Commvault Systems, Inc. (NASDAQ:CVLT) Q1 2024 Results Conference Call August 1, 2023 8:30 AM ET

Company Participants

Mike Melnyk - Head, IR

Sanjay Mirchandani - CEO

Gary Merrill - CFO

Conference Call Participants

Aaron Rakers - Wells Fargo

Eric Martinuzzi - Lake Street Capital Markets

Howard Ma - Guggenheim Partners

Jim Fish - Piper Sandler

Jason Ader - WB

Operator

Good day, and thank you for standing by. Welcome to the Commvault Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Mike Melnyk, Head of Investor Relations. Please go ahead.

Mike Melnyk

Morning, and welcome to our earnings conference call. I'm Mike Melnyk, Head of Investor Relations, and I'm joined by Sanjay Mirchandani, Commvault's CEO; and Gary Merrill, Commvault's CFO. An earnings presentation with key financial and operating metrics is posted on the Investor Relations website for your reference.

Statements made on today's call will include forward-looking statements about Commvault, future expectations, plans and prospects. All such forward-looking statements are subject to risks, uncertainties and assumptions. Please refer to the cautionary language in today's earnings release and Commvault's most recent periodic reports filed with the SEC for a discussion of the risks and uncertainties that could cause the company's actual results to be materially different from those contemplated in these forward-looking statements. Commvault does not assume any obligation to update these statements.

During the call, Commvault's financial results are presented on a non-GAAP basis. A reconciliation between GAAP and non-GAAP can be found on our website.

Thank you for joining us. Now I'll turn the call over to Sanjay for his remarks. Sanjay?

Sanjay Mirchandani

Thank you, Mike. Good morning. I'm pleased to report our Q1 results met our expectations and position us well for fiscal year 2024.

Let me share some highlights. Total ARR, the metric we use to measure the growth of our recurring revenue streams, increased 15% year-over-year to $686 million. Our subscription ARR grew 32% year-over-year to $500 million. Metallic, our hyper growth SaaS platform grew ARR 72% year-over-year and now exceeds 4,000 customers. All of these showcased the strength of our subscription-based recurring revenue model that we've been driving to over the past several years. And we did it while delivering 22% EBIT margins and continuing to return cash to shareholders through share repurchases.

Our strategic objective is clear: to be the leading cloud first data protection company in the industry. This requires constant innovation, execution excellence and the ability to rapidly evolve with the ever-changing data protection market.