Company Performance - Commvault Systems (CVLT) has gained approximately 24% year-to-date, significantly outperforming the average gain of 0.2% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for CVLT's full-year earnings has increased by 7.6% over the past 90 days, indicating improved analyst sentiment and earnings outlook [3] - Commvault Systems is currently ranked 2 (Buy) in the Zacks Rank system, suggesting a favorable position for potential investors [3] Industry Comparison - Commvault Systems belongs to the Computer - Software industry, which consists of 30 individual stocks and is currently ranked 49 in the Zacks Industry Rank [5] - The average gain for stocks in the Computer - Software industry this year is 8.2%, indicating that CVLT is performing better than its peers in this specific industry [5] - In contrast, Credo Technology Group Holding Ltd. (CRDO), another stock in the Computer and Technology sector, has a year-to-date return of 8.6% and is ranked 1 (Strong Buy) in the Zacks Rank [4][5] Sector Overview - The Computer and Technology sector includes 608 individual stocks and is currently ranked 5 in the Zacks Sector Rank [2] - The sector's performance is evaluated based on the average Zacks Rank of individual stocks, which is derived from earnings estimates and revisions [2][3] - Investors are encouraged to monitor both Commvault Systems and Credo Technology Group Holding Ltd. for their potential to maintain solid performance in the sector [6]

Company Performance - Commvault Systems closed at $182.01, reflecting a -0.67% change from the previous session, underperforming the S&P 500 which gained 0.01% [1] - The stock has increased by 6.39% over the past month, lagging behind the Computer and Technology sector's 7.95% gain and outperforming the S&P 500's 5.2% increase [1] Upcoming Earnings - The company is expected to report an EPS of $0.97, representing a 14.12% growth year-over-year [2] - Revenue is forecasted to be $268.63 million, indicating a 19.57% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $4.11 per share, reflecting a +12.6% change from the previous year [3] - Revenue is estimated at $1.13 billion, indicating a +13.97% growth year-over-year [3] Analyst Sentiment - Recent changes in analyst estimates suggest a positive outlook for Commvault Systems, indicating optimism about the company's business and profitability [3][4] - The Zacks Rank system currently rates Commvault Systems as 2 (Buy), with a Forward P/E ratio of 44.61, which is a premium compared to the industry average of 26.02 [5] Industry Context - The Computer - Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 52, placing it in the top 22% of over 250 industries [6] - The top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1 [6]

Commvault Earnings Call Summary Company Overview - **Company**: Commvault - **Industry**: Cyber Resilience, Data Protection, and Security Key Points and Arguments Cyber Resilience Market - Commvault is positioned as a leading player in the cyber resilience space, which combines data protection and data security [5][6] - Cyber resilience is a top priority for CIOs and CSOs, with multiple surveys indicating it as a key focus for businesses [6] Product Offerings - Commvault supports over 40 workloads, including SaaS applications, AI data, and on-premise solutions, emphasizing the importance of breadth and depth in workloads for effective cyber resilience [7][8] - The company provides security components that help customers identify critical assets and test their cyber resiliency [9][10] Competitive Advantages - Commvault offers ultimate choice and flexibility in how customers consume their products, whether through software, SaaS, or appliances [11] - The company emphasizes a single pane of glass for managing data across multiple environments, which enhances recovery speed and efficiency [12][13] Market Size and Growth - The total addressable market (TAM) for Commvault is estimated at $24 billion, split evenly between core data backup and recovery and data security/cloud security [14][17] - The core backup and recovery market is valued at $12 billion, with $9 billion on-premise and $3 billion in the cloud, projected to grow to $4 billion by FY27 [15][16] - The data security and cloud security segment is also estimated at $12 billion, with expected growth in the high teens [18] Financial Performance - Subscription revenue grew 45% year-over-year, with the SaaS platform reaching $281 million, marking a 68% growth year-over-year [19][20] - The SaaS net dollar retention rate is at 127%, driven by 70% upsell and 30% cross-sell opportunities [20] - Commvault has maintained a profit margin of over 20% EBIT in recent years, with a margin of 21.5% last year [21] Strategic Focus - The company is focused on cross-selling its products, with 70% of SaaS customers using only one product out of nearly 15 offerings [20][49] - Commvault is investing in go-to-market strategies, including increasing sales capacity and enhancing partner enablement [82] Market Dynamics - The competitive landscape includes legacy players that dominate the on-premise market but are losing share due to a lack of hybrid support [26][32] - Commvault's strategy includes addressing the needs of both cloud and hybrid enterprises, which is crucial for cyber resilience [27][28] Future Outlook - The overall market is expected to grow at 12% for the foreseeable future, with Commvault positioned to capture market share [18][68] - The company anticipates sustaining low to mid-teen growth rates over the next few years [68] Perception and Brand Awareness - There is a perception shift occurring, with Commvault moving away from its legacy image to being recognized as a cloud-first company [87][88] - The company is actively working on improving brand awareness and positioning itself as a leader in the cyber resilience space [82][87] Additional Important Insights - Commvault's recent acquisitions aim to expand its portfolio and enhance its market position [85][86] - The company is focused on ensuring that its security features complement existing perimeter security, providing a second layer of defense [52] This summary encapsulates the key insights from Commvault's earnings call, highlighting the company's strategic positioning, market dynamics, financial performance, and future growth prospects.

Core Viewpoint - Commvault Systems (CVLT) is showing potential for investment due to its recent technical indicators and positive earnings revisions [1][4]. Technical Analysis - CVLT has crossed above the 20-day moving average, indicating a short-term bullish trend [1][2]. - The stock has moved 5.9% higher over the last four weeks, suggesting momentum towards a potential rally [4]. Earnings Estimates - There have been three upward revisions for CVLT's earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [4]. - The consensus earnings estimate has also increased, further strengthening the bullish outlook for the company [4]. Investment Consideration - Given the positive technical indicators and earnings estimate revisions, CVLT is recommended for investors' watchlists [5].

Company Overview - Commvault (NASDAQ: CVLT) is recognized as the gold standard in cyber resilience, serving over 100,000 organizations to ensure data safety and business continuity [2] - The company provides a unique cyber resilience platform that integrates top-tier data security and rapid recovery capabilities at an enterprise scale, applicable across any workload and location, while maintaining the lowest total cost of ownership (TCO) [2] Upcoming Events - Jen DiRico, Chief Financial Officer of Commvault, is scheduled to present at the William Blair Growth Stock Conference on June 4 at 11:00 a.m. EST, with live webcast access available for investors [1]

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Commvault Systems Overview - Commvault Systems (CVLT) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for outperformance [11] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable [4] - Commvault's historical EPS growth rate is 32.1%, with projected EPS growth of 12.5% this year, surpassing the industry average of 11.9% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Commvault's year-over-year cash flow growth is 45.4%, significantly higher than the industry average of 9.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.8%, compared to the industry average of 10.3% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for Commvault have increased by 9.1% over the past month, indicating a favorable outlook [9] Group 5: Conclusion - Commvault has achieved a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for growth investors [11]

Core Viewpoint - Commvault Systems (CVLT) is identified as a promising momentum stock, currently holding a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating potential for near-term price appreciation [3][4][12]. Company Performance - Over the past week, CVLT shares have increased by 4.36%, outperforming the Zacks Computer - Software industry, which rose by 3.59% during the same period [6]. - In a longer timeframe, CVLT's monthly price change is 18.9%, compared to the industry's 14.13% [6]. - Over the last quarter, CVLT shares have risen by 4.36%, and they have experienced a significant increase of 60.05% over the past year, while the S&P 500 has moved -2.26% and 13.85%, respectively [7]. Trading Volume - The average 20-day trading volume for CVLT is 510,605 shares, which serves as a useful indicator of market interest and price movement [8]. Earnings Outlook - In the past two months, three earnings estimates for CVLT have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $4.05 to $4.11 [10]. - For the next fiscal year, two estimates have moved upwards, while one has been revised downwards [10].

Core Insights - Commvault is enhancing its cyber resilience solutions by extending Kubernetes protection to virtual machines on Red Hat OpenShift Virtualization, addressing the growing need for integrated data protection in hybrid cloud environments [1][3][4] Industry Trends - Containerized workload adoption is rapidly increasing, with Gartner predicting that 90% of G2000 companies will utilize container management tools by 2027, and the Containers as a Service (CaaS) market expected to reach nearly $44 billion by 2034 [2] - The surge in container usage necessitates a unified cyber resilience strategy to mitigate risks associated with ransomware and other disruptions while managing complex data protection across hybrid environments [2] Company Developments - Commvault's new capabilities allow customers to automatically discover, protect, and recover VMs alongside containerized workloads through the Commvault Cloud platform, which is particularly beneficial for DevOps, SRE, and IT leaders [3][4] - The collaboration with Red Hat aims to provide enterprise-grade data protection for workloads on Red Hat OpenShift Virtualization, enhancing user confidence in running and scaling virtualized applications [4] Product Features - Commvault offers air-gapped and immutable backups with advanced recovery options for VMs on Red Hat OpenShift Virtualization, improving business continuity against ransomware threats [8] - Customers can restore VMs both in-place and out-of-place, including configurations, which accelerates deployment and minimizes downtime [8] - The unified protection for hybrid workloads allows customers to manage both traditional and cloud-native workloads through a single platform, reducing operational complexity and costs [8] Availability - Commvault support for Red Hat OpenShift Virtualization will be available for early adopters in early summer and is expected to be generally available by early fall, with pricing aligned to existing Commvault Kubernetes protection models [5]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Commvault provides cyber resiliency solutions for data protection and recovery across on-premises, hybrid, and multi-cloud environments, leveraging strategic partnerships and facing intense market competition [Company Overview](index=5&type=section&id=Company%20Overview) Commvault's core business provides cyber resiliency by protecting and recovering data and cloud-native applications across various deployment models and environments - Commvault's core business is providing customers with cyber resiliency by protecting and recovering their data and cloud-native applications from threats like ransomware[16](index=16&type=chunk) - Offerings are delivered through multiple models: self-managed software, software-as-a-service (SaaS), integrated appliances, or managed by partners, catering to on-premises, hybrid, and multi-cloud environments[16](index=16&type=chunk) [Products](index=5&type=section&id=Products) Commvault Cloud is the main product, organized into three packages: Operational Recovery, Autonomous Recovery, and Cyber Recovery, with specialized offerings like Cleanroom Recovery and HyperScale X - The main product portfolio, Commvault Cloud, is organized into three packages: Operational Recovery (core backup and recovery), Autonomous Recovery (adds automation for disaster recovery), and Cyber Recovery (most comprehensive, adding threat scanning and clean data recovery)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - Specialized offerings include Cleanroom Recovery (isolated cloud recovery environment), HyperScale X (scale-out integrated appliance), Air Gap Protect (secure cloud storage), and Clumio Backtrack (rapid data reversion in Amazon S3)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[29](index=29&type=chunk) [Professional & Customer Support Services](index=6&type=section&id=Professional%20%26%20Customer%20Support%20Services) The company offers 24/7 global support, leveraging AI, and provides extensive services including technical consulting, recovery, education, and managed services - The company offers a wide range of services including 24/7 global real-time support, leveraging an AI-powered assistant named Arlie for faster resolutions[30](index=30&type=chunk) - Service offerings are extensive, covering technical consulting, recovery services, education and certifications, and managed services for data protection and cyber resilience[36](index=36&type=chunk) [Strategic Relationships](index=7&type=section&id=Strategic%20Relationships) Commvault's strategy heavily relies on partnerships with technology leaders, distributors, resellers, OEMs, service providers, cloud hyperscalers, and cybersecurity firms, with Arrow being a key distribution channel - Commvault's strategy heavily relies on partnerships with technology leaders, distributors, resellers, OEMs, service providers, cloud hyperscalers (AWS, Google, Microsoft, Oracle), and cybersecurity firms[33](index=33&type=chunk)[34](index=34&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - A non-exclusive distribution agreement with Arrow Enterprise Computing Solutions is a key channel, accounting for approximately **35% of total revenues in fiscal 2025** and **36% in fiscal 2024**[37](index=37&type=chunk) [Competition](index=8&type=section&id=Competition) The data protection and cyber resilience market is intensely competitive and highly fragmented, with primary competitors including Cohesity, Druva, Rubrik, and Veeam - The data protection and cyber resilience market is intensely competitive and highly fragmented[41](index=41&type=chunk) - Primary competitors include Cohesity, Druva, Rubrik, and Veeam. Some competitors have greater financial resources, name recognition, and larger installed customer bases[42](index=42&type=chunk)[43](index=43&type=chunk) [Technology, Intellectual Property and Proprietary Rights](index=9&type=section&id=Technology%2C%20Intellectual%20Property%20and%20Proprietary%20Rights) The company protects its intellectual property through trade secrets, patents, copyrights, and contracts, holding over 1,500 issued patents and 200 worldwide trademark registrations - The company relies on a combination of trade secrets, patents, copyrights, and contractual provisions to protect its intellectual property[47](index=47&type=chunk) - Commvault holds a robust portfolio of over **1,500 issued patents** and over **200 worldwide trademark registrations and applications**, covering areas like cyber resilience, data protection, and SaaS solutions[48](index=48&type=chunk) [People](index=9&type=section&id=People) As of March 31, 2025, Commvault had approximately 3,300 employees worldwide, with 37% in the United States and 63% internationally - As of March 31, 2025, Commvault had approximately **3,300 employees worldwide**[52](index=52&type=chunk) - The workforce is globally distributed, with **37% in the United States** and **63% located internationally**[52](index=52&type=chunk) [Information about our Executive Officers](index=10&type=section&id=Information%20about%20our%20Executive%20Officers) This section provides a table listing the company's executive officers as of May 2, 2025, including their names, ages, and positions Executive Officers as of May 2, 2025 | Name | Age | Position | | :--- | :--- | :--- | | Sanjay Mirchandani | 60 | President and Chief Executive Officer | | Jennifer DiRico | 40 | Chief Financial Officer | | Gary Merrill | 50 | Chief Commercial Officer | [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) Commvault faces significant risks from intense industry competition, a heavy reliance on indirect sales channels like Arrow (35% of revenue), and global economic volatility. Key technological risks include potential system failures, cybersecurity incidents, and the challenges of interoperating with third-party systems. The company specifically disclosed a recent security incident involving a suspected nation-state actor in its Azure environment. Other material risks include challenges in its India operations (where 39% of its workforce resides), evolving data privacy regulations (GDPR, CCPA), potential impairment of its substantial goodwill balance, and the financial impact of changes in tax laws [Risks Related to Our Business and Industry](index=12&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) The cyber resiliency market is intensely competitive, with significant reliance on indirect sales channels and renewals, and the company recently completed a restructuring plan - The cyber resiliency market is intensely competitive and highly fragmented, with competitors that may have greater financial, technical, and sales resources[63](index=63&type=chunk)[64](index=64&type=chunk) - Significant reliance on indirect sales channels, particularly the distributor Arrow, which accounted for approximately **35% of total revenues in fiscal 2025**. Disruption to this relationship could materially harm business[68](index=68&type=chunk)[70](index=70&type=chunk) - A significant portion of revenue comes from renewals of support and subscription agreements. Failure to renew these agreements on favorable terms could adversely impact financial performance[73](index=73&type=chunk)[74](index=74&type=chunk) - The company completed a restructuring plan in fiscal 2025, which carries risks such as unexpected costs, adverse effects on employee morale, and failure to meet operational targets[95](index=95&type=chunk) [Risks Related to our International Operations](index=18&type=section&id=Risks%20Related%20to%20our%20International%20Operations) International sales, accounting for 46% of revenues, expose the company to foreign currency and geopolitical risks, with India operations posing specific challenges due to workforce concentration - International sales accounted for **46% of revenues in fiscal 2025**, exposing the company to risks from differing legal, political, and economic conditions, as well as foreign currency fluctuations[111](index=111&type=chunk)[112](index=112&type=chunk) - Operations in India are a key success factor but also a significant risk, with approximately **39% of employees located there**. Risks include rising wage costs, intense competition for talent, and potential civil unrest or political instability[106](index=106&type=chunk) [Risks Related to Technology and Security](index=20&type=section&id=Risks%20Related%20to%20Technology%20and%20Security) The company faces risks from IT system failures, cybersecurity incidents, including a suspected nation-state attack in its Azure environment, and reliance on third-party technology - The company is subject to IT system failures, network disruptions, and cybersecurity incidents. In February and April 2025, Microsoft notified the company of unauthorized activity within its Azure environment by a suspected nation-state threat actor[114](index=114&type=chunk)[117](index=117&type=chunk) - Cybercriminals are leveraging AI to develop more sophisticated attacks, increasing the challenge of detection and prevention[115](index=115&type=chunk) - The company relies on third-party technology and infrastructure, such as Microsoft Azure. Any errors, disruptions, or failures in these third-party services could adversely affect Commvault's business and brand[122](index=122&type=chunk)[123](index=123&type=chunk) [Risks Related to Financial, Accounting, Regulatory, Tax, and Other Legal Matters](index=22&type=section&id=Risks%20Related%20to%20Financial%2C%20Accounting%2C%20Regulatory%2C%20Tax%2C%20and%20Other%20Legal%20Matters) The company is subject to global data privacy laws, potential changes in tax laws, and risks related to the impairment of its significant goodwill balance and corporate headquarters property - The company is subject to numerous global data privacy and protection laws (e.g., CCPA, GDPR), and failure to comply could result in costly legal action and reputational damage[127](index=127&type=chunk)[128](index=128&type=chunk) - Changes in tax laws, such as the OECD's BEPS 2.0 project, could materially affect the company's financial position and increase its worldwide effective tax rate[131](index=131&type=chunk) - Goodwill represents a significant portion of assets (**$185.3 million**, or **17% of total assets as of March 31, 2025**), and any future impairment could negatively impact results of operations[136](index=136&type=chunk) - An impairment charge of **$2.9 million** was recorded in fiscal 2025 related to the company's corporate headquarters, which is classified as held for sale. Additional charges may be required if the fair value declines further[137](index=137&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[151](index=151&type=chunk) [Cybersecurity](index=27&type=section&id=Item%201C.%20Cybersecurity) Commvault maintains a cybersecurity program based on the NIST framework, overseen by a Chief Security Officer (CSO). The program, which is integrated into the company's enterprise risk management, includes policies and plans for incident response, disaster recovery, and business continuity. The Board's Audit Committee provides governance oversight with quarterly briefings. The company disclosed a recent security incident involving a suspected nation-state actor but stated it is not aware of any material impact to its business or financial condition to date [Risk Management and Strategy](index=27&type=section&id=Risk%20Management%20and%20Strategy) The company's cybersecurity program, led by the CSO, leverages the NIST framework and includes comprehensive incident response, disaster recovery, and business continuity plans - The cybersecurity program is led by the Chief Security Officer (CSO) and leverages the National Institute of Standards and Technology (NIST) Cybersecurity Framework[152](index=152&type=chunk) - The company maintains a Security Incident Response Plan (SIRP), Crisis Management Plan, Disaster Recovery Plan, and Business Continuity Plan, and partners with third-party experts for monitoring and penetration testing[152](index=152&type=chunk) - In February and April 2025, Microsoft notified the company of unauthorized activity in its Azure environment by a suspected nation-state actor. The company activated its incident response plan and implemented enhanced security measures[154](index=154&type=chunk) [Governance](index=27&type=section&id=Governance) The Board of Directors oversees cybersecurity risks as part of enterprise risk management, with the Audit Committee receiving quarterly briefings from the CSO - The Board of Directors provides oversight of cybersecurity risks as part of its enterprise risk management strategy[155](index=155&type=chunk) - The Audit Committee of the Board receives quarterly briefings on the cybersecurity program from the CSO[155](index=155&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company's principal facility is its owned corporate headquarters in Tinton Falls, New Jersey. A purchase and sale agreement for this property was signed in October 2024, with the sale expected to be completed in the first quarter of fiscal 2026. Upon closing, Commvault will lease back a portion of the premises. The company also maintains numerous other offices in the U.S. and internationally - The company signed a purchase and sale agreement in October 2024 to sell its corporate headquarters in Tinton Falls, New Jersey. The sale is expected to close in Q1 of fiscal 2026, after which the company will lease back a portion of the property[158](index=158&type=chunk) - Commvault has additional offices across the United States and in numerous countries throughout Europe, Asia, Africa, and the Americas[159](index=159&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company states that it is not currently party to any pending legal action that is reasonably expected to have a material adverse effect on its business or operating results - The company is not currently party to any pending legal action expected to have a material adverse effect on its business[160](index=160&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[161](index=161&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Commvault's common stock is traded on The Nasdaq Stock Market under the symbol "CVLT". The company has never paid cash dividends and intends to retain future earnings for business growth. It maintains an active share repurchase program, having repurchased $29.8 million of its common stock in the fourth quarter of fiscal 2025. In April 2025, the Board of Directors increased the total available authorization for the repurchase program to $250.0 million - The company's common stock is listed on The Nasdaq Stock Market under the symbol "CVLT"[163](index=163&type=chunk) - Commvault has never paid cash dividends and does not anticipate paying any in the foreseeable future, intending to retain earnings to fund business growth[165](index=165&type=chunk) Share Repurchases for Q4 FY2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 62,963 | $157.92 | | Feb 2025 | 53,923 | $174.65 | | Mar 2025 | 65,250 | $160.32 | | **Total Q4** | **182,136** | **$163.73** | - As of March 31, 2025, **$91.5 million** remained available under the share repurchase program. On April 17, 2025, the Board increased the authorization so that **$250.0 million** was available[166](index=166&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2025, total revenues grew 19% to $995.6 million, primarily driven by a 37% increase in subscription revenue, which now constitutes 59% of total revenue. This growth was fueled by a 74% increase in SaaS revenue. Operating income was $73.7 million, and net income was $76.1 million. The company's liquidity remains strong, with $302.1 million in cash and cash equivalents, primarily sourced from operations. Significant capital allocation activities during the year included two acquisitions (Appranix and Clumio) for $65.3 million and the repurchase of $165.0 million of common stock. Subsequent to year-end, the company refinanced and increased its revolving credit facility to $300 million [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Total revenues increased by 19% in fiscal 2025, driven by significant growth in subscription and SaaS revenues, while operating expenses also rose due to increased sales and marketing, R&D, and restructuring charges Fiscal 2025 vs. Fiscal 2024 Revenue Performance | Revenue Type | FY 2025 ($M) | FY 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Subscription | $589.7 | $429.2 | 37% | | Perpetual license | $55.6 | $57.6 | -3% | | Customer support | $307.6 | $307.8 | 0% | | Other services | $42.7 | $44.7 | -4% | | **Total revenues** | **$995.6** | **$839.2** | **19%** | - Subscription revenue growth was driven by a **74% increase in SaaS revenue** and a **22% increase in term-based license revenue**[204](index=204&type=chunk) - Sales and marketing expenses increased **22% to $434.1 million** due to higher sales commissions, strategic go-to-market investments, and increased stock-based compensation[212](index=212&type=chunk) - Research and development expenses rose **11% to $146.3 million**, primarily due to additional headcount from the Appranix and Clumio acquisitions[212](index=212&type=chunk) - Restructuring charges of **$10.0 million** were recorded in fiscal 2025 related to a plan initiated in fiscal 2024 to reorganize customer success functions[212](index=212&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $302.1 million in cash, primarily from operations, and actively manages capital through share repurchases and a recently refinanced credit facility Summarized Cash Flow Information (in millions) | | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $207.4 | $203.8 | | Net cash used in investing activities | ($70.4) | ($5.5) | | Net cash used in financing activities | ($147.8) | ($170.6) | - As of March 31, 2025, cash and cash equivalents were **$302.1 million**, with approximately **$265.4 million** held outside the United States[215](index=215&type=chunk) - During fiscal 2025, the company repurchased **$165.0 million** of common stock (approx. **1.2 million shares**)[218](index=218&type=chunk) - On April 15, 2025, the company refinanced its credit facility, increasing its total borrowing capacity from **$100 million to $300 million**[217](index=217&type=chunk)[400](index=400&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency risk, as international sales accounted for 46% of total revenue in fiscal 2025. The main exposures are to the Euro, Australian dollar, British pound, and other currencies. The company estimates that a hypothetical 10% adverse change in all foreign exchange rates would impact its annual operating profit by approximately $15.5 million. The company does not report any significant interest rate risk - The company reports no significant interest rate risk[228](index=228&type=chunk) - The primary market risk is foreign currency exposure, with **46% of sales in fiscal 2025** generated outside the United States[229](index=229&type=chunk) - A hypothetical **10% adverse change** in all foreign exchange rates is estimated to impact annual operating profit by approximately **$15.5 million**[230](index=230&type=chunk) [Financial Statements and Supplementary Data](index=44&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for the fiscal years ended March 31, 2025, 2024, and 2023. It includes the independent auditor's report from Ernst & Young LLP, which provides an unqualified opinion. Key financial statements—Consolidated Balance Sheets, Statements of Operations, and Statements of Cash Flows—are detailed, along with comprehensive notes covering significant accounting policies, business combinations, revenue recognition, and other material financial information Consolidated Statements of Operations Summary (in thousands) | | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Total revenues | $995,619 | $839,247 | $784,590 | | Gross margin | $816,584 | $687,637 | $649,188 | | Income (loss) from operations | $73,738 | $75,355 | ($15,885) | | Net income (loss) | $76,106 | $168,906 | ($35,774) | | Diluted EPS | $1.68 | $3.75 | ($0.80) | Consolidated Balance Sheets Summary (in thousands) | | Mar 31, 2025 | Mar 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $302,103 | $312,754 | | Total current assets | $635,057 | $595,126 | | Total assets | $1,118,266 | $943,913 | | Total current liabilities | $555,050 | $484,928 | | Total liabilities | $793,144 | $665,828 | | Total stockholders' equity | $325,122 | $278,085 | Consolidated Statements of Cash Flows Summary (in thousands) | | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $207,382 | $203,798 | $170,288 | | Net cash used in investing activities | ($70,400) | ($5,521) | ($5,286) | | Net cash used in financing activities | ($147,818) | ($170,581) | ($135,579) | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=77&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None[401](index=401&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2025, and concluded they were effective. Similarly, management's assessment of internal control over financial reporting, based on the 2013 COSO framework, found it to be effective. The company's independent registered public accounting firm, Ernst & Young LLP, has also issued an unqualified audit report on the effectiveness of the internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[402](index=402&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of March 31, 2025[406](index=406&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of fiscal 2025 that materially affected, or are reasonably likely to materially affect, internal controls[407](index=407&type=chunk) [Other Information](index=81&type=section&id=Item%209B.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading plans by two members of the Board of Directors, Vivie Lee and Allison Pickens, in February 2025 for the future sale of company stock. No other directors or officers adopted, modified, or terminated such plans during the fourth quarter of fiscal 2025 - In February 2025, board members Vivie Lee and Allison Pickens each adopted a Rule 10b5-1 trading arrangement for the sale of company common stock[417](index=417&type=chunk)[418](index=418&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=81&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[420](index=420&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=81&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders, which is expected to be filed within 120 days of the fiscal year-end - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[422](index=422&type=chunk) [Executive Compensation](index=81&type=section&id=Item%2011.%20Executive%20Compensation) Information required for this item is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[423](index=423&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=81&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required for this item is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[423](index=423&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=81&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required for this item is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[424](index=424&type=chunk) [Principal Accountant Fees and Services](index=82&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required for this item is incorporated by reference from the company's definitive Proxy Statement for its 2025 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[425](index=425&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=82&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, which are included in Item 8, and notes that all financial statement schedules are omitted as they are not required or the information is included elsewhere. It also provides a list of exhibits filed with or incorporated by reference into the Form 10-K - This section contains a list of all exhibits filed with the Form 10-K, including governance documents, material contracts, and certifications[428](index=428&type=chunk)[429](index=429&type=chunk) [Form 10-K Summary](index=85&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary - None[431](index=431&type=chunk)

Financial Performance - Commvault Systems reported quarterly earnings of $1.03 per share, exceeding the analyst consensus estimate of 93 cents per share [1] - The company achieved quarterly sales of $275.04 million, surpassing the analyst consensus estimate of $262.43 million [1] Growth Metrics - Commvault ended the year with over 12,000 subscription customers and reported a 45% increase in subscription revenue in Q4 [2] - The company provided FY2026 sales guidance of $1.130 billion to $1.140 billion, compared to estimates of $1.10 billion [2] Stock Performance and Analyst Ratings - Commvault shares fell 1.3% to trade at $166.52 following the earnings announcement [3] - Analysts have adjusted their price targets for Commvault, with RBC Capital raising it from $175 to $185, Wells Fargo from $180 to $190, and Oppenheimer from $180 to $200 [8]