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]

Financial Highlights - Subscription revenue increased by 46% year-over-year to $182 million[10] - Subscription ARR grew by 33% year-over-year to $844 million, representing 85% of total ARR[10] - SaaS ARR increased by 63% year-over-year to $307 million, accounting for 31% of total ARR[10] - The company achieved a SaaS Net Dollar Retention Rate (NRR) of 125%[10] - Non-GAAP EBIT margin was 20.7%[10] Market and Growth - The Total Addressable Market (TAM) is $24 billion in 2024E and expected to reach $38 billion in 2028E, representing a 12% growth[8, 15] - The company is on pace to exceed $1 billion in ARR ahead of schedule, with a 24% year-over-year growth[30] - The company has a large subscription customer base, with a 31% year-over-year growth, totaling 12,900 customers[10] Cyber Resilience Platform - The company's cyber resilience platform accelerates recovery by 2.7x on average[19] - The company offers cloud resource discovery and mapping to lower resilience risk and speed recovery of cloud applications[23] - The company provides air-gapped immutable storage across all major hyperscalers to support dual-cloud compliance[24]

Financial Performance - Total revenue reached $282 million, representing a 26% year-over-year growth[4] - Annualized Recurring Revenue (ARR) increased to $996 million, up 24% year-over-year[4] - Subscription revenue was $182 million, a 46% increase year-over-year, with SaaS revenue growing 66% to $72 million[4] - Non-GAAP EBIT was $58 million, resulting in an operating margin of 20.7%[4] - Total revenues for the three months ended June 30, 2025, were $281.978 million, a 25.5% increase from $224.672 million in the same period of 2024[23] - Total subscription revenues reached $181.727 million, up 46.4% from $124.080 million year-over-year[23] - Net income for the quarter was $23.496 million, representing a 26.5% increase compared to $18.527 million in the prior year[23] - Non-GAAP net income for the quarter was $45.634 million, an increase of 18.6% from $38.402 million in the same quarter of 2024[32] - Non-GAAP diluted earnings per share for the quarter were $1.01, compared to $0.85 in the same period last year, reflecting a 18.8% increase[32] - The company reported a gross margin of 82.0% for the quarter, slightly down from 82.3% in the previous year[33] - Deferred revenue increased to $664.870 million, up from $626.212 million in the previous quarter, indicating strong future revenue potential[27] Cash Flow and Expenses - Free cash flow is anticipated to be between $210 million and $215 million for FY 2026[9] - The company generated $31.681 million in cash from operating activities, a decrease from $44.692 million in the same quarter of 2024[30] - Commvault reported stock-based compensation expenses of $30.1 million for the three months ended June 30, 2025, compared to $22.4 million for the same period in 2024, reflecting a year-over-year increase of approximately 34%[39] - The cost of revenues related to stock-based compensation was $1.25 million in Q1 2025, down from $1.58 million in Q1 2024, indicating a decrease of about 21%[39] - Operating expenses increased to $206.110 million, a 23.8% rise from $166.456 million in the same quarter of 2024[23] Future Projections - The company expects total revenues for Q2 FY 2026 to be between $272 million and $274 million[9] - Subscription revenue for FY 2026 is projected to be between $753 million and $757 million, with an expected growth of 24% year-over-year[9] - The acquisition of Satori Cyber, Ltd. is expected to close in Q2 FY 2026, contributing to future growth[5] Recognition and Achievements - Commvault has been recognized as a Leader in the Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the 14th consecutive time[4] Legal and Compliance - The company incurred approximately $1.5 million in legal settlement costs during the first quarter of fiscal 2025, with $0.7 million recorded in general and administrative expenses[50] Non-GAAP Measures - Non-GAAP net income and diluted EPS incorporate a non-GAAP effective tax rate of 24%[41] - Commvault's annualized recurring revenue (ARR) includes all active contracts and is calculated by dividing the total contract value by the number of days in the contract term and multiplying by 365[49] - Commvault's non-GAAP free cash flow is defined as net cash provided by operating activities less purchases of property and equipment, which is considered a useful metric for evaluating cash generation[45] - The company has excluded certain costs related to acquisitions, such as those for Appranix, Inc. and Clumio, Inc., to help investors understand underlying operational trends[51] - Non-GAAP gross margin is defined as GAAP gross margin adjusted to exclude costs related to noncash stock-based compensation[44] - Commvault's management provides reconciliations of non-GAAP financial measures to GAAP measures to assist investors in understanding the financial results[40] - The company anticipates that its GAAP and cash tax rates will align over time, despite historical fluctuations[42] Cybersecurity Enhancements - Commvault announced enhancements to its post-quantum computing capabilities to protect sensitive data from new cyber threats[4]

Core Insights - Commvault reported a record total revenue of $282 million for the fiscal first quarter ended June 30, 2025, representing a 26% year-over-year increase [1][5] - The Annualized Recurring Revenue (ARR) grew to $996 million, up 24% year-over-year [1][5] - Subscription revenue reached $182 million, a 46% increase year-over-year, with SaaS revenue growing by 66% [5][19] Financial Performance - Total revenues for Q1 2026 were $282 million, up 26% from $224.7 million in Q1 2025 [5][20] - Subscription ARR increased to $844 million, reflecting a 33% year-over-year growth [5][16] - Non-GAAP EBIT was $58 million, with an operating margin of 20.7% [5][19] Business Highlights - Commvault has been recognized as a Leader in the Gartner Magic Quadrant for Backup and Data Protection Platforms for the 14th consecutive time [5] - The company announced enhancements to its post-quantum computing capabilities to protect sensitive data from emerging cyber threats [5] - Strategic partnerships with CrowdStrike, Deloitte, HPE, and Kyndryl were strengthened to enhance incident response and cyber resilience [5] Guidance and Outlook - For Q2 FY 2026, total revenues are expected to be between $272 million and $274 million, with subscription revenue projected between $174 million and $176 million [4][5] - For the full fiscal year 2026, total revenues are anticipated to be between $1,161 million and $1,165 million, with total ARR expected to grow 18% year-over-year [4][5] - Non-GAAP gross margin is expected to be between 81% and 82% for both Q2 and the full fiscal year [5][19]

Core Insights - Commvault intends to acquire Satori Cyber Ltd to enhance its cyber resilience platform with advanced data and AI security capabilities [1][3] - The acquisition aims to address the challenges enterprises face due to AI adoption, data growth, and regulatory pressures in hybrid and multi-cloud environments [2][3] Company Strategy - By integrating Satori's capabilities, Commvault will support compliance requirements, mitigate risks, and control access to sensitive data, which is crucial in the AI era [3][4] - The acquisition will enhance Commvault's existing offerings in data discovery, classification, and policy management for both structured and unstructured data [3][4] Industry Context - The growing complexity of securing sensitive data across distributed environments is a significant concern as enterprises accelerate AI and modern data platform adoption [4] - Satori's unique capabilities in multi-cloud data activity monitoring and policy enforcement will strengthen Commvault's ability to help clients simplify compliance efforts and mitigate security risks [4][6] Acquisition Details - The acquisition is expected to close in August 2025 [5] - Commvault serves over 100,000 organizations, providing a comprehensive cyber resilience platform that combines data security and rapid recovery across various workloads [6]

Core Viewpoint - Commvault Systems (CVLT) has experienced a decline of 5.1% in its stock price over the past two weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out of the stock, with reduced selling pressure and a potential shift in control from bears to bulls [2][5]. - This pattern is characterized by a small candle body with a long lower wick, suggesting that after reaching a new low, the stock found support and closed near its opening price [4][5]. - Hammer candles can appear on various timeframes and are utilized by both short-term and long-term investors [5]. Fundamental Analysis - Recent upward revisions in earnings estimates for Commvault are viewed as a bullish indicator, correlating strongly with potential near-term stock price movements [7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 0.6%, indicating that analysts expect better earnings than previously predicted [8]. - Commvault currently holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Insights - Analysts expect Commvault Systems (CVLT) to report quarterly earnings of $0.97 per share, reflecting a year-over-year increase of 14.1% [1] - Projected revenues are anticipated to be $268.67 million, which represents a 19.6% increase from the same quarter last year [1] - The consensus EPS estimate has been revised upward by 0.7% over the past 30 days, indicating a positive reassessment by analysts [1] Revenue Estimates - The consensus estimate for 'Revenues- Perpetual license' is $13.06 million, showing a decline of 4.9% year-over-year [4] - 'Revenues- Other services' is estimated at $10.32 million, indicating a decrease of 2.4% from the previous year [4] - 'Revenues- Customer support' is projected to be $76.52 million, reflecting a slight increase of 0.3% year-over-year [4] Subscription and Recurring Revenue - Analysts project 'Revenues- Subscription' to reach $168.78 million, marking a significant year-over-year increase of 36% [5] - The estimated 'Annualized Recurring Revenue (ARR)' is expected to be $965.47 million, compared to $803.00 million from the previous year [5] Market Performance - Over the past month, Commvault shares have experienced a decline of 3.6%, while the Zacks S&P 500 composite has increased by 5.7% [5] - Commvault holds a Zacks Rank 1 (Strong Buy), suggesting it is likely to outperform the overall market in the near future [5]

Core Insights - Commvault has launched Clumio Backtrack for Amazon DynamoDB, enabling near-instant data recovery for organizations using this popular NoSQL database [1][4] - The new offering allows for granular recovery, enabling teams to restore individual partitions rather than entire tables, significantly reducing recovery times and costs [4][5] - Clumio Backtrack is positioned as an industry-first solution that enhances operational efficiency and minimizes downtime for organizations managing complex data environments [4][5] Company Overview - Commvault is recognized as a leader in cyber resilience and data protection solutions, serving over 100,000 organizations globally [9][10] - The company aims to provide the lowest Total Cost of Ownership (TCO) while ensuring rapid recovery and robust data security across various workloads [10] Product Features - Clumio Backtrack for DynamoDB allows teams to revert tables to a prior point in time without reconfiguration, streamlining the recovery process [4][5] - The solution employs an "incremental forever" backup model, which enhances recovery speed and precision compared to traditional full backup methods [4] - Clumio Backtrack is now available globally through the AWS Marketplace, with a consumption-based pricing model [7] Industry Context - Amazon DynamoDB is a critical technology for cloud-first development teams, particularly for applications requiring high scalability and low latency [2][5] - The introduction of Clumio Backtrack addresses the growing need for data resilience and availability, particularly in the context of agile development and AI-driven applications [5][6]

Welcome to another edition of Zach's Rank Buy. I'm Brian Bolan. I'm the aggressive growth stock strategist here at Zachs.And I got two more stocks for your aggressive growth radar screen. Let's get right to it, shall we. The first one uh is Convault Systems.Convaltult Systems. And it's CV LT. It's a Zach's rank number one. That's a strong buy.And it's got a A for growth and an F for value. And if you've been following my videos, you know that I like a strong growth score and a weak value score. That tells m ...

Group 1: Stock Performance - Commvault Systems (CVLT) closed at $166.73, down 1.68% from the previous day, underperforming the S&P 500 which lost 0.4% [1] - Over the past month, shares of Commvault Systems have decreased by 9.58%, while the Computer and Technology sector gained 6.34% and the S&P 500 gained 4.97% [1] Group 2: Upcoming Earnings - Commvault Systems is set to release its earnings report on July 29, 2025, with projected earnings per share (EPS) of $0.97, reflecting a 14.12% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is projected at $268.63 million, up 19.57% from the same quarter last year [2] Group 3: Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $4.14 per share and revenue of $1.13 billion, indicating increases of 13.42% and 13.97% respectively from the previous year [3] Group 4: Analyst Estimates - Recent changes to analyst estimates for Commvault Systems indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which reflects these estimate changes, currently ranks Commvault Systems as 1 (Strong Buy) [6] Group 5: Valuation Metrics - Commvault Systems has a Forward P/E ratio of 40.96, which is a premium compared to the industry average Forward P/E of 25.74 [7] - The Computer - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 30, placing it in the top 13% of over 250 industries [7]