Commvault(US:CVLT)2025-10-29 18:41Revenue Growth - Total Annualized Recurring Revenue (ARR) increased to $1,043.3 million, representing a 22% growth compared to $853.3 million in the previous year[130]. - Subscription ARR reached $893.7 million, showing a 30% increase from $687.1 million in the prior year[132]. - SaaS ARR grew to $335.7 million, reflecting a 56% increase from $214.8 million year-over-year[134]. - Total revenues for the three months ended September 30, 2025, were $276.2 million, an 18% increase from $233.3 million in the same period last year[145]. - Revenue from SaaS offerings increased by 61% to $80.0 million, up from $49.6 million year-over-year[145]. - Total revenues increased by $100.2 million, or 22% year over year, driven primarily by increases in term-based license revenue and SaaS revenue[157]. - SaaS revenue increased by $59.2 million, or 63% year over year, due to growth in SaaS ARR from new customer acquisitions and expansion of the existing customer base[157]. - Term-based license revenue increased by $37.1 million, or 23% year over year, primarily due to a 20% increase in transaction volume[157]. Revenue Sources - Revenue generated through indirect distribution channels accounted for approximately 90% of total revenues for the six months ended September 30, 2025[123]. - Partner A contributed approximately 32% of total revenues for the six months ended September 30, 2025[124]. - Sales outside the United States accounted for 45% of total revenues for the six months ended September 30, 2025[138]. - The Americas region represented 61% of total revenues, while the International region accounted for 39% for the three months ended September 30, 2025[146]. - The Americas region represented 61% of total revenues, while the International region represented 39% for the six months ended September 30, 2025[156]. Cost and Expenses - Total cost of revenues increased by $23.2 million, representing 19% of total revenues for the six months ended September 30, 2025, compared to 18% for the same period in 2024[161]. - Cost of SaaS revenue increased by $22.2 million, representing 36% of SaaS revenue for the six months ended September 30, 2025, compared to 35% for the same period in 2024[161]. - Research and development expenses increased by $6.0 million, or 18%, driven by additional headcount and related expenses[153]. - Sales and marketing expenses increased by $20.3 million, or 20%, primarily due to increased employee compensation and marketing initiatives[153]. - Perpetual license revenue decreased by $4.9 million, or 20% year over year, reflecting a shift from selling perpetual licenses to subscription arrangements[157]. - Sales and marketing expenses increased by $46.8 million, or 24%, driven by higher employee compensation and marketing initiatives[165]. - Research and development expenses rose by $13.0 million, or 19%, primarily due to increased employee compensation and headcount related to acquisitions[165]. - General and administrative expenses increased by $18.9 million, or 29%, with $14.4 million attributed to employee compensation and legal expenses related to a security matter[165]. Cash Flow and Capital - Net cash provided by operating activities was $108.5 million for the six months ended September 30, 2025, compared to $100.3 million for the same period in 2024[172]. - Working capital increased by $737.6 million, from $80.0 million as of March 31, 2025, to $817.6 million as of September 30, 2025[174]. - The company completed a private offering of senior, unsecured convertible notes with an aggregate principal amount of $900.0 million, netting approximately $878.6 million after costs[169]. - The company repurchased $146.1 million of its common stock in the six months ended September 30, 2025, with $117.7 million funded from the net proceeds of the convertible notes[171]. Foreign Currency and Risks - Approximately 45% of the company's sales were outside the United States for the six months ended September 30, 2025, exposing it to foreign currency risks[180]. - The company recognized net foreign currency transaction losses of approximately $2.1 million for the six months ended September 30, 2025[181]. Restructuring Plans - The company anticipates completing its restructuring plan by fiscal 2027, with restructuring expenses of $1.7 million recorded for the six months ended September 30, 2025[165].