Slide 1: Q4 FY'23 Earnings Results
Q4 FY’23 Earnings Results MAY 2, 2023 Copyright © 2023 Commvault | All Rights Reserved
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: Data is everywhere
Data is More clouds. everywhere More SaaS apps. More locations. More devices. More threats. (And harder to protect than ever before) More global instability. And it’s only accelerating. Copyright © 2023 Commvault | All Rights Reserved 4
Slide 5: Our modern approach to data protection is built for a challenging world
Natural Hybrid Disasters World Operational Complexity Resilience Regulatory Ransomware Landscape Our modern approach to data protection is built for a challenging world. Commvault protects data better Commvault detects threats faster Commvault recovers completely Proactively detects and diverts atta
Slide 6: Commvault is the only unified solution for modern data protection
Commvault is the only unified solution that delivers modern data protection for the hybrid enterprise. Any workload Any form factor Any location 5X lower TCO than the next Appliance closest vendor Software SaaS On-Prem Cloud SaaS Copyright © 2023 Commvault | All Rights Reserved 6
Slide 7: 100,000 organizations depend on Commvault
100,000 of the world’s leading organizations depend on Commvault to secure, defend, and recover their data. Copyright © 2023 Commvault | All Rights Reserved 7
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: Q4 FY'23 Financial Summary
Q4 FY’23 Financial Summary Copyright © 2023 Commvault | All Rights Reserved 9
Slide 10: Q4 FY'23 Financial Summary
Q4 FY’23 Financial Summary (unaudited, $ in M’s) Q4’23 GUIDANCE Q4’23 ACTUAL ARR n/a $668.4 Subscription & SaaS ARR n/a $477.1 Software Revenue $89.5 $90.2 Total Revenue $197.0 $203.5 Non-GAAP Gross Margin 82.0% 83.4% Non-GAAP EBIT Margin 19.0% 22.3% Free Cash Flow n/a $66.8 Share Repurchases n/a $6
Slide 11: Key Financial Metrics
Q4 FY’23 Key Financial Metrics Copyright © 2023 Commvault | All Rights Reserved 11
Slide 12: Total ARR
Total ARR ($ in M’s) ARR is a good indicator of the growth of our recurring revenue streams $668 +15% $641 YoY $604 $595 $583 $561 $543 $533 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Refer to slide 24 for definition of Annual Recurring Revenue ("ARR"). Copyright © 2023 Commvault | All Rights R
Slide 13: Subscription ARR
Subscription ARR ($ in M’s) Includes term-based subscription licenses and SaaS Our Subscription business now represents 71% of total ARR 71% $477 +38% YoY $443 $401 $378 $346 49% $309 $278 $259 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Refer to slide 24 for definition of Annual Recurring Reven
Slide 14: Subscription Revenue
Subscription Revenue (unaudited, $ in M’s) Includes software portion of term-based licenses and SaaS revenue Subscription Revenue is 46% now 46% of Total Revenue $95 +9% YoY $87 $88 $87 29% $77 $78 $52 $52 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Refer to slide 24 for definitions of key metri
Slide 15: Healthy Subscription Customer Growth
Healthy Subscription Customer Growth 8,500 Customers are embracing Subscription offerings which 7,500 now represent ~50% of our base 7,300 6,500 6,600 5,500 6,000 5,500 4,500 5,000 3,500 2,500 1,500 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Subscription includes unique term-based subscription licenses and SaaS
Slide 16: We built a >$100M ARR SaaS offering in only three years
We built a >$100M ARR SaaS offering in only three years Copyright © 2023 Commvault | All Rights Reserved 16
Slide 17: We Just Started Taking Our Share
We Just Started Taking Our Share (unaudited, $ in M’s) $101 Metallic is a meaningful driver of our ARR growth +2x YoY $68 $51 +2.8x YoY $24 $9 $3 FY'21 FY'22 FY'23 SaaS Revenue SaaS ARR Refer to slide 24 for definition of Annual Recurring Revenue ("ARR"). Copyright © 2023 Commvault | All Rights Rese
Slide 18: Metallic is a customer acquisition and expansion engine
Metallic is a customer acquisition and expansion engine Metallic 125% Net Dollar ~70% Customers are new Retention Rate to Commvault drives higher ~30% ~40% customer Customers use multiple Metallic offerings Customers have Metallic + Commvault value ~25% Enterprise* Customers Customer data specific t
Slide 19: Earnings & Cash Flow Metrics
Earnings & Cash Flow Metrics
Slide 20: Non-GAAP EBIT & Margin
Non-GAAP EBIT & Margin (unaudited, $ in M’s) Expense discipline to drive >20% Non-GAAP EBIT margin over time as Metallic scales $50.00 25% 23% 22% 22% $45.00 21% 21% 20% $40.00 19% 20% 20% 17% $35.00 $30.00 15% $25.00 $47 $45 $20.00 $41 $43 $41 10% $39 $35 $15.00 $31 $10.00 5% $5.00 $0.00 0% Q1'22 Q
Slide 21: Healthy Free Cash Flow
Healthy Free Cash Flow ($ in M’s, except per share data) Free cash flow supports share repurchases $190 $3.90 $3.67 $3.65 $170 $3.40 $173 $167 $150 $2.90 $130 $2.42 $2.40 $110 $116 $1.90 $90 $70 $1.40 FY'21 FY'22 FY'23 Free Cash Flow Free Cash Flow per share Free cash flow and free cash flow per sha
Slide 22: Consistent Capital Return
Consistent Capital Return ($ in M’s) Share Repurchases ($ in M’s) 107% • Repurchased $151M of stock in FY’23 88% 91% representing 90% of full year Free Cash 81% Flow (FCF) $61 • Continue to prioritize share repurchases as primary use of FCF $40 • April 2023 - Board approved share $31 repurchase auth
Slide 23: P&L Recast
P&L Recast COMMVAULT @)
Slide 24: Key Definitions
Key Definitions Beginning in fiscal 2024, Commvault will transition the reporting of revenue and costs of revenue. The software and services lines on the Statement of Operations (P&L) lines will be recast to the following categories: P&L Line Definition Subscription Software portion of term-based li
Slide 25: Recast P&L – FY'23
Recast P&L – FY’23 (unaudited, $ in M’s) The table below reconciles our FY’23 reported P&L revenue line items to the new P&L revenue line items Current P&L Customer Subscription Perpetual Revenue SaaS Other Services Total Support Software Software Format SW & Products Revenue $355 ($280) ($75) Subsc
Slide 26: Recast Revenue and Cost of Revenue
Recast Revenue and Cost of Revenue (unaudited, $ in thousands) Q1’22 Q2’22 Q3’22 Q4’22 FY’22 Q1’23 Q2’23 Q3’23 Q4’23 FY’23 Revenue Subscription $52,383 $52,059 $77,001 $86,916 $268,359 $87,628 $78,239 $87,380 $94,537 $347,784 Perpetual License 32,644 27,656 28,172 23,385 111,857 17,798 19,831 19,728
Slide 27: Q1 & Full year FY'24 Guidance
Q1 & Full year FY’24 Guidance
Slide 28: KPIs
KPIs Annual Recurring Revenue (ARR) Subscription ARR Total Revenue Subscription Revenue Non-GAAP EBIT Margin Free Cash Flow
Slide 29: Q1 and FY'24 Guidance
Q1 and FY’24 Guidance ($ in M’s) Q1’24 GUIDANCE FY’24 GUIDANCE Total ARR 13% YoY Subscription ARR 27% YoY Total Revenue $195 - $199 $805 - $815 Subscription Revenue $95 - $98 $420 - $430 Non-GAAP Gross Margin 82.5% 82 - 83% Non-GAAP EBIT Margin 20.0% +50 - 100 bps YoY Free Cash Flow (FCF) $170 Share
Slide 30: 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 31: Appendix
Appendix COMMVAULT @) Copyright © 2028 Commvauit | All Ri
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Q1’22 Q2’22 Q3’22 Q4’22 FY’22 Q1’23 Q2’23 (unaudited, $ in thousands) Q3’23 Q4’23 FY’23 Non-GAAP financial measures and reconciliation: GAAP income (loss) from operations $15,494 $2,266 $12,361 $11,445 $41,566 $7,449 $9,313 $5,018 $(37,665) $(15,885) Noncash stock-ba