CVLT - Earnings call transcript Q3 2025

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Operator

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Commvault Third Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions]. After the speaker's remarks, there will be a question-and-answer session. Instructions]. [Operator like Investor conference Relations. now Melnyk, to turn of Head to would over the Michael I

You begin. may

Michael Melnyk

Good morning, and welcome to our earnings conference call.

I'd call statements risks, uncertainties begin, made such forward-looking plans we like assumptions. subject you All remind Before to are that and on prospects. today's Commvault's will about forward-looking and statements include future expectations, to statements

uncertainties the those Please any statements. that these materially the recent periodic most refer and release Commvault's of company's the the to cause these not update different discussion filed could cautionary statements. SEC with actual earnings risks be assume a language does to Commvault and contemplated in today's to forward-looking for reports obligation results in from

between the and can Commvault's Sanjay? our Thank our found turn measures call, website. his non-GAAP on results Mirchandani, be to over remarks. this I'll again CEO, And on now financial Sanjay us. reconciliation for for a it joining you presented GAAP During A are non-GAAP basis. opening

Sanjay Mirchandani

in growth ] of IT in our EBIT and and joining non-GAAP revenue CISOs grew Good Commvault. Total Total of to a volume, profitably, in SaaS Subscription million. Mike. margins leaders. an ARR expand rate. record-breaking acceleration data constant today's $XXX in revenue to not this growth resilience for currency We business impressive increased land and jumped mind you $XXX for XX% another was morning, and security constant ARR XX% million. uptick quarter Thanks, and where could strong we currency. QX did XX% call. thank improved recording [ cyber XX% for transaction XX.X%. At organic in a and time top be our saw more

is to the This believe that and strategically drivers. X by we look win. future, fundamental we growth As positioned to is bolstered succeed Commvault

been never has market promise. full resilience of dynamic more cyber the or First,

hybrid applications. attacks, data thrives. unrelenting To regulatory We cloud native on the customers where a AI-generated of growth positioned resilience and from this, a platform environment. enterprises cyber are to need capitalize spans This exponential face this. Today, unified multi-cloud and the is deal with shifting uniquely landscape that Commvault

cloud across Our and easily utilizing clouds, enterprise most major sets of secure and data cloud. And and all customers we're to Commvault innovating enables are data, given platform including vast ML multiple providers. customers across protect is AI amounts grade

we be During the Commvault customers. to quarter, Platform that announced Cloud will available AWS

address and We Azure [indiscernible] in Microsoft what cloud, innovating Google backup recovery challenges. This for to to also respect also and Workspace. advanced introduced recovery builds already capabilities cloud we're do critical today Oracle. With we on ways unique with

with the competition after technologies on. our includes and [ or customers steps on complex of doubled [ built stronger. next-generation address a recoveries latest most growth weeks Today, rebuilding Previously, even fast That's driver, anything has offering. They're out threats. recover within differentiated time. ago. our to We're market, need the from few solutions this applications. of innovating bolted not associated to take months. Today, than brings predictability resilience can in fundamental time-consuming and one we our Rewind and in, our to the do fraction ARR make is a would business Cloud Rewind], which offering and to level. the acquisition, the capability acquired platform example, more platform, ] demand months mission-critical, the [ For [ every unlike is us highly what second for the at a they cyber a since validating has security Apranixs game-changing offerings industry-leading our the become on cyberattack cloud-native this ] customers which this Creonix ] Cloud

practice [indiscernible] room], [ both uniquely And need the what This with not know Electric Cleanroom can and on be that love clean room you of enables plans truly recovery a recovery, we be clean can hit, automated customers able good their that they're often, at only platform. With time. [indiscernible]. you our example. [ provides. Emerson to a security Let sense ] an the predictable notice. and so commented for Cloud resilient to is ready core that if used ] plan recovery you be provide To can test our be offerings Commvault recovery that organizations me in resilient, but moment's bad give we [ they must times recovery be

of is threats, Active critical. to so with Microsoft users worldwide. offering authentication we've latest systems also absolutely it of customers essential, hundreds Directory. will Active Because access addressing target be just is become Directory a the primary announced controls, business that of cyber millions it's for This attacks. automated full In of and terms a recovery we and critical of

super and making In ways excited to even directory XX potential. year do come active is be since address that will the our a accurately." In business [ Customers Transportation simple the in be offering, our of a Active confidence else platform. if thrilled. and "CommVault's ] fact, research target with shows the of active entire directory any for will it data, to that about with peace in only launching Cloud, X this other capability this out Nevada active quickly able offers same in we will meaningful it And to with threat your this just even Department the hit provide Directory initial us said of so one spring, its are customers recover With transformative better, recover retro today for we ramp not our to we've mind and can to systems. cyberattacks, X Commvault seen plan on platform innovation uptick more protects spokesperson A adoption. capabilities, vendor. Nobody organizations this do we're we'll than more halt. Starting their able workloads but expanded

and massive the in sets at data SX. has that backtrack AI companies which [ Amazon of ML sets. talking to X revolutionary data provides recovery innovation customers way Many Another is ] Kumi are storing a expedite

So us even to at of version around depth recover to announced data growth leaders the resilience cyber to Reinvent platform. see more they ability a can billions a and in unveiled in our to These offerings specific We breadth coming quarters. driver. look expand workloads lead IT new that point [ new We just land and more opportunities. This specific bring and adoption is that alike, paramount. automation our ] fueling sharing third appeal while a backtrack to to the having of time. [indiscernible]. AWS and We sales rapidly revert the forward and brings to momentum net objects

dividends. globally. ecosystem in put our and quarters over an that business go-to-market with to we to motion scale the The partner strategy combined motion, go-to-market are strong Our place segment several our incredible last paying refine

partners message accelerating robust strong cyber Hitachi, In our enables us QX, transaction Our enhanced advances customer and we're pipeline and close with which verticals record are is from seeing QX, Alliance in and Central inflows like marketing extend in globally. customers, numbers number partner and HPE, volumes, record was force Dell. contributions velocity-based ecosystem, balanced growth. across from rates X of are and reach our we to augmented growing segments This And solid another resilience saw further by QX. These of contributions most airgap The combined These enterprise hyperscale data. Commvault's a customer's double-digit expansion resonating saw protect and hardware fast with large immutable our increased we protection for transactions included result increase provider to geographies, apps with on care in market the offering win a wins. that bigger a software Dell critical sales health productivity activity.

an than doubled. also We with working providers improved we the AI, momentum saw respect marketplace like offered proactively back compliance that transactions With And in ideal mind, detect the a pivotal to to partnership hyperscalers capabilities recovery Pure. to grid]. With bounce new we're and as actively we've points leading threats can critical with and number investments data in with strengthen These attack. integrations recovery prioritized AI more are identify to of resilience. capabilities anomalies, identify after [ AI

moment me the to a summarize for success. that us growth Let drivers ongoing financial take position

cases emergence market size increased growth of of has new and use the resilience cyber addressable accelerated shaped potential First, market. the the the the has opportunity and

dynamic in world, more this don't it. and cut hybrid complex cloud products Second, point

platform exceptional choice coverage flexible Cloud of Commvault Our consumption. depth offerings and customers with of and breadth offers

our partner ecosystem. growing is through critical flows execution layers This our across on extends focus all maintaining success. our to and relentless within Third, our organization

what has data. the Our modern accelerate multi-cloud matters performance further more prepare how from able disruption we proves ever, our year-to-date business an our [ most and to for attack. growth their all inevitable financial and business a your it's for following customers how it enabling up it's no to get enterprise, and now is about closing, Today, need that they than to to recover quickly investments just hybrid to This what is these In running for pay]. been longer they enough continuous profile. continue

our turn DiRico, it I'll Financial Jen Now to ourselves. to discuss over Jen? Officer, Chief

Jennifer DiRico

Sanjay. Thanks,

As and was excellent quarter, driven close by Sanjay execution noted, record strong another QX rates.

that positive I in bolters and the our by investments the all additions to results Our as product yielding our year-to-date. ] initiatives fantastic results, innovations are rate. in [ new quarter customer contribute growth growth-oriented demonstrated acceleration thank the and want organic this and to

SaaS increased year-over-year growth results continued QX from subscription on improved dozen increased volume XX% $XXX to our rise operating otherwise a year. Revenue over rates This of 'XX. and Please benefiting million, software from XX% The volume. SaaS by and in by a QX the XX%, for momentum specified. Total metrics, in update an transactions in million. more Now software FY unless I'll both basis transactions a $X increase compared and improvement revenue robust revenue. revenue all significant than included guidance subscription term to that in our over a compared resulted on discuss $XXX,XXX the followed prior wins growth by term driven from note XX% and are

[ Equinix, robust we addition, customers Center saw quarter, and Denis AXA, Medical Venderbilt large new [ landing University this Financial ] enterprise including In Services]. growth Bank in

vendor on in this ] their volume our large SaaS mission-critical we with also complex opportunity investments want journeys. to and Given environments. I the of We're of pleased small- medium-sized offerings around customers bear We Velocity serve as a our [ the on-premise, and fruit. sitting we of hybrid added have continue breadth with the note enterprises that grow to Motion increase our across cloud choice to record cloud this the hybrid platform, customers with in that number enterprises to welcome depth are and quarter. data

million. subscription the review licenses constant earnings to well acceleration million. the currency total $XXX This total and reaching contracts, our XX% includes ARR. of $XXX Now an On turning million as in a ARR On to ] over surpassing XX% XX% ARR currency XX%, basis, million, reflecting Clunie to organic in a currency grew constant XX,XXX continuing XX%, $XXX we XX%. Including [ customers, $XXX X,XXX to SaaS hyper trajectory. as accelerated increased SaaS grew of appendix added which and presentation ARR rate new SaaS QX SaaS [ ] ARR total quarterly by grew customers. growth XX%, includes ARR. accounting million, subscription constant ARR refer growth Please its increased to $XX bridge. Subscription which contributions for ARR, term-based over Plinio from basis, worldwide, contributed including X,XXX incremental customers customers, which our

to from and increased both existing multiproduct adoption continue We new benefit customers. among

REWIND, are REWIND [ that closed and we multinational resilience Airgap X-figure workforce directory cyber hybrid to few Protect, partnership HR added their Kubernetes extensive dollar vendors compliance XXX%, Commvault are leading brokers examples [ These as upsell and and to remains such at customers Cloud [ at offerings. we grading by the a management opportunities capabilities company trends sought of mission-critical for to of And with overall global retention in to infrastructure that our healthy ThreatWise SaaS top Directory, secure our and both A Cloud example, independent steady cloud-first with with newest from the platform cloud customer QX in resilience further solutions other point a scan X-figure chose of their risk Protect, journey. world. Existing expansion national continue deal SaaS Cloud announced our rate ] threat that enhanced transaction notable ARR bypassing analysis, active utilize bolster Active confidence a growth products just and cyber posture. accelerate a insurance ] group Airgap ]. technology a SHIFT For net cross-sell. expansion ] support driven products VMs their These and [ hybrid closed chose with and a infrastructure. a securely new we cloud to

quarter reflecting revenue, growth a onboarded to philosophy. the grew operating our in represented total accelerating continued with Gross include expenses Now from XX% and represented margins of with our higher our which ago. consistent also XX% were SaaS, [ [indiscernible] commission non-GAAP consistent I'll revenue associated total and costs versus consistent sales included high and prior flow, which record of our the our and to cash QX responsible London, margins investments to modest of and our ] ARR expenses prior reflect discuss prior accelerate which XX%, profitability QX acquisition, gross results. Shift with $XX came XX.X% XX% bonuses EBIT towards $XXX momentum, year mix XX% free of year. Non-GAAP on demonstrates in Cuneo EBIT commitment guidance. Operating range. million the guidance dilution margins million end just of X at employees shift

debt cash which million and previously purchase disclosed and no We Now moving the the with flow Puma]. reflects balance metrics. to sheet quarter of cash, $XXX ended in some key [

about We positions furthers deeper It potential towards integrating capitalize to the progress opportunities. to and our the AI-related made cloud go are Clio]. [ on ability us excited in

As material further we and tied our plan least flow cash XXX% We million $XXX million the flow by year. headwinds free continue was impacted tax at representing exchange our quarter year of stock flow in of repurchased depth of free free representing of XX% full foreign to technologies and In we the repurchase future, of through quarter. Fiscal platform. QX XXXX, income. payments invest made $XX flow. for we remain our December we for cash breadth that opportunistic in was full higher-than-projected to QX, pretax the cash of stock XX, the $XX XXX% fiscal year-to-date million repurchased still around free to cash

our year-to-date, for accelerating pipeline, our 'XX. combined pleased and raise QX strong fiscal year a our guidance once outlook demand again and fiscal for healthy with are to results customer Given we share

million of which This both software million. XX% of revenue, year-over-year fiscal the a represents the the subscription For QX, to licenses in we midpoint. range includes SaaS $XXX be expect and portion term-based to at growth $XXX

of XX%. $XXX we We expect XX% consolidated to $XXX million range gross million, total midpoint. revenue to these the revenue be the the range At at levels, of expect in margins be of to in with QX growth to XX%

We to of in expect margins to XX% range XX%. EBIT QX non-GAAP remain the

Our for QX projected share count million diluted fiscal is XX approximately shares.

fiscal We XX% fiscal year again total now outlook for raising ARR our XX once the We are full year-over-year. of XX% expect 'XX. to year growth

now the the in the range total expect XX% at be a of subscription now We with and and be million, fiscal to of revenue to XX% 'XX of of subscription in million, $XXX year-over-year. From accelerate XX% XX% increase growth term software year an to approximately SaaS. licenses increase both from strong ARR $XXX full range expect expect revenue at range to $XXX million million the perspective, to we to contribution revenue the We midpoint. midpoint $XXX in growing

flow to outlook. Moving EBIT updated year 'XX margin, full cash fiscal and our

be margins gross expect to to XX% continue We to XX%.

non-GAAP XX%. margins cash of a the perspective, to we year From to be expect $XXX to cash to free continue million expect free range flow of also in XX% $XXX full We flow million. EBIT

outlook were reflects Our more pronounced in QX headwinds to currency in foreign and that continue expected QX. revised

As on our FY our year-to-date performance reflect strong demonstrates I strategy working. is financial 'XX, that

message investments is is resilience off. our team paying executing cyber and resonating, are our Our how

the of to financial to plan. trending than achieve FY originally targets currently 'XX, shared, initial we ahead earlier we Looking our now and expect we forward targets are that those

investments have in be the 'XX. market be As The to and year-to-date. We we of cyber us noted, positioned choice to resilience are the in and Sanjay us. accelerate investing excited about have further outstanding couldn't to we more for making contributed our opportunity in front performance the revenue-driving initiatives growth-driving enterprise financial momentum our businesses committed remain FY these to provider of

operator will for I to Now questions. the the turn it line open back to

Operator

[Operator from of Instructions] Rakers line And our question Fargo. the comes first Wells Aaron with

Aaron Rakers

on Congrats guys. you quarter another out of solid

click sharp prior I'd these base. over SaaS a Jen, a seeing fairly seems guess, momentum XXX plus customer quarters. the bit to acceleration customers X the from double like X,XXX new your quarter on in like I So you're little a

unpack about you that can ] have can then you How did about contribution? And you more [ a Clumio SaaS little bit. today? than offering many of how progression one also, think a Maybe to that that And customers your look bit add little 'XX? talk we much fiscal as how into

Jennifer DiRico

much XXX we subscription remarked, growth our for rate. we remainder customers. acceleration the so number in as XXX rate. in -- I and run the Clunie], about we're added say Thanks were performance, about organic. plus customers say you all about question, of And from the or or the another that SaaS organic you come running of X,XXX Aaron. in so particular, the minus If really think of the would would proud [ to our I we overall are past

So we're that. really proud of

it addition, in products. number a second as of question then to And around relates your

of first X/X would the remains about cross-sell. upsell, It we're SaaS still all, really So X/X of NRR. proud say I

we're XX% of REWIND]. particular, have products. But However, lot I've past ] Rewind [ grew a new of Cloud around still SaaS pleased with have Directory, X shared products, [ our Xx in Cloud around was so of more Active in of the emerging fact acquisition. the opportunity, and that that from some customers time or I the or specifically we

and very existing a while into so have And us, for lot we we excited cross-sell early about of days it's the are potential to the believe very, opportunity base.

Aaron Rakers

question. final then And Yes. the

targets. ahead of what 'XX? you've as You were? context progress we what outlined previously Can fiscal look us your targets, 'XX into And your any the of mentioned fiscal remind tracking you just

Jennifer DiRico

Great question.

$X billion we that were end been by FY tracking 'XX. and the ARR that. ahead SaaS has of ARR shared of guidance our So million I previous $XXX

quarter, we adding past an on new that ARR growth shared ARR net think using to the quarter, quarter. organic on best added last This $XX I way million in a were constant is our net again basis. new I about $XX about currency think a average million we basis,

on best And think tracking so that's we're future. I about think way how to the the

Operator

from of next Eric Markets. KeyBanc question the line comes Our Heath with Capital

Eric Heath

So Sanjay, business. in your to of perspective Would acceleration maybe love on get the just a big question. picture this some

of mergers curious happening might it's whether the think is versus you how factors execution. from much internal be Just that do in marketplace, the better regulation external or acceleration

Sanjay Mirchandani

at thing more look them make it the one in day So and way day resilient. which I we is our is out, do we customers think for

to attack ability the kind the face Given in catastrophic recover situation. any of an or of

are -- protect going it we build So And Commvault predictable to increasing. any able They're what out is and our anywhere Cloud be continue recover able ransomware world cyber in down. a to are not platform, attacks, a that enables customers attacks multi-cloud to to be way. hybrid in workload we're actually doing very

open of So we're growth X closer platform getting our about over to past the tailwind, we're way the solving aligning efficiency, the our and definitely Combine X driver seeing. in resources, innovation hard customers a a team. problem quarters, our for our the it, across we're to with a been go-to-market our driving really is customers. transparent productivity with quite And we've success that customer

us. and beginning all great of that take I well think come to shape for is together

the it's So to problem combination with solving platform the best hard of and our executing ability. a of the

Eric Heath

curious organic some anything get like doesn't basis and the X to much the question if comments. of seems basis, the new net at new call net XQ as to implies the constant weeds, a prior as seasonality there's when And guidance hopefully, similar currency And on a it a Jen, currency you look relates And ARR it ARR on up out follow XQ it constant on new the the I XQ. to too quarters. because for net it to similar was ARR but a in XQ XQ

when stronger renewal So just any that a with second of why be bigger reason there's half curious base. if think bit a the case usually seasonality should the being I

or a any of lot color call maybe to kind anything So to seasonality. unpack related but there, to out just

Jennifer DiRico

absolutely. Yes,

shared you an than additional the historically the So would the first. usually bit I like had renewal higher seasonally stronger population. of half little of -- say QX -- year, is it's overall, a second and a

average, we and on on focuses our think fact However, field a that as pipeline have we the guidance execution. strong about QX,

from And and momentum gain We're is mostly think [ the these security of thing ARR -- our take let's at to how then say I I continuing land a both organic our the Como]. to is helps last expand organic, call just at way offerings overall our a the any to best to growth. continued continues Only look from a neutralize see seasonal an it's in would there's or a X And really continuing nature look really to are and lot out grow, -- traction. point seasonality.

Eric Heath

the on Congrats organic acceleration.

Operator

William with Blair. Ader Jason from question Next

Jason Ader

takes growth. guess revenue see my think to leverage and for you impressive of just puts outlook about do when you more operating some maybe the margin. question operating as Really I expect and is the

Jennifer DiRico

the question. for Thanks

-- So past we've seeing a accelerate double-digit you're And growth. accelerate absolutely shared I of that investments growth. X think revenue in first 'XX results, in all, absolutely quarters our to the our year that of of FY was

as I increased more overall can has revenue than quarter, bit our little where And revenue seeing the walk a through more staff the we've that first, investments term of you're But shared license. went in software This ] before, margin profile. acceleration. dilutive [ with a

we for ] Calumo the last all, we quarter be of X well, it in quarters. [ X that Second that and to mix had dilutive shared as would

I that then marketing see [ the of at results, rule a the sales and overperformance fact XX%]. But seen line. and additional is out, we've third massive said. invest, end if revenue year-to-date, commission And you'll fourth, in we're we're related in bonuses that's zoom our like continuing The I ultimately, to to and so the

This a XX. of rule quarter,

really we're performance. overall, So the pleased with

Jason Ader

quick one then And Okay. follow-up.

acquisitions? revenue say you catch the what didn't that. contribution Just I from was did

Jennifer DiRico

million we was Jumia $XX of [ So shared ] ARR. that

from perspective million And approximately so if revenue as the you think a quarter. $X that in about

Jason Ader

acquisitions? from any there other Is impact

Jennifer DiRico

that Opradic was [ not point. at ] meaningful

Operator

with comes the Singh line of from question Param Oppenheimer. Our next

Paramveer Singh

cybersecurity of that are bit more really a customers regard. acceleration of side? SaaS, follow-up number front? what I all anything you Have the offerings or of the seen have out a customers now. to And that an that What wanted into the that SaaS with using on little security on putting kind on your particularly percentage you're I dive in modules

Sanjay Mirchandani

security the what built Thanks bolt platform call so security, to resilience that that -- just questions. for The a the -- itself we're deliver in gone we provider been benchmark, has is And Sanjay. also has profile as It's customers built-in the only [indiscernible]. platform not and greatly. through The process enhances high -- security. of certified for the in stringent customer the on

So in for customers. their and the just our secure It itself platform of profile. raises a very is platform

building the okay, at look of like directory], [ clean active secure. and features and making you itself recovery, in about you more is which [ room], If is which recovering, capabilities about we're in,

important that ATP things Our write ] they and/or or which is want can data can our [ customers which [ keep other -- capabilities they on airgap secure. Protect], immutable to

SX examples those attack. of give [indiscernible] in security. features our with make of you So more you to roll all millions objects as acquisition [indiscernible] The and back ability

more All come back lens being recover to of able life security [ from ]. secure this and to of the makes you

do the secure optionality the is and the certified, So into in of give and built we innovations and and great platform customers technology, itself capabilities highly more. that we

Falcon intelligence needed, a automatically, CrowdStrike's us actions whatever enable for it action either strike, move then which from scan, we and Commvault show feeds our crop on wishes just platform, to to if close data customer that partners. example, to allows based a restore take to Cloud I'll integration out -- announced in to, by we and Just from with take just a saying gather

we the like we of being as secure as ] you dimensions on. with the platform think option that capabilities can of So added implicitly tell, platform, can to [ customers

Paramveer Singh

it. Got

that margin with So SaaS, evolution potentially modules were it? be Like platform? or either organically the are of in you is the way a some additional on there to put overall that would to that if there to think about bring M&A natural intend expansion of and I context

Sanjay Mirchandani

repeat to you I'm trying just Can -- question? to it. trying I'm your unpack

Paramveer Singh

Sure. Yes.

little margins. on bit thinking, or could talked with gaps interesting And be a b, in right, want M&A expansion, you SaaS terms to that expand I'm our to module organically I platform. understand, there's be of or security that one of X if you Sorry, terms much. too added in margins have a, any about would

Sanjay Mirchandani

is second be on today we to innovated against feel we're have Active we to think what announced the going Directory], for more none. pickup clean around Honestly, enhancement which attacks. secure our that cyber capabilities, getting to room think I customers just I amazing which [ an we've is

the it back with aprotic [ native ability through acquisitions applications, Rewind data, in [ REWIND], cloud earlier. about Our talked configurations now call I track, back we of the product bring ] the to which all and

All of these are accretive.

to are grow a these of All platform their the resilience profile. choices customers have in very logical in way

Okay.

to It's a they as resilient mature their -- about year. to the that natural not extension it's the ability more other. be of desire and one So be or in

Operator

Next the Davidson. D.A. question Rudy from line with comes Kessinger of

Rudy Kessinger

growth the progress the quarter my Again, I'll ARR in have improvement, Rule XX of acceleration organic that cetera. very impressive, et the

go to in I maybe to that said, I your your you customers well to very X-plus question and back when term was want put guess asked earlier. expand captured I maybe look the here. I subscription numbers know have I of with not on XX% SaaS as differently, So over products. continue recovery you to percent a much on but Have point, you customer those state. just base, backup room customers. like just there, data SaaS, and is entire license upsell I'm nice curious how think existing this what cross-sell of at

Sanjay Mirchandani

is us. a competitive giving This a this away, too Without space. much area really, is because for competitive

coming an gives next us platform. of XX As have let's for months offerings go give The to us. say, feature these sets all unprecedented X we've and very over mentioned, opportunity we inside to and in seamlessly pipeline the cross-sell the months, massive access the opportunity that to just Jen in out is customers new of last XX the that, that a released, all

using data some looking is SaaS predominantly software using was SaaS customer of with us the landed whether -- our and bit more a capabilities. I with of So at little and or center

designed else. platform Our than scenarios. anyone hybrid deeper And broader multi-cloud and is we for were

short Commvault profile too their So with grow much Cloud way everything well the building giving without the on with answer okay, aligns the away platform. we're is resilience customer us, very

So take to seamless the offers and for way apart, are if integrated embrace see quite how out. you'll tightly customers you roll the these and in it in

Rudy Kessinger

fiscal I XX%. XX% really at disclosures. Okay. is revised 'XX And that constant What then, growth of constant Jen, guess to in your appreciate currency these ARR guidance currency?

Jennifer DiRico

the think think of that way we acceleration, best based FX. off $XX guidance to way that. quarter's And is overall back go is the million I the best about to this said think quarter-over-quarter the about I the ARR to ultimately, if So

Operator

from line of question Guggenheim Howard Next comes Securities. Ma with the

Howard Ma

I want for one my strong a And well quarter. as to Jen. Great. congratulations Sanjay, on have for add I one

prior cloud-native So and What related it's like apps of question. -- first, to subset is Sanjay, for the a of it's at protecting greenfield opportunity and sense workloads. your the

accelerate already really breadth relates specifically the vendor. third-party offerings, So and expand as And Commvault, to Commvault of it's side to it that are cloud protected a by do really your not Pranex on been as could continues could scenario is Google forward? Workspace, new going guys that Kunio], -- one -- you are impressive Directory, net guys -- Active this you you [ think SaaS ARR

Sanjay Mirchandani

is answer I Howard, Short absolutely believe Yes. yes. that.

the and a we multi-cloud offerings no and broaden as work our being true no then left doing cloud customers can really to much our load on it can we behind. on that there's focused deep with cloud clouds. as hybrid so as go as for provider We're all the are We

SX deeper partnerships Google AWS. ] side. furthered This app capabilities on on quarter, announced AWS, with more with the much our Workspace The Fumio recently acquisition [ we

So great at was a [indiscernible] -- supported side. and length we got

-- not it's we've to and really the move play, believe clouds. and -- it the and very their snapshot, of depth hard, -- configuration cloud beyond the customers our only A secret. We as test are. across offerings get the like the the [ protect we able in cloud-first to the of was our customers application, So then less single more one customers, offerings, to REWIND], the acquisition, data is safer it's back offerings, exposed customers have no a prioritization on that's sophisticated they to lot the more in offerings go our native for get cloud, which and it's been data, that bring actually [indiscernible] well both cloud resources, allow breadth as the

these we've lot of all would a ability lot it a there's capabilities own cloud there. it make and to continue to So their a through first. centers we'll And version it to through in drive clean seamlessly our we Commvault Cloud Active customers happened and is seamlessly built, all with it capabilities, can XXX, available grow customers, the continue whether primarily that the groundbreaking in a example, data to and storage, the back track, Back to are to software-based of Directory, of still be airgap objects capabilities seamless. take there's even for further billions that fraction platform home the bring these us, avail Office build are continue even prior time what in

Howard Ma

That's to you before a the at [ very if really right? I follow-up In tailwind, because actually we way this. I related was just told Premio the FX, totally said another X-point Atronic was I too. it's [ And QX, point I a -- it encouraging. then ask question, Sanjay. swing. promise -- are I a had a people ] RFX That's that like have us impact I It's good it's also did to the you the color, question to for believe X disclosed want have And headwind. look X-point not brainstorm a our technologies Rudy's Jen. it's second pretty and checks], unique. own want

the right maybe guide, right. a right like more AR raise I about it's doing the think X-point to if wrong there. I'm raise, the to And the so X total is know or X if reported? I X- know of that's don't don't way instead to math

Jennifer DiRico

Yes.

on in But encourage you're basis, $XX net error just you where we million. then like think this the the of I I million in the and back organic Investor appendix to definitely Relations would presentation quarter currency The a said, state, to in ballpark. I you prior constant quarter. -- was go $XX new would

way I growth. plus minus about is $XX continued think right to the the the or overall, think And million so

Howard Ma

-- that [indiscernible]. Sorry, one Jenny, was or million last does that does include that constant $XX is that currency? thing, Or constant is -- that [indiscernible] organic

Jennifer DiRico

new currency. net really constant at organic That's ARR

million In [indiscernible]. addition we from added to the $XX million $XX

Operator

Sandler. the line from comes Question with Fish Piper of James

James Fish

to the Jen, calendar disclosures You and to the much XX% sustainable organic really right about But FX in business, for [indiscernible] further given consolidation $X your the being to guys getting are seen the have talk about space, filings for way which expected? for and the growth, than around a as few opportunity you're if target about currency similar not the actually side, last you deals consolidation? changes, how we're is earlier this. continue few 'XX in on take [indiscernible] I that constant about growth including the talking And quarters. yourselves. think and especially you, thinking the Sanjay, the the Is to billion closer factoring to achieved

Sanjay Mirchandani

I'll go first, Jim.

ago and application years technologies they're to something to years be about going consolidation, sets, do we than think if X something worth I we data Kubernetes X the data ago did lakes, say are that when there very AI-based different it on question And platform, areas you we consolidation. looking AI-backed mean look we even -- years require do resilient think, did backup, Your how forward. further we be or forward or protect X ago. around we're whether large definitely with I

incredible time. And in on seeing only make is We long in fire, don't also value and quickly. as And So business, of are new all. some that workloads this believe long, -- learned there a we very I technologies doesn't we're innovation size if were focus on what -- one bring much there anything our market win. the as our to lot the our customers that for fit now. space in player good public was [indiscernible] actually clearly like engine out learned, a we

environments workloads and protect. to really valuable depth of to You and be breadth need customers you because how that's

have can't completely completely to be resilient. You you and partial, covered need

made. if a doubled everything from And that we've and in that's there very think the the we've The we with revenue, great [ the And we're is -- to growing. that. if doubled we've is Avranics], -- be too. months, few acquisitions Jumio], seen going happy the -- pipeline we've with So the contribution [ key, is

Jennifer DiRico

Thanks, then right. a points And organic Sure. is the highlight from that, few includes I of performance you're our 'XX fact not would Jim, and our The Sanjay. to -- your first second [indiscernible]. question, results only FY yes, all,

between on or rate. organic at XX% an sit we so And XX% growth

organic have think you growth forward, about for just going in our you and -- a bad more share is we more XX% to as As not this I about we'll ARR overall think continued contribution. We'll be year-over-year place quarter. think

James Fish

we're circling Europe some IT just Sounds here, for good. looks. concerns. around there's some Sanjay, 'XX but Obviously, budgets back, about talking how concerns

about So think a entities year regulation -- growth we go last, lot versus having this should in in especially through light this to how month? past of the of those door Europe the

Sanjay Mirchandani

Yes. [indiscernible] coming been for has I while. a mean,

all business do our there's And far. of working the quarter ready make by. We good to our this much calendar if had looking quarter, start for the quarter. us been pretty that that between for quite to fiscal have look quarter. working sure didn't not looking past spread to this the have customers between at evenly different been so 'XX, quarter, for into a was -- without we've at we're changes and -- We've we're our this an with you compliance example. they we buy So regulation Americas year and assumptions this a too actually year it rest getting international. any Europe substantial 'XX were customers last world, -- it's as while And over really not that -- had they for

Operator

of comes Thomas ] Lehi with line Cantor [ Fitzgerald. from the Next question

Unknown Analyst

question first My to that, renewal on license. specifically, on going? question Sanjay, My just are those quarter. of like want color on term to you term I click the what is about terms is could, if expansion. in are you to wanted I And license. related Great conversations, double seeing how know

XXX% pipeline expansion. the past, with does have how like And here? the kind renewal look? side of NRR. What near main in And driver called term? on of we helping you the working has cyber is it's You license on specifically, how been kind can of out in follow-up. expect term SaaS the capacity the here, seeing a what term the are Obviously, I with XXX%, And renewals, side. But license kind

Jennifer DiRico

QX was for So strong know I'll you very and a on very, start just let us. that license, term software

overall, for a XXX% quarter strong NRR continue from to historically been the XXX% We still renewal strong is to that perspective, us, see and be continues the ballpark. has absolutely And to an case. inflows. QX that right

Sanjay Mirchandani

sure to the technology. year, a that more success what customer this to. we've closely they organization resilient, we're working have, with the done closely They're of sure what that they that working Yes. qualitatively, they best have very are enabled And make on them our that is that with greatest customer we access have we've out latest built and base making and

renewals around with So really renewals. that's pipeline conversations the helping around

Our newer that important storage active is ] are the gives very These offerings are protection. Protect accessible our add-ons that directory very -- cycle. AirGas especially enable immutable the [ and them them give ones

could about So, renewals that's quarter, so think healthy. us. our far, was going they're super we a and be as -- last continue all Jen for to said, to -- they're talk to be going quantitatively, solid And we business

Unknown Analyst

qualify all before there or about that is just the to And there summarize I thought product get new packaging cyber question, new on the the you to working [indiscernible] products. and second

again, wondering qualitatively the conversations. forward offering term On we ] specifically, going without kind now that tend I'm just side guidance. [ license I'm your can maybe XXXX from expand to of expect

Jennifer DiRico

here. in I think step I'll

the our in SaaS to workloads NRR our -- overall way about opportunity I you continue would I is motion. to and What software hybrid to opportunity support still think the and to best is both think our XXX% the our push XXX% XXX%. to NRR the of to cross-sell point

Unknown Analyst

you harping headwind on of follow-up if 'XX, like in if ] impressive. margin you quarter, be margins now. And parts quarter out, moving look kind maybe has else Cuneo with And been what the how next and we operating on we're and especially the of balancing out kind would in leverage that are Jennifer helpful. question just here there current growth super That wanted say, the was is on. operating there? fiscal everybody all I next to the foremost, look first [ and kind That's of

Jennifer DiRico

question. Great

fact in of customers. around you resonating, a cloud So for first, products, market would I quarters, investment, dilutive when about All or a products. The or X and robust and if majority see also, double-digit our see from rates, win But productivity. a X the demand I we team, couple Commvault for X We about the of strong I'll to margin zoom close demand continue is absolutely really are that our And said answer continued the things. say question resiliency we growing heard talk absolutely to the our we out be point to we cyber the on X time. that for about dilution decision, think right execution own way side say of around think that [indiscernible]. increased Sanjay the the it would quarters, is I both

we 'XX want balanced. even us an the And so time know to But as at market, the incrementally to right decisions will we time, we the share. same more we think build continue it's investments, be of FY be for course, because we capture to about that market

Sanjay Mirchandani

Rule are the top balanced XX% as responsible because that's we're that at on and line, And still always proud the and of it's the we're very investments. consistently. growing clipping continuing we're with And risk -- margins healthy. ourselves, much of making we're trajectory. We've very, had repeating that of we're as XX And very growth,

Unknown Analyst

impressive. Very

Operator

line the Fargo. with our question of from And comes Rakers Aaron last Wells

Aaron Rakers

the wanted ecosystem. on I to partner go just Yes.

think take Platform, these last this we it and Active as driver the Microsoft do obviously, opportunities? those does curious think Directory. I'm about think to ramp that you curious, considering with engagement opportunities? into be an about come far of mentioned, you see these start should as also revenue AWS, that Or a just Sanjay, in Commvault current you I'm you as revenue June -- You fruition this Cloud incremental quarter? how maybe while with already opportunities, announcing to referenced quarter as starting incremental the to

Sanjay Mirchandani

into cycle. It their you've got that sure takes the it understands make to buying it, it, build customer time because you fits

time. So little of a take it does bit

They're Some We've value. price example. a very, quickly. go directory it to an has one into pleased point. as place with see faster put lot others. of able right [indiscernible] That the wins, customers It's than very the quick been

of a it lot get it's -- workload as out was want customer but Google there's -- absorb. We Workspace demand. to built think some, that's that a I doesn't For easier all where to it done, think our also, one

And the so ramp. all important things other one It think, in of of of And this, that -- Nothing of use marketplaces. that in deploying ramp. a sort overnight. I ease accessibility marketplaces, that's a has has for we're happens customers, because also hyperscale investing

for hands the way So to because customers whether us it's to natural marketplace the faster a them be the Microsoft into enables to the also AWS acquire. it's those product marketplace able get supporting or of

Aaron Rakers

competitive Yes. then that And what of you displace? of follow-up, you you're as most? landscape, do able see do who And opportunity see set to the the a the as kind just quick characterization

Sanjay Mirchandani

which that, been parts scale business, we don't their that I We is that with been their the since in a at of have very in clear to we to connected on hybrid very what scalable ability recover capability, bit their do customers' good people do and we equates we've the XXXX, So continuous -- do a multicloud do They -- clearly don't resilience the that. this within do. what -- we do everything enterprise. market resilience public is focus here we way businesses. why

patents that have space. in X,XXX We

that the we and to very innovation, bring seriously. we take that things market take the we way So

being So think our don't are technologies with of competitors. [indiscernible], track, I available back these sort

different So that make certification. that things only our to and our believe, ones These job, of [indiscernible] the kinds are who very we're the I have customers. us valuable,

future. going excited separating we're We're the And keep So route. we're keep -- of kind ourselves great going look innovation. with to about going we that to

Operator

to to for turn the concludes session. That the would back I Melnyk closing call remarks. like Mr. question-and-answer over

Michael Melnyk

morning. Thank for joining this you, everyone,

bridge. for to out. you Investor again. And on and reach free questions, feel Thank the to presentation get reminder, constant we'll currency As a can available look website at available Relations be a you earnings our

Operator

concludes conference call. Ladies today's this and gentlemen,

You may now disconnect.

Commvault Systems (CVLT) 28 Jan 252025 Q3 Earnings call transcript