Data protector Commvault sold record amounts of its products and services this quarter, as customers concerned themselves with a general rise in cyberattacks.
Revenues in the quarter ended March 31 were $275 million, 23 percent upon the year-ago quarter, with a GAAP profit of $30.9 million. This is 76 percent lower than a year ago, which was artificially boosted by a $103.1 million income tax benefit. Excluding that, profits were $23 million, which would make the current Q4 profit 34 percent higher.
Full year revenues were $996 million, up 19 percent Y/Y, with a $76 million profit compared to fy2024’s $169 million profit. Absent the previously mentioned tax break the underlying fy2024 profit was $65.9 million with fy2025 profit 15 percent higher.
CEO Sanjay Mirchandani talked about “another record breaking Q4 and full fiscal year 2025,” and said: “Fiscal year 2025 was a pivotal year. We reimagined resiliency for a cloud-first world. We doubled down on innovation and execution and we firmly positioned ourselves as a growth company.”
He added: ”We reignited growth in our land business, adding nearly 3,000 subscription customers. We drove a double-digit improvement in sales productivity and on a Rule of 40* basis, we achieved 41 for the full fiscal year. As we begin fiscal year 2026, Commvault has never been better positioned to succeed and win.”
The growth drivers were secular cyber-resilience tailwinds, business continuity for public cloud customers, and better sales execution both by Commvault and its partners. The company’s focus on cyber-attack recovery as well as cyber-attack defences is paying off, as is its intent to sell multiple products to its customers.
Financial summary:
- Subscription revenues: $173 million, up 45%
- Subscription ARR: $780 million, up 31%
- Total ARR: $930 million, up 21%
- SaaS ARR: $281 million, up 68%
- SaaS Net Dollar Retention Rate: 127%
- Gross margin: 81.5 percent – down from year-ago 82 percent
- Operating cash flow: $77 million vs prior quarter’s $30.1 million
- Free cash flow: $76 million vs prior quarters $29.9 million
Its large customer base grew 31 percent to 12,200.
Commvault’s Q4 outlook was for revenues of $262 million ± $2 million, a 17.3 percent year-over-year rise at the midpoint, and it beat that. This is the fourth successive quarter of rising revenues at Commvault:
Its Y/Y revenue growth rate is accelerating, this being the fifth such quarter in a row:
William Blair analyst Jason Ader commented: “[This] was the highest quarterly year-over-year revenue growth for Commvault since fiscal 2013. Fourth-quarter outperformance was attributed to balanced geographic performance, increasing contribution from new products (AirGap Protect, ThreatScan, Cleanroom, Cloud Rewind, Clumio, etc.), strong new customer growth (multiple lands in financial services and healthcare), and robust core business momentum (renewals/expansions).”
Next quarter’s revenues are guided to be $268 ± $2 million, a 19.3 percent increase at the mid-point. Total fy2026 revenue is expected to range from $1.13 billion to $1.14 billion, an increase of 14 percent at the midpoint. The cyber resilience and recovery market should continue its growth.
* Bootnote
The “Rule of 40” is a principle that a SaaS company’s combined revenue growth rate and profit margin should equal or exceed 40 percent.
