Commvault Systems reported higher revenue in its fiscal first quarter, boosted by increasing demand for its cyber-resilience offerings.
Widespread investments in artificial intelligence have prompted exponential data growth, Chief Financial Officer Gary Merrill said. And as a result, companies are increasingly turning to Commvault to protect their new data.
The company provides software that helps businesses protect and restore data following cyber incidents. It is currently having more conversations with leadership teams than ever before, Merrill said, as businesses prioritize spending on resiliency.
"In this AI new world, recovery is the new security," he said. "If you can't recover, you're screwed. It's literally that simple."
Commvault expects to continue to benefit from AI investments. Merrill called the company a second beneficiary of the AI boom, which itself remains in early innings.
"After all this infrastructure is built, the data that will be added from those infrastructures will need to be protected," he said. "So it's sustained for us. We see this as going to be a long-term growth driver."
Merrill declined to comment on rumors of a potential sale, after Reuters reported earlier this year that Commvault had received takeover interest from multiple parties, but said the company is operating in an interesting and relevant space.
"It's a good thing to be in an attractive market," he said.
For its three months ended June 30, Commvault reported a profit of $21.1 million, or 50 cents a share, down from $23.5 million, or 52 cents a share, a year earlier. On an adjusted basis, earnings came in at $1.42 a share, ahead of the $1.16 a share that analysts polled by FactSet expected.
Total revenue climbed 11%, to $314.1 million, topping Wall Street models for $310.4 million. Subscription revenue of $267 million was up 16% from last year and ahead of analyst views for $264.1 million.
For the current quarter, Commvault projected subscription revenue of $264 million to $268 million, beating analyst estimates for $262 million.
For the fiscal year, the company now expects subscription revenue in the range of $1.12 billion to $1.13 billion, up slightly from a prior outlook of $1.115 billion to $1.125 billion.
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