Commvault Net Income Nearly Doubles To $29.1 Million As Subscription Revenue Climbs 21%
The data-protection software maker also moved the midpoint of its full-year subscription ARR guidance to $1,210 million.
Commvault, which sells software that protects corporate data and restores it after cyberattacks and outages, said net income for its fiscal second quarter rose to $29.1 million, or $0.69 per diluted share, from $14.7 million, or $0.33, a year earlier. Subscription revenue climbed 21% to $269 million in the quarter ended September 30, the company reported Tuesday.
Subscriptions carry the quarter
Total revenue reached $312.4 million, up 13%. Within subscriptions, SaaS revenue (software hosted in the cloud) rose 33% to $106 million, while perpetual license revenue fell 40% to $7.2 million.
Subscription annualized recurring revenue, the yearly value of active contracts, reached $1,104 million, up 20%. On a constant-currency basis it was $1,107 million, with net new subscription ARR of $51 million in the quarter. Subscription net dollar retention, which tracks how much recurring revenue from existing customers is kept after expansion, churn and downgrades, was 113%.
Income from operations was $30.4 million, a 9.7% operating margin. On an adjusted basis, operating income was $68.3 million, a 21.9% margin.
Cash, buybacks and a bigger tax bill
Operating cash flow was $75 million and free cash flow $71 million. Cash stood at $897 million on September 30, and the company repurchased about 906,000 shares for $119 million over the six months.
Income tax expense was $9.6 million, against $370,000 a year earlier, so pretax income of $38.8 million, up from $15.1 million, grew faster than net income.
Guidance for the rest of the year
For the third quarter, Commvault guided subscription revenue to $293 million to $297 million and an adjusted operating margin of 20.5% to 21.0%.
For the full year, it gave updated guidance of $1,127 million to $1,133 million in subscription revenue, subscription ARR of $1,205 million to $1,215 million, an adjusted operating margin of 21.0% to 21.5%, and free cash flow of $255 million to $265 million. The ARR midpoint moves to $1,210 million from $1,205 million: a $3 million currency drag and an $8 million adjustment for the revised outlook.
CEO Sanjay Mirchandani said enterprises are turning to Commvault "to stay resilient as they navigate more data, more identities, and greater complexity." Management discussed the results on a call at 8:30 a.m. Eastern Tuesday.
The company's full-year free cash flow guidance of $255 million to $265 million compares with $122 million generated in the first six months.
Sources
- 8-K Filing — COMMVAULT SYSTEMS INC (CVLT) — SEC EDGAR
- Exhibit q2fy27pressrelease.htm — COMMVAULT SYSTEMS INC 8-K exhibit — SEC EDGAR
- Commvault Announces Second Quarter Fiscal 2027 Financial Results — prnewswire.com
