About Commvault Systems, Inc.
Commvault Systems wants to have a lock on data management. The company provides software, including cloud-based programs, that customers use to store and manage enterprise data. Its Commvault Data Platform handles resource management, backup, archiving, data replication, disaster recovery, and search. Altogether Commvault counts more than 26,000 customers that come from industries such as financial services, health care, manufacturing, and utilities, as well as from the public sector. Commvault's strategic partners include systems integrators and professional services firms, distributors and resellers, and technology providers. More than half of its revenue comes from US customers.
Commvault's software products cover data protection, backup and recovery, cloud and infrastructure management, and retention and compliance. Specific offerings are Commvault HyperScale Technology, Commvault HyperScale Software, and Commvault HyperScale Appliance. Software accounts for about 45% of revenue.
The services segment, which generates about 55% of revenue, includes customer support, technical services, professional services, and training.
Commvault, headquartered in Tinton Falls, New Jersey, operates from several offices in the US. It has about 40 locations scattered across the Americas, Asia, and Europe. The US is Commvault's largest market, accounting for about 55% of sales.
Sales and Marketing
Commvault primarily uses a direct sales force to sell Commvault Data Platform software to businesses and government agencies of all sizes. The company has licensed its software to more than 26,000 registered customers in banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy.
Partnerships are an essential component of its sales strategy. Companies such as Dell and NetApp resell Commvault software and in some cases incorporate the software into their own hardware.
Indirect sales channels account for about 85% of the company's software and products sales. Commvault gets about 35% of revenue through its agreement with distributor Arrow Enterprise; it includes sales to the US federal government.
After posting lower revenue in 2016, interrupting eight years of rising revenue, Commvault's sales have increased for two years in a row.
In 2018 (ended May), Commvault's revenue rose 8% to $699 million from 2017. Software and products revenue increased 7% driven by enterprise sales and services revenue climbed 9% from new software sales and renewals from the installed base of customers.
Higher costs pushed the company to a net loss of about $62 million in 2018 from a $500,000 net loss the year before. Significant increases were the costs of manufacturing the company's hardware appliance introduced in 2018 and a tax turnaround in which it paid about $58 million in 2018 after receiving a $1.5 million benefit in 2017.
Cash on hand totaled about $331 million in 2018, $1.3 million higher than 2017's total. The company spent about $112 million in 2018 to buy back stock.
Commvault introduced a corporate program called Commvault Advance in 2018 to make operations more efficient and effective throughout the company. The program include simplifying products and sales procedures and improving distribution. The company also restructured in 2018, reducing headcount about 4%.
Commvault continued its push to a subscription model and reported that subscriptions accounted for a quarter of its 2018 (ended May) revenue, up from 10% in 2017. In its cloud operations, the company's managed data in the cloud increased 2.5 times year-to-year to more than 220 petabytes and the number of customers with cloud storage about doubled.
Mergers and Acquisitions
In 2019 Commvault agreed to acquire Hedvig, a developer of software-define storage technologies, for $225 million. Commvault will put Hedvig's software to work to help customers get access to data stored in different environments and comply with data governance laws. The deal was expected to close in Commvault's third 2020 fiscal quarter, which ends in December 2019.
The company was founded as an independent segment of
1 Commvault Way
Tinton Falls, NJ 07724-3096
Phone: 1 (732) 870-4000
Employer Type: Publicly Owned
Stock Symbol: CVLT
Stock Exchange: , NASDAQ
EVP, COO, and Director: Alan G. Bunte
VP Finance and CFO: Brian Carolan
Chairman, President, and CEO: N. Robert Hammer
Employees (This Location): 250
Employees (All Locations): 2,533
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