COMMVAULT SYSTEMS INC SEC 10-Q Report

Commvault Systems Inc., a leading provider of data protection and information management solutions, has released its Form 10-Q report for the third quarter. The report highlights robust financial performance driven by substantial growth in subscription-based revenues and SaaS offerings. The company continues to focus on expanding its cloud-based solutions and strengthening its distribution channels to sustain long-term growth.

Financial Highlights

• Total Revenues: $276.2 million, an 18% increase year-over-year, driven by increases in both term-based license revenue and SaaS revenue.
• Gross Margin: 80%, a slight decrease from 82% in the prior year, primarily due to increased costs associated with SaaS offerings.

Business Highlights

• Revenue Segments: Commvault generates revenue through subscription arrangements, including term-based software licenses and SaaS. Subscription ARR grew by 30% year-over-year, reflecting both new customer acquisition and expansion within the existing customer base.
• Geographical Performance: The Americas region, including the United States, Canada, and Latin America, accounted for 61% of total revenues, with a 16% year-over-year increase. The International region, comprising Europe, Middle East, Africa, Australia, India, Southeast Asia, and China, represented 39% of total revenues, with a 22% year-over-year increase.
• SaaS Growth: SaaS ARR increased by 56% year-over-year, indicating strong customer adoption and expansion within cloud-based offerings. This growth is critical to sustaining long-term growth and aligning with customer preferences for cloud-delivered solutions.
• Sales Channels: Approximately 90% of total revenues were generated through indirect distribution channels, with Partner A and Partner B accounting for significant portions of total revenues. The company plans to continue investing in both channel relationships and direct sales force.
• Customer Support: Customer support revenue, tied to software products, increased by 3% year-over-year, driven by term-based license arrangements. Support contracts are typically sold as a percentage of net software purchases.
• Operational Focus: Commvault remains focused on selling subscription arrangements through both term-based software licenses and SaaS offerings, with a strategic emphasis on recurring revenue streams.
• Future Outlook: The company expects continued growth in subscription arrangements and plans to invest in channel relationships and direct sales force. The failure of distribution channels or sales force could adversely affect revenues.
• Foreign Currency Impact: Sales outside the United States accounted for 45% of total revenues. Changes in foreign exchange rates impacted revenues, operating expenses, and income from non-U.S. operations.
• Restructuring Plan: A restructuring plan was initiated to optimize the Business Technology organization, with expected completion in fiscal 2026. The plan includes workforce realignment and technology transitions, with associated risks of unexpected costs and potential impacts on employee morale.

SEC Filing: COMMVAULT SYSTEMS INC [ CVLT ] - 10-Q - Oct. 29, 2025