Slide 1: Commvault Fiscal Q3'24 Earnings Results
Commvault Fiscal Q3’24 Earnings Results JANUARY 2024 © Commvault 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements regarding future events or the expected financial performance of our company, including statements about our outlook for future periods and related guidance. These statements reflect management’s current expectations, e
Slide 3: GAAP to Non-GAAP Presentation
GAAP to Non-GAAP Presentation In addition to financial information prepared in accordance with U.S. GAAP, this presentation also contains adjusted financial measures that we believe provide investors and management with supplemental information relating to operating performance and trends that facil
Slide 4: The world has changed: cyber threats are here to stay
THIS IS AN INSTRUCTIONAL SLIDE DO NOT USE The world has changed. Cyber threats are here to stay – it’s not IF, it’s WHEN. Section Header Ransomware everywhere — including the backup. Exponential hybrid chaos. The AI paradigm shift: New opportunity, new threats. 99% of ransomware tampers Over 90% of
Slide 5: Commvault Cloud is the new standard for cyber resilience
Commvault Cloud is the new standard for cyber resilience. The best The fastest security recovery Unify security across all your hybrid Accelerate rapid, clean recovery at data in one powerful cloud. enterprise scale. The most The lowest intelligence TCO Deploy advanced AI capabilities to Dramaticall
Slide 6: Commvault Investment Thesis
Commvault Investment Thesis Leading technology Cyber resilience is a Large and growing provider with mission-critical IT installed base of unrivaled depth and spending priority customers breadth of platform Profitable recurring Strong Free Rocketship SaaS revenue model with Cash Flow and offering in
Slide 7: Q3 & YTD FY'24 Financial Summary
Q3 & YTD FY’24 Financial Summary © Commvault 2024 7
Slide 8: Q3 FY'24 Financial Summary
Q3 FY’24 Financial Summary (unaudited, $ in M’s) Q3’24 GUIDANCE Q3’24 ACTUAL YoY Change Total ARR n/a $752 +17% Subscription ARR n/a $571 +29% Total Revenue $206 - $210 $217 +11% Subscription Revenue $106 - $110 $114 +31% Non-GAAP Gross Margin 82.5% 82.9% (10) Bps Non-GAAP EBIT Margin 21.0% 21.5% +1
Slide 9: Nine Months YTD FY'24 Financial Summary
Nine Months YTD FY’24 Financial Summary (unaudited, $ in M’s) YTD’23 ACTUAL YTD’24 ACTUAL YoY Change Total ARR $641 $752 +17% Subscription ARR $443 $571 +29% Total Revenue $581 $616 +6% Subscription Revenue $253 $309 +22% Non-GAAP Gross Margin 83.4% 82.6% (80) Bps Non-GAAP EBIT Margin 19.7% 21.5% +1
Slide 10: Q3 FY'24 Key Financial Metrics
Q3 FY’24 Key Financial Metrics © Commvault 2024 10
Slide 11: Subscription Revenue
Subscription Revenue (unaudited, $ in M’s) Includes software portion of term-based licenses and SaaS revenue SUBSCRIPTION REVENUE GROWTH ACCELERATED QOQ $114 +31% YoY $97 $98 $95 $88 $87 $78 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Refer to slide 25 for definitions of key metrics. © Commvault 2024
Slide 12: Total ARR
Total ARR ($ in M’s) ARR IS A GOOD INDICATOR OF THE GROWTH OF OUR RECURRING REVENUE STREAMS +17% $752 YoY $711 $686 $668 $641 $604 $595 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Refer to slide 25 for definition of Annual Recurring Revenue ("ARR"). ARR is a non-GAAP measure and should be considered a
Slide 13: Subscription ARR
Subscription ARR ($ in M’s) INCLUDES TERM-BASED SUBSCRIPTION LICENSES AND SAAS $571 +29% YoY $530 $500 $477 $443 $401 $378 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Refer to slide 25 for definition of Annual Recurring Revenue ("ARR"). Refer to Slide 14 for stand-alone SaaS ARR. Subscription ARR is a
Slide 14: SaaS ARR
SaaS ARR ($ in M’s) SAAS IS A MEANINGFUL DRIVER OF ARR GROWTH $152 +77% YoY $131 $113 $101 $86 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Refer to slide 25 for definition of Annual Recurring Revenue ("ARR"). SaaS ARR is a Non-GAAP measure and should be considered as a supplement to, and not as a substitute for,
Slide 15: SaaS Net Dollar Retention Rate (NRR)
SaaS Net Dollar Retention Rate (NRR) SAAS DRIVES MEANINGFUL CUSTOMER EXPANSION 130% 128% 125% 125% 125% 118% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Refer to slide 25 for definition of Net Dollar Retention (“NRR”). SaaS NRR is a Non-GAAP measure and should be considered as a supplement to, and not as a substi
Slide 16: Subscription Customer Growth
Subscription Customer Growth CUSTOMERS ARE EMBRACING SUBSCRIPTION OFFERINGS WHICH NOW REPRESENT >50% OF OUR BASE 8,800 8,300 7,800 7,400 6,700 6,100 5,600 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Subscription customer count includes unique, term-based and usage-based software and SaaS customers. ©
Slide 17: Earnings & Cash Flow Metrics
Earnings & Cash Flow Metrics © Commvault
Slide 18: Non-GAAP EBIT and Margin %
Non-GAAP EBIT and Margin % (unaudited, $ in M’s) EXPENSE DISCIPLINE DRIVING CONSISTENT 20%+ NON-GAAP EBIT MARGIN EVEN AS SAAS SCALES $50.00 22% 25% 22% 22% $45.00 21% 21% 20% $40.00 19% 20% 20% $35.00 $30.00 15% $25.00 $45 $47 $20.00 $41 $44 $42 10% $35 $39 $15.00 $10.00 5% $5.00 $0.00 0% Q1'23 Q2'2
Slide 19: Consistent Capital Return
Consistent Capital Return (unaudited, $ in M’s) $150 YTD Share Repurchases 120% 111% 110% $130 • Repurchased $51M of stock in Q3’24 and 100% $134M of stock during nine months YTD’24 $110 90% representing 111% of Free Cash Flow (FCF) 90% $90 • $122M remaining on share repurchase authorization $134 80
Slide 20: Q4 & Full Year FY'24 Guidance
O4 & Full Year FY’24 Guidance © Commvault
Slide 21: KPIs
KPIs • Annual Recurring Revenue (ARR) • Subscription ARR Total Revenue • Subscription Revenue Non-GAAP EBIT Margin • Free Cash Flow © Commvault 2024 21
Slide 22: Q4 and FY'24 Guidance
Q4 and FY’24 Guidance (unaudited, $ in M’s) Q4’24 UPDATED PRIOR GUIDANCE FY’24 GUIDANCE FY’24 GUIDANCE Total ARR 15% YoY 14% YoY Subscription ARR 25% YoY 24% YoY Total Revenue $210 - $214 $826 - $830 $812 - $822 Subscription Revenue $111 - $115 $420 - $424 $408 - $418 Non-GAAP Gross Margin 81% - 82%
Slide 23: Commvault Investment Thesis
Commvault Investment Thesis Leading technology Cyber resilience is a Large and growing provider with mission-critical IT installed base of unrivaled depth and spending priority customers breadth of platform Profitable recurring Strong Free Rocketship SaaS revenue model with Cash Flow and offering in
Slide 24: Appendix
Appendix : Copyright © 2024 © Commvault Commvaut | All 24 Rights Reserved
Slide 25: Key Definitions
Key Definitions Item Definition Subscription Revenue Software portion of term-based licenses and software as-a-service offerings (SaaS). The software component of term-based licenses is typically recognized when the software is delivered or made available for download. For SaaS offerings, revenue is
Slide 26: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (unaudited, $ in thousands) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Non-GAAP financial measures and reconciliation: GAAP income (loss) from operations $7,449 $9,313 $5,018 $(37,665) $18,480 $17,634 $21,051 Noncash stock-based compensation 29,808 25,327 23,626 24,37
Slide 27: Thank You
Thank You © Commvault 2024