By Commvault, a leading provider of data backup and recovery services, has announced better-than-expected results for the December quarter. The company’s revenue for the fiscal third quarter reached an impressive $216.8 billion, representing an 11% increase from the previous year. This figure exceeds Commvault’s own guidance range of $206 million to $210 million.
Furthermore, subscription revenue amounted to $114.2 million, surpassing the company’s forecast of $106 million to $110 million. Commvault’s annual recurring revenue (ARR) experienced significant growth as well, reaching $752 million, which is up by 17%. The subscription ARR saw an even more substantial increase, reaching $571 million, up by 29%.
Adjusted earnings for the quarter stood at 78 cents per share, surpassing Wall Street’s consensus of 73 cents. Under generally accepted accounting principles, the company earned 38 cents per share.
Sanjay Mirchandani, CEO of Commvault, described this quarter as “the best quarter we’ve had in the 27 years we’ve been in business in every key metric.” Mirchandani credited the company’s success to the rising number of ransomware attacks that have emphasized the need for cyber resiliency.
Another positive development for Commvault is the growing traction of its transition from perpetual software licenses to a cloud-based subscription model.
Looking ahead to the fiscal fourth quarter ending in March, Commvault anticipates revenue between $210 million and $214 million, with subscription revenue projected to be between $111 million and $115 million. These figures are higher than the Street consensus, which currently stands at $210.2 million for revenue and $107 million for subscription revenue.
The company has also raised its March fiscal year revenue forecast from a previous range of $812 million to $822 million to the current range of $826 million to $830 million. Similarly, subscription revenue expectations have increased from $408 million to $418 million to a new target of $420 million to $424 million.
While no specific guidance has been provided for the March 2025 fiscal year, CFO Gary Merrill is confident that growth will continue to improve, with a focus on achieving sustainable double-digit growth.
In the December quarter, Commvault repurchased $51.3 million worth of stock.
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