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CommVault Systems (CVLT)
NASDAQ:CVLT
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CommVault Systems
(NASDAQ:CVLT)
76Outperform
Positive Factors
Financial Performance
Commvault reported healthy top- and bottom-line beats in its fiscal fourth quarter and provided guidance above consensus across all key metrics.
Market Position
Commvault is benefiting from sharper go-to-market execution with improved messaging around SaaS and cyber-resilience.
Product Development
Momentum in emerging products such as Cleanroom Recovery, ThreatWise, and Active Directory is a key focus.
Negative Factors
Financial Guidance
Free cash flow margins were guided below consensus due to higher expected cash taxes.
Revenue Growth
ARR growth includes some inorganic contribution, which may affect perceived momentum.
CommVault Systems (CVLT) vs. S&P 500 (SPY)
Market Cap
$7.35B
Dividend YieldN/A
Average Volume (3M)466.73K
Price to Earnings (P/E)99.1
Beta (1Y)1.30
Revenue Growth18.63%
EPS Growth-55.09%
CountryUS
Employees2,882
SectorTechnology
Sector Strength65
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.69
Shares Outstanding43,997,604
10 Day Avg. Volume506,123
30 Day Avg. Volume466,732
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.90
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.58
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$185.86Price Target Upside11.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
CommVault Systems Business Overview & Revenue Model
Company DescriptionCommVault Systems, Inc. is a publicly traded data protection and information management software company, primarily operating in the technology sector. Founded in 1996 and headquartered in Tinton Falls, New Jersey, CommVault provides data management and protection solutions, including backup and recovery, cloud data management, and information governance. The company serves a wide range of industries, helping organizations protect, access, and use their data more efficiently across physical, virtual, and cloud environments.
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 with 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 | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 839.25M | 784.59M | 769.59M | 723.47M | 670.88M | Gross Profit |
| 687.64M | 649.19M | 655.73M | 614.10M | 553.81M | EBIT |
| 75.36M | 54.04M | 41.57M | 106.08M | 17.62M | EBITDA |
| 90.44M | -4.68M | 54.44M | -5.36M | 4.52M | Net Income Common Stockholders |
| 168.91M | -35.77M | 33.62M | -30.95M | -5.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 312.75M | 287.78M | 267.51M | 397.24M | 331.73M | Total Assets |
| 943.91M | 782.57M | 816.08M | 904.17M | 845.08M | Total Debt |
| 12.09M | 12.78M | 16.05M | 22.89M | 16.51M | Net Debt |
| -300.66M | -275.00M | -251.46M | -374.35M | -271.57M | Total Liabilities |
| 665.83M | 596.48M | 560.25M | 510.14M | 433.17M | Stockholders Equity |
| 278.08M | 186.10M | 255.83M | 394.03M | 411.90M |
| Cash Flow | Free Cash Flow | |||
| 199.71M | 167.05M | 173.27M | 115.78M | 85.26M | Operating Cash Flow |
| 203.80M | 170.29M | 177.18M | 123.95M | 88.46M | Investing Cash Flow |
| -5.52M | -5.29M | -24.44M | 35.47M | -74.00M | Financing Cash Flow |
| -170.58M | -135.58M | -276.09M | -74.74M | -39.40M |
CommVault Systems Technical Analysis
Positive
166.02
Price Trends
159.96
Positive
162.38
Positive
156.87
Positive
Market Momentum
1.98
Negative
56.84
Neutral
82.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVLT, the sentiment is Positive. The current price of 166.02 is above the 20-day moving average (MA) of 154.42, above the 50-day MA of 159.96, and above the 200-day MA of 156.87, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 82.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.88B | 44.78 | 39.29% | 0.13% | 14.29% | 151.38% | |
76 Outperform | $6.63B | 13.92 | 62.32% | ― | 22.72% | ― | |
76 Outperform | $7.35B | 99.06 | 25.23% | ― | 18.63% | -55.09% | |
66 Neutral | $4.65B | 486.34 | 2.11% | ― | 16.42% | ― | |
64 Neutral | $2.90B | 102.15 | 1.53% | ― | -2.03% | -68.59% | |
64 Neutral | $8.75B | ― | -20.84% | ― | -17.10% | 21.82% | |
59 Neutral | $10.75B | 10.37 | -6.64% | 3.00% | 7.30% | -12.02% |
* Technology Sector Average
Performance Comparison
CVLT
CommVault Systems
166.02
58.59
54.54%
PEGA
Pegasystems
92.09
32.64
54.90%
BILL
Bill.com Holdings
45.49
-11.09
-19.60%
ZI
ZoomInfo Technologies
8.63
-7.49
-46.46%
U
Unity Software
21.19
-3.55
-14.35%
CWAN
Clearwater Analytics Holdings
22.91
5.24
29.65%
CommVault Systems Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q4-2025)
| % Change Since: 0.04%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, strategic customer wins, and effective expansion of product and partner ecosystems. Despite concerns about the macro environment and flat operating margin guidance, the company's overall performance and outlook appear robust.Q4-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Total revenue increased by 23% to $275 million. Subscription revenue grew 45% to $173 million. Total ARR improved 21% to $930 million, and SaaS ARR jumped 68% to $281 million.
Strong Performance Across Regions
Q4 saw strong performance across geographic regions, with EMEA having a particularly strong quarter.
Strategic Customer Wins
Notable customer wins included American Tower, Cinemark Holdings, Janus International, McGraw Hill, and Blue Origin, reflecting strong tailwinds in the industry.
Product and Partner Ecosystem Expansion
Commvault extended its partner ecosystem with integrations with leading security players like Akamai, Google Threat Intelligence, and Splunk. Marketplace transactions grew nearly 50% quarter on quarter and over 250% year on year.
High SaaS Net Dollar Retention Rate
The SaaS net dollar retention rate remained steady at 127%, driven by upsell and cross-sell opportunities.
Profitability and Cash Flow
Fiscal Q4 gross margins were 83.1%, and Q4 free cash flow was $76 million, with full-year free cash flow of $204 million.
Negative Updates
Macro Environment Uncertainty
There are some concerns about the macro environment and potential changes in demand trends, although no significant changes were noted between Q4 and Q1.
Flat Operating Margin Guidance
Operating margin guidance remains flat year over year, which may imply a balance between growth and investment.
Company Guidance
In the Q4 fiscal year 2025 earnings call for Commvault Systems, Inc., the company reported a 23% year-over-year increase in total revenue, reaching $275 million. Subscription revenue saw a significant jump of 45% to $173 million, while total Annual Recurring Revenue (ARR) improved by 21% to $930 million. Notably, SaaS ARR surged by 68% to $281 million. The company achieved a Rule of 40 metric of 41 for the full fiscal year, highlighting a balance of growth and profitability. For fiscal year 2026, Commvault anticipates subscription revenue to grow by 24%, with total revenue expected to increase by 14%, reaching between $1.13 billion and $1.14 billion. The guidance reflects a focus on leveraging strong secular tailwinds related to cyber resilience, continuous business operations, and expanding partnerships, projecting confidence in capturing a significant market opportunity estimated at $24 billion.CommVault Systems Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
CommVault Systems Expands Credit Facility to $300 Million
Positive
Apr 15, 2025
On April 15, 2025, Commvault Systems, Inc. refinanced its existing $100 million senior secured revolving credit facility and established a new five-year senior secured revolving credit facility, increasing its total borrowing capacity to $300 million. This strategic financial maneuver, facilitated by JPMorgan Chase Bank, N.A., aims to enhance the company’s financial flexibility and operational capacity, potentially impacting its market positioning and stakeholder interests.
Spark’s Take on CVLT Stock
According to Spark, TipRanks’ AI Analyst, CVLT is a Outperform.
CommVault Systems exhibits strong financial performance with consistent revenue growth and profitability, supported by a positive outlook from the latest earnings call. While technical indicators show mixed signals, the high P/E ratio suggests premium valuation expectations. The company’s strategic positioning and product innovations offer promising growth prospects, despite minor headwinds from foreign exchange and recent acquisitions.
To see Spark’s full report on CVLT stock, click here.
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.