, including the incumbent, vie for the business, only Commvault could deliver an elegant solution to migrate workloads to the cloud and support a zero-loss strategy all on one platform. Both examples demonstrate how providing comprehensive enterprise-grade software and SaaS data protection across all workloads and environments is a distinct competitive advantage. Now, I'll turn it over to Gary for a discussion of our financial results.