Seeking Alpha

CommVault falls on cautious CC remarks

  • Though it beat FQ3 estimates, CommVault (CVLT -8.9%) noted on its FQ4 CC (transcript) a recent survey "indicates a slower start to 2014."
  • The company also mentioned there are "execution risks" related to its All Things Data strategy, through which the storage backup/recovery software vendor plans to expand into a slew of adjacent storage software markets, including replication, mobile file-sharing, archiving, infrastructure analytics, and health care storage software.
  • CommVault adds it still considers FY14 (ends in March) analyst estimates to be "reasonable," and predicts it will see "solid double-digit revenue and EBIT growth" in FY15. The company's FY15 revenue consensus already calls for 15.7% growth.
  • Software revenue (drives future services revenue) rose 20% Y/Y in FQ3, even with total revenue growth. CommVault's deferred revenue balance rose 19% Y/Y to $192.8M.
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