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Financial Data and Key Metrics Changes - Commvault achieved a record $47 million in net new ARR, with subscription ARR rising 30% to $894 million and total revenue growing 18% to $276 million [3][12] - Total ARR grew 22%, reaching $1 billion two quarters earlier than the original target [3][12] - SaaS ARR grew 56% to $336 million, also exceeding the original target two quarters ahead of schedule [12][13] - Fiscal Q2 gross margins were 80.5%, reflecting the shift towards SaaS and the integration costs from Satori [17][66] Business Line Data and Key Metrics Changes - Subscription ARR now constitutes 86% of total ARR, up from 81% a year ago [13] - Strong double-digit growth was observed in identity and data security offerings, which represented nearly 40% of net new ARR [5][15] - Active Directory usage tripled year over year, indicating strong demand for identity protection services [15][46] Market Data and Key Metrics Changes - Commvault protects approximately eight exabytes of customer data in the cloud, with a CAGR of over 40% over the past five years [7] - The number of SaaS customers grew to nearly 9,000, representing a 40% increase year over year [8] - Net dollar retention remained healthy at 125%, indicating strong adoption of SaaS offerings from existing customers [9][15] Company Strategy and Development Direction - The company focuses on three key growth drivers: demand for the Commvault Cloud Cyber Resilience platform, the shift to the cloud, and ongoing innovation [4][10] - Commvault aims to address evolving resilience requirements as enterprises increasingly adopt AI technologies [10] - The acquisition of Satori Cyber is expected to enhance the company's capabilities in monitoring and protecting large language models [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong market demand, driven by innovation and growth-focused investments [21] - The competitive landscape remains challenging, but Commvault is positioned to take market share through its innovative platform [28][39] - The company anticipates a total revenue range of $1.161 to $1.165 billion for fiscal year 2026, reflecting a 17% increase at the midpoint [20] Other Important Information - Commvault's capital allocation strategy includes share buybacks, M&A, and organic investments [72] - The company repurchased $131 million of stock during the quarter, with a total of $146 million year to date [18][72] Q&A Session Summary Question: Can you elaborate on the shift in term duration? - Management noted that customers are opting for shorter contract durations to maintain flexibility as they transition to the cloud, which has impacted average deal size [24][62] Question: How does Commvault view the competitive landscape? - Management indicated that while the landscape is competitive, Commvault continues to take market share, particularly in the SaaS segment, which is growing at a faster rate than the overall market [28][30] Question: Are there signs of a slowdown in backup modernization? - Management disagreed, stating that the demand for cyber resilience remains strong due to ongoing cyber threats and the need for innovative solutions [31] Question: What are the drivers of the term subscription business? - Management highlighted that on-premise data growth continues to be a significant driver, alongside the increasing importance of identity and data security [43][46] Question: Is there increased cross-sell between term and SaaS customers? - Management confirmed that the percentage of SaaS customers also using term services is gradually increasing, reflecting a positive trend in cross-selling [47][48]

Financial Data and Key Metrics Changes - Total Annual Recurring Revenue (ARR) grew 24% to $996 million, with Subscription ARR increasing 33% to $844 million [3][17] - Total revenue increased 26% to $282 million, driven by a 46% rise in subscription revenue [4][20] - Non-GAAP EBIT grew 21% to $58 million, with a non-GAAP EBIT margin of 20.7% [24] - Gross margins for Q1 were 82.4%, consistent with expectations [24][29] Business Line Data and Key Metrics Changes - Subscription revenue increased 46% to $182 million, with SaaS ARR soaring 63% to $307 million [4][19] - The number of subscription customers approached 13,000, with approximately 700 net new subscription customers added [20] - SaaS net dollar retention rate was 125%, indicating strong customer expansion [20] Market Data and Key Metrics Changes - The company achieved triple-digit growth in marketplace transactions, with multiple six-figure and seven-figure deals [5] - Significant growth was observed across geographies, industries, and customer segments, from enterprise to SMB [6] Company Strategy and Development Direction - The company is focused on the booming cyber resilience market, enhancing offerings to meet the needs of CIOs and CISOs [7][10] - Strategic partnerships were formed with Deloitte, CrowdStrike, and HPE to enhance cyber resilience and data protection capabilities [11][12] - The company plans to acquire Satori Cyber to strengthen data security offerings and support responsible AI usage [14][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for the cyber resilience platform and the ability to capture market share [30] - The updated guidance reflects confidence in future opportunities despite broader macroeconomic considerations [30] Other Important Information - The company ended Q1 with no debt and a cash position of $363 million, with free cash flow of $30 million [25] - The acquisition of Satori Cyber is expected to be modestly dilutive to margins for the next several quarters [26][29] Q&A Session Summary Question: Revenue contributions from Satori acquisition - Management indicated that the Satori acquisition will not materially impact revenue guidance [33] Question: Cross-sell and upsell opportunities - Management reported a 45% increase in customers using two or more products, with a focus on expanding this further [35] Question: Bundling strategy - The company has logical bundles that make sense for customers, with more capabilities expected to be integrated [38] Question: Future growth through M&A - Management highlighted a focus on core security and cloud-native capabilities for future acquisitions [42] Question: Federal business performance - The federal business performed in line with expectations, with strong seasonality anticipated for the first half of the year [57] Question: Net new ARR dynamics - The SaaS business performed as expected, with strong performance in software contributing to net new ARR [50] Question: Pull forward of customer budgets - Management stated there is no evidence of budget pull forward, attributing strong performance to overall market strength [81]