Commvault Systems (CVLT) Q1 Earnings Report Preview: What To Look For

Adam Hejl /
2022/05/02 7:10 am EDT
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Data backup provider Commvault (NASDAQ:CVLT) will be reporting results tomorrow before market open. Here's what to look for.

Last quarter Commvault Systems reported revenues of $202.3 million, up 7.65% year on year, beating analyst revenue expectations by 3.91%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a slow revenue growth. The company added 62 enterprise customers paying more than $100,000 annually to a total of 225.

Is Commvault Systems buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Commvault Systems's revenue to grow 5.56% year on year to $201.9 million, slowing down from the 16.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.

Commvault Systems Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

With Commvault Systems being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but the segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 18.4% over the last month. Commvault Systems is down 9.29% during the same time, and is heading into the earnings with analyst price target of $77, compared to share price of $61.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.