Commvault Announces Fiscal 2025 Second Quarter Financial Results

Rhea-AI Summary

Commvault (CVLT) reported strong fiscal Q2 2025 results with total revenues of $233.3 million, up 16% year over year. The company's subscription revenue increased 37% to $134.0 million, while total ARR grew 20% to $853 million. Operating income reached $15.0 million with a 6.4% margin. The company repurchased $51.9 million in shares and generated $55.6 million in operating cash flow. Looking ahead, Commvault raised its fiscal 2025 guidance, expecting total revenues between $952-957 million and subscription revenue of $552-557 million, with total ARR projected to grow 18% year over year.

Positive

• Revenue growth of 16% YoY to $233.3 million
• Subscription revenue increased 37% YoY to $134.0 million
• Total ARR grew 20% to $853 million
• Strong free cash flow of $53.7 million
• Raised full-year guidance for fiscal 2025
• Fourth consecutive quarter of double-digit revenue growth

Negative

• Operating margin of 6.4% shows room for improvement

Insights

Financial Analyst

The Q2 FY25 results demonstrate robust financial performance with significant growth metrics across key areas. Total revenue of $233.3 million showing 16% YoY growth, coupled with ARR reaching $853 million at 20% growth, indicates strong market momentum. The subscription-based model is particularly impressive, with 37% revenue growth and 30% ARR growth, showing successful business model transformation.

The healthy operating margin of 20.5% (non-GAAP) and strong free cash flow of $53.7 million demonstrate operational efficiency. The company's confidence in raising full-year guidance, projecting total revenues between $952-957 million and maintaining 20-21% operating margins, suggests sustainable growth trajectory. The recent Clumio acquisition and continued share repurchases ($51.9 million) reflect strategic capital deployment for both growth and shareholder returns.

TINTON FALLS, N.J., Oct. 29, 2024 /PRNewswire/ -- Commvault (Nasdaq: CVLT) today announced its financial results for the fiscal second quarter ended September 30, 2024. 

"Keeping customers resilient and their businesses continuous has never been more critical than it is today," said Sanjay Mirchandani, President and CEO. "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."

Notes are contained at the end of this Press Release.

Fiscal 2025 Second Quarter Highlights -

• Total revenues were $233.3 million, up 16% year over year
• Total annualized recurring revenue (ARR)¹ grew to $853 million, up 20% year over year
• Subscription revenue was $134.0 million, up 37% year over year
• Subscription ARR¹ grew to $687 million, up 30% year over year
• Income from operations (EBIT) was $15.0 million, an operating margin of 6.4%
• Non-GAAP EBIT² was $47.7 million, an operating margin of 20.5%
• Operating cash flow was $55.6 million, with free cash flow² of $53.7 million
• Second quarter share repurchases were $51.9 million, or approximately 363,000 shares of common stock

Financial Outlook for Third Quarter and Full Year Fiscal 2025³ -

We are providing the following guidance for the third quarter of fiscal year 2025:

• Total revenues are expected to be between $243 million and $247 million
• Subscription revenue is expected to be between $143 million and $147 million
• Non-GAAP operating margin² is expected to be between 20% and 21%

We are providing the following updated guidance for the full fiscal year 2025:

• Total revenues are expected to be between $952 million and $957 million
• Total ARR¹ is expected to grow 18% year over year
• Subscription revenue is expected to be between $552 million and $557 million
• Subscription ARR¹ is expected to grow between 26% and 28% year over year
• Non-GAAP operating margin² is expected to be between 20% and 21%
• Free cash flow² is expected to be at least $200 million

The above statements are based on the incorporation of actual second quarter results, current targets and the acquisition of Clumio, Inc. which closed on October 1, 2024. These statements are forward looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.

Conference Call Information
Commvault will host a conference call today, October 29, 2024 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.

About Commvault
Commvault (NASDAQ: CVLT) is the gold standard in cyber resilience, helping more than 100,000 organizations keep data safe and businesses resilient and moving forward. Today, Commvault offers the only cyber resilience platform that combines the best data security and rapid recovery at enterprise scale across any workload, anywhere—at the lowest TCO.

Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.

Revenue Overview
($ in thousands)

	Q2'24		Q3'24		Q4'24		Q1'25		Q2'25
Revenue Summary:
Subscription	$          97,757		$        114,247		$        119,873		$        124,080		$        134,038
Perpetual license	14,388		14,874		15,196		13,736		10,522
Customer support	77,019		76,812		77,025		76,288		77,688
Other services	11,833		10,875		11,198		10,568		11,030
Total revenues	$        200,997		$        216,808		$        223,292		$        224,672		$        233,278
	Q2'24		Q3'24		Q4'24		Q1'25		Q2'25
Y/Y Growth:
Subscription	25 %		31 %		27 %		28 %		37 %
Perpetual license	(27) %		(25) %		(13) %		4 %		(27) %
Customer support	(1) %		(1) %		— %		(1) %		1 %
Other services	(1) %		6 %		(20) %		(2) %		(7) %
Total revenues	7 %		11 %		10 %		13 %		16 %

Constant Currency
($ in thousands)

The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

	Subscription		Perpetual license		Customer support		Other services		Total
Q2'24 Revenue as Reported (GAAP)	$         97,757		$         14,388		$         77,019		$         11,833		$       200,997
Q2'25 Revenue as Reported (GAAP)	$       134,038		$         10,522		$         77,688		$         11,030		$       233,278
% Change Y/Y (GAAP)	37 %		(27) %		1 %		(7) %		16 %
Constant Currency Impact	$           (924)		$           (112)		$           (408)		$           (307)		$        (1,751)
% Change Y/Y Constant Currency	36 %		(28) %		— %		(9) %		15 %

Revenues by Geography
($ in thousands)

Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China.

	Q2'24			Q3'24			Q4'24			Q1'25			Q2'25
	Revenue	Y/Y Growth		Revenue	Y/Y Growth		Revenue	Y/Y Growth		Revenue	Y/Y Growth		Revenue	Y/Y Growth
Americas	$  120,300	4 %		$  125,052	16 %		$  131,069	7 %		$  138,725	14 %		$  144,408	20 %
International	80,697	12 %		91,756	6 %		92,223	14 %		85,947	13 %		88,870	10 %
Total revenues	$  200,997	7 %		$  216,808	11 %		$  223,292	10 %		$  224,672	13 %		$  233,278	16 %

Total ARR and Subscription ARR¹
($ in thousands)

	Q2'24		Q3'24		Q4'24		Q1'25		Q2'25
Total ARR1	$           711,462		$           752,480		$           769,946		$           802,709		$           853,265
Subscription ARR1	$           529,590		$           571,125		$           596,667		$           635,910		$           687,050

Income from Operations (EBIT)

• Income from operations (EBIT) was $15.0 million, an operating margin of 6.4%
• Non-GAAP EBIT² was $47.7 million, an operating margin of 20.5%

GAAP and Non-GAAP Net Income²

• GAAP net income was $15.6 million, or $0.35 per diluted share
• Non-GAAP net income² was $37.6 million, or $0.83 per diluted share

Cash Summary and Share Repurchases

• Cash flow from operations was $55.6 million in the second quarter
• As of September 30, 2024, ending cash and cash equivalents was approximately $303.1 million
• During the second quarter, Commvault repurchased $51.9 million, or approximately 363,000 shares, of common stock at an average share price of approximately $143.09 per share

 

Table I
Commvault Systems, Inc.
Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)
	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Revenues:
Subscription	$        134,038		$          97,757		$        258,118		$        195,047
Perpetual license	10,522		14,388		24,258		27,543
Customer support	77,688		77,019		153,976		153,934
Other services	11,030		11,833		21,598		22,623
Total revenues	233,278		200,997		457,950		399,147
Cost of revenues:
Subscription	19,532		14,643		37,072		27,006
Perpetual license	441		642		778		1,054
Customer support	15,311		14,898		29,574		29,855
Other services	7,578		7,670		15,226		15,488
Total cost of revenues	42,862		37,853		82,650		73,403
Gross margin	190,416		163,144		375,300		325,744
Operating expenses:
Sales and marketing	101,947		84,712		197,897		168,839
Research and development	33,839		31,261		66,943		62,692
General and administrative	34,173		28,002		64,968		54,961
Restructuring	566		—		5,245		—
Depreciation and amortization	2,013		1,535		3,941		3,138
Impairment charges	2,910		—		2,910		—
Total operating expenses	175,448		145,510		341,904		289,630
Income from operations	14,968		17,634		33,396		36,114
Interest income	1,732		1,369		3,534		2,149
Interest expense	(105)		(112)		(209)		(208)
Other income (expense), net	65		(154)		593		187
Income before income taxes	16,660		18,737		37,314		38,242
Income tax expense	1,095		5,720		3,222		12,596
Net income	$          15,565		$          13,017		$          34,092		$          25,646
Net income per common share:
Basic	$               0.36		$               0.30		$               0.78		$               0.58
Diluted	$               0.35		$               0.29		$               0.76		$               0.57
Weighted average common shares outstanding:
Basic	43,770		43,949		43,724		44,003
Diluted	45,114		44,903		45,095		45,010

 

Table II
Commvault Systems, Inc.
Condensed Consolidated Balance Sheets (In thousands) (Unaudited)
		September 30,		March 31,
		2024		2024
ASSETS
Current assets:
Cash and cash equivalents		$              303,071		$              312,754
Trade accounts receivable, net		194,879		222,683
Assets held for sale		34,770		38,680
Other current assets		30,235		21,009
Total current assets		562,955		595,126
Deferred tax assets, net		119,969		111,181
Property and equipment, net		8,282		7,961
Operating lease assets		11,939		10,545
Deferred commissions cost		65,927		62,837
Intangible assets, net		5,196		1,042
Goodwill		150,072		127,780
Other assets		34,136		27,441
Total assets		$              958,476		$              943,913
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$                        92		$                      299
Accrued liabilities		107,645		117,244
Current portion of operating lease liabilities		5,313		4,935
Deferred revenue		355,267		362,450
Total current liabilities		468,317		484,928
Deferred revenue, less current portion		198,090		168,472
Deferred tax liabilities		3,396		1,717
Long-term operating lease liabilities		7,192		7,155
Other liabilities		3,693		3,556
Total stockholders' equity		277,788		278,085
Total liabilities and stockholders' equity		$              958,476		$              943,913

 

Table III
Commvault Systems, Inc.
Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Cash flows from operating activities
Net income	$     15,565		$  13,017		$     34,092		$     25,646
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,042		1,564		3,999		3,196
Noncash stock-based compensation	26,403		23,615		52,807		47,339
Noncash change in fair value of equity securities	(65)		154		(135)		(187)
Noncash impairment charges	2,910		—		2,910		—
Noncash operating lease expense	1,369		1,356		2,948		2,591
Deferred income taxes	(3,689)		—		(8,483)		—
Amortization of deferred commissions cost	8,019		6,430		15,477		12,749
Changes in operating assets and liabilities:
Trade accounts receivable, net	3,432		(19,812)		23,113		8,245
Operating lease liabilities	(1,671)		(1,363)		(3,973)		(2,526)
Other current assets and Other assets	(2,139)		(2,439)		(4,342)		(3,832)
Deferred commissions cost	(9,151)		(6,961)		(17,420)		(12,561)
Accounts payable	(334)		(146)		(205)		32
Accrued liabilities	11,179		15,567		(11,832)		(3,963)
Deferred revenue	2,392		8,959		11,830		1,746
Other liabilities	(673)		396		(505)		899
Net cash provided by operating activities	55,589		40,337		100,281		79,374
Cash flows from investing activities
Purchase of property and equipment	(1,848)		(266)		(2,711)		(1,413)
Purchase of equity securities	(108)		(260)		(581)		(572)
Business combination, net of cash acquired	—		—		(21,000)		—
Net cash used in investing activities	(1,956)		(526)		(24,292)		(1,985)
Cash flows from financing activities
Repurchase of common stock	(51,903)		(31,327)		(103,295)		(82,357)
Proceeds from stock-based compensation plans	5,760		5,167		11,100		6,368
Net cash used in financing activities	(46,143)		(26,160)		(92,195)		(75,989)
Effects of exchange rate — changes in cash	7,710		(4,953)		6,523		(5,891)
Net increase (decrease) in cash and cash equivalents	15,200		8,698		(9,683)		(4,491)
Cash and cash equivalents at beginning of period	287,871		274,589		312,754		287,778
Cash and cash equivalents at end of period	$   303,071		$  283,287		$   303,071		$   283,287
Supplemental disclosures of noncash activities
Issuance of common stock for business combination	$              —		$           —		$        4,900		$              —
Operating lease liabilities arising from obtaining right-of-use assets	$        2,499		$     3,666		$        4,467		$        4,695

 

Table IV
Commvault Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures  (In thousands, except per share data) (Unaudited)
	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Non-GAAP financial measures and reconciliation:
GAAP income from operations	$   14,968		$   17,634		$   33,396		$   36,114
Noncash stock-based compensation4	26,223		23,615		48,619		47,339
FICA and payroll tax expense related to stock-based compensation5	772		471		2,135		1,485
Restructuring6	566		—		5,245		—
Amortization of intangible assets7	573		312		1,146		626
Litigation settlement8	—		—		675		—
Business combination costs9	1,736		—		1,925		—
Noncash impairment charges10	2,910		—		2,910		—
Non-GAAP income from operations	$   47,748		$   42,032		$   96,051		$   85,564
GAAP net income	$   15,565		$   13,017		$   34,092		$   25,646
Noncash stock-based compensation4	26,223		23,615		48,619		47,339
FICA and payroll tax expense related to stock-based compensation5	772		471		2,135		1,485
Restructuring6	566		—		5,245		—
Amortization of intangible assets7	573		312		1,146		626
Litigation settlement8	—		—		675		—
Business combination costs9	1,736		—		1,925		—
Noncash impairment charges10	2,910		—		2,910		—
Non-GAAP provision for income taxes adjustment11	(10,770)		(5,927)		(20,770)		(11,081)
Non-GAAP net income	$   37,575		$   31,488		$   75,977		$   64,015
GAAP diluted earnings per share	$       0.35		$       0.29		$       0.76		$       0.57
Noncash stock-based compensation4	0.58		0.53		1.08		1.05
FICA and payroll tax expense related to stock-based compensation5	0.02		0.01		0.05		0.03
Restructuring6	0.01		—		0.12		—
Amortization of intangible assets7	0.01		0.01		0.03		0.01
Litigation settlement8	—		—		0.01		—
Business combination costs9	0.04		—		0.04		—
Noncash impairment charges10	0.06		—		0.06		—
Non-GAAP provision for income taxes adjustment11	(0.24)		(0.14)		(0.47)		(0.24)
Non-GAAP diluted earnings per share	$       0.83		$       0.70		$       1.68		$       1.42
GAAP diluted weighted average shares outstanding	45,114		44,903		45,095		45,010

 

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Non-GAAP free cash flow reconciliation:
GAAP cash provided by operating activities	$   55,589		$   40,337		$ 100,281		$   79,374
Purchase of property and equipment	(1,848)		(266)		(2,711)		(1,413)
Non-GAAP free cash flow	$   53,741		$   40,071		$   97,570		$   77,961

Use of Non-GAAP Financial Measures
Commvault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP income from operations margin, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP free cash flow, annualized recurring revenue (ARR) and subscription ARR. This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. In addition, Commvault believes these non-GAAP operating measures are useful to investors, when used as a supplement to GAAP financial measures, in evaluating Commvault's ongoing operational performance. Commvault believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault's industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues on a constant currency basis. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.

All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.

Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees exercise in-the-money stock options or vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, litigation settlement, business combination costs, and noncash impairment charges from its non-GAAP results. These expenses are further discussed in Table IV. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault's core operating results over multiple periods.  When evaluating the performance of Commvault's operating results and developing short- and long-term plans, Commvault does not consider such expenses. 

Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on stock option exercises and vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault's operating results and those of other companies.

There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin.  The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault's operating results.  In addition, noncash stock-based compensation is an important part of Commvault's employees' compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):  

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Cost of revenues	$             1,374		$             1,599		$             2,955		$          3,289
Sales and marketing	11,631		9,941		21,117		19,645
Research and development	5,555		5,385		10,719		10,732
General and administrative	7,663		6,690		13,828		13,673
Stock-based compensation expense	$          26,223		$          23,615		$          48,619		$        47,339

The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in Note 6.

The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault's management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP. 

Non-GAAP net income and non-GAAP diluted earnings per share (EPS).  In addition to the adjustments discussed in non-GAAP income from operations, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%. Beginning in fiscal 2025, Commvault lowered its estimated non-GAAP effective tax rate from 27% to 24%.

Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income.  For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.

Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP net income and non-GAAP diluted EPS.

Non-GAAP free cash flow.  Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP free cash flow.

Forward-looking non-GAAP measures. In this press release, Commvault presents certain forward-looking non-GAAP metrics. Commvault cannot provide a reconciliation to the comparable GAAP metric without unreasonable efforts, as certain financial information, the probable significance of which may be material, is not available and cannot be reasonably estimated.

Notes

1. Annualized recurring revenue (ARR) is defined as the annualized recurring value of all active contracts at the end of a reporting period.  It includes the following contract types: subscription (including term license contracts, SaaS and utility software), maintenance contracts related to perpetual licenses, other extended maintenance contracts (enterprise support), and managed services. It excludes any element of the arrangement that is not expected to recur, primarily perpetual licenses and most professional services. Subscription ARR includes only term license contracts, SaaS and utility software arrangements. Contracts are annualized by dividing the total contract value by the number of days in the contract term, then multiplying by 365.
   
   ARR should be viewed independently of GAAP revenue, deferred revenue and unbilled revenue and is not intended to be combined with or to replace those items. ARR is not a forecast of future revenue. Management believes that reviewing this metric, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault's recurring revenue streams presented on an annualized basis.
   
   
2. A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included in this press release. An explanation of these measures is also included under the heading "Use of Non-GAAP Financial Measures."
   
   
3. Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See "Use of Non-GAAP Financial Measures" for additional explanation.
   
   
4. Represents noncash stock-based compensation charges associated with restricted stock units granted and our Employee Stock Purchase Plan, exclusive of stock-based compensation expense related to Commvault's restructuring activities described below in Note 6.
   
   
5. Represents additional FICA and related payroll tax expenses incurred by Commvault when employees exercise in-the-money stock options or vest in restricted stock awards.
   
   
6. These restructuring charges relate primarily to severance and related costs associated with headcount reductions and stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan.
   
   
7. Represents noncash amortization of intangible assets.
   
   
8. During the first quarter of fiscal 2025, we entered into a settlement agreement resulting in a payment of approximately $1.5 million which resolved certain legal matters. Approximately $0.7 million was recorded in general and administrative expenses for the six months ended September 30, 2024, and the remaining $0.8 million was incurred in a prior period that is not presented in the consolidated statements of operations.
   
   
9. During the first half of fiscal 2025, Commvault incurred costs related to the acquisitions of Appranix, Inc. and Clumio, Inc., including legal, accounting and advisory services. Management believes, when used as a supplement to GAAP results, that the exclusion of these costs will help investors and financial analysts understand Commvault's operating results and underlying operational trends as compared to other periods.
   
   
10. Represents noncash impairment charges of assets held for sale.
    
    
11. The provision for income taxes is adjusted to reflect Commvault's estimated non-GAAP effective tax rate of 24% for fiscal 2025, and 27% for fiscal 2024. Beginning in fiscal 2025, Commvault lowered its estimated non-GAAP effective tax rate from 27% to 24%. Commvault believes that a 24% rate more closely aligns with its effective tax rate expectations over the next few years.

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SOURCE COMMVAULT

FAQ

What was Commvault's (CVLT) revenue in Q2 2025?

Commvault reported total revenues of $233.3 million in Q2 2025, representing a 16% increase year over year.

How much did Commvault's (CVLT) subscription revenue grow in Q2 2025?

Commvault's subscription revenue grew 37% year over year to $134.0 million in Q2 2025.

What is Commvault's (CVLT) revenue guidance for fiscal 2025?

Commvault expects total revenues between $952 million and $957 million for fiscal 2025.

How much stock did Commvault (CVLT) repurchase in Q2 2025?

Commvault repurchased approximately 363,000 shares of common stock for $51.9 million in Q2 2025.