Commvault Systems Inc (CVLT) 2024 Q2 法說會逐字稿

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's Second Quarter Fiscal Year 2024 Earnings Conference Call. (Operator Instructions)

早安.我叫克里斯塔，今天我將擔任你們的會議接線生。此時此刻，我歡迎大家參加 Commvault 2024 財政年度第二季財報電話會議。 （操作員說明）

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

謝謝。我現在將會議交給投資者關係主管 Michael Melnyk。你可以開始了。

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 reference.

早上好，歡迎參加我們的財報電話會議。我是投資者關係主管 Michael Melnyk，Commvault 執行長 Sanjay Mirchandani 也加入了。和 Commvault 財務長 Gary Merrill。投資者關係網站上發布了包含主要財務和營運指標的收益報告，以供參考。

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.

在今天的電話會議上發表的聲明將包括有關 Commvault、未來預期、計劃和前景的前瞻性聲明。所有此類前瞻性陳述均受風險、不確定性和假設的影響。請參閱今天的收益報告中的警示性語言以及 Commvault 向 SEC 提交的最新定期報告，以了解可能導致公司實際結果與這些前瞻性聲明中預期結果存在重大差異的風險和不確定性的討論。 Commvault 不承擔更新這些聲明的任何義務。

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 website.

在本次電話會議中，Commvault 的財務表現是按照非公認的會計準則 (Non-GAAP) 計算。您可以在我們的網站上找到非公認會計原則和公認會計原則衡量標準之間的調節表。

Thank you again for joining us.

再次感謝您加入我們。

Now I'll turn it over to Sanjay for his opening remarks. Sanjay?

現在我將請 Sanjay 致開幕詞。桑傑？

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.

謝謝你，麥克。大家早安，感謝您今天加入我們。我很高興地報告我們第二季的業績超出了預期，並且我們在最重要的 KPI 方面取得了進步。總 ARR（我們用來衡量潛在成長的主要指標）年增 18%，達到 7.11 億美元。訂閱 ARR 年增 32%，達到 5.3 億美元，目前佔總 ARR 的近 75%。 SaaS 勢頭加速，Metallic ARR 年增 77%，達到 1.31 億美元。 Metallic SaaS 淨美元保留率反彈至令人印象深刻的 130%，我們提高了獲利能力，同時繼續透過股票回購向股東返還現金。

Beyond these impressive financial results, we also received numerous industry accolades, including being named the leader for the 12th consecutive time in the 2023 Gartner Magic Quadrant. We also ranked highest in 6 out of 7 categories in Gartner's latest critical capabilities for Enterprise Backup and Recovery Software Solutions report. And once again, GigaOm named us a Leader and an Outperformer in its most recent GigaOm Radar for Hybrid Cloud Data Protection for Large Enterprises. We're extremely proud of this recognition. We're laser focused on being a trusted partner to our customers by protecting their data from the stereo cyber threats. Significantly reducing ramp at hybrid task complexity and infusing AI-enabled automation to tackle new and evolving data protection and security challenges. And we're just getting started.

除了這些令人印象深刻的財務表現之外，我們還獲得了許多行業榮譽，包括連續 12 次被評為 2023 年 Gartner 魔力像限領導者。在 Gartner 最新的企業備份和復原軟體解決方案關鍵功能報告中，我們在 7 個類別中的 6 個類別中排名最高。 GigaOm 在其最新的大型企業混合雲資料保護 GigaOm Radar 中再次將我們評為領導者和卓越者。我們對此認可感到非常自豪。我們致力於保護客戶的資料免受立體網路威脅，成為客戶值得信賴的合作夥伴。顯著降低混合任務複雜性的增加，並注入人工智慧支援的自動化，以應對新的和不斷變化的資料保護和安全挑戰。我們才剛開始。

Next week, at our Commvault SHIFT customer and partner event, we will highlight how we are shifting from data protection to leading the charge in cyber resilience. We're going to introduce theoretically new approach that empowers customers to stand up to today's nonstop and escalating cyber threats. We're bringing together what we're known for, the best-in-class data protection and combining it with exceptional data security, recovery and AI-driven data intelligence. Cyber resilience like this has never been possible until now.

下週，在 Commvault SHIFT 客戶和合作夥伴活動中，我們將重點介紹我們如何從資料保護轉向引領網路彈性。我們將引入理論上的新方法，使客戶能夠抵禦當今不間斷且不斷升級的網路威脅。我們將眾所周知的一流資料保護技術與卓越的資料安全性、恢復和人工智慧驅動的資料智慧相結合。迄今為止，這樣的網路彈性從未成為可能。

The timing has never been better. According to a recent IDC study, most enterprises expected imminent attack. 61% of respondents believe the data loss in the next 12 months is likely to occur due to an increasingly sophisticated attack. It's clear, a new standard in cyber resilience is required, and that's what we're going to deliver. Commvault has always prided itself on delivering the best technology that customers need at the right time, case in point.

現在的時機從來沒有這麼好過。 IDC 最近的一項研究顯示，大多數企業預計攻擊即將來臨。 61% 的受訪者認為，由於日益複雜的攻擊，未來 12 個月內可能會發生資料遺失。很明顯，需要一個新的網路彈性標準，而這正是我們要提供的。 Commvault 一直以在正確的時間提供客戶所需的最佳技術而自豪。

4 years ago, we challenged ourselves to address an emergent need in the market, enterprise-grade cloud-native data protection as a service. We made some bold moves, disrupted from within and took a new modern approach to launch Metallic, our industry-leading hypergrowth SaaS platform. We vastly simplified how we secure and defend data for any workload regardless of where it is and in the process. We revolutionize data protection as a service. Since then, we've gained over 4,000 customers and surpassed $130 million in ARR. And just last week, Commvault was named the leading vendor in GigaOm's cloud-based data protection sonar report. The authors noted "Metallic protects a very broad range of cloud workloads that will be tedious to fully enumerate."

四年前，我們挑戰自我，解決市場的緊急需求，即企業級雲端原生資料保護即服務。我們採取了一些大膽的舉措，從內部進行顛覆，並採用新的現代方法來推出 Metallic，這是我們行業領先的高速成長的 SaaS 平台。我們大幅簡化了保護和保護任何工作負載資料的方式，無論資料位於何處以及在流程中。我們徹底革新了資料保護即服務。自那時起，我們已經贏得了 4,000 多名客戶，ARR 超過 1.3 億美元。就在上週，Commvault 在 GigaOm 基於雲端的資料保護聲納報告中被評為領先供應商。作者指出，“Metallic 保護非常廣泛的雲端工作負載，完全列舉這些工作負載將非常繁瑣。”

Building on the overwhelming success of our platform, we're now taking the opportunity to apply everything we've learned in data protection and combining it with powerful new innovations in data security, AI and recovery to deliver the most advanced cyber resilience platform in the industry. Next week at SHIFT, we will unveil this to the world along with some exciting new ecosystem partnerships that will enable us to transcend the category. Today's problems cannot be solved with yesterday's approach. It's time to shift how we think about resilience. We hope that you can tune into the exciting event.

在我們平台取得巨大成功的基礎上，我們現在抓住機會應用我們在資料保護方面學到的一切，並將其與資料安全、人工智慧和復原方面強大的新創新相結合，以提供全球最先進的網路彈性平台。產業。下週在 SHIFT 上，我們將向世界公佈這項成果以及一些令人興奮的新生態系統合作夥伴關係，這些合作夥伴關係將使我們能夠超越該類別。今天的問題不能用昨天的方法來解決。是時候改變我們對韌性的看法了。我們希望您能夠收看這項令人興奮的活動。

Now I'll turn it over to Gary to discuss the numbers. Gary?

現在我將把它交給加里討論這些數字。加里？

Thanks, Sanjay, and good morning, everyone. I am pleased to report that our strong revenue and earnings outperformance in Q2 was driven by acceleration across our key KPIs during the quarter. Q2 total revenue was $201 million, an increase of 7% year-over-year. Our total revenue growth was led by subscription revenue of $98 million, an increase of 25% year-over-year. As a reminder, subscription revenue includes both our term software licenses and our SaaS offerings.

謝謝桑傑，大家早安。我很高興地報告，我們第二季強勁的營收和獲利表現是由本季關鍵 KPI 的加速推動的。第二季總營收為 2.01 億美元，年增 7%。我們的總收入成長主要得益於 9,800 萬美元的訂閱收入，較去年同期成長 25%。提醒一下，訂閱收入包括我們的術語軟體授權和 SaaS 產品。

We saw double-digit growth in term software licenses combined with an accelerating contribution of SaaS revenue, which was up over 80% year-over-year. Subscription revenue is now approaching 50% of total revenue compared to 42% 1 year ago. Term software license growth was driven by strong performance in renewals and its existing customer expansion during the quarter, with our subscription net dollar retention remaining within its historical range.

我們看到定期軟體授權實現了兩位數的成長，同時 SaaS 營收的貢獻也在加速成長，較去年同期成長超過 80%。訂閱收入目前已接近總收入的 50%，而一年前為 42%。定期軟體授權的成長是由續訂的強勁表現和本季現有客戶的擴張所推動的，我們的訂閱淨美元保留率仍保持在歷史範圍內。

Overall term software deal volume increased year-over-year driven by continued improvements in our velocity motion. Q2 perpetual license revenues were $14 million. As a reminder, our go-to-market motion is led by subscription. So perpetual license sales are generally sold in certain verticals and geographies. At the current perpetual license revenue run rate, we believe the headwind to our reported total revenue growth from these perpetual license sales to start to normalize as we exit the current fiscal year.

由於我們速度運動的持續改進，整體期限軟體交易量逐年增加。第二季永久授權收入為 1400 萬美元。提醒一下，我們的上市動議是由訂閱主導的。因此，永久許可銷售通常在某些垂直行業和地區進行銷售。按照目前的永久許可證收入運行速度，我們認為，隨著我們退出本財年，我們報告的這些永久許可證銷售總收入增長的阻力將開始正常化。

Q2 customer support revenue was $77 million, which includes support for both our term-based and perpetual software licenses. Fiscal year '24 customer support revenue had benefited from fewer conversions of perpetual support contracts to term software licenses compared to prior year. Year-to-date, customer support revenue from perpetual licenses represents 55% of total customer support with the balance coming from term software licenses. This compares to approximately 60% in fiscal year '23 and 70% in fiscal year '22. At this trajectory, we expect customer support revenue from term-based software licenses to become the majority of our customer support revenue next fiscal year.

第二季客戶支援收入為 7,700 萬美元，其中包括對基於期限和永久軟體許可證的支援。與前一年相比，24 財年客戶支援收入受益於永久支援合約轉換為定期軟體授權的減少。今年迄今為止，來自永久許可證的客戶支援收入佔客戶支援總額的 55%，其餘部分來自定期軟體授權。相比之下，23 財年約為 60%，22 財年約為 70%。按照這個軌跡，我們預計來自基於期限的軟體許可證的客戶支援收入將成為我們下一財年客戶支援收入的大部分。

Moving from revenue to ARR. Q2 ARR growth accelerated 18% year-over-year to $711 million, and Subscription ARR, which includes term-based software arrangements and SaaS contracts grew 32% year-over-year to $530 million. These growth metrics reflect the underlying strength of our business when our revenue was presented on an annualized basis without the impact of subscription software term length compression.

從收入轉向 ARR。第二季 ARR 成長年增 18%，達到 7.11 億美元，訂閱 ARR（包括基於期限的軟體安排和 SaaS 合約）年增 32%，達到 5.3 億美元。這些成長指標反映了我們業務的潛在實力，當我們的收入按年計算時，沒有訂閱軟體期限壓縮的影響。

SaaS ARR finished the quarter at $131 million, an increase of 77% year-over-year. We saw healthy growth in new customers as well as expansion within our existing customer base. SaaS net dollar retention rate for Q2 accelerated to 130% versus 118% we reported last quarter.

本季 SaaS ARR 達到 1.31 億美元，年成長 77%。我們看到新客戶的健康成長以及現有客戶群的擴大。第二季 SaaS 淨美元留存率從我們上季報告的 118% 上升至 130%。

Now I'll discuss expenses and profitability. Fiscal Q2 gross margins were 82% and reflect a 150 basis point year-over-year impact from our accelerating SaaS revenue, which carries a higher cost of sale than software. Fiscal Q2 operating expenses were $121 million, up 2% year-over-year. As a percentage of total revenue, operating expenses declined 310 basis points year-over-year to 60% of total revenue, driving EBIT margin leverage as we manage our people, facilities and third-party expenses by focusing investment on our most critical priorities.

現在我將討論費用和獲利能力。第二財季毛利率為 82%，反映出我們增加的 SaaS 營收年增 150 個基點，而 SaaS 的銷售成本高於軟體。第二財季營運支出為 1.21 億美元，較去年同期成長 2%。營運支出佔總收入的百分比年減310 個基點，降至總收入的60%，透過將投資重點放在最關鍵的優先事項上來管理人員、設施和第三方支出，從而推動了息稅前利潤槓桿。

We ended the quarter with a global headcount of 2,900 employees, reflecting a 1% decline year-over-year. Our current headcount balance includes additional inside sales teams, [renewals] and related customer success teams to support the customer journey in our accelerating velocity sales motion. Non-GAAP EBIT for Q2 increased 19% year-over-year to $42 million, and non-GAAP EBIT margins were 20.9%, a 210 basis point improvement year-over-year. The strong earnings and EBIT margin expansion was driven by continued operating expense discipline relative to our top line revenue.

截至本季末，我們的全球員工總數為 2,900 名，年減 1%。我們目前的人員平衡包括額外的內部銷售團隊、[續約]和相關的客戶成功團隊，以支援我們加速銷售行動的客戶旅程。第二季非 GAAP 息稅前利潤年增 19%，達到 4,200 萬美元，非 GAAP 息稅前利潤率為 20.9%，年增 210 個基點。強勁的獲利和息稅前利潤率擴張是由相對於我們營收的持續營運支出紀律所推動的。

Moving to some key balance sheet and cash flow metrics. We ended the quarter with no debt and $283 million in cash, of which $93 million within the United States. Our Q2 free cash flow was $40 million and our first half fiscal year '24 free cash flow was $78 million, up 10% year-over-year. The biggest driver of free cash flow is SaaS deferred revenue and the strength of our software subscription renewals, which typically includes upfront payments on multiyear contracts. In Q2, we repurchased an additional $31 million of stock under our repurchase program and at the halfway point of fiscal year '24, we had repurchased $82 million of stock, representing 106% of our first half free cash flow.

轉向一些關鍵的資產負債表和現金流量指標。本季結束時，我們沒有債務，現金為 2.83 億美元，其中 9,300 萬美元在美國境內。我們第二季的自由現金流為 4,000 萬美元，24 年上半財年的自由現金流為 7,800 萬美元，年增 10%。自由現金流的最大驅動力是 SaaS 遞延收入和我們軟體訂閱續約的力度，其中通常包括多年合約的預付款。在第二季度，我們根據回購計畫額外回購了 3,100 萬美元的股票，在 24 財年中期，我們回購了 8,200 萬美元的股票，相當於我們上半年自由現金流的 106%。

Now I'll discuss our outlook for fiscal Q3 and the full fiscal year '24. We continue to believe that ARR and free cash flow should be viewed as primary KPIs of our underlying business momentum. All of our following guidance metrics are based on current foreign currency exchange rates. For fiscal Q3, we expect subscription revenue, which includes both the software portion of term-based licenses and SaaS to be $106 million to $110 million. This represents 24% year-over-year growth at the midpoint. We expect total revenue to be $206 million to $210 million with year-over-year growth of 7% at the midpoint. At these revenue levels, we expect Q3 consolidated gross margin to be approximately 82.5% and EBIT margins of approximately 21%.

現在我將討論我們對第三財季和整個財年 '24 的展望。我們仍然認為，ARR 和自由現金流應被視為我們基本業務動力的主要 KPI。我們以下所有指導指標均基於當前外幣匯率。對於第三財季，我們預計訂閱收入（包括基於期限的授權的軟體部分和 SaaS）為 1.06 億至 1.1 億美元。這意味著中位數年增 24%。我們預計總營收為 2.06 億至 2.1 億美元，中位數年增 7%。在這些收入水準上，我們預計第三季綜合毛利率約為 82.5%，息稅前利潤率約為 21%。

As I mentioned on our last earnings call, we are executing some foundational go-to-market changes, which includes amplifying our discrete focus on our land expand opportunities while also scaling our motion to secure our growing subscription renewal base. We will continue to hire field resources and additional inside sales reps focused solely on the SaaS velocity market as we refine our segmentation model. These continuing investments are reflected in our margin guidance. Our projected diluted share count for fiscal Q3 is 44.7 million shares.

正如我在上次財報電話會議上提到的那樣，我們正在執行一些基本的市場變革，其中包括加強我們對土地擴張機會的離散關注，同時擴大我們的行動以確保我們不斷增長的訂閱續訂基礎。隨著我們完善細分模型，我們將繼續聘請現場資源和額外的內部銷售代表，專注於 SaaS 速度市場。這些持續投資反映在我們的利潤指引中。我們預計第三財季的稀釋後股票數量為 4,470 萬股。

Now I would like to give an updated outlook on the full fiscal year '24, which includes raising both our total revenue and total ARR expectations for the full year. We expect fiscal year '24 total ARR growth of 14% year-over-year, which reflects a 100 basis point increase over our prior guidance. We now expect subscription ARR, which includes term-based licenses and SaaS to increase 24% year-over-year. From a revenue perspective, we now expect subscription revenue to be in the range of $408 million to $418 million, growing 19% year-over-year at the midpoint. At these levels, subscription revenue will exceed over 50% of our total revenues.

現在，我想對 24 年整個財年進行最新展望，其中包括提高全年總收入和總 ARR 預期。我們預計 24 財年總 ARR 年比成長 14%，比我們先前的指引增加 100 個基點。我們現在預計訂閱 ARR（包括基於期限的授權和 SaaS）將年增 24%。從營收角度來看，我們現在預計訂閱收入將在 4.08 億美元至 4.18 億美元之間，中位數年增 19%。在此水準上，訂閱收入將超過我們總收入的 50% 以上。

Our updated guidance reflects a mix shift from subscription revenue due to a lower number of conversions from perpetual support contracts to term software compared to the prior year as well as continued measured spending for lowered multiyear transactions in a relative high interest rate environment. As a result, we expect total revenue to be in the range of $812 million to $822 million. This is an increase compared to our prior total revenue range of $805 million to $815 million. Our improved fiscal year '24 total revenue outlook reflects strong renewal activity, the ongoing momentum in our SaaS velocity business and the seasonally stronger trends that we historically see in the second half of the fiscal year.

我們更新後的指引反映了訂閱收入的混合變化，原因是與前一年相比，從永久支援合約到定期軟體的轉換數量減少，以及在相對高利率環境下持續測量的多年交易支出減少。因此，我們預計總收入將在 8.12 億美元至 8.22 億美元之間。與我們先前 8.05 億至 8.15 億美元的總收入範圍相比，這一數字有所增加。我們改善的 24 財年總營收前景反映了強勁的續約活動、我們 SaaS 速度業務的持續勢頭以及我們在本財年下半年看到的季節性強勁趨勢。

Moving to full year fiscal '24 margin EBIT and cash flow outlook. We continue to expect consolidated gross margins of 82% to 83% and non-GAAP EBIT margin expansion of 50 to 100 basis points year-over-year. We are also maintaining our expected full year free cash flow of $170 million. As of September 30, we had $174 million remaining on our existing share repurchase authorization, and we expect to continue with our existing practice of repurchasing at least 75% of our annual free cash flows.

展望 24 財年全年息稅前利潤及現金流前景。我們繼續預期綜合毛利率將達到 82% 至 83%，非 GAAP 息稅前利潤率將年增 50 至 100 個基點。我們也將全年預期自由現金流維持在 1.7 億美元。截至 9 月 30 日，我們現有的股票回購授權剩餘 1.74 億美元，我們預計將繼續回購至少 75% 的年度自由現金流的現有做法。

We view share repurchases as a primary use of excess cash. Year-to-date, we are pacing well ahead of our annual share repurchase target, and we intend to continue the share repurchase momentum during the current quarter. For additional details and trends on all of our key metrics, please take time to review our investor deck contained in the Investor Relations section of our website.

我們認為股票回購是多餘現金的主要用途。今年迄今為止，我們遠遠領先年度股票回購目標，我們打算在本季繼續保持股票回購勢頭。有關我們所有關鍵指標的更多詳細資訊和趨勢，請花時間查看我們網站投資者關係部分中包含的投資者資料。

In closing, we've built a durable and multifaceted revenue model that should allow us to exceed ARR, total revenue and earnings objectives over the long term. We are excited about the future, and we look forward to hosting many of you at our SHIFT event in New York City next week.

最後，我們建立了一個持久且多方面的收入模式，從長遠來看，這將使我們能夠超越 ARR、總收入和獲利目標。我們對未來感到興奮，並期待下週在紐約市舉辦的 SHIFT 活動中接待大家。

Operator, you can now open the line for questions.

接線員，現在可以撥打電話提問。

(Operator Instructions) The first question comes from the line of Aaron Rakers from Wells Fargo.

（操作員說明）第一個問題來自富國銀行的 Aaron Rakers。

Congratulations on the execution in the quarter. I guess my question is I just -- help me understand a little bit more. It looks like clearly, your ARR updated guidance is a little bit lower than your prior guide, 24% on the subscription side, I should say, relative to 27%. And then obviously, revenue a little bit lower at the midpoint. Can you just -- I know you made some comments in our prepared remarks, but could you unpack that change in the guidance a little bit further?

恭喜本季的執行。我想我的問題是──幫助我多了解一點。看起來很明顯，您的 ARR 更新指導比之前的指導要低一些，我應該說，訂閱方面的比例為 24%，相對於 27%。顯然，中點的收入略低。我知道您在我們準備好的發言中發表了一些評論，但您能否進一步解釋一下指南中的這項變更？

Aaron, it's Gary. Please to talk to you this morning. And I think specifically, I think you're asking about the Q3 outlook or the full year outlook first. Let me just clarify that on --

亞倫，我是加里。請今天早上和你談談。我認為具體而言，我認為您首先詢問的是第三季前景或全年前景。讓我澄清一下——

Yes, I'm talking more full year. The 24% versus prior 27% and $408 million to $418 million versus the prior $420 million to $430 million.

是的，我說的是全年。 24% 與先前的 27% 相比，4.08 億至 4.18 億美元與先前的 4.2 億至 4.3 億美元相比。

Got it. Okay. Awesome. Well, first of all, let me just reflect a little bit on the first half. We're really pleased with the first half, especially where we ended up at fiscal Q2 on all of our guided metrics, making sure we accelerate it past everything. From a full year perspective, as kind of I thought about the second half in particular, coming off of the first half. I'm also pleased that we did raise our ARR guidance. Previously, we were guiding to 13% increase that to 14% as well as our total revenue also increasing our guidance on total revenue. A lot of that is reflective of a lot of the success that we're seeing on the SaaS business as well, right? When we drive that success, that at that success, and we're able to hit $131 million of ARR. A lot of that does not show up in reported revenue or reported revenue expectations.

知道了。好的。驚人的。好吧，首先讓我回顧一下上半場。我們對上半年感到非常滿意，特別是我們在第二財季結束時所有指導指標的表現，確保我們加速超越一切。從全年的角度來看，我特別考慮了上半年的下半年。我也很高興我們確實提高了 ARR 指導。在此之前，我們的指導是從 13% 增加到 14%，我們的總收入也提高了我們對總收入的指導。這在很大程度上也反映了我們在 SaaS 業務上看到的許多成功，對嗎？當我們推動這項成功時，我們就能達到 1.31 億美元的 ARR。其中許多並沒有體現在報告的收入或報告的收入預期中。

But as I think about the subscription revenue specifically, I think, directly at your question, there's a couple of things that are going on there. We are seeing fewer conversions, so conversions from our existing perpetual support contracts being converted to term software licenses. In today's interest rate environment, those conversions usually come with a multiyear commitment, doing a 3-year commitment and some of the interest rate factors and the cost of money as well as where customers are in their cloud journey at the same time. So we're seeing just some declines year-over-year modestly on the conversion piece as well as the continued trend on term subscription length. So when we sell term subscriptions, our average term is now down to about 2 years. So while that keeps ARR hold and we see the momentum on ARR, it could have a little bit of a short-term impact on the reported revenue results.

但當我具體考慮訂閱收入時，我認為，直接針對你的問題，那裡發生了一些事情。我們發現轉換次數越來越少，因此我們現有的永久支援合約正在轉換為定期軟體許可證。在當今的利率環境中，這些轉換通常需要多年的承諾，即三年期的承諾，以及一些利率因素和資金成本，以及客戶在雲端旅程中的位置。因此，我們看到轉換部分同比略有下降，以及定期訂閱長度的持續趨勢。因此，當我們出售定期訂閱時，我們的平均期限現在已降至約 2 年。因此，雖然這使 ARR 保持不變，並且我們看到了 ARR 的勢頭，但它可能會對報告的收入結果產生一些短期影響。

And then thirdly, just keeping in mind that we're watching the mega deal, the real big deal trends in the spending environment and being cautious on the performance and approval cycles that are out there today.

第三，請記住，我們正在關注大型交易、支出環境中真正的大型交易趨勢，並對當今的績效和審批週期保持謹慎。

Yes. That's very helpful. I appreciate that color. So maybe just the final question, sticking with that topic. How would you characterize the linearity in this quarter, the demand? Have you seen any customers push out projects or delay spending in this environment at this point? Or is it just more cautionary on the macro, the geopolitical environment as more so we look forward?

是的。這非常有幫助。我很欣賞那種顏色。所以也許只是最後一個問題，堅持這個主題。您如何描述本季需求的線性特性？您是否見過任何客戶此時在這種環境下推出專案或推遲支出？還是只是對宏觀、地緣政治環境更加謹慎，讓我們更加期待？

More cautionary. We do not see trends that deteriorated. Our trends that we're seeing in the business on close rates and linearity are consistent with what we've seen over the past few quarters. But relative to the geopolitical nature of what's going on and just being cautionary on the time it takes to close some of those real big deals.

更要謹慎。我們沒有看到趨勢惡化。我們在業務中看到的成交率和線性趨勢與過去幾季的趨勢一致。但相對於正在發生的事情的地緣政治性質，以及對完成一些真正的大交易所需的時間保持謹慎。

Your next question comes from the line of Howard Ma from Guggenheim Securities.

您的下一個問題來自古根漢證券公司的霍華德馬。

So I also want to better understand the lower subscription ARR and revenue guidance because that seems to be the only negative in an otherwise stellar print. Is the -- so I understand the change in the lower migrations from perpetual maintenance to subscription, I didn't think the impact was that big. Can you comment -- I guess for Gary, can you comment, are there any other factors such as -- I mean did you -- were there any deal pull forwards in Q2 in the back half, are you expecting any renewal pushouts? Because I believe this year, it's a pretty back-end weighted or second half weighted rather renew here. And then just given the Metallic strength too, I wouldn't continued strength in Metallic at least on the ARR side? I mean, I understand it takes time for ARR to translate over to revenue, but wouldn't that offset some of the perpetual migrations?

因此，我還想更了解較低的訂閱 ARR 和收入指導，因為這似乎是其他出色印刷品中唯一的負面因素。所以我理解從永久維護到訂閱的較低遷移的變化，我認為影響沒有那麼大。你能發表評論嗎——我想加里，你能發表評論嗎，還有其他因素嗎——我的意思是你——後半段第二季度是否有任何交易提前，你是否期待任何續約推出？因為我相信今年，這是一個相當後端加權或下半年加權而不是在這裡更新。然後考慮到金屬強度，我不會至少在 ARR 方面繼續保持金屬強度嗎？我的意思是，我知道 ARR 需要時間才能轉化為收入，但這不會抵消一些永久遷移嗎？

Yes. Howard, maybe first, quickly on the SaaS side of the Metallics. So the ARR accelerated actually higher than we've seen in current periods, right? If you look at the ARR for SaaS, we went from $113 million to $131 million of ARR. That sequential increase we're seeing on the SaaS side is accelerating faster than we'd actually seen over the past prior quarters. So you can kind of see that as we turned out the SaaS ARR and the acceleration there, coupled with, Howard, what we saw on the net dollar retention rate of 130%. So really a good focus on driving that net dollar retention.

是的。霍華德（Howard）也許是第一個，很快就涉足 Metallics 的 SaaS 領域。所以 ARR 的加速速度實際上比我們當前時期看到的要高，對嗎？如果你看看 SaaS 的 ARR，我們的 ARR 從 1.13 億美元增加到了 1.31 億美元。我們在 SaaS 方面看到的連續成長速度比我們在過去幾季實際看到的要快。所以你可以看到，當我們得出 SaaS ARR 和加速時，再加上 Howard，我們看到的淨美元保留率為 130%。因此，確實要專注於推動淨美元保留。

When I look at the guidance on subscription, it's the biggest factor is viewer conversions. And how you can see that also is you'll see the strong overperformance on the customer support side, right? So if you look at the custom support revenue and you see the acceleration there, meaning the acceleration relative to the prior expectations, that's where you kind of see -- that's where you see the offset. So that's where you see the offset on the positive side there. And it's just the few conversions. We're doing about pay for about half of what we did last year is what I kind of see just based on current pipeline metrics, we're in basically about half of the conversions that we did last year, which is just a transitional in the customer environment as well as monitoring the term length of our deals, right? So getting it down to about 2 years on average.

當我查看訂閱指南時，最大的因素是觀看者轉換。您會看到客戶支援方面的強勁表現，對吧？因此，如果您查看定制支援收入，您會看到那裡的加速，這意味著相對於先前預期的加速，這就是您看到的地方 - 這就是您看到偏移的地方。所以這就是你看到正面偏移的地方。這只是少數的轉換。我們所做的工作大約是去年所做工作的一半，我認為根據當前的管道指標，我們基本上完成了去年所做的轉換的一半左右，這只是一個過渡客戶環境以及監控我們交易的期限，對嗎？所以平均時間可以縮短到兩年左右。

Howard, it's Sanjay. We're just trying to be realistic given we're looking out for the whole year. If there's -- it's just a mix shift. In my mind, there's nothing -- we added, what, over 500 customers in the subscription mix in Q2. Metallic is growing at a very healthy [clip]. We grew 77% ARR year-on-year. So this isn't -- don't read into this in anything, but we're just looking at the pipeline and being very pragmatic about what the mix shift might be. And that's it. I mean business, we had a very great good quarter, and we've raised ARR for the year, and we've raised revenue for the year. So it's -- in my mind, as straightforward as a mix shift inside of the customer buying patterns, whether it be interest rate or where they are in their cloud migration journey.

霍華德，我是桑傑。鑑於我們正在展望全年，我們只是想現實一點。如果有的話——那隻是一個混合轉變。在我看來，沒有什麼——我們在第二季的訂閱組合中增加了 500 多個客戶。金屬正在以非常健康的速度增長[剪輯]。我們的 ARR 年成長 77%。所以這不是——不要在任何事情上解讀這一點，但我們只是在關注管道，並對混合轉變可能是什麼非常務實。就是這樣。我的意思是業務，我們度過了一個非常好的季度，我們提高了今年的 ARR，並且我們提高了今年的收入。因此，在我看來，這就像客戶購買模式內部的混合轉變一樣簡單，無論是利率還是他們在雲端遷移之旅中的位置。

And I do want to -- as a follow-up, I do want to hone in in Metallic because as you guys mentioned, it was a really strong quarter for Metallic ARR per rating to 130%, which is up from, I believe, 118% a quarter ago and then 125% is the quarter prior. Can you just remind us what is the rank order of drivers of growth for Metallic between workload expansion and cross-sell of additional Metallic products? And then on the growth rate, again, very strong, but it has been pretty variable. Is it -- should we expect this kind of variability going forward?

我確實想——作為後續行動，我確實想磨練金屬樂，因為正如你們提到的，這是一個非常強勁的季度，金屬樂的每收視率 ARR 達到 130%，我相信，上一季為118%，上一季為125%。您能否提醒我們，工作量擴展和額外 Metallic 產品交叉銷售之間 Metallic 成長驅動因素的排序是什麼？然後，成長率再次非常強勁，但變化很大。我們是否應該期待這種改變的發生？

Howard, it's Gary. I'll hit that. So there's really good key things. The acceleration that we saw in Metallic net dollar retention by a few things. There's the foundation, first of all, what I mean by the foundation is we're at the point now that we have a mature renal motion. So when we get that mature renewal motion and we see really strong renewal rates, it limits any of the downside on the net dollar retention. So it's built with the foundation. And that foundation is really the focus on what we're doing on onboarding and adoption. So driving to get the customers onboarded, get them to their first backup, get them fully adopted, then that drives the expansion opportunity.

霍華德，是加里。我會擊中那個。所以有一些非常好的關鍵東西。我們看到金屬淨美元保留率因一些原因而加速。首先，這是基礎，我所說的基礎是指我們現在已經有了成熟的腎臟運動。因此，當我們獲得成熟的續約動議並且我們看到非常強勁的續約率時，它限制了淨美元保留的任何下行趨勢。所以它是建立在基礎上的。這個基礎其實是我們在入職和採用方面所做的工作的重點。因此，努力讓客戶加入，讓他們獲得第一個備份，讓他們得到全面採用，然後這推動了擴張機會。

The other thing that we now have is an integrated motion between our customer success and our field sales teams. So as our customers' success teams are driving the adoption with the field teams combined driving the expansion. So it all starts on accelerating the time to first back up and the time to consumption. As I think about the split between I'll use cross-sell and upsell, we're seeing the majority of the expansion being derivative by at this point, upsell, which is generally more of the same products. However, we're now seeing more than 2x growth on some of those mission-critical or the emerging workloads that we see, whether it's sales force dynamics, threat-wise, hybrid cloud, databases, the dollar value of those are now up 2x year-over-year.

我們現在擁有的另一件事是我們的客戶成功和我們的現場銷售團隊之間的一體化行動。因此，我們客戶的成功團隊正在推動採用，而現場團隊則共同推動擴展。因此，這一切都始於加速首次備份時間和消耗時間。當我考慮交叉銷售和追加銷售之間的差異時，我們看到大部分的擴充都是由追加銷售派生，通常更多是相同的產品。然而，我們現在看到一些關鍵任務或新興工作負載成長了 2 倍以上，無論是銷售隊伍動態、威脅智慧、混合雲、資料庫，這些的美元價值現在成長了 2 倍一年又一年。

So it's less of a contribution because it's less of a percent of the total, but the contribution now is starting to become material, even though the majority of it is driven by upsell. So we're getting it from all ends. Just in summary, we're getting that mature rental motion. We're getting the upsell, getting them adopted so we can get expand on more of the same products. And now we're starting to see the cross-sell start to kick in as well.

因此，它的貢獻較小，因為它只佔總數的百分之一，但現在的貢獻開始變得物質化，儘管其中大部分是由追加銷售驅動的。所以我們從各個方面都得到了它。總而言之，我們正在收到成熟的租賃動議。我們正在進行追加銷售，讓它們被採用，這樣我們就可以擴展更多相同的產品。現在我們也開始看到交叉銷售也開始發揮作用。

And Howard, I'd like to add a little bit on just overall some color on the SaaS business. It is a driver of growth. It is growing well. It's the vehicle by which we land hundreds of new customers a quarter. Our security capabilities that we've integrated the Security IQ, which is our delivery platform inside of Metallic for our customers is doing well. Gary talked about the go-to-market capabilities. And we're investing for the future with mission-critical workloads. We thought if I quoted, I think it was Giga that talked in the Sonar report about having -- we had more hybrid cloud and more mission-critical workloads out there that are too tedious to compete.

Howard，我想為 SaaS 業務的整體情況添加一些色彩。它是成長的動力。它生長得很好。這是我們每季吸引數百名新客戶的工具。我們整合了 Security IQ 的安全功能表現良好，Security IQ 是我們在 Metallic 內部為客戶提供的交付平台。加里談到了進入市場的能力。我們正在為未來的關鍵任務工作負載進行投資。我們認為，如果我引用的話，我認為是 Giga 在 Sonar 報告中談到了——我們有更多的混合雲和更多的關鍵任務工作負載，這些工作負載太乏味了，無法競爭。

You have to be one step ahead of the customer. You have to be ready for the workload they want to protect. And that is exactly what we've been doing. And we -- the NRR, we sort of -- we mentioned last quarter that it was -- we thought it was an anomaly and we would get it back to normal sort of pattern. And I think we got that, and we'll keep focusing on it. So it's still a young business. It's 3 years old, in effect, we're very happy with where it is, but there's a lot to do.

你必須比客戶領先一步。您必須為他們想要保護的工作負載做好準備。這正是我們一直在做的事。我們——NRR，我們在上個季度提到——我們認為這是一種異常現象，我們會讓它恢復到正常的模式。我認為我們已經做到了，我們將繼續關注它。所以它仍然是一個年輕的企業。事實上，它已經 3 歲了，我們對它的現狀非常滿意，但還有很多事情要做。

Sanjay, it's great to see the Metallic growth engine kicking in and congrats on the strong quarter.

Sanjay，很高興看到金屬成長引擎啟動並祝賀強勁的季度。

Your next question comes from the line of James Fish from Piper Sandler.

你的下一個問題來自 Piper Sandler 的 James Fish。

Maybe building off of the past couple here. I guess how should we be thinking about net retention rate for Metallic this year and sustainably? Like what are you guys internally kind of targeting for the next couple of years? Just trying to understand that some of this material boost in net retention rate is just catch up from like last quarter, for example, or sustainable. And 2 kind of the points you both have made here, what makes you confident that some of the Metallic strength here isn't due to substitution of your term business, especially if we're talking more mission-critical workloads moving on to Metallic?

也許是在過去的幾對的基礎上建立起來的。我想我們應該如何可持續地考慮今年金屬的淨保留率？你們內部未來幾年的目標是什麼？只是想了解淨保留率的一些實質增長只是趕上了上個季度的水平，例如，或者是可持續的。你們都在這裡提出了兩點，是什麼讓你相信這裡的一些金屬優勢不是由於你的術語“業務”的替代，特別是如果我們正在談論更多任務關鍵型工作負載轉向金屬？

James, it's Gary. I'll start it off. I think the -- we're not guiding explicitly to the SaaS ARR. I think if you see what's kind of at our level of maturity of our SaaS business, meaning in that $130 million-ish of ARR. I think world-class NRR rates are somewhere between 120% to 130%. I think 130% is a little on the high end on a sustainable piece that we delivered this quarter, especially as the base continues to grow every quarter. If we're somewhere in that range of 100% to 125%, right, so bracketed somewhere between last quarter and this quarter on a consistent basis and working towards that, I think that's probably -- I think that's a good measure. We are seeing --

詹姆斯，我是加里。我就開始吧。我認為——我們沒有明確指導 SaaS ARR。我想，如果您了解我們 SaaS 業務的成熟程度，即 1.3 億美元左右的 ARR。我認為世界一流的 NRR 率在 120% 到 130% 之間。我認為 130% 對於我們本季交付的可持續產品來說有點高端，尤其是在每個季度都在持續成長的情況下。如果我們處於100% 到125% 的範圍內，對吧，所以在一致的基礎上將其放在上季度和本季度之間，並朝著這個目標努力，我認為這可能是——我認為這是一個很好的衡量標準。我們看到——

100 -- 120% to 125%.

100——120%至125%。

Yes. Sorry, sorry, 120% to 125%. Sorry, just to clarify that, sorry about that, Jim. And then from a -- more of the hybrid cloud mission-critical workloads, we are start seeing some very good growth on that on the SaaS business. Now that growth right now is incremental. It's not enough to be truly cannibalizing the term-based software licenses from an actual deal perspective, though, customers are in the early innings of their cloud journey, right? So they are taking the time, and that shows up in ASPs and the length of deals were in the early part of their cloud journey and cloud innings of migration. They're taking the time to make sure they measure their spending, and they're only committing to periods right to measure it with what they see in the near term.

是的。抱歉，抱歉，120% 到 125%。抱歉，只是為了澄清這一點，對此感到抱歉，吉姆。然後，從更多的混合雲任務關鍵型工作負載中，我們開始看到 SaaS 業務出現了非常好的成長。現在的成長是漸進的。不過，從實際交易的角度來看，真正蠶食基於術語的軟體授權還不夠，客戶正處於雲端之旅的早期階段，對吧？因此，他們正在花時間，這體現在 ASP 中，並且交易的長度處於雲端之旅的早期階段和雲端遷移階段。他們花時間確保衡量自己的支出，並且他們只承諾在正確的時期內根據他們在短期內看到的情況來衡量支出。

Got it. Helpful. And just remind me here, what really happened at the end of the quarter that essentially SaaS ARR accelerated, but we saw a deceleration secondly, a Metallic revenue that now revenue is actually outpacing ARR. Was it more of a back-end loaded quarter for Metallic? With it being about 77% ARR growth should we be expecting stable Metallic revenue growth for fiscal Q3 essentially versus Q2?

知道了。有幫助。在這裡提醒我一下，本季末真正發生的事情是，SaaS ARR 基本上加速了，但我們其次看到了減速，金屬收入現在的收入實際上超過了 ARR。對於 Metallic 來說，這個季度是否更像是一個後端負載的季度？鑑於 ARR 成長約 77%，我們是否應該預期第三財季金屬營收與第二財季相比會保持穩定成長？

Yes. No, I think stable. Any Metallic contracts that we signed in the second half of the quarter have very, very little revenue impact. So linearity has less of an impact because you just don't get anything -- not much of anything, sorry, not much of anything, once you get past the first half of the quarter or linear Metallic was relative to prior quarters. So nothing unusual, nothing unusual there.

是的。不，我認為穩定。我們在本季下半年簽署的任何金屬合約對收入的影響都非常非常小。因此，線性度的影響較小，因為你什麼也得不到——什麼都沒有，抱歉，一旦你過了本季度的上半段，或者線性金屬相對於前幾季度，什麼也沒有得到。所以沒有什麼不尋常的，沒有什麼不尋常的。

Your next question comes from the line of Rudy Kessinger from D.A. Davidson.

你的下一個問題來自 D.A. 的 Rudy Kessinger。戴維森。

It's great to see the dollar-based net retention rate rebound on Metallic. I guess the flip side of that is when I look at the growth in Metallic ARR from new customers, both on a dollar basis or as a percentage point of growth basis, it was down this quarter versus last quarter. I know your subscription customer adds continue to be about 5.5%. But if you look at your new customers on Metallic, are you seeing customers start smaller just given the macro conditions and financial constraints that customers have? Or what are you seeing from a new perspective on Metallic?

很高興看到 Metallic 以美元為基礎的淨保留率反彈。我想另一方面是，當我觀察新客戶的金屬 ARR 成長時，無論是以美元計算還是按成長百分比計算，本季與上季相比有所下降。我知道您的訂閱客戶增加量仍約為 5.5%。但是，如果您觀察 Metallic 上的新客戶，您是否會發現，考慮到宏觀條件和客戶所面臨的財務限制，客戶開始規模較小？或者您從新的角度看待 Metallic 有何看法？

Rudy, it's Gary. I'll hit that. And good to hear from you. At the first half of the year, we're in good shape with Metallic on the new customer. I think probably some of your math hit it on. We were probably a little stronger in Q1 on new customer. And then in Q2, existing customer was relatively a little stronger than new. But over the first half, that's kind of now evened out. And the business this young, it's hard to look at just one quarter as a long-term trend. We look back over 2, 3, 4, 5 quarters to make sure that our trajectory on both our new existing or happening, and we're pleased with where that is. So we're not reading into the 1 quarter. We still saw over 500 subscription new customers added during the quarter, and the vast majority of those are SaaS. So we're still seeing it.

魯迪，是加里。我會擊中那個。很高興收到你的來信。今年上半年，我們在新客戶上的 Metallic 表現良好。我想你的一些數學知識可能是對的。第一季我們在新客戶方面的實力可能更強。然後在第二季度，現有客戶比新客戶相對強。但在上半場，現在情況已經趨於平衡。而且這個行業還很年輕，很難將僅僅一個季度視為長期趨勢。我們回顧了 2、3、4、5 個季度，以確保我們的新現有或正在發生的軌跡，我們對此感到滿意。所以我們不會解讀第一季。我們仍然看到本季新增了 500 多個訂閱新客戶，其中絕大多數是 SaaS。所以我們仍然看到它。

Now yes, the deal sizes and ASPs or smaller. They're smaller, but we're okay with that because if I go back to the commentary I made on the net dollar retention and that focus on adoption, time to first backup recovery and then driving expansion and workload expansion, we're betting on the future and our ability to drive that expansion as well.

現在是的，交易規模和平均售價或更小。它們規模較小，但我們對此表示同意，因為如果我回顧一下我對淨美元保留率所做的評論，重點是採用、首次備份恢復的時間，然後推動擴展和工作負載擴展，我們打賭未來以及我們推動擴張的能力。

And this is Sanjay, Rudy. The smaller ASPs is kind of part of the plan because we have a velocity business where we lend smaller deals. We have marketplace business, with a smaller deal. We have MSPs that bring in smaller deals that we expand over time. So it's a mix. We sell to the enterprise and we sell through MSPs. We said we've got the whole range.

這是桑傑，魯迪。較小的平均售價是該計劃的一部分，因為我們有速度業務，我們可以藉出較小的交易。我們有市場業務，交易規模較小。我們有 MSP 帶來較小的交易，並隨著時間的推移不斷擴大。所以這是一個混合體。我們向企業銷售，並透過 MSP 銷售。我們說我們擁有全系列產品。

Okay. Got it. That's fair. And then I hear you on the conversion, seeing for your conversions, I guess just if we look at your term license subscription business. If you strip out conversions, as we start to tweak our models for next fiscal year, I know we got a couple of quarters ago for this year. But ex conversions, a subscription license, a single-digit growth business going forward? Is that a low double-digit growth business going forward? What should we be expecting there just over the near to intermediate term?

好的。知道了。這還算公平。然後我聽到你關於轉換，看看你的轉換，我想只要我們看看你的期限許可證訂閱業務。如果你剔除轉換，當我們開始調整下一財年的模型時，我知道今年我們已經在幾個季度前完成了。但要除去轉換、訂閱授權、未來個位數成長的業務嗎？這是一個低兩位數成長的業務嗎？在中短期內我們應該期待什麼？

Yes. So we're not giving obviously the longer-term guidance. But even if I talk a little bit about what we saw in Q2 and what we saw Q2, you can time interrelate that our term license software grew double digits, right? So within subscription, our term software license grew double digits. And that's with our conversion down substantially year-over-year. If you look at the guidance that I gave for fiscal Q3, the quarter that we're currently in, it's a very similar trend. Where we're guiding to roughly double digit within there will be double-digit term software growth year-over-year with same situation, conversions down year-over-year. So we're driving that growth, and we're doing that regardless of the conversions. The conversions are a little variable in there, which is fine. I think they'll stabilize over time. We're just kind of giving an outlook based on currently what we see and where we see customers kind of in that journey.

是的。因此，我們顯然不會給出長期指導。但即使我談了一些我們在第二季度看到的情況以及我們在第二季度看到的情況，您也可以將我們的術語許可軟體增長兩位數與時間聯繫起來，對吧？因此，在訂閱範圍內，我們的術語軟體授權成長了兩位數。這是因為我們的轉換率比去年同期大幅下降。如果你看一下我為第三財季（我們目前所處的季度）提供的指導，你會發現這是一個非常相似的趨勢。在我們指導的範圍內，在相同情況下，定期軟體的同比增長將達到兩位數，轉換率將同比下降。因此，我們正在推動這種成長，而且無論轉換率如何，我們都會這樣做。那裡的轉換有一點變化，這很好。我認為隨著時間的推移它們會穩定下來。我們只是根據目前我們所看到的以及我們在旅程中看到的客戶的情況來給出展望。

There's definitely -- customers are in that hybrid cloud journey where they've got -- they've got to make some tough calls, rearchitect, rebuild, shift, migrate, mission-critical workloads, not just independently but stacks into the cloud. And that's hard. And as -- and part of what we're going to talk about next week is how we're going to help customers through that. So when you look at the complexity of that, it's -- you have to look at it and say, if I am the customer, how would I think about it, I'd say, okay, I got to get to the other side before I make a shift on something. So if you look at the term, when you look at the license model or you look at going from software to SaaS, these are important decisions in the journey with the hybrid cloud. After that, security and cyber risk.

毫無疑問，客戶在混合雲之旅中，他們必須做出一些艱難的決定，重新架構、重建、轉移、遷移關鍵任務工作負載，不僅是獨立的，而且還堆疊到雲端。這很難。我們下週要討論的部分內容是我們將如何幫助客戶度過難關。因此，當你看到它的複雜性時，你必須看看它並說，如果我是客戶，我會如何考慮它，我會說，好吧，我必須到達另一邊在我做出改變之前。因此，如果您查看該術語、許可證模型或從軟體到 SaaS，這些都是混合雲之旅中的重要決策。之後是安全和網路風險。

So there's a lot of factors, and we are very well positioned to help customers with that, and we are, which is why we see the momentum in our security capabilities and customers using that, adding up 500 new plus new customers on the software subscription and SaaS platform. So I wouldn't read into it too much. I would say it's -- they're in the crosshairs of sort of getting from one side to the other in critical mass, and that's what you're kind of seeing there.

因此，有很多因素，我們非常有能力幫助客戶實現這一目標，而且我們確實做到了，這就是為什麼我們看到我們的安全功能和客戶使用該功能的勢頭，軟體訂閱中新增了500 個新客戶和 SaaS 平台。所以我不會過度解讀它。我想說的是——它們處於臨界質量從一側到另一側的十字準線中，這就是你在那裡看到的。

That's helpful. Congrats on the good SaaS figures in the quarter.

這很有幫助。恭喜本季度 SaaS 的良好數據。

(Operator Instructions) Your next question comes from the line of Eric Martinuzzi from Lake Street Capital Markets.

（操作員說明）您的下一個問題來自 Lake Street Capital Markets 的 Eric Martinuzzi。

Yes. The perpetual license for the year, I think in past quarters, you've talked about expectation for $40 million to $50 million for fiscal '24. Given you're at about $27 million here at the midpoint, are you still thinking that $40 million to $50 million range?

是的。我想在過去的幾個季度中，您已經談到了 24 財年 4000 萬至 5000 萬美元的預期。鑑於您的中間值約為 2700 萬美元，您是否仍然認為 4000 萬至 5000 萬美元的範圍？

Yes. It's Gary. That's correct. The trend we've seen in the first half of the fiscal year, I think our trend for the second half will be at similar paces, maybe slightly less as the motion is fully now dedicated to drive the term subscription and SaaS business. We still have some verticals that are out there that still bi-perpetual, but those verticals become limited every single day. So the range of $40 million to $50 million is still fair.

是的。是加里。這是正確的。我們在本財年上半年看到的趨勢，我認為下半年的趨勢將保持類似的速度，可能會稍慢一些，因為該動議現在完全致力於推動術語訂閱和 SaaS 業務。我們仍然有一些垂直領域仍然是雙永久的，但這些垂直領域每天都變得有限。所以4000萬到5000萬美元的範圍還是比較合理的。

Okay. But given the $27 million in the front half, that would mean $23 million would be the mass you would expect?

好的。但考慮到前半部分的 2700 萬美元，這是否意味著 2300 萬美元就是你所期望的品質？

Yes, it will be the high end of the range. Yes, it will be at the high end of range. Yes.

是的，這將是該系列的高端產品。是的，它將處於範圍的高端。是的。

All right. And then it looks like outperformance international revenue, I think, was up 12% in the quarter. Just curious to know if you expect that -- is that just kind of a reversion to the mean? Or are we expecting that to outperform for the remainder of the year?

好的。我認為，該季度的國際營收成長了 12%，表現優於其他公司。只是想知道您是否期望如此——這只是回歸均值嗎？或者我們預計今年剩餘時間的表現會優於大盤？

Yes. Eric, I'll take that. It's Gary again. So very pleased with both of our regions. Our Americas business in total was up about 4%, and our international business was up, as you said, 12%. So both businesses returning to growth, which is that acceleration of total revenue growth of about 7% year-over-year, which we're pleased with. Our EMEA business is driving some strong growth. We're now seeing some really good acceleration on as well the subscription option. The Americas was more mature first and now the international business is driving with some of that really strong subscription adoption. The deal sizes in international are a little bit smaller relative to the Americas. So some of the lumpiness you can get on the Americas on the mega deals and some of the term length topics we've talked about is less prevalent international. So we're able to drive a really strong velocity business in the international markets.

是的。艾瑞克，我會接受的。又是加里。對我們兩個地區都非常滿意。我們的美洲業務總共成長了約 4%，而我們的國際業務，正如您所說，成長了 12%。因此，這兩項業務都恢復了成長，總收入年增約 7%，我們對此感到滿意。我們的歐洲、中東和非洲業務正在推動強勁成長。我們現在看到訂閱選項也得到了一些非常好的加速。美洲首先更加成熟，現在國際業務正在推動一些真正強勁的訂閱採用。相對於美洲，國際交易規模要小一些。因此，美洲地區的一些大型交易和我們討論過的一些期限長度的話題在國際上不太流行。因此，我們能夠在國際市場上推動真正強勁的業務速度。

Your next question comes from the line of Jason Ader from William Blair.

您的下一個問題來自威廉布萊爾 (William Blair) 的傑森阿德 (Jason Ader)。

Just wanted to ask you first on the outlook for customer support revenue. As more of that mix comes from term, do you expect the year-over-year decline to start to subside? You're down 9% in customer support in fiscal '23 this year is going to be something, I guess, slightly lower than that. But do you expect as we move forward into '25 and '26, that we should see that continue to -- the declines continue to subside?

只是想先問您客戶支援收入的前景。隨著更多的混合來自期限，您預計同比下降會開始消退嗎？今年 23 財年的客戶支援下降了 9%，我想，會比這個數字略低。但是，您是否期望隨著我們進入 25 和 26 年，我們應該看到這種情況繼續消退——下降繼續消退？

Yes. Jason, it's Gary. I'll take this question as well. So you've already started to see that even if you look at fiscal Q2 actual, it's one of the smallest declines we've had in quite some time. And the key driver to that is now a higher percentage of that customer support revenue is being driven by term. This year, we're on a pace where we'll get that amount of customer support related to term software licenses probably to be somewhere 45-ish to 50% roughly. And as we enter into next fiscal year, it should be the crossover year, cross other year, meaning that as next fiscal year, the majority of customer support revenue will be derived from the term-related software contracts. That natural motion will then start to flatline the impact. And then what that does, it will start to alleviate some of the headwinds that had on the total revenue growth. A big piece of our total revenue growth becomes the impact of the customer support. And as we get into next fiscal year and the fiscal year after that, that will start to moderate. And you would expect the impact year-over-year or the decline to be significantly less than we've seen in prior years, including this year.

是的。傑森，是加里。我也來回答一下這個問題。因此，您已經開始看到，即使您查看第二財季的實際情況，這也是我們在相當長一段時間內經歷的最小降幅之一。其關鍵驅動力現在是客戶支援收入中較高比例是由期限驅動的。今年，我們將獲得大約 45% 到 50% 左右的與定期軟體許可證相關的客戶支援。當我們進入下一個財年時，它應該是交叉年，跨其他年，這意味著作為下一個財年，大部分客戶支援收入將來自與期限相關的軟體合約。然後，這種自然運動將開始減弱衝擊力。然後，它將開始緩解總收入成長面臨的一些阻力。我們總收入成長的很大一部分來自於客戶支援的影響。當我們進入下一個財年和之後的財年時，這種情況將開始放緩。您預計同比影響或下降幅度將大大小於我們前幾年（包括今年）看到的情況。

Got you. So the only, let's call it, the only sort of more significant headwind will be perpetual license line. Do you have any -- like you talked about $40 million to $50 million sort of towards the high end of that range this year in perpetual license revenue as we move forward into '25 and '26 without pinning you down on specific guidance, do you think that will sort of continue to trail off sort of modestly? Or do you think it will actually be more of a sharp falloff?

明白你了。因此，唯一的，讓我們稱之為，唯一更重要的阻力將是永久的許可線。你有沒有——就像你談到的，隨著我們進入“25”和“26”，今年的永久許可收入將達到4000 萬至5000 萬美元，接近該範圍的高端，但沒有給你提供具體的指導，你有嗎？您認為這種情況會繼續小幅減弱嗎？還是你認為實際上會出現急劇下降？

Modest. I think it will be modest. They will be similar to the impact on total revenue as the customer support does. If we end up somewhere, say, this year at the high end of that $40 million to $50 million, call it, roughly $50 million. Then as we get into next year, we're likely to be in that range, but probably more towards the lower end of that range. So you're talking variability is not significant on a revenue number that's obviously over $800 million.

謙虛的。我認為這會是謙虛的。它們對總收入的影響類似於客戶支援對總收入的影響。如果我們今年最終達到 4000 萬至 5000 萬美元的最高點，那麼就稱之為大約 5000 萬美元。然後，當我們進入明年時，我們可能會處於這個範圍內，但可能更接近該範圍的下限。所以你說的是，對於明顯超過 8 億美元的收入數字來說，可變性並不重要。

Got you. Got you. Okay. Great. And then Sanjay, I got one for you. Just on the SMB and mid-market dynamics, less about competition, but just more about how SMB and mid-market customers are actually purchasing and procuring backup software and backup services. Can you just talk through how you guys have let's call it, adapted your strategy because it does seem like more of that market is shifting towards as-a-service offerings?

明白你了。明白你了。好的。偉大的。然後桑傑，我買了一份給你。只是關於中小型企業和中型市場的動態，較少涉及競爭，而更多的是中小型企業和中型市場客戶如何實際購買和採購備份軟體和備份服務。您能否談談你們如何調整你們的策略，因為似乎有更多的市場正在轉向即服務產品？

Sure. So for that particular segment, we've -- I think we mentioned in a couple of calls prior to this, Jason, that we've invested in a velocity motion, which loosely translates to ISRs plus a channel motion that allows us to go after the velocity of the smaller customers. That's number one. In addition, we've also been working with a growing MSP community and many customers, as you mentioned, like to work through that. The third is marketplaces as the hyperscalers sort of promote their marketplaces, we see customers being able to sort of tap into that motion and develop software or SaaS right through that. So those are just some examples of how we're enabling our technology can be more accessible to our customers in the way they like to purchase.

當然。因此，對於那個特定的部分，我們——我想我們在之前的幾次通話中提到過，Jason，我們已經投資了速度運動，它可以大致翻譯為 ISR 加上通道運動，使我們能夠在小客戶的速度之後。這是第一名。此外，我們也一直在與不斷成長的 MSP 社群合作，正如您所提到的，許多客戶都喜歡解決這個問題。第三個是市場，隨著超大規模企業在某種程度上推廣他們的市場，我們看到客戶能夠利用這一趨勢並透過它開發軟體或 SaaS。這些只是我們如何讓我們的客戶以他們喜歡的購買方式更容易獲得我們的技術的一些例子。

Okay. And one quick follow-up, and then I'll see the floor. On the Metallic business, Sanjay, can you give us a sense of how much of that business is coming from sort of SMB mid-market customers versus enterprise?

好的。快速跟進一下，然後我會見大家。關於金屬業務，Sanjay，您能否讓我們了解該業務有多少來自中小企業中端市場客戶與企業？

I think if the trend has been fairly consistent, the enterprise side of our business is about 1/3 enterprise, roughly 1/3 mid-market and 1/3 SMB. It's not by design necessarily. It seems to be following that. And I'm much quite pleased with it because it de-risks our business, but it also gives us a chance to grow in the areas that we haven't historically like the SMB and the lower mid-market.

我認為，如果趨勢相當一致，我們業務的企業端約佔 1/3 企業，大約 1/3 中端市場和 1/3 中小企業。這不一定是設計使然。似乎是遵循這一點。我對此非常滿意，因為它降低了我們的業務風險，但它也讓我們有機會在我們歷史上沒有的領域（如中小企業和中低端市場）實現成長。

You next question comes from the line of Tom Blakey from KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Tom Blakey。

Just a couple. Sanjay, if you could go back to that hybrid cloud journey answer you gave a prior call questioner, is that company-specific? Or could you talk to just the greater kind of view in the industry in terms of things being complex and there seems to be a bit of a pause, hybrid cloud spend has kind of received a bit of an uptick in the last few quarters, if not longer, as there's been a deceleration in public cloud spend in general. I just wanted to kind of maybe if you could clarify that or give any the color would be helpful.

只是一對。 Sanjay，如果您可以回到之前向提問者提供的混合雲之旅答案，那是特定於公司的嗎？或者您能否談談行業中更廣泛的觀點，即事情很複雜，並且似乎有一點停頓，混合雲支出在過去幾個季度有所上升，如果不會太久了，因為公共雲支出總體上有所放緩。我只是想如果你能澄清這一點或給出任何顏色會有所幫助。

And then just secondly, for -- on the NRR for Metallic, the split up between capacity growth and new services, if you could? And if security is, maybe it's a premature question, but its security impacting that kind of NRR, that would be helpful.

其次，對於金屬的 NRR，容量成長和新服務之間的劃分，如果可以的話？如果安全性確實如此，也許這是一個不成熟的問題，但它的安全性會影響這種 NRR，這會很有幫助。

Okay. Let me process those. So the hyper count journey, my thinking there is the fault. There was -- the customers -- think of us a little bit, first of all, as a trailing indicator. So it's about utilization. It's about workloads that use the commitments that customers have made in the hybrid cloud or the public cloud services. And what we're doing is helping customers through those difficult journeys because as the easy workloads move to the cloud, it gets harder and harder to move entire stack of mission-critical capabilities and run them entirely on public cloud services or hybrid cloud capabilities. And that's what I was kind of referring to.

好的。讓我處理這些。所以超級計數之旅，我的想法是有問題的。首先，客戶將我們視為追蹤指標。所以這是關於利用率的。它涉及使用客戶在混合雲或公有雲服務中做出的承諾的工作負載。我們正在做的就是幫助客戶度過這些艱難的旅程，因為隨著簡單的工作負載轉移到雲端，移動整個關鍵任務功能堆疊並完全在公有雲服務或混合雲功能上運行它們變得越來越困難。這就是我所指的。

And we're helping customers, whether it be through moving that data, whether it's their infrastructure, whether it's their data security, whether it's applying intelligence incentive data management across that stack data is flight. There's a lot of things that move into the hyper cloud sort of open up and we're across a lot of those use cases and a lot of those outcomes. So that's kind of where I was going.

我們正在幫助客戶，無論是透過行動數據，無論是他們的基礎設施，無論是他們的數據安全，無論是在整個堆疊數據中應用智慧激勵數據管理。有很多東西進入了超級雲，我們遇到了很多這樣的用例和很多這樣的結果。這就是我要去的地方。

And it's not so much a -- whether it's increasing or decreasing in spend from a public cloud capability, it's really the utilization and making sure that customers are getting the value that they anticipated from the journey to the cloud. I was CIO. It's moving mission-critical workloads into a cloud or any other platform it requires a lot of -- it is complex and requires a lot of thought for listing the right choices. And that's what we're trying to help our customers with. So that's why -- I want to pause there. Did I cover your question?

與其說是公有雲功能的支出增加或減少，不如說是利用率，並確保客戶從雲端之旅中獲得他們預​​期的價值。我是資訊長。它將關鍵任務工作負載轉移到雲端或它需要的任何其他平台中——它很複雜，需要大量思考才能列出正確的選擇。這就是我們正在努力幫助我們的客戶的。這就是為什麼——我想在這裡暫停一下。我回答你的問題了嗎？

Yes, yes. Just maybe a follow-up there before we get to the NRR. Does that imply from a trailing indicator perspective that there might be some pent-up demand for Commvault in that regard?

是的是的。也許在我們討論 NRR 之前會有一個後續行動。從追蹤指標的角度來看，這是否意味著 Commvault 在這方面可能存在一些被壓抑的需求？

The short answer to that is I would hope so because as customers move to the -- and a lot of what we're going to talk about next week, Tom, is about where we see the customer journey, where we see them sort of having to make tough decisions where -- what are the hard problems are helping them with on data? Do they have to make choices between software and SaaS. The security models using AI. These are recovery capabilities when -- in the life of cyber resilience, these are all important decisions that have to be made as the journey to the cloud becomes more and more pervasive for our customers. And we're trying to be 1 to 2 steps ahead of them in anticipating that. So I would hope so.

對此的簡短回答是，我希望如此，因為隨著客戶轉移到——湯姆，我們下週要討論的很多內容都是關於我們在哪裡看到客戶旅程的，我們在哪裡看到他們的必須做出艱難的決定－哪些難題可以幫助他們解決數據問題？他們是否必須在軟體和 SaaS 之間做出選擇？使用人工智慧的安全模型。這些都是恢復能力——在網路彈性的生命週期中，隨著雲端之旅對我們的客戶變得越來越普遍，這些都是必須做出的重要決策。我們正努力在這一點上領先他們 1 到 2 步。所以我希望如此。

And then just on the 130 is a strong number. Just any type of commentary on the mix of capacity growth and new services there and possibly if securities impacting that, that would be helpful.

然後，130 就是一個強勁的數字。只要對那裡的產能成長和新服務的組合進行任何類型的評論，如果證券可能影響這一點，那都會有幫助。

Tom, it's Gary. I'll take that one. Relative to the 130% of net dollar retention. As you think about the drivers of what drove that from an upsell versus cross-sell, about 2/3 of that comes from upsell, meaning upsell more of a similar capacity or licenses or seats and about 1/3 or roughly there comes from cross-sell, which benefits of the cross-sell motion, whether it be dynamics, whether it be our security offerings, the hybrid cloud for VMs or databases, they're all contributing factors. Absolutely, security is part of that. But we're seeing a little bit more on the upsell and about 1/3 of that expansion and/or driven from cross-sell.

湯姆，我是加里。我會接受那個。相對於淨美元保留的 130%。當您考慮推動追加銷售與交叉銷售的驅動因素時，大約 2/3 來自追加銷售，這意味著追加銷售更多類似的容量、許可證或席位，大約 1/3 或大約來自交叉銷售-銷售，交叉銷售運動的好處，無論是動態的，無論是我們的安全產品、虛擬機器或資料庫的混合雲，它們都是促成因素。當然，安全是其中的一部分。但我們看到更多的是追加銷售，大約 1/3 的擴張和/或來自交叉銷售的推動。

We have no further questions at this time. I will now turn the call over to Michael Melnyk for closing remarks.

目前我們沒有進一步的問題。現在我將把電話轉交給邁克爾·梅爾尼克（Michael Melnyk）做總結發言。

Thank you for joining the call today. If you have any follow-up questions, feel free to reach out to me. Also just a reminder, if you haven't yet registered, the live event will be November 8 in New York City, and then the replay for SHIFT will be on November 9, visit commvault.com to register. Thanks for joining. Appreciate it.

感謝您今天加入通話。如果您有任何後續問題，請隨時與我聯絡。另外提醒一下，如果您還沒有註冊，直播活動將於 11 月 8 日在紐約舉行，然後 SHIFT 重播將於 11 月 9 日進行，請訪問 commvault.com 進行註冊。感謝您的加入。欣賞它。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。