Commvault: Fiscal 4Q22 Financial Results

Commvault Systems, Inc. announced its financial results for the fourth quarter and fiscal year ended March 31, 2022.

“We are pleased to have delivered another record quarter to cap off the best year in our history,” said Sanjay Mirchandani, president and CEO. “Demand is strong for our differentiated portfolio, our team is executing, and we are taking market share. We are excited about our growth prospects in the new fiscal year.“
         
Total revenues for 4FQ22 were $205.9 million, an increase of 8% Y/Y. Total recurring revenue was $173.2 million, an increase of 19% Y/Y. For FY22, total revenues were $769.6 million, an increase of 6% from FY21.

Annualized recurring revenue (ARR), which is the annualized value of all active Commvault recurring revenue streams at the end of the reporting period, was $583.3 million as of March 31, 2022, up 13% from March 31, 2021. Software and products revenue in 4FQ22 was $100.5 million, an increase of 12% Y/Y.  The yearly increase in software and products revenue was driven by a 19% increase in revenue from larger deals (deals greater than $0.1 million in software and products revenue).

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Larger deal revenue represented 73% of software and products revenue in the three months ended March 31, 2022.  The number of larger deal revenue transactions increased 14% Y/Y to 226 deals for the three months ended March 31, 2022. The average dollar amount of larger deal revenue transactions was approximately $327,000, representing a 4% increase from the 3FQ22.

Software and products revenue for FY22 was $356.5 million, an increase of 9% from FY21. The Y/Y increase in software and products revenue was driven by a 13% increase in revenue from larger deals.

Larger deal revenue represented 72% of software and products revenue in FY22. The number of larger deal revenue transactions increased 19% from FY21 to 799 deals. The average dollar amount of larger deal revenue transactions was approximately $320,000, representing a 4% decrease from the prior year.

Services revenue in 4FQ22 was $105.5 million, up 3% Y/Y. For FY22, services revenue was $413.1 million, up 4% from fiscal 2021. Services revenue growth was driven by Commvault’s software-as-a-service offerings. 

On a GAAP basis, income from operations (EBIT) was $11.4 million for 4FQ22 compared to $10.3 million in 4FQ21. Non-GAAP EBIT was $46.6 million in 4FQ22 compared to $38.8 million in 4FQ21.

On a GAAP basis, income from operations (EBIT) for FY22 was $41.6 million compared to loss of $22.3 million in FY21. Non-GAAP income from operations (EBIT) was $161.7 million in 4FQ22 compared to $137.5 million in 3FQ22.

For 4FQ22, the company reported net income of $8.0 million. Non-GAAP net income for 4FQ22 was $34.6 million, or $0.75 per diluted share.

For FY22, it reported a net income of $33.6 million. Non-GAAP net income for FY22 was $118.7 million, or $2.51 per diluted share.

Operating cash flow totaled $87.1 million for 4FQ22 compared to $64.7 million in the prior year quarter.  For FY22, operating cash flow was $177.2 million, compared to $124.0 million for FY21. Total cash and short-term investments were $267.5 million as of March 31, 2022 compared to $397.2 million as of March 31, 2021. There were no borrowings vs. the revolving line of credit.

During 4FQ22, the software firm repurchased approximately 600,000 shares of its common stock totaling $39.8 million at an average price of approximately $66.29 per share. During FY22, it repurchased approximately 4.3 million shares of its common stock totaling $305.2 million at an average price of approximately $70.87 per share.

On April 21, 2022, the board of directors approved a new share repurchase program of up to $250.0 million. The board’s authorization permits to make the firm purchases of its common stock from time to time in the open market or through privately negotiated transactions, subject to market and other conditions. The board’s authorization has no expiration date.

“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,” said Mirchandani.