Commvault Systems, Inc. (NASDAQ:CVLT) Q4 2023 Earnings Conference Call May 2, 2023 8:30 AM ET
Company Participants
Mike Melnyk - Head, IR
Sanjay Mirchandani - CEO
Gary Merrill - CFO
Conference Call Participants
Howard Ma - Guggenheim
Aaron Rakers - Wells Fargo
Jim Fish - Piper Sandler
Thomas Blakey - KeyBanc
Eric Martinuzzi - Lake Street Capital
Operator
Good day, and thank you for standing by. Welcome to the Commvault Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded.
I would now like to hand the conference over to your speaker today, Mike Melnyk. Please go ahead.
Mike Melnyk
Thank you, Gerald. Good 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 to the Investor Relations website for your reference.
Statements made on today's call will include forward-looking statements about Commvault's 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 different from those contemplated in these forward-looking statements. Commvault does not assume any obligation to update these statements.
During this call, Commvault's financial results are presented on a non-GAAP basis. A reconciliation between non-GAAP and GAAP measures can be found on our website. Thank you again for joining us.
Now I'll turn it over to Sanjay for his remarks. Sanjay?
Sanjay Mirchandani
Thank you, Mike. We delivered strong Q4 results ending the fiscal year with renewed momentum. Let me share some highlights. Total ARR increased 15% year-over-year. Our subscription and SaaS ARR, which represents 71% of total ARR, grew 38% year-over-year. Metallic, our three year old SaaS offering exceeded $100 million in ARR, placing it among the fastest growing SaaS applications in history. We had another strong quarter of new customer additions, adding over 600 subscription and SaaS customers and we did all of this profitably, delivering 22% EBIT margins while continuing to return cash to shareholders.
Gary will share more detail shortly, but today marks the next phase of our strategic evolution to become the leading cloud first data protection company in the industry. Our mission is twofold. First, we will continue to deliver industry-leading data protection to gain share in the mature on-premise market, while simultaneously taking share in the rapidly growing SaaS market. Second, we remain intently focused on accelerating our growth in a responsible and lasting way, which should result in continued operating margin expansion over time.