CVLT - Earnings call transcript Q4 2024

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Operator

Thank you for standing by, and welcome to the Commvault Q4 FY 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Michael Melnyk, Head of Investor Relations. Please go ahead.

Michael Melnyk

Good morning, and welcome to our earnings conference call. I'm Michael Melnyk, Head of Investor Relations, and I'm joined by Sanjay Mirchandani, Commvault CEO; and Gary Merrill, Commvault's CFO. key Relations operating website with on is presentation Investor the for earnings financial metrics and posted An reference. and Statements include made plans forward-looking will prospects. statements about on Commvault, future today's call expectations, to forward-looking such and statements subject All risks, are assumptions. uncertainties in results today's from uncertainties Please Commvault's forward-looking release the that the with SEC could most refer of those discussion actual filed and for reports cause earnings a language to periodic the to different cautionary the the contemplated be in materially recent risks statements. company's and Commvault assume obligation update to does any not these statements.

results call, Commvault's GAAP presented this on basis. again During non-GAAP be us. A can between financial our and are non-GAAP joining on you Thank for the a website. found reconciliation measures

Now for I'll turn it Sanjay? to over Sanjay remarks. his opening

Sanjay Mirchandani

for thanks QX primary across joining a our for We and morning, fiscal us quarter, QX fiscal beyond. with an setting Good momentum from Mike. year year continued you, breakout all the was capping ended KPIs. year Commvault Highlights outstanding for and to stage year revenue and $XXX customers, today. 'XX Thank strong increased we $XXX the rose and ARR ARR X,XXX million. over this SaaS Subscription $XXX XX% XX% to include: million, million. and increased $XXX jumped XX% we to million. closed ARR to total SaaS did profitably. with nearly Total XX%

that to a recover. know fiscal empower our dominated to by we shine QX resilient the and do, recover. they a in Organizations This results be and Commvault they year can need plays world what Our critical ransomware and bright are customers light role is on cyberthreats. hit, attacks when

patient within a route and and I with the to and When level we our offering reinvigorated we mind, financial And that in doubled a fastest down market, journey point, we and a motion, on Commvault's we I tremendous best-in-class growth had that go-to-market we the company the the a And growing to the of of modern and SaaS had company. Our perpetual profitable to joined ecosystem did financial in growth speak expanded our of sustainable core our launched is brand to unlock that one all bones the started subscription the X [ results while ]. We SaaS. To years from we technology. foundation strong great model ago. With in this kind its industry strengthened strength to our said legacy of today. company Commvault, results. multiyear notable hypergrowth with goal business new opportunity transformed focusing and some partner

total million of million employees ARR what Over cash accomplished through free since X a $XXX Commvault. a year to the like to over and CAGR. XX% more returned offering their commitment consistently over margins partners and years fiscal We XX% generated proud shareholders than of repurchases. stock $XXX of to we've and our cash and customers, I'm thank profit trust delivered for would ARR tripled. or We 'XX, from better. SaaS of past CAGR a at and XX% ARR Subscription hyper-growth increased grew at extremely

everything Our excited. to journey company our more resilience. is cyber November, only and it getting shifted we In represents

the state-sponsored CSOs As ], the is immense be recover Commvault is scale talking and C-suite today Board and exactly Cloud, challenge resilient. platform. of I the alluded rapidly put enable breadth intelligent our automated, resilience in [ cyber-attacks. organizations previously, This to pressure to cyber unrelenting we biggest and We're These what face the with attacks. and attacks

all they and at and to any recover They AI from customers their possible recovery so any data any autonomous infrastructure and workload, offer enhance our can anomalies recovery environment detect secure location, Customers we checks location at TCO. their that Cloud, the Commvault can and perform process, proactively scale. threats. can to For any recover health technology can and the across lowest utilize

Commvault's provide migrated their infrastructure this that difficult and and marquee workload XXX Fortune of differentiated retailer grocer as Companies, platform clients to quarter and One cyber strengthen Albertsons into security, attack apps integration. a is wanted the nearly resiliency was and to hospital a all Last additional for the our cloud. year protection and year recovery, cyber ransomware unique implemented particularly systems doubled. cloud The

will their announced and location many outage clean, plans be of Building spin recovery weeks cloud. cyber-attack. one the of operational data, Yesterday, concerned technology, acquisition when network large mind, we so we're Latin fully these up providing platform, about [ as ] Cleanroom they X an workloads and was cloud why With their a winning ago, how easily them. from unrivaled they unique with recovery response the chosen the [ proactively to production and they risk their and and this an applications recover isolated data ability peace recovery. on-demand America offering a in in users frequently rebuild able bad rapidly for we empowers critical on to X actors cloud are protect cyber-attack. which With can immutable further there. manage they strike we These get recover even new by Commvault Appranix. can an as not recover of and also have customers Cleanroom competitive market after they quickly hospitals examples offerings. enables discover, be the remote closed to critical We're stopping and organizations we're of if their need the or and is just copy to on-prem mind taking hit. But infrastructure of this attack can a in can ]. With over ready of on recovery are With capabilities, of Commvault, They Recovery. quickly to tap that top recover

best of an and with capabilities business an with marrying was both. risk rebuild SaaS than Appranix's That enable any attack, event and comprehensive With location. it unfortunate recovery together. Commvault days confidently CIOs their we help We time believe take numbers With By quickly customers fiscal will closing, the believe I Commvault to we to extensive and minutes readiness help to capabilities, to and that or new hours workload discuss after the is With resilience the in the the stay the AI-enabled more accelerating platform can we platform are in rebuild cyber way, cloud-native all, engineered forward on I'll industry. work money. believe recover or after mind the offer turn times recovery Commvault across CSOs outlook. Gary? a for this be continue suffer the resilient. we or 'XX and year if In This people our hybrid Appranix an in to provide enterprise that, the shorten for resilience company their attack. best Gary or as over and far growth. we weeks Cloud, to Cloud, manage to takes resilience by most to cyber customers software, environment It our and our available for will best them Commvault's It's a rather with level. year attack, insights customers whole

Gary Merrill

Thank you, Sanjay.

fiscal our in metrics year the key mentioned, expectations. strong of coming all ahead with primary Sanjay we As momentum closed with of

executed platform revenue full QX quarter field, fiscal growth. results of and is cyber our in discussing the year driving outlook the for messaging fiscal and double-digit the our 'XX resonating Our resilience recap I'll team related another and before in 'XX. year market

Subscription XX% all a revenue to grew in SaaS from increase reminder, $XXX licenses. by which exceeds growth on revenue a by unless revenue, our XX% As otherwise term growth fueled solid rates million, double-digit in year-over-year XX% now increased portfolio driven total and a was basis revenue. growth are noted. of Total software contributions subscription

software reflected and and land our an over a of quarter fiscal posting deals. accelerated $XXX,XXX improved renewals between healthy we closed close growth term saw both balance from the growth. region double-digit strongest Once software and revenue of year. transactions International XX% larger rates revenue software both had expand again, we increased with performance, geographic perspective, regions volume the Americas a term strong and From as Our

best revenue delivered licenses flat as at verticals limited cyber and enterprise in $XX region acquisition generally geographies. the are new perpetual the as customer million Americas of platform resiliency quarter was traction its in sold sequentially market. license Our perpetual gained additional our year QX

headwind revenue, which from support sales QX to the was for expect $XX includes and perpetual the license in We diminish our customer beyond. and term-based fiscal sequentially million, both year-over-year. 'XX software port licenses year flat perpetual and

by customer accelerated in year license software the 'XX, majority For software related licenses to of and XX% in growth. from XX% revenue from the driven support support to revenue and to fiscal we 'XX This customer arrangements just expect fiscal year of our total compares customer support. term-based revenue term the attach customer full on year, become support software term

and of impacted foreign currency $XXX was we which our year in business licenses SaaS which ARR a ARR. million U.S. approximately million million XX% million. on discuss $XXX both of This fiscal Now the strength few XX% $XX a fiscal as an the constant as SaaS underlying versus fiscal dollar including increase when revenue contracts, ARR, ARR dollars was Subscription net SaaS reflects I'll includes ] jumped continues. strengthened QX. primarily was SaaS basis, to presented annualized QX ARR basis. QX, SaaS XX% QX exchange our QX term-based of a grew of million, QX On by in headwinds business added $XXX and a strength year-over-year the ago. basis, [ an growth quarter-over-quarter euro of total underlying year-over-year, from new of the On ARR, our the

ago. benefited XX% New represents to total both fiscal customer was total SaaS our expansion a and year now XX% with ARR SaaS by year cross-sell From upsell just QX net growth and customer SaaS contributed the activities. strong compared 'XX, a ARR X/X dollar of of being XXX%, existing for of retention full perspective, ARR ARR

margin commissions points QX higher record for reflecting million discuss expenses and with improvement. Non-GAAP Fiscal an We flat I'll X% bonuses million, was of XX employees, margins an against increase continued of were quarter year-over-year. was and $XX quarter. EBIT gross which [ SaaS EBIT year-end X,XXX of Fiscal QX profitability. basis ] revenue sequentially margin margins to QX a non-GAAP and ended XX.X%. the approximately increase XX.X%, $XXX sequentially, gross and term were gross operating XX% the reflecting software healthy increased mix leverage expenses Now and

Our QX business, upfront to include strength our our stock subscription year-over-year revenue growth under multiyear which flows of on repurchased repurchase program. reflecting continued contracts. $XX free QX, million of in we SaaS cash payment deferred and $XX XX% software million, typically grew In

the the of year. the half to 'XX driven double-digit by revenue second full discuss Total in I'll million, results. year increased $XXX X% fiscal Now growth

leverage to continue acceleration fiscal pleased fiscal Subscription year, the revenue Fiscal to grew XX% of are the XX we million, We compared $XXX in over our year year operating year demonstrating the 'XX basis expenses momentum expense EBIT non-GAAP 'XX. were throughout $XXX to points year, million, into to non-GAAP with prior operating XX% growth crossing improved revenue. our responsible revenue total in business in and increased growth XX% and EBIT model. total expect revenue of XX% Full margins to XX% our XX.X%. total

We cash million fiscal to reaching million United $XXX the Full of with year. improved metrics. a milestone flows Moving flow cash 'XX $XXX year-over-year, cash, and the XX% in some for approximately full [ debt with million year fiscal and quarter ] $XXX no key free balance in sheet the States. ended

repurchase shareholders as program, flow. to $XXX of part We share representing XX% million cash of our also free returned

'XX Our $XX. we average shares year during with of fiscal repurchased price

revenue Now now for while are we fiscal rate and continuing full the outlook cash an capital to attractive growth focused strong subscription on With year our I'll and evolution software shareholders. discuss free accelerating QX our return total to fiscal our complete, flows provide our generate 'XX.

portion For revenue, the growth SaaS $XXX of million. both to expect at million subscription $XXX includes licenses and fiscal This which represents to be midpoint. software QX, the year-over-year we XX% term-based

to be midpoint. with of we result, revenue consolidated a we $XXX of QX At growth X% levels, at million to in million, the XX%. to gross the $XXX revenue XX% range expect As expect these total to margins be

to EBIT and the both normal of prior in fiscal XX% related be that earlier XXX expenses did QX not May, to live in in this QX XX%. the at RSA kickoff basis appearance a the approximately margins of occurred non-GAAP investments month which sales conference to points operating will year. our incur year expect include We range of

count share for approximately XX diluted is million Our projected fiscal QX shares.

our to initial Now I full want outlook fiscal for year the give 'XX.

total We XX% fiscal growth year-over-year. expect XX year ARR of

to a both to of growing We ARR the in $XXX and year-over-year midpoint, term software be we expect licenses expect year-over-year. in strong revenue perspective, with to increase subscription From XX% the $XXX contribution revenue million from SaaS. subscription the at to XX% million, range of XX% range

total X% to in expect be midpoint. an million revenue million, and at $XXX accelerate We $XXX the range growth the to of increase of

EBIT Moving 'XX fiscal year and to full cash outlook. margin, flow

inclusive expect SaaS margins be in gross XX.X%, the accelerating business. of to our to the We of contribution XX.X% of range

also event focused stronger the EBIT margin costs fiscal in occur half. of XX% We accelerate QX half prior to year year investments the to range to the the expect and not the be revenue to Operating momentum. including in XX%, non-GAAP should second be first certain compared that did our seasonally margins in the of

flows of full free year least We cash expect at million. $XXX

authorization repurchase the Our on Board our recently Directors to program million. $XXX share of increased

flows. least of fiscal of lowering believe XX%. rate non-GAAP our over repurchasing next practice tax that cash to our down 'XX, few also year expect more from are closely rate to aligns we We XX% We free existing with years. tax with In a expectations XX% effective continue at our annual our XX% rate the

Given our major momentum execution milestone. the predictability in as our Today, the and discuss tailwinds, year of cyber large fiscal the our like I'd to base I'm growing current to that excited revenue exit next subscription we share and field. 'XX. market

representing ARR from an subscription achieve $XXX XX% expect total ARR, contribution to million. to total $XXX of including with ARR, billion accelerating million $X We SaaS ranging of

section our of time of deck Operator, the details metrics, the you questions. in for Relations all open additional line key to website. and For Investor review now please on our trends contained our take can investor

Operator

the from questions. [Operator question Rakers mentioned, first is as And And Instructions] from Wells the you. open floor Thank of now for your comes Aaron Fargo. line

Aaron Rakers

I'm just would in the results. subscription and solid guidance with particularly in general, your for the the side how as year the on we the on given think that subscription Congrats kind do have full curious, about I ARR, characterize subscription the follow-up. growth that relative of be growth expecting? of kind base to opportunity you're renewal relative I Any the framework renewals of would new And the new to of a you've helpful.

Gary Merrill

have pleased and forward it's revenue. your off that looking Aaron, start be And Gary. That we're business yes, growth. we in excited the accelerated momentum to revenue question. and about take I'll the driven growth really will revenue subscription and by

between with rental business a see contains that we the software ] business. that our we our SaaS. see, both [indiscernible] As [ and and you momentum And will know, balanced our contribution

They We to normalize necessarily will X our year, down term about average since beyond, renewal into in incremental -- tailwinds again and fiscal especially see get fiscal in as 'XX, the around saw not we to start terms okay? the our now. are extent we year years will 'XX that

[indiscernible]. see less quantum [ saw between will we percentage the ] balance than FY 'XX. we in will go but be that up, And think we'll So the nice increase strong a

Aaron Rakers

to year. expect kind just kind I'm looks you're over combined, much last conservatism full new diminishing remarks, support X% and towards a maybe year, like out? you baking the talked to or revenue pieces the look of the within how just for unpack Very Yes. the kind we of like the then a curious, And mature/declining I'm guide. those revenue when I What quick X% headwind that it the at helpful. business component -- in perpetual it, curious pieces conservative? implying of related would I the shift those the that about a the guidance how term mix you're decline or when Is just if into as -- the guidance, subscription follow-up, customer flatten in call of prepared of

Gary Merrill

to starting Aaron single-digit flat think low The tailwinds we've decline, between kind and I diminish, somewhere and about thinking you are see what guidance. is of reflected Yes. our seen in

probably run So say, that single would I rate roughly, million business the hovering digits full for that million year. perpetual We're $XX a expect to that to low quarter. support headwind. that I be around $XX would in million of customer expect now $XXX line

see now flattish have So down. roughly essentially then to eliminated tailwinds and more slightly is what you'll been those they're

guidance. what's we see, within that's what that's and So implied basically the

Operator

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

James Fish

And of you think Congrats. indirect now? active in, you pleased your which we investments here additional at additional channel in not historically how much should stuff much great is margins about. fiscal percentage about are of have coming sure I'm the via some CMF, that How indirect of on guys new-ish the And sources your the But of coming are CMO, kind more event year. that end to the looking business how understanding the investments down, the guys participated we're there's getting more as side?

Gary Merrill

Gary. and well. as one this it's take Jim, jump I'll in

a [ the the we guidance. margin perspective, from in say, guided to And is continue see what to roughly, line in So ]. we've Saas flattish top acceleration that in

the continue see different growth OpEx of the past area it on a SaaS we relates chunk early from to huge what month. that some our And remarks, are impact investments, attend you of business, of okay, of down you So to good out absorb. excited during when high next ] you'll some a some margin to and as which move Then the ecosystem that for [ these to business investments focus events, RSA profile, the us metallic is when prepared the and partners we're called I propel move especially year. And the than just slightly the a accelerate.

that should functionality hyperscalers some that propel to the doing and us momentum ecosystem especially made we're cleanroom announcements ecosystem, of go. in Some and we leverage the tied start with as the and really to work especially of we the for

the out the also the building as and it's partner but ecosystem. integrations leveraging well security security the security alliance there hyperscalers, the that only and as with not are it's partners partner So partners

have into that, investment good you is is FY in big a callout it's that in that the So a 'XX. for ecosystem driver focus us

James Fish

sense. Makes

Just to from occurred fiscal seeing a of in the at Sanjay, you any or guys are What you, fiscal this homework from angle angle one. in quick a 'XX. year. Appranix over combination And big terms for guys a that impacts the customer end towards go Can partner merger either you from your of contribution obviously, Commvault. point a

Gary Merrill

Sanjay on and of hit over turn I'll some to he the can off it the take then I'll Appranix, and others.

us okay? us gives about because so first, So actually it world we're XX employees, company, of young a It's really relates resiliency, the to with brings not -- cyber as Appranix further it and functionality into excited customers. XX, even probably

start a build So quickly, as integration pretty But us the to in fundamentally, we do because data recovering this game fiscal into as environment. start to see ransomware from competitive contribution through probably It's a QX, helps what attack we fiscal we'll that recovering going here bring major to rebuilding in QX. from for differentiation and really applications us rebuilds customer is is it Commvault rebuild your your Cloud. a think, in changer, a

Sanjay, Okay. second I'll turn the it for And just part. over you maybe to

Sanjay Mirchandani

Yes.

think existing the there are from in onto the that to, and pipeline. incumbents for it converted got prospects understand was Since alluding more who I you're asking then, customers calls -- we the the competitors merger the date and many For are sort us over several incumbent to announced, was. of help optionality our those with what platform, it's them them of and we've

work us move that's them a customers see say and us with be you're and partners going us I'm campaign with to -- from alienated to -- to sort new ways the have really going quite to them partner and between to this away customers. helping to come good Tomorrow, their a we're for competitor. to on fact, figure of In asking out going feel going

of doesn't a see as it's good So opportunity. uncertainty There's us. We it for customers an make uncertainty all safe. and lot

And with a so going see really in Commvault future. and Cloud customers we're helping safer

Operator

next Securities. question from the line comes Guggenheim Your Howard from of Ma

Howard Ma

in today? as talk prefer demand and laid how portfolio the In particular, 'XX can targets of the Great. Sanjay, space drivers some evolve seemed out your Commvault your peers portfolio about and towards you how -- can fiscal how Cloud continue that a to you talk that you about approach. will you to march cloud-first the --

with on-prem is that Commvault the to in whether flexibility giving cloud. it's compare important to talk protect of You workloads, targets? customers achieving strategy this hybrid more or about their how they just your of choose approach Can terms you long-term where

Sanjay Mirchandani

Great.

next looking and we're So is at customer first. about and the the putting customer the X quarters way beyond the safety

Commvault the of the enhanced face at resilience. an of Cloud company, capability protection, of has attack. recover and ability [ been pivoted cyber originally which entire cyber ] in Our to resilience was customer's data a the is heart for from And

our So and our hybrid live at out of artificially we continue workloads because world, workloads clouds. will different competitors some different in flesh and they eventually will in on-premise capabilities, and out times cloud to from don't we separate workloads in do, like different move places the

hybrid that everything So and we capability. take we do is to heart a with

additional on-premise the from ]. that that secure. more you SaaS it to of cover. and anywhere could the write customer -- matters. we insular storage gives ] able And customers and architecture decouples [ more that workloads, being will if And [ broadest more control makes that anywhere that run what of their them So gives is capability that think Then a workloads, we it ever have, look plane architecture the breadth of workloads at

first between the stage not. don't conservatively we we Commvault do. we cloud, into of some putting couple before platform, competitors ability appliance okay? Cloud we're us of in into into of to X versus into all move into this last data an native move the cloud, and moved architecture and forward. we we Everything amount the So The innovation over question the will second the use innovation do the because Our about putting things -- things do capabilities. the our to of none we're in of cloud as we is don't public is cloud [indiscernible] of years keep like We move our amount exabytes

ends We're up we in cloud. do we're somehow very very on confident architecture. the confident that everything the So

with to next Commvault rebuilt of And acquisition portfolio last couple with totally level architecture resilience in which native Appranix, richer. metallic cloud Cloud the be years to of [indiscernible]. in through rebuild, our we Our makes the take even the was application-level

So you with we're we're going where it, but probably excited see more so this. Howard, you than want why about

Howard Ma

I with the most you or more as configurations bit be more little commonly want both? just I Appranix mean be standalone acquisition the guess, cloud SKU pretty It about I Or will rebuild problem. it used most you ServiceNow -- the use Appranix just Or used platform? mentioned. is applications into -- is always third-party seems SaaS integrate as unique -- Salesforce, Can the for be this it think guess, will it seems applications apps? can a And I of more world? custom our this it we ability a talk like the and to the Workday's -- like is

Sanjay Mirchandani

there, you So complexity those, would, it's So apps the ready-made, covers -- platform SaaS if comes or the we what do a to so have out whether It's of the it's know latter. dynamics offices or lot in our SaaS of metallic world the you. how -- right? core the

Appranix very ability step is cloud that So them native a does those for harder. more native, that and with giving their they they all of you and give you're as doing workloads of very the the And discovers apps than if cloud. more for apps persistent -- that customers protection it It's -- migrate What clearly up less ransomware gets rebuild tells it they by cloud, or less be for into tend process. it that then capabilities cloud into brings we those traditional apps. step have isn't make cloud to native you app, whether doing can and traditional what a move the through protected use apps fold assets can to you practice the and With managing protect. allows that quickly. apps, you're automated of application the cloud-native standard apps is real, us into more as an very more will, goes to And resiliency level coupled and

our road, back beyond recover Now Appranix, data. many Howard, from give experience, validated And to end-to-end where spend is And really solution customer data with the many, of resilience of bringing they've trying an and back from roughly, to platform rubber us, attack, we roughly ability bring the with the apps breached quickly. times, is done on the an apps. time this and verifying we've this in once they on apps hopefully a hits the plus/minus when time, capability bringing can now is is got about good, X/X them back the that, very X/X clean, the and with and their

has Now way summer, the the X it and it's it's market is through basically for be be it -- SKUs going available to delivered to to going as today.

front -- data apps over rebuild it roll Commvault it that into when take got summer, life will it simple. more bring to rest of you self-discovers past heals. magic a to And very either about the it runs, applications talk we're of can management to policy You capability. going enhance its and out. make more cert going We've way now. assured it and It's very into a basic around sets SKU It trying or could broad I'm in the the of take the enterprise map rich course and not right the an But road cycle definitely you're product. us.

Operator

Your from Matheus the of next line question Lake Street. comes Eric from

Eric Martinuzzi

points subscription. QX. had of basically there? that a what vertical little or Yes. to the QX. Could narrow for sounds down understand expecting were on maybe in bit you or We I outperformance maybe wanted execution versus your agreement just It geography better you performance the like side by better call to out the term

Gary Merrill

us, Gary. for And this that it as benefit okay? morning as to off saw -- announced. resiliency it's you that quarter And it an we're strong year, Nice we some was to amazing you Eric, immediate mentioned, capped to really really pleased cyber we a related talk QX. offerings the from of

few benefit a functionality, announced past tiers Going resiliency that immediate we had some we saw event the different that our of back of pricing shift cyber quarter. November, to the just our new with and we approach packaging, in from and kind expecting our and benefit platform

very So it's functionality how to the what adopting are business. with and momentum customers quickly and help in that pleased doing us our predictability drive

execution to as our our the that the both against and out If Americas in thing European saw the deliver across perspective, geographic being some tie a Pacific, on in close one time. execution you quarter. we very And rates and in customer up of saw we've had we close in to in well ability regions, quarters with call pipeline region qualified our performance the strong against the as a both a region. numbers field quite one and better was of From had ends Americas penetration strongest new I in if

Eric Martinuzzi

then as ] And boil cyber pipeline, pipeline kind then maybe that as out what just looking into cyber a mix? QX hesitate a as [ you the far the outlook, it versus of resiliency percent at Okay. down your and XXXX performance taking but of in seeing DR I world of to are resiliency,

Sanjay Mirchandani

journey I application like even point, Sanjay. back verified just customer It's -- bringing bringing releasing about in way capability DR assets, able really your and don't to to states: -- It's to back shift. automated scale the for that workloads, a we're, mix assets, scale. be data at is -- about assets to Eric, it's them their not think their of moving I it's characterize protection X it capability this it's But highly and a is the fundamental at a this

sort cyber-resilience is of and AI a ton a capabilities. have the resilience in building need that full proof type you the all way And ultimate which recovery. recovering then of a to extending automation, type capability, really from So

Now side of on perimeter partners connect on with also you this the defense means back the that that in [ ].

And security AI integration to to it's our bring a capabilities so and deep of through capabilities which about our core, and ability back customers is automation protection. obviously, life

and if customer that is but right-hand it's to product-based which of for side model, you needless the to capability, SKU want or delivery So be in resilient. cyber a fairly we on speak every would, a mention, us to

as just takes. them partners fast our are as they move So through is absorbing journey to capable our goal of that what with it

Operator

line Ader Next from Jason Blair. question the comes William from of

Jason Ader

and double into do ] of the as question Are is, just resilience your versus Two you security/cyber on this term guys data to 'XX? FY budget customers the your technology? in aligning expect as other sold the is is have branding, you CIO budget. with One I the being more branding then well for And [ pushed starting Rubrik quick technology and In questions. grow you budgeting see to digits concept know others. of are words, second actually how reality CSO the the

Gary Merrill

it's Sanjay second the Jason, and to I'll to pass Yes. take one, I'll then talk first Gary. over part. about your

it As with business we've repeatable FY recurring relates function. contribution a model revenue very 'XX, built to a now in

to acceleration that, will highest X strong with so subscription on line, And will our [ we sources. get contribution contribution our we'll land of business. sources tied get that our -- from business renewal ] be within level terminals the would be all and SaaS from expand Those term the business,

model it. able to be You'll

for just part. a at get strong complemented it you licenses second year, SaaS Sanjay to the from very you SaaS kind sense you'll our be, as software term will be again, look the good contribution If take be we growth where what And ARR with well. our but pretty would good a pass which the would it ended of on

Sanjay Mirchandani

So is Absolutely, the CSOs. yes. answer short

security. the about And perimeter more It met And X is X, has with it's the X have last months IT. increased. prior than recovery. with in have lived the We recovery requirements about not years, only traditionally probably CSOs because just

Cloud we of do. and IT infrastructure classic a data We organizations, protection. X. think our bridge what the classic responsibilities the The bridges platform very we organization's need CSO unique in responsibility and are So with Commvault

very SaaS non-SaaS, have can't also policies important customers which We is to bridge unification. and and because you separate capabilities, more need you separate

with fed [indiscernible]. into integrate likes the with also back intelligence with intelligence with We capability Palo their the Alto We is capabilities theirs. likes integrate our their fed that into that of the so of our perimeter is

a platform that appealing. and IT companies. So it is is infrastructure the And organization security both most unifying in the for very organization

one to of a only with on up with the the the capabilities So get We customers sport you get [ the -- platform essence. back other. in it's believe or hit not Recovery when get team TCO. we're pivot lowest a that side ] to is times

Jason Ader

to between foresee And then your traditional just see security recovery Do the of starting of and a the Sanjay. decade with quick resilience and backup consolidation kind industry Veritas follow-up to concept. line more business Symantec, you, you cyber is companies [indiscernible], ago

Sanjay Mirchandani

talking I legacy [ Are backup. fully. ] perimeter Are talking about don't about question your think security follow I'd we you consolidation?

Jason Ader

backup vendors traditional security between vendors? and Convergence

Sanjay Mirchandani

Yes.

with security. resilience no core there So is our

data competing recovery. we So we plus, and with security verifiable secure I the have traditional traditional also is to we're all recovery is over to we've built plus trust players team integrating architectures, therefore is a required plus more unique our sport. on security done, type technology the into that which but players. not because make the is that of more with protect us okay, think zero the years, What We're the

sure like you're intelligence you and the want said to and the to earlier, the actually you actually recovery that make restoring is it. clean So that I need is way have data

heart we And assessments, doesn't intelligence, what good protect at, at the we our That and world. that to anybody difficult data that really said going We years, capabilities in the own some to of do. else. for having we platform having robust And that, and we so makes more all and we're many customers partner. than a our that of we of we're don't what it know integrated risk partnerships for the into having put continue mean with and the threat --

Operator

Kessinger from [Operator line next the is Rudy D.A. from your of Davidson. Instructions] And question

Rudy Kessinger

strong we ASP a numbers talk early some cyber it's should maybe deals? from could expected new And the here. year on cyber this maybe you you uplift still material business know with standpoint that to resilience? I resilience, from of when Congrats about some expect on the these see but start contribution

Gary Merrill

morning. Thanks Yes, for us it's this joining Gary.

early Sanjay still us. for mentioned, As it's

maybe So though, contribution say, I we're giving uplifts, going will at to contribution. saw we in the already we're specific start point right not that during quarter, the

And our expectations our resilience. the related building that journey results that that's our today in through it's taking We're contribution, more well of where to contribution pipeline. some point. about they customers building results are reflect from and pipeline cyber key to are So okay? the to And as ultimate relative

It's So it's journey. go can ways. a And over just that there. here to not They multiple you do we from can that time. build

with options the journey. bundling [ we're straight like And opportunity other cleanroom that giving that didn't functionality Sanjay, that maybe through packaging technology on to have we've it ]. them I'll you build right, go and released with the But some to of today, We there. pass

Sanjay Mirchandani

cyber-resilience recover, to I'll a hard just point. give [ completely is because what and have and know gravitate towards capabilities observation, that this you to takes Customers ]. data an message been they it it breached

workloads our like readiness unique all that often already how with it's The So the incredible ready customers are are things, happens. And across your all ability cyber very SaaS seen that And you get some as an with our as so comes pipeline having which building we're ability is the Gary want platform, said, mentioned, be in success. table. capabilities really cleanroom, test non-SaaS you on bring the we it if our truly attack your towards can fast as innovation and to resilience for and appealing, gravitate X to we've with Gary conversations that to resilient. to we recover, capability,

be ]. and and where newish, yes, So customers they breached of is they've again, package but the the especially when desire it's not -- been need is understanding to [

Operator

I to over that conference session. for like remarks. closing would turn today's And Mike the back to Q&A concludes

Michael Melnyk

Thanks, Paul.

field Francisco, those an with For number RSA personnel. at in who a executive be you have and present San we'll of have booth to as our going team well as exciting will out exhibit, we're management of our

us hope RSA week. next join at you can So we

presentation the to to Investor a we forward today, with questions. we Relations recap me with can and call, you for our reach on of Thank have you. Thanks any a posted you As a speaking soon. and out website, joining look reminder,

Operator

call. concludes of rest conference This day. Enjoy your today's the

now may You disconnect.

Commvault Systems (CVLT) 30 Apr 242024 Q4 Earnings call transcript