“For fiscal Q4, we expect subscription revenue, which includes both a software portion of term-based licenses and SaaS, to be in the range of $160 million to $164 million.”

In context

“Jen DiRico (CFO): Thanks Sanjay. As Sanjay noted, Q3 was another excellent quarter driven by strong execution and record close rates. Our investments in growth-oriented initiatives and new product innovations are yielding positive results, as demonstrated by the acceleration in our customer additions and our organic growth rate. I want to thank all of the Vaulters that contributed to the fantastic results this quarter and year-to-date. Now I’ll discuss our Q3 results and operating metrics, followed by an update on our improved guidance for Q4 and FY25. Please note that all growth rates are compared on a year-over-year basis unless otherwise specified. Total revenue increased 21% to $263 million, driven by a robust 39% increase in subscription revenue. The growth in subscription revenue resulted from continued SaaS momentum and significant improvement in the volume of both term software and SaaS transactions compared to the prior year. Revenue from term software transactions over $100,000 increased by 18%, benefiting from a 30% rise in volume. This included more than a dozen wins over $1 million. In addition, we saw robust growth in landing new large enterprise customers this quarter, including Equinix, AXA, Vanderbilt University Medical Center, and DenizBank Financial Services. Given the breadth and depth of offerings across our platform, we are the vendor of choice to serve large complex enterprises that have mission-critical data sitting in on-premise, hybrid, and cloud environments. I also want to note that our investments around our velocity motion continue to bear fruit. We added a record number of SaaS customers this quarter. We’re pleased with this increase in volume with the small and medium-sized enterprises as we welcome the opportunity to grow with customers on their hybrid cloud journeys. Now turning to ARR, Q3 total ARR grew 18% to $890 million. On a constant currency basis, total ARR accelerated 21% to $911 million, reflecting an acceleration in our organic growth rate as well as incremental contributions from Clumio, which contributed $24 million. Please refer to the appendix of our quarterly earnings presentation to review the constant currency bridge. Subscription ARR, which includes term-based licenses and SaaS contracts, increased by 29%, reaching $734 million, accounting for 83% of total ARR. This includes $259 million in SaaS ARR, which grew 71%, continuing its hyper-growth trajectory. On a constant currency basis, subscription ARR increased 32% and SaaS ARR grew 75%. Including Clumio customers, we added over 1,000 new subscription customers, surpassing 11,000 customers worldwide, including over 7,000 SaaS customers. We continue to benefit from increased multi-product adoption among both new and existing customers. For example, we closed a seven-figure transaction with a leading global technology infrastructure company that added risk analysis, threat scan and compliance to bolster their overall cyber resilience posture. A multinational HR and workforce management group chose our Air Gap Protect, Cloud Rewind, and Active Directory to securely accelerate their hybrid cloud journey, and we closed a seven-figure deal with a national partnership of independent insurance brokers that chose Air Gap Protect, VMs, and Kubernetes to secure their cloud-first infrastructure. These are just a few examples of customers that are bypassing point solutions and top grading vendors to utilize the extensive capabilities of our Commvault cloud platform for enhanced cyber resilience in a hybrid cloud world. Existing customer expansion remains healthy with a Q3 SaaS net dollar retention rate steady at 127%, driven by both up-sell and cross-sell. SaaS ARR saw notable growth from new products such as Active Directory, Cloud Rewind, Threatwise, and other mission-critical offerings. These trends continue to support our confidence in further expansion opportunities with the newest products we announced at SHIFT. Now I’ll discuss our consistent profitability and free cash flow, which demonstrates our commitment to a responsible growth philosophy. Q3 gross margins were 82%, reflecting our accelerating mix shift towards SaaS, which represented 29% of total ARR versus just 20% one year ago. Gross margins also reflect modest dilution from the Clumio acquisition consistent with our prior guidance. Operating expenses of $160 million represented 61% of total revenue, consistent with prior quarter and prior year. Q3 operating expenses included costs associated with SHIFT in London, the onboarded Clumio employees, and our continued investments to accelerate revenue momentum which include higher commission and bonuses on a record sales result. Non-GAAP EBIT grew 17% to $55 million, and non-GAAP EBIT margins of 20.8% came in at the high end of our guidance range. Now moving to some key balance sheet and cash flow metrics, we ended the quarter with no debt and $244 million in cash, which reflects the previously disclosed purchase of Clumio. We are excited about the progress made towards integrating Clumio. It furthers our ability to go deeper in the cloud and position us to capitalize on potential AI-related opportunities. As we continue to invest in our future, we remain opportunistic around technologies that further the depth and breadth of our platform. Q3 free cash flow of $30 million was impacted by material foreign exchange headwinds and tax payments made in the quarter tied to higher than projected full-year pre-tax income. In Q3, we repurchased $32 million of stock representing 107% of free cash flow for the quarter. Fiscal year-to-date through December 31, 2024, we repurchased $135 million of stock, representing 106% of free cash flow. We still plan to repurchase at least 75% of our free cash flow for the full fiscal year. Given our strong results year-to-date combined with accelerating customer demand and a healthy pipeline, we are pleased to share our outlook for fiscal Q4 and once again raise our guidance for fiscal year ’25. For fiscal Q4, we expect subscription revenue, which includes both a software portion of term-based licenses and SaaS, to be in the range of $160 million to $164 million. This represents 35% year-over-year growth at the midpoint. We expect total revenue to be in the range of $250 million to $264 million, with growth of 18% at the midpoint. At these revenue levels, we expect Q4 consolidated gross margins to be in the range of 81% to 82%. We expect Q4 non-GAAP EBIT margins to remain in the range of 20% to 21%. Our projected diluted share count for fiscal Q4 is approximately 45 million shares. We are once again raising our outlook for the full fiscal year ’25. We now expect fiscal year ’25 total ARR growth of 19% to 20% year-over-year. We expect subscription ARR to increase in the range of 28% to 30% year-over-year. From a full year fiscal ’25 revenue perspective, we now expect subscription revenue to be in the range of $575 million to $580 million, growing 35% at the midpoint with strong contributions from both term software licenses and SaaS. We now expect total revenue growth to accelerate and be in the range of $980 million to $985 million, an increase of approximately 17% at the midpoint. Moving to our updated full year fiscal ’25 margin, EBIT and cash flow outlook, we continue to expect gross margins to be 81% to 82%. We also continue to expect non-GAAP EBIT margins to be in the range of 20% to 21%. From a free cash flow perspective, we expect full year free cash flow of $170 million to $200 million. Our revised outlook reflects foreign currency headwinds that were more pronounced in Q3 and expected to continue in Q4. As I reflect on FY25, our strong year-to-date financial performance demonstrates that our strategy is working. Our cyber resilience message is resonating, our team is executing, and our investments are paying off. Looking forward to FY26, we are currently trending ahead of the financial targets that we originally shared, and we now expect to achieve those targets earlier than our initial plan. As Sanjay noted, we couldn’t be more excited about the markets and the opportunity in front of us. The revenue-driving investments we are making have positioned us to be the cyber resilience provider of choice for enterprise businesses and have contributed to our outstanding financial performance year to date. We remain committed to investing in these growth-driving initiatives to further accelerate our momentum in FY26. Now I will turn it back to the Operator to open the line for questions.”