Loading...
01/11 04:03
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects strong financial performance, with a 23% revenue increase and robust subscription growth. Positive guidance and strategic expansion in SaaS and cyber resilience markets support the outlook. Share repurchases exceeding guidance enhance shareholder value. Despite competitive pressures and macroeconomic concerns, management's focus on resilience and innovation is promising. Q&A insights show confidence in market positioning, though some responses lacked specificity. Overall, the positive financial metrics, optimistic guidance, and strategic positioning suggest a positive stock price movement, likely in the 2% to 8% range.
Total Revenue $275 million, increased 23% year-over-year, driven by a robust 45% increase in subscription revenue.
Subscription Revenue $173 million, grew 45% year-over-year, driven by momentum across the SaaS platform and expansion with existing customers.
Total ARR $930 million, improved 21% year-over-year, reflecting strong performance across geographic regions and increased contributions from new offerings.
SaaS ARR $281 million, jumped 68% year-over-year, indicating strong growth in the SaaS segment.
Subscription ARR $780 million, grew 31% year-over-year, now constituting 84% of total ARR, compared to 77% one year ago.
Revenue from term software transactions over $100,000 Increased by 38%, benefiting from improved volume and average transaction size.
SaaS Net Dollar Retention Rate Steady at 127%, driven by both upsell and cross-sell.
Gross Margins 83.1%, reflecting a strong mix of term software sales and optimization in SaaS margins.
Operating Expenses $168 million, represented 61% of total revenue, compared to 62% in the prior year.
Non-GAAP EBIT $59 million, grew 31% year-over-year, with margins up 130 basis points to 21.5%.
Free Cash Flow (Q4) $76 million, driven by deferred revenue from SaaS contracts and strength in term software business.
Full-Year Free Cash Flow $204 million, representing 81% of free cash flow used for stock repurchases.
Stock Repurchases $165 million, exceeding guidance to return at least 75% of free cash flow.
Cash Position $302 million, with no debt.
New Products: Commvault introduced Active Directory's forest level recovery, automating rapid recovery of users, groups, and permissions, significantly reducing recovery time. Commvault Cloud Rewind enables rapid rebuilding of cloud-native applications after cyberattacks, addressing complex recovery processes. Commvault Backtrack helps recover massive AI data repositories on Amazon S3, restoring data at ten times the speed of other solutions.
Market Expansion: Commvault extended its partner ecosystem with integrations with Akamai, Dithera, Google Threat Intelligence, Splunk, and Waze. Commvault's total addressable market is now estimated to be approximately $24 billion, driven by growth in data security and cloud security. Commvault secured notable customer wins in various sectors, including American Tower, Cinemark Holdings, and Blue Origin.
Operational Efficiencies: Commvault achieved a 21% increase in total ARR to $930 million, with a 68% increase in SaaS ARR to $281 million. The company reported a 45% increase in subscription revenue, driven by momentum across its SaaS platform. Commvault's gross margins were 83.1%, reflecting a strong mix of term software sales and SaaS optimization.
Strategic Shifts: Commvault is focusing on cyber resilience as a top strategic priority, addressing increasing ransomware and cyberattacks. The company plans to drive increased multiproduct adoption of its SaaS offerings, targeting a higher percentage of customers using multiple products. Commvault aims to continue investing in cloud and data security integrations across its partner ecosystem.
Cyber Resilience Risks: Ransomware and sophisticated cyberattacks are increasing in frequency, posing a significant risk to organizations' data security and recovery efforts.
Regulatory Compliance Risks: Commvault is supporting compliance with regulations such as GDPR and DORA, indicating potential risks associated with non-compliance in highly regulated industries.
Supply Chain Challenges: The complexity of cloud environments and the need for continuous business operations may lead to challenges in managing supply chains effectively.
Economic Factors: Commvault is closely monitoring the macro environment and potential changes in demand trends, which could impact future growth.
Competitive Pressures: The company faces competitive pressures from other data protection solutions, necessitating continuous innovation and differentiation in their offerings.
Total Revenue Growth: Total revenue increased 23% to $275 million.
Subscription Revenue Growth: Subscription revenue grew 45% to $173 million.
Total ARR: Total ARR improved 21% to $930 million.
SaaS ARR Growth: SaaS ARR jumped 68% to $281 million.
Strategic Partnerships: Extended partner ecosystem with integrations with Akamai, Dithera, Google Threat Intelligence, Splunk, and Waze.
New Customer Wins: Notable customer wins include American Tower, Cinemark Holdings, Janus International, McGraw Hill, and Blue Origin.
Market Opportunity: Total addressable market estimated to be approximately $24 billion.
Cyber Resilience Focus: Cyber resilience remains a top strategic priority for organizations.
Continuous Business Approach: Unique approach to continuous business availability and resilience for the modern enterprise.
Q1 2026 Subscription Revenue Guidance: Expected to be in the range of $166 million to $170 million, representing 35% year-over-year growth at the midpoint.
Q1 2026 Total Revenue Guidance: Expected to be in the range of $266 million to $270 million, with growth of 19% at the midpoint.
FY 2026 Total ARR Growth Guidance: Expected growth of 16% to 17% year over year.
FY 2026 Subscription Revenue Guidance: Expected to be in the range of $727 million to $732 million, growing 24% at the midpoint.
FY 2026 Total Revenue Guidance: Expected total revenue of $1.13 billion to $1.14 billion, an increase of 14% at the midpoint.
FY 2026 Free Cash Flow Guidance: Projected free cash flow of $210 million to $215 million.
Share Repurchase: In fiscal year 2025, Commvault repurchased $165 million of stock, representing 81% of free cash flow, exceeding their guidance to return at least 75%.
The earnings call reflects strong financial performance, with significant growth in subscription revenue and ARR. Despite some concerns about competition and contract duration shifts, the company's strategic investments in SaaS and market share gains are promising. The Q&A indicates confidence in growth and resilience strategies, with positive insights on TAM growth and competitive positioning. Overall, the sentiment is positive, with potential for stock price increase driven by strong financials and optimistic guidance.
The earnings call summary reflects strong financial performance, with a 46% increase in revenue and consistent gross margins. While operating expenses are high, the increase in non-GAAP EBIT and free cash flow is encouraging. The Q&A section highlights successful cross-sell and upsell strategies, and the raised revenue guidance indicates confidence in future performance. Despite some unclear responses from management, the overall sentiment is positive, driven by robust growth metrics and strategic focus on cyber resilience.
The earnings call reflects strong financial performance, with a 23% revenue increase and robust subscription growth. Positive guidance and strategic expansion in SaaS and cyber resilience markets support the outlook. Share repurchases exceeding guidance enhance shareholder value. Despite competitive pressures and macroeconomic concerns, management's focus on resilience and innovation is promising. Q&A insights show confidence in market positioning, though some responses lacked specificity. Overall, the positive financial metrics, optimistic guidance, and strategic positioning suggest a positive stock price movement, likely in the 2% to 8% range.
Commvault's strong financial performance, with a 23% revenue increase and 45% subscription revenue growth, coupled with a robust SaaS ARR growth of 68%, indicates positive momentum. The share repurchase program and high gross margins further boost sentiment. Despite competitive pressures and macroeconomic concerns, the company's strategic positioning in cyber resilience and strong guidance suggest a positive outlook. The Q&A session revealed management's confidence in their growth strategy and resilience, although some concerns about clarity on Clumio's contribution and growth versus margin trade-offs were noted. Overall, the positive financial metrics outweigh the uncertainties.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
