Revenue Growth - Total revenues increased by $45.8 million, or 21% year over year, primarily driven by increases in subscription and perpetual license revenues [126]. - Subscription revenue rose by $44.1 million, or 39% year over year, with an 82% increase in SaaS revenue; subscription revenue accounted for 60% of total revenues for the three months ended December 31, 2024 [126]. - Perpetual license revenue increased by $1.5 million, or 10% year over year, accounting for 6% of total revenues for the three months ended December 31, 2024 [126]. - Total revenues increased by $104.6 million, or 17% year over year, primarily driven by a 35% increase in subscription revenue [140]. - Subscription revenue accounted for 58% of total revenues for the nine months ended December 31, 2024, compared to 50% for the same period in 2023 [140]. - International total revenues increased by 30%, 20%, and 2% in subscription, perpetual license, and customer support revenues, respectively [129]. - Sales outside the United States accounted for 47% of total revenues for both the nine months ended December 31, 2024 and 2023 [117]. - Approximately 47% of the company's sales were outside the United States for the nine months ended December 31, 2024 [161]. Cost and Expenses - Total cost of revenues increased by $9.6 million, representing 19% of total revenues for the three months ended December 31, 2024, compared to 18% for the same period in 2023 [131]. - Cost of subscription revenue increased by $10.1 million, representing 16% of total subscription revenue for the three months ended December 31, 2024, compared to 14% in the prior year [131]. - Research and development expenses increased by $9.9 million, or 10%, due to additional headcount from the Appranix and Clumio acquisitions [145]. - Sales and marketing expenses rose by $53.4 million, or 21%, primarily due to increased employee compensation and sales commissions [145]. - Restructuring expenses totaled $9.2 million for the nine months ended December 31, 2024, related to severance and headcount reductions [145]. Cash Flow and Financial Position - Cash and cash equivalents balance was $243.6 million as of December 31, 2024, with approximately $179.4 million held outside the United States [150]. - Working capital decreased by $45.2 million from $110.2 million as of March 31, 2024, to $65.0 million as of December 31, 2024 [156]. - The company repurchased $135.2 million of its common stock for the nine months ended December 31, 2024, with $121.3 million remaining under the current authorization [152]. - The company believes that existing cash, cash equivalents, and cash from operations will be sufficient to meet anticipated cash needs for at least the next twelve months [157]. - Net cash provided by operating activities was impacted by net income adjusted for non-cash charges and an increase in deferred revenue, partially offset by an increase in accounts receivable [160]. - Net cash used in investing activities included $65.9 million for the acquisitions of Appranix and Clumio, $3.0 million of capital expenditures, and $0.8 million for the purchase of equity securities [160]. - Net cash used in financing activities resulted from $135.2 million of common share repurchases, partially offset by $11.1 million from the exercise of stock options and the Employee Stock Purchase Plan [160]. Tax and Interest - Interest income increased from $3.5 million in the nine months ended December 31, 2023, to $5.1 million in the same period of 2024 [147]. - Income tax expense decreased to $7.3 million in the nine months ended December 31, 2024, from $17.8 million in the prior year [148]. Foreign Currency and Financing - The company recognized net foreign currency transaction gains of approximately $0.3 million for the three months ended December 31, 2024, and net losses of approximately $1.6 million for the three months ended December 31, 2023 [163]. - Changes in currency exchange rates could adversely affect reported revenues and require price reductions to remain competitive in foreign markets [161]. - The company has not maintained excess cash balances in foreign accounts, which may impact its foreign currency transaction exposure [162]. - The company may seek additional funding through public or private financings or other arrangements during the next twelve months [157]. - The company does not have off-balance sheet financing arrangements as of December 31, 2024 [158].

Commvault Fiscal Q3'25 Earnings Presentation GAAP to Non-GAAP Presentation In addition to financial information prepared in accordance with U.S. GAAP, this presentation also contains adjusted financial measures that we believe provide investors and management with supplemental information relating to operating performance and trends that facilitate comparisons between periods and with respect to projected information. These adjusted financial measures are non-GAAP and should be considered in addition to, bu ...

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]

Investor Relations Contact: Michael J. Melnyk, CFA 732-870-4581 mmelnyk@commvault.com Commvault Announces Fiscal 2025 Third Quarter Financial Results Tinton Falls, N.J. – January 28, 2025 – 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 continu ...

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 ...