Commvault(CVLT) - 2025 Q4 - Annual Results

Revenue Growth - Total revenues for Q4 2025 were $275 million, representing a 23% year-over-year increase[5] - Subscription revenue reached $173 million in Q4 2025, up 45% year-over-year[5] - Total annualized recurring revenue (ARR) grew to $930 million, a 21% increase year-over-year[5] - Full year total revenues were $996 million, reflecting a 19% year-over-year growth[5] - Full year subscription revenue was $590 million, up 37% year-over-year[5] - Total revenues for the fiscal year ended March 31, 2025, were $995.619 million, a significant increase from $839.247 million in the previous year, representing a growth of approximately 18.6%[24] - Subscription revenues for the fourth quarter were $173.228 million, up from $119.873 million in the same quarter last year, reflecting a growth of approximately 44.5%[24] Cash Flow and Financial Position - Operating cash flow for the full year was $207 million, with free cash flow of $204 million[5] - Cash flow from operations for the full fiscal year was $207 million, compared to $203.798 million in the previous year[29] - As of March 31, 2025, cash and cash equivalents were approximately $302 million[26] - The company repurchased approximately 1,215,000 shares for $165 million during the fiscal year[5] - During the fiscal year, Commvault repurchased $165 million worth of common stock, approximately 1,215,000 shares, at an average price of $135.77 per share[22] Operating Performance - Income from operations (EBIT) for the fourth quarter was $27 million, with an operating margin of 9.7%[22] - Operating expenses for the fiscal year increased to $742.846 million from $612.282 million, representing a rise of approximately 21.3%[24] - GAAP income from operations for Q1 2025 was $26,727 million, up from $18,190 million in Q1 2024, representing a 47% increase[31] - Non-GAAP income from operations for Q1 2025 was $59,097 million, compared to $45,216 million in Q1 2024, reflecting a 31% growth[31] Net Income - Non-GAAP net income for the fourth quarter was $46 million, or $1.03 per diluted share[22] - The company reported a GAAP net income of $76.106 million for the fiscal year, down from $168.906 million in the previous year[29] - GAAP net income for the year ended March 31, 2025, was $76,106 million, down from $168,906 million in the previous year, indicating a decline of 55%[31] - Non-GAAP net income for the year ended March 31, 2025, increased to $164,954 million from $134,364 million, marking a 23% rise[31] Future Projections - For Q1 2026, total revenues are expected to be between $266 million and $270 million[11] - Subscription revenue for Q1 2026 is projected to be between $166 million and $170 million[11] - Subscription ARR is expected to grow between 22% and 23% year-over-year for fiscal 2026[11] Tax and Compensation - The company reported a non-GAAP effective tax rate reduction from 27% to 24% starting in fiscal 2025[41] - The estimated non-GAAP effective tax rate for Commvault is adjusted to 24% for fiscal 2025, down from 27% for fiscal 2024[51] - Commvault believes that the 24% tax rate aligns more closely with its effective tax rate expectations over the next few years[51] - Total stock-based compensation expense for Q1 2025 was $28,840 million, up from $21,093 million in Q1 2024, reflecting a 37% increase[38] Acquisitions - Commvault incurred costs related to the acquisitions of Appranix, Inc. and Clumio, Inc. during fiscal 2025, including legal, accounting, and advisory services[51] Miscellaneous - Commvault's annualized recurring revenue (ARR) metric is designed to provide insights into the value of its recurring revenue streams[50] - The company does not provide forward-looking guidance on a GAAP basis due to the unavailability of certain financial information[50]