Start Time: 08:30 January 1, 0000 9:10 AM ET

Commvault Systems, Inc. (NASDAQ:CVLT)

Q2 2023 Earnings Conference Call

November 01, 2022, 08:30 AM ET

Company Participants

Sanjay Mirchandani - President and CEO

Gary Merrill - CFO

Michael Melnyk - Director, IR

Conference Call Participants

James Fish - Piper Sandler

Eric Martinuzzi - Lake Street Capital Markets

Aaron Rakers - Wells Fargo

Thomas Blakey - KeyBanc Capital Markets

Operator

Good day and thank you for standing by. Welcome to the Commvault Q2 Fiscal Year 2023 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]. Please be advised that today's conference is being recorded.

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

Michael Melnyk

Thanks, Andrea. 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 infographic with key financial and operating metrics is posted on the Investor Relations Web site 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 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 this call, Commvault's financial results are presented on a non-GAAP basis. A reconciliation between the non-GAAP and GAAP measures can be found on our Web site. Thanks again for joining.

Now I'll turn the call over to Sanjay for his remarks. Sanjay?

Sanjay Mirchandani

Thanks, Michael. Good morning. I'm pleased to share that we delivered record fiscal Q2 results, which I'll discuss in constant currency. Software and products revenue increased 16%. Growth was driven by strength in the Americas and our continued success in winning large transactions. Our best in class technology continues to resonate in the enterprise where data protection and ransomware remain top of mind.

ARR growth continues to be strong increasing 18% year-over-year. Combined, subscription and SaaS ARR grew over 40% year-over-year and now represents a healthy 66% of our total ARR. Metallic continues to fuel this growth. I'll share more shortly. These results are proof that our strategy is working in three ways. First, over the past three years, we've been focused on transforming the business and have returned the company to responsible growth. Our focus on driving ARR now over 600 million gives us predictable model for future growth.