Commvault Announces Fiscal 2025 Second Quarter Financial Results
TINTON FALLS, N.J., Oct. 29, 2024 /PRNewswire/ -- Commvault (NASDAQ:CVLT) today announced its financial results for the fiscal second quarter ended September 30, 2024.
"Keeping customers resilient and their businesses continuous has never been more critical than it is today," said Sanjay Mirchandani, President and CEO. "Our strong execution and increasing demand for our innovative Commvault Cloud platform has not only resulted in our fourth consecutive quarter of double-digit revenue growth, but it has given us the confidence to once again raise our outlook for the full fiscal year."
Notes are contained at the end of this Press Release.
Fiscal 2025 Second Quarter Highlights -
Total revenues were $233.3 million, up 16% year over year
Total annualized recurring revenue (ARR)1 grew to $853 million, up 20% year over year
Subscription revenue was $134.0 million, up 37% year over year
Subscription ARR1 grew to $687 million, up 30% year over year
Income from operations (EBIT) was $15.0 million, an operating margin of 6.4%
Non-GAAP EBIT2 was $47.7 million, an operating margin of 20.5%
Operating cash flow was $55.6 million, with free cash flow2 of $53.7 million
Second quarter share repurchases were $51.9 million, or approximately 363,000 shares of common stock
Financial Outlook for Third Quarter and Full Year Fiscal 20253 -
We are providing the following guidance for the third quarter of fiscal year 2025:
Total revenues are expected to be between $243 million and $247 million
Subscription revenue is expected to be between $143 million and $147 million
Non-GAAP operating margin2 is expected to be between 20% and 21%
We are providing the following updated guidance for the full fiscal year 2025:
Total revenues are expected to be between $952 million and $957 million
Total ARR1 is expected to grow 18% year over year
Subscription revenue is expected to be between $552 million and $557 million
Subscription ARR1 is expected to grow between 26% and 28% year over year
Non-GAAP operating margin2 is expected to be between 20% and 21%
Free cash flow2 is expected to be at least $200 million
The above statements are based on the incorporation of actual second quarter results, current targets and the acquisition of Clumio, Inc. which closed on October 1, 2024. These statements are forward looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.
Conference Call InformationCommvault will host a conference call today, October 29, 2024 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.
About CommvaultCommvault (NASDAQ:CVLT) is the gold standard in cyber resilience, helping more than 100,000 organizations keep data safe and businesses resilient and moving forward. Today, Commvault offers the only cyber resilience platform that combines the best data security and rapid recovery at enterprise scale across any workload, anywhere—at the lowest TCO.
Safe Harbor StatementThis press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.
Revenue Overview($ in thousands)
Q2'24
Q3'24
Q4'24
Q1'25
Q2'25
Revenue Summary:
Subscription
$ 97,757
$ 114,247
$ 119,873
$ 124,080
$ 134,038
Perpetual license
14,388
14,874
15,196
13,736
10,522
Customer support
77,019
76,812
77,025
76,288
77,688
Other services
11,833
10,875
11,198
10,568
11,030
Total revenues
$ 200,997
$ 216,808
$ 223,292
$ 224,672
$ 233,278
Q2'24
Q3'24
Q4'24
Q1'25
Q2'25
Y/Y Growth:
Subscription
25 %
31 %
27 %
28 %
37 %
Perpetual license
(27) %
(25) %
(13) %
4 %
(27) %
Customer support
(1) %
(1) %
— %
(1) %
1 %
Other services
(1) %
6 %
(20) %
(2) %
(7) %
Total revenues
7 %
11 %
10 %
13 %
16 %
Constant Currency($ in thousands)
The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Subscription
Perpetual
license
Customer
support
Other
services
Total
Q2'24 Revenue as Reported (GAAP)
$ 97,757
$ 14,388
$ 77,019
$ 11,833
$ 200,997
Q2'25 Revenue as Reported (GAAP)
$ 134,038
$ 10,522
$ 77,688
$ 11,030
$ 233,278
% Change Y/Y (GAAP)
37 %
(27) %
1 %
(7) %
16 %
Constant Currency Impact
$ (924)
$ (112)
$ (408)
$ (307)
$ (1,751)
% Change Y/Y Constant Currency
36 %
(28) %
— %
(9) %
15 %
Revenues by Geography($ in thousands)
Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China.
Q2'24
Q3'24
Q4'24
Q1'25
Q2'25
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Americas
$ 120,300
4 %
$ 125,052
16 %
$ 131,069
7 %
$ 138,725
14 %
$ 144,408
20 %
International
80,697
12 %
91,756
6 %
92,223
14 %
85,947
13 %
88,870
10 %
Total revenues
$ 200,997
7 %
$ 216,808
11 %
$ 223,292
10 %
$ 224,672
13 %
$ 233,278
16 %
Total ARR and Subscription ARR1($ in thousands)
Q2'24
Q3'24
Q4'24
Q1'25
Q2'25
Total ARR1
$ 711,462
$ 752,480
$ 769,946
$ 802,709
$ 853,265
Subscription ARR1
$ 529,590
$ 571,125
$ 596,667
$ 635,910
$ 687,050
Income from Operations (EBIT)
Income from operations (EBIT) was $15.0 million, an operating margin of 6.4%
Non-GAAP EBIT2 was $47.7 million, an operating margin of 20.5%
GAAP and Non-GAAP Net Income2
GAAP net income was $15.6 million, or $0.35 per diluted share
Non-GAAP net income2 was $37.6 million, or $0.83 per diluted share
Cash Summary and Share Repurchases
Cash flow from operations was $55.6 million in the second quarter
As of September 30, 2024, ending cash and cash equivalents was approximately $303.1 million
During the second quarter, Commvault repurchased $51.9 million, or approximately 363,000 shares, of common stock at an average share price of approximately $143.09 per share
Table I
Commvault Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Six Months Ended September 30,
2024
2023
2024
2023
Revenues:
Subscription
$ 134,038
$ 97,757
$ 258,118
$ 195,047
Perpetual license
10,522
14,388
24,258
27,543
Customer support
77,688
77,019
153,976
153,934
Other services
11,030
11,833
21,598
22,623
Total revenues
233,278
200,997
457,950
399,147
Cost of revenues:
Subscription
19,532
14,643
37,072
27,006
Perpetual license
441
