Commvault(US:CVLT)2025-07-29 11:47Financial Performance - Total revenue reached $282 million, representing a 26% year-over-year growth[4] - Annualized Recurring Revenue (ARR) increased to $996 million, up 24% year-over-year[4] - Subscription revenue was $182 million, a 46% increase year-over-year, with SaaS revenue growing 66% to $72 million[4] - Non-GAAP EBIT was $58 million, resulting in an operating margin of 20.7%[4] - Total revenues for the three months ended June 30, 2025, were $281.978 million, a 25.5% increase from $224.672 million in the same period of 2024[23] - Total subscription revenues reached $181.727 million, up 46.4% from $124.080 million year-over-year[23] - Net income for the quarter was $23.496 million, representing a 26.5% increase compared to $18.527 million in the prior year[23] - Non-GAAP net income for the quarter was $45.634 million, an increase of 18.6% from $38.402 million in the same quarter of 2024[32] - Non-GAAP diluted earnings per share for the quarter were $1.01, compared to $0.85 in the same period last year, reflecting a 18.8% increase[32] - The company reported a gross margin of 82.0% for the quarter, slightly down from 82.3% in the previous year[33] - Deferred revenue increased to $664.870 million, up from $626.212 million in the previous quarter, indicating strong future revenue potential[27] Cash Flow and Expenses - Free cash flow is anticipated to be between $210 million and $215 million for FY 2026[9] - The company generated $31.681 million in cash from operating activities, a decrease from $44.692 million in the same quarter of 2024[30] - Commvault reported stock-based compensation expenses of $30.1 million for the three months ended June 30, 2025, compared to $22.4 million for the same period in 2024, reflecting a year-over-year increase of approximately 34%[39] - The cost of revenues related to stock-based compensation was $1.25 million in Q1 2025, down from $1.58 million in Q1 2024, indicating a decrease of about 21%[39] - Operating expenses increased to $206.110 million, a 23.8% rise from $166.456 million in the same quarter of 2024[23] Future Projections - The company expects total revenues for Q2 FY 2026 to be between $272 million and $274 million[9] - Subscription revenue for FY 2026 is projected to be between $753 million and $757 million, with an expected growth of 24% year-over-year[9] - The acquisition of Satori Cyber, Ltd. is expected to close in Q2 FY 2026, contributing to future growth[5] Recognition and Achievements - Commvault has been recognized as a Leader in the Gartner® Magic Quadrant™ for Backup and Data Protection Platforms for the 14th consecutive time[4] Legal and Compliance - The company incurred approximately $1.5 million in legal settlement costs during the first quarter of fiscal 2025, with $0.7 million recorded in general and administrative expenses[50] Non-GAAP Measures - Non-GAAP net income and diluted EPS incorporate a non-GAAP effective tax rate of 24%[41] - Commvault's annualized recurring revenue (ARR) includes all active contracts and is calculated by dividing the total contract value by the number of days in the contract term and multiplying by 365[49] - Commvault's non-GAAP free cash flow is defined as net cash provided by operating activities less purchases of property and equipment, which is considered a useful metric for evaluating cash generation[45] - The company has excluded certain costs related to acquisitions, such as those for Appranix, Inc. and Clumio, Inc., to help investors understand underlying operational trends[51] - Non-GAAP gross margin is defined as GAAP gross margin adjusted to exclude costs related to noncash stock-based compensation[44] - Commvault's management provides reconciliations of non-GAAP financial measures to GAAP measures to assist investors in understanding the financial results[40] - The company anticipates that its GAAP and cash tax rates will align over time, despite historical fluctuations[42] Cybersecurity Enhancements - Commvault announced enhancements to its post-quantum computing capabilities to protect sensitive data from new cyber threats[4]