Commvault(US:CVLT)2025-04-29 12:30Financial Data and Key Metrics Changes - Total revenue increased by 23% to $275 million, driven by a robust 45% increase in subscription revenue [5][23] - Total ARR improved by 21% to $930 million, with subscription ARR growing by 31% to $780 million, and SaaS ARR jumping by 68% to $281 million [22][23] - Fiscal Q4 gross margins were 83.1%, reflecting a strong mix of term software sales [27] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by momentum across the SaaS platform and expansion with existing customers [23] - Revenue from term software transactions over $100,000 increased by 38%, with more than a dozen transactions exceeding $1 million [23] - Q4 saw the addition of 700 new subscription customers, surpassing 12,000 worldwide [24] Market Data and Key Metrics Changes - Strong customer wins included notable companies such as American Tower and Cinemark Holdings, reflecting current tailwinds in the industry [9] - EMEA and APAC regions showed balanced growth, with EMEA having a particularly strong quarter [72] Company Strategy and Development Direction - The company is focused on cyber resilience as a top strategic priority, addressing increasing ransomware and sophisticated cyber attacks [9] - Plans to continue investing in cloud and data security integrations across the partner ecosystem, expanding the total addressable market to approximately $24 billion [20][30] - The company aims to drive increased multi-product adoption of its SaaS offerings, with a strategic priority to enhance cross-sell opportunities [26][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the guidance for fiscal year '26, citing strong demand for cyber resilience products and internal execution [41][42] - The macro environment is being monitored closely, but no significant changes in customer sentiment were noted between Q4 and Q1 [39][41] - The company expects total revenue for Q1 to be in the range of $266 million to $270 million, representing a 19% year-over-year growth at the midpoint [30] Other Important Information - The company ended the quarter with no debt and $302 million in cash, with a free cash flow of $76 million for Q4 [28][29] - Fiscal year '26 total ARR growth is expected to be between 16% to 17% year-over-year, driven by subscription ARR growth of 22% to 23% [32][33] Q&A Session Summary Question: Customer sentiment regarding macroeconomic conditions and cyber resilience - Management indicated that cyber resilience remains a priority for customers, with no significant changes in sales cycles or close rates observed [39][41] Question: Operating margin guidance and growth versus margin trade-off - Management emphasized a balance between continued investment in growth opportunities and maintaining overall profitability [42][43] Question: Contribution of Clumio acquisition to revenue - Clumio is expected to contribute approximately 100 basis points to total revenue, with excitement about its unique capabilities [47][49] Question: Cross-sell and upsell opportunities within the SaaS portfolio - The company reported a SaaS net dollar retention rate of 127%, with a focus on increasing multi-product adoption among customers [52][81] Question: Competitive landscape and response to acquisitions in the industry - Management highlighted a focus on resilience and the ability to recover from cyber attacks, asserting that the company is gaining market share despite a flat overall on-premise market [59] Question: Future focus on workloads and capabilities - The company plans to enhance capabilities that support AI and emerging workloads, emphasizing the importance of resilience in their offerings [61][62]