Analyst(s): Krista Case
Publication Date: January 29, 2025
Commvault’s Q3 FY 2025 results highlight strong momentum in cyber resilience, growing SaaS adoption, and multi-cloud expansion.
What is Covered in this Article:
- Strong subscription growth and SaaS adoption driving ARR
- Expansion across multi-cloud environments
- Enhanced Active Directory security and identity protection
- Commvault’s path toward potentially exceeding its FY 2026 ARR target
The News: Commvault’s Q3 FY 2025 revenue grew 21% year-over-year (YoY) to $263 million, surpassing consensus estimates by 7%. Annual recurring revenue (ARR) rose 18% YoY to $890 million, with subscription revenue surging 39% YoY to $158 million. Non-GAAP operating income grew 17% YoY to $55 million, with an operating margin of 20.8% (compared to 21.5% in Q3 FY 2023). Non-GAAP net income increased 22% YoY to $43 million (+8% above consensus), while non-GAAP earnings per share (EPS) rose to $0.94 (Q3 FY 2023: $0.78), exceeding consensus estimates by 8%.
Commvault expects ARR to grow between 19% and 20% for the full fiscal year, contributing to a projected total revenue of $980 million to $985 million. Non-GAAP operating margins are anticipated to remain between 20% and 21%.
“Our innovative approach to cyber resilience continues to win large net-new accounts and fuel our expansion business,” said Sanjay Mirchandani, President and CEO of Commvault. “As we look to the future, we believe our unified platform, which enables customers to anticipate, prepare for, and recover from inevitable attacks, will be more critical than ever.”
Commvault Q3 FY 2025: Subscription & Cloud Gains Fuel Strong ARR Growth
Analyst Take: Commvault’s Q3 FY 2025 results show strong momentum in cyber resilience and the company’s expansion across multi-hybrid cloud workloads. Revenues were driven by solid subscription growth and accelerating ARR,, fueled by increased SaaS adoptionThe company continues to take advantage of the shift toward SaaS-delivered, multi-cloud data protection, strengthening its security offerings and expanding its presence in regulated industries. With a 21% YoY revenue increase, 39% YoY subscription revenue growth, and SaaS ARR climbing by 71% YoY, Commvault’s strategy of focusing on cloud workloads and cyber resilience continues to deliver results.
Multi-Cloud Resilience and Subscription Growth Drive ARR Expansion
Commvault’s ability to scale its data protection and cyber resilience solutions across major cloud providers, including AWS, Azure, and Google Cloud, is driving enterprise adoption. With businesses increasingly relying on multiple cloud providers for critical workloads, the need for automated, scalable, and secure data protection continues to grow.
In Q3, Commvault’s SaaS ARR surged 75% year over year (constant currency), reflecting the execution of its multi-cloud strategy. The company’s focus on providing a unified platform to protect and facilitate resilience for the myriad of modern and legacy workloads used by today’s enterprises is helping Commvault attract large net new accounts. Meanwhile, its growing roster of capabilities is also helping to increase transaction volume via a land-and-expand approach. Furthermore, the company’s 127% SaaS net dollar retention rate (NRR) reflects the success of its initiatives in cyber-resilience and securing multi-cloud and AI application stacks from the standpoint of customers, April 2024 Appranix acquisition, now dubbed Cloud Rewind, has added to this momentum, with ARR from the offering more than doubling since the deal closed. In another example of recent acquisition activity to further strategic initiativesCommvault has launched Clumio Backtrack for Amazon S3 – a feature that lets enterprises quickly restore large datasets to previous states – to strengthen its position in AWS-native backup and recovery.
Commvault Strengthens Active Directory Security and Cloud Recovery
In other announcements, Commvault has strengthened its Active Directory (AD) security by introducing fully automated recovery for Microsoft AD. This upgrade helps organizations reinforce their cyber recovery strategies, especially as identity-based attacks continue to rise. With AD being targeted in 9 out of 10 cyber breaches, as noted by Mirchandani in his earnings call comments, integrating automated AD recovery into Commvault’s unified cloud platform adds significant value, allowing businesses to recover quickly without extended downtime.
Also noted on the company’s earnings call was Commvault’s Cloud Cleanroom Recovery, which lets organizations simulate and test cyber recovery workflows before an attack, and which has been gaining traction as businesses put a bigger emphasis on built-in cyber resilience. In Q3, Commvault enhanced automation and multi-cloud integrations within Cleanroom Recovery to make recovery even more seamless.
Strategic Partnerships and Market Expansion
Commvault is deepening its partnerships with major cloud providers like AWS, Microsoft Azure, Google Cloud, and Oracle Cloud, as exemplified by the launch of Commvault Cloud on AWS and new cloud backup and recovery for Google Workspace.
In addition, it is deepening partnerships with players across the security stack. Commvault’s recent integration with CrowdStrike’s Falcon Platform brings real-time threat intelligence into the mix, enabling enterprises to automate security responses like data restoration and anomaly detection. These strategic collaborations are especially valuable in highly regulated industries like financial services, healthcare, and critical infrastructure, where compliance-driven data protection is a top priority.
Looking ahead
Commvault’s expanding cloud-based data protection and cyber resilience offerings position it well as enterprises prioritize business continuity. The company’s early moves to embrace as-a-service delivery of data protection capabilities, its active and accelerating expansion into broader cyber-resilience capabilities, and its focus on delivering an umbrella platform that can protect the totality of workloads in use by enterprises render it highly relevant and competitive. For example, the growing threat of AI-powered cyberattacks highlights the importance of Commvault’s Cloud Cleanroom Recovery and Active Directory security. Commvault’s subscription momentum, cloud innovation, and security-first strategy strengthen its path toward exceeding its FY 2026 ARR target of $1 billion.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Krista Case brings over 15 years of experience providing research and advisory services and creating thought leadership content. Her vantage point spans technology and vendor portfolio developments; customer buying behavior trends; and vendor ecosystems, go-to-market positioning, and business models. Her work has appeared in major publications including eWeek, TechTarget and The Register.
