Financial Data and Key Metrics Changes - Total revenue increased by 23% to $275 million, driven by a robust 45% increase in subscription revenue [4][22] - Total ARR improved by 21% to $930 million, with subscription ARR growing by 31% to $780 million, and SaaS ARR jumping by 68% to $281 million [21][22] - Fiscal Q4 gross margins were 83.1%, reflecting a strong mix of term software sales [27] - Non-GAAP EBIT grew by 31% to $59 million, with margins up 130 basis points year over year to 21.5% [28] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by momentum across the SaaS platform and expansion with existing customers [22] - Revenue from term software transactions over $100,000 increased by 38%, benefiting from both volume and average transaction size [22] - Q4 saw the best volume quarter of the year for term software transactions under $100,000, adding 700 new subscription customers, surpassing 12,000 worldwide [23] Market Data and Key Metrics Changes - Strong growth was noted in EMEA and APAC regions, with notable customer wins in highly regulated industries like healthcare and financial services [10][75] - The company is well-positioned to support compliance with regulations such as GDPR and DORA, contributing to strong international growth [9][10] Company Strategy and Development Direction - The company aims to capitalize on strong secular tailwinds tied to cyber resilience and continuous business availability [6][11] - Commvault is focused on expanding its partner ecosystem and enhancing its offerings to address evolving customer needs [5][19] - The total addressable market is estimated to be approximately $24 billion, with plans to invest in cloud and data security integrations [19][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for cyber resilience products and the company's ability to execute its growth strategy [39][40] - The company is closely monitoring the macro environment but remains optimistic about its growth trajectory [30][34] Other Important Information - The company repurchased $165 million of stock, representing 81% of free cash flow, exceeding its guidance to return at least 75% [29] - The company plans to continue investing in cloud and data security integrations across its partner ecosystem [19][34] Q&A Session Summary Question: Customer sentiment regarding macroeconomic conditions and sales cycles - Management indicated that cyber resilience remains a priority for customers, with no significant changes observed in sales cycles or close rates [38][39] Question: Clumio's contribution and integration - Clumio is expected to provide a positive impact on total revenue, with unique capabilities enhancing the company's offerings [48][49] Question: Cross-sell and upsell opportunities within the SaaS portfolio - The company reported a steady net dollar retention rate of 127%, with a mix of two-thirds upsell and one-third cross-sell [53] Question: Competitive landscape and market positioning - Management emphasized the company's focus on resilience and its ability to recover from cyber attacks, highlighting healthy double-digit growth [61] Question: Future product capabilities and market focus - The company is enhancing its capabilities to support emerging workloads, particularly in AI and cloud environments [64][65]

Financial Performance Highlights - Total Annual Recurring Revenue (ARR) reached $930 million, a 21% year-over-year increase[30, 56] - Subscription ARR grew by 31% year-over-year, reaching $780 million and representing 84% of Total ARR[10, 32, 56] - Subscription revenue increased by 45% year-over-year to $173 million[10, 35] - SaaS ARR experienced significant growth, increasing by 68% year-over-year to $281 million[10, 43] - The company maintained a consistent Non-GAAP EBIT margin of 21.5%[10, 54] and generated $204 million in Free Cash Flow[41] Market and Strategic Positioning - The company operates in a large and growing Total Addressable Market (TAM) estimated at $24 billion[8, 15] - The company's platform addresses a wide range of use cases across various environments, offering choice and flexibility[8] - The company is recognized as an innovation leader with over 1,100 active patents[9] Growth and Future Outlook - The company anticipates Total Revenue between $1.13 billion and $1.14 billion for FY'26, representing a 14% year-over-year increase at the midpoint[57] - The company projects Subscription Revenue between $727 million and $732 million for FY'26, a 24% year-over-year increase at the midpoint[57] - The company expects Free Cash Flow between $210 million and $215 million for FY'26[57]

Core Insights - Commvault Systems reported a revenue of $275.04 million for the quarter ended March 2025, reflecting a year-over-year increase of 23.2% [1] - The company's EPS was $1.03, up from $0.79 in the same quarter last year, indicating strong earnings growth [1] - Revenue exceeded the Zacks Consensus Estimate of $263.03 million by 4.56%, and EPS surpassed the consensus estimate of $0.93 by 10.75% [1] Financial Performance Metrics - Annualized Recurring Revenue (ARR) was reported at $930.05 million, slightly above the estimated $913.07 million [4] - Revenue from perpetual licenses was $14.96 million, exceeding the average estimate of $12.41 million, but showing a year-over-year decline of 1.5% [4] - Revenue from other services was $10.34 million, below the average estimate of $10.71 million, representing a year-over-year decrease of 7.7% [4] - Customer support revenue was $76.51 million, slightly below the estimated $77.24 million, with a year-over-year change of -0.7% [4] - Subscription revenue significantly increased to $173.23 million, surpassing the average estimate of $159.03 million, marking a year-over-year growth of 44.5% [4] Stock Performance - Commvault's shares have returned +5.2% over the past month, contrasting with a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Commvault Systems (CVLT) reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and up from $0.79 per share a year ago, representing an earnings surprise of 10.75% [1] - The company achieved revenues of $275.04 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.56%, and up from $223.29 million year-over-year [2] - Commvault has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The immediate price movement of Commvault's stock will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is $0.98 on revenues of $262.8 million, and for the current fiscal year, it is $4.03 on revenues of $1.1 billion [7] Industry Context - The Computer - Software industry, to which Commvault belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - The performance of Commvault's stock may also be influenced by the overall industry outlook, as top-ranked industries tend to outperform lower-ranked ones significantly [8]

Financial Data and Key Metrics Changes - Total revenue increased by 23% to $275 million, driven by a robust 45% increase in subscription revenue [5][23] - Total ARR improved by 21% to $930 million, with subscription ARR growing by 31% to $780 million, and SaaS ARR jumping by 68% to $281 million [22][23] - Fiscal Q4 gross margins were 83.1%, reflecting a strong mix of term software sales [27] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by momentum across the SaaS platform and expansion with existing customers [23] - Revenue from term software transactions over $100,000 increased by 38%, with more than a dozen transactions exceeding $1 million [23] - Q4 saw the addition of 700 new subscription customers, surpassing 12,000 worldwide [24] Market Data and Key Metrics Changes - Strong customer wins included notable companies such as American Tower and Cinemark Holdings, reflecting current tailwinds in the industry [9] - EMEA and APAC regions showed balanced growth, with EMEA having a particularly strong quarter [72] Company Strategy and Development Direction - The company is focused on cyber resilience as a top strategic priority, addressing increasing ransomware and sophisticated cyber attacks [9] - Plans to continue investing in cloud and data security integrations across the partner ecosystem, expanding the total addressable market to approximately $24 billion [20][30] - The company aims to drive increased multi-product adoption of its SaaS offerings, with a strategic priority to enhance cross-sell opportunities [26][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the guidance for fiscal year '26, citing strong demand for cyber resilience products and internal execution [41][42] - The macro environment is being monitored closely, but no significant changes in customer sentiment were noted between Q4 and Q1 [39][41] - The company expects total revenue for Q1 to be in the range of $266 million to $270 million, representing a 19% year-over-year growth at the midpoint [30] Other Important Information - The company ended the quarter with no debt and $302 million in cash, with a free cash flow of $76 million for Q4 [28][29] - Fiscal year '26 total ARR growth is expected to be between 16% to 17% year-over-year, driven by subscription ARR growth of 22% to 23% [32][33] Q&A Session Summary Question: Customer sentiment regarding macroeconomic conditions and cyber resilience - Management indicated that cyber resilience remains a priority for customers, with no significant changes in sales cycles or close rates observed [39][41] Question: Operating margin guidance and growth versus margin trade-off - Management emphasized a balance between continued investment in growth opportunities and maintaining overall profitability [42][43] Question: Contribution of Clumio acquisition to revenue - Clumio is expected to contribute approximately 100 basis points to total revenue, with excitement about its unique capabilities [47][49] Question: Cross-sell and upsell opportunities within the SaaS portfolio - The company reported a SaaS net dollar retention rate of 127%, with a focus on increasing multi-product adoption among customers [52][81] Question: Competitive landscape and response to acquisitions in the industry - Management highlighted a focus on resilience and the ability to recover from cyber attacks, asserting that the company is gaining market share despite a flat overall on-premise market [59] Question: Future focus on workloads and capabilities - The company plans to enhance capabilities that support AI and emerging workloads, emphasizing the importance of resilience in their offerings [61][62]

Revenue Growth - Total revenues for Q4 2025 were $275 million, representing a 23% year-over-year increase[5] - Subscription revenue reached $173 million in Q4 2025, up 45% year-over-year[5] - Total annualized recurring revenue (ARR) grew to $930 million, a 21% increase year-over-year[5] - Full year total revenues were $996 million, reflecting a 19% year-over-year growth[5] - Full year subscription revenue was $590 million, up 37% year-over-year[5] - Total revenues for the fiscal year ended March 31, 2025, were $995.619 million, a significant increase from $839.247 million in the previous year, representing a growth of approximately 18.6%[24] - Subscription revenues for the fourth quarter were $173.228 million, up from $119.873 million in the same quarter last year, reflecting a growth of approximately 44.5%[24] Cash Flow and Financial Position - Operating cash flow for the full year was $207 million, with free cash flow of $204 million[5] - Cash flow from operations for the full fiscal year was $207 million, compared to $203.798 million in the previous year[29] - As of March 31, 2025, cash and cash equivalents were approximately $302 million[26] - The company repurchased approximately 1,215,000 shares for $165 million during the fiscal year[5] - During the fiscal year, Commvault repurchased $165 million worth of common stock, approximately 1,215,000 shares, at an average price of $135.77 per share[22] Operating Performance - Income from operations (EBIT) for the fourth quarter was $27 million, with an operating margin of 9.7%[22] - Operating expenses for the fiscal year increased to $742.846 million from $612.282 million, representing a rise of approximately 21.3%[24] - GAAP income from operations for Q1 2025 was $26,727 million, up from $18,190 million in Q1 2024, representing a 47% increase[31] - Non-GAAP income from operations for Q1 2025 was $59,097 million, compared to $45,216 million in Q1 2024, reflecting a 31% growth[31] Net Income - Non-GAAP net income for the fourth quarter was $46 million, or $1.03 per diluted share[22] - The company reported a GAAP net income of $76.106 million for the fiscal year, down from $168.906 million in the previous year[29] - GAAP net income for the year ended March 31, 2025, was $76,106 million, down from $168,906 million in the previous year, indicating a decline of 55%[31] - Non-GAAP net income for the year ended March 31, 2025, increased to $164,954 million from $134,364 million, marking a 23% rise[31] Future Projections - For Q1 2026, total revenues are expected to be between $266 million and $270 million[11] - Subscription revenue for Q1 2026 is projected to be between $166 million and $170 million[11] - Subscription ARR is expected to grow between 22% and 23% year-over-year for fiscal 2026[11] Tax and Compensation - The company reported a non-GAAP effective tax rate reduction from 27% to 24% starting in fiscal 2025[41] - The estimated non-GAAP effective tax rate for Commvault is adjusted to 24% for fiscal 2025, down from 27% for fiscal 2024[51] - Commvault believes that the 24% tax rate aligns more closely with its effective tax rate expectations over the next few years[51] - Total stock-based compensation expense for Q1 2025 was $28,840 million, up from $21,093 million in Q1 2024, reflecting a 37% increase[38] Acquisitions - Commvault incurred costs related to the acquisitions of Appranix, Inc. and Clumio, Inc. during fiscal 2025, including legal, accounting, and advisory services[51] Miscellaneous - Commvault's annualized recurring revenue (ARR) metric is designed to provide insights into the value of its recurring revenue streams[50] - The company does not provide forward-looking guidance on a GAAP basis due to the unavailability of certain financial information[50]

Core Insights - Commvault reported record-breaking financial results for the fourth quarter and fiscal year ended March 31, 2025, with significant growth in subscription revenue and customer base [2][7][18]. Financial Performance Highlights - Total revenues for Q4 2025 were $275 million, representing a 23% increase year over year [7]. - Subscription revenue for Q4 2025 reached $173 million, up 45% year over year [7]. - For the full fiscal year 2025, total revenues were $996 million, a 19% increase from the previous year [7]. - Annualized recurring revenue (ARR) grew to $930 million, up 21% year over year [7]. - Non-GAAP net income for Q4 2025 was $46 million, or $1.03 per diluted share [20][22]. Operational Metrics - Income from operations (EBIT) for Q4 2025 was $27 million, with a 9.7% operating margin [19]. - Non-GAAP EBIT for Q4 2025 was $59 million, reflecting a 21.5% operating margin [19]. - Operating cash flow for Q4 2025 was $77 million, with free cash flow of $76 million [7][22]. Share Repurchase and Cash Management - Commvault repurchased $30 million worth of shares in Q4 2025, totaling approximately 182,000 shares [22]. - For the full fiscal year, share repurchases amounted to $165 million, or about 1,215,000 shares [22]. Guidance for Future Performance - The company expects total revenues for Q1 FY 2026 to be between $266 million and $270 million, with subscription revenue anticipated to be between $166 million and $170 million [5]. - For the full fiscal year 2026, total revenues are projected to be between $1,130 million and $1,140 million, with subscription revenue expected to be between $727 million and $732 million [5].

Core Insights - Commvault has enhanced its Cleanroom Recovery technology, providing advanced capabilities for managed service providers (MSPs) to help enterprises recover from cyberattacks more efficiently [1][6]. Group 1: Cleanroom Recovery Technology - The Cleanroom Recovery offering allows companies to restore their infrastructure using a validated clean image, significantly reducing recovery time and ensuring that systems are free from ransomware [3][9]. - The introduction of "Factory Reset" enables rapid infrastructure recovery, allowing organizations to focus on validating recovered data rather than the underlying infrastructure [3][4]. - Commvault's Cleanroom Recovery can reduce recovery time from over seven hours to zero wait time for most applications, minimizing disruption and protecting revenue [4]. Group 2: Integration with Threat Scanning - Commvault is integrating its Cloud Threat Scan with Cleanroom Recovery, allowing organizations to scan recovered data for threats, enhancing confidence in data integrity post-recovery [5][7]. - The combination of real-time threat detection and automated recovery processes helps ensure that clients' systems are restored to a pristine state, reducing the risk of reinfection [7][8]. Group 3: Focus on Managed Service Providers - Commvault is extending Cleanroom Recovery capabilities to MSPs, enabling them to offer advanced recovery solutions to their customers, thereby enhancing enterprise resilience [6][11]. - The enhancements in Cleanroom Recovery provide MSPs with tools to deliver efficient and reliable recovery services, ensuring that clients' infrastructures are restored without malicious elements [7][9]. Group 4: Continuous Innovation and Testing - The Cleanroom Recovery technology allows organizations to regularly test and retest their cyber recovery plans, ensuring preparedness against future incidents [8][9]. - Commvault's cloud-native architecture supports multiple isolated recovery environments, facilitating proactive recovery strategies through automated testing [9].

Core Insights - Commvault has achieved GovRAMP Authorized status at a High Impact Level, making it the only cyber resilience vendor to hold this designation, along with FedRAMP High Authorization and FIPS 140-3 validation for its SaaS solutions [1][4][5] Group 1: Achievements and Significance - The GovRAMP Authorized status signifies that Commvault Cloud meets the highest security and risk management standards, reinforcing its commitment to cyber resilience in the public sector [3][4] - This achievement allows state and local government agencies, as well as educational institutions, to securely manage critical data while adhering to stringent security verification standards [1][2] Group 2: Benefits for Customers - Commvault Cloud's GovRAMP Authorized status provides significant advantages for SLED organizations, including enhanced data protection against breaches and unauthorized access [8] - The authorization supports compliance with federal and state regulations, thereby reducing non-compliance risks [8] - It builds trust among government agencies by adhering to recognized security frameworks, facilitating easier procurement and implementation of secure solutions [8] Group 3: Customer Testimonials - Customers, such as the Chief of Information Technology at the State of Delaware Department of Corrections, have noted that Commvault's solutions have significantly improved their cyber resilience capabilities and operational continuity [6][7]

Core Insights - Commvault and CrowdStrike have expanded their partnership to provide a unified set of services focused on incident response, cyber recovery, and resilience, enabling organizations to recover faster and be better prepared for cyberattacks [1][2][4] Group 1: Partnership Overview - The collaboration combines CrowdStrike's elite incident response services with Commvault's recovery expertise, addressing the entire lifecycle of a cyber incident from preparation to recovery [1][4] - The partnership aims to improve readiness, response times, and recovery outcomes for joint customers, reflecting the increasing demand for integrated cybersecurity solutions [2][3] Group 2: Service Offerings - The unified suite includes CrowdStrike's incident response services and Commvault's Guardian retainer-based services, which encompass readiness assessments, recovery validation, and incident response recovery assistance [5][7] - The integration between Commvault Cloud and CrowdStrike's AI-native Falcon® platform enhances the ability to identify malicious activities and restore compromised data [5] Group 3: Market Context - Ransomware attacks occur every 14 seconds, with average recovery times of 24 days, highlighting the critical need for effective cyber resilience strategies [3][10] - The partnership addresses both pre-attack preparedness and post-attack recovery, which are essential for organizations facing sophisticated cyber threats [3][4] Group 4: Customer Benefits - Customers will experience faster incident response and recovery through real-time threat visibility and rapid restoration capabilities [7] - Enhanced risk mitigation is achieved through joint cyber resilience maturity assessments and continuous recovery testing [7] - The collaboration provides tailored support and scalability, ensuring that services meet specific resilience needs of each customer [7] Group 5: Industry Engagement - Commvault will showcase the integrated offerings at the RSAC Conference from April 28 to May 1, 2025, providing opportunities for attendees to learn more about the partnership and its solutions [8]