• Total Revenue: Increased 23% to $275 million.
• Subscription Revenue: Grew 45% to $173 million.
• Total ARR: Improved 21% to $930 million.
• SaaS ARR: Jumped 68% to $281 million.
• Gross Margin: 83.1% for fiscal Q4.
• Operating Expenses: $168 million, representing 61% of total revenue.
• Non-GAAP EBIT: Grew 31% to $59 million, with margins up 130 basis points to 21.5%.
• Free Cash Flow: $76 million for Q4 and $204 million for the full year.
• Cash Position: Ended the quarter with $302 million in cash.
• Stock Repurchase: $165 million, representing 81% of free cash flow.
• Q1 Fiscal '26 Revenue Guidance: Total revenue expected to be $266 million to $270 million.
• Fiscal '26 Total ARR Growth Guidance: Expected to grow 16% to 17% year-over-year.
• Fiscal '26 Total Revenue Guidance: Expected to be $1.13 billion to $1.14 billion.

• Warning! GuruFocus has detected 3 Warning Sign with CVLT.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CommVault Systems Inc (NASDAQ:CVLT) reported a 23% increase in total revenue, reaching $275 million, with subscription revenue growing by 45%.
• The company achieved a 68% increase in SaaS ARR, totaling $281 million, indicating strong growth in their SaaS offerings.
• CommVault Systems Inc (NASDAQ:CVLT) successfully integrated two acquisitions, expanding their platform's capabilities, particularly with AWS workloads.
• The company added nearly 3,000 new subscription customers, demonstrating strong customer acquisition and growth in their land business.
• CommVault Systems Inc (NASDAQ:CVLT) achieved a Rule of 40 score of 41 for the fiscal year, indicating a healthy balance of growth and profitability.

Negative Points

• Despite strong revenue growth, the operating margin guidance remains flat year-over-year, indicating limited margin expansion.
• The macroeconomic environment remains uncertain, which could impact future demand and sales cycles.
• The company faces competition from other vendors like Rubrik and Cohesity, which are perceived to be stronger in cybersecurity.
• CommVault Systems Inc (NASDAQ:CVLT) is transitioning to a cash taxpayer status, which may impact future cash flow.
• The company's growth strategy involves significant investment, which could pressure profitability if not managed carefully.

Q & A Highlights

Q: Can you discuss the macroeconomic environment and its impact on customer behavior and sales cycles? A: Sanjay Mirchandani, CEO: Cyber resilience remains a priority for customers, and we haven't seen significant changes in sales cycles or close rates between Q4 and Q1. We are monitoring the macro environment but remain confident in our guidance for fiscal '26. Jen DiRico, CFO, added that the guidance reflects a balance between prudence and the strong demand for cyber resilience products.

Q: How is the Clumio acquisition contributing to your business, and what are your expectations for its future impact? A: Jen DiRico, CFO: Clumio has been fully integrated into our platform, contributing about 100 basis points to total revenue. Sanjay Mirchandani, CEO, highlighted Clumio's unique capabilities in handling large data sets and its potential as a differentiator, especially for AI applications.

Q: What are your strategic priorities for product development and investment over the next few years? A: Sanjay Mirchandani, CEO: We focus on enhancing customer resilience with technologies like Cleanroom, Active Directory forest level recovery, and Clumio's capabilities. We aim to support emerging workloads, including AI and cloud capabilities, to improve customer resilience against disruptions.

Q: How do you view the competitive landscape, especially with the acquisition of Veritas by Cohesity and the presence of other cybersecurity-focused vendors? A: Sanjay Mirchandani, CEO: Our strategy focuses on resilience, providing strong recovery capabilities in the face of cyberattacks. We believe our hybrid cloud capabilities and broad technology offerings position us well against competitors, and our growth indicates we are gaining market share.

Q: Can you elaborate on your approach to cross-selling and upselling within your SaaS portfolio? A: Jen DiRico, CFO: We are focused on increasing multiproduct adoption, with cyber offerings like Active Directory and Cleanroom driving 25% of net new ARR. We aim to expand cross-sell opportunities, leveraging our broad product set to meet diverse customer needs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.