Commvault Systems, Inc.

Thank you for standing by. I would like to welcome everyone to the Commvault Q2 FY 2025 Earnings Conference Call. I would now like to turn the call over to Mike Mellick, Head of Investor Relations. Please go ahead, sir.

Good morning and welcome to our Earnings Conference Call. Before we begin, I'd like to remind you that statements made on today's call will include forward-looking statements about Commvault's 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 a discussion of the risks and uncertainties that could cause the company's 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. Thank you again for joining us. Now I'll turn it over to our CEO, Sanjay Merchandani, for his opening remarks. Sanjay?

Thanks, Mike. Good morning, and thank you for joining today's call. Q2 was an exceptional quarter, with momentum once again accelerating across all our primary KPIs. During the quarter, total revenue increased 16% to $233 million, our fourth consecutive quarter of double-digit revenue growth. Total ARR accelerated 20% to $853 million. Subscription ARR rose 30% to $687 million. SAS ARR jumped 64% to 215 million and now represents 25% of our total ARR. And free cash flow grew 34% to 54 million, with 97% of that free cash flow returned through share repurchases. It has never been clearer that what we do matters. In an age of nonstop threats and cyber attacks, organizations need to be ready. And when that moment comes, they need to be able to quickly recover without missing a heartbeat. This is even more important in the cloud-first world that we live in today. Let me say more on that. IDC reported that 73% of all new data will be stored in the cloud, and that spending on public cloud services is expected to double in the next four years. However, Traditional static approaches to business continuity and outdated point solutions are grossly inadequate for today's dynamic digital cloud-first enterprises. This is why we've been innovating and re-envisioning a world we call continuous business, where resilience and security are implicit. It is built on three fundamental principles. First, to be truly resilient, Organizations must own their cloud-first environment and be able to scale it, shrink it, manage it, and secure it any way they want. After all, if their business is in the cloud, then keeping their cloud resilient is their business. Next, multi-cloud is now universal. So customers need agility, diversity, and portability across clouds to reduce lock-in, improve their redundancy, and embrace scalability to meet their business needs. And third, one size does not fit all in today's dynamic environment, so that platform must seamlessly enable resilience across all its clouds, environments, regions, accounts, applications, and workloads, and manage it all with a true single pane of glass. Compile Cloud is the only platform that can do all of this while providing the breadth to support the broadest workloads, clouds, and applications, as well as the depth to go deep with Cloud First recovery capabilities. At our shift event earlier this month, we announced our next generation of Cloud First technology innovations and partnerships to offer a new state of always-on business availability and cyber resilience for the modern Cloud First enterprise. While many competitors are playing catch-up in terms of the workloads we support, we introduced Commvault Cloud Rewind, a truly unique offering that transforms and simplifies recovery in the cloud. This technology integrates capabilities from our Pranix acquisition and leverages automation to enable customers to discover, map, and recover not just their data, but their cloud applications, often in minutes. Cloud Rewind also works across clouds, so breath is the name of the game. We're hearing great things from our customers. Frontale, a company steeped in e-discovery and digital forensic investigation, noted that, quote, New capabilities like resource discovery, dependency mapping, and cloud reconstruction not only ensure our data is safe, but also pave a clear path to recovery. With Cloud Rewind's simple and efficient cloud dashboard, recovery is quick and reliable, drastically reducing cyber recovery complexity. These advancements are just one more reason we trust Commvault with our cloud. In addition, we announced that our platform will help automate the manual and error-prone process of recovering Active Directory from a ransomware incident. Active Directory is the anchor around which modern identity access management architectures are built. It is often targeted by bad actors because it controls access to an organization's most critical assets. Commvault Cloud will automate and orchestrate the complex steps required to recover and configure Active Directory from a previous good state to improve cyber resiliency. We expect to release an enhanced Active Directory offering shortly. We also announced at shift deep integrations and expanded relationships with strategic cloud partners, AWS and Google Cloud. We're bringing the breadth of the Commvault Cloud cyber resilience platform to AWS customers. And with our recent Clumio acquisition, we're bringing innovative recovery capabilities to Amazon S3. This depth is paramount as many organizations rely on S3 to store large data and growing AI data sets. With Google Cloud, we're offering comprehensive data protection and cyber resilience capabilities to Google Workspace customers. This includes Gmail, Google Drive, and Share Drives. No email left behind. And all of this, of course, complements what we already do today with Microsoft Azure and Oracle Cloud. Our multi-cloud strategy is simple. meet customers where they are, and give them the cloud-first resilience capabilities they need for continuous business. And we're serious when we say no workload, no cloud, and no application left behind. For example, Constellation Energy, the nation's largest producer of clean, emissions-free energy, chose our Commvault Cloud Platform to advance their cyber resilience capabilities, enhance operational efficiency, and further address regulatory requirements across its multiple clouds and on-premise environments. This quarter, we also teamed up with Pure Storage to help financial services customers tackle stringent compliance regulations, starting with EU's DORA regulation that takes effect in Jan 2025. Our joint offering is focused on two critical areas. First, risk management, including protection, detection, response, and recovery. Second, operational testing. Together with Pure, we deliver the ability to continuously test cyber recovery in secure, isolated environments like clean rooms. In closing, our unique approach to cyber resilience is resonating in the market. Our ability to democratize cloud and on-prem workloads natively has allowed us to land new customers and expand with our existing base, be it SaaS or software. All of this gives us confidence that we can continue to deliver solid financial results. With that, I'll introduce our new CFO, Jen Dorico. Jen, we're happy to have you on board. Over to you to discuss our results and outlook for fiscal year 25.