COMMVAULT SYSTEMS INC Q4 FY2025 earnings call

• Sanjay highlighted record Q4 and full fiscal year 2025 results, with total revenue up 23% to $275M, subscription revenue up 45% to $173M, total ARR up 21% to $930M, and SaaS ARR up 68% to $281M. • Fiscal year 2025 was pivotal with reimagined resiliency for a cloud-first world, doubled innovation/execution, and positioned as a growth company. Key innovations included Clean Room, Active Directory forest level recovery, Cloud Rewind, etc. • Extended partner ecosystem with integrations like Akamai, Dithera, etc. Integrated acquisitions to expand platform. Reignited LAN business growth, added nearly 3,000 subscription customers. Achieved rule of 40 at 41 for the full year. • Growth drivers: cyber resilience tailwinds, cloud-first continuous business approach, execution with partner ecosystem. Specific examples: Active Directory forest level recovery speeds up recovery; Cloud Rewind helps rebuild cloud-native apps post-cyberattack; Commvault Backtrack aids in rapid recovery of AI data. Partner integrations with Hitachi, Pure, HPE, Kyndryl for customer wins.

Total revenue increased 23% to $275 million. Subscription revenue grew 45% to $173 million. Total ARR improved 21% to $930 million, and SaaS ARR jumped 68% to $281 million. Subscription ARR now constitutes 84% of total ARR, compared to 77% one year ago.

• Q1 2026: Subscription revenue expected $166M - $170M (35% YOY growth midpoint), total revenue $266M - $270M (19% YOY growth midpoint). Q1 consolidated gross margins 81%-82%, non-GAAP EBIT margins ~21%. • FY 2026: Total ARR growth 16%-17%, subscription revenue $727M - $732M (24% YOY growth midpoint), total revenue $1.13B - $1.14B (14% YOY growth midpoint). Gross margins 81%-82%, non-GAAP EBIT margins ~21%, free cash flow $210M - $215M.

• Macro environment uncertainties and potential changes in demand trends.

Q: Can you talk about the macro, customer thinking on cyber resilience, sales cycles, and close rates?

A: Sanjay said cyber resilience remains a priority, no dramatic change from assumptions; Jen noted guidance is a balance of prudence and internal execution.

Q: How much has the Commvault acquisition contributed and momentum?

A: Jen said Commvault integrated fully, no specific guidance but ~100 bips impact on numbers; Sanjay highlighted Commvault's capabilities for large datasets and AI applications.

Q: Thoughts on competitive landscape, LLM, and Commvault's role?

A: Sanjay said Commvault is a good source of truth, application aware, and could play a role in LLM-related areas.

Q: ARR guide parameters, seasonality, and sales productivity?

A: Jen said typical seasonality with $30-$35M quarterly net new ARR, and guidance implies confidence in model durability.

Q: International growth, EMEA/APAC, and DORA tailwinds?

A: Jen said balanced growth across regions, EMEA had strong quarter; Sanjay noted DORA compliance is an ongoing process.

Q: Growth on international arena, durability, and DORA tailwinds?

A: Jen said balanced growth expected; Sanjay noted DORA is an ongoing process.

Q: SaaS growth, cross-sell vs upsell, and term subscription strength?

A: Jen said SaaS net dollar retention at 127%, cross-sell of cyber products like Clean Room, etc.; Sanjay emphasized Commvault's hybrid multi-cloud approach driving term license strength.