Commvault closes on fiscal 2022 with solid fourth quarter earnings and revenue beat

Commvault closes on fiscal 2022 with solid earnings and revenue beat

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Data protection software firm Commvault Systems Inc. closed its fiscal 2022 year by posting fiscal fourth-quarter earnings and revenue today that comfortably beat expectations.

The company reported earnings before certain costs such as stock compensation of 75 cents per share on revenue of $205.9 million, up 8% from one year ago and resulting in a net income of $8 million for the quarter. Wall Street had been expecting Commvault to report earnings of 64 cents per share on sales of $202 million, so the results were encouraging.

For its full fiscal year 2022, Commvault delivered revenue of $769.6 million, resulting in net income of $33.6 million.

Commvault President and Chief Executive Sanjay Mirchandani (pictured) said the company delivered a record quarterly performance, capping off the best year in its history. “Demand is strong for our differentiated portfolio, our team is executing and we are taking market share.”

Commvault is in the data protection software business. Enterprises use its software to back up their critical business records and protect them from outages and cyberattacks. The company also competes in some related areas, selling data backup appliances that protect information housed in customers’ on-premises data centers. It also sells data management software that customers use to reduce their storage costs.

Commvault said its software and products revenue came to $100.5 million during the quarter, up 12% from a year ago. The increase, it said, was driven by a 19% jump in revenue from larger deals, which accounted for 73% of the category’s total sales. For the full year, software and products revenue came to $356.5 million.

Earning slightly more was Commvault’s services business, which drove $105.5 million in revenue, up 3% from a year ago, thanks to what the company said was strong interest in its software-as-a-service offerings. For fiscal 2022, services revenue rose 4%, to $413.1 million.

Commvault also reported annualized recurring revenue of $583.3 million at the end of the quarter, up 13% from one year ago. ARR, which refers to the normalized annual revenue from existing subscriptions, is an important metric because it provides an overview of how a business is performing year-on-year, allowing companies to forecast future revenue growth more accurately.

Looking to the next quarter, Commvault offered a forecast of about $195 million in firs-quarter revenue, just ahead of Wall Street’s consensus estimate of $193.7 million. The company declined to offer a full-year forecast.

In other news, Commvault said Chief Financial Officer Brian Carolan is resigning from his role at the company after more than 21 years of employment, effective July 1. The good news is the company has a replacement already lined up, with its current chief of business operations, Gary Merrill, set to take over as the new CFO upon Carolan’s departure. Commvault said it expects minimal disruption since Merrill and Carolan are longtime colleagues who will be working closely to ensure a smooth transition.

“As chief of business operations, Gary has been leading our transformation initiatives to build a modernized business platform,” Mirchandani said.

During the quarter, Commvault repurchased about 600,000 shares of common stock worth $39.8 million. The company’s board also announced a new share repurchase program beginning in fiscal 2023 that will see it spend up to $250 million buying back its stock.

“We continue to believe that the strength of our balance sheet, coupled with the current and long-term outlook for our business, provides an opportunity to create value for our long-term shareholders,” Mirchandani said.

Photo: SiliconANGLE

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