Hello everyone, Sanjay Poonen here. I'm excited to come to you today to talk to you about the new Cohesity as we come together in the combination with Veritas. If you look at our mission, it is to protect, secure, and provide insights into the world's data—an incredible ambition that will last us for years to come. The largest organizations rely on us for their resilience, most often it's cyber resilience from ransomware attacks, but there's also disasters—earthquake, fire, floods. Why is this important today? For two key reasons: the data in the world today is exploding, often doubling every six months, but the data is also sprawled in many different locations—private cloud, public cloud, SaaS applications, at the edge. It's complex, it's insecure, and it's often closed and very hard to get insights from. Secondly, data security is the last line of defense. As you think about nation-state actors and them penetrating physical security, network security, endpoint security, application security, the inner sanctum are those assets of your data. And today there's 20 ransomware attacks every second. Most often these attacks are on secondary data. You need a way to be able to identify, detect, protect, but more importantly, recover, respond, and remediate from these attacks. There's enough focus that's been put on the front end of this NIST framework; there needs to be a lot of focus on recovery and remediation, and that's the focus of our company.
You could think about the technology focus of Cohesity on these three areas like a car. There's an engine: multicloud data protection of all workloads, whether it's infrastructure, platform, or SaaS—AWS, Azure, Google, Oracle, private cloud. But then the engine of the car has to be coupled with a brake that's actually more important than the gas pedal. What's the brake? Advanced security capabilities that allow you to keep the car safe. Much of it's built into the engine, but some of it's also advanced capabilities—it's additional. That's the security vector. But the car just standing alone in the parking lot is of no value if you don't have a gas pedal. Every now and then you want to let the gas pedal go fast, and that's AI—artificial intelligence—to allow you to get insights into the gold, which is your data. That combination is what we are focused on.
You could think of data like this picture of an iceberg. There's primary data—you might store your data in databases like Oracle or Snowflake or Databricks—and you might have unstructured data, which are sources like OneDrive or filers like NetApp or Dell and so on and so forth. 70% of the world's data we believe is unstructured and 30% structured. But as that data ages, you have a time series index of everything that's backed up, snapshotted, vaulted, archived—that's secondary data: virtual machines, databases, apps, files, so on and so forth. We believe there's an incredible opportunity for a company to protect, secure, and provide insights into the world's data, primarily that secondary data. When you look at the world's data, the new Cohesity protects hundreds of exabytes—a factor larger, often by a factor of 100 relative to our honorable competitors—and that data gravity gives you enormous muscle in the market. Because with that large amount of data, it comes the ability to run security and AI algorithms to keep that data safe and also provide ways by which that data can provide value to customers.
When you think about the five S's of why customers pick us, here they are, and this is what we're focused on in differentiation in this market. Number one: speed. Number two: scale—they go often hand in hand. We are the fastest Ferrari in the racetrack when it comes to cyber recovery, both in test and recovery of almost every workload. The largest customers in the world in terms of tens and hundreds of petabytes running our platform—that is speed and scale coming together. But the entire platform has to be secured. That's the third: zero trust built-in capabilities from the get-go. Number four: simplicity—it's got to have a delightful user experience, an Apple, Google-type interface. And number five: it has to have smarts, both built-in and also in ways by which you can get value out of that, often with generative AI.
The new Cohesity is a leader in this market. It's a very fragmented market—50 players—and as we combine, number two and number seven becomes number one, approaching 20% in market share. The undisputed one. For the first time in Cohesity's 11-year history, we get to number one, and we're going to use that number one position to dedicate ourselves even more to customers in terms of innovation and customer obsession as we build an iconic company. What are some of the key metrics of that company? Pro forma looking in fiscal '24: 1.7 billion in revenue, 1.5 billion in ARR, the undisputed number one, very profitable—28% adjusted EBITDA. Hundreds of exabytes under management, much larger than many of our honorable competitors. 2x the R&D compared to many of those modern competitors—that allows us to innovate like never before. 12,000 customers, 3,000 partners, and 85% of the Fortune 100 and nearly 70% of the Global 500. So very strong in almost every vertical as we look at the US and the larger international markets.
Let's cover now: protect, secure, and providing insights. What's the basis of the technology? About 10 years ago when the company started, we were the first to invent this category of a webscale hyperconverged architecture that allows you to do things much faster but also at a lower cost—speed and lower cost of ownership. This compute coming close to storage allowed you to build things whether it ran in the private cloud on an appliance or in the cloud or as a SaaS solution with one codebase. We invented that; several other companies followed that, but we were the first to do it. To this day, with capabilities like we have for instant mass recovery, our cyber recovery is 5 to 10x faster than everybody in the space. That's the beauty of what we've built in protection.
When you think about the way in which we protect, it's a beautiful user experience—a management console where you can look at all your workloads, whether it's coming from the data center, the private cloud, public cloud of any form—AWS, Azure, Google, Oracle—but also SaaS applications like Microsoft 365 or Salesforce or Google Workspace. And when you think about the workloads of today and tomorrow, this is our focus. We will have connectors to the world's largest set of data sources, bar none. In the private cloud: VMware, Nutanix, Red Hat OpenShift. In the public cloud: AWS, Azure, Google, Oracle. In each of these rows here, you'll see VMs and containers, all of them in all of the workload formations. Databases—and that database is not just one database, Oracle, SQL—there could be 10 sub-rows inside the database. We provide or will provide a database connector list for all of them. NAS capabilities with files, whether it's EC2 or blobs in all the cloud formats. And then SaaS applications: Microsoft 365 and Google Workspace and Salesforce and Jira and ServiceNow. The way in which we build these connectors is an extremely fast, low-code, no-code way which is pioneering the industry. No one has been able to crack the way in which we can build connectors for all of what you need today and tomorrow.
But protection is just one form and has a lot of zero trust security built into it. For example, immutability, encryption, multi-factor authentication is built into the platform—it's not bolted on, built in from the get-go. But where you want some advanced security capabilities, for example, cyber vaulting, threat scanning, data classification, security posture management, two-way integration with many of the world's best security companies, and an incident response services team that we call Cyber Event Response Team, or CERT. This advanced security capability adds on to the basic levels of security in the core platform of data protection. One of the unique things we did about two years ago was identify the top security companies. We built this alliance called the Data Security Alliance with every one of them. Think of them like the World Health Organization that's watching all kinds of disease and they see a threat vector of cyber threat and they send us those signals. We've built our own scanners—think of us like the CDC. We're able to use their feeds to inform our scanners. And whether it's Palo Alto or CrowdStrike or Microsoft, Tenable or Zscaler or Mandiant or Okta, we were the first to build those security alliances with many of these companies, and that two-way integration makes both of us safer. Many of the leading data security posture management companies, whether it's BigID or Cyera, also partnering with us for the best capabilities. We have a security advisory council that's second to none. People like Kevin Mandia here, who are advising cyber threats on the national front, are on our board and helping us create a very safe environment, often consulting with us and with our customers to keep the country and the world safe from cyber threats. The analysts have now recognized us as a leader in this category, bar none, and we're investing in security far ahead of any of our competitors.
Third and most importantly, once you've protected the workloads, provide aspects of advanced security, you want to get insights into this gold—your data. Now, the problem has been traditionally it's very hard to search and analyze secondary data, backup. You have to do what's called rehydration of this. We've cracked this wide open with AI and ML techniques. Now, artificial intelligence, machine learning is not new to Cohesity. Our founders are folks from Google who built this into the platform from the get-go—whether it's data entropy or classification of data, capacity planning—all of our capabilities in the platform is called Touring. Combined with some of the AI capabilities that we will bring in from Veritas, our capabilities here are second to none. But we started to work on generative AI about a year ago, working closely with NVIDIA, Microsoft, Google, and Amazon, and built the world's first retrieval augmented generation to directly search and analyze secondary data directly. BackupGPT, our product, is an incredible breakthrough. It's a patent-pending technology that allows you to ask a query—for example, like this: maybe you have a million PDF files sitting in your backup and they're all contract documents. You want to understand the specific economic terms or discount percentages you had in all of those unstructured PDF documents. You could write a query just like ChatGPT or OpenAI, if you would, into those files. You can write them directly from our interface, and it comes back with a summary of them and gives you some aspect of value into your data. This could be happening on structured data, unstructured data, on backup, or on primary data. It's an incredible breakthrough. This was so incredible that NVIDIA came to us and said not just would they like to work with us as a partner and help us build this on top of their platform, they would also like to be a strategic investor in us. Jensen featured us in his GTC conference in March '24 and in their earnings call. We're very excited to be working together with NVIDIA and other key players in the industry in AI. IBM also decided—they technically play in this market—but they decided to work with us as a strategic partner to OEM exclusively our product, Cohesity DataProtect, inside their Defender portfolio. IBM now sends Defender DataProtect, which under these covers is Cohesity. We're very excited to bring to all IBM Tivoli Spectrum Protect customers now Defender DataProtect, and you can work with your IBM team.
We are really grateful that the largest brands in the world in the Fortune 500 and the Global 500 depend on us for their resilience. This represents, for example, financial services—practically all the largest banks and insurance firms. In public sector, both federal and state local. The largest companies in retail, consumer packaged goods, pharma, business services, telco, and across almost every one of the GDP countries. We're looking forward to innovating with every one of these customers to make them a best company that's relying on us for the safety of their data. When we think about the partner ecosystem, we're very grateful that many of these companies—cloud service providers, hardware players, security players—are strategic partners. Some of them actually investors in this company.
As we think about our product portfolio, you can think about those same three words I talked about: protect, secure, and insights. Data protection, data security, data insights. Data protection represents the core of our flagship products, DataProtect and NetBackup, with a beautiful user experience of Helios that will cover both of them. And then some advanced security products like Fort Knox and DataHawk and orchestration products, and then Gaia and analytics products for insights. This entire portfolio, called the Cohesity Data Cloud, will be second to none in innovation in breadth and depth. We will have a detailed product roadmap for all of you, our customers, whether you've come from the NetBackup side or the DataProtect side. You can first expect a beautiful user experience called Helios for all of our products. We will have roadmaps that define investments into all of them for years to come. No customer will be left behind. You'll be able to deploy these products on-premise or in the cloud, customer-managed or as a software-as-a-service solution, with security and AI products that will work on top of both of them.
In conclusion, I'd like to talk to you about the key values that we're driving this company going forward. Number one: it's an employee-engaged culture to really make this one of the best places to work. I always believed an engaged employee workforce serves their customers and drives innovation. Number two: we're going to be driving product innovation that's 5 or 10x better than everybody in our category. That's the vector that drives our engineers and our architects. Number three: we're going to have customer obsession with not just the people who are go-to-market focused in sales and marketing, but support, customer success, and even among the engineers and the focus in the back office. And number four: all of us are driven by servant leadership, which is we are here to serve you, our customers. We look forward to making you enormously successful with our capabilities of our products, but more importantly, this mission of protecting, securing, and providing insights in the world's data is an incredible one because we will not rest until we ensure that the world is resilient. Thank you very much.
