Total Revenue Increase: Q4 revenue rose 10% to $223 million.
Annual Recurring Revenue (ARR): Grew 15% to $770 million.
Subscription ARR: Increased 25% to nearly $600 million.
SaaS ARR: Jumped 65% to $168 million, ending the year with over 5,000 SaaS customers.
Profit Margins: Consistently delivered profit margins of 20% or better.
Free Cash Flow: Generated over $500 million of free cash over the past three years.
Stock Repurchases: Returned over $600 million to shareholders through stock repurchases.
Future Guidance
Fiscal Q1 Expectations: Subscription revenue predicted to be $116 million to $119 million (21% year-over-year growth at the midpoint); total revenue forecasted at $213 million to $216 million.
Fiscal Year ‘25 Projections:
Total ARR growth of 14% year-over-year.
Subscription ARR growth between 21% to 23% year-over-year.
Subscription revenue expected to be in the range of $514 million to $518 million, marking a 20% year-over-year growth at the midpoint.
Total revenue anticipated to be between $904 million to $914 million, an 8% increase at the midpoint.
Gross margins predicted to be in the range of 81.5% to 82.5%.
Non-GAAP EBIT margin forecasted to be between 20% to 21%.
Free cash flows expected to be at least $200 million.
Fiscal Year ‘26 Milestone: Aiming for a total ARR of $1 billion with subscription ARR representing 90% of total ARR, including SaaS contributions ranging from $310 million to $330 million.
Trends, Market Conditions, Sentiment
Cyber Resilience Focus: Commvault has pivoted towards emphasizing cyber resilience, driven by an increase in ransomware attacks and cyber threats. This strategic shift appears to resonate well with their market, drawing significant attention to their SaaS offerings and cyber resilience platform.
Business Model Transformation: Commvault has successfully transitioned from legacy perpetual licensing to a modern subscription and SaaS model, mirroring broader market movements towards subscription-based revenue models.
Market Response to Competition: The company is actively capitalizing on market opportunities arising from competitor mergers and acquisitions, emphasizing their unique value proposition and dislodging incumbents.
Investment in Ecosystem Partnerships: Increased focus on expanding the partner ecosystem, particularly through collaborations with hyperscalers and security partners, suggests a strategic push towards leveraging external growth avenues.
Customer Flexibility and Hybrid Focus: Unlike some competitors that adopt a cloud-first approach, Commvault’s strategy grants customers the flexibility to protect workloads both on-premises and in the cloud, catering to a hybrid and evolving enterprise tech landscape.
Notable Quotes
”This is what we empower our customers to do, be resilient and recover.” - Sanjay Mirchandani, Commvault CEO, highlighting the core value proposition of Commvault’s offerings in today’s high-threat digital environment.
”Our journey is only getting more excited.” - Sanjay Mirchandani, reflecting on the future trajectory and potential of Commvault.
”We believe fiscal year ‘25 will be the year for Commvault to continue accelerating our growth.” - Sanjay Mirchandani, expressing optimism about the company’s growth prospects.
”Given the current cyber market tailwinds, the predictability of our large and growing subscription revenue base, and our execution momentum in the field.” - Gary Merrill, CFO, underscoring the confidence in sustained business momentum and growth.
