What Happened?

Shares of data backup provider Commvault (NASDAQ:CVLT) jumped 20.9% in the afternoon session after the company reported a "beat and raise" quarter. Third-quarter results exceeded analysts' expectations for key top line indicators, including ARR (annual recurring revenue) and billings. Notably, revenue growth accelerated, up 16% y/y (vs 13% y/y in the previous quarter), as management called out strong demand for the Commvault Cloud platform. 

Taking a closer look at the bottom line, EPS beat convincingly, and guidance also came in ahead of expectations. Zooming out, we think this was a very strong quarter.

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What The Market Is Telling Us

Commvault Systems’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Commvault Systems and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock gained 20.5% on the news that the company reported a "beat and raise" quarter. Commvault Systems blew past analysts' revenue, billings, adjusted operating income, and EPS expectations. 

Looking ahead, guidance was promising as CVLT raised its full-year revenue guidance. Overall, this was a really good quarter that should please shareholders.

Commvault Systems is up 116% since the beginning of the year, and at $165.56 per share, has set a new 52-week high. Investors who bought $1,000 worth of Commvault Systems’s shares 5 years ago would now be looking at an investment worth $3,373.

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