EX-99.1 2 q4fy24pressrelease.htm EX-99.1 Document
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Investor Relations Contact:    
Michael J. Melnyk, CFA
732-870-4581
mmelnyk@commvault.com


Commvault Announces Fiscal 2024 Fourth Quarter Financial Results


Tinton Falls, N.J. – April 30, 2024 – Commvault [Nasdaq: CVLT] today announced its financial results for the fourth quarter and fiscal year ended March 31, 2024.

"We had an outstanding quarter and a breakout year, highlighted by 10% total revenue growth and 15% total ARR growth in the fourth quarter," said Sanjay Mirchandani, President and CEO. "Our Commvault Cloud platform is resonating with customers, who entrust us with their data and resilience in this era of unrelenting cyber threats."

Fiscal 2024 Fourth Quarter Highlights -
•Total revenues were $223.3 million, up 10% year over year
•Subscription revenue was $119.9 million, up 27% year over year
•Income from operations (EBIT) was $18.2 million, an operating margin of 8.1%
•Non-GAAP EBIT1 was $45.2 million, an operating margin of 20.2%
•Operating cash flow was $80.0 million, with free cash flow1 of $79.1 million
•Fourth quarter share repurchases were $50.4 million, or approximately 547,000 shares of common stock

Fiscal 2024 Full Year Highlights -
•Total revenues were $839.2 million, up 7% year over year
•Total ARR2 grew to $770 million, up 15% year over year
•Subscription revenue was $429.2 million, up 23% year over year
•Subscription ARR2 grew to $597 million, up 25% year over year
•Income from operations (EBIT) was $75.4 million, an operating margin of 9.0%
•Non-GAAP EBIT1 was $177.5 million, an operating margin of 21.1%
•Operating cash flow was $203.8 million, with free cash flow1 of $200 million
•Full year share repurchases were $184.0 million, or approximately 2,479,000 shares of common stock





Notes are contained on the last page of this Press Release.
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Financial Outlook for First Quarter and Full Year Fiscal 20253 -
We are providing the following guidance for the first quarter of fiscal year 2025:
•Total revenues are expected to be between $213 million and $216 million
•Subscription revenue is expected to be between $116 million and $119 million
•Non-GAAP operating margin1 is expected to be between 18% to 19%

We are providing the following guidance for the full fiscal year 2025:
•Total revenues are expected to be between $904 million and $914 million
•Total ARR2 is expected to grow 14% year over year
•Subscription revenue is expected to be between $514 million and $518 million
•Subscription ARR2 is expected to grow between 21% to 23% year over year
•Non-GAAP operating margin1 is expected to be between 20% to 21%
•Free cash flow1 is expected to be at least $200 million
The above statements are based on current targets using exchange rates as of April 29, 2024. These statements are forward-looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.

Conference Call Information
Commvault will host a conference call today, April 30, 2024 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "Events" section of Commvault's website. An archived webcast of this conference call will also be available following the call.

About Commvault
Commvault (NASDAQ: CVLT) is the gold standard in cyber resilience, helping more than 100,000 organizations keep data safe and businesses resilient and moving forward. Today, Commvault offers the only cyber resilience platform that combines the best data security and rapid recovery at enterprise scale across any workload, anywhere—at the lowest TCO.


Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault’s beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.









Notes are contained on the last page of this Press Release.
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Revenue Overview
($ in thousands)
Q4'23Q1'24Q2'24Q3'24Q4'24
Revenue Summary:
Subscription$94,537 $97,290 $97,757 $114,247 $119,873 
Perpetual license17,561 13,155 14,388 14,874 15,196 
Customer support77,335 76,915 77,019 76,812 77,025 
Other services14,045 10,790 11,833 10,875 11,198 
Total revenues$203,478 $198,150 $200,997 $216,808 $223,292 

Q4'23Q1'24Q2'24Q3'24Q4'24
Y/Y Growth:
Subscription9 %11 %25 %31 %27 %
Perpetual license(25)%(26)%(27)%(25)%(13)%
Customer support(9)%(5)%(1)%(1)%— %
Other services28 %(4)%(1)%6 %(20)%
Total revenues(1)%— %7 %11 %10 %

FY'23Y/Y GrowthFY'24Y/Y Growth
Revenue Summary:
Subscription$347,784 30 %$429,167 23 %
Perpetual license74,918 (33)%57,613 (23)%
Customer support314,313 (9)%307,771 (2)%
Other services47,575 13 %44,696 (6)%
Total revenues$784,590 2 %$839,247 7 %

Constant Currency
($ in thousands)

The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

SubscriptionPerpetual licenseCustomer supportOther servicesTotal
Q4'23 Revenue as Reported (GAAP)$94,537$17,561$77,335$14,045$203,478
Q4'24 Revenue as Reported (GAAP)$119,873$15,196$77,025$11,198$223,292
% Change Y/Y (GAAP)27 %(13)%— %(20)%10 %
Constant Currency Impact$20$(99)$(140)$(59)$(278)
% Change Y/Y Constant Currency27 %(14)%(1)%(21)%10 %

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SubscriptionPerpetual licenseCustomer supportOther servicesTotal
FY'23 Revenue as Reported (GAAP)$347,784$74,918$314,313$47,575$784,590
FY'24 Revenue as Reported (GAAP)$429,167$57,613$307,771$44,696$839,247
% Change Y/Y (GAAP)23 %(23)%(2)%(6)%7 %
Constant Currency Impact$(1,456)$(480)$(1,973)$(195)$(4,104)
% Change Y/Y Constant Currency23 %(24)%(3)%(6)%6 %

Revenues by Geography
($ in thousands)

Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China.
Q4'23Q1'24Q2'24Q3'24Q4'24
RevenueY/Y GrowthRevenueY/Y GrowthRevenueY/Y GrowthRevenueY/Y GrowthRevenueY/Y Growth
Americas$122,337 (1)%$122,124 — %$120,300 4 %$125,052 16 %$131,069 7 %
International81,141 (1)%76,026 1 %80,697 12 %91,756 6 %92,223 14 %
Total revenues$203,478 (1)%$198,150 — %$200,997 7 %$216,808 11 %$223,292 10 %

FY'23FY'24
RevenueY/Y GrowthRevenueY/Y Growth
Americas$469,244 2 %$498,545 6 %
International315,346 1 %340,702 8 %
Total revenues$784,590 2 %$839,247 7 %



Total ARR and Subscription ARR2
($ in thousands)

Q4'23Q1'24Q2'24Q3'24Q4'24
Total ARR2
$668,411 $686,028 $711,462 $752,480 $769,946 
Subscription ARR2
$477,085 $499,580 $529,590 $571,125 $596,667 













Notes are contained on the last page of this Press Release.
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For the three months ended March 31, 2024 -
Income from Operations (EBIT)
•Income from operations (EBIT) was $18.2 million, an operating margin of 8.1%
•Non-GAAP EBIT1 was $45.2 million, an operating margin of 20.2%

GAAP and Non-GAAP Net Income1
•GAAP net income was $126.1 million, or $2.81 per diluted share
•Non-GAAP net income1 was $35.3 million, or $0.79 per diluted share

Cash Summary and Share Repurchases
•Cash flow from operations was $80.0 million in the fourth quarter
•During the fourth quarter, Commvault repurchased $50.4 million, or approximately 547,000 shares, of common stock at an average share price of approximately $92.07 per share


For the year ended March 31, 2024 -
Income from Operations (EBIT)
•Income from operations (EBIT) was $75.4 million, an operating margin of 9.0%
•Non-GAAP EBIT1 was $177.5 million, an operating margin of 21.1%

GAAP and Non-GAAP Net Income1
•GAAP net income was $168.9 million, or $3.75 per diluted share
•Non-GAAP net income1 was $134.4 million, or $2.98 per diluted share

Cash Summary and Share Repurchases
•Cash flow from operations was $203.8 million in the full fiscal year
•As of March 31, 2024, ending cash and cash equivalents was approximately $312.8 million
•During the full fiscal year, Commvault repurchased $184.0 million, or approximately 2,479,000 shares, of common stock at an average share price of approximately $74.24 per share












Notes are contained on the last page of this Press Release.
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Table I
Commvault Systems, Inc.

Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 Three Months Ended March 31,Year Ended
March 31,
 2024202320242023
Revenues:
Subscription$119,873 $94,537 $429,167 $347,784 
Perpetual license15,196 17,561 57,613 74,918 
Customer support77,025 77,335 307,771 314,313 
Other services11,198 14,045 44,696 47,575 
Total revenues223,292 203,478 839,247 784,590 
Cost of revenues:
Subscription15,486 12,922 58,406 44,482 
Perpetual license316 519 2,168 2,439 
Customer support15,806 13,206 60,752 58,273 
Other services7,538 8,158 30,284 30,208 
Total cost of revenues39,146 34,805 151,610 135,402 
Gross margin184,146 168,673 687,637 649,188 
Operating expenses:
Sales and marketing94,458 87,222 354,994 340,783 
Research and development35,244 32,176 132,328 141,847 
General and administrative29,938 27,728 113,997 104,240 
Restructuring 4,548 4,092 4,548 15,452 
Depreciation and amortization1,768 1,639 6,415 9,270 
Headquarters impairment— 53,481 — 53,481 
Total operating expenses165,956 206,338 612,282 665,073 
Income (loss) from operations18,190 (37,665)75,355 (15,885)
Interest income1,893 384 5,423 1,300 
Interest expense(104)(157)(415)(472)
Other income (expense), net3,076 (193)3,250 (305)
Income (loss) before income taxes23,055 (37,631)83,613 (15,362)
Income tax expense (benefit)(103,065)5,862 (85,293)20,412 
Net income (loss)$126,120 $(43,493)$168,906 $(35,774)
Net income (loss) per common share:
Basic$2.89 $(0.98)$3.85 $(0.80)
Diluted$2.81 $(0.98)$3.75 $(0.80)
Weighted average common shares outstanding:
Basic43,672 44,437 43,885 44,664 
Diluted44,917 44,437 45,100 44,664 





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Table II
Commvault Systems, Inc.

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
 March 31,March 31,
 20242023
ASSETS
Current assets:
Cash and cash equivalents$312,754 $287,778 
Trade accounts receivable, net222,683 210,441 
Assets held for sale38,680 38,680 
Other current assets21,009 14,015 
Total current assets595,126 550,914 
Deferred tax assets, net111,181 — 
Property and equipment, net7,961 8,287 
Operating lease assets10,545 11,784 
Deferred commissions cost62,837 59,612 
Intangible assets, net1,042 2,292 
Goodwill127,780 127,780 
Other assets27,441 21,905 
Total assets$943,913 $782,574 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$299 $108 
Accrued liabilities117,244 97,888 
Current portion of operating lease liabilities4,935 4,518 
Deferred revenue362,450 307,562 
Total current liabilities484,928 410,076 
Deferred revenue, less current portion168,472 174,393 
Deferred tax liabilities1,717 134 
Long-term operating lease liabilities7,155 8,260 
Other liabilities3,556 3,613 
Total stockholders’ equity278,085 186,098 
Total liabilities and stockholders’ equity$943,913 $782,574 







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Table III
Commvault Systems, Inc.

Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 Three Months Ended March 31,Year Ended
March 31,
 2024202320242023
Cash flows from operating activities
Net income (loss)$126,120 (43,493)$168,906 $(35,774)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization1,796 1,667 6,530 10,323 
Noncash stock-based compensation22,610 24,679 94,551 105,746 
Noncash change in fair value of equity securities191 193 17 305 
Noncash headquarters impairment— 53,481 — 53,481 
Deferred income taxes(109,598)(674)(109,598)(674)
Amortization of deferred commissions cost6,987 6,093 26,531 22,626 
Changes in operating assets and liabilities:
Trade accounts receivable, net(1,049)6,183 (21,725)(11,596)
Operating lease assets and liabilities, net131 5 550 (56)
Other current assets and Other assets(1,634)3,197 336 6,179 
Deferred commissions cost(9,411)(7,866)(29,952)(30,529)
Accounts payable87 (346)195 (297)
Accrued liabilities16,146 (7,110)16,998 (24,213)
Deferred revenue27,951 31,949 50,394 73,756 
Other liabilities(342)(125)65 1,011 
Net cash provided by operating activities79,985 67,833 203,798 170,288 
Cash flows from investing activities
Purchase of property and equipment(859)(1,055)(4,086)(3,241)
Purchase of equity securities(373)(84)(1,435)(2,045)
Net cash used in investing activities(1,232)(1,139)(5,521)(5,286)
Cash flows from financing activities
Repurchase of common stock(50,366)(60,790)(184,021)(150,921)
Proceeds from stock-based compensation plans5,687 6,113 13,440 15,405 
Payment of debt issuance costs— — — (63)
Net cash used in financing activities(44,679)(54,677)(170,581)(135,579)
Effects of exchange rate — changes in cash(5,630)2,292 (2,720)(9,152)
Net increase in cash and cash equivalents28,444 14,309 24,976 20,271 
Cash and cash equivalents at beginning of period284,310 273,469 287,778 267,507 
Cash and cash equivalents at end of period$312,754 $287,778 $312,754 $287,778 

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Table IV
Commvault Systems, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,Year Ended
March 31,
2024202320242023
Non-GAAP financial measures and reconciliation:
GAAP income (loss) from operations$18,190 $(37,665)$75,355 $(15,885)
Noncash stock-based compensation4
21,093 24,378 93,034 103,139 
FICA and payroll tax expense related to stock-based compensation5
1,073 803 3,285 2,465 
Restructuring6
4,548 4,092 4,548 15,452 
Amortization of intangible assets7
312 312 1,250 1,250 
Headquarters impairment8
— 53,481 — 53,481 
Non-GAAP income from operations$45,216 $45,401 $177,472 $159,902 
GAAP net income (loss)$126,120 $(43,493)$168,906 $(35,774)
Noncash stock-based compensation4
21,093 24,378 93,034 103,139 
FICA and payroll tax expense related to stock-based compensation5
1,073 803 3,285 2,465 
Restructuring6
4,548 4,092 4,548 15,452 
Amortization of intangible assets7
312 312 1,250 1,250 
Headquarters impairment8
— 53,481— 53,481
Gain on escrow payment9
(1,670)— (1,670)— 
Non-GAAP provision for income taxes adjustment10
(116,136)(6,407)(134,989)(22,904)
Non-GAAP net income$35,340 $33,166 $134,364 $117,109 
Diluted weighted average shares outstanding44,91745,17745,10045,734
Non-GAAP diluted earnings per share$0.79 $0.73 $2.98 $2.56 



Three Months Ended March 31,Year Ended
March 31,
2024202320242023
Non-GAAP free cash flow reconciliation:
GAAP cash provided by operating activities$79,985 $67,833 $203,798 $170,288 
Purchase of property and equipment(859)(1,055)(4,086)(3,241)
Non-GAAP free cash flow$79,126 $66,778 $199,712 $167,047 







Notes are contained on the last page of this Press Release.
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Use of Non-GAAP Financial Measures
Commvault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP income from operations margin, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP free cash flow, annualized recurring revenue (ARR) and subscription ARR. This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. In addition, Commvault believes these non-GAAP operating measures are useful to investors, when used as a supplement to GAAP financial measures, in evaluating Commvault’s ongoing operational performance. Commvault believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault’s industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues on a constant currency basis. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.

All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.

Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees exercise in the money stock options or vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, noncash impairment charges, and a gain related to a non-refundable escrow payment associated with the pending sale of Commvault's headquarters from its non-GAAP results. These expenses are further discussed in Table IV. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault’s core operating results over multiple periods. When evaluating the performance of Commvault’s operating results and developing short- and long-term plans, Commvault does not consider such expenses.

Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on stock option exercises and vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault’s operating results and those of other companies.

There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain
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operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault’s operating results. In addition, noncash stock-based compensation is an important part of Commvault’s employees’ compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):

 
Three Months Ended March 31,Year Ended March 31,
2024202320242023
Cost of revenues$1,608 $935 $6,832 $4,787 
Sales and marketing6,796 11,044 36,630 43,081 
Research and development5,402 5,518 21,585 28,540 
General and administrative7,287 6,881 27,987 26,731 
Stock-based compensation expense
$21,093 $24,378 $93,034 $103,139 

The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in note six.

The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault’s management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.

Non-GAAP net income and non-GAAP diluted earnings per share (EPS). In addition to the adjustments discussed in non-GAAP income from operations, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 27%.

Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income. For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.

Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault’s use of non-GAAP net income and non-GAAP diluted EPS.

Non-GAAP free cash flow. Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a
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useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault’s use of non-GAAP free cash flow.

Forward-looking non-GAAP measures. In this press release, Commvault presents certain forward-looking non-GAAP metrics. Commvault cannot provide a reconciliation to the comparable GAAP metric without unreasonable efforts, as certain financial information, the probable significance of which may be material, is not available and cannot be reasonably estimated.

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Notes
1.A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included in this press release. An explanation of these measures is also included under the heading “Use of Non-GAAP Financial Measures.”

2.Annualized Recurring Revenue (ARR) is defined as the annualized recurring value of all active contracts at the end of a reporting period. It includes the following contract types: subscription (including term licenses, SaaS and utility software), maintenance contracts related to perpetual licenses, other extended maintenance contracts (enterprise support), and managed services. It excludes any element of the arrangement that is not expected to recur, primarily perpetual licenses and most professional services. Subscription ARR includes only term licenses, SaaS and utility software arrangements. Contracts are annualized by dividing the total contract value by the number of days in the contract term, then multiplying by 365.

ARR should be viewed independently of GAAP revenue, deferred revenue and unbilled revenue and is not intended to be combined with or to replace those items. ARR is not a forecast of future revenue. Management believes that reviewing this metric, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault's recurring revenue streams presented on an annualized basis.

3.Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See “Use of Non-GAAP Financial Measures” for additional explanation.

4.Represents noncash stock-based compensation charges associated with restricted stock units granted and our Employee Stock Purchase Plan, exclusive of stock-based compensation expense related to Commvault's restructuring activities described below in note 6.

5.Represents additional FICA and related payroll tax expenses incurred by Commvault when employees exercise in-the-money stock options or vest in restricted stock awards.

6.These restructuring charges relate primarily to severance and related costs associated with headcount reductions and stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by our restructuring plans.

7.Represents noncash amortization of intangible assets.

8.Represents noncash impairment charges related to the pending sale of Commvault's owned corporate headquarters.

9.Represents a non-refundable escrow payment received related to the expiration of the exclusivity agreement for the pending sale of Commvault's owned corporate headquarters.
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10.The provision for income taxes is adjusted to reflect Commvault’s estimated non-GAAP effective tax rate of 27% during fiscal 2024 and fiscal 2023. During the fourth quarter of fiscal 2024, the Company reversed its valuation allowance, resulting in a tax benefit of $85 million for the fiscal year ended March 31, 2024. Beginning in fiscal 2025, Commvault will lower its estimated non-GAAP effective tax rate from 27% to 24%. Commvault believes that a 24% rate more closely aligns with its effective tax rate expectations over the next few years.
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