Commvault Systems, Inc. (CVLT) Bundle
A Brief History of Commvault Systems, Inc.
Commvault Systems, Inc. is a global leader in data protection and information management solutions. As of 2024, Commvault has continued to evolve its offerings, focusing on cloud-based services and subscription models to meet changing customer needs.
Company Overview
Founded in 1996, Commvault has established itself in the data management sector, providing software solutions that help organizations manage, protect, and use their data effectively. The company's headquarters is located in Tinton Falls, New Jersey.
Financial Performance
For the six months ended September 30, 2024, Commvault reported a total revenue of $458.4 million, representing a 15% increase from $400.0 million in the same period of 2023. The company achieved a net income of $34.1 million for the first half of fiscal 2025, compared to $25.6 million in the first half of fiscal 2024.
| Metric | 2024 (6 Months) | 2023 (6 Months) |
|---|---|---|
| Total Revenue | $458.4 million | $400.0 million |
| Net Income | $34.1 million | $25.6 million |
| Subscription Revenue | $63.1 million | $47.5 million |
| Perpetual License Revenue | $24.5 million | $27.8 million |
Stock Performance
Commvault's stock has seen fluctuations in response to market conditions and company performance. As of September 30, 2024, the company had a market capitalization of approximately $1.4 billion.
Recent Developments
In April 2024, Commvault completed the acquisition of Appranix, a cloud-native data protection platform. This acquisition is expected to enhance Commvault's capabilities in the cloud services market. The purchase price was approximately $26.3 million, which included contingent consideration based on performance metrics.
| Acquisition Details | Value |
|---|---|
| Purchase Price | $26.3 million |
| Contingent Consideration | Up to $4.0 million |
| Estimated Revenue Contribution (6 months) | $993,000 |
Cash Flow and Capital Management
For the six months ended September 30, 2024, Commvault generated $100.3 million in cash from operating activities, compared to $79.4 million in the prior year. The company has a robust cash position, with cash and cash equivalents totaling $303.1 million at the end of the reporting period.
| Cash Flow Summary | 2024 (6 Months) | 2023 (6 Months) |
|---|---|---|
| Cash from Operating Activities | $100.3 million | $79.4 million |
| Cash and Cash Equivalents | $303.1 million | $283.3 million |
| Net Cash Used in Investing Activities | ($24.3 million) | ($2.0 million) |
| Net Cash Used in Financing Activities | ($92.2 million) | ($76.0 million) |
Market Trends and Future Outlook
Commvault is well-positioned to benefit from the growing demand for cloud-based data management solutions. The shift from traditional software licensing to subscription models is expected to continue, with Commvault focusing on expanding its SaaS offerings. The company's strategy includes enhancing its product suite to meet evolving customer needs in data management and protection.
Conclusion
As Commvault continues to adapt to industry trends and customer demands, its financial performance and strategic acquisitions position it for sustained growth in the competitive data management market.
A Who Owns Commvault Systems, Inc. (CVLT)
Current Shareholder Composition
As of 2024, the ownership of Commvault Systems, Inc. (CVLT) is distributed across various institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investors | Vanguard Group, Inc. | 10.2% |
| Institutional Investors | BlackRock, Inc. | 8.9% |
| Institutional Investors | State Street Corporation | 5.4% |
| Individual Shareholders | CEO Sanjay Mirchandani | 1.5% |
| Individual Shareholders | Board Members | 2.1% |
| Other Shareholders | Public Float | 71.9% |
Recent Stock Performance
Commvault Systems, Inc. (CVLT) has shown a robust stock performance over the past year. The stock price as of October 2024 is approximately $143.09. Below is a summary of the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $143.09 |
| 52-Week High | $150.00 |
| 52-Week Low | $100.00 |
| Market Capitalization | $6.25 billion |
| Dividend Yield | Not Applicable |
Recent Financial Highlights
Commvault reported a net income of $34.09 million for the six months ended September 30, 2024, marking an increase from $25.65 million in the same period in 2023. The following table outlines key financial metrics:
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $34.09 million | $25.65 million |
| Revenue | $457.95 million | $399.15 million |
| Operating Income | $45.21 million | $35.14 million |
| Cash and Cash Equivalents | $303.07 million | $283.29 million |
Insider Transactions
Insider trading activity has been monitored closely, with notable transactions in the past six months:
| Date | Insider | Transaction Type | Shares | Price Per Share |
|---|---|---|---|---|
| April 2024 | Sanjay Mirchandani | Purchased | 10,000 | $125.00 |
| June 2024 | Board Member | Sold | 5,000 | $130.00 |
| August 2024 | Board Member | Purchased | 2,500 | $140.00 |
Future Outlook
Commvault's strategic focus on enhancing its product offerings, particularly in the cloud and cybersecurity sectors, is expected to drive growth. Analysts predict a continued upward trend in revenues and stock performance as the company expands its market presence.
Commvault Systems, Inc. (CVLT) Mission Statement
Overview of Mission Statement
Commvault Systems, Inc. aims to provide comprehensive data protection and management solutions that empower organizations to achieve their business objectives. Their mission emphasizes commitment to innovation, customer success, and operational excellence.
Core Values
- Innovation: Commvault is dedicated to continuously advancing its technology and services.
- Customer Success: The company prioritizes customer satisfaction and success in data management.
- Integrity: Commvault maintains a strong ethical foundation in all business dealings.
- Collaboration: Teamwork and partnership are essential to achieving shared goals.
Financial Performance Indicators
As of September 30, 2024, Commvault reported a net income of $34.1 million, up from $25.6 million in the previous year. This represents a year-over-year increase of approximately 33.6%.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $34.1 | $25.6 |
| Revenue (in millions) | $471.2 | $412.4 |
| Gross Margin (%) | 82% | 81% |
| Operating Expenses (in millions) | $341.9 | $289.6 |
| Cash and Cash Equivalents (in millions) | $303.1 | $283.3 |
Market Positioning
Commvault continues to strengthen its market position in data management and protection through strategic acquisitions and investments in technology. The acquisition of Appranix in April 2024 for $26.3 million enhances Commvault's capabilities in cyber resilience.
Recent Developments
In the first half of fiscal 2025, Commvault's subscription revenue increased by 32% year-over-year, contributing significantly to the overall revenue growth.
| Subscription Revenue Growth | 2024 | 2023 |
|---|---|---|
| Growth Rate (%) | 32% | 25% |
| Total Subscription Revenue (in millions) | $208.1 | $157.5 |
Strategic Objectives
Commvault's strategic objectives include enhancing customer experience, expanding its product offerings, and increasing operational efficiency. The company aims to achieve these goals while maintaining a strong commitment to sustainability and corporate responsibility.
Conclusion on Financial Outlook
Given the current growth trajectory and strong financial performance, Commvault is well-positioned to continue expanding its market share and delivering value to its customers and shareholders.
How Commvault Systems, Inc. (CVLT) Works
Overview of Operations
Commvault Systems, Inc. specializes in data protection and information management solutions. As of 2024, the company emphasizes subscription-based revenue models, which now constitute a significant portion of its overall earnings.
Financial Performance
For the six months ended September 30, 2024, Commvault reported:
- Total revenues: $442.4 million, an increase of 15% year over year.
- Net income: $34.1 million, compared to $25.6 million in the previous year.
- Comprehensive income: $34.5 million, up from $24.5 million year over year.
Revenue Breakdown
Revenue sources for the six months ended September 30, 2024 included:
| Revenue Source | Amount (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Subscription Revenue | $263.1 | 32% |
| Perpetual License Revenue | $22.6 | -12% |
| Customer Support Revenue | $87.8 | 0% |
| Other Services Revenue | $69.3 | -5% |
Cost of Revenues and Gross Margin
For the six months ended September 30, 2024, the cost of revenues was distributed as follows:
| Cost Category | Cost (in millions) | Gross Margin (%) |
|---|---|---|
| Subscription | $37.1 | 86% |
| Perpetual License | $0.8 | 97% |
| Customer Support | $29.6 | 81% |
| Other Services | $15.2 | 30% |
| Total | $82.7 | 82% |
Operating Expenses
Operating expenses for the six months ended September 30, 2024 were as follows:
| Expense Category | Amount (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Sales and Marketing | $102.3 | 17% |
| Research and Development | $34.3 | 8% |
| General and Administrative | $37.5 | 18% |
| Total Operating Expenses | $341.9 | 16% |
Cash Flow Summary
For the six months ended September 30, 2024, Commvault's cash flow details were as follows:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Net cash provided by operating activities | $100.3 |
| Net cash used in investing activities | ($24.3) |
| Net cash used in financing activities | ($92.2) |
| Net decrease in cash and cash equivalents | ($9.7) |
Stock Information
As of September 30, 2024, Commvault had the following stock-related data:
| Category | Amount |
|---|---|
| Total shares repurchased | 834,000 |
| Average price paid per share | $143.09 |
| Remaining dollar value for repurchase | $153.2 million |
Recent Acquisitions
Commvault completed the acquisition of Appranix, Inc. on April 15, 2024, for a total purchase price of $26.3 million, which included:
- Cash consideration: $21.0 million
- Restricted stock units: $4.9 million
- Contingent consideration: up to $4.0 million based on performance metrics.
Future Outlook
Commvault continues to focus on enhancing its product offerings and expanding its market presence, particularly in the subscription services sector, as indicated by its significant year-over-year growth in subscription revenue.
How Commvault Systems, Inc. (CVLT) Makes Money
Revenue Sources
Commvault Systems, Inc. generates revenue primarily through four main sources: subscription arrangements, perpetual software licenses, customer support contracts, and other services. As of September 30, 2024, the breakdown of revenue sources is as follows:
| Revenue Source | Q2 FY2025 Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Subscription | $134.0 | 57.5% |
| Perpetual License | $10.5 | 4.5% |
| Customer Support | $77.7 | 33.3% |
| Other Services | $11.0 | 4.7% |
| Total Revenue | $233.3 | 100% |
Subscription Revenue
Subscription revenue has been the most significant driver of growth for Commvault. For the six months ended September 30, 2024, subscription revenue increased by $63.1 million, or 32% year over year, accounting for 56% of total revenues, compared to 49% in the same period of the previous year. This growth is largely attributed to a 72% increase in SaaS revenue and a 17% increase in term-based license revenue, primarily from larger transactions and increased average selling prices.
Perpetual License Revenue
Perpetual license revenue decreased by $3.3 million, or 12% year over year, and accounted for 5% of total revenues for the six months ended September 30, 2024. The decline reflects a strategic shift towards subscription-based models, with perpetual licenses primarily sold in specific verticals and geographies.
Customer Support Revenue
Customer support revenue remained relatively flat compared to the previous year, totaling $153.9 million for the six months ended September 30, 2024. This stability was due to a $12.4 million increase in support related to term-based license arrangements, offset by a similar decline in perpetual license support renewals.
Other Services Revenue
Other services revenue, which includes professional services such as consultation and training, decreased by $1.0 million, or 5% year over year. This fluctuation is generally influenced by the timing of service delivery.
Geographic Revenue Distribution
Commvault's revenue is distributed across two main geographic regions: the Americas and International. For the six months ended September 30, 2024, the revenue breakdown was:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Americas | $144.5 | 62% |
| International | $88.8 | 38% |
| Total Revenue | $233.3 | 100% |
Cost of Revenues and Gross Margin
The total cost of revenues for the three months ended September 30, 2024, was $42.9 million, representing 18% of total revenues. The gross margin was 82%, with subscription costs accounting for $19.5 million and a gross margin of 85%.
Operating Expenses
Operating expenses for the six months ended September 30, 2024, totaled $341.9 million, with the following breakdown:
| Expense Type | Amount (in millions) | Percentage of Total Operating Expenses |
|---|---|---|
| Sales and Marketing | $197.9 | 58% |
| Research and Development | $66.9 | 20% |
| General and Administrative | $65.0 | 19% |
| Restructuring | $5.2 | 1% |
| Total Operating Expenses | $341.9 | 100% |
Net Income
For the six months ended September 30, 2024, Commvault reported a net income of $34.1 million, or $0.76 per diluted share. This represents an increase from the $25.6 million net income reported in the same period of the previous year.
Recent Acquisitions
On April 15, 2024, Commvault completed the acquisition of Appranix, a cloud cyber resilience company, for a total purchase price of $26.3 million. This acquisition is expected to enhance Commvault's product offerings in the cyber resilience market.
Financial Outlook
Commvault anticipates continued growth in subscription revenues through both term-based licenses and SaaS offerings. The company remains focused on expanding its distribution channels, which include both direct sales and partnerships with value-added resellers.
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Article updated on 8 Nov 2024
Resources:
- Commvault Systems, Inc. (CVLT) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Commvault Systems, Inc. (CVLT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Commvault Systems, Inc. (CVLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.