
CommVault Systems (CVLT) Stock Forecast & Price Target
CommVault Systems (CVLT) Analyst Ratings
Bulls say
CommVault Systems Inc. demonstrated strong financial performance in its recent quarter, with Total Annual Recurring Revenue (ARR) reaching $1.04 billion, representing a 22% year-over-year increase. The company showed robust demand for its term software solutions, particularly in deals exceeding $100,000, which increased by 17% year-over-year, contributing to an optimistic outlook for ARR growth projected at 18-19% for the upcoming period. Furthermore, the company's SaaS ARR surged by 56%, reflecting strong momentum in its identity and data security offerings, alongside a healthy net revenue retention rate of 125%, underscoring its competitive position in the market.
Bears say
CommVault Systems reported stronger-than-expected revenue and annual recurring revenue (ARR) in its second quarter results; however, a contraction in term license duration resulted in a shortfall in subscription revenue. The company experienced a 170 basis point decline in gross margins, largely due to a shift towards lower-margin SaaS subscriptions and a decrease in high-margin term license sales, which had contracted by 9% quarter-over-quarter. Additionally, the outlook for earnings per share (EPS) has been downgraded as a consequence of reduced gross margins and operating margins, reflecting ongoing investments for growth and a challenging revenue mix.
This aggregate rating is based on analysts' research of CommVault Systems and is not a guaranteed prediction by Public.com or investment advice.
CommVault Systems (CVLT) Analyst Forecast & Price Prediction
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