Slide 1: Q1 FY'24 Earnings Results
Q1 FY’24 Earnings Results AUGUST 1, 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 delivering industry-leading capabilities in a unified platform
Commvault is the only provider that delivers industry-leading capabilities in a unified platform. Data, Secured. Data, Defended. Data, Recovered. Commvault protects data better Commvault detects threats faster Commvault recovers completely Proactively detects Real time visibility into Predictable re
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: Q1 FY'24 Financial Summary
Q1 FY’24 Financial Summary Copyright © 2023 Commvault | All Rights Reserved 9
Slide 10: Q1 FY'24 Financial Summary
Q1 FY’24 Financial Summary (unaudited, $ in M’s) Q1’24 GUIDANCE Q1’24 ACTUAL Total ARR n/a $686 Subscription ARR n/a $500 Total Revenue $195-$199 $198 Subscription Revenue $95-$98 $97 Non-GAAP Gross Margin 82.5% 82.9% Non-GAAP EBIT Margin 20.0% 22.0% Free Cash Flow n/a $38 Share Repurchases n/a $51
Slide 11: Q1 FY'24 Key Financial Metrics
Q1 FY’24 Key Financial Metrics Copyright © 2023 Commvault | All Rights Reserved 11
Slide 12: Total ARR
Total ARR ($ in M’s) $686 +15% ARR is a good indicator of the growth $668 YoY of our recurring revenue streams $641 $604 $595 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Refer to slide 26 for definition of Annual Recurring Revenue ("ARR"). Copyright © 2023 Commvault | All Rights Reserved 12
Slide 13: Subscription ARR
Subscription ARR ($ in M’s) Includes term-based subscription licenses and SaaS Our Subscription business now represents 73% of total ARR $500 +32% $477 YoY $443 $401 $378 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Refer to slide 26 for definition of Annual Recurring Revenue ("ARR"). Refer to Slide 14 for stand-a
Slide 14: SaaS is a meaningful driver of ARR growth
SaaS is a meaningful driver of ARR growth (unaudited SaaS ARR, $ in M’s) $113 +72% YoY $66 $16 Q1'22 Q1'23 Q1'24 Refer to slide 26 for definition of Annual Recurring Revenue ("ARR"). Copyright © 2023 Commvault | All Rights Reserved 14
Slide 15: Healthy Subscription Customer Growth
Healthy Subscription Customer Growth 8,000 7,800 Customers are embracing Subscription offerings which 7,500 now represent >50% of our base 7,400 7,000 6,700 6,500 6,100 6,000 5,600 5,500 5,000 4,500 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Subscription customer count includes unique, term-based and usage-based
Slide 16: Subscription Revenue
Subscription Revenue (unaudited, $ in M’s) Includes software portion of term-based licenses and SaaS revenue Subscription Revenue growth accelerated QoQ $97 +11% $95 YoY $88 $87 $78 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Refer to slide 26 for definitions of key metrics. Copyright © 2023 Commvault | All Right
Slide 17: SaaS drives higher customer value
Metallic is a customer acquisition and expansion engine SaaS 118% 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 Q1 F
Slide 18: Earnings & Cash Flow Metrics
Earnings & Cash Flow Metrics
Slide 19: Non-GAAP EBIT and Margin %
Non-GAAP EBIT and Margin % (unaudited, $ 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% 20% $40.00 19% 20% 20% $35.00 $30.00 15% $25.00 $45 $44 $20.00 $41 $39 10% $35 $15.00 $10.00 5% $5.00 $0.00 0% Q1'23 Q2'23 Q3'23 Q4'23 Q1'
Slide 20: Consistent Capital Return
Consistent Capital Return ($ in M’s) Share Repurchases ($ in M’s) 135% • Repurchased $51M of stock in Q1’24 representing 135% of Free Cash Flow 107% 91% (FCF) 88% • Plan to continue to prioritize share 81% $61 $51 repurchases as primary use of FCF $40 • April 2023 - Board approved share $31 repurcha
Slide 21: Q2 & Full year FY'24 Guidance
Q2 & Full year FY’24 Guidance
Slide 22: KPIs
KPIs Annual Recurring Revenue (ARR) Subscription ARR Total Revenue Subscription Revenue Non-GAAP EBIT Margin Free Cash Flow
Slide 23: Q2 and FY'24 Guidance
Q2 and FY’24 Guidance ($ in M’s) Q2’24 GUIDANCE FY’24 GUIDANCE Total ARR 13% YoY Subscription ARR 27% YoY Total Revenue $193 - $197 $805 - $815 Subscription Revenue $95 - $99 $420 - $430 Non-GAAP Gross Margin 82.5% 82% - 83% Non-GAAP EBIT Margin 20% +50 - 100 bps YoY Free Cash Flow (FCF) $170 Share
Slide 24: 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 25: Appendix
Appendix COMMVAULT @) Copyright © 2028 Commvauit | All Ri
Slide 26: 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 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations (unaudited, $ in thousands) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Non-GAAP financial measures and reconciliation: GAAP income (loss) from operations $7,449 $9,313 $5,018 $(37,665) $18,480 Noncash stock-based compensation 29,808 25,327 23,626 24,378 23,724 FICA and payroll ta