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Commvault Systems Q2 subscription revenue rises on SaaS growth

By Reuters News


Overview

  • US data protection software firm's fiscal Q2 subscription revenue rose 21% yr/yr, driven by SaaS growth

  • Subscription ARR reached $1.1 bln, up 20% yr/yr

  • Company generated $75 mln operating cash flow and $71 mln free cash flow


Outlook

  • Commvault expects Q3 subscription revenue between $293 mln and $297 mln

  • Commvault forecasts FY27 subscription revenue between $1,127 mln and $1,133 mln

  • Company expects FY27 subscription ARR between $1,205 mln and $1,215 mln


Result Drivers

  • SAAS GROWTH - Co said 33% yr/yr increase in SaaS revenue contributed to overall subscription revenue growth

  • RECURRING REVENUE - Co attributed 20% yr/yr rise in Subscription ARR to expansion of active contracts

  • CUSTOMER DEMAND - Co said increased enterprise demand for resilience solutions helped drive Q2 results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 ARR

$1.10 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Commvault Systems, Inc. is $165.00, about 1.6% below its October 26 closing price of $167.73

  • The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Oct 26 - Agilysys beats Q2 profit estimates on subscription revenue growth; hikes forecast

  • Oct 26 - Cadence tops Q3 profit estimates, hikes forecast on AI-driven design strength

  • Oct 26 - Cadence unveils suite of AI models that chipmakers can run in-house


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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