Commvault Systems, Inc.

Hello and thank you for standing by. My name is Demi and I'll be your conference operator today. At this time, I would like to welcome everyone to the Commvault second quarter fiscal year 2027 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, press star 1 again. I would now like to turn the conference over to Michael Melnyk, 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 the 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 Thank you again for joining us. Now I'll turn it over to our CEO, Sanjay Mirchandani, for his opening remarks. Sanjay?

Good morning, and thank you for joining us. Before reviewing the results, I'll take a minute to discuss the broader context. We believe that Compulse fits at the intersection of long-term market trends that are driving our momentum. Massive data growth, IT complexity, and AI accelerating innovation and risk at scale. All of this makes the need for resilience more critical than ever. Our platform would unite data protection, data security, identity resilience, and recovery. helps us win customers, deepen relationships, and meet evolving enterprise needs. Our strategy is working. We delivered solid results ahead of our guided metrics and build momentum across the business. A few highlights of the second quarter include subscription ARR grew 20% to $1.104 billion. Trash ARR grew 35% to $454 million. Subscription revenue grew 21% to $269 million, and we generated free cash flow of $71 million in the quarter. By growing at scale, expanding margins, and generating strong cash flow, we believe the combination reflects the strength of our platform and the durability of our model. And as you'll hear from Gary, we're raising our full-year outlook, which demonstrates our confidence in what lies ahead for Commvault. Before we get into that, Let's discuss the growth drivers that featured prominently in our Q2 results. First, subscription customer growth. In Q2, we added over 500 subscription customers, representing 17% growth year on year. Enterprises are prioritizing investments in cyber resilience and recovery. Customers are telling us that when disruptions occur, they must be able to operate in a state of continuous business. That's why organizations continue to move away from legacy and point solutions and embrace innovation from Commvault. Case in point, a Fortune 500 insurance carrier wanted to advance resilience and stay ahead of evolving security requirements. The customer chose Commvault over the legacy vendor in this multi-million dollar subscription deal for three reasons. One, our cyber resilience solution demonstrated exceptional time to recovery at scale, which competitors could not match. We enable the customer to consolidate incumbent vendors and other point solutions on our platform. And three, we help the customer reduce risk and complexity. This leads to our next growth driver, multi-product adoption. Today, more than half of our managed SaaS customers are using more than one offering from Commvault. This is an important indicator of the opportunity ahead. Our strategy is to add customers and deepen relationships over time. With nearly half of our managed SaaS customers using just one product, we believe significant expansion potential remains. And as our customers look to reduce complexity and risks, we see more opportunities to deliver value on our platform. We believe this land and expand motion can drive durable, long-term growth. In addition to foundational products like M365 protection and AirGap Protect, Customers are rapidly embracing a cloud-centric protection offense, like Blumio for AWS and Google Cloud, and protection for SaaS apps like Azure DevOps, Microsoft Dynamics, and Google Workspace. As a result, customers are realizing greater value as they expand with Commvault. For example, after assessing recovery objectives and cost requirements, a top 50 global asset management company expanded its portfolio and SaaS footprint with Commvault. This transaction included Clumio, operational recovery, and air gap protect. The customer realized greater storage flexibility and better TCO than its prior multi-vendor solution. In another example, an existing Clumio customer wanted to consolidate its fragmented data protection architecture. The goal? Improve visibility and recovery times while reducing costs. To support the customer's evolving needs, we signed a multi-year expansion agreement to protect workloads including M365, Hyper-B, as well as Okta and Active Directory. That dovetails into our third growth driver, which is focused on identity resilience and data security. As we've stated in previous quarters, identity is a primary entry point for attackers and a growing area of enterprise risk. Recent data shows that maybe 80% of ransomware attacks start with compromised identities. At the same time, non-human identities exponentially outnumber human identities. That's why customers are adopting our solutions to make sure that critical systems are resilient and available after an attack. For example, an existing Commvault customer, one of the nation's largest integrated healthcare systems, added our Active Directory offering across its global data centers for faster automated recovery. This was our largest Active Directory transaction to date and contributed to the ARR growth we're seeing with identity, which nearly doubled year over year. When we look at our growth drivers, the common theme is the same. Customers need to keep critical data, identities, agentic workflows, and applications protected and recoverable. This is by Commvault Trans. We're also seeing that our conversations with customers and prospects continue to evolve. They want to know how we can help them deploy AI with confidence while mitigating risks. We'll share more about the growing importance of AI resilience and cyber recovery at our upcoming shift conference in Nashville from November 10th to 12th. We will also unveil groundbreaking innovations, New Partnerships, and feature prominent AI visionaries from Anthropic, AWS, Databricks, Microsoft, NVIDIA, and others. We hope you can join us in person or virtually. Before I turn it over to Gary to discuss the financials, I'll leave you with this. We believe that AI creates opportunities to expand our total addressable market as enterprises wrestle with more data, more identities, and more agentic activity. It's also a great moment to participate in initiatives that advance resilience across the industry. To that end, we are proud to be part of Anthropix project last week. This expands our use of frontier AI models to include Mithos. Finally, we believe our relentless focus on execution will continue to deliver durable, profitable growth and strong free cash flow. This gives us the confidence to raise our folio guidance. With that, I will turn it over to Gary to walk through our results and outlook in more detail.