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 First Quarter Fiscal Year 2026 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 one on your telephone keypad. If you would like to withdraw your question again, press the star one. I would now like to turn the conference over to Mike Melny, 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 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?

Good morning, and thank you for joining today's call. Commvault had a tremendous start to our fiscal year. Some highlights in the quarter include total ARR grew 24% to 996 million. Subscription ARR grew 33% to 844 million. Total revenue grew 26% to 282 million. Subscription revenue increased 46% to 182 million, and we achieved 47 on a rule of 40 basis. Our execution has never been better across the business. We continue to see hyper-grow with our SaaS platform. SaaS ARR soared 63% to 307 million, and in Q1, we surpassed 8,000 customers. And we're set to surpass our 330 million ARR target well ahead of schedule. Those stats also speak to our overall land and expand business. In fact, in Q1, across software and SaaS, we had our best land and expand quarter ever. A few notable wins include Honeywell, Equifax, U-Haul, NTT Data Services, and insurance group, Chow Sir Lloyds. Additionally, we've seen tremendous success in emerging routes to market, including cloud marketplaces. During the quarter, we achieved triple vision growth in marketplace transactions with multiple six-figure and set seven-figure deals. And lastly, in terms of execution, we posted healthy growth across geographies, industries, and customer segments, from enterprise to SMB. Jen will share more details about this later. None of this would have been possible without the trust of our customers and partners and the hard work and dedication of our team members globally. Thank you all. The strength we demonstrated in Q1 provides us with a solid foundation for the rest of the fiscal year. As we reported in previous quarters, there are three critical drivers that continue to underpin our long-term sustainable growth. First, the cyber resilience market is booming. As CIOs and CISOs alike strive to keep their businesses operating continuously in a world of relentless threats and attacks, Commvault is front and center in this market, and we continue to see healthy growth in our engagement with CISOs. Commvault's offerings uniquely fill the preparedness gap that security and IT teams are so concerned about today. CISOs can enhance resilience by proactively assessing risks, scenario planning, and running simulations as part of our platform. That's what we do, and we do it better than anyone else. Case in point, we continuously grow with our clean room recovery offering that enables customers to test their resiliency in good times so they're prepared for the hard times. In Q1, a government institution in the Middle East chose Commvault Cloud and Clean Room Recovery to regularly test their cyber preparedness. The customer also added AirGap Protect, Active Directory, and Cloud Rewind for enhanced security and rapid recovery following an outage of cyber attack. This quarter, we brought cyber preparedness to a new level with the introduction of Recovery Range. This hands-on in-person experience enables security and IT teams to simulate the pressure of real-world attacks in a setting that models their own production environment. And like other simulations, defenders can practice their responses, recovery, and put their preparedness skills to the test. Our second critical market driver is the breadth of our partner ecosystem. Q1 was a phenomenal quarter for Commvault in terms of extending our reach with partners. In addition to doubling down on cloud marketplaces, we announced major partnerships across the ecosystem. We formed a strategic alliance with Deloitte to help end prices around the world, fortify the defenses, and swiftly recover from outages and cyber attacks. We took our partnership with CrowdStrike to the next level, announcing an expanded collaboration that brings together their elite incident response services with our industry-leading recovery expertise. These services help customers improve readiness, respond faster, and achieve cleaner recoveries. From the main stage of HPE Discover Conference, HPE and Commvault announced a strategic partnership to deliver advanced cyber resilience, data protection, and disaster recovery capabilities for enterprise hybrid cloud environments. Lastly, in partnership with Kindle, we announced incident recovery services. This holistic solution helps customers mitigate risk, avoid the high cost of downtime and regulatory fines, improve cyber resilience, and enable continuous business in the face of cyber threats. And finally, our third driver is our market-leading innovation, which continues to receive major accolades. For the 14th consecutive time, Commvault was named a leader in the Gartner Magic Quadrant for backup and data protection platforms. In Gartner's critical capabilities reports, we were ranked number one in five out of six use cases, including multi-cloud and SAS, and received the highest rating for the AI and ML critical capability. Additionally, this year, Gartner recognized Commvault as a sample vendor in the Gartner 2025 height cycle for data security technologies. In Q1, Commvault also won the Outstanding Cyber Resilience Award from Cyber Defense Magazine. We will continue to innovate so our customers can address their most critical resilience challenges. Protecting AI data is part of that. At the Gartner Security and Risk Management Summit in June, panelists reported by 2028, 25% of enterprise breaches will be traced back to AI agent abuse from both external and malicious internal actors. To directly address threats posed by AI and to further advance data security, Commvault recently announced its intent to acquire Satori Cyber, a data and AI security company. This strategic acquisition will add powerful capabilities that strengthen Commvault's data security offerings and empower customers to use AI in a better governed and more responsible way. The transaction is expected to close later this quarter, so we'll share more on our next earnings call. The bottom line, we have an industry-leading cyber resilience platform, an aggressive AI-minded innovation roadmap, and the proven execution customers rely on to keep their businesses uninterrupted. We hope you can join us in New York City at Commvault Shift on November 11th and 12th as we usher in a whole new era of cloud-native and cyber resilience readiness. Now, I'll turn it over to our Chief Financial Officer, Jen Derico, to discuss our results.