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CommVault Systems (CVLT)
NASDAQ:CVLT
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CommVault Systems
(NASDAQ:CVLT)
77Outperform
Positive Factors
Revenue Growth
Commvault’s organic revenue growth has accelerated from low/mid-single digits to mid-teens, indicating strong market performance and potential for future growth.
Subscription Growth
Strong subscription/SaaS growth is expected to continue, benefiting from increased multiproduct adoption, new logo acquisition, and customer expansion.
Negative Factors
Reseller Performance
Four of five resellers missed their Commvault business targets, citing a weak finish to the quarter, due in part to more deal scrutiny and spending hesitation.
Revenue Risk
There is a risk to total revenue and potentially profit in Commvault's seasonally softest quarter.
CommVault Systems (CVLT) vs. S&P 500 (SPY)
Market Cap
$6.73B
Dividend YieldN/A
Average Volume (3M)452.26K
Price to Earnings (P/E)40.1
Beta (1Y)1.14
Revenue Growth15.19%
EPS GrowthN/A
CountryUS
Employees2,882
SectorTechnology
Sector Strength39
IndustrySoftware - Application
Share Statistics
EPS (TTM)3.81
Shares Outstanding43,997,604
10 Day Avg. Volume420,088
30 Day Avg. Volume452,256
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.53
Price to Cash Flow (P/CF)58.90
P/FCF Ratio59.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$187.50Price Target Upside22.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
CommVault Systems Business Overview & Revenue Model
Company DescriptionCommvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; and Commvault Complete Data Protection, a data protection solution. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; Commvault Distributed Storage Platform that offers software-defined storage built on a hyperscale architecture; Metallic Cloud Storage service, which is the easy button to adopt secure and scalable cloud storage; and Metallic Software-as-a-Service. In addition, the company provides technology and business consulting, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers professional and customer support services that include data management-as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small and medium sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.
How the Company Makes MoneyCommVault Systems generates revenue through the sale of its software products and services. The company's revenue model primarily comprises software licenses, product support, and professional services. Software licenses are sold directly to customers or through channel partners, allowing organizations to deploy CommVault's data management solutions within their IT environments. Product support and maintenance services provide recurring revenue, as customers pay for ongoing updates, technical support, and enhancements. Professional services, including consulting, implementation, and training, further contribute to the company's earnings. CommVault also leverages partnerships with cloud service providers and technology vendors to enhance its offerings and expand its market reach. These strategic alliances help drive sales growth and enable the company to address evolving customer needs in data management and protection.
CommVault Systems Financial Statement Overview
Summary
CommVault Systems presents a strong financial profile characterized by consistent revenue growth, sound profitability, and robust cash flow generation. The company’s low leverage and efficient capital use provide a solid foundation for future growth. However, maintaining growth trajectories and managing asset-liability dynamics will be crucial for sustained success.Income Statement
CommVault Systems shows strong performance in income statements with consistent revenue growth, evidenced by a 20% increase in TTM revenue from the previous year. The company maintains healthy profitability margins, with a gross profit margin of 81.3% and a net profit margin of 18.1% in the TTM. EBIT and EBITDA margins stand at 8% and 8.9%, respectively, indicating efficient operational management. However, while profitability is strong, the growth rate deceleration needs monitoring.82
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.04 and a strong equity ratio of 28.1%. The return on equity (ROE) is impressive at 59.5% in the TTM, showcasing excellent use of shareholder funds. The company's low leverage and increasing equity enhance financial stability, though the relatively lower asset base compared to liabilities should be watched.75
Positive
Cash Flow
CommVault demonstrates robust cash flow management, with a significant operating cash flow to net income ratio of 1.23 and a free cash flow to net income ratio of 1.21 in the TTM. Free cash flow has shown solid growth, supporting the company's ability to fund operations and growth initiatives. However, there is a need to maintain this momentum to ensure sustained financial health.88
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 943.87M | 839.25M | 784.59M | 769.59M | 723.47M | 670.88M |
| Gross Profit | |||||
| 767.75M | 687.64M | 649.19M | 655.73M | 614.10M | 553.81M |
| EBIT | |||||
| 75.10M | 75.36M | 54.04M | 41.57M | 106.08M | 17.62M |
| EBITDA | |||||
| 83.76M | 90.44M | -4.68M | 54.44M | -5.36M | 4.52M |
| Net Income Common Stockholders | |||||
| 171.23M | 168.91M | -35.77M | 33.62M | -30.95M | -5.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 174.56M | 312.75M | 287.78M | 267.51M | 397.24M | 331.73M |
| Total Assets | |||||
| 286.01M | 943.91M | 782.57M | 816.08M | 904.17M | 845.08M |
| Total Debt | |||||
| 0.00 | 12.09M | 12.78M | 16.05M | 22.89M | 16.51M |
| Net Debt | |||||
| -169.52M | -300.66M | -275.00M | -251.46M | -374.35M | -271.57M |
| Total Liabilities | |||||
| 127.72M | 665.83M | 596.48M | 560.25M | 510.14M | 433.17M |
| Stockholders Equity | |||||
| 158.30M | 278.08M | 186.10M | 255.83M | 394.03M | 411.90M |
| Cash Flow | Free Cash Flow | ||||
| 206.58M | 199.71M | 167.05M | 173.27M | 115.78M | 85.26M |
| Operating Cash Flow | |||||
| 210.41M | 203.80M | 170.29M | 177.18M | 123.95M | 88.46M |
| Investing Cash Flow | |||||
| -70.90M | -5.52M | -5.29M | -24.44M | 35.47M | -74.00M |
| Financing Cash Flow | |||||
| -168.77M | -170.58M | -135.58M | -276.09M | -74.74M | -39.40M |
CommVault Systems Technical Analysis
Negative
152.89
Price Trends
165.81
Negative
165.68
Negative
153.70
Negative
Market Momentum
-0.65
Negative
49.31
Neutral
26.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Negative. The current price of 152.89 is below the 20-day moving average (MA) of 160.10, below the 50-day MA of 165.81, and below the 200-day MA of 153.70, indicating a bearish trend. The MACD of -0.65 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 26.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVLT.
CommVault Systems Risk Analysis
CommVault Systems disclosed 39 risk factors in its most recent earnings report. CommVault Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CommVault Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $37.08B | 52.32 | 13.63% | ― | 16.20% | 34.71% | |
77 Outperform | $6.73B | 40.14 | 74.05% | ― | 15.19% | ― | |
72 Outperform | $4.47B | 23.14 | 189.40% | ― | 5.05% | 103.11% | |
69 Neutral | $18.61B | ― | 6.85% | ― | 14.82% | 14.06% | |
68 Neutral | $8.20B | 19.59 | -60.11% | ― | 1.86% | 6.21% | |
63 Neutral | $49.96B | ― | -31.43% | ― | 29.21% | -51.47% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% |
* Technology Sector Average
Performance Comparison
CVLT
CommVault Systems
152.89
52.69
52.58%
VEEV
Veeva Systems
221.49
6.76
3.15%
BOX
Box
31.08
3.63
13.22%
NTNX
Nutanix
64.78
-1.20
-1.82%
DBX
Dropbox
26.83
3.56
15.30%
SNOW
Snowflake
139.90
-13.96
-9.07%
CommVault Systems Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -3.42% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, record revenue growth, and a successful expansion of the customer base and partnerships. However, there were some challenges related to foreign exchange headwinds and dilution from recent acquisitions. Overall, the positive aspects of the company's growth and strategic positioning outweigh the challenges faced.Highlights
Record-Breaking Revenue and Growth
Total revenue increased 21% to $263 million. Subscription revenue grew 39% to $158 million. Total ARR improved 21% in constant currency. SaaS ARR jumped 75% in constant currency.
Expansion and Adoption of New Offerings
ARR associated with the Cloud Rewind offering more than doubled since the Appranix acquisition. The company also announced new capabilities for Google Workspace and partnerships with AWS and Microsoft Azure.
Increase in Customer Base and Transactions
Added over 1,000 new subscription customers, surpassing 11,000 customers worldwide, including over 7,000 SaaS customers. Notable large enterprise wins include Equinix, AXA, and Vanderbilt University Medical Center.
Strong Go-to-Market and Partner Ecosystem
Record inflows and pipeline growth. Increased transaction volumes and strong close rates. Contributions from alliance partners like Hitachi, HPE, and Dell.
Improved Financial Outlook
Raised guidance for FY25 with total revenue growth expected to be in the range of 17% at the midpoint. Non-GAAP EBIT margins expected to remain in the range of 20% to 21%.
Lowlights
Foreign Exchange Headwinds
Q3 free cash flow was impacted by material foreign exchange headwinds and tax payments tied to higher than projected full-year pre-tax income.
Dilution from Clumio Acquisition
Operating margins were modestly diluted by the Clumio acquisition, consistent with prior guidance, expected to be dilutive for two to three quarters.
Company Guidance
During Commvault's Q3 fiscal year 2025 earnings call, the company reported impressive financial results and provided guidance for the upcoming periods. Total revenue for Q3 increased by 21% year-over-year to $263 million, driven by a 39% increase in subscription revenue, reaching $158 million. Total Annual Recurring Revenue (ARR) grew 18% to $890 million, with a constant currency growth of 21% to $911 million, and SaaS ARR rose by 75%. The company achieved non-GAAP EBIT margins of 20.8% and expects Q4 subscription revenue to be between $160 million and $164 million, projecting total revenue growth of 18% at the midpoint. For the full fiscal year 2025, Commvault anticipates total ARR growth of 19% to 20%, with subscription ARR expected to rise by 28% to 30%. The company maintains a robust outlook, emphasizing its strategic positioning in the cyber resilience market and its product innovations.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.