Commvault sees Q2 subscription revenue between $264 mln and $268 mln
Company expects Q2 non-GAAP EBIT margin of about 20%
Commvault forecasts FY27 subscription revenue of $1.119 bln to $1.129 bln
Overview
US data protection software firm's fiscal Q1 revenue rose 11% yr/yr
Subscription revenue climbed 16% yr/yr, with SaaS revenue up 39%
Company repurchased $10 mln in shares during the quarter
Result drivers
Subscription growth - Subscription revenue rose 16% yr/yr, driven by increased customer adoption of the company's AI-enabled platform, per CEO Sanjay Mirchandani
SaaS momentum - SaaS revenue crossed $100 mln, up 39% yr/yr, reflecting continued customer shift to cloud-based offerings
Microsoft partnership - Multi-year strategic partnership with Microsoft to offer Commvault's AI and cyber resilience solutions as a native ISV service on Azure highlighted as a recent business development
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "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 $160.00, about 7.1% above its July 27 closing price of $149.46
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 16 three months ago
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