Commvault Announces Fiscal 2023 2nd Quarter Financial Results.

TINTON FALLS, N.J:

Second quarter highlights include:

Second quarter

GAAP Results:

Revenues

$188.1 million

Income from Operations (EBIT)

$9.3 million

EBIT Margin

5.0 %

Diluted Earnings Per Share

$0.10

Non-GAAP Results:

Income from Operations (EBIT)

$35.4 million

EBIT Margin

18.8 %

Diluted Earnings Per Share

$0.57

Commvault (NASDAQ: CVLT) today announced its financial results for the second quarter ended September 30, 2022.

"Our fiscal Q2 record results and double-digit constant currency growth reinforce that customers see the value of Commvault's software and SaaS solutions," said Sanjay Mirchandani, President and CEO. "We believe our comprehensive data protection portfolio has never been more important in today's increasingly difficult world."

Total revenues for the second quarter of fiscal 2023 were $188.1 million, an increase of 6% year over year. On a year over year constant currency basis, total revenue growth would have been 12%. Total recurring revenue was $158.2 million, an increase of 12% year over year. On a year over year constant currency basis, total recurring revenue growth would have been 19%. Recurring revenue represented 84% of total revenue.

Annualized recurring revenue (ARR), which is the annualized value of all active Commvault recurring revenue streams at the end of the reporting period, was $604.4 million as of September 30, 2022, up 11% from September 30, 2021. On a year over year constant currency basis, ARR growth would have been 18%.

Software and products revenue was $82.8 million, an increase of 10% year over year. The year over year increase in software and products revenue was driven by an 18% increase in larger deals (deals with greater than $0.1 million in software and products revenue). On a year over year constant currency basis, software and products revenue growth would have been 16%.

Larger deal revenue represented 72% of our software and products revenue in the three months ended September 30, 2022. The number of larger deal revenue transactions was 173 for the three months ended September 30, 2022, compared to 163 for the three months ended September 30, 2021. The average dollar amount of larger deal revenue transactions was approximately $346,000, representing an 11% increase from the prior year.

Services revenue in the quarter was $105.2 million, an increase of 3% year over year. Services revenue continues to grow primarily due to the increase in Metallic.

On a GAAP basis, income from operations...