CommVault Systems Stock Plunges After Q2 Miss

CommVault Systems Stock Plunges After Q2 Miss
  • CommVault Systems Inc CVLT reported second-quarter FY22 revenue growth of 4% year-on-year to $177.8 million, missing the consensus of $184.8 million.
  • Annualized recurring revenue (ARR) rose 12% Y/Y to $542.6 million as of September 30, 2021.
  • Software and products revenue rose 4% Y/Y to $75.3 million, driven by a 6% increase in revenue from portfolio deals. Larger deal revenue transactions rose 9% Y/Y.
  • Services revenue increased 4% Y/Y to $102.6 million.
  • Margins: The gross margin expanded 72 basis points to 85.1%. The non-GAAP EBIT margin expanded 50 bps to 17.4%.
  • The non-GAAP EPS of $0.48 missed the consensus of $0.57.
  • It generated $26.1 million in operating cash flow. The company held $295.8 million in cash and equivalents.
  • Price action: CVLT shares closed lower by 19.36% at $61.04 on the last check Tuesday.

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