Commvault(US:CVLT)2026-01-28 21:16Revenue Growth - Total Annualized Recurring Revenue (ARR) increased to $1,084.9 million, representing a 22% growth compared to $889.6 million in 2024[131] - Subscription ARR rose to $940.9 million, reflecting a 28% increase from $734.2 million in 2024[133] - SaaS ARR reached $363.7 million, showing a 40% growth compared to $259.0 million in 2024[135] - Total revenues for the three months ended December 31, 2025, were $313.8 million, a 19% increase from $262.6 million in 2024[146] - Subscription revenues, including term-based licenses and SaaS, totaled $206.3 million, up 30% from $158.3 million in 2024[146] - Total revenues increased by $151.4 million, or 21% year over year, driven primarily by increases in term-based license revenue and SaaS revenue[160] - Term-based license revenue increased by $58.4 million, or 22% year over year, due to a 23% increase in larger transactions[160] - SaaS revenue increased by $85.9 million, or 56% year over year, reflecting higher SaaS bookings from new customer acquisitions and existing customer base expansion[160] Revenue Sources - Revenue from the Americas accounted for 57% of total revenues, while the International region contributed 43%[147] - Revenue generated through indirect distribution channels constituted approximately 90% of total revenues for the nine months ended December 31, 2025[126] - Partner A contributed approximately 32% of total revenues for the nine months ended December 31, 2025[127] Customer Metrics - SaaS Net Dollar Retention Rate (SaaS NRR) was 121% for 2025, down from 127% in 2024[137] - Customer support revenue increased to $80.3 million, a 4% rise from $77.1 million in 2024[146] - Customer support revenue increased by $8.5 million, or 4% year over year, driven by a $23.6 million increase related to term-based license arrangements[160] Expenses - Total cost of revenues increased by $33.8 million, representing 19% of total revenues for the nine months ended December 31, 2025[162] - Cost of SaaS revenue increased by $30.5 million, representing 36% of SaaS revenue for the nine months ended December 31, 2025[162] - Sales and marketing expenses increased by $23.2 million, or 20%, primarily due to higher employee compensation and marketing initiatives[154] - Sales and marketing expenses increased by $70.1 million, or 22%, primarily due to a $38.3 million rise in employee compensation and related expenses[165] - Research and development expenses increased by $2.2 million, or 6%, reflecting a focus on software applications and hosted services development[154] - Research and development expenses rose by $15.2 million, or 14%, driven by a $10.0 million increase in employee compensation, including $3.8 million in stock-based compensation[165] - General and administrative expenses increased by $22.5 million, or 22%, with $9.2 million attributed to professional services and $3.9 million to employee compensation[165] Income and Cash Flow - Interest income rose to $8.4 million for the three months ended December 31, 2025, compared to $1.6 million for the same period in 2024, due to cash investments in money market funds[155] - Interest income for the nine months ended December 31, 2025, was $13.5 million, up from $5.1 million in the same period of 2024, primarily due to investments in money market funds[167] - Income tax expense increased to $13.0 million for the nine months ended December 31, 2025, compared to $7.3 million in the prior year, driven by higher pre-tax income projections[168] - Net cash provided by operating activities was $112.5 million for the nine months ended December 31, 2025, compared to $130.4 million in 2024[174] Capital and Stock Activity - Cash and cash equivalents totaled $1,026.3 million as of December 31, 2025, with approximately $274.3 million held outside the United States[169] - Working capital increased by $748.4 million from $80.0 million as of March 31, 2025, to $828.4 million as of December 31, 2025[177] - The company completed a private offering of senior, unsecured convertible notes with an aggregate principal amount of $900.0 million, netting approximately $878.4 million after costs[170] - The company repurchased $186.8 million of its common stock during the nine months ended December 31, 2025, with $117.7 million paid from the net proceeds of the convertible notes[173]