Core Viewpoint - Commvault Systems (CVLT) reported quarterly earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.87 per share, and showing an increase from $0.78 per share a year ago, indicating a positive earnings surprise of 8.05% [1] Financial Performance - The company achieved revenues of $262.63 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.97%, and up from $216.81 million year-over-year [2] - Over the last four quarters, Commvault has consistently exceeded consensus EPS estimates and revenue expectations [2] Stock Performance - Commvault shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The immediate price movement of the stock will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $251.2 million, and for the current fiscal year, it is $3.43 on revenues of $954.7 million [7] - The estimate revisions trend for Commvault is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Computer - Software industry, to which Commvault belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenue increased by 21% to $263 million, driven by a 39% increase in subscription revenue [4][21] - Non-GAAP EBIT margins were reported at 20.8%, reflecting strong profitability [4][26] - Total ARR grew by 18% to $890 million, with a constant currency increase of 21% to $911 million [23] Business Line Data and Key Metrics Changes - Subscription ARR, which includes term-based licenses and SaaS contracts, increased by 29% to $734 million, accounting for 83% of total ARR [23] - SaaS ARR grew by 71% to $259 million, with a constant currency growth of 75% [23] - Revenue from term software transactions over $100,000 increased by 18%, benefiting from a 30% rise in volume [21] Market Data and Key Metrics Changes - The company saw increased transaction volumes and strong close rates across various geographies and market segments [16] - The healthcare sector contributed to significant enterprise wins, including partnerships with major organizations [21][24] Company Strategy and Development Direction - The company is focused on capitalizing on the dynamic cyber resilience market, emphasizing the need for a unified resilience platform [5][6] - Innovations such as Cloud Rewind and enhanced Active Directory recovery capabilities are positioned as key differentiators in the market [9][12] - The strategy includes a strong go-to-market motion and an expanding partner ecosystem to scale globally [16][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing frequency of cyber attacks as a driving force behind demand for their solutions [46] - The company is optimistic about achieving fiscal year 2026 targets earlier than initially planned, with a focus on continued investment in growth initiatives [33][30] - The outlook for fiscal Q4 includes expected subscription revenue growth of 35% year-over-year at the midpoint [29] Other Important Information - The company ended the quarter with no debt and $240 million in cash, reflecting a strong balance sheet [27] - Free cash flow for Q3 was reported at $30 million, with stock repurchases totaling $32 million [28] Q&A Session Summary Question: Momentum in SaaS customer base - Management noted that approximately 200 of the 1,000 new subscription customers came from Clumio, with the remainder being organic growth [36] Question: Acceleration from external factors - Management attributed growth to both external market conditions and internal execution, emphasizing the importance of their platform in addressing customer needs [46] Question: Seasonality in net new ARR - Management acknowledged that Q4 is typically stronger, but emphasized strong pipeline and field execution as key factors for continued growth [48] Question: Operating leverage outlook - Management indicated that FY 2025 is a year of investment, with expectations for improved operating leverage in the future [55] Question: Greenfield opportunity for protecting SaaS apps - Management expressed confidence in expanding offerings for cloud-native workloads, highlighting recent partnerships and innovations [82] Question: Impact of foreign exchange on guidance - Management confirmed that foreign exchange impacts were considered in the revised guidance, with organic growth remaining strong [89]

Financial Performance - Total revenues for Q3 2025 were $262.6 million, representing a 21% year-over-year increase[4] - Annualized recurring revenue (ARR) grew to $890 million, up 18% year-over-year, or 21% on a constant currency basis[4] - Subscription revenue reached $158.3 million, a 39% increase year-over-year[4] - GAAP net income for Q3 2025 was $11.0 million, or $0.24 per diluted share[19] - Total revenues for the three months ended December 31, 2024, increased to $262.63 million, up 21.1% from $216.81 million in the same period of 2023[21] - Subscription revenue rose to $158.32 million, a 38.6% increase compared to $114.25 million in Q3 2023[21] - Net income for the three months ended December 31, 2024, was $11.02 million, a decrease of 35.8% from $17.14 million in the same period of 2023[21] Operating Metrics - Non-GAAP operating income (EBIT) was $54.6 million, with an operating margin of 20.8%[19] - Free cash flow for the quarter was $29.9 million, with operating cash flow at $30.1 million[19] - Operating expenses for the three months ended December 31, 2024, were $200.40 million, up 27.8% from $156.70 million in Q3 2023[21] - GAAP income from operations for Q3 2024 was $13,615, down from $21,051 in Q3 2023, representing a decrease of 35.5%[31] - Non-GAAP income from operations for Q3 2024 was $54,581, an increase of 16.5% compared to $46,692 in Q3 2023[31] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $243.58 million, down from $312.75 million at the beginning of the period[27] - The company reported a net cash provided by operating activities of $30.15 million for the three months ended December 31, 2024, compared to $44.44 million in Q3 2023[27] - Total assets as of December 31, 2024, were $1.02 billion, an increase from $943.91 million as of March 31, 2024[24] Shareholder Actions - Commvault repurchased approximately 200,000 shares of common stock for $31.9 million at an average price of $160.07 per share during Q3 2025[19] Future Projections - The company expects total revenues for Q4 2025 to be between $260 million and $264 million[10] - Subscription revenue for Q4 2025 is projected to be between $160 million and $164 million[10] - Total ARR is anticipated to grow between 19% and 20% year-over-year for the full fiscal year 2025[10] Tax and Expenses - Commvault lowered its estimated non-GAAP effective tax rate from 27% to 24% starting in fiscal 2025[41] - The company reported a significant increase in stock-based compensation expense, totaling $31,156 for Q3 2024, compared to $24,602 in Q3 2023, an increase of 26.5%[39] - Restructuring charges primarily related to severance and stock-based compensation amounted to approximately $1.5 million[7] - Legal settlement costs incurred were approximately $1.5 million, with $0.7 million recorded in general and administrative expenses for the nine months ended December 31, 2024[9] Acquisitions and Impairments - Costs associated with the acquisitions of Appranix, Inc. and Clumio, Inc. included legal, accounting, and advisory services, impacting operating results[10] - Noncash impairment charges of assets held for sale were recognized[11] - Change in estimated fair value of contingent consideration related to the acquisition of Appranix, Inc. was noted[12]

TINTON FALLS, N.J., Jan. 28, 2025 /PRNewswire/ -- Commvault [Nasdaq: CVLT] today announced its financial results for the fiscal third quarter ended December 31, 2024.  "Once again, Commvault has delivered a record-breaking quarter with accelerating revenue growth," said Sanjay Mirchandani, President and CEO, Commvault. "Our innovative approach to cyber resilience continues to win large net-new accounts and fuel our expansion business. As we look to the future, we believe our unified platform which enables c ...

The upcoming report from Commvault Systems (CVLT) is expected to reveal quarterly earnings of $0.87 per share, indicating an increase of 11.5% compared to the year-ago period. Analysts forecast revenues of $245.53 million, representing an increase of 13.2% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Befo ...

Stock Performance - Commvault Systems closed at $162 80, down 0 74% from the previous session, underperforming the S&P 500's gain of 0 61%, the Dow's 0 3% rise, and the Nasdaq's 1 28% increase [1] - Over the past month, the company's shares gained 3 99%, outperforming the Computer and Technology sector's 1 24% gain and the S&P 500's 2 08% gain [1] Earnings and Revenue Projections - The company is expected to report earnings of $0 87 per share on January 28, 2025, representing a year-over-year growth of 11 54% [2] - Revenue for the upcoming quarter is projected at $245 53 million, a 13 24% increase compared to the year-ago quarter [2] - For the entire year, earnings are forecasted at $3 43 per share, up 15 1%, and revenue at $954 7 million, up 13 76% year-over-year [3] Analyst Estimates and Valuation - Recent changes in analyst estimates reflect shifting near-term business trends, with positive revisions indicating confidence in the company's performance [4] - The Zacks Consensus EPS estimate has decreased by 0 51% over the past month, and the company currently holds a Zacks Rank of 4 (Sell) [6] - Commvault Systems has a Forward P/E ratio of 47 84, significantly higher than the industry average of 31 23 [7] Industry Context - The Computer - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 158, placing it in the bottom 38% of all industries [7] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [8]

The market expects Commvault Systems (CVLT) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Commvault Systems (CVLT) .Commvault currently has an average brokerage rec ...

Commvault Systems (CVLT) ended the recent trading session at $161.42, demonstrating a +0.6% swing from the preceding day's closing price. This change lagged the S&P 500's 1.83% gain on the day. Meanwhile, the Dow experienced a rise of 1.65%, and the technology-dominated Nasdaq saw an increase of 2.45%.The data-management software company's stock has dropped by 3.59% in the past month, exceeding the Computer and Technology sector's loss of 3.84% and lagging the S&P 500's loss of 3.31%.Market participants wil ...

Leverages the same platform that already delivers comprehensive protection of critical workloads – ushering in a new level of cyber resilience for customers and partners TINTON FALLS, N.J., Jan. 14, 2025 /PRNewswire/ -- Commvault, a leading provider of cyber resilience and data protection solutions for the hybrid cloud, today introduced an expansion of its platform to provide full and automated forest recovery for the world's most widely used enterprise identity and access solution, Microsoft Active Direct ...