Commvault: Fiscal 3Q19 Financial Results

Commvault Systems, Inc. announced its financial results for the third quarter ended December 31, 2018.

N. Robert Hammer, chairman, president and CEO, stated: “With the foundation of Commvault Advance in place, and what we see as a trend of enterprise customers seeking to consolidate their data management solutions, we were able to deliver strong sequential software and products revenue growth of 22%. Our revenue performance, coupled with our continued successful efforts to right-size the business, allowed us to continue to deliver significant Y/Y earnings growth, as evidenced by the 51% year to date growth in non-GAAP operating income. We believe Commvault is well positioned for both our fiscal Q4 and fiscal 2020. During the quarter we also repurchased approximately $54 million of our common stock.”

Total revenues for 3FQ19 were $184.3 million, an increase of 2% Y/Y, and 9% sequentially. Total repeatable revenue was $121.0 million, an increase of 15% year-over-year.

Software and products revenue was $84.5 million, an increase of 4% Y/Y, and 22% sequentially. Subscription and utility annual contract value (ACV) more than doubled Y/Y to approximately $90 million.

Services revenue in the quarter was $99.8 million, an increase of 1% Y/Y and flat sequentially.

On a GAAP basis, income from operations (EBIT) was $10.4 million for the third quarter compared to $3.5 million in the prior year. These third quarter GAAP results in fiscal 2019 included $6.3 million of expenses related to a non-routine shareholder matter and restructuring. These expenses have been excluded from our non-GAAP results and are further discussed in Table IV. Non-GAAP EBIT was $33.1 million in the quarter compared to $22.0 million in the prior year, an increase of 50%.

For 3FQ19, the company reported GAAP net income of $13.4 million, or $0.28 per diluted share. Non-GAAP net income for the quarter was $25.4 million, or $0.54 per diluted share.

Operating cash flow totaled $31.1 million for 3FQ19 compared to $31.2 million in the prior year quarter. Total cash and short-term investments were $457.9 million as of December 31, 2018 compared to $462.4 million as of March 31, 2018.

During 3FQ19, the firm repurchased approximately 937,000 shares of its common stock totaling $54.4 million.