Financial Data and Key Metrics Changes - Subscription revenue grew 30% to $206 million, driven by a record addition of 700 new subscription customers [3][12] - Total revenue increased 19% to $314 million, with a 22% growth in term software revenue to $119 million [12][13] - Subscription ARR rose 28% to $941 million, with SaaS ARR increasing 40% to $364 million [12][14] - Gross margins improved 100 basis points sequentially to 81.5% [15] - Non-GAAP EBIT was $61 million, reflecting a margin of 19.6% [15] Business Line Data and Key Metrics Changes - SaaS revenue saw a robust 44% increase, contributing significantly to overall subscription revenue growth [12] - Term software transactions over $100,000 grew 25%, indicating strong demand from large enterprise accounts [13] - ARR from identity resilience offerings doubled year over year, highlighting growth in this segment [8] Market Data and Key Metrics Changes - Commvault achieved AWS resilience competency in the recovery category and was named the 2025 AWS Global Storage Partner of the Year [9] - The company is a launch partner for the AWS European Sovereign Cloud, addressing regional data sovereignty needs [10][11] Company Strategy and Development Direction - Commvault is focusing on innovation through the Commvault Cloud Unity Platform, which integrates data security, identity resilience, and cyber recovery [4][10] - The company aims to capitalize on the growing demand for cyber resilience in an AI-driven, hybrid, and multi-cloud environment [3][10] - A cost optimization program was initiated to align the cost structure with evolving business needs [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, citing strong customer engagement and adoption [11] - The company anticipates solid results for the year, reflecting leadership in the market and customer trust [11] - Management noted that the business is in a good place, with expectations to outpace market growth [27] Other Important Information - The company repurchased $41 million of stock during the quarter, with a year-to-date total of $187 million [16][19] - Free cash flow for Q3 was impacted by the timing of collections and an additional payroll cycle, but is expected to normalize in Q4 [16][24] Q&A Session Summary Question: Free cash flow and accounts receivable increase - Management explained that Q3 typically sees pressure on free cash flow due to sales cycles, with over 60% of deals closing in the last weeks of the quarter [22][24] Question: Long-term growth narrative and TAM expectations - Management refrained from discussing guidance beyond the fiscal year but acknowledged the total addressable market (TAM) growth expectations [25][26] Question: Currency impact on revenue and ARR - Currency was in line with expectations for revenue, while ARR guidance is provided on a constant currency basis [32][34] Question: SaaS NRR and customer acquisition - Management noted that the increase in new SaaS customers does not immediately reflect in NRR, as those dollars do not show up yet [53][54] Question: Unity platform impact on SaaS growth - The Unity platform is expected to enhance customer capabilities and facilitate cross-selling, although it is still early in its adoption [91][92] Question: Term duration and ARR expectations - Management indicated that longer duration deals impacted term ARR, but emphasized the importance of looking at annualized performance [108][109]