Commvault reports 16% rise in Q2 revenue, boosts outlook

Commvault has reported its financial performance for the second quarter of fiscal year 2025, showing notable growth in several key areas.

Sanjay Mirchandani, President and CEO of Commvault, stated, "Keeping customers resilient and their businesses continuous has never been more critical than it is today. Our strong execution and increasing demand for our innovative Commvault Cloud platform has not only resulted in our fourth consecutive quarter of double-digit revenue growth, but it has given us the confidence to once again raise our outlook for the full fiscal year."

The company recorded total revenues of USD $233.3 million, marking a 16% increase compared to the same period last year.

Commvault's total annualised recurring revenue (ARR) saw a rise of 20% year over year, reaching USD $853 million.

Subscription revenue for the quarter amounted to USD $134.0 million, reflecting a 37% increase from the previous year's quarter.

Subscription ARR grew by 30% year over year to USD $687 million.

Income from operations, or EBIT, stood at USD $15.0 million, resulting in an operating margin of 6.4%. Non-GAAP EBIT was USD $47.7 million, corresponding to an operating margin of 20.5%.

Operating cash flow during the second quarter was USD $55.6 million, with free cash flow recorded at USD $53.7 million.

During the second quarter, Commvault repurchased shares worth USD $51.9 million, which equates to approximately 363,000 shares of common stock.

Looking ahead to the third quarter of fiscal year 2025, Commvault provided guidance with an expectation that total revenues will range between USD $243 million and USD $247 million.

The company anticipates subscription revenue to fall between USD $143 million and USD $147 million for the next quarter.

The non-GAAP operating margin is projected to be between 20% and 21% for the third quarter.

For the full fiscal year 2025, Commvault has updated its guidance, projecting total revenues to be between USD $952 million and USD $957 million.

The company expects total ARR to grow 18% year over year.

Subscription revenue for the full year is anticipated to range from USD $552 million to USD $557 million.

Subscription ARR is expected to grow between 26% and 28% compared to the prior year.

The non-GAAP operating margin for the entire fiscal year is projected to be in the range of 20% to 21%.

Free cash flow for the fiscal year is forecasted to be at least USD $200 million.