CommVault Systems Inc (CVLT) Reports 7% YoY Increase in Q2 Total Revenues
CommVault Systems Inc (NASDAQ:CVLT) announced its fiscal 2024 second quarter financial results, reporting a 7% YoY increase in total revenues.
The company's subscription revenue saw a significant surge, growing by 25% YoY.
CommVault's total ARR1 grew to $711 million, marking an 18% YoY increase.
The company's operating cash flow stood at $40.3 million, with free cash flow2 of $40.1 million.
CommVault Systems Inc (NASDAQ:CVLT) released its fiscal 2024 second quarter financial results on October 31, 2023. The company reported a 7% year-over-year increase in total revenues, which amounted to $201.0 million. The growth was primarily driven by the company's hyper-growth SaaS platform. The company's President and CEO, Sanjay Mirchandani, stated, "Our Q2 total revenue growth accelerated, driven by our hyper-growth SaaS platform, and we delivered robust operating margin leverage."
Financial Performance Highlights
CommVault's subscription revenue saw a significant surge, growing by 25% YoY to reach $97.8 million. The company's total ARR1 also saw a substantial increase, growing by 18% YoY to reach $711 million. Subscription ARR1 grew by 32% YoY to reach $530 million.
The company's income from operations (EBIT) was $17.6 million, representing an operating margin of 8.8%. Non-GAAP EBIT2 was $42.0 million, representing an operating margin of 20.9%. The company's operating cash flow stood at $40.3 million, with free cash flow2 of $40.1 million.
Share Repurchases and Future Outlook
During the second quarter, CommVault repurchased $31.3 million, or approximately 442,000 shares of common stock. For the third quarter of fiscal year 2024, the company expects total revenues to be between $206 million and $210 million, and subscription revenue to be between $106 million and $110 million. The non-GAAP operating margin2 is expected to be approximately 21%.
For the full fiscal year 2024, the company expects total revenues to be between $812 million and $822 million, and subscription revenue to be between $408 million and $418 million. The total ARR1 is expected to grow 14% YoY. The non-GAAP operating margin2 is expected to grow between 50 to 100 basis points YoY, and free cash flow2 is expected to be approximately $170 million.
Company Overview
CommVault (NASDAQ: CVLT) is a global leader in cloud data protection. The company's industry-leading platform redefines the next generation of data protection as the only solution with comprehensive data protection, proactive data defense, advanced ransomware protection, and a single view across all data. This lets customers secure, defend, and recover their data, applications, and production workloads on-premises, in the cloud, over SaaS, or spread across hybrid and multi-cloud environments.
Explore the complete 8-K earnings release (here) from CommVault Systems Inc for further details.
This article first appeared on GuruFocus.
