Commvault Systems, Inc.

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Commvault 3rd Quarter Fiscal Year 2025 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. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question again, press the star 1. I would now like to turn the conference over to Michael Melnick, Head of Investor Relations. You may begin.

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. Q3 was another record-breaking quarter for Commvault. Total revenue increased 21% to $263 million. Subscription revenue grew 39% to $158 million. Total ARR improved 21% in constant currency. SAS ARR jumped 75% in constant currency, and we did this profitably, recording non-GAAP even margins of 20.8%. At a time where cyber resilience and data security could not be more top of mind for CISOs and IT leaders, we saw a strong uptick in transaction volume, impressive growth in our land and expand business, and an acceleration in our organic growth rate. As we look to the future, We believe that Commvault is strategically positioned to succeed and win. This is bolstered by three fundamental growth drivers. First, the cyber resilience market has never been more dynamic or full of promise. We're uniquely positioned to capitalize on this. Today, customers face unrelenting cyber attacks, a shifting regulatory landscape, and the exponential growth of data from cloud native and AI generated applications. To deal with this, enterprises need a unified resilience platform that spans their hybrid multi-cloud environment. This is where Commvault thrives. Our Commvault cloud platform is enterprise-grade and enables customers to easily protect and secure vast amounts of data, including AI and ML data sets, across clouds. And given most customers are utilizing multiple clouds, we're innovating across all major providers. During the quarter, we announced that Commvault Cloud Platform will be available to AWS customers. We also introduced advanced cloud backup and site recovery capabilities for Google Workspace. This builds on what we already do today with Microsoft Azure and Oracle Cloud. With respect to cloud, we're also innovating in unique ways to address critical recovery challenges. For example, one of the most complex and time-consuming steps to recover a business after a cyber attack is rebuilding and validating mission-critical cloud-native applications. Previously, this could take weeks or months. Today, with Cloud Rewind, which includes technologies from our Appranix acquisition, customers can do this in a fraction of the time. ARR associated with this offering has more than doubled since we acquired Appranix a few months ago. Cloud Rewind has become a highly differentiated capability within our platform. Which brings us to the second fundamental growth driver, the need for our game-changing cyber resilience offerings. They're unlike anything on the market, and they make our industry-leading platform even stronger. Today, customers demand predictability, fast recoveries, and solutions to address the latest threats. That's what our next generation offerings do. Security is built in, not bolted on. We're out-innovating the competition on every level. Let me give you an example. To be truly resilient, you need a predictable recovery plan that can be automated and used at a moment's notice. And you must be able to practice that recovery in good times so that you can be ready for the bad times. This is what we uniquely provide with ThreatScan and CleanRoom Recovery, both our core offerings on our Commvault cloud platform. With CleanRoom, customers love the sense of security it provides. Emerson Electric commented, Clean room recovery not only enables organizations to test their recovery plans often, but know that if they're hit, they can be resilient. In terms of addressing the latest threats, we've just announced that we will be offering customers with a full and automated recovery of Microsoft Active Directory. This is absolutely critical. Active Directory controls authentication and access to critical business systems for hundreds of millions of users worldwide. Because it is so essential, it's also become a primary target for cyber attacks. In fact, research shows it is the target in nine out of ten cyber attacks. If hit, your business will come to a halt. Starting this spring, we plan to address this threat in transformative ways, making it super simple for organizations to recover their entire Active Directory systems. And even better, customers will be able to do this with Commvault Cloud, that today protects more workloads than any other vendor. Nobody else offers this capability on one platform. Customers are thrilled. A spokesperson for the Nevada Department of Transportation said, quote, Compulse innovation with Active Directory will provide us with the confidence and peace of mind that not only can we recover our Active Directory data, but we'll be able to do so quickly and accurately, end quote. In just one year since launching our initial Active Directory capabilities, we've seen a meaningful uptick in adoption. With our expanded offering, we're even more excited about its potential. Another innovation that has customers talking is Clumio Backtrack, which provides a revolutionary way to expedite the recovery of massive Amazon S3 datasets. Many companies are storing AI and ML datasets in S3, so having the ability to recover that data is paramount. we unveiled new automation that can rapidly revert billions of objects to a specific version at a specific point in time. Nobody else does this. We just announced backtrack at AWS reInvent and look forward to sharing more in the coming quarters. These cyber resilience offerings bring even more depth and breadth to our platform. They appeal to CISOs and IT leaders alike, and they lead to the adoption of net new workloads while fueling momentum around land and expand opportunities. This brings us to our third growth driver, a strong go-to-market motion combined with an incredible partner ecosystem to scale our business globally. The strategy that we put in place to segment and refine our go-to-market motion over the last several quarters are paying dividends. Our cyber resilience marketing message is resonating with customers, and we're seeing record inflows and pipeline growth. And in Q3, we saw increased transaction volumes, strong close rates, accelerating customer numbers, and robust expansion activity. These contributions were balanced across geographies, verticals, and market segments, from seven-figure software transactions to a record number of velocity-based fast wins. The result was another double-digit increase in Salesforce productivity in Q3. These advances are further augmented by our enhanced and growing partner ecosystem, which enables us to extend our reach globally. In Q3, we saw solid contributions from alliance partners like Hitachi, HPE, Kindrel, and Dell. This included a large enterprise win with a healthcare provider that combined Compulse Hyperscale X on Dell hardware with our AirGap Protect offering for immutable protection of the customer's most critical data. We also saw improved momentum with the hyperscalers as the number of marketplace transactions more than doubled. With compliance in mind, we offered a new partnership with Pure, and we're actively working to strengthen integrations with leading AI providers like Databricks. With respect to AI, we've prioritized investments in critical AI capabilities that can proactively identify anomalies, detect threats, and identify ideal recovery points to bounce back after an attack. These capabilities are pivotal to recovery and resilience. Let me take a moment to summarize the growth drivers that position us for ongoing financial success. First, Cyber resilience has shaped the addressable market opportunity, and the emergence of new use cases has increased the size and accelerated the growth potential of the market. Second, in this more complex and dynamic hybrid cloud world, point products don't cut it. Our combo cloud platform offers customers depth of coverage and breadth of offerings with exceptional choice and flexible consumption. Third, maintaining our relentless focus on execution is critical to our success. This flows through all layers within our organization and extends across our growing partner ecosystem. Our year-to-date financial performance proves that now more than ever, we need to continue these investments to further accelerate our growth profile. In closing, it's no longer enough to just recover your data. Today, it's all about enabling continuous business for our customers, from how they prepare for the inevitable disruption to how quickly they get their business up and running following an attack. This is what matters most for a modern hybrid and multi-cloud enterprise, and it is what we enable today. Now, I'll turn it over to our Chief Financial Officer, Jen DiRico, to discuss ourselves. Jen?