Data protection software firm Commvault Systems Inc. closed on its fiscal 2022 year today, posting fourth quarter earnings and revenue 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 just 64 cents per share on sales of $202 million, so the results were encouraging.
For its full fiscal year 2022, Commvault said it 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. We are excited for our growth prospects in the new fiscal year.”
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 customer’s 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. This 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, up
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 totaled $413.1 million, up 4%.
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, and allows companies to accurately forecast future revenue growth.
Looking to the next quarter, Commvault offered a forecast of approximately $195 million in first 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 its chief financial officer Brian Carolan is resigning from his role at the company after more than 21 years of employment, effective from 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 as Merrill and Carolan are longtime colleagues who will be working closely to ensure a smooth transition.
“Gary’s appointment as our new CFO reflects the deep bench of talent at Commvault,” Mirchandani said of the company’s new CFO. “He has held several senior roles at Commvault including Chief Accounting Officer and most recently, as Chief of Business Operations, Gary has been leading our transformation initiatives to build a modernized business platform.”
During the quarter, Commvault repurchased approximately 600,000 shares of common stock worth around $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.