Commvault(CVLT) - 2025 Q3 - Quarterly Report

Revenue Growth - Total revenues increased by $45.8 million, or 21$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$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$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$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].