Commvault Systems Q2 subscription revenue rises on SaaS growth

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

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

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(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.)