Commvault Q3 revenue beats estimates on demand for AI-enabled platforms

Overview

• Data protection firm's fiscal Q3 revenue rose 19% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company's ARR grew 22% yr/yr, reaching $1,085 mln

Outlook

• Commvault expects Q4 revenue between $305 mln and $308 mln

• Company anticipates full-year revenue between $1,177 mln and $1,180 mln

• Commvault projects full-year free cash flow between $215 mln and $220 mln

Result Drivers

• AI-ENABLED PLATFORM - CEO Sanjay Mirchandani attributed growth to customer demand for AI-enabled platforms addressing identity and emerging threats

• SUBSCRIPTION REVENUE GROWTH - Subscription revenue increased 30% yr/yr, driven by term-based licenses and SaaS offerings

• NEW PARTNERSHIPS - Partnerships with Delinea and Pinecone expanded data security and recovery offerings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Commvault Systems Inc is $187.00, about 44.6% above its January 26 closing price of $129.36

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nPn6n41VWa

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