Commvault Systems Earnings: What To Look For From CVLT

Jabin Bastian /
2023/01/30 4:17 am EST
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Data backup provider Commvault (NASDAQ:CVLT) will be reporting earnings tomorrow morning. Here's what you need to know.

Last quarter Commvault Systems reported revenues of $188 million, up 5.74% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth. The company lost 11 enterprise customers paying more than $100,000 annually and ended up with a total of 173.

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 decline 3.12% year on year to $199.5 million, slowing down from the 7.65% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Commvault Systems Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.16%.

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 data and analytics software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 14.4% over the last month. Commvault Systems is down 1.72% during the same time, and is heading into the earnings with analyst price target of $69.33, compared to share price of $62.81.

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.