CVLT - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Commvault Quarter One Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please Instructions]. [Operator welcome your speakers I would today, of to like now for one Mr. Michael Melnyk, Relations. Director of Investor ahead, sir. go Please

Michael Melnyk

call Good today first for thanks XXXX to our quarter morning, fiscal discuss results. dialing earnings our and for in

statements to like and economic and the regarding performance. we in include Private that or the of are the such services, call, session difficulties factors, forward-looking relate uncertainties, the materially inherent call, financial Actual may at future the that Securities XXXX our statements, related remind statements Before and to the on future Act beliefs, everyone general statements during differ projections current as our expectations. made development, sale and plans, competitive of provisions All and Safe regarding delays I'd manufacturing, intentions this based the are marketing Harbor including and software begin, results question-and-answer risks including Litigation to with and pursuant end to of of products expectations, conditions. may Reform due the

call these recently the of Form other responsibility no to and contained Report press and in in Form Annual our risks our any affecting our and discussion on our business, in Risk SEC please in The filings, our in circumstance. a company For on and undertakes XX-K update Factors quarterly uncertainties report conference cautionary our Web this see contained most statement under and release the other information site. and on XX-Q, the

as remain our features timing and of functionality sole development product at any as the addition, well release, In discretion. or

on SEC the to today's conference site. earlier our announcement Officer replay today's webcast A will measures Our call has financial for morning and this an Mirchandani, call. webcast. press This me are morning following non-GAAP conference Sanjay also filing. recorded Sanjay our Executive services found Officer Web Q&A. available press our Wire Brian share Carolan, The the can X-K be on opening to also available this is will this been the release Chief Brian for An and a release between With Chief we was issued call and Web and the to call Investor Financial Commvault; of of being over open reconciliation is on we GAAP and will be measures. refer on and site site. furnished President as remarks Relations call, is the the Web commentary before Commvault. On non-GAAP and the available archive each of related

Now, I'll turn the Sanjay. call over to

Sanjay Mirchandani

Good morning. first you, results. our today Thank fiscal for discuss quarter all Mike. you to us joining Thank

Over execute we’ve ecosystem. internally we spoken partner the everything plans and past deliver confidently quarters, portfolio our simplify the best-in-class our need a and do; about crisply through and several to

to their help Commvault was further their multiyear when companies three agreement QX, a contribution successfully PO started in in cloud, and as first our During all We signed from say size. with an subscription in posted Solutions, was ever accompanying Quadrant virtual largest deal we This and environments. all-time categories using week Gartner are cycle. history, to Recovery average highest into report; XXXX technology public a and physical named deal. leader last renewal the of I’m score Backup we move subscription and validated deals to first Capabilities the them our us We enterprise our for Critical in high the the record increasingly the We an hit cloud. vendor seven-figure proud Magic dollar that Microsoft. received eight-figure

the we FutureReady our second, of our excellence past we’ve applications initiatives. To grappling before, last critical week, management security is when over our and especially composed our compounded with intelligent are executional few rapid and portfolio; discussed, change elements; data the previously our three we’ve complexity with head threats complexity at tackle on, non-stop event experienced ever As which more enterprises months. infrastructure than first, partnerships; especially all unveiled vision and third,

journeys. new reduce our we Let’s product gives never one one, a and each stop reign are Commvault we this data in a to in to revitalized protection edge newly backup competitive is as complexity, stand-alone and Both accelerate critical new discuss It organizations by our can expanded data industry. cloud very be core a starting Commvault It to a and portfolio. At and with We who it the portfolio fragmentation together recovery bundled empower complete offering. product. and innovating. us the a recovery includes FutureReady, unveiled disaster

integrated We today's DevOps professionals also HyperScale This to aren’t use application which capabilities for next protection generation now achievement. and journey. accelerate Commvault are Commvault with best learning brings automate workflows management. workloads to with digital enable is using product, And the of machine the help together introduced deployments X, accelerate flexible for AI and our support But storage in the is and transformation enhanced containerized significant Hedvig their We Kubernetes HyperScale of data industry, world their our pricing. a has Hedvig tools they enough. remote available in to are that unmatched customers these believe and products cloud-based low-touch, alone are light-touch,

on customers. are a critical Metallic SaaS we’ll partners sales QX our Azure, partnership opportunities. activities working be focused bringing to closely Microsoft we with multiyear engineering value more strategic in to 'XX, offering go-to-market, In and unlock of our with on signed Our joint

executional brings partner the the well-received and contributions initiative, third We a partner recently which and simplified further excellence. me also To program ecosystem. have to a we momentum, launched strong from interest

stone teams unturned. leaving go-to-market momentum no and are gaining Our

to deliver for ability mainstream Our now is solutions, mostly complex remotely, us.

our Looking and cross-sell lifetime ahead, to our us and we customers portfolio and will customer ability land new believe upsell to solutions maximize enable value. enhanced

highlights that, 'XX outlook. let we me turn and With optimistic financial growth. do, to we’re While to have Brian QX to to sustainable our predictable it our return work Brian? over provide some about and

Brian Carolan

everyone. good Thanks, and Sanjay, morning,

Before discussing up revenue year-over-year. was briefly our recap X% million, results. our approximately outlook, I’ll Total $XXX

an $XX.X first increased million, Software year-over-year and record. all-time products revenue to quarter XX%

growth was revenue successful in large and initial significant a increase subscription enterprise a Software by renewal deals effort. driven

a $XXX,XXX year-over-year. two to year-over-year very of by transactions other higher XX% the eight-figure from all-time software revenue These approximately largest addition quarter to seven-figure large transactions XX% increased This deals record software of total approximately X% these ago. increased and XX% in purchase history, increase contract exceeded million. transaction driven XX% $XX current deals. with Software number ever size to included transactions compared large represented year-over-year deal in over year was The $XXX,XXX, an company approximately large the average deals. in an order subscription value, in contribution the The a

few these not to ability contribution from we be influence pleased subscription While our deal which for large considered to mix Fiscal services. deals, services size, and recurring revenue baseline revenue and was on-site impacted The are declining next the average the the was with they million, primarily a quarters. COVID-related quarter due $XX as should approximately year-over-year. professional restrictions, as close first well decline X%

term, to customer. value conversions the impacted benefit growth legacy us the because associated addition, active lifetime longer strategic of customers with drive perpetual In of revenue to licensing These the opportunity subscription an transition by arrangements. was over maintenance

Let transition me continued model. our now recurring to discuss a more revenue-based

less cycle. time, products we contracts contracts. includes At software our XX% for subscription FY represented approximately and and to prior customers’ sold know, you and 'XX, pricing workloads Recurring revenue, XX% subscription year for business. total perpetual usage-based utility accounted primarily that of purchasing that which preferences. opportunity This of to positive align introduced software revenue. our than 'XX, revenue. As and maintenance, we subscription our a Beginning renewal the inflection first our marks represents in subscription-based FY 'XX FY point of

to FY upcoming 'XX cycle renewal revenue beyond. serve expect and a in the as We tailwind

pricing of As at Sanjay packaging that described, strategy. an products, streamlining important announcement we represent the our FutureReady and made

and subscription as revenue, in We percentage increasingly customers the recurring and three evolution a annual products more subscription-based to our be order to and will ARR. measure recurring revenue of consume products expect and revenue will this metrics; recurring the our result with percentage on consistent or time. In way we operating a of total focused continue best over as revenue software business following report services, revenue even

expectations. a 'XX. subscription We FY to FY each total 'XX, discuss revenue these XXX of of XX% In approximately exceeding approximately net than above moment QX represented metrics. our customers I’ll rate in XX% and less added retention subscription in our take software initial quarter Now, was subscription XXX%, revenue versus the dollar

million revenue to recurring to XX% XX% of total increased total in $XXX This in FY compares the represented and quarter. revenue year-over-year 'XX. Our approximately XX%

Commvault’s at the recurring revenue introducing quarter, or ARR. a We in time. point are value also This define annualized recurring streams revenue of we ARR as annual

ACV, of believe replace recurring better our will because streams. revenue ARR Going forward, a is it measure we

our XXXX, increased As XX, approximately of $XXX X% to million. ARR year-over-year June

Now, I'll discuss expenses and profitability.

and QX and on COVID-related 'XX remained approximately doubled million, in note XX.X%. We and dollars QX reductions. expenses. Both FY an expense FY of to $XX we EBIT both expenses, declined the an During approximately EBIT $XXX quarter, margins 'XX operating of of of EBIT and year-over-year from margin EBIT that cost million sales resulting X% expenses, $XX.X year-over-year. benefited million disciplined including temporary

as of approximately balance are while business return to reductions reductions QX, these in to half likely to We these levels expect prior of temporary repeat the near normalizes.

cost prudent Our focus on management continues.

financial our discuss FY 'XX. outlook QX I'll Now, for

expect we revenue of For $XXX the FY quarter 'XX, approximately total second of million.

We subscription be and note $XX lowest to the in revenue the expect at is least FY million. the year-over-year renewal or Please opportunity that year. products 'XX software flat QX of

overall second more to SME margins strategy FY approximately balance our see X the product in certain go-to-market renewals, the of motion the of segment In refined said, new contribute half results year. fiscal macro points basis to meaningfully for and gross we addition, challenged the That and the 'XX, our create expect HyperScale XXX Hedvig of should continues of we COVID in Beginning QX third-party the into and benefit year. uncertainty. platform, to remains a royalties to believe integration pricing reduction with enhanced by

also normalize. begin that reductions temporary some QX the of As in expect noted, saw cost we will we to

OpEx we result, modestly a increase expect sequentially. As to

'XX aligning remain approximately we've levels, operating With XX%. other our QX be identified underlying to actions. FY base revenue will to we disciplined margins EBIT potential that, and expense We in expect current cost-saving

QX share our projected shares. Lastly, is approximately count XX for million

remarks. Sanjay Sanjay? the to turn Now, over closing some I’ll back for call

Sanjay Mirchandani

Thanks, Brian.

focus I’ll to our excellence. Before reaffirm a questions, take partnerships and on portfolio executional moment

portfolio I immense advancements, and our customers. demonstrate to X, our value like to First, commitment innovation bring believe HyperScale

like strategic Second, line customers, and while with impressive McDonald's endorsement the last, increasing we provide And ecosystem top and choice we flexibility our partnerships our portfolio, need. and can customers our marquee our expanded Hopkins, excellence, efficiency. believe reaffirms partner Johns from executional the to and grow ability

open let’s it Our performance for this we where indication past questions. quarter is to up solid Mike, of Commvault a take expect next.

Operator

[Operator Instructions].

comes question from Ader of first Your William Jason Blair. from the line

is Your open. line

Jason Ader

a Ask on bit bit some the a a project deals, eight-figure was, of large what give more deal. it of exactly little they about maybe the vertical what color type and little Could the you were us particular in clarify that to to large or this trying it And this competitive was of of that was do, displacement just recognized there chunk because was renewal? a was upfront, that a – then was XXX? it a

Sanjay Mirchandani

It a obviously financial in had what suites So account do unique product sort use then, data could we required protected optimization a sure point a displacement. activate show all make services. was to of the that. a it had they view. and come small in wanted customer footprint case to and We And that of they very from competitive our the was

protection So a Activate-led partner and – that piece And of followed and of data it done done that was bulk remotely. business. lot of was with the an a

Brian Carolan

Jason, this is Brian here.

to pull It color closed that deal a actually do to Just it quarter, additional in future that. some quarters. and within not was from was we sourced add so

And asked We’re we The was QX. you can that the it. of about recognized environment. do this pleased recognition to current fiscal in see software in component that secondly, then

Jason Ader

I of What you mean like you you a Okay, themes right I cetera. large – from But sense great. do then they on a of the exactly that projects heard quarter where pandemic. large had attribute a there happened very some in instances many had just customers understand need us that why anything I expect spending us can And a doing be that customers downsizing pretty different deals deals this these when wouldn’t lot size, can closed, the only certainly of We’ve deals they common et deals of and I is impressive us a some We’re deal having numbers give lot large guess now. did? guess all like what too? close, that. sense give help to and of

Sanjay Mirchandani

it. So, I’ll simplify

data agenda as that data bubbles I fragmentation, think came the COVID customers, data important. up once of workers, on to being remote with real, access to back that protection continuity data implications because no centers, for the protection business became the top

And then how you as if you so I process, the I structural saying, part And, happened, the Brian, world once okay, would, did order top, reprioritization is look data to protection the bubble that’s think up want this shift, it. and of to new -- at the of

Brian Carolan

I Yes, now we’ve from good our would for is think critical. subscription to right and it opportunity say customers and – existing start done renewal good a that I incumbency

they lot of So make good of we’re taking really us as to them coming care and cases sure well. able we’re a in that are to

we’re So pleased.

Jason Ader

renewals? were cited, And the very two other you that deals large those

Sanjay Mirchandani

Yes.

Brian Carolan

Yes.

Jason Ader

guys. Thanks,

Sanjay Mirchandani

Thank you.

Operator

[Operator Instructions].

Rakers. question Your Aaron the comes of next line from

open. is line Your

Aaron Rakers

quarter. questions little into dive want more the opportunity. Yes. Thanks the subscription taking the congratulations kind to on bit of for solid I and a

think of a you cross-sell, for through of way about is the so business And that in framework that or should like? looks base remarks about how opportunities. have the then course seen on bit going those of How we Any in about how What of mentioned about after talked that or you of also context of opportunities? the year? base do that you’re subscription topic, far? there think the frame we we prepared the upsell this little of what that think to As opportunity, be could that contributions executing large subscription on kind us opportunity a

Sanjay Mirchandani

It’s Sanjay. are Hi, you? Aaron. How

Aaron Rakers

Great.

Sanjay Mirchandani

remote I’ll more expand, Overall renew cycle, So more released, I’ll like a do that first and part just Activate, Brian part. of product and to we scenarios. of which talk we let to classic the they sharing as type data sort are latter question for first talk Office to your subscription, our the customers take with line the have, allows on things XXX branches them was new our with DR Metallic

the an the with data we we the So our as have have to take what they now. intelligent but of evolve really management. portfolio calling lifecycle to sort we’re in opportunity opportunity of days, Early portfolio more to customers an

Brian Carolan

here. Brian It’s Aaron. morning, Good

So to just on the touch subscription opportunity.

XX%. is a XX% about for us fiscal it’s this starting now what several pricing of for In and our We’ve software majority and to now. last it quarter, to think of models. our And You’ve been continue products subscription. been go revenue following to was We years was that This that the to reassuring become products past on from almost was see towards subscription-based journey. software revenue is tailwind. a headwind year, us going

happy more near software that’s think but start being low the we’re off for renewal point that of calls a in spoke majority QX. is a about a That’s Also million good long we’re We specifically we’re $XX second is opportunity. in represents little both The about why us in a QX with really the the the to we great year with prior cautious term. on that that. of and opportunity terms of the year. So half. for opportunity the earnings opportunity that,

net we was had As XXX%. above I rate our mentioned, retention

We’re And year time. that pleased now new come product seeing That upsell year. cross as increases; to will with with in the sell, we’re start the opportunities launch unfolds opportunities. our

Aaron Rakers

an of the Microsoft? side that real you kick perfect. cloud strategic how in And incremental just the the a public bit into you’ve much then in more the think update how give progressed? on data past from When little us to quick a arena. the then do up as with I starts talked managed Metallic? That’s And talk that’s Can revenue follow an just a we you cloud bit about with perspective can you’ve business, think that alignment about contribution

Sanjay Mirchandani

our So, our And it to a again, Microsoft. one’s we is not partnership Metallic. them. relationship a We’ve look – ambition the it’s way at Azure, �� multiyear we’ve multiyear. Aaron, is on focused with successful SaaS, this multiyear first had with This

will traction year we seeing plans the think as and build I start later in we beyond. So the out

about excited that. We’re

and some alignment. customers we’ve to elements do solutioning, real. the together the – make it’s a sure to all tightly to that made make we and think for engineering is of very nice The relationship. But it’s and work technology really commitments work I it go-to-market,

been customers place for internally number our you public we’ve that gotten so were reporting the it’s on around well what That data. it’s a don’t billions growing On to healthy based we and But that quarter-on-quarter you getting the that’s where tells XX% point have over surf, cloud we say [indiscernible] it. in billions I and that shared would historically, written a to and maybe we clip. roughly been and release

So Critical number one. and we’re said Gartner what going. Capabilities cloud their list that’s where And in physical saw virtual, we’re across you

Aaron Rakers

you. again. Thank Perfect. Congrats

Sanjay Mirchandani

Thank you, sir.

Operator

[Operator Instructions].

comes Your Markets. Kurtz the Capital Alex line from of next question from KeyBanc

Your line is open.

Alex Kurtz

Yes. Thanks for taking the questions.

the opportunity. to back renewal Just

the saw you you I these helped nature say, deal of you this what better million the because the large view with guess rates this subscription, Given larger deals, that to improve deal, competitive move with to are renewal high-level guess, subscription? deals? eight-figure the there? your is, to win this the has then and does opportunities? over, the how in see changes move competitive question guess on I these impact and of subscription $X.X And move larger to So nature how size future able opportunities I

Brian Carolan

It’s Okay. Brian Good Alex. morning, here.

to that categories. a try in unpack different couple Let’s

it refreshing creates is So yes, to really the that renewals, the see. opportunities

to just going year for to positive the this a us got start. wider importantly. this company off And we to when while. Again, We’ve good array a up point for our of weighted more a a data towards a with the in protection. not It’s been and be more product of lot as conversations but offer second is we’ve opens it a of there, we’re go portfolio to of we’re at customers selling the first them. inflection half So inflection. year, It’s

a moving terms into I of their that’s won’t exact say help we gives that. So us. in the reassuring in workloads, data that, model prefer I sometimes options with us to we they rates, all cloud, distributed and this that get thing do but and will whether a things that about for often win they’re they’re more subscription lead them pull to fragmentation, whether

we So them. it’s a choice offer

Sanjay Mirchandani

quarter first our times. one it’s piece, under but belt. ready, renewal subscription are the We’ve ourselves year. interesting these We’ve had On gotten our

making focused conservative. and we stay just we’re sure So

Alex Kurtz

To follow started that talking much million changed or that year --? it XX has up mark, fiscal since Brian, you last number about

Brian Carolan

It It stayed in basically has range. not. that

Alex Kurtz

Okay. Thanks, guys.

Sanjay Mirchandani

Thank you.

Operator

next Your comes question from Fish Sandler. of line James from the Piper

is open. line Your

James Fish

to guys, quarter, ARR Meaning seven-figure double I around on there. understand was it Just the efforts? and cross-sell little average more the was What on record? that deals what size upsell disclosure. kind Congrats record and get a appreciate related wanted color additional the wanting the $XXX,XXX greater deal of to marking in terms bit just it? or caused large than it bundling click and of more drove

Brian Carolan

Brian Hi, James. here. It’s

closed. that that talked sourced deals and was some But up we we that then So the enter did one spilled really quarter already from renewals with large in sourced the and call. disclosed closed QX. seven-figure That last We it into over large some a that followed things. earnings with about, couple QX of The quarter. different within on We largest hand. were

and that displace a the able and happy have fact it’s solution their have that to a to and you when other in you that. incumbent So solutions offer they you’re they’re the have not the to we’re with place, competitive testament customer

specifically products customer So need. Activate, that the with the drive And really that and also helped new resonated drove the offerings, deal. of

Sanjay Mirchandani

Sanjay, it’s getting – quarters that full James, add for five on and execution. now talking would I focused execution, I’ve on simplifying been really Yes.

go-to-market their what partnership do. did models, they they’re and – we Our we kind our hoping said stride hitting would we of now were teams, of sort what would

as So well. that’s helping

Brian Carolan

mind, is in year, lot than the only for here And nine less keep months. a a leadership in of many sales like cases James,

these that Sanjay’s point, of form up leadership starting deals. to field the is again, knocking the show down enterprise in seven-figure in to So

James Fish

I It just for ones can Yes, I you. two in And was agree. sneak good if quick execution.

week, customers? FutureReady. product you interest main last So was was had with from new launches guess what you of the what really Obviously, I announcements. of of the in hosted a bunch feedback terms

generated Just X, with most curious what contribution HyperScale the And which Hedvig’s but this understanding quarter? becoming that one as just was interest? more like then it’s to integrated,

Sanjay Mirchandani

going together can’t a the I child, industry of us as customers. pick favorite lot and on say I’m the made to feedback broadly so as that a portfolio sense well follow in to the folks pieces So, that the the both bringing

all as a product sort native really always automation our with the We DevOps customers our and we’re stand-alone a I’d the this reasonably Hedvig customers at it, is are support you sense out scale-out looking that inside best bringing and the quiet integrating And making work the so is with way in really say it’s Kubernetes what had core, giving file we’ve generation. focused – as could enhanced super, And of core. simplification to use. lifecycle of which protection so when at – using I technology enhanced some next it. so and really coupling work simple capability on kicking we’ve with the of we’ve put they – best of capability granular systems, and a of Hedvig, it they it, the Hedvig the have is of the DevOps pieces that, it, And been now asked with so is is for we really of more bringing was this. that simplifying sort storage container it, and into tires super through it, in that about it when capabilities management but that Hedvig Hedvig customers it and we’re acquired now can data doing appreciated. backup of really known we capabilities DevOps and say vision – that we

what was well the in on really portfolio received use by simplification large, So of and the was received depending case. audience, it the and the well was

Brian Carolan

the terms what helped James, one insignificant. basis more avoidance, about points. XXX insignificant and add was sales cost of behind cost the Hedvig moving in us with that, point HyperScale script that That’s to picked a by up reduce in the underlying introduction not do X of not the it’s to just we our technology it we of forward but

So that another launch. was component this of

James Fish

Yes, understood. Thanks, guys.

Sanjay Mirchandani

you. Thank

Operator

Instructions]. [Operator

Your next question Jefferies. from comes Brent Thill from

Your line is open.

Joe Gallo

for to This is seemed base the on Thanks really for Is appreciate to subscription the I Americas color, regards all or the it most the decline. that? renewal helpful. grew guys. of Hi, due other in questions. for that software, In world Joe Brent. it’s being was really the significantly while rest reasons the there of U.S. to

Sanjay Mirchandani

are true, portion absolutely. renewals was that Americas from holds the to as in we able The the That well as well. of largest PO the as pull large the in were Americas

a just good of coming fact out for that’s this. So really us

Brian Carolan

end Great they’re COVID of execution and bit the EMEA, little phase in businesses tail the of U.S. first – sort the And COVID that I we the to the Europe. medium-sized in more think impact, saw in – exposed we of a still

Joe Gallo

COVID, decline And growth Okay. takes for there’s COVID the now guiding But then improved. right. a time bottom for few nicely of you grew from the first I line revenue benefit then in but in highlighting it’s quarters and on next you different year, slight the on $XX and million then expenses. thank a because for you’re puts

about growth far two you term revenue year are for thinking the business So profitability? and longer as us as think help this how next can or you

Brian Carolan

Yes.

that year-over-year software for terms of driving my was last in slightly revenue a down acknowledge revenue, force that’s really comment and total we flat us. Yes, year-over-year. at So is

for we inflection We as quarter, are an at the said. point

uncertainty in COVID right now. still the We’re

not is opportunity as renewal large. Our

was think the it In the SME, and impacted fact, is mid less it’s that by than particularly small enterprise, We uncertainty. QX. much in COVID

Having So there’s some a year optimistic second about to this fiscal I that, of and think the return said growth. half weakness we’re there.

also the renewal We’re aging our we’ll have And larger and have that going strategies in terms belt unveiled. with to maturity. and new experience our subscription products opportunity, we and overall have we more under quarters just the of pricing

poised our hopefully of but So That’s this COVID are point the we out objective. growth. those we and combination all that of by things, uncertainty whole return to in time, come to

Joe Gallo

And Brian. a Thanks, could in Awesome. quick if sneak one. I

how from highlighted you’ve Any XX from opportunity of million is So the big 'XX. the 'XX? opportunity sense

Sanjay Mirchandani

did We not. going up. It’s to be

that into will future get terms that quarters unpacking on opportunity. in We of

Joe Gallo

Appreciate Thanks. Awesome. it.

Operator

Eric line your Capital. Martinuzzi comes Lake And question next from Street from of the

open. line is Your

Eric Martinuzzi

as to Hi. where on the well XXX for was the million were XX back me the kind I XXX just Can help the of versus first being midpoint million parse going and of QX. at My the congratulations million. upside then curious, that out guidance you the guide? about quarter, gave when you execution you

Brian Carolan

Good here. It’s Brian Eric. morning,

do that large So have the closed deal We quarter. not and right, that point obviously visibility that we sourced discussed, was in into at that in time.

of skis well want in cautious the over renewal renewal as I think back right didn’t We maintenance close to COVID our May of as the subscription our assumption the middle on being opportunities terms crisis. that early and in of rates slightly were also we our opportunities. in some get

other explaining in than So And the all that. be position way. I’d we’re pleased rather with that this

Eric Martinuzzi

a agree business software what about, we quarter percentage kind to current And point. kind subscription then for as software me quarter? of insight software, of percent of XX% of outlook, referencing again that the Yes, you’re you talked current for can scrip as as of the a the targeting you on give QX,

Sanjay Mirchandani

XX% the for north won’t this wouldn’t quarter. get at of of longer-term easily. be guidance to I year. when said XX%. kind That’s baseline the we specifics Having unveil that should into on during expect happy So we be pretty that more that, it

Eric Martinuzzi

Yes.

Thanks. it me. covers for Okay, that

Sanjay Mirchandani

Thank you, Eric.

Operator

Instructions]. [Operator

We from from have a question Jack Needham. Andrews

open. is line Your

Jack Andrews

I the you’re these unveiling, some question. was Thanks where you terms educating my of capabilities? taking of the for Good new morning. product that just all channel on offerings are in wondering, new given

Sanjay Mirchandani

It’s in up Sanjay enabled, sell we’re throws the it. last We getting thing, to of to unveiled ongoing And the here. channel week. Jack. It’s an them speed, getting ready

So that’s underway. that’s well activity

Jack Andrews

capabilities as organizations? of and the is backup around the about HyperScale And engage like then a of recovery, speaking X different we new type products think a buyer follow some to in you requiring with up, Okay. generally introduction this disaster when just versus of

Sanjay Mirchandani

No. Between like X, talk disaster cloud XXX or be on that recovery DevOps the just the more buyers, products, buyers the type units, and but for do Office our Where same. to capabilities are so some we similar. have tend to large fringes the protection business the the by HyperScale the Hedvig more have data buyers newer a companies kind of with backup, and to SAP,

Jack Andrews

questions. my Thanks taking Great. for

Sanjay Mirchandani

problem. No

Operator

And your Insights. from last question comes from Srini Summit Nandury

open. Your line is

Srini Nandury

question, Congrats you Thank what you problem on launched? what to And Commvault? my can bought terms, Thank are for what for solve And Sanjay, taking the use recently in right. you. the solution it did HyperScale layman guys. All Hedvig you? to the explain for us you quarter. cases

Sanjay Mirchandani

Okay.

Let’s unpack that.

So Hedvig like call is software what to I defined product a storage next-generation system. a as the

– was built So it for it’s multiprotocol.

so And machines, when virtual containers, has optic storage forth. it multiprotocol, so it so has it I has and on say

appliance, of one software appliance you brought below with What was our layer, software-defined in enhanced that multiple HyperScale capability, to we’ve types which now storage So that our can us rich level it do of applications. it.

in that the of There’s capabilities set they a health enhanced on of system, bring rich on it So and a itself. it and the gives into scale-out cloud lot capabilities. of

can On stack, that right, is own, its So and more it’s a use entire clicks, our few enhanced us lot capabilities container DevOps data the super of helped for integrated, integrate. that’s containerized customers. we’ve In applications. engineers also latest Hedvig to HyperScale up build And next-generation doing present we as a of simplified use running the protection cases. and Kubernetes tightly you’re then how with and release is complex type part that

was level. hope of So it’s that right that. all the I

Srini Nandury

you. Thank

Sanjay Mirchandani

Okay.

Operator

and concludes joining. conference gentlemen, Ladies Thank call. for this you today’s

You may now disconnect.

Commvault Systems (CVLT) 28 Jul 202021 Q1 Earnings call transcript