SoFi shares rise as record revenue, member growth drive strong Q3 results
NEW YORK - On Tuesday, Commvault Systems Inc. (NASDAQ:CVLT) reported second-quarter earnings that missed analyst expectations, despite posting better-than-expected revenue. The data management software company’s stock tumbled 8.70% in pre-market trading following the announcement.
The Tinton Falls, New Jersey-based company reported adjusted earnings of $0.91 per share for its fiscal second quarter ended September 30, falling short of the $0.94 per share analysts had expected. However, revenue came in at $276 million, exceeding the consensus estimate of $273.34 million and representing an 18% increase YoY.
A significant milestone for the company was reaching $1.04 billion in annualized recurring revenue (ARR), surpassing the $1 billion mark two quarters ahead of its March 2026 target. Subscription revenue, which made up the bulk of total revenue, grew 29% YoY to $173 million, with SaaS revenue jumping 61% to $80 million.
"Commvault delivered a strong quarter fueled by solid ARR and SaaS growth that accelerated a key milestone for the company — achieving $1 billion in total ARR — two quarters earlier than projected," said Sanjay Mirchandani, President and CEO of Commvault. "As enterprises globally rely on Commvault to be resilient, our cloud-first, AI-enabled cyber resilience platform is more relevant than ever."
For the third quarter, Commvault expects revenue between $298 million and $300 million, in line with analyst expectations of $298.3 million. The company also generated strong cash flow during the quarter, with operating cash flow of $77 million and free cash flow of $74 million.
Despite the positive revenue performance and milestone achievement, investors appeared focused on the earnings miss, sending shares lower in trading following the results.
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