Revenue 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].

Core Insights - The article highlights the partnership between Lumen Technologies and Commvault aimed at enhancing data protection for enterprises in the face of increasing cyberattacks [1] Company Overview - Lumen Technologies integrates its secure global network infrastructure with Commvault's advanced cyber resilience platform [1] - This collaboration is designed to help enterprises safeguard critical information, reduce risks, and accelerate recovery in complex digital environments [1]

Core Points - The article discusses the importance of enabling Javascript and cookies in browsers to avoid access issues [1] - It highlights that ad-blockers may prevent users from proceeding to the desired content [1] Summary by Categories - **Technical Requirements** - Users are advised to enable Javascript and cookies in their browsers to ensure proper functionality [1] - The presence of ad-blockers can lead to access restrictions, necessitating their temporary disablement [1]

Core Insights - Commvault Systems, Inc. is a key player in the computer software industry, focusing on data protection and information management solutions, with a cloud-first, AI-enabled cyber resilience platform [1] Financial Performance - For the quarter ending October 28, 2025, Commvault reported an EPS of $0.32, missing the estimated $0.93, resulting in a negative surprise of 3.19% [2][6] - Revenue for the quarter was approximately $276.2 million, exceeding the estimated $273.3 million, marking an 18% increase from $233.28 million reported in the same period last year [3][6] - The company achieved over $1 billion in annualized recurring revenue (ARR) ahead of its March 2026 target, with operating cash flow of $77 million and free cash flow of $74 million [4][6] Valuation Metrics - Commvault's P/E ratio is approximately 78.80, with a price-to-sales ratio of about 5.78 and an enterprise value to sales ratio around 5.64, indicating high market expectations for future growth [5]

Commvault Systems, Inc. (CVLT) fell 14.72 percent to $148.51, down $25.64 during Tuesday trading, after reporting mixed second quarter results. The data protection and cloud backup company posted net income of $14.7 million, or $0.33 per share, compared with $15.6 million, or $0.35 per share, a year earlier. Commvault traded between $140.28 and $167.43 after opening at $160.59, compared with a previous close of $174.15 on the Nasdaq. Volume spiked to 1.79 million shares, nearly triple its average of 0.65 m ...

Core Insights - Commvault Systems reported $276.19 million in revenue for the quarter ended September 2025, marking an 18.4% year-over-year increase and a surprise of +0.99% over the Zacks Consensus Estimate of $273.48 million [1] - The company's EPS for the same period was $0.91, compared to $0.83 a year ago, although it fell short of the consensus EPS estimate of $0.94 by -3.19% [1] Revenue Breakdown - Annualized Recurring Revenue (ARR) reached $1,043.00 million, exceeding the average estimate of $1,029.91 million from three analysts [4] - Revenue from perpetual licenses was reported at $12.07 million, surpassing the average estimate of $7.65 million from four analysts, reflecting a +14.7% change year-over-year [4] - Revenue from other services was $11.22 million, slightly below the average estimate of $11.79 million, with a year-over-year change of +1.7% [4] - Customer support revenue was $80.23 million, exceeding the average estimate of $78.75 million, representing a +3.3% year-over-year increase [4] - Subscription revenue was reported at $172.67 million, which was below the average estimate of $175.32 million, but still showed a significant +28.8% year-over-year change [4] Stock Performance - Commvault's shares have returned -9.8% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Insights - Commvault Systems reported quarterly earnings of $0.91 per share, missing the Zacks Consensus Estimate of $0.94 per share, but showing an increase from $0.83 per share a year ago, resulting in an earnings surprise of -3.19% [1] - The company achieved revenues of $276.19 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.99% and increasing from $233.28 million year-over-year [2] - Commvault has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Earnings Outlook - The future performance of Commvault's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $298.8 million, and for the current fiscal year, it is $4.14 on revenues of $1.16 billion [7] Industry Context - The Computer - Software industry, to which Commvault belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Commvault's stock performance [5][6]

Financial Data and Key Metrics Changes - Commvault achieved a record $47 million in Net New ARR, with Subscription ARR rising 30% to $894 million and total revenue growing 18% to $276 million [4][14] - Total ARR grew 22%, surpassing $1 billion two quarters earlier than the original target [4][14] - SaaS ARR increased 56% to $336 million, exceeding the original target of $330 million [15] Business Line Data and Key Metrics Changes - Subscription ARR now constitutes 86% of total ARR, up from 81% a year ago [15] - Strong double-digit growth was observed in identity and resilience offerings, which represented nearly 40% of Net New ARR [16] - Active Directory usage tripled year-over-year, indicating strong demand for identity protection services [16] Market Data and Key Metrics Changes - Commvault moved and protects approximately eight exabytes of customer data in the cloud, reflecting a greater than 40% CAGR over the past five years [8] - The number of SaaS customers grew to nearly 9,000, representing a 40% increase year-over-year [9] Company Strategy and Development Direction - The company focuses on three key growth drivers: demand for the Commvault Cloud Cyber Resilience platform, the shift to the cloud, and innovation in product offerings [5][10] - Commvault aims to enhance its partner ecosystem and has announced a partnership with BeyondTrust to strengthen identity security [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong market demand and the ability to take market share, driven by innovation and customer support [22][23] - The company anticipates total ARR growth of 18%-19% year-over-year for fiscal 2026, with subscription ARR expected to increase by 24%-25% [21][22] Other Important Information - Commvault closed a private offering of $900 million in convertible senior notes, enhancing its capital flexibility [19] - The company repurchased $131 million of stock during the quarter, indicating a commitment to returning value to shareholders [19] Q&A Session Summary Question: Can you elaborate on the shift in term duration? - Management noted that customers are opting for shorter contract durations to maintain flexibility as they transition to the cloud, which has impacted average deal size [26] Question: How does Commvault view the competitive landscape? - Management believes that while the market is competitive, Commvault is gaining share, particularly in the SaaS segment, which is growing at 55% ARR [31][33] Question: Is the backup modernization cycle winding down? - Management disagreed, stating that the frequency and scale of cyber attacks continue to drive demand for modernization and resilience solutions [36] Question: What are the drivers of the term subscription business? - On-premise data growth remains a significant driver, alongside the increasing importance of identity and data security offerings [50][52] Question: Are you seeing increased cross-sell between term and SaaS customers? - Management confirmed that the percentage of SaaS customers also using term products is increasing, reflecting a growing trend towards hybrid solutions [54] Question: What is the outlook for capital allocation and share buybacks? - The company maintains a consistent capital allocation strategy, with a focus on share buybacks, M&A, and organic investments [83]

Financial Data and Key Metrics Changes - Commvault achieved a total revenue growth of 18% to $276 million, with subscription ARR increasing by 30% to $894 million [4][15] - Total ARR grew by 22% to exceed $1 billion, reaching this milestone two quarters earlier than the original target [4][14] - SaaS ARR rose 56% to $336 million, also surpassing the initial target two quarters ahead of schedule [15][20] Business Line Data and Key Metrics Changes - Subscription ARR now constitutes 86% of total ARR, up from 81% a year ago, indicating a strong shift towards subscription-based revenue [15] - Identity and data security-focused offerings contributed nearly 40% of net new ARR, showcasing strong momentum in this segment [7][16] - Active Directory usage tripled year over year, reflecting increased adoption of data and identity recovery solutions [16] Market Data and Key Metrics Changes - The number of SaaS customers grew to nearly 9,000, representing a 40% year-over-year increase [9] - Commvault moved and protects approximately eight exabytes of customer data in the cloud, with a CAGR of over 40% over the past five years [8] - Net dollar retention remained healthy at 125%, indicating strong customer loyalty and upsell opportunities [10] Company Strategy and Development Direction - Commvault's growth is driven by strong demand for its Cloud Cyber Resilience platform, the ongoing shift to the cloud, and a commitment to innovation [5][10] - The company is focusing on integrating identity security with data protection to enhance cyber resilience [38] - Recent acquisition of Satori Cyber aims to bolster capabilities in monitoring and protecting large language models and structured data [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued market demand, driven by the need for enhanced cyber resilience amid rising cyber threats [36][23] - The company anticipates a total ARR growth of 18% to 19% for fiscal 2026, with subscription ARR expected to increase by 24% to 25% [21][22] - Management highlighted the importance of innovation and customer-centric strategies to maintain competitive advantage in a rapidly evolving market [47] Other Important Information - Commvault's fiscal Q2 gross margins were reported at 80.5%, reflecting the impact of the SaaS business mix [18] - The company raised $900 million in convertible senior notes to optimize its balance sheet and enhance capital allocation flexibility [19] - Free cash flow grew 37% year over year to $74 million, supported by strong cash collections and deferred revenue from SaaS contracts [19] Q&A Session Summary Question: Can you elaborate on the shift in term duration? - Management noted that customers are opting for shorter contract durations to maintain flexibility as they transition to the cloud, which has impacted average deal size [26] Question: How does Commvault view the competitive landscape? - Management believes that while the market is competitive, Commvault is gaining share due to its innovative solutions and strong growth in both SaaS and software segments [31][33] Question: Is the backup modernization cycle winding down? - Management disagreed, stating that the frequency and scale of cyber attacks continue to drive demand for modernization and resilience solutions [36] Question: What are the drivers of the term subscription business? - On-premise data growth remains a significant driver, alongside the increasing integration of identity and data security offerings [52] Question: Are you seeing increased cross-sell between term and SaaS customers? - Management confirmed that the percentage of SaaS customers also using term products is gradually increasing, reflecting a positive trend in cross-selling [55]

Financial Data and Key Metrics Changes - Commvault achieved a record $47 million in net new ARR, with subscription ARR rising 30% to $894 million and total revenue growing 18% to $276 million [3][12] - Total ARR grew 22%, reaching $1 billion two quarters earlier than the original target [3][12] - SaaS ARR grew 56% to $336 million, also exceeding the original target two quarters ahead of schedule [12][13] - Fiscal Q2 gross margins were 80.5%, reflecting the shift towards SaaS and the integration costs from Satori [17][66] Business Line Data and Key Metrics Changes - Subscription ARR now constitutes 86% of total ARR, up from 81% a year ago [13] - Strong double-digit growth was observed in identity and data security offerings, which represented nearly 40% of net new ARR [5][15] - Active Directory usage tripled year over year, indicating strong demand for identity protection services [15][46] Market Data and Key Metrics Changes - Commvault protects approximately eight exabytes of customer data in the cloud, with a CAGR of over 40% over the past five years [7] - The number of SaaS customers grew to nearly 9,000, representing a 40% increase year over year [8] - Net dollar retention remained healthy at 125%, indicating strong adoption of SaaS offerings from existing customers [9][15] Company Strategy and Development Direction - The company focuses on three key growth drivers: demand for the Commvault Cloud Cyber Resilience platform, the shift to the cloud, and ongoing innovation [4][10] - Commvault aims to address evolving resilience requirements as enterprises increasingly adopt AI technologies [10] - The acquisition of Satori Cyber is expected to enhance the company's capabilities in monitoring and protecting large language models [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong market demand, driven by innovation and growth-focused investments [21] - The competitive landscape remains challenging, but Commvault is positioned to take market share through its innovative platform [28][39] - The company anticipates a total revenue range of $1.161 to $1.165 billion for fiscal year 2026, reflecting a 17% increase at the midpoint [20] Other Important Information - Commvault's capital allocation strategy includes share buybacks, M&A, and organic investments [72] - The company repurchased $131 million of stock during the quarter, with a total of $146 million year to date [18][72] Q&A Session Summary Question: Can you elaborate on the shift in term duration? - Management noted that customers are opting for shorter contract durations to maintain flexibility as they transition to the cloud, which has impacted average deal size [24][62] Question: How does Commvault view the competitive landscape? - Management indicated that while the landscape is competitive, Commvault continues to take market share, particularly in the SaaS segment, which is growing at a faster rate than the overall market [28][30] Question: Are there signs of a slowdown in backup modernization? - Management disagreed, stating that the demand for cyber resilience remains strong due to ongoing cyber threats and the need for innovative solutions [31] Question: What are the drivers of the term subscription business? - Management highlighted that on-premise data growth continues to be a significant driver, alongside the increasing importance of identity and data security [43][46] Question: Is there increased cross-sell between term and SaaS customers? - Management confirmed that the percentage of SaaS customers also using term services is gradually increasing, reflecting a positive trend in cross-selling [47][48]