Q!C Commvault Announces First Quarter Fiscal2026 Financial Results
Exceeded Guidance Across All Top Line Metrics Record Total Revenue of $282 million, up 26% year-over-year
Annualized Recurring Revenue(ARR) 1grew to$996million, up24%year-over-year
Tinton Falls, N.J. – July 29, 2025 – Commvault [Nasdaq: CVLT] today announced its financial results for the fiscal first quarter ended June 30, 2025.
“Commvault delivered a strong start to the fiscal year, fueled by customer growth, disciplined execution, and rising demand for our industry-leading cyber resilience platform,” said Sanjay Mirchandani, President and CEO,Commvault.“Withabest-in-class partner eco system and continuous innovation that we believe sets us apart,we are well-positioned to continue to take share in fiscal 2026 and beyond.”
NotesarecontainedattheendofthisPressRelease
FirstQuarterFiscal2026Highlights–
- Totalrevenueswere$282million,up26%yearoveryear
- TotalARR1grew to $996 million, up 24% year over year, or 21% on a constant currency basis using March 31, 2025 spot rates
- Subscriptionrevenuewas$182million,up46%yearoveryear,inclusiveofterm-basedlicenserevenueof
$109million,up36%yearoveryear,andSaaSrevenueof$72million,up66%yearoveryear
- SubscriptionARR1grew to $844 million, up 33% year over year, or 30% on a constant currency basis using March 31, 2025 spot rates
- Incomefromoperations(EBIT)was$25million,anoperatingmarginof8.9%
- Non-GAAPEBIT2was$58million,anoperatingmarginof20.7%
- Operatingcashflowwas$32million,withfreecashflow2of$30million
RecentBusinessHighlights–
- For the 14th time in a row, Commvault has been named a Leader in the Gartner® Magic Quadrant™ for Backup and Data Protection Platforms.
- Commvault announced enhancements to its post quantum computing capabilities, designed to help customers protect their highly sensitive, long-term data from a new generation of cyber threats.
- Commvault continues to drive value for our global customers through strategic partnerships that enhance incident response capabilities, cyber resilience, and more. In Q1, Commvault announced enhanced partnerships with CrowdStrike, Deloitte, HPE, and Kyndryl.
- Commvault Cloud achieved GovRAMPAuthorized status for its cyber resilience SaaS solutions at the state level, complementing its unique FedRAMP High authorization at the federal level.
FinancialOutlookforSecondQuarterandFullYearFiscal20263–
Weare providing the following guidance for the second quarter of fiscal year 2026, based on current macroeconomic conditions:
- Totalrevenuesareexpectedtobebetween$272millionand$274million
- Subscriptionrevenueisexpectedtobebetween$174millionand$176million
- Non-GAAPgrossmargin2isexpectedtobebetween81%and82%
- Non-GAAPEBITmargin2isexpectedtobeapproximately20%
We are providing the following updated guidance for the full fiscal year 2026, based on current macroeconomic conditions:
- Totalrevenuesareexpectedtobebetween$1,161millionand$1,165million
- TotalARR1isexpectedtogrow18%yearoveryear
- Subscriptionrevenueisexpectedtobebetween$753millionand$757million
- SubscriptionARR1isexpectedtogrow24%yearoveryear
- Non-GAAPgrossmargin2isexpectedtobebetween81%and82%
- Non-GAAPEBITmargin2isexpectedtobeapproximately20.5%
- Freecashflow2isexpectedtobebetween$210millionand$215million
The above statements are based on the incorporation of actual first quarter results ,current targets and the acquisition of Satori Cyber, Ltd., which is expected to close in the second quarter of fiscal 2026. 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.
ConferenceCallInformation
Commvault will host a conference call today, July 29, 2025 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.
AboutCommvault
Commvault (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.
SafeHarborStatement
This 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’sbusiness,see”Item1A.RiskFactors”inourannualreportonForm10-Kand”Item1A.RiskFactors” 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 SecuritiesAct of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward- lookingstatementsaremadepursuanttothesafeharborprovisionsofthePrivateSecuritiesLitigationReform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.
InvestorRelationsContact
MichaelJ. Melnyk, CFA 646-522-6160
MediaContact Andrea Duffy 646-295-5241
Overview
($in thousands)
| Q1’25 | Q2’25 | Q3’25 | Q4’25 | Q1’26 | ||||||||
| Revenue | Y/Y Growth | Revenue | Y/Y Growth | Revenue | Y/Y Growth | Revenue | Y/Y Growth | Revenue | Y/Y Growth | |||
| Subscription: | ||||||||||||
| Term-basedlicense | $80,405 | 13% | $84,427 | 22% | $97,625 | 21% | $107,954 | 33% | $109,282 | 36% | ||
| SaaS | 43,675 | 69% | 49,611 | 75% | 60,696 | 82% | 65,274 | 69% | 72,445 | 66% | ||
| Totalsubscription | 124,080 | 28% | 134,038 | 37% | 158,321 | 39% | 173,228 | 45% | 181,727 | 46% | ||
| Perpetuallicense | 13,736 | 4% | 10,522 | (27)% | 16,423 | 10% | 14,962 | (2)% | 7,335 | (47)% | ||
| Customersupport | 76,288 | (1)% | 77,688 | 1% | 77,078 | —% | 76,509 | (1)% | 79,021 | 4% | ||
| Otherservices | 10,568 | (2)% | 11,030 | (7)% | 10,808 | (1)% | 10,340 | (8)% | 13,895 | 31% | ||
| Totalrevenues | $224,672 | 13% | $233,278 | 16% | $262,630 | 21% | $275,039 | 23% | $281,978 | 26% | ||
ConstantCurrency-Revenue
($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 measurespresented 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.
| Q1’25 Revenueas Reported (GAAP) | Q1’26 Revenueas Reported (GAAP) | Constant Currency Impact | %ChangeY/Y (GAAP) | %ChangeY/Y Constant Currency | |||||
| Subscription: | |||||||||
| Term-basedlicense | $ 80,405 | $ 109,282 | $ (2,157) | 36% | 33% | ||||
| SaaS | 43,675 | 72,445 | (957) | 66% | 64% | ||||
| Totalsubscription | 124,080 | 181,727 | (3,114) | 46% | 44% | ||||
| Perpetuallicense | 13,736 | 7,335 | (193) | (47)% | (48)% | ||||
| Customersupport | 76,288 | 79,021 | (1,412) | 4% | 2% | ||||
| Otherservices | 10,568 | 13,895 | (271) | 31% | 29% | ||||
| Total | $ 224,672 | $ 281,978 | $ (4,990) | 26% | 23% |
DisaggregationofRevenues
($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.
| Q1’25 | Q2’25 | Q3’25 | Q4’25 | Q1’26 | |||||||||
| Revenue | Y/Y Growth | Revenue | Y/Y Growth | Revenue | Y/Y Growth | Revenue | Y/Y Growth | Revenue | Y/Y Growth | ||||
| Americas | $138,725 | 14% | $144,408 | 20% | $155,435 | 24% | $169,384 | 29% | $170,928 | 23% | |||
| International | 85,947 | 13% | 88,870 | 10% | 107,195 | 17% | 105,655 | 15% | 111,050 | 29% | |||
| Totalrevenues | $224,672 | 13% | $233,278 | 16% | $262,630 | 21% | $275,039 | 23% | $281,978 | 26% | |||
TotalARR,SubscriptionARRandSaaS ARR1
($in thousands)
| Q1’25 | Q2’25 | Q3’25 | Q4’25 | Q1’26 | |||||
| TotalARR1 | $ 802,709 | $ 853,265 | $ 889,628 | $ 930,051 | $ 996,202 | ||||
| SubscriptionARR1 | $ 635,910 | $ 687,050 | $ 734,212 | $ 780,098 | $ 843,873 | ||||
| SaaSARR1 | $ 187,908 | $ 214,832 | $ 258,957 | $ 281,045 | $ 306,874 |
ConstantCurrency-ARR1
($in thousands)
The constant currency impact onARR1is calculated using the foreign exchange spot rates from March 31, 2025 and applying these rates to foreign-denominated results in the periods presented.
| Q1’25 | Q2’25 | Q3’25 | Q4’25 | Q1’26 | |||||
| TotalARR1asReported | $ 802,709 | $ 853,265 | $ 889,628 | $ 930,051 | $ 996,202 | ||||
| TotalARR1usingMarch31,2025rates | $ 801,978 | $ 838,074 | $ 899,365 | $ 930,051 | $ 969,693 | ||||
| SubscriptionARR1asReported | $ 635,910 | $ 687,050 | $ 734,212 | $ 780,098 | $ 843,873 | ||||
| SubscriptionARR1usingMarch31,2025 rates | $ 634,946 | $ 675,330 | $ 741,526 | $ 780,098 | $ 822,695 | ||||
| SaaSARR1asReported | $ 187,908 | $ 214,832 | $ 258,957 | $ 281,045 | $ 306,874 | ||||
| SaaSARR1usingMarch31,2025rates | $ 187,412 | $ 210,585 | $ 261,416 | $ 281,045 | $ 299,017 |
AdditionalFinancialInformation
- GAAPnetincomewas$23million,or$0.52perdilutedshare
- Commvaultrepurchasedapproximately82,000sharesofcommonstockfor$15millionduringthethree months ended June 30, 2025
- DilutedsharesoutstandingasofJune30,2025wereapproximately45million
- Cashandcashequivalentstotaled$363millionasofJune30,2025
CommvaultSystems,Inc.
Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
| ThreeMonthsEnded June 30, | |||
| 2025 | 2024 | ||
| Revenues: | |||
| Subscription: | |||
| Term-basedlicense | $109,282 | $ 80,405 | |
| Software-as-a-service | 72,445 | 43,675 | |
| Totalsubscription | 181,727 | 124,080 | |
| Perpetuallicense | 7,335 | 13,736 | |
| Customersupport | 79,021 | 76,288 | |
| Otherservices | 13,895 | 10,568 | |
| Totalrevenues | 281,978 | 224,672 | |
| Costofrevenues: | |||
| Subscription: | |||
| Term-basedlicense | 2,242 | 1,778 | |
| Software-as-a-service | 25,972 | 15,762 | |
| Totalsubscription | 28,214 | 17,540 | |
| Perpetuallicense | 245 | 337 | |
| Customersupport | 14,207 | 14,263 | |
| Otherservices | 8,111 | 7,648 | |
| Totalcostofrevenues | 50,777 | 39,788 | |
| Grossmargin | 231,201 | 184,884 | |
| Operatingexpenses: | |||
| Salesandmarketing | 122,479 | 95,950 | |
| Researchanddevelopment | 40,062 | 33,104 | |
| Generalandadministrative | 41,270 | 30,795 | |
| Depreciationandamortization | 2,607 | 1,928 | |
| Restructuring | 237 | 4,679 | |
| Changeincontingentconsideration | (545) | — | |
| Totaloperatingexpenses | 206,110 | 166,456 | |
| Incomefromoperations | 25,091 | 18,428 | |
| Interestincome | 2,009 | 1,802 | |
| Interestexpense | (278) | (104) | |
| Otherincome,net | 61 | 528 | |
| Income beforeincometaxes | 26,883 | 20,654 | |
| Incometaxexpense | 3,387 | 2,127 | |
| Netincome | $ 23,496 | $ 18,527 | |
| Netincomepercommonshare: | |||
| Basic | $ 0.53 | $ 0.42 | |
| Diluted | $ 0.52 | $ 0.41 | |
| Weightedaveragecommonsharesoutstanding: | |||
| Basic | 44,326 | 43,678 | |
| Diluted | 45,283 | 44,986 | |
CommvaultSystems,Inc.
Condensed Consolidated Balance Sheets (In thousands)
(Unaudited)
| June30, | March31, | |
| 2025 | 2025 | |
| ASSETS | ||
| Currentassets: | ||
| Cashandcashequivalents | $ 363,234 | $ 302,103 |
| Tradeaccountsreceivable,net | 255,448 | 251,995 |
| Assetsheldforsale | — | 34,770 |
| Other currentassets | 48,448 | 46,189 |
| Totalcurrentassets | 667,130 | 635,057 |
| Deferredtaxassets,net | 130,139 | 133,378 |
| Propertyandequipment,net | 9,826 | 8,294 |
| Operatingleaseassets | 29,029 | 10,124 |
| Deferredcommissionscost | 82,874 | 79,309 |
| Intangibleassets,net | 19,666 | 20,737 |
| Goodwill | 185,255 | 185,255 |
| Otherassets | 52,518 | 46,112 |
| Totalassets | $ 1,176,437 | $ 1,118,266 |
| LIABILITIESANDSTOCKHOLDERS’EQUITY | ||
| Currentliabilities: | ||
| Accountspayable | $ 50 | $ 373 |
| Accruedliabilities | 107,219 | 147,133 |
| Currentportionofoperatingleaseliabilities | 5,558 | 4,614 |
| Deferredrevenue | 423,156 | 402,930 |
| Totalcurrentliabilities | 535,983 | 555,050 |
| Deferredrevenue,lesscurrentportion | 241,714 | 223,282 |
| Deferredtaxliabilities | 1,503 | 1,384 |
| Long-termoperatingleaseliabilities | 24,059 | 6,338 |
| Otherliabilities | 8,439 | 7,090 |
| Totalstockholders’equity | 364,739 | 325,122 |
| Totalliabilitiesandstockholders’equity | $ 1,176,437 | $ 1,118,266 |
CommvaultSystems,Inc.
Consolidated Statements of Cash Flows (In thousands)
(Unaudited)
| ThreeMonthsEnded June 30, | |||
| 2025 | 2024 | ||
| Cashflowsfromoperatingactivities | |||
| Netincome | $ 23,496 | $ 18,527 | |
| Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities: | |||
| Depreciationandamortization | 2,692 | 1,957 | |
| Noncashstock-basedcompensation | 30,180 | 26,404 | |
| Noncashchangeinfairvalueofequitysecurities | (61) | (70) | |
| Noncashadjustmentonheadquarterssaleleaseback | 495 | — | |
| Noncashchangeinfairvalueofcontingentconsideration | (545) | — | |
| Noncashoperatingleaseexpense | 1,636 | 1,579 | |
| Deferredincometaxes | 3,908 | (4,794) | |
| Amortizationofdeferredcommissionscost | 10,989 | 7,458 | |
| Changesinoperatingassetsandliabilities: | |||
| Tradeaccountsreceivable,net | 3,748 | 19,681 | |
| Operatingleaseliabilities | (1,908) | (2,302) | |
| OthercurrentassetsandOtherassets | 2,378 | (2,203) | |
| Deferredcommissionscost | (15,072) | (8,269) | |
| Accountspayable | (320) | 129 | |
| Accruedliabilities | (47,260) | (23,011) | |
| Deferredrevenue | 17,440 | 9,438 | |
| Otherliabilities | (115) | 168 | |
| Netcashprovidedbyoperatingactivities | 31,681 | 44,692 | |
| Cashflowsfrominvestingactivities | |||
| Purchaseofpropertyandequipment | (1,879) | (863) | |
| Purchaseofequitysecurities | (6,144) | (473) | |
| Proceedsfromsaleofheadquarters, net | 34,849 | — | |
| Businesscombination,netofcashacquired | — | (21,000) | |
| Netcashprovidedby(usedin)investingactivities | 26,826 | (22,336) | |
| Cashflowsfromfinancingactivities | |||
| Repurchaseofcommonstock | (15,050) | (51,392) | |
| Proceedsfromstock-basedcompensationplans | — | 5,340 | |
| Paymentofdebtissuancecosts | (1,846) | — | |
| Paymentoffinancialliability | (12) | — | |
| Netcashusedinfinancingactivities | (16,908) | (46,052) | |
| Effectsofexchangerate—changesincash | 19,532 | (1,187) | |
| Netincrease(decrease)incashandcashequivalents | 61,131 | (24,883) | |
| Cashandcashequivalentsatbeginningofperiod | 302,103 | 312,754 | |
| Cashandcashequivalentsatendofperiod | $363,234 | $287,871 | |
| Supplementaldisclosuresofnoncashactivities | |||
| Issuanceofcommonstockforbusinesscombination | $ — | $ 4,900 | |
| Operatingleaseliabilitiesarisingfromobtainingright-of-useassets | $ 20,252 | $ 1,968 | |
CommvaultSystems,Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data)
(Unaudited)
| ThreeMonthsEnded June 30, | |||
| 2025 | 2024 | ||
| Non-GAAPfinancialmeasuresandreconciliation: | |||
| GAAPincomefromoperations | $ 25,091 | $ 18,428 | |
| Noncashstock-basedcompensation4 | 30,105 | 22,396 | |
| FICAandpayrolltax expenserelatedtostock-based compensation5 | 1,799 | 1,363 | |
| Restructuring6 | 237 | 4,679 | |
| Amortizationofintangibleassets7 | 1,071 | 573 | |
| Litigationsettlement8 | — | 675 | |
| Businesscombinationcosts9 | — | 189 | |
| Changeincontingentconsideration10 | (545) | — | |
| Adjustmentonheadquarterssaleleaseback11 | 495 | — | |
| Non-GAAPincomefromoperations | $ 58,253 | $ 48,303 | |
| GAAPnetincome | $ 23,496 | $ 18,527 | |
| Noncashstock-basedcompensation4 | 30,105 | 22,396 | |
| FICAandpayrolltaxexpenserelated to stock-basedcompensation5 | 1,799 | 1,363 | |
| Restructuring6 | 237 | 4,679 | |
| Amortizationofintangibleassets7 | 1,071 | 573 | |
| Litigationsettlement8 | — | 675 | |
| Businesscombinationcosts9 | — | 189 | |
| Changeincontingentconsideration10 | (545) | — | |
| Adjustmentonheadquarterssaleleaseback11 | 495 | — | |
| Non-GAAPprovisionforincometaxesadjustment12 | (11,024) | (10,000) | |
| Non-GAAPnetincome | $ 45,634 | $ 38,402 | |
| GAAPdilutedearningspershare | $ 0.52 | $ 0.41 | |
| Noncashstock-basedcompensation4 | 0.66 | 0.50 | |
| FICAandpayrolltax expenserelatedtostock-based compensation5 | 0.04 | 0.03 | |
| Restructuring6 | 0.01 | 0.10 | |
| Amortizationofintangibleassets7 | 0.02 | 0.01 | |
| Litigationsettlement8 | — | 0.02 | |
| Businesscombinationcosts9 | — | — | |
| Changeincontingentconsideration10 | (0.01) | — | |
| Adjustmentonheadquarterssaleleaseback11 | 0.01 | — | |
| Non-GAAPprovisionforincometaxesadjustment12 | (0.24) | (0.22) | |
| Non-GAAPdilutedearningspershare | $ 1.01 | $ 0.85 | |
| GAAPdilutedweightedaveragesharesoutstanding | 45,283 | 44,986 | |
| ThreeMonthsEnded June 30, | |||
| 2025 | 2024 | ||
| Non-GAAPgrossmarginreconciliation: | |||
| GAAPgrossmargin | 82.0% | 82.3% | |
| Cost ofrevenuesrelatedto noncashstock-basedcompensation | 0.4% | 0.7% | |
| Non-GAAPgrossmargin | 82.4% | 83.0% | |
| ThreeMonthsEnded June 30, | |||
| 2025 | 2024 | ||
| Non-GAAPfreecash flowreconciliation: | |||
| GAAPcashprovided byoperatingactivities | $ 31,681 | $ 44,692 | |
| Purchaseofpropertyandequipment | (1,879) | (863) | |
| Non-GAAPfreecashflow | $ 29,802 | $ 43,829 | |
UseofNon-GAAPFinancialMeasures
Commvault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP income from operations margin, non-GAAPgross margin, non-GAAP net income, non- GAAP diluted earnings per share, non-GAAP free cash flow, annualized recurring revenue (ARR), subscription ARR and SaaSARR. This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Commvault believes that the use of these non-GAAP financial measures, when used as a supplement to GAAPfinancialmeasures,providesanadditionaltoolforinvestorstouseinevaluatingongoingoperatingresults and trends, and in comparing its financial results with other companies in Commvault’s industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues, ARR, subscription ARR and SaaS ARR on a constant currency basis. Commvault analyzes revenue growth, ARR, subscription ARR and SaaS ARR 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.
All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.
Non-GAAP incomefromoperationsandnon-GAAP incomefromoperationsmargin. Thesenon-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees exercise in-the- money stock options or vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, the change in the estimated fair value of contingent consideration, and adjustments fromthesaleandleasebackofheadquartersfromitsnon-GAAPresults.Theseadjustmentsarefurtherdiscussed in the reconciliation of GAAP to non-GAAP financial measures. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault’s core operating results over multiple periods. When evaluating the performance of Commvault’s operating results and developing short- and long-term plans, Commvault does not consider such expenses.
Although noncash stock-based compensation and the additional FICA and related payroll tax expenses arenecessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measuresthat exclude noncash stock-based compensation expense and the additional FICAand related payroll tax expenses incurred on stock option exercises and vesting of restricted stock awards allow investorstomakemeaningful comparisonsbetween Commvault’s operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin.The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurringexpense in Commvault’s operating results.In addition, noncash stock-based compensation is an important part of Commvault’s employees’compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):
| ThreeMonthsEndedJune30, | |||
| 2025 | 2024 | ||
| Costofrevenues | $ 1,249 | $ 1,581 | |
| Salesandmarketing | 12,586 | 9,486 | |
| Researchanddevelopment | 7,070 | 5,164 | |
| Generalandadministrative | 9,200 | 6,165 | |
| Stock-basedcompensationexpense | $ 30,105 | $ 22,396 | |
The table above excludes stock-based compensation expense related to the Company’s restructuring activities described below in Note 6.
The components that Commvault excludes in its non-GAAP financial measures may differ from the components that itspeercompaniesexcludewhentheyreporttheirnon-GAAP financial measures.Duetothelimitationsrelatedto the use of non-GAAP measures, Commvault’s management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault’s management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.
Non-GAAP net income and non-GAAP diluted earnings per share (EPS).In addition to the adjustments discussed in non-GAAP income from operations, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%.
Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income.For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rateas the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.
Commvault considers non-GAAPnet income and non-GAAPdiluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault’s use of non-GAAP net income and non- GAAP diluted EPS.
Non-GAAP grossmargin.Commvaultdefinesthisnon-GAAP financialmeasureasGAAPgrossmarginadjusted to exclude cost of revenues related to noncash stock-based compensation.
Non-GAAPfree cash flow.Commvault defines this non-GAAPfinancial measure asnet cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault’s ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault’s use of non-GAAP free cash flow.
Forward-looking non-GAAP measures.In this press release, Commvault presents certain forward-looking non- GAAP metrics. Commvault cannot provide a reconciliation to the comparable GAAP metric without unreasonable efforts, as certain financial information, the probable significance of which may be material, is not available andcannot be reasonably estimated.
Notes
- Annualizedrecurringrevenue(ARR)isdefinedastheannualizedrecurringvalueofallactivecontractsat the end of a reporting period. It includes recurring subscription offerings (including term licenses, SaaS, and utility software), maintenance related to perpetual and term licenses, extended maintenance contracts (enterprise support), and managed services. It excludes non-recurring elements such as perpetual licenses and professional services which are typically delivered at a point in time. ARR is calculated by dividing the total contract value by the number of days in the contract term and multiplying by 365. Subscription ARR includes only term licenses, SaaS, and utility arrangements, calculated using the same methodology asARR. SaaS ARR includes only the cloud-hosted portion of Subscription ARR and is calculated using thesame methodology.
These metrics should be viewed independently of GAAP revenue, deferred revenue and unbilled revenueand are not intended to be combined with or to replace thoseitems. These metrics are not a forecast offuture revenues. Management believes that reviewing these metrics, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault’s recurring revenue streams presented on an annualized basis. See “Use of Non-GAAP Financial Measures” for additional explanation.
- Areconciliation of GAAPto non-GAAPresults has been provided in the reconciliation of GAAPto non-GAAP financial measures included in this press release. An explanation of these measures is also included under the heading “Use of Non-GAAP Financial Measures.”
- Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See “Use of Non-GAAP Financial Measures” for additional explanation.
- Represents noncash stock-based compensation charges associated with restricted stock units granted and ourEmployee StockPurchase Plan,exclusive of stock-based compensationexpense related to Commvault’s restructuring activities described below in Note 6.
- Represents additional FICA and related payroll tax expenses incurred by Commvault when employees exercise in-the-money stock options or vest in restricted stock awards.
- These restructuring charges relate primarily to severance and related costs associated with headcount reductions and stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plans.
- Representsnoncashamortizationofintangibleassets.
- During the first quarter of fiscal 2025, we entered into a settlement agreement resulting in a payment of approximately $1.5 million which resolved certain legal matters. For the three months ended June 30, 2024, approximately $0.7 million was recorded in general and administrative expenses and the remaining $0.8 millionwasincurred ina priorperiod thatis notpresented in the consolidated statements of operations.
- During fiscal 2025, Commvault incurred costs related to the acquisitions of Appranix, Inc. and Clumio, Inc., including legal, accounting and advisory services. Management believes, when used as a supplement to GAAP results, that the exclusion of these costs will help investors and financial analysts understand Commvault’soperating results and underlying operational trends as compared to other periods.
- Representsthechangeintheestimatedfairvalueofthecontingentconsiderationarrangementrelatedto the acquisition of Appranix, Inc.
- During the first quarter of fiscal 2026, we finalized the sale of our corporate headquarters and entered into a lease for a portion of the premises. These noncash charges represent accounting adjustments for a $1.3 million loss associated with the related lease terms and an $0.8 million adjustment to reflect the final sale priceof theassetsresultingin anet chargeof $0.5 million recordedingeneralandadministrativeexpense on the consolidated statements of operations.
- The provision for income taxes is adjusted to reflect Commvault’s estimated non-GAAP effective tax rate of 24%.
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