Commvault Systems, Inc. (NASDAQ:CVLT) Q1 2023 Earnings Conference Call July 26, 2022 8:30 AM ET

Company Participants

Michael Melnyk - Director, Investor Relations

Sanjay Mirchandani - President, Chief Executive Officer and Director

Gary Merrill - Chief Financial Officer

Conference Call Participants

Aaron Rakers - Wells Fargo

Eric Martinuzzi - Lake Street Capital

Jason Ader - William Blair

Operator

Goo day. And thank you for standing by. Welcome to the Commvault Q1 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. Please be advised that today's conference is being recorded.

I would now like to welcome one of your speakers for today, Mr. Michael Melnyk. Please begin.

Michael Melnyk

Good morning. And welcome to our earnings conference call. I am Mike Melnyk, Head of Investor Relations and I am 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 website for 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 in Commvault’s most recent periodic reports filed with the SEC for 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 the 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 website. Thanks again for joining.

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

Sanjay Mirchandani

Good morning. I'm pleased to share Commvault’s record Q1 results. Our subscription software and SaaS strategy is working as customers continue to prioritize data management and protection solutions as they embrace the cloud and hybrid IT. This is reflected in our results, which I will be discussing and constant currency. Total revenue was up 13% year-over-year. Software and products revenue increased an impressive 17 Metallic is starting to contribute meaningfully to revenue, and we once again delivered profitable growth. Total ARR, a key indicator of our future continues to be strong growing 16% year-over-year, combined subscription and SaaS ARR grew approximately 50% year-over-year, and now represents 64% of our total ARR. And we have 2.5x more subscription in SaaS customers than we had two years ago. These are proof points that our strategy is working, and that we are their trusted partner for our customers’ large multi cloud environments.