CommVault Systems Earnings: Climbs Beyond Analyst Expectations

CommVault Systems, Inc. (NASDAQ:CVLT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9.37%.

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CommVault Systems, Inc. Earnings Cheat Sheet

Results: Net income increased 316.2% to $29.8 million (39 cents per diluted share) in the quarter versus a net gain of $7.16 million in the year-earlier quarter.

Revenue: Rose 23.6% to $128.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CommVault Systems, Inc. reported adjusted net income of 39 cents per share. By that measure, the company beat the mean analyst estimate of $0.32. It beat the average revenue estimate of $122.67 million.

Quoting Management: N. Robert Hammer, CommVault’s Chairman, President and CEO stated, “We achieved excellent third quarter financial performance which was highlighted by record results in quarterly revenues of $128.1 million, non-GAAP operating income of $29.8 million and non-GAAP EPS of $0.39.  Our year-over-year software revenue growth of 28% was driven by an all-time high volume of enterprise deals (transactions greater than $100,000) and outstanding execution from all of our major geographic operations…

…During the third quarter, we continued to make significant investments to position the company for long term growth while still delivering record non-GAAP operating profits.  We are in an excellent position to continue to accelerate our pace of innovation in our addressable markets to provide unique value to our customers, while continuing to deliver above market financial results on a consistent basis.”

Key Stats:

Revenue increased 8.41% from $118.16 million in the previous quarter. Net income increased 114.39% from $13.9 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.32. For the current year, the average estimate has moved up from a profit of $1.3 to a profit of $1.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)