Commvault Systems, Inc.

call 2026 earnings conference call all lines have been placed on mute to prevent any backward 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 then the number one on your telephone keypad to withdraw your question press star one again i would now like to turn the conference over to mike melnick vice president 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 statements. 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?

Good morning, and thank you for joining us. Q3 was another solid quarter for Commvault. We reinforced our position as an innovation leader and garnered accolades from partners and industry analysts. Some financial highlights in the quarter include subscription revenue grew 30% to $206 million, This was fueled by a record land and expand quarter with the addition of 700 new subscription customers. Subscription ARR increased 28% to $941 million. SaaS ARR increased 40% to $364 million. And we achieved the rule of 40 with a healthy balance between growth and profitability. Our momentum in Q3 and year-to-date reflects the growing need for next-generation cyber resilience. In an AI-driven hybrid and multi-cloud world, resilience cannot be reactive, manual, or fragmented. It needs to be continuous, always on, and unified through a single control plane. Commvault uniquely delivers this innovation. I'm proud to share that in Q3, we were awarded our 1600th lifetime patent. I want to thank our engineering and IT teams for their continued commitment to excellence and innovation focused on customers. At our shift event in November, we took innovation to the next level with a Commvault Cloud Unity platform release. Unity brings together data security, identity resilience, and cyber recovery on one platform, all enabled by the metallic AI fabric. With Unity, customers are now equipped to drive their res ops or resilience operations. ResOps is a discipline that unifies operations, security, and infrastructure across the business. By bringing these silos together, organizations can plan, prepare, and recover from a disruption or cyber attack. Customer, partner, and industry feedback has been overwhelmingly positive. Dave Novak, Deloitte's Cyber Resilience Lead, said, The Commvault Cloud Unity platform brings these elements together in a way we don't see elsewhere in the market. We're pleased to team with Commvault to help joint customers respond faster, reduce risk, and confidently adopt AI and cloud at scale while advancing resiliency. IDC further validated this approach, stating, we believe ResOps has an opportunity to resonate with customers as it is concise with powerful implications and operational value. ResOps is a fundamentally different approach from what legacy vendors provide today. Resilience in the age of AI requires us to, one, continuously secure data at the source and monitor for anomalies. Two, control the identities, human and non-human, that access and use the data autonomously. And three, predictably recover data, applications, and operations at massive scale with the lowest total cost of ownership. Let's take a moment to discuss each, starting with data security. As enterprises embrace AI and move to the cloud, they must also grapple with evolving and more sophisticated attacks. By combining Commvault's metallic AI fabric with our multi-point threat scan, synthetic recovery, and clean room recovery offerings, customers can secure data at the source, identify, analyze, and quarantine suspicious files, monitor for anomalies, and and conduct recoveries with precision so they're ready for an inevitable attack. Case in point, by embracing our threat scan and risk analysis capabilities, UNC Health, a longstanding customer, is now able to scale its security with its data growth, saving time, reducing risk, supporting compliance, and advancing cyber resilience. Next, let's talk about identity resilience. According to CrowdStrike, Approximately 80% of breaches involve compromised identities. Attackers don't start by encrypting data. They compromise valid credentials and escalate privileges, putting identity at the center of cyber risk. Commvault Cloud's growing identity resilience capabilities enable enterprises to easily track and mitigate unauthorized or accidental changes to identity systems like Active Directory, Entry ID, and Octa. As Eric Baer of Jazwares, a Berkshire Hathaway company, explained, Commvault's innovation with identity resilience will allow us to detect and roll back malicious identity changes as they happen so that we can maintain reliable authentication and access control while strengthening our overall cyber resilience. In Q3, hundreds of customers embraced our identity resilience capabilities. An ARR from Just, our Active Directory offering, has more than doubled year over year. In just two years, it has become one of our largest SaaS offerings. And finally, we cannot discuss resilience operations without addressing recovery, particularly for cloud-native and cloud-bound enterprises. In Q3, we saw accelerated momentum with our cloud-native offerings, including Plumio. For example, Clarity, a pioneer in AI-driven predictive health, chose Plumio to safeguard its sensitive AI data that fuels next generation risk prediction models. Our ongoing innovation with Clumio also speaks to our longstanding collaboration with Amazon Web Services. In Q3, we achieved AWS resilience competency in the recovery category, and we were named the 2025 AWS Global Storage Partner of the Year. Additionally, GigaOM named Commvault a leader in its cloud data protection radar. Commva Cloud also supports recovery of massive AI workloads and pipelines like object stores, data lakes, analytics platforms, and vector databases. In Q3, we announced a new partnership with Pinecone that will bring greater resilience to the vector databases within enterprise AI stacks. Delivered via Commva Cloud, the solution will support Pinecone deployments across AWS, Hasher, and Google Cloud. It's targeted for general availability in Q2 of calendar 2026. We believe that AI is an emerging tailwind for us. It dramatically increases the volume of data that needs to be protected, introduces new threats that need to be addressed, and requires a solution that brings resilience to the services, models, and databases that power AI. Our ComboCloud Unity platform is ideally suited to help customers address these evolving AI requirements. I'd be remiss if I didn't discuss our focus on data and cloud sovereignty. Over the years, we've always met our customers' evolving needs, including their data sovereignty requirements. Now, we're taking it a step further by supporting regional sovereign clouds. In December, we announced that Commvault is a launch partner for the AWS European Sovereign Cloud. Together, our plans are to provide European organizations with a secure solution that is purpose-built for cloud, delivering cost-optimized resilience at scale for AWS customers. We're working closely with other partners on cloud sovereignty as well. This is an emerging space, and we'll have more to say about this soon. Let me close with this. This quarter, we continue to capitalize on strong market growth through innovation leadership and execution excellence, and we're seeing record customer engagement and adoption. We believe Commvault Cloud Unity is the breakthrough platform customers need in the AI era. And we anticipate we will finish the year with solid results that reflect both our leadership in the market and the trust our customers place in Comvax. Thank you. Now I'll turn it over to our Chief Accounting Officer, Danielle Abrahamson, to discuss the financial details. Danielle?