Commvault Systems, Inc.

Hello and welcome to the Commvault Q3 fiscal year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. And if you would like to ask a question during this time, simply press star one on your telephone keypad. I will now turn the conference over to Mike Melnick, head of investor relations. Please go ahead.

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 risk, 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 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, and thank you for joining us today. I am pleased to report our Q3 results exceeded expectations, including double-digit year-over-year growth across our most important KPIs. By our own metrics, this was an exceptional quarter. We also set the stage for the future by introducing market-leading innovation with CompoCloud, our revolutionary platform for cyber resilience. Some financial highlights include total revenue increased 11% year-over-year to $217 million. This was driven by a 31% increase in subscription revenue, which now represents more than half of our total revenue. Total ARR, the primary metric we use to measure underlying growth, grew 17% year-over-year to over three-quarters of a billion dollars. Subscription ARR grew 29% year-over-year to 571 million and is now over 75% of total ARR. SAS ARR increased 77% year-over-year to 152 million. We expanded operating margins by 180 basis points year over year while continuing to repurchase shares. These results reinforce that Commvault's products and services are in more demand than ever, especially as companies grapple with how to keep their data secure, compliant, and resilient in a world increasingly under threat of cyberattacks. For two years now, we've discussed how the volume, intensity, and sophistication of cyberattacks would require a radically different approach to cyber resiliency. Gone are the days when perimeter security alone would suffice. It's just a matter of time until the bad actors get in. So rather than just looking at prevention, CIOs and CISOs alike are putting a heavy emphasis on recovery and resilience. This transition has fueled the most important pivot in our 27-year history. In November, we introduced Commvault Cloud powered by Metallic AI. This platform brings together the best of all worlds. Industry-leading data protection combined with data security, data intelligence, and recovery. Commvault Cloud offers the fastest, most reliable recovery of any solution on the market today. With our platform, data can be restored from anywhere to anywhere, rapidly, reliably, and at massive scales. The platform provides AI capabilities, giving customers automated and predictive recovery, threat intelligence, and operational efficiencies to deliver true cyber resilience. No longer will organizations need to make unnatural choices between SaaS and other data center workloads. With our platform, we support more workloads than any other vendor in our space, and we do all of this at the lowest total cost of ownership. We scaled the platform, integrating with major hyperscalers, as well as leading cybersecurity and AI companies like Avira, Darktrace, Databricks, Microsoft Sentinel, and Palo Alto Networks, among others. I'm pleased to share that customers, partners, and industry analysts have been raving about it. For instance, one customer told analyst firm Enterprise Strategy Group, quote, we're a highly regulated industry. Commvault Cloud was the only solution we found that gives us the flexibility and assurance that satisfied our auditors. Because of Commvault Cloud, I can assure our leadership team that we are protected and we all sleep better at night, end quote. IDC Research Vice President Phil Goodwin said, quote, this announcement realigns Commvault's products to meet customer preferences and sets the company on a path to be very competitive in cyber resilience, end quote. And we continue to introduce major innovations in the platform that solve critical customer challenges. For example, with our clean room recovery offering, we are closing the gap that exists between incident response planning and readiness. Our new clean room recovery capabilities enable customers to thoroughly and cost-effectively test their recovery plans. It also provides them with a safe, on-demand environment to recover. It is this kind of groundbreaking innovation that sets us apart from the competition and helps us take share and land new business. In fiscal Q3, we added another 500 subscription customers, bringing our total to almost 9,000. Subscription customers now represent well over half of our total active customer base. A couple of examples include a large state agency that detected security gaps with its incumbent vendor, This new customer turned to Commvault for immutable air-gapped ransomware protection, anomaly detection, and an improved cyber resilience posture. And we also helped the Fortune 500 capital equipment company eliminate its patchwork of vendors and move their workloads onto our unified platform. This allowed them to modernize and improve their cyber resilience posture, better protecting them from ransomware with a lower total cost of ownership. To expand our perspective and keep us at the forefront of innovation, We also established a Cyber Resilience Council comprised of security visionaries from top cyber, cloud, and government organizations. The council would advise on security trends and cyber threats, which will shape product development, strategy, and partnering opportunities. It is chaired by Melissa Hathaway, a thought leader in cybersecurity and digital risk management who served in two presidential administrations. We're two months away from closing our fiscal year, and I couldn't be more excited about our momentum as we approach fiscal year 25. With that, I'll turn it over to Gary to discuss our results. Gary?