Slide 1: Q2 FY'24 Earnings Results
Q2 FY’24 Earnings Results OCTOBER 31, 2023 Copyright © 2023 Commvault | All Rights Reserved
Slide 2: 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 3: 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 4: Commvault redefines modern data protection for the cloud-driven world
Commvault Over 100K of the world’s leading organizations redefines modern depend on Commvault to protect more than 4 exabytes of cloud data. data protection for We help them: ● Secure, defend and recover data the cloud-driven ● Continuously run their businesses ● Infinitely scale, radically simplify
Slide 5: Data is everywhere
% of companies are Data is 89 multi-cloud1 everywhere 50 % of enterprise-critical data will be outside a company’s cloud2 (And harder to protect than ever before) % of companies lack 60 complete visibility into where data resides3 1. Flexera State of the Cloud Report 2023 2. Gartner 12 Data and Anal
Slide 6: Our modern approach to data protection is built for a challenging world
Our modern approach to data protection is built for a challenging world. Hybrid SaaS and Data Security & AI-driven World Software Ransomware Automation Complexity Delivery Recovery Copyright © 2023 Commvault | All Rights Reserved 6
Slide 7: Commvault is the only provider that delivers industry-leading capabilities in a unified platform
Commvault is the only provider that delivers industry-leading capabilities in a unified platform. Commvault protects data better Commvault detects threats faster Commvault recovers completely Proactively detects Real time visibility into Predictable resilience and rapid and diverts attacks cyber ris
Slide 8: Commvault Investment Thesis
Commvault Investment Thesis Data protection and Leading technology Large and growing security are mission- provider with installed base of critical IT spending unrivaled depth and customers priorities breadth of platform Profitable recurring Strong Free Rocketship SaaS revenue model with Cash Flow a
Slide 9: Q2 & 1H FY'24 Financial Summary
Q2 & 1H FY’24 Financial Summary Copyright © 2023 Commvault | All Rights Reserved 9
Slide 10: Q2 FY'24 Financial Summary
Q2 FY’24 Financial Summary (unaudited, $ in M’s) Q2’24 GUIDANCE Q2’24 ACTUAL YoY Change Total ARR n/a $711 +18% Subscription ARR n/a $530 +32% Total Revenue $193-$197 $201 +7% Subscription Revenue $95-$99 $98 +25% Non-GAAP Gross Margin 82.5% 82.0% (150) Bps Non-GAAP EBIT Margin 20.0% 20.9% +210 Bps
Slide 11: 1H FY'24 Financial Summary
1H FY’24 Financial Summary (unaudited, $ in M’s) 1H’23 ACTUAL 1H’24 ACTUAL YoY Change Total ARR $604 $711 +18% Subscription ARR $401 $530 +32% Total Revenue $386 $399 +3% Subscription Revenue $166 $195 +18% Non-GAAP Gross Margin 83.5% 82.4% (110) Bps Non-GAAP EBIT Margin 19.7% 21.4% +170 Bps Free Ca
Slide 12: Q2 FY'24 Key Financial Metrics
Q2 FY’24 Key Financial Metrics Copyright © 2023 Commvault | All Rights Reserved 12
Slide 13: Total ARR
Total ARR ($ in M’s) ARR is a good indicator of the growth $711 of our recurring revenue streams +18% $686 YoY $668 $641 $604 $595 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Refer to slide 27 for definition of Annual Recurring Revenue ("ARR"). Annual recurring revenue ("ARR") is a non-GAAP measure and shou
Slide 14: Subscription ARR
Subscription ARR Includes term-based subscription licenses and SaaS ($ in M’s) $530 +32% YoY $500 $477 $443 $401 $378 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Refer to slide 27 for definition of Annual Recurring Revenue ("ARR"). Refer to Slide 15 for stand-alone Metallic SaaS ARR. Subscription ARR is a n
Slide 15: SaaS is a meaningful driver of ARR growth
SaaS is a meaningful driver of ARR growth (SaaS ARR, $ in M’s) $131 +77% YoY $113 $101 Q4'23 Q1'24 Q2'24 Refer to slide 27 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, financial informatio
Slide 16: Healthy Subscription Customer Growth
Healthy Subscription Customer Growth 8,300 Customers are embracing Subscription offerings which now represent >50% of our base 7,800 7,400 6,700 6,100 5,600 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Subscription customer count includes unique, term-based and usage-based software and SaaS customers. Copyri
Slide 17: Subscription Revenue
Subscription Revenue (unaudited, $ in M’s) Includes software portion of term-based licenses and SaaS revenue Subscription Revenue growth accelerated QoQ +25% $97 $98 YoY $95 $88 $87 $78 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Refer to slide 27 for definitions of key metrics. Copyright © 2023 Commvault |
Slide 18: SaaS drives higher customer value
Metallic is a customer acquisition and expansion engine SaaS 130% Net Dollar >60% Customers are new Retention Rate to Commvault drives higher ~30% ~40% customer Customers use multiple SaaS offerings Customers have SaaS + Software value ~25% Enterprise* Customers Customer data specific to fiscal Q2 F
Slide 19: Earnings & Cash Flow Metrics
Earnings & Cash Flow Metrics
Slide 20: Non-GAAP EBIT and Margin %
Non-GAAP EBIT and Margin % ($ in M’s) Expense discipline to drive >20% Non-GAAP EBIT margin over time as Metallic scales $50.00 25% 22% 22% $45.00 21% 21% 20% $40.00 19% 20% 20% $35.00 $30.00 15% $25.00 $45 $44 $20.00 $41 $42 10% $35 $39 $15.00 $10.00 5% $5.00 $0.00 0% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
Slide 21: Consistent Capital Return
Consistent Capital Return (unaudited, $ in M’s) YTD Share Repurchases ($ in M’s) $100 120% $90 106% • Repurchased $31M of stock in Q2’24 and 110% $82M of stock 1H FY’24 representing 106% of $80 100% Free Cash Flow (FCF) $70 90% 83% • $174M remaining on share repurchase authorization $60 80% $82 $50
Slide 22: Q3 & Full year FY'24 Guidance
Q3 & Full year FY’24 Guidance
Slide 23: KPIs
KPIs Annual Recurring Revenue (ARR) Subscription ARR Total Revenue Subscription Revenue Non-GAAP EBIT Margin Free Cash Flow
Slide 24: Q3 and FY'24 Guidance
Q3 and FY’24 Guidance (unaudited, $ in M’s) Q3’24 UPDATED PRIOR GUIDANCE FY’24 GUIDANCE FY’24 GUIDANCE Total ARR 14% YoY 13% YoY Subscription ARR 24% YoY 27% YoY Total Revenue $206 - $210 $812 - $822 $805 - $815 Subscription Revenue $106 - $110 $408 - $418 $420 - $430 Non-GAAP Gross Margin 82.5% 82%
Slide 25: Commvault Investment Thesis
Commvault Investment Thesis Data protection and Leading technology Large and growing security are mission- provider with installed base of critical IT spending unrivaled depth and customers priorities breadth of platform Profitable recurring Strong Free Rocketship SaaS revenue model with Cash Flow a
Slide 26: Appendix
Appendix COMMVAULT @) Copyright © 2028 Commvauit | All Ri
Slide 27: 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 28: 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 Non-GAAP financial measures and reconciliation: GAAP income (loss) from operations $7,449 $9,313 $5,018 $(37,665) $18,480 $17,634 Noncash stock-based compensation 29,808 25,327 23,626 24,378 23,724 23,61