Thomas Lehi's questions to Commvault Systems Inc (CVLT) leadership • Q3 2025
Question
Thomas Lehi inquired about the term license business, specifically regarding renewal conversations, the impact of cyber offerings on expansion, and the outlook for net retention rates. He also asked about the margin headwind from the Clumio acquisition and the company's strategy for balancing growth and operating leverage in fiscal '26.
Answer
CFO Jennifer DiRico confirmed that Q3 was a strong term license renewal quarter and that the 105-110% NRR range remains appropriate, while pointing to the higher 127% SaaS NRR as the key expansion opportunity. She quantified the Clumio margin dilution at 1-2 points for a few quarters. CEO Sanjay Mirchandani added that the company will remain balanced but will continue investing to capture market share, highlighting the consistent achievement of the 'Rule of 40'.