Company: CVLT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001169561-25-000069
Chunk: 53

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 53
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% for the three months ended June 30, 2024.

24

Operating Expenses ($ in millions)

–Sales and marketing expenses increased $26.5 million, or 28%, primarily driven by a $13.3 million increase in employee compensation and sales commissions associated with increases in headcount and revenues relative to the same period in the prior year, including an increase of $3.1 million in stock-based compensation. In addition, there was an increase year over year of $9.0 million due to higher spending on marketing initiatives, which included in-person events and travel.

–Research and development expenses increased $7.0 million, or 21%, driven by an increase of $5.4 million in employee compensation and related expenses, including an increase of $1.9 million in stock-based compensation. The increase in employee compensation and related expenses is primarily driven by additional headcount, including headcount related to acquisitions completed in fiscal 2025. Investing in research and development remains a priority for Commvault and we anticipate continued responsible spending related to the development of our software applications and hosted services.

–General and administrative expenses increased $10.5 million, or 34%, driven by an increase of $8.3 million in employee compensation and related expenses, including an increase of $3.0 million in stock-based compensation.

–Depreciation and amortization expense increased $0.7 million, driven by the acquisition of intangible assets in fiscal 2025.

–Restructuring: Our restructuring plan, initiated in the first quarter of fiscal 2026, is intended to optimize our Business Technology organization. Restructuring expenses were $0.2 million for the three months ended June 30, 2025. These charges relate primarily to severance and related costs associated with headcount reductions and include $0.1 million of stock-based compensation related to modifications of existing awards granted to certain employees impacted by the plan. We anticipate the restructuring plan will be completed in fiscal 2026. Restructuring expenses were $4.7 million for the three months ended June 30, 2024 related to a prior restructuring plan that was completed in fiscal 2025.

Risks associated with our restructuring plan include additional unexpected costs, adverse effects on employee morale and the failure to meet operational and growth targets due to the loss of key employees, any of which may impair our ability to achieve anticipated results of operations or otherwise harm our business.

–Change in contingent consideration: During the three months ended June 30,