Commvault Systems Inc
NASDAQ:CVLT
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Commvault Systems Inc
In the complex ecosystem of data management, Commvault Systems Inc. has carved out a niche as a stalwart provider of versatile data protection and information management solutions. The company, rooted in innovation since its inception in 1996, caters to a broad clientele across various industries, offering software and services that focus on multiple facets of data handling—from backup and recovery to cloud management and data governance. Commvault’s flagship product, the Commvault Data Platform, is engineered to simplify the often daunting task of managing and securing business-critical data. It provides enterprises with the tools to maintain seamless data availability while bolstering their defenses against cyber threats, a proposition that has gained increasing relevance in the age of digital transformation.
Revenue generation at Commvault is spurred by a diversified model that combines software licensing, software-as-a-service (SaaS) offerings, and professional services. Their business earns significant income from initial software licensing agreements, where clients obtain the rights to use Commvault's proprietary solutions. Beyond that, recurring revenue is bolstered through subscriptions to ongoing software updates, maintenance contracts, and cloud-based solutions delivered via their Commvault-as-a-Service platform. Additionally, the company capitalizes on its expertise by offering consulting, design, and implementation services, helping businesses tailor Commvault’s technology to their unique data landscapes. This multifaceted approach not only ensures a steady income stream but also strengthens customer relationships and loyalty through comprehensive, adaptive data solutions that evolve with changing market demands.
In the complex ecosystem of data management, Commvault Systems Inc. has carved out a niche as a stalwart provider of versatile data protection and information management solutions. The company, rooted in innovation since its inception in 1996, caters to a broad clientele across various industries, offering software and services that focus on multiple facets of data handling—from backup and recovery to cloud management and data governance. Commvault’s flagship product, the Commvault Data Platform, is engineered to simplify the often daunting task of managing and securing business-critical data. It provides enterprises with the tools to maintain seamless data availability while bolstering their defenses against cyber threats, a proposition that has gained increasing relevance in the age of digital transformation.
Revenue generation at Commvault is spurred by a diversified model that combines software licensing, software-as-a-service (SaaS) offerings, and professional services. Their business earns significant income from initial software licensing agreements, where clients obtain the rights to use Commvault's proprietary solutions. Beyond that, recurring revenue is bolstered through subscriptions to ongoing software updates, maintenance contracts, and cloud-based solutions delivered via their Commvault-as-a-Service platform. Additionally, the company capitalizes on its expertise by offering consulting, design, and implementation services, helping businesses tailor Commvault’s technology to their unique data landscapes. This multifaceted approach not only ensures a steady income stream but also strengthens customer relationships and loyalty through comprehensive, adaptive data solutions that evolve with changing market demands.
Strong Growth: Commvault reported Q3 total revenue of $314 million, up 19% year-over-year, with subscription revenue rising 30% to $206 million and SaaS ARR up 40% to $364 million.
Customer Momentum: The company added about 700 new subscription customers, reaching over 14,000 subscription customers and more than 9,000 SaaS customers.
Profitability: Gross margin improved sequentially by 100 basis points to 81.5%, and non-GAAP EBIT margin reached 19.6%, achieving the rule of 40.
Guidance Raised: Fiscal 2026 full-year subscription revenue guidance was raised to $764–768 million (up 30% at midpoint); total revenue guidance increased to $1.177–1.18 billion (up 18% at midpoint); EBIT margin outlook was also raised.
SaaS Mix Shifting: 70% of net new ARR in Q3 came from SaaS, reflecting ongoing mix shift, with SaaS net dollar retention at 121%. Management expects SaaS to comprise about 60% of net new ARR going forward.
Cost Optimization: A cost optimization program was initiated to align expenses with business needs, with $12–15 million in one-time payments expected in fiscal 2026.
Innovation & AI: The Commvault Cloud Unity platform was launched, aimed at advancing cyber resilience and supporting AI workloads, with positive early customer and industry feedback.
Share Repurchase: The Board recommitted the share repurchase authorization back to $250 million.
