Commault Systems, Inc. The KeyBanc Technology Leadership Forum 2026
Review the key takeaways and the transcript of this earnings call.
- Commvault reported a solid Q1 performance with subscription ARR growth of 22% and SaaS ARR growth of 38% year over year.
- The company added 500 new subscription customers and maintained a subscription net dollar retention rate of 114%.
- EBIT margins expanded to nearly 23%, marking a ten-year high for a quarterly period.
- Net new subscription ARR was $39 million on an as-reported basis, with FX headwinds impacting comparisons to the prior year.
- SaaS business contributed $25 million to net new ARR in Q1, up from $18 million the previous year.
- Hardware dynamics remain consistent quarter over quarter, with Commvault effectively managing supply chain constraints.
- The company returned about 60% of free cash flow to shareholders through share buybacks, having repurchased over $400 million in shares over the past year.
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Transcript
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All right. Morning, everyone. Kicking off day 2 here of the KeyBanc Technology Leadership Forum here in Deer Valley. Very pleased to be joined by Gary Merrill and Michael Melnyk of Commvault, as we smile here for our picture. Just before maybe we dive into talking about some of the earnings from a couple of weeks ago, I did want to talk about the market landscape, Commvault, and Gary, your role a little bit, too. Just set the stage in terms of how the backup data protection market has evolved over the last few years. Have you seen it? And then also, second to that, talk about your role, your position. You've been at Commvault a long time, but you had a recent change of seats the last couple of years.
Yes. Let's just revisit that again.
Absolutely. First, thanks for having me here. Really happy to be here, really glad to be able to tell our story a little bit. We've relentlessly tried to innovate, and as the market has matured away from backup and recovery and now truly to cyber resilience, which has happened at an accelerated pace, I would say, over the last 3 years. That innovation is beyond market, it's acquisition and integration, and now, sitting in a space that is a top IT spending priority, and a space that will continue to have major tailwinds for many years to come across security and AI. Really pleased to be helping to lead that charge. I did spend a couple of years in go-to-market as our Chief Commercial Officer, leading our go-to-market teams globally. I took that as a route to try and help accelerate our growth.
During that time, we crossed $1 billion of ARR, and now I'm back as CFO, but also being able to use that commercial experience that I attained globally, working with our partners, working with the hyperscalers, and trying to get ready to scale us to the next stage of growth.
Awesome. Yeah, I think that's always a highlight for investors, an underappreciated part of the story. I thought you brought a lot of operational rigor and execution to the go-to-market organization.
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