What were the key takeaways from CommVault Systems's earnings call?

What were the key takeaways from CommVault Systems’s earnings call?

What is the revenue and EPS growth rate for CommVault Systems year over year?

What is CommVault Systems's gross profit margin?

What guidance did CommVault Systems's management provide for the next earnings period?

What is the market's earnings forecast for CommVault Systems next quarter?

What factors drove the changes in CommVault Systems's revenue and profit?

What is CommVault Systems's latest dividend and current dividend yield?

- **ARR Milestone Achieved Early**: Reached $1 billion total ARR 2 quarters ahead of schedule, with SaaS ARR up 56% to $330 million.
- **Strong SaaS Growth**: SaaS ARR growth (55%) outpaces software TAM (low single digits), with 60% of net new ARR from SaaS in H2.
- **Cyber Resilience Leadership**: Named a leader in 3 major industry reports, with innovations like Active Directory recovery and Satori Cyber integration.
- **Financial Strength**: 18.6% EBIT margin, $74 million free cash flow, and updated FY '26 guidance for 18-19% ARR growth.
- **Customer Flexibility**: Shorter term contracts (down 9% QoQ) reflect cloud migration, but subscription ARR growth remains robust at 24-25%.

**【CEO Summary Section】**
- **Record ARR Growth**: Achieved $1 billion in total ARR two quarters ahead of schedule, with subscription ARR up 30% to $894 million. SaaS ARR grew 56% to $330 million, exceeding targets.
- **Key Growth Drivers**: 
  1. **Hybrid Cloud Demand**: Strong adoption of Cyber Resilience platform, with identity and data security solutions contributing 40% of net new ARR. A large Asian bank used Commvault to recover from a cyberattack.
  2. **Cloud Migration**: Clumio ARR grew sequentially, adding 3 Fortune 1000 and 2 Fortune 500 customers. SaaS customers grew 40% YoY to nearly 9,000.
  3. **Innovation Leadership**: Named a leader in Forrester, Gartner, and IDC reports. Acquired Satori Cyber to enhance AI data protection.
- **Customer Momentum**: 42% Rule of 40 achieved in H1, with 125% SaaS net dollar retention and 55% growth in SaaS ARR.

**【CFO Financial Commentary】**
- **Q2 Financial Highlights**: 
  - Total revenue: $276 million (+18% YoY)
  - Subscription revenue: $213 million (+29% YoY)
  - Gross margin: 80.5%
  - Non-GAAP EBIT: $51 million (18.6% margin)
  - Free cash flow: $74 million (+37% YoY)
- **Guidance Updates**: 
  - FY '26 total ARR: 18-19% growth (vs. 17% prior)
  - Subscription ARR: 24-25% growth (vs. 23.5% prior)
  - Free cash flow: $225-230 million (up from $215-220 million)
  - Q3 revenue: $298-300 million (+14% YoY)
- **Margin Outlook**: Gross margin 80.5-81.5%, Non-GAAP EBIT 18.5-19.5%.

**【Q&A Highlights】**
- **Term Duration Shift**: Customers opting for shorter contracts (down 9% QoQ) to maintain flexibility amid cloud migration. Despite this, term software ARR was second-highest in history.
- **Competitive Position**: Out-innovating peers with hybrid cloud platform, capturing 12%+ TAM growth. SaaS ARR growth (55%) far outpaces software TAM (low single digits).
- **Investment Strategy**: Allocating >75% of free cash flow to buybacks, with $131 million repurchased in Q2. Share count stable at ~45 million.
- **SaaS Contribution**: 60% of net new ARR expected to be SaaS in H2, driving margin expansion despite upfront investment costs.

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