Yesterday, Commvault announced the results of a terrific quarter and hosted the financial community at our FutureReady Investor Event. We wanted to pull it all into a highlight blog to showcase just how impactful last quarter was, not only for the company, but for our customers and the state of the market.
When CEO Sanjay Mirchandani joined Commvault two years ago, we focused on three priorities:
- Simplifying our business to make it easier for partners and customers to work with us.
- Radically innovating to lead a market in massive transition.
- Executing by focusing on what matters to deliver results. Which is why we’ve demonstrated a more established pattern of consistency in recent quarters.
We’ve made tremendous progress, ushering in a new era for Commvault.
Our high performing engineering team is innovating faster than ever. Our field is delivering results. And, we have a winning team and culture already helping customers with their digital transformations.
And the proof is in the pudding. Let’s hit the high points of our earnings announcement and discussion at yesterday’s FutureReady Investor Event:
- Total Revenue grew 7% year-over-year to approximately $188 million, a quarterly record.
- Software and Products Revenue increased 16% year-over-year to approximately $89 million, also a quarterly record.
- Large deal revenue grew 19% year-over-year, with average deal size up 15% year-over-year to approximately $322,000.
- We also saw solid contributions across SME and SMB accounts across our geographic regions.
Our organization has also rallied over the past two years to reposition the company with a focus on sustainable and responsible growth. In that vein, we have:
- Invested in internal and external innovation to significantly expand our Total Addressable Market.
- Simplified our operations and product portfolio to better align to customer use cases.
- Optimized our go-to-market motion to land new deals and expand our footprint with existing customers.
- Accelerated our subscription and recurring revenue transition.
- Accomplished these milestones while remaining disciplined on costs to drive meaningful margin expansion.
In a market that’s rapidly accelerating cloud adoption, we’ve provided subscription-based pricing with great success since FY18. Our fiscal year-to-date Subscription revenue accounted for approximately 58% of Software and Products Revenue and Recurring Revenue represented 77% of Total Revenue.
Our customers are clearly all-in on Commvault—check out the customer blog posted yesterday for the details.
In summary, we believe the new Commvault presents a compelling investment opportunity. Our plan highlights a recurring revenue model characterized by sustainable growth, improved profitability, strong free cash flow, and an attractive capital return policy. We believe that we have the ingredients to create material shareholder value in the years to come.
And keep your eye on Commvault!