Commvault Reports 21% Revenue Growth to $262.6 Million in Q3 Fiscal 2025

Commvault Systems, Inc. reported a significant increase in its financial performance for the third quarter of fiscal 2025, with total revenues reaching $262.6 million, a 21% increase from $216.8 million in the same period last year. The growth was primarily driven by a 39% rise in subscription revenue, which amounted to $158.3 million, up from $114.2 million. The company also saw a 10% increase in perpetual license revenue, totaling $16.4 million, while customer support revenue remained relatively stable at $77.1 million. For the nine months ended December 31, 2024, total revenues increased by 17% to $720.6 million compared to $616.0 million in the prior year.

Despite the revenue growth, Commvault's net income for the quarter decreased to $11.0 million, or $0.24 per diluted share, down from $17.1 million, or $0.38 per diluted share, in the same quarter of the previous year. The decline in profitability was attributed to increased operating expenses, which rose by 28% to $200.4 million, driven by higher sales and marketing costs, research and development expenses, and restructuring charges related to a customer success reorganization initiative. For the nine-month period, net income increased to $45.1 million from $42.8 million, reflecting a diluted earnings per share of $1.00 compared to $0.95 in the prior year.

Strategically, Commvault has made notable advancements, including the acquisition of Appranix, a cloud cyber resilience company, for $26.3 million, and the acquisition of Clumio, a data backup and recovery provider, for $44.9 million. These acquisitions are expected to enhance Commvault's product offerings in the cyber resiliency market. The company also reported an increase in its customer base, with subscription arrangements accounting for 60% of total revenues in the latest quarter, up from 53% a year earlier. The Americas region contributed 59% of total revenues, while international sales accounted for 41%.

Operationally, Commvault's total cash and cash equivalents stood at $243.6 million as of December 31, 2024, with no outstanding borrowings under its $100 million revolving credit facility. The company repurchased $135.2 million of its common stock during the nine-month period, reflecting its commitment to returning value to shareholders. Looking ahead, Commvault anticipates continued growth in subscription revenue, driven by the ongoing shift towards SaaS offerings and term-based licenses, while also managing the impacts of increased operational costs and restructuring efforts. The company expects to maintain its focus on enhancing customer satisfaction and operational efficiency as it navigates the evolving market landscape.