Commvault Systems, Inc. EBITDA surged on 20.6% and Revenue increased on 8.4%
05/01/2018 • About Commvault Systems, Inc. (
$CVLT) • By InTwits
Commvault Systems, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1.5% in FY2018, 1.4% in FY2017, 2.2% in FY2016, 7.9% in FY2015, 18.2% in FY2014
- Commvault Systems, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 8.8%. Average EBITDA Margin for the same period was 6.0%. In FY2018 SBC/Revenue was even higher: 10.6%
- Commvault Systems, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 3.1%
- CAPEX is quite volatile: $7m in FY2018, $6m in FY2017, $6m in FY2016, $6m in FY2015, $67m in FY2014
- The company has unprofitable business model: ROIC is -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Commvault Systems, Inc.'s Revenue increased on 8.4%. Revenue growth showed acceleration in FY18Q4 - it increased 10.9% YoY. During the last 5 years Revenue growth bottomed in FY2016 at -2.0% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.9 pp from 18.2% to 22.1% in 2018. EBITDA Margin stuck to a declining trend at -4.0 pp per annum in the last 5 years.
Gross Margin decreased slightly on 0.83 pp from 86.8% to 86.0% in FY2018. SG&A as a % of Revenue decreased slightly on 1.4 pp from 72.7% to 71.2% in FY2018. During the last 5 years SG&A as a % of Revenue topped in FY2017 at 72.7%. Stock Based Compensation (SBC) as a % of Revenue showed almost no change in FY2018. SBC as a % of Revenue followed a growing trend in FY2014-FY2018.
Net Income margin decreased on 8.8 pp from -0.079% to -8.9% in FY2018. Net Income margin followed a declining trend at -4.4 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 1.0%. CAPEX/Revenue showed almost no change from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 1.0%. The company invested a large share of EBITDA (65.0%) to CAPEX.
Accounts receivable as a % of Revenue increased slightly on 1.5 pp from 21.7% to 23.2% in FY2018. Accounts payable as a % of Revenue increased slightly on 0.64 pp from 0.14% to 0.78% in FY2018.
Return on investment
The company operates at negative ROIC (-0.2%) and ROE (-14.2%). ROIC showed almost no change in FY2018. ROE dropped on 14.1 pp from -0.12% to -14.2% in FY2018. ROIC stuck to a declining trend at -5.9 pp per annum in the last 5 years. ROE declined at -6.6 pp per annum in FY2014-FY2018.
Leverage (Debt)
The company has no debt. Cash showed almost no change in FY2018.
Management team
CEO total compensation was
$6,234,464 in FY2018 which included
$628,000 salary. Brian Carolan is a Commvault Systems, Inc.'s CFO. Brian Carolan has spent 7 years at the company.
Insider ownership is 8.9%. Insider ownership didn't change in 2018.
The company has 2,839 employees. The number of employees increased on 6.9%. Average revenue per employee in FY2018 was
$246,352 and it increased slightly on 1.4%.
Financial and operational results
FY ended 03/31/2018
Commvault Systems, Inc. ($CVLT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 586.3 | 607.5 | 595.1 | 645.0 | 699.4 | 8.4% |
| Gross Profit | 512.0 | 525.5 | 512.4 | 559.8 | 601.2 | 7.4% |
| SG&A | 350.4 | 414.0 | 431.5 | 468.9 | 498.3 | 6.3% |
| EBITDA | 106.6 | 47.8 | 13.2 | 9.0 | 10.8 | 20.6% |
| EBIT | 100.4 | 38.8 | 2.0 | -1.2 | -0.9 | |
| Tax | 37.2 | 13.2 | 1.7 | -1.5 | 58.4 | |
| Net Income | 64.1 | 25.7 | 0.1 | -0.5 | -61.9 | |
| Stock Based Compensation | 20.8 | 55.6 | 57.5 | 67.7 | 74.1 | 9.5% |
Balance Sheet
|
|---|
| Cash | 457.7 | 337.7 | 288.1 | 329.5 | 330.8 | 0.4% |
| Accounts Receivable | 118.5 | 117.7 | 113.4 | 140.1 | 162.1 | 15.7% |
| Accounts Payable | 1.2 | 0.9 | 0.3 | 0.1 | 0.8 | 550.4% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 67.1 | 5.8 | 6.3 | 6.4 | 7.0 | 9.7% |
Ratios
|
|---|
| Revenue growth | 18.2% | 3.6% | -2.0% | 8.4% | 8.4% | |
| EBITDA growth | 24.2% | -55.1% | -72.4% | -31.8% | 20.6% | |
|
|---|
| Gross Margin | 87.3% | 86.5% | 86.1% | 86.8% | 86.0% | -0.8% |
| EBITDA Margin | 18.2% | 7.9% | 2.2% | 1.4% | 1.5% | 0.2% |
| EBIT Margin | 17.1% | 6.4% | 0.3% | -0.2% | -0.1% | 0.1% |
| SG&A, % of revenue | 59.8% | 68.2% | 72.5% | 72.7% | 71.2% | -1.4% |
| SBC, % of revenue | 3.5% | 9.2% | 9.7% | 10.5% | 10.6% | 0.1% |
| Net Income Margin | 10.9% | 4.2% | 0.0% | -0.1% | -8.9% | -8.8% |
| CAPEX, % of revenue | 11.4% | 1.0% | 1.1% | 1.0% | 1.0% | 0.0% |
|
|---|
| ROIC | 24.6% | 8.9% | 0.5% | -0.3% | -0.2% | 0.1% |
| ROE | 15.7% | 5.9% | 0.0% | -0.1% | -14.2% | -14.1% |
| Net Debt/EBITDA | -4.3x | -7.1x | -21.9x | -36.7x | -30.5x | 6.1x |
People
|
|---|
| Insider ownership | 8.9% | 8.9% | 8.9% | 8.9% | 8.9% | 0.0% |
| Employees | 1,973 | 2,287 | 2,379 | 2,656 | 2,839 | 6.9% |
| Revenue/Employee, th. $ | 297 | 266 | 250 | 243 | 246 | 1.4% |
Commvault Systems, Inc. ($CVLT) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 166 | 168 | 180 | 185 | | 9.4% | 5.5% | 8.0% | 10.9% |
| EBITDA | -2 | -2 | 6 | 8 | | | -176.1% | -0.8% | 821.1% |
| Net Income | -0 | -1 | -59 | -2 | | | | -3,108.9% | -943.1% |
Balance Sheet
|
|---|
| Cash | 350 | 363 | 314 | 331 | | 15.6% | 12.9% | -0.6% | 0.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 86.9% | 86.2% | 86.2% | 84.7% | | 0.8% | -0.3% | -1.2% | -2.5% |
| EBITDA Margin | -1.0% | -1.1% | 3.5% | 4.3% | | -0.5% | -2.6% | -0.3% | 3.8% |
| Net Income Margin | -0.2% | -0.6% | -32.7% | -0.9% | | 1.5% | -0.6% | -33.9% | -1.0% |
Peers in Systems Software
Below we provide Commvault Systems, Inc. benchmarking against other companies in Systems Software industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Advantego Corp ($ADGO) | | | | | 973.8% |
| Solbright Group Inc ($SBRT) | | | 286.4% | 25.4% | 414.0% |
| Duos Technologies Group Inc ($DUOT) | | 61.0% | -9.8% | -36.4% | 210.2% |
| Dell Technologies Inc. ($DVMT) | | | | | 145.7% |
| Finjan Holdings, Inc. ($FNJN) | | -6.2% | 292.3% | 174.6% | 63.0% |
| |
|---|
| Median (48 companies) | | 20.6% | 14.7% | 16.6% | 20.4% |
|---|
| Commvault Systems, Inc. ($CVLT) | | 3.6% | -2.0% | 8.4% | 8.4% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| StrikeForce Technologies Inc ($SFOR) | 97.0% | 96.9% | 98.3% | 95.4% | 94.0% |
| Varonis Systems, Inc. ($VRNS) | 90.2% | 90.6% | 90.5% | 90.4% | 89.8% |
| Check Point Software Technologies Ltd. ($CHKP) | 88.2% | 88.5% | 88.5% | 88.6% | 89.6% |
| Tableau Software, Inc. ($DATA) | 91.0% | 88.7% | 88.0% | 87.1% | 87.7% |
| Attunity Ltd. ($ATTU) | 90.7% | 84.9% | 83.9% | 84.1% | 87.5% |
| |
|---|
| Median (53 companies) | 76.1% | 74.5% | 73.1% | 73.9% | 73.5% |
|---|
| Commvault Systems, Inc. ($CVLT) | 87.3% | 86.5% | 86.1% | 86.8% | 86.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Check Point Software Technologies Ltd. ($CHKP) | 54.3% | 52.4% | 49.8% | 50.7% | 48.8% |
| SolarWinds Corporation ($SWI) | | | -8.0% | 44.0% | 44.8% |
| Finjan Holdings, Inc. ($FNJN) | -192.1% | -295.2% | 2.2% | 30.2% | 42.0% |
| Oracle Corporation ($ORCL) | 46.2% | 43.8% | 40.8% | 40.2% | 40.8% |
| CA Inc. ($CA) | 33.9% | 36.7% | 37.2% | 36.1% | 35.3% |
| |
|---|
| Median (47 companies) | -2.4% | -6.6% | -9.8% | -5.4% | -4.7% |
|---|
| Commvault Systems, Inc. ($CVLT) | 18.2% | 7.9% | 2.2% | 1.4% | 1.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| The Rubicon Project, Inc. ($RUBI) | 15.6% | 11.4% | 12.0% | 26.0% | 16.0% |
| CYREN Ltd. ($CYRN) | 2.4% | 4.4% | 3.2% | 5.8% | 9.2% |
| ServiceNow, Inc. ($NOW) | 8.0% | 8.7% | 7.6% | 7.8% | 8.6% |
| Qualys, Inc. ($QLYS) | 10.4% | 12.2% | 11.7% | 16.4% | 8.2% |
| Zscaler, Inc. ($ZS) | | 12.5% | 7.8% | 6.5% | 8.0% |
| |
|---|
| Median (48 companies) | 2.7% | 2.2% | 2.1% | 2.4% | 2.6% |
|---|
| Commvault Systems, Inc. ($CVLT) | 11.4% | 1.0% | 1.1% | 1.0% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Finjan Holdings, Inc. ($FNJN) | -42.6% | -113.5% | 3.4% | 46.6% | 64.1% |
| Fortinet, Inc. ($FTNT) | 9.2% | 2.1% | 5.3% | 15.0% | 28.0% |
| Check Point Software Technologies Ltd. ($CHKP) | 22.2% | 23.7% | 24.7% | 26.8% | 25.5% |
| MAM Software Group, Inc. ($MAMS) | 13.3% | 19.3% | 21.1% | 24.2% | 25.2% |
| Red Hat, Inc. ($RHT) | 15.1% | 14.1% | 14.2% | 16.4% | 22.4% |
| |
|---|
| Median (56 companies) | 0.0% | 0.0% | -4.3% | -4.7% | -1.9% |
|---|
| Commvault Systems, Inc. ($CVLT) | 24.6% | 8.9% | 0.5% | -0.3% | -0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NXT-ID Inc. ($NXTD) | | | | | 9.7x |
| Symantec Corporation ($SYMC) | -3.2x | -1.5x | -5.0x | 10.0x | 4.7x |
| SolarWinds Corporation ($SWI) | | | | 6.2x | 4.1x |
| Oracle Corporation ($ORCL) | 0.4x | 1.2x | 1.6x | 2.4x | 2.4x |
| ServiceNow, Inc. ($NOW) | | | | 9.0x | 0.9x |
| |
|---|
| Median (22 companies) | -2.1x | -1.4x | -1.0x | -0.3x | -0.4x |
|---|
| Commvault Systems, Inc. ($CVLT) | -4.3x | -7.1x | -21.9x | -36.7x | -30.5x |
