Commvault Systems, Inc.

Good morning. My name is Krista and I'll be your conference operator today. At this time, I would like to welcome everyone to the Commvault second quarter fiscal year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, we will have a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, again, press star 1. Thank you. I will now turn the conference over to Michael Melnick, Head of Investor Relations. You may begin.

Good morning, and welcome to our earnings conference call. I'm Michael Melnick, Head of Investor Relations, and I'm joined by Sanjay Mirchandani, Commvault's CEO, and Gary Merrill, Commvault's CFO. An earnings presentation 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 and that could cause the company's actual results to be materially different from those contemplated in the 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 opening remarks. Sanjay? Thank you, Mike.

Good morning, everyone, and thanks for joining us today. I am pleased to report our Q2 results exceeded expectations and we improved across our most important KPIs. Total ARR, the primary metric we used to measure underlying growth, accelerated 18% year-over-year to 711 million. Subscription ARR grew 32% year-over-year to 530 million and is now nearly 75% of total ARR. SAS momentum accelerated, with Metallic ARR up 77% year-over-year to $131 million. Metallic SAS net dollar retention rebounded to an impressive 130%. And we delivered improved profitability while continuing to return cash to shareholders through share repurchases. Beyond these impressive financial results, we also received numerous industry accolades, including being named the leader for the 12th consecutive time in the 2023 Gartner Magic Quadrant. We also ranked highest in six of seven categories in Gartner's latest critical capabilities for enterprise backup and recovery software solutions report. And once again, GigaOM named us a leader and an outperformer in its most recent GigaOM radar for hybrid cloud data protection for large enterprises. We're extremely proud of this recognition We're laser-focused on being a trusted partner to our customers by protecting their data from the scourge of cyber threats, significantly reducing rampant hybrid cloud complexity, and infusing AI-enabled automation to tackle new and evolving data protection and security challenges. And we're just getting started. Next week, at our Compile Shift customer and partner event, we will highlight how we are shifting from data protection to leading the charge in cyber resilience. We're going to introduce a radically new approach that empowers customers to stand up to today's nonstop and escalating cyber threats. We're bringing together what we're known for, best-in-class data protection, and combining it with exceptional data security, recovery, and AI-driven data intelligence. Cyber resilience like this has never been possible until now. The time has never been better. According to a recent IDC study, most enterprises expect an imminent attack 61% of respondents believe that data loss in the next 12 months is likely to occur due to an increasingly sophisticated attack. It's clear a new standard in cyber resilience is required, and that's what we're going to deliver. Commvault has always prided itself on delivering the best technology that customers need at the right time, case in point. Four years ago, we challenged ourselves to address an emerging need in the market, enterprise-grade cloud-native data protection as a service. We made some bold moves, disrupted from within, and took a new modern approach to launch Metallic, our industry-leading, hyper-grill SaaS platform. We vastly simplified how we secure and defend data for any workload, regardless of where it lives, and in the process, we revolutionized data protection as a service. Since then, we've gained over 4,000 customers and surpassed 130 million in ARR. And just last week, Commvault was named the leading vendor in GigaOM's cloud-based data protection sonar report. The authors noted, quote, Metallic protects a very broad range of cloud workloads that would be tedious to fully enumerate, end quote. Building on the overwhelming success of our platform, we're now taking the opportunity to apply everything we've learned in data protection and combining it with powerful new innovations in data security, AI, and recovery to deliver the most advanced cyber resilience platform in the industry. Next week at Shift, we will unveil this to the world along with some exciting new ecosystem partnerships that will enable us to transcend the category. Today's problems cannot be solved with yesterday's approach. It's time to shift how we think about resilience. We hope that you can tune into this exciting event. Now, I'll turn it over to Gary to discuss the numbers.