Company: CVLT
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001169561-25-000089
Chunk: 72

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 72
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aaS revenues, respectively, partially offset by a 26% decrease in perpetual license revenue, driven by the shift from selling perpetual licenses to subscription software arrangements. Customer support revenue decreased 1% year over year. Other services revenue decreased 7% year over year primarily due to the timing professional services were delivered compared to the same period of the prior year.

▪The increase in International total revenues was due to increases of 22%, 39%, 41%, 9% and 16% in term-based license, SaaS, perpetual license, customer support and other services revenues, respectively, as compared to the same period of the prior year.

Our total revenues in International is subject to changes in foreign exchange rates as further discussed above in the “Foreign Currency Exchange Rates’ Impact on Results of Operations” section.

28

Cost of Revenues and Gross Margin ($ in millions)

 Three Months Ended September 30,20252024Cost of RevenuesGrossMarginCost of RevenuesGrossMarginSubscription:Term-based license$2.4 97 %$2.4 97 %SaaS29.2 64 %17.2 65 %Total subscription31.6 82 %19.5 85 %Perpetual license0.2 98 %0.4 96 %Customer support14.8 81 %15.3 80 %Other services8.4 25 %7.6 31 %Total cost of revenues$55.0 80 %$42.9 82 %

–Total cost of revenues increased $12.2 million and represented 20% of our total revenues for the three months ended September 30, 2025 compared to 18% for the three months ended September 30, 2024.

–Cost of term-based license revenue remained flat compared to the same period of the prior year, representing 3% of our term-based license revenue for the three months ended September 30, 2025 and 2024.

–Cost of SaaS revenue increased $12.0 million and represented 36% of our SaaS revenue for the three months ended September 30, 2025 compared to 35% for the three months ended September 30, 2024. The year over year increase is primarily the result of incremental hosting costs associated with acquisitions and an increase in the cost of infrastructure related to growth in our SaaS offerings.

–Cost of perpetual license revenue decreased