Bob, you, morning everyone. good and Thank
subscription will the financial operational for second covering to made which fiscal spend also our models, revenue updating progress traditional accelerate addition metrics, towards to more demonstrate you In time of transition the highlights including continued the we I have quarter on update repeatable to XXXX, revenue software our repurchase progress and announcement products of results share an I which of you new lastly, revenue update you will streams. And I review, on includes the and program. our the will recent our provide on also multi-year operating margin targets.
to a made addition we Relations section in filing. and also Investor on earlier this our also morning, X-K issued release our website available this included our the earnings presentation have In presentation of
year-over-year. which year-over-year. currency in transactions sequential using you total QX an basis, Revenue number and of QX We On as million X% can you deals prior-year these FX represented If (XX:XX:XX) $X.X software representing webcast, the higher given The these in $XX.X of my transactions on XX% such a follow remarks. million, are prior-quarter during product have been year-over-year. was revenue constant deals, over software period. million X% rates. Revenue from increased X% $XXX.X a revenue products approximately which with the enterprise we reported would over revenues revenue quarter, and down increase along slides enterprise XX% were up was of total $XXX,XXX of revenue. from define revenue
Appliances included margins Total the approximately of the and ended the software solutions enterprise is approximately approximately operating with September were approximately year. found for our our royalties cost quarter Our year-over-year HyperScale structure, our $XXX.X during hardware sequentially. cost cost cost the by Advance million XX% included the related in We third-party fiscal X% X% the the were of employees. X our X,XXX quarter, deal size to and count We down to for non-GAAP quarter. head Phase $XXX,XXX of since quarter. in and Gross reducing products HyperScale was of of which and significant revenue. average completed expenses Software overall beginning the related The XX.X% efficiencies Commvault
addition, in development X to focused operational technological remain our impact for adverse these resulting Commvault In leadership income through an not million. initiatives of quarter, operating in Advance, strategy. go the Operating position expect EBIT Phase product we as approximately our We industry. we have $XX.X on maintaining do margins XX.X% were on the of or
was share income the shares. was diluted million weighted approximately of Net EBIT mentioned, XX.X Bob quarter and As was year-over-year. EPS for average million up $X.XX XX% on count based $XX.X a
income we to shares. lowered be a tax for XX%. will FY to as weighted diluted year our of XX% rate share reform, pro that rates. anticipate approximately As million our result XXXX, We believe our XX% cash that U.S. will during and FY long-term GAAP forma tax count a tax average We reminder, XX from align full XXXX
change time our now gears spend pricing to and continued Let's more on models revenue. shift our repeatable subscription and some
are to models quarters believe the continuing very with transition six pricing customers. been last resonate has to pricing successful. over subscription our Our We models subscription-based
of the the introducing help progress For track clarity transition. our sake to subscription growth transparency, investors revenue and we're metrics and of revenue two
When subscription we and is accelerating it on portion transition this business, what services the we see, subscription-based pace maintenance, other SaaS, As next license repeatable sales as a (XX:XX:XX) services call, the and such streams, our of you becoming you the over repeatable intend with combine of several are larger years. revenue our represents, will revenue revenue. managed
track in our repeatable XX-plus-percent revenue having of on are goal achieve FY XXXX. We to
on to or currently a environment includes solutions is chart potentially on-prem and any run by X start is Commvault to in it infrastructure. SaaS revenue are or customers' significant our that software the our of revenue cloud Nearly of summarizes have current related the me repeatable. related Let nature and recognized it that hosted defining based revenue is do not presentation in how all product revenue solutions. out if Slide streams. We streams
As in and and a our time recognized perpetual when is majority for subscription a software result, as is it of licenses true delivered vast product the under over period. revenue software This contractual course to of Commvault point required XXX, both not the and at licenses. a customer software is ASC the
typically agreements which our As three reminder, commitment and minimum generally non-cancelable software subscription license is years. require a spending a term
support no guaranteed usage. and maintenance with our our XX support revenue arrangements of and software a perpetual product services subscription subscription minimums, word will repeatable this exception the are the of used have revenue and only contract. the entire principle to sales and which over recognize term. time related in are ratably software for of repeatable recognized they Slide the recognized software, of time product We the of includes We arrangements. a not both is the a the maintenance that on models. and utility Each measure Commvault point time at not the These means because the subscription intentionally it and value over and utility our in recognized revenue, unlike revenue to in contract describe renews recurring a utility was generally over arrangement, structured time software period customer Note subscription of summary software this services. products that point pay-as-you-go The to benefits on is sale. total based as are sold ratably recognition arrangements our software revenue length
Customers revenue subscription for management to heard very of pricing model models prefer often with simplifies associated because their technology. arrangements relationships the we increase. and our prerequisites confident such enterprise with become their customers, and drive We customer our believe a is consumption-based move flexibility much in will as from cloud will lowers many to adapt customers these of aligns on customer to And provides changes that commitment, their lifetime are process, list that upfront consumption-based subscription value storage. solution. have If arrangements it license perspective, with of subscription over a we high repeatable more their data make Ultimately a it a procurement pricing and to subscription more stream our predictable time. for a models prospects the Commvault business easier from Commvault
transaction Let's license now it example license a period. this with license how a three of and compares perpetual In over perpetual six-year have a subscription slide like-for-like look representative at example arrangement a on license compared XX, a both and arrangement. and simple we subscription
Commvault's two believe In quarters software streams, metrics operating recognition for shareholders. several more progress demonstrate now now. Commvault, of renewal, we maintenance. scenario. less upfront versus revenue. of such the this increases highlight As total the receives plus our can have time, realize initially pay over renews and time continued solution revenue annual cost-efficient period under $XX,XXX model and equivalent support. could $XXX,XXX repeatable software price to both from perpetual value three-year The discussing the transition would upfront and and maintenance. maintenance, see, subscription customer revenue to years. over revenue in that by either less to We win-win their of the three-year We reduced the perpetual example, over customer of investment a is the to administrative and maintenance other these results downtime, subscription requires is the This subscription financial transition making customer purchase cost show related a key customer our the year $XXX,XXX the Over initial and three-year also purchase is it software support our which exceeds a a $XXX,XXX the we more a our this customers model, the solution model To important storage, easier subscription this typically for Each a lower been agreement. as license life costs. In competitor metrics you to first after for it potential will to and Commvault customer six over $XXX,XXX and believe amount transition believe Commvault. benefits of which for support of software models, the towards to By products and inclusive cumulative is
metric previously ACV. and The which revenue contract each the annual second shown new is repeatable is repeatable few will through in used industry, XX. widely revenue you is in first the is slide but walk slides. next start a these on and the I'll that discussed, of not value, I with or
As software amounts on maintenance maintenance subscription inclusive support and noted revenue on amounts and row earlier, these The software perpetual repeatable subscription, revenue services. primary the included in approximately our The included utility the to and support of repeatable streams and on and maintenance are nature. and support software revenue software arrangements. is related are recurring primarily of row be XX% our existing revenue services arrangements. to We would consider total QX both
software on and last As up slide driven QX has which a XX% and QX, revenue repeatable of record streams products shown in our Subscription-based by you consistently in growing revenue products has is recent QX. can legacy of pricing see, and in XX. XX% year. to models, been our subscription, represented which revenue excess The year-over-year compares in been revenue pricing software growth of our XX% repeatable were of
Software and both products and XXX% multi-year as revenue from utility-type well quarter. significant from as acceleration of consists such pay-as-you-go committed often arrangements. subscription-based This are last a subscription up sales, year-over-year, models
subscription is slide The discuss shown to which like is annual XX. and would value, or utility contract second I the ACV, metric on
transition and a contractual this a active will subscription (XX:XX:XX) contracts that growth, customer that revenue this contracts sell. or we beta potentially defined opportunities. land-and-expand subscription repeatable increased acquisition, the analysts growth and and revenue streams. well usage help a value metric transactions expect will plus greater This repeatable as annualized As demonstrate annualized or to value among that Commvault's to the ACV in subscription into equivalent new as of investors upsell mostly metric pricing normalizes or either our point revenue was the as: subscription more to the visibility believe as the we two, and will recognized drive be we total for support ACV value; inclusive length pay-as-you-go one, XX-month variations services our We model, transition track models provide active is valuable subscription of billings. software of utility-based utility utility
QX, of to a $XX subscription selling after short million of grown only period licenses. As ACV has
this accelerating is ACV year-over-year growth XX% Importantly, quarter. and approximately achieved
our both Commvault subscription spend licenses, our significantly our our selling and subscription addressing Advance of part would expect near-term next financial operating ACV initiatives, we to highly on grow and few longer-term years. to focused outlook I As next these targets. several over model go-to-market now the primarily is the minutes like
As have reductions outlined been by making strengthening framework aspects we and within distribution efficiencies. competitive Commvault release, company position, press progress and cost in line, marketing, relationships, of the good our across expanding our driving today's technology sales reorganizing Advance product all broadening our and
We are performance on the the a path to of company. improving sustainable financial
operating distribution, target. revenue While our actions changes that the drive reasonable will also have pricing, we we growth made expect we and to partnerships revenues a products, future leverage, and with took to align cost structure
Advance initiatives to did and that earlier, our the resulted near-term line top not disruption allow implementation the us in of near-term achieve Commvault discussed Bob QX As objectives.
planning We growth modest are also for in revenue QX. QX conservatively and
XXXX. of revenue million, $XX.X be These million which approximately expectations XXX resulting our be respectively. $XXX quarter and expansion approximately $XXX and and cost-cutting basis to based we initiatives point be early XX.X%, third revenue now a the QX is revenue margin We expect XXXX of expect million. total QX on of software million QX total the see FY in approximately FY to We will $XXX If quarter continue approximately to margin approximately million, improvement are we revenues achieve and percentage $XX based on revenue XXXX percentage the in margin year. and EBIT earnings year-over-year full-year XX% approximately prior to growth over fiscal began strong we fourth the EBIT outlook,
ability we It effort. is and our and strong important note Commvault is are Advance fundamentals restructuring a strategic our still While face challenges. execute improved, major transformation critical to that to has
which We risks are to to making tied carries execution. and business fundamental the changes disruption
improvements majority place, is these of we term. that numerous across particularly a believe the associated the While such volume of seeing are well. risk there are initiatives, certain execution in elements in of transformational the tracking risks, with Advance order of already Commvault October and the near we Despite KPIs, is element
upon discussed come as inflow timing. we have quarters, currently are large for a of deals, reliant complexity due Secondly, we to many additional and seven-figure risks with their which steady and six
the While we rates rates also while And value. ultimately happy but are revenue, models, with have we the subscription remain on will we transition This a pricing with we progress lifetime large result term. need lastly, continue headwind to license will dampening the our particularly to revenue to in believe likely near-term transition improve growth. closure a deals, near on are will higher close deal in lumpy, drives making these a effect
of stated, be previously by our changes the Advance near-term will disruption we XXXX initiatives. Commvault of part implemented as the fiscal impacted As
As start XXXX, on XXXX. and in realize as fiscal capitalize efficiencies our well the fiscal we changes implemented we enter leverage model, and as identified from is operational to our to distribution these goal
Turning to the next margin see and revenue detail multi-year of the operating targets. slide, our you can
Our by XX%-plus fiscal objective X% XXXX operating at revenue to least grow is while achieving margins.
XXXX fiscal is operating to driving operating and XX%-plus Our target leverage margins. obtain continue
a revenue to improved our Our financial repeatable will also more key of component continued be transition performance.
on fiscal revenue repeatable see XX, is target XXXX. you As our in slide can XX% to achieve
from for in benefit began customers. existing transition first the software our Commvault fiscal subscription XXXX, subscription renewals significantly licensing opportunity of XXXX Given represents fiscal to to
maximizing driving value. the contract we focus and annual subscription on revenue, As continue of we'll repeatable value utility
As previously approximately million. discussed, is $XX our current ACV
of focused on reducing $XXX subscription-based annual Advance. foundation is the million when areas fiscal since with and pricing. fiscal the XXXX, end goal started start head count and is In year, goal $XXX setting utility The of value X% move began contract targeting such approximately for ACV we've approximately Commvault cost savings XXXX. achieve to by the by as times we approximately we X our subscription Our of been million the the to of
Advance leverage One on partnerships. to is of and of and sales and principles a will percentage as operating margin our we expansion reduce the this core of focus our marketing successful, a accelerate revenue. distribution drive alliances expense through are If
XXXX. is expense this As of goal to you to fiscal in XX% on reduce marketing fiscal our XXXX can in see from slide, XX% revenue and sales
Let and to gears me balance now shift flows. our cash sheet
balance short-term approximately and As XX, million. of was cash September our investments $XXX
the million U.S. to from back foreign XX cash $XXX the million cash and of international of million $XXX June amount reduced $XX repatriated as XX. of we quarter, locations to of September as held the in During
cash over XX across spread international remaining Our countries. balance is
in goal laws as may manner be is able to the do limited continue we so return back our as cash economically to possible maybe an While not much by or regulations. foreign efficient U.S., to to and
million, believe define of from up we future less majority approximately which net do Xx the flow the period. However, which cash that U.S. flow, in vast was we was are to will cash concentrated in operations the $XX.X result be as we flow prior-year over steps expenditures, capital Free cash taking
deferred revenue As $XXX our is balance XX, the was of to approximately over Nearly, period. XXXX, services prior-year is of customers. that September deferred invoiced been increase revenue our million, all an X% of has which revenue
update me you on Lastly, share let our repurchases.
includes which transactions million stock XXXX, our an fiscal During of approximately average of common share. have through repurchased shares at $XX per we approximately $XX.XX cost yesterday, XXX,XXX or
has available Directors prepared That another call of morning, to for remarks, earlier repurchases this As turn disclosed Board and now share to our I earnings and issued our amount concludes program the million XXXX. my recently Bob. total extended March the through Bob? over year increased for the $XXX back in release will
