Commvault(CVLT) - 2025 Q3 - Quarterly Results

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]