Core Insights - Commvault has appointed Bill O'Connell as Chief Security Officer, bringing nearly 20 years of experience in cybersecurity, risk, and data privacy [1][2] - O'Connell's previous roles include leadership positions at Roche and ADP, where he focused on protecting critical data and infrastructure [1] - The company aims to enhance its cyber resilience offerings and strengthen its position as a trusted partner in the evolving threat landscape [1][2] Company Overview - Commvault is recognized as a leader in cyber resilience, serving over 100,000 organizations globally [3] - The company provides a unique cyber resilience platform that integrates data security and rapid recovery across various workloads, emphasizing low total cost of ownership (TCO) [3]

Core Viewpoint - Commvault Systems (CVLT) has experienced a significant decline in stock performance recently, with a return of -12.3% over the past month, compared to the S&P 500's -7.5% and the Zacks Computer - Software industry's -7.8% [2] Earnings Estimates - For the current quarter, Commvault is expected to post earnings of $0.91 per share, reflecting a year-over-year increase of +15.2% [5] - The consensus earnings estimate for the current fiscal year is $3.53, indicating a year-over-year change of +18.5% [5] - For the next fiscal year, the consensus earnings estimate is $4.03, representing a change of +14.1% from the previous year [6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $262.8 million, indicating a year-over-year change of +17.7% [9] - For the current fiscal year, the sales estimate is $975.08 million, reflecting a +16.2% change, while the next fiscal year's estimate is $1.1 billion, indicating a +13.3% change [9] Last Reported Results and Surprise History - Commvault reported revenues of $262.63 million in the last quarter, a year-over-year increase of +21.1% [10] - The EPS for the same period was $0.94, compared to $0.78 a year ago, with a revenue surprise of +6.97% and an EPS surprise of +8.05% [11] Valuation - Commvault is graded F on the Zacks Value Style Score, indicating it is trading at a premium to its peers [15] - The evaluation of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's valuation relative to its historical values and peers [13][14] Conclusion - The current Zacks Rank of 3 suggests that Commvault may perform in line with the broader market in the near term, despite the recent market buzz [16]

Group 1 - Commvault Systems (CVLT) closed at $161.09, with a daily increase of +0.33%, outperforming the S&P 500's loss of 1.07% [1] - Over the past month, Commvault's shares have decreased by 13.17%, while the Computer and Technology sector and the S&P 500 have lost 11.12% and 7.03%, respectively [1] Group 2 - The upcoming financial results for Commvault are anticipated to show an EPS of $0.91, reflecting a 15.19% increase from the previous year [2] - Revenue is expected to reach $262.8 million, indicating a 17.69% rise compared to the same quarter last year [2] Group 3 - For the entire year, the Zacks Consensus Estimates predict earnings of $3.53 per share and revenue of $975.08 million, representing increases of +18.46% and +16.18% year-over-year, respectively [3] Group 4 - Changes in analyst estimates for Commvault are important as they indicate the evolving business trends, with positive revisions suggesting an optimistic outlook [4] Group 5 - The Zacks Rank system, which reflects estimate changes, has a strong track record, with 1 rated stocks averaging a +25% annual return since 1988 [6] - Commvault currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining steady over the past month [6] Group 6 - Commvault is trading at a Forward P/E ratio of 45.48, which is a premium compared to the industry average Forward P/E of 25.46 [7] - The Computer - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 128, placing it in the top 50% of over 250 industries [7] Group 7 - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - Commvault has appointed Ha Hoang as the new Chief Information Officer (CIO), who brings over 25 years of experience in enterprise technology transformations for Fortune 500 companies [1][3] - Hoang will focus on advancing next-generation cloud, security, and AI technology initiatives, while also engaging with customers to demonstrate the value of Commvault's technology [2][4] - Commvault is recognized as a leader in cloud-first cyber resilience, providing innovative solutions to help organizations combat escalating cyber threats [4][5] Company Overview - Commvault is a leading provider of cyber resilience and data protection solutions for the hybrid cloud, serving over 100,000 organizations [5] - The company offers a unique cyber resilience platform that integrates data security and rapid recovery across various workloads, aiming for the lowest total cost of ownership (TCO) [5] Leadership Background - Before joining Commvault, Hoang served as Group Vice President of Cloud Engineering and Infrastructure at UKG, where she led global cloud transformation projects [3] - Hoang has also held leadership roles at McKinsey & Company and Wipro, focusing on technology strategies that yield significant business results [3]

Core Insights - Commvault's cyber resilience and recovery technologies are essential for healthcare organizations to recover Electronic Health Records (EHR) and ensure uninterrupted patient care while complying with HIPAA guidelines [1][3][4] Industry Context - The healthcare sector is facing significant cyber threats, with over 31 million patient records exposed in data breaches in the first half of 2024, and attacks on hospitals costing the U.S. healthcare system over $21.9 billion since 2018 [2] - Cyber criminals target healthcare organizations due to their reliance on sensitive data, creating a cycle of ransom and jeopardizing patient care [2] Commvault Solutions - Commvault's Cleanroom Recovery and Cloud Rewind enable rapid recovery of clean data and cloud applications, helping healthcare organizations maintain continuous patient care and comply with evolving regulations [3][5] - Cleanroom Recovery creates a ransomware-free environment for restoring medical records from air-gapped backups, while Cloud Rewind allows for near-instant recovery of entire application environments, including critical EHR systems [9] Partnerships and Demonstrations - Commvault collaborates with Microsoft to deliver cloud-powered cyber resilience solutions that protect patient data and minimize operational downtime [6] - Live demonstrations of Commvault's solutions will be showcased at HIMSS25, providing insights into transforming resilience strategies for healthcare organizations [8] Company Overview - Commvault is recognized as a leader in cyber resilience, serving over 100,000 organizations and offering a comprehensive platform for data security and rapid recovery across various workloads [11]

Core Insights - Commvault is experiencing strong momentum in the healthcare and life sciences sectors, as organizations increasingly depend on its solutions for protecting, managing, and recovering critical patient and research data [1][5][6] Group 1: Cyber Resilience Solutions - Healthcare leaders, including Hamilton Health Sciences and various Fortune 500 providers, are utilizing Commvault's cyber resilience solutions to safeguard Electronic Health Records (EHR) and minimize operational downtime [2] - Commvault's solutions help healthcare organizations lower total cost of ownership while ensuring the security of patient information [2] - The company offers unique resilience and recovery offerings such as Cleanroom Recovery and Cloud Rewind, which are critical for healthcare organizations [5] Group 2: Customer Testimonials - Prime Healthcare Services emphasizes that Commvault enables rapid recovery of critical patient data, ensuring operational continuity during ransomware attacks [3] - Bilthoven Biologicals appreciates the simplicity of Commvault's dashboard, allowing quick restoration of virtual machines and backups, which is essential for handling sensitive data [4] - Baptist Health highlights the tool's ability to maintain a stable copy of data, facilitating easier access and security [4] Group 3: Industry Threat Landscape - The healthcare sector is a prime target for cyberattacks, with ransomware being one of the top threats, and data breaches averaging $9.77 million [6] - Commvault collaborates with healthcare organizations to secure mission-critical data and ensure continuous patient care through effective backup and recovery solutions [6] Group 4: Company Overview - Commvault is recognized as a leader in cyber resilience, assisting over 100,000 organizations in maintaining data safety and business continuity [7][8] - The company has helped various healthcare providers reduce costs and improve operational efficiency, such as the British Medical Association and Allina Health [7]

Core Viewpoint - The average brokerage recommendation (ABR) for Commvault Systems (CVLT) is 1.89, indicating a recommendation between Strong Buy and Buy, based on nine brokerage firms' ratings [2] Brokerage Recommendations - The current ABR of 1.89 is derived from nine recommendations, with five being Strong Buy, accounting for 55.6% of all recommendations [2] - Despite the positive ABR, relying solely on brokerage recommendations may not be advisable, as studies suggest they often fail to guide investors effectively [4][9] Analyst Bias and Limitations - Brokerage analysts tend to exhibit a positive bias due to their firms' vested interests, leading to a higher number of favorable ratings compared to negative ones [5][9] - This misalignment of interests can result in misleading insights regarding a stock's future price movement [6] Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to ABR [7][10] - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, unlike the potentially outdated ABR [11] Commvault's Earnings Estimates - The Zacks Consensus Estimate for Commvault's current year earnings remains unchanged at $3.53, suggesting stable analyst views on the company's earnings prospects [12] - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Commvault, indicating a cautious approach despite the Buy-equivalent ABR [13]

Core Insights - Commvault is showcasing its cyber resilience and data protection solutions for healthcare at HIMSS25 in Las Vegas, emphasizing the importance of safeguarding patient data against ransomware and ensuring continuous business operations [1][2]. Group 1: Event Details - Commvault will be present at Booth C1027 during HIMSS25 from March 3-6, offering insights on protecting healthcare data [1]. - The company will conduct speaking sessions and a cyber meltdown simulation to highlight the critical need for comprehensive cyber resilience in healthcare [1][2]. Group 2: Recommended Approaches - Commvault's approach includes building a business case for enhanced cyber readiness investments, with a session scheduled for March 4 at 2:40 PM [2]. - A simulation titled "Healthcare Minutes to Meltdown" will take place on March 4 at 3:00 PM, allowing participants to experience the impact of cyberattacks [2]. Group 3: Company Overview - Commvault is recognized as a leader in cyber resilience, serving over 100,000 organizations and providing a platform that combines data security and rapid recovery across various workloads [4]. - The company emphasizes the importance of proactive investments in cyber readiness for healthcare organizations to protect sensitive records and minimize downtime [4].

Core Insights - Commvault has announced the availability of CIS-hardened images for its Cloud Platform, enabling secure and easy deployment across major cloud marketplaces such as AWS, Azure, Google Cloud, and VMware [1][3]. Group 1: Product Features - CIS-hardened images are pre-configured to align with the Center for Internet Security (CIS) Benchmarks, reducing configuration vulnerabilities that contribute to 23% of cloud infrastructure attacks [2]. - The images are built on a hardened Rocky Linux 8 operating system, designed to protect both software and infrastructure layers [5]. - These images provide pre-built compliance checks, enhanced cybersecurity by minimizing vulnerabilities, and streamlined compliance mapping to key security frameworks like NIST CSF, HIPAA, PCI-DSS, and ISO 27001 [6]. Group 2: Market Context - The announcement comes as organizations accelerate their move to the cloud, with IDC projecting public cloud services spending to double to $1.6 trillion by 2028 [3]. - Commvault has introduced various cloud-first offerings in the past year, including Cleanroom Recovery, Cloud Rewind, and Clumio Backtrack, enhancing resilience in the cloud [3]. Group 3: Customer Assurance - The CIS-hardened images provide IT teams with a secure, pre-configured foundation, allowing them to focus on protecting and recovering critical data [4]. - Customers can deploy Commvault Cloud quickly and confidently, benefiting from the assurance of starting from a strong security baseline [4]. Group 4: Availability and Pricing - Commvault's CIS-hardened images will be available globally this quarter at no additional cost to customers [5].

Revenue Growth - Total revenues increased by $45.8 million, or 21% year over year, primarily driven by increases in subscription and perpetual license revenues [126]. - Subscription revenue rose by $44.1 million, or 39% year over year, with an 82% increase in SaaS revenue; subscription revenue accounted for 60% of total revenues for the three months ended December 31, 2024 [126]. - Perpetual license revenue increased by $1.5 million, or 10% year over year, accounting for 6% of total revenues for the three months ended December 31, 2024 [126]. - Total revenues increased by $104.6 million, or 17% year over year, primarily driven by a 35% increase in subscription revenue [140]. - Subscription revenue accounted for 58% of total revenues for the nine months ended December 31, 2024, compared to 50% for the same period in 2023 [140]. - International total revenues increased by 30%, 20%, and 2% in subscription, perpetual license, and customer support revenues, respectively [129]. - Sales outside the United States accounted for 47% of total revenues for both the nine months ended December 31, 2024 and 2023 [117]. - Approximately 47% of the company's sales were outside the United States for the nine months ended December 31, 2024 [161]. Cost and Expenses - Total cost of revenues increased by $9.6 million, representing 19% of total revenues for the three months ended December 31, 2024, compared to 18% for the same period in 2023 [131]. - Cost of subscription revenue increased by $10.1 million, representing 16% of total subscription revenue for the three months ended December 31, 2024, compared to 14% in the prior year [131]. - Research and development expenses increased by $9.9 million, or 10%, due to additional headcount from the Appranix and Clumio acquisitions [145]. - Sales and marketing expenses rose by $53.4 million, or 21%, primarily due to increased employee compensation and sales commissions [145]. - Restructuring expenses totaled $9.2 million for the nine months ended December 31, 2024, related to severance and headcount reductions [145]. Cash Flow and Financial Position - Cash and cash equivalents balance was $243.6 million as of December 31, 2024, with approximately $179.4 million held outside the United States [150]. - Working capital decreased by $45.2 million from $110.2 million as of March 31, 2024, to $65.0 million as of December 31, 2024 [156]. - The company repurchased $135.2 million of its common stock for the nine months ended December 31, 2024, with $121.3 million remaining under the current authorization [152]. - The company believes that existing cash, cash equivalents, and cash from operations will be sufficient to meet anticipated cash needs for at least the next twelve months [157]. - Net cash provided by operating activities was impacted by net income adjusted for non-cash charges and an increase in deferred revenue, partially offset by an increase in accounts receivable [160]. - Net cash used in investing activities included $65.9 million for the acquisitions of Appranix and Clumio, $3.0 million of capital expenditures, and $0.8 million for the purchase of equity securities [160]. - Net cash used in financing activities resulted from $135.2 million of common share repurchases, partially offset by $11.1 million from the exercise of stock options and the Employee Stock Purchase Plan [160]. Tax and Interest - Interest income increased from $3.5 million in the nine months ended December 31, 2023, to $5.1 million in the same period of 2024 [147]. - Income tax expense decreased to $7.3 million in the nine months ended December 31, 2024, from $17.8 million in the prior year [148]. Foreign Currency and Financing - The company recognized net foreign currency transaction gains of approximately $0.3 million for the three months ended December 31, 2024, and net losses of approximately $1.6 million for the three months ended December 31, 2023 [163]. - Changes in currency exchange rates could adversely affect reported revenues and require price reductions to remain competitive in foreign markets [161]. - The company has not maintained excess cash balances in foreign accounts, which may impact its foreign currency transaction exposure [162]. - The company may seek additional funding through public or private financings or other arrangements during the next twelve months [157]. - The company does not have off-balance sheet financing arrangements as of December 31, 2024 [158].