Commvault Systems (CVLT) Q1 2027 earnings summary

Executive summary

• Delivered Q1 results ahead of expectations, with total revenue up 11% year-over-year to $314.1 million, driven by strong subscription and SaaS growth, new customer additions, and product innovation.

• SaaS revenue surpassed $100 million, up 39% year-over-year, and SaaS ARR reached $424.3 million, with 40% of SaaS customers being net new.

• Subscription ARR grew 22% year-over-year to $1,054.3 million, with subscription revenue representing 85% of total revenue.

• Platform strategy and innovation in AI resilience, identity protection, and cloud-native offerings, supported by a strategic partnership with Microsoft, are key differentiators.

• Recognized as a leader in data protection by Gartner and Forrester, serving over 15,000 subscription customers.

Financial highlights

• Subscription ARR reached $1,054.3 million, up 22% year-over-year; SaaS ARR grew 38% to $424.3 million.

• Subscription revenue increased 16% year-over-year to $267 million; SaaS revenue was $100.6 million, up 39% year-over-year.

• Total revenue was $314.1 million, up 11% year-over-year; gross margin was 81.7%.

• Free cash flow rose 71% year-over-year to $51 million; non-GAAP EBIT margin was 22.8%.

• Net income was $21.1 million, with diluted EPS of $0.50 and an effective tax rate of 34.4%.

Outlook and guidance

• Q2 FY27 subscription revenue expected between $264 million and $268 million; total revenue at $310 million.

• FY27 guidance: subscription ARR of $1,200–$1,210 million, subscription revenue of $1,119–$1,129 million, total revenue of $1,300–$1,310 million, and non-GAAP EBIT margin around 21%.

• Free cash flow for FY27 forecasted at $250–$260 million, with share repurchases to be about 60% of free cash flow.

• Existing cash and cash flows from operations expected to meet requirements for at least the next twelve months.