Yahoo Finance CommVault Systems Inc (CVLT) Q4 2024 Earnings Call Transcript Highlights: Robust Growth and ...
Total Revenue: Grew 10% to $223 million in Q4.
Total ARR: Rose 15% to $770 million.
Subscription ARR: Increased 25% to nearly $600 million.
SaaS ARR: Jumped 65% to $168 million.
Free Cash Flow: Grew 18% year over year to $79 million in Q4.
Net New SaaS ARR: Added approximately $18 million in both fiscal Q3 and Q4.
Subscription Revenue: Increased 27%, now over 50% of total revenue.
Non-GAAP EBIT: $45 million in Q4 with margins of 20.2%.
Customer Support Revenue: $77 million, flat year over year.
Full Year Total Revenue: Increased 7% to $839 million.
Full Year Subscription Revenue: Increased 23% to $429 million.
Full Year Free Cash Flow: Improved 20% year over year to $200 million.
Full Year Non-GAAP EBIT: Grew 11% to $177 million, margins improved to 21.1%.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the expected ASP uplift from cyber resilience deals and when might we see a material contribution from this new business area? A: (Gary Merrill - CFO) It's still early to specify exact contributions or ASP uplifts from cyber resilience deals. However, we've already seen contributions in our results and are building a pipeline focused on guiding customers through the journey towards ultimate cyber resilience. We offer multiple pathways, including bundling and packaging options, to help customers achieve this.
Q: How do you expect the term software licenses to perform in FY25, and are you seeing your technology being budgeted more from the C-suite due to the cyber resilience branding? A: (Gary Merrill - CFO) We anticipate strong contributions from all revenue sources, including term software licenses, in FY25. Our business model now consistently generates recurring revenues. (Sanjay Mirchandani - CEO) Regarding the C-suite engagement, there's definitely an increase in interactions with CSOs, especially as the need for recovery and resilience becomes more critical. Our platform appeals to both IT and security teams, enhancing its value within customer organizations.
Q: What are the main drivers behind the Q4 performance, and how does this set the stage for FY25? A: (Gary Merrill - CFO) Q4's performance was bolstered by immediate benefits from our cyber resiliency offerings and strong execution in the field. Geographically, both the Americas and Europe performed well, with notable new customer acquisitions in the Americas. This momentum is expected to carry into FY25, supported by our evolving subscription models and SaaS offerings.
Q: How does the acquisition of a products enhance Commvault's capabilities, and what are the integration plans? A: (Sanjay Mirchandani - CEO) The acquisition brings unique capabilities for rebuilding applications, enhancing our cyber resilience offerings. Initially, it will be available in two SKUs, with plans to further integrate and expand its functionalities within our platform. This acquisition strategically enhances our ability to provide end-to-end recovery solutions.
Q: Can you elaborate on the strategic importance of the hybrid approach in Commvault's offerings compared to a cloud-first strategy? A: (Sanjay Mirchandani - CEO) Our hybrid approach is crucial as it aligns with the reality that workloads exist in diverse environments and may shift between on-premises and cloud. We provide comprehensive coverage across all workloads, leveraging cloud-native capabilities without unnecessary intermediaries, which is essential for flexibility and security in a hybrid IT landscape.
Q: What is the outlook for perpetual license and customer support revenues in FY25? A: (Sanjay Mirchandani - CEO) We anticipate that the headwinds from perpetual license sales will diminish, with revenues stabilizing to a flat or low single-digit decline. Customer support revenues are expected to hover around $300 million for the year, reflecting a transition as the impact of perpetual license headwinds lessens.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
