Commvault Systems, Inc. (NASDAQ:CVLT) Q2 2024 Earnings Conference Call October 31, 2023 8:30 AM ET

Company Participants

Michael Melnyk - Head, Investor Relations

Sanjay Mirchandani - Chief Executive Officer

Gary Merrill - Chief Financial Officer

Conference Call Participants

Aaron Rakers - Wells Fargo

Howard Ma - Guggenheim Securities

James Fish - Piper Sandler

Rudy Kessinger - D.A. Davidson

Eric Martinuzzi - Lake Street Capital Markets

Jason Ader - William Blair

Tom Blakeley - KeyBanc Capital Markets

Operator

Good morning. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Commvault Second Quarter Fiscal Year 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, we will have a question-and-answer session. [Operator Instructions]

Thank you. I will now turn the conference over to Michael Melnyk, Head of Investor Relations. You may begin.

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'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 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 opening remarks. Sanjay?

Sanjay Mirchandani

Thank you, Mike. Good morning, everyone, and thanks for joining us today. I am pleased to report our Q2 results exceeded expectations, and we improved across our most important KPIs.

Total ARR, the primary metric we use to measure underlying growth accelerated 18% year-over-year to $711 million. Subscription ARR grew 32% year-over-year to $530 million and is now nearly 75% of total ARR.

SaaS momentum accelerated with Metallic ARR, up 77% year-over-year to $131 million. Metallic-SaaS net dollar retention rebounded to an impressive 130%. And we delivered improved profitability while continuing to return cash to shareholders through share repurchases.