Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2021 | Jan. 24, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-33026 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3447504 | |
Entity Address, Address Line One | 1 Commvault Way | |
Entity Address, City or Town | Tinton Falls | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07724 | |
City Area Code | 732 | |
Local Phone Number | 870-4000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CVLT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,559,594 | |
Entity Registrant Name | COMMVAULT SYSTEMS INC | |
Entity Central Index Key | 0001169561 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 233,691 | $ 397,237 |
Trade accounts receivable, net | 213,040 | 188,126 |
Other current assets | 20,310 | 22,237 |
Total current assets | 467,041 | 607,600 |
Property and equipment, net | 108,122 | 112,779 |
Operating lease assets | 16,492 | 20,778 |
Deferred commissions cost | 46,491 | 38,444 |
Goodwill | 112,435 | 112,435 |
Other assets | 17,978 | 12,137 |
Total assets | 768,559 | 904,173 |
Current liabilities: | ||
Accounts payable | 248 | 374 |
Accrued liabilities | 106,384 | 112,148 |
Current portion of operating lease liabilities | 5,615 | 7,469 |
Deferred revenue | 253,211 | |
Total current liabilities | 365,774 | 373,202 |
Deferred revenue, less current portion | 119,231 | |
Deferred tax liabilities, net | 754 | 761 |
Long-term operating lease liabilities | 12,148 | 15,419 |
Other liabilities | 1,567 | 1,526 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value: 250,000 shares authorized, 44,682 shares and 46,482 shares issued and outstanding at December 31, 2021 and March 31, 2021, respectively | 445 | 463 |
Additional paid-in capital | 1,136,899 | 1,069,695 |
Accumulated deficit | (872,257) | (665,774) |
Accumulated other comprehensive loss | (11,627) | (10,350) |
Total stockholders’ equity | 253,460 | 394,034 |
Total liabilities and stockholders’ equity | $ 768,559 | $ 904,173 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 44,682,000 | 46,482,000 |
Common stock, shares outstanding (in shares) | 44,682,000 | 46,482,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | ||||
Total revenues | $ 202,381 | $ 187,992 | $ 563,642 | $ 532,131 |
Cost of revenues: | ||||
Total cost of revenues | 29,963 | 28,412 | 81,812 | 79,762 |
Gross margin | 172,418 | 159,580 | 481,830 | 452,369 |
Operating expenses: | ||||
Sales and marketing | 89,217 | 84,542 | 248,506 | 245,287 |
Research and development | 39,257 | 35,727 | 113,118 | 97,824 |
General and administrative | 29,132 | 22,702 | 80,919 | 69,009 |
Restructuring | 0 | 11,618 | 2,082 | 19,709 |
Impairment of intangible assets | 0 | 0 | 0 | 40,700 |
Depreciation and amortization | 2,451 | 2,323 | 7,084 | 12,441 |
Total operating expenses | 160,057 | 156,912 | 451,709 | 484,970 |
Income (loss) from operations | 12,361 | 2,668 | 30,121 | (32,601) |
Interest income | 120 | 167 | 543 | 759 |
Interest expense | (19) | 0 | (19) | 0 |
Other income, net | 564 | 0 | 564 | 0 |
Income (loss) before income taxes | 13,026 | 2,835 | 31,209 | (31,842) |
Income tax expense | 3,018 | 1,162 | 5,573 | 5,373 |
Net income (loss) | $ 10,008 | $ 1,673 | $ 25,636 | $ (37,215) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.22 | $ 0.04 | $ 0.56 | $ (0.80) |
Diluted (in dollars per share) | $ 0.21 | $ 0.03 | $ 0.54 | $ (0.80) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 45,242 | 47,013 | 45,720 | 46,575 |
Diluted (in shares) | 46,719 | 48,013 | 47,552 | 46,575 |
Software and products | ||||
Revenues: | ||||
Total revenues | $ 98,575 | $ 88,625 | $ 255,998 | $ 237,488 |
Cost of revenues: | ||||
Total cost of revenues | 4,271 | 6,916 | 9,471 | 20,666 |
Services | ||||
Revenues: | ||||
Total revenues | 103,806 | 99,367 | 307,644 | 294,643 |
Cost of revenues: | ||||
Total cost of revenues | $ 25,692 | $ 21,496 | $ 72,341 | $ 59,096 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 10,008 | $ 1,673 | $ 25,636 | $ (37,215) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 36 | 2,285 | (1,277) | 4,023 |
Comprehensive income (loss) | $ 10,044 | $ 3,958 | $ 24,359 | $ (33,192) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid – In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2020 | 46,011 | ||||||
Beginning balance at Mar. 31, 2020 | $ 411,904 | $ (84) | $ 458 | $ 978,659 | $ (553,790) | $ (84) | $ (13,423) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 61,572 | 61,572 | |||||
Share issuances related to stock-based compensation (in shares) | 1,525 | ||||||
Share issuances related to stock-based compensation | 7,003 | $ 15 | 6,988 | ||||
Repurchase of common stock (in shares) | (701) | ||||||
Repurchase of common stock | (33,132) | $ (7) | (6,146) | (26,979) | |||
Net income (loss) | (37,215) | (37,215) | |||||
Other comprehensive income (loss) | 4,023 | 4,023 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 46,835 | ||||||
Ending balance at Dec. 31, 2020 | 414,071 | $ 466 | 1,041,073 | (618,068) | (9,400) | ||
Beginning balance (in shares) at Sep. 30, 2020 | 46,685 | ||||||
Beginning balance at Sep. 30, 2020 | 419,476 | $ 464 | 1,023,459 | (592,762) | (11,685) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 22,037 | 22,037 | |||||
Share issuances related to stock-based compensation (in shares) | 851 | ||||||
Share issuances related to stock-based compensation | 1,732 | $ 9 | 1,723 | ||||
Repurchase of common stock (in shares) | (701) | ||||||
Repurchase of common stock | (33,132) | $ (7) | (6,146) | (26,979) | |||
Net income (loss) | 1,673 | 1,673 | |||||
Other comprehensive income (loss) | 2,285 | 2,285 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 46,835 | ||||||
Ending balance at Dec. 31, 2020 | 414,071 | $ 466 | 1,041,073 | (618,068) | (9,400) | ||
Beginning balance (in shares) at Mar. 31, 2021 | 46,482 | ||||||
Beginning balance at Mar. 31, 2021 | 394,034 | $ 463 | 1,069,695 | (665,774) | (10,350) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 76,793 | 76,793 | |||||
Share issuances related to stock-based compensation (in shares) | 1,906 | ||||||
Share issuances related to stock-based compensation | 23,688 | $ 19 | 23,669 | ||||
Repurchase of common stock (in shares) | (3,706) | ||||||
Repurchase of common stock | (265,414) | $ (37) | (33,258) | (232,119) | |||
Net income (loss) | 25,636 | 25,636 | |||||
Other comprehensive income (loss) | (1,277) | (1,277) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 44,682 | ||||||
Ending balance at Dec. 31, 2021 | 253,460 | $ 445 | 1,136,899 | (872,257) | (11,627) | ||
Beginning balance (in shares) at Sep. 30, 2021 | 45,374 | ||||||
Beginning balance at Sep. 30, 2021 | 299,778 | $ 452 | 1,119,738 | (808,749) | (11,663) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 28,533 | 28,533 | |||||
Share issuances related to stock-based compensation (in shares) | 606 | ||||||
Share issuances related to stock-based compensation | 427 | $ 6 | 421 | ||||
Repurchase of common stock (in shares) | (1,298) | ||||||
Repurchase of common stock | (85,322) | $ (13) | (11,793) | (73,516) | |||
Net income (loss) | 10,008 | 10,008 | |||||
Other comprehensive income (loss) | 36 | 36 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 44,682 | ||||||
Ending balance at Dec. 31, 2021 | $ 253,460 | $ 445 | $ 1,136,899 | $ (872,257) | $ (11,627) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 25,636,000 | $ (37,215,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 8,027,000 | 13,379,000 |
Noncash stock-based compensation | 76,793,000 | 61,572,000 |
Noncash change in fair value of equity securities | 436,000 | 0 |
Amortization of deferred commissions cost | 13,344,000 | 13,747,000 |
Impairment of operating lease assets | 0 | 1,304,000 |
Impairment of intangible assets | 0 | 40,700,000 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (25,546,000) | (38,970,000) |
Operating lease assets and liabilities, net | (809,000) | (719,000) |
Other current assets and Other assets | (2,172,000) | 6,955,000 |
Deferred commissions cost | (21,852,000) | (15,946,000) |
Accounts payable | (120,000) | 273,000 |
Accrued liabilities | (3,293,000) | 484,000 |
Deferred revenue | 19,564,000 | 10,719,000 |
Other liabilities | 56,000 | 2,964,000 |
Net cash provided by operating activities | 90,064,000 | 59,247,000 |
Cash flows from investing activities | ||
Proceeds from maturity of short-term investments | 0 | 32,800,000 |
Purchase of property and equipment | (3,328,000) | (5,994,000) |
Purchase of equity securities | (3,527,000) | 0 |
Other | 500,000 | 0 |
Net cash (used in) provided by investing activities | (6,355,000) | 26,806,000 |
Cash flows from financing activities | ||
Repurchase of common stock | (265,414,000) | (33,132,000) |
Proceeds from stock-based compensation plans | 23,688,000 | 7,003,000 |
Payment of debt issuance costs | (609,000) | 0 |
Net cash used in financing activities | (242,335,000) | (26,129,000) |
Effects of exchange rate — changes in cash | (4,920,000) | 21,563,000 |
Net (decrease) increase in cash and cash equivalents | (163,546,000) | 81,487,000 |
Cash and cash equivalents at beginning of period | 397,237,000 | 296,082,000 |
Cash and cash equivalents at end of period | $ 233,691,000 | $ 377,569,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Commvault Systems, Inc. and its subsidiaries ("Commvault," "we," "us," or "our") is a provider of data protection and information management software applications and products. We develop, market and sell a suite of software applications and services, globally, that provides our customers with data protection solutions. We also provide our customers with a broad range of professional and customer support services. The consolidated financial statements of Commvault as of December 31, 2021 and for the three and nine months ended December 31, 2021 and 2020 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in our Annual Report on Form 10-K for fiscal 2021. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amount of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves and goodwill. Actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) ASU No. 2019-12 (Topic 740), Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We adopted this standard as of April 1, 2021. The standard did not have a significant impact on our financial statements. Concentration of Credit Risk We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Credit losses relating to these customers have historically been minimal. Sales through our distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 38% and 35% of total revenues for the three months ended December 31, 2021 and 2020, respectively. Sales with Arrow totaled 36% of total revenues for both the nine months ended December 31, 2021 and 2020. Arrow accounted for approximately 34% and 33% of total accounts receivable as of December 31, 2021 and March 31, 2021, respectively. Equity Securities Accounted for at Net Asset Value We held equity interests in private equity funds of $2,900 as of December 31, 2021, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement . These investments are included in Other assets in the accompanying Consolidated Balance Sheets. The net asset values of these investments are determined using quarterly capital statements from the funds, which are based on our contributions to the funds, allocation of profit and loss and changes in fair value of the underlying fund investments. Changes in fair value as reported on the capital statements are recorded through profit and loss as non-operating income or expense. These private equity funds focus on making investments in key technology sectors, principally by investing in companies at expansion capital and growth equity stages. We have total unfunded commitments in private equity funds of $7,600 as of December 31, 2021. Deferred Commissions Cost Sales commissions, bonuses, and related payroll taxes earned by our employees are considered incremental and recoverable costs of obtaining a contract with a customer. Our typical contracts include performance obligations related to software licenses, software updates, customer support and other services, including software-as-a-service offerings. In these contracts, incremental costs of obtaining a contract are allocated to the performance obligations based on the relative estimated standalone selling prices and then recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We do not pay commissions on annual renewals of contracts for software updates and customer support for perpetual licenses. The costs allocated to software and products are expensed at the time of sale, when revenue for the functional software license or appliance is typically recognized. The costs allocated to software updates and customer support for perpetual licenses are amortized ratably over a period of approximately five years, the expected period of benefit of the asset capitalized. We currently estimate a period of five years is appropriate based on consideration of historical average customer life and the estimated useful life of the underlying software sold as part of the transaction. Beginning in fiscal 2022, we modified the terms of our commission plans, and as a result, the commission paid on the renewal of a term-based, or subscription software license, was not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to software updates and customer support on the initial transaction are now amortized over a period of approximately five years, consistent with the accounting for these costs associated with perpetual licenses. The costs of commissions allocated to software updates and support for the renewal of term-based software licenses is limited to the contractual period of the arrangement, as we intend to pay a commensurate renewal commission upon the next renewal of the subscription license and related updates and support. This change in commission plans also resulted in a change in the estimate of the amortization period of our existing Deferred commissions cost associated with term licenses. This change in amortization period resulted in an approximately $825 and $2,875 reduction in Sales and marketing expense, than if the change in estimate did not occur, for the three and nine months ended December 31, 2021, respectively. |
Revenue
Revenue | 9 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We derive revenues from two primary sources: software and products, and services. Software and products revenue includes our software and integrated appliances that combine our software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services, customer education and Commvault software-as-a-service, which is branded as Metallic. We sell both perpetual and term-based licenses of our software. We refer to our term-based software licenses as subscription arrangements. We do not customize our software, and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We have concluded that our software licenses (both perpetual and subscription) are functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue for both perpetual and subscription licenses is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from, the functional intellectual property. We do not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the new subscription period. We also sell appliances that integrate our software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. Revenue related to appliances is recognized when control of the appliances passes to the customer; typically upon delivery. In the second half of fiscal 2021 we began transitioning to a software only model in which we primarily sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenue and costs associated with hardware have declined from recent fiscal years. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. We sell our customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses. The term of our subscription arrangements is typically three years. Our other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by our instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. In fiscal 2020 Commvault launched Metallic, which is a Commvault software-as-a-service offering. Revenue from Metallic is recognized ratably as services revenue. Most of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Software and Products Revenue Software Licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Customer Support Revenue Software Updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Other Services Revenue Other Professional Services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education Services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Software-as-a-service (Metallic) Ratably over the course of the contract (over time) Annual or monthly payments Observable in transactions without multiple performance obligations Disaggregation of Revenue We disaggregate revenue from contracts with customers into the nature of the products and services and geographical regions. The geographic regions that we track are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa) and APJ (Australia, New Zealand, Southeast Asia, China). We operate in one segment. Three Months Ended December 31, 2021 Americas EMEA APJ Total Software and Products Revenue $ 57,538 $ 32,949 $ 8,088 $ 98,575 Customer Support Revenue 50,163 26,018 9,826 86,007 Other Services Revenue 10,620 5,234 1,945 17,799 Total Revenue $ 118,321 $ 64,201 $ 19,859 $ 202,381 Three Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 43,636 $ 33,374 $ 11,615 $ 88,625 Customer Support Revenue 53,488 25,808 10,386 89,682 Other Services Revenue 5,031 3,332 1,322 9,685 Total Revenue $ 102,155 $ 62,514 $ 23,323 $ 187,992 Nine Months Ended December 31, 2021 Americas EMEA APJ Total Software and Products Revenue $ 153,510 $ 76,570 $ 25,918 $ 255,998 Customer Support Revenue 153,244 79,080 30,105 262,429 Other Services Revenue 27,323 12,776 5,116 45,215 Total Revenue $ 334,077 $ 168,426 $ 61,139 $ 563,642 Nine Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 133,522 $ 74,232 $ 29,734 $ 237,488 Customer Support Revenue 162,903 74,029 30,840 267,772 Other Services Revenue 13,938 8,971 3,962 26,871 Total Revenue $ 310,363 $ 157,232 $ 64,536 $ 532,131 Information about Contract Balances Amounts collected in advance of services being provided are accounted for as Deferred revenue. Nearly all of our Deferred revenue balance is related to services revenue, primarily customer support and Metallic contracts. In some arrangements we allow customers to pay for term-based software licenses and products over the term of the software license. Amounts recognized as revenue in excess of amounts billed are recorded as Unbilled receivables. Unbilled receivables, which are anticipated to be invoiced in the next twelve months, are included in Accounts receivable on the Consolidated Balance Sheets. Long-term unbilled receivables are included in Other assets. The opening and closing balances of our Accounts receivable, Unbilled receivables, and Deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2021 $ 168,985 $ 19,141 $ 7,463 $ 253,211 $ 119,231 Increase (decrease), net 27,420 (2,506) (636) 316 15,625 Ending Balance as of December 31, 2021 $ 196,405 $ 16,635 $ 6,827 $ 253,527 $ 134,856 The net increase in Accounts receivable (inclusive of Unbilled receivables) is a result of an increase in software and products revenue relative to the fourth quarter of the prior fiscal year. The increase in Deferred revenue is primarily the result of an increase in deferred revenue associated with Metallic contracts that are billed upfront and recognized ratably over the contract period. The amount of revenue recognized in the period that was included in the March 31, 2021 balance of deferred revenue was $56,383 and $217,309 for the three and nine months ended December 31, 2021. The vast majority of this revenue consists of customer support arrangements. The amount of software and products revenue recognized in the three and nine months ended December 31, 2021 related to performance obligations from prior periods was not significant. Remaining Performance Obligations In addition to the amounts included in deferred revenue as of December 31, 2021, $57,953 of revenue may be recognized from remaining performance obligations, of which approximately $10,000 was related to software and products. This amount includes renewals of term licenses received prior to the expiration of the existing license period. We expect the majority of this software and products revenue to be recognized during fiscal 2022. Most of this software and products revenue is associated with renewals of term licenses which have not yet expired. The vast majority of the services revenue is related to other professional services which may be recognized over the next twelve months but is contingent upon a number of factors, including customers’ needs and schedules. |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 9 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Net income (loss) $ 10,008 $ 1,673 $ 25,636 $ (37,215) Basic net income (loss) per common share: Basic weighted average shares outstanding 45,242 47,013 45,720 46,575 Basic net income (loss) per common share $ 0.22 $ 0.04 $ 0.56 $ (0.80) Diluted net income (loss) per common share: Basic weighted average shares outstanding 45,242 47,013 45,720 46,575 Dilutive effect of stock options and restricted stock units 1,477 1,000 1,832 — Diluted weighted average shares outstanding 46,719 48,013 47,552 46,575 Diluted net income (loss) per common share $ 0.21 $ 0.03 $ 0.54 $ (0.80) The diluted weighted-average shares outstanding exclude outstanding stock options, restricted stock units, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling 624 and 1,049 for the three months ended December 31, 2021 and 2020, respectively, and 566 and 5,160 for the nine months ended December 31, 2021 and 2020, because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies During the second quarter of fiscal 2022, we entered into a settlement agreement resulting in a $2,500 gain which resolved certain legal matters. The settlement amount is recorded in General and administrative expenses net against related legal expenses. We do not believe that we are currently party to any pending legal action that could reasonably be expected to have a material adverse effect on our business or operating results. |
Capitalization
Capitalization | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Capitalization | CapitalizationOur stock repurchase program has been funded by our existing cash and cash equivalent balances, as well as cash flows provided by our operations. Our Board has approved, and we intend to execute, a capital allocation policy that provides for the repurchase of $200,000 of our common stock for the period from February 1, 2021 through the end of our 2022 fiscal year, plus the use of approximately 75% of our fiscal 2022 free cash flow for additional repurchases during fiscal year 2022. From the period beginning February 1, 2021 through December 31, 2021 we have repurchased $327,542 of our common stock. |
Stock Plans
Stock Plans | 9 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Stock Plans The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development, General and administrative expenses and Restructuring expenses for the three and nine months ended December 31, 2021 and 2020. Stock-based compensation is attributable to stock options, restricted stock units, performance-based awards and the employee stock purchase plan. Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Cost of services revenue $ 1,140 $ 945 $ 3,367 $ 2,351 Sales and marketing 10,073 9,714 27,355 25,906 Research and development 9,127 6,203 24,722 17,722 General and administrative 8,193 4,021 20,977 13,735 Restructuring — 1,154 372 1,858 Stock-based compensation expense $ 28,533 $ 22,037 $ 76,793 $ 61,572 As of December 31, 2021, there was $167,282 of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 1.87 years. We account for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from our current estimate. Stock Options Stock option activity for the nine months ended December 31, 2021 is as follows: Options Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2021 1,357 $ 62.06 Options granted — — Options exercised (398) 46.41 Options forfeited — — Options expired (33) 86.55 Outstanding as of December 31, 2021 926 67.93 1.70 $ 8,367 Exercisable as of December 31, 2021 926 67.93 1.70 $ 8,367 The total intrinsic value of options exercised was $12,631 for the nine months ended December 31, 2021 and $1,287 for the nine months ended December 31, 2020. Restricted Stock Units Restricted stock unit activity for the nine months ended December 31, 2021 is as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2021 3,451 $ 44.90 Awarded 1,806 70.14 Vested (1,422) 45.05 Forfeited (262) 49.41 Non-vested as of December 31, 2021 3,573 $ 57.21 The weighted-average fair value of restricted stock units awarded was $67.34 and $70.14 per unit during the three and nine months ended December 31, 2021, and $43.70 and $41.01 per unit during the three and nine months ended December 31, 2020. The weighted-average fair value of awards includes the awards with a market condition described below. Performance Based Awards In the nine months ended December 31, 2021, we granted 119 performance restricted stock units ("PSUs") to certain executives. Vesting of these awards is contingent upon i) us meeting certain revenue and non-GAAP performance goals (performance-based) in fiscal 2022 and ii) our customary service periods. The awards vest over three years. These awards generally have potential to vest at 200% based on actual fiscal 2022 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSUs that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table. Awards with a Market Condition In the nine months ended December 31, 2021, we granted 105 market performance stock units to certain executives. The vesting of these awards is contingent upon us meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years. The awards vest in three annual tranches and have a maximum potential to vest at 200% (210 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the nine months ended December 31, 2021 was $87.74 per unit. The awards are included in the restricted stock unit table. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “Purchase Plan”) is a shareholder approved plan under which substantially all employees may purchase our common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the Purchase Plan are limited to 10% of the employee’s salary and employees may not purchase more than $25 of stock during any calendar year. Employees purchased 85 shares in exchange for $5,160 of proceeds in the nine months ended December 31, 2021 and 129 shares in exchange for $4,652 of proceeds in the nine months ended December 31, 2020. The Purchase Plan is considered compensatory and the fair value of the discount and look back provision are estimated using the Black-Scholes formula and recognized over the six-month withholding period prior to purchase. The total expense associated with the Purchase Plan for the nine months ended December 31, 2021 and 2020 was $2,428 and $2,528, respectively. As of December 31, 2021, there was approximately $430 of unrecognized cost related to the current purchase period of our Purchase Plan. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome tax expense was $3,018 and $5,573 in the three and nine months ended December 31, 2021 compared to expense of $1,162 and $5,373 in the three and nine months ended December 31, 2020. Current income tax expense relates primarily to current foreign taxes. We believe that it is more likely than not that we will not realize the benefits of our gross deferred tax assets and therefore continue to record a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero as of December 31, 2021. |
Restructuring
Restructuring | 9 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Our restructuring plan, initiated in the first quarter of fiscal 2019, is aimed to increase efficiency in our sales, marketing and distribution functions, as well as reduce costs across all functional areas. These restructuring charges relate primarily to severance and related costs associated with headcount reductions, stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan and lease abandonment charges. Restructuring charges were comprised of the following: Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Employee severance and related costs $ — $ 9,852 $ 1,710 $ 16,547 Lease impairments and related costs (1) — 612 — 1,304 Stock-based compensation — 1,154 372 1,858 Total restructuring charges $ — $ 11,618 $ 2,082 $ 19,709 (1) Lease impairment charges for the three and nine months ended December 31, 2020 relate to one and six offices, respectively. There were no lease impairment charges for the three and nine months ended December 31, 2021. Restructuring accruals The activity in our restructuring accruals for the nine months ended December 31, 2021 is as follows: Total Balance as of March 31, 2021 $ 3,095 Employee severance and related costs 1,710 Payments (4,551) Balance as of December 31, 2021 $ 254 |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility On December 13, 2021, we entered into a five-year $100,000 senior secured revolving credit facility (the “Credit Facility”) with J.P. Morgan. The Credit Facility is available for share repurchases, general corporate purposes, and letters of credit. The Credit Facility contains financial maintenance covenants including a leverage ratio and interest coverage ratio. The Credit Facility also contains certain customary events of default which would permit the lender to, among other things, declare all loans then outstanding to be immediately due and payable if such default is not cured within applicable grace periods. The Credit Facility also limits our ability to incur certain additional indebtedness, create or permit liens on assets, make acquisitions, make investments, loans or advances, sell or transfer assets, pay dividends or distributions, and engage in certain transactions with foreign affiliates. Outstanding borrowings under the Credit Facility accrue interest at an annual rate equal to Secured Overnight Financing Rate plus 1.25% subject to increases based on our actual leverage. The unused balance on the Credit Facility is also subject to a 0.25% annual interest charge subject to increases based on our actual leverage. As of December 31, 2021, there were no borrowings under the Credit Facility and we were in compliance with all covenants. We have deferred the expense related to debt issuance costs, which are classified as Other assets, and will amortize the costs into interest expense over the term of the Credit Facility. Unamortized amounts at December 31, 2021 were $572. The amortization of debt issuance costs and interest expense incurred for the three months ended December 31, 2021 was $19. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventIn January of 2022, we signed an agreement to acquire an overseas firm to enhance our ransomware protection capabilities. The purchase price is approximately $17,000 and will be funded from our foreign cash balance. We expect the deal to close in the fourth quarter of fiscal 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements of Commvault as of December 31, 2021 and for the three and nine months ended December 31, 2021 and 2020 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in our Annual Report on Form 10-K for fiscal 2021. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. |
Use of Estimates | The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in our consolidated financial statements and the accompanying notes. We base our estimates and judgments on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The amount of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves and goodwill. Actual results could differ from those estimates. |
Recently Adopted Accounting Standards | Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) ASU No. 2019-12 (Topic 740), Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We adopted this standard as of April 1, 2021. The standard did not have a significant impact on our financial statements. |
Concentration of Credit Risk | We grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Credit losses relating to these customers have historically been minimal. |
Equity Securities Accounted for at Net Asset Value | We held equity interests in private equity funds of $2,900 as of December 31, 2021, which are accounted for under the net asset value practical expedient as permitted under ASC 820, Fair Value Measurement |
Deferred Commissions Cost | Sales commissions, bonuses, and related payroll taxes earned by our employees are considered incremental and recoverable costs of obtaining a contract with a customer. Our typical contracts include performance obligations related to software licenses, software updates, customer support and other services, including software-as-a-service offerings. In these contracts, incremental costs of obtaining a contract are allocated to the performance obligations based on the relative estimated standalone selling prices and then recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We do not pay commissions on annual renewals of contracts for software updates and customer support for perpetual licenses. The costs allocated to software and products are expensed at the time of sale, when revenue for the functional software license or appliance is typically recognized. The costs allocated to software updates and customer support for perpetual licenses are amortized ratably over a period of approximately five years, the expected period of benefit of the asset capitalized. We currently estimate a period of five years is appropriate based on consideration of historical average customer life and the estimated useful life of the underlying software sold as part of the transaction. Beginning in fiscal 2022, we modified the terms of our commission plans, and as a result, the commission paid on the renewal of a term-based, or subscription software license, was not commensurate with the commission paid on the initial purchase. As a result, the cost of commissions allocated to software updates and customer support on the initial transaction are now amortized over a period of approximately five years, consistent with the accounting for these costs associated with perpetual licenses. The costs of commissions allocated to software updates and support for the renewal of term-based software licenses is limited to the contractual period of the arrangement, as we intend to pay a commensurate renewal commission upon the next renewal of the subscription license and related updates and support. This change in commission plans also resulted in a change in the estimate of the amortization period of our existing Deferred commissions cost associated with term licenses. This change in amortization period resulted in an approximately $825 and $2,875 reduction in Sales and marketing expense, than if the change in estimate did not occur, for the three and nine months ended December 31, 2021, respectively. |
Revenue | We derive revenues from two primary sources: software and products, and services. Software and products revenue includes our software and integrated appliances that combine our software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services, customer education and Commvault software-as-a-service, which is branded as Metallic. We sell both perpetual and term-based licenses of our software. We refer to our term-based software licenses as subscription arrangements. We do not customize our software, and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. We have concluded that our software licenses (both perpetual and subscription) are functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue for both perpetual and subscription licenses is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from, the functional intellectual property. We do not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the new subscription period. We also sell appliances that integrate our software with hardware and address a wide-range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. Revenue related to appliances is recognized when control of the appliances passes to the customer; typically upon delivery. In the second half of fiscal 2021 we began transitioning to a software only model in which we primarily sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenue and costs associated with hardware have declined from recent fiscal years. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. We sell our customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses. The term of our subscription arrangements is typically three years. Our other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by our instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. In fiscal 2020 Commvault launched Metallic, which is a Commvault software-as-a-service offering. Revenue from Metallic is recognized ratably as services revenue. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Standard Description Effective Date Effect on the Consolidated Financial Statements (or Other Significant Matters) ASU No. 2019-12 (Topic 740), Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We adopted this standard as of April 1, 2021. The standard did not have a significant impact on our financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Our typical performance obligations include the following: Performance Obligation When Performance Obligation When Payment is How Standalone Selling Price is Software and Products Revenue Software Licenses Upon shipment or made available for download (point in time) Within 90 days of shipment except for certain subscription licenses which are paid for over time Residual approach Customer Support Revenue Software Updates Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Customer Support Ratably over the course of the support contract (over time) At the beginning of the contract period Observable in renewal transactions Other Services Revenue Other Professional Services (except for education services) As work is performed (over time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Education Services When the class is taught (point in time) Within 90 days of services being performed Observable in transactions without multiple performance obligations Software-as-a-service (Metallic) Ratably over the course of the contract (over time) Annual or monthly payments Observable in transactions without multiple performance obligations |
Schedule of Disaggregation of Revenue | Three Months Ended December 31, 2021 Americas EMEA APJ Total Software and Products Revenue $ 57,538 $ 32,949 $ 8,088 $ 98,575 Customer Support Revenue 50,163 26,018 9,826 86,007 Other Services Revenue 10,620 5,234 1,945 17,799 Total Revenue $ 118,321 $ 64,201 $ 19,859 $ 202,381 Three Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 43,636 $ 33,374 $ 11,615 $ 88,625 Customer Support Revenue 53,488 25,808 10,386 89,682 Other Services Revenue 5,031 3,332 1,322 9,685 Total Revenue $ 102,155 $ 62,514 $ 23,323 $ 187,992 Nine Months Ended December 31, 2021 Americas EMEA APJ Total Software and Products Revenue $ 153,510 $ 76,570 $ 25,918 $ 255,998 Customer Support Revenue 153,244 79,080 30,105 262,429 Other Services Revenue 27,323 12,776 5,116 45,215 Total Revenue $ 334,077 $ 168,426 $ 61,139 $ 563,642 Nine Months Ended December 31, 2020 Americas EMEA APJ Total Software and Products Revenue $ 133,522 $ 74,232 $ 29,734 $ 237,488 Customer Support Revenue 162,903 74,029 30,840 267,772 Other Services Revenue 13,938 8,971 3,962 26,871 Total Revenue $ 310,363 $ 157,232 $ 64,536 $ 532,131 |
Schedule of Contract with Customer, Asset and Liability | The opening and closing balances of our Accounts receivable, Unbilled receivables, and Deferred revenues are as follows: Accounts Receivable Unbilled Receivable Unbilled Receivable Deferred Revenue (current) Deferred Revenue (long-term) Opening Balance as of March 31, 2021 $ 168,985 $ 19,141 $ 7,463 $ 253,211 $ 119,231 Increase (decrease), net 27,420 (2,506) (636) 316 15,625 Ending Balance as of December 31, 2021 $ 196,405 $ 16,635 $ 6,827 $ 253,527 $ 134,856 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Net income (loss) $ 10,008 $ 1,673 $ 25,636 $ (37,215) Basic net income (loss) per common share: Basic weighted average shares outstanding 45,242 47,013 45,720 46,575 Basic net income (loss) per common share $ 0.22 $ 0.04 $ 0.56 $ (0.80) Diluted net income (loss) per common share: Basic weighted average shares outstanding 45,242 47,013 45,720 46,575 Dilutive effect of stock options and restricted stock units 1,477 1,000 1,832 — Diluted weighted average shares outstanding 46,719 48,013 47,552 46,575 Diluted net income (loss) per common share $ 0.21 $ 0.03 $ 0.54 $ (0.80) |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development, General and administrative expenses and Restructuring expenses for the three and nine months ended December 31, 2021 and 2020. Stock-based compensation is attributable to stock options, restricted stock units, performance-based awards and the employee stock purchase plan. Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Cost of services revenue $ 1,140 $ 945 $ 3,367 $ 2,351 Sales and marketing 10,073 9,714 27,355 25,906 Research and development 9,127 6,203 24,722 17,722 General and administrative 8,193 4,021 20,977 13,735 Restructuring — 1,154 372 1,858 Stock-based compensation expense $ 28,533 $ 22,037 $ 76,793 $ 61,572 |
Schedule of Stock Option Activity | Stock option activity for the nine months ended December 31, 2021 is as follows: Options Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of March 31, 2021 1,357 $ 62.06 Options granted — — Options exercised (398) 46.41 Options forfeited — — Options expired (33) 86.55 Outstanding as of December 31, 2021 926 67.93 1.70 $ 8,367 Exercisable as of December 31, 2021 926 67.93 1.70 $ 8,367 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity for the nine months ended December 31, 2021 is as follows: Non-vested Restricted Stock Units Number of Weighted- Non-vested as of March 31, 2021 3,451 $ 44.90 Awarded 1,806 70.14 Vested (1,422) 45.05 Forfeited (262) 49.41 Non-vested as of December 31, 2021 3,573 $ 57.21 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accruals | Restructuring charges were comprised of the following: Three Months Ended December 31, Nine Months Ended December 31, 2021 2020 2021 2020 Employee severance and related costs $ — $ 9,852 $ 1,710 $ 16,547 Lease impairments and related costs (1) — 612 — 1,304 Stock-based compensation — 1,154 372 1,858 Total restructuring charges $ — $ 11,618 $ 2,082 $ 19,709 (1) Lease impairment charges for the three and nine months ended December 31, 2020 relate to one and six offices, respectively. There were no lease impairment charges for the three and nine months ended December 31, 2021. |
Schedule of Activity in Restructuring Accruals | The activity in our restructuring accruals for the nine months ended December 31, 2021 is as follows: Total Balance as of March 31, 2021 $ 3,095 Employee severance and related costs 1,710 Payments (4,551) Balance as of December 31, 2021 $ 254 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - Arrow | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 38.00% | 35.00% | 36.00% | 36.00% | |
Accounts receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 34.00% | 33.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Equity Securities Accounted for at Net Asset Value (Details) - Private Equity Funds $ in Thousands | Dec. 31, 2021USD ($) |
Concentration Risk [Line Items] | |
Equity securities | $ 2,900 |
Unfunded commitments | $ 7,600 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Deferred Commissions Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||||
Software updates and customer support costs amortization period | 5 years | 5 years | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Reduction in Sales and marketing expense | $ (89,217) | $ (84,542) | $ (248,506) | $ (245,287) |
Commission Plans Modification | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Reduction in Sales and marketing expense | $ 825 | $ 2,875 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($)segmentsource | |
Revenue from Contract with Customer [Abstract] | ||
Sources of primary revenue | source | 2 | |
Customer support agreement term | 1 year | |
Subscription arrangement term | 3 years | |
Number of operating segments | segment | 1 | |
Revenue recognized in period, included in opening deferred revenue balance | $ 56,383 | $ 217,309 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized from remaining performance obligations | 57,953 | 57,953 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Software and products | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue expected to be recognized from remaining performance obligations | $ 10,000 | $ 10,000 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Other Professional Services (except for education services) | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | 12 months |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) | 9 Months Ended |
Dec. 31, 2021 | |
Software Licenses | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Other Professional Services (except for education services) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Education Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected payment terms | 90 days |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 202,381 | $ 187,992 | $ 563,642 | $ 532,131 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 118,321 | 102,155 | 334,077 | 310,363 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 64,201 | 62,514 | 168,426 | 157,232 |
APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 19,859 | 23,323 | 61,139 | 64,536 |
Software and products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 98,575 | 88,625 | 255,998 | 237,488 |
Software and products | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 57,538 | 43,636 | ||
Software and products | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 32,949 | 33,374 | ||
Software and products | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 8,088 | 11,615 | ||
Customer Support Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 86,007 | 89,682 | 262,429 | 267,772 |
Customer Support Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 50,163 | 53,488 | 153,244 | 162,903 |
Customer Support Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 26,018 | 25,808 | 79,080 | 74,029 |
Customer Support Revenue | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 9,826 | 10,386 | 30,105 | 30,840 |
Other Services Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 17,799 | 9,685 | 45,215 | 26,871 |
Other Services Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 10,620 | 5,031 | 27,323 | 13,938 |
Other Services Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 5,234 | 3,332 | 12,776 | 8,971 |
Other Services Revenue | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 1,945 | $ 1,322 | 5,116 | 3,962 |
Software and Products Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 255,998 | 237,488 | ||
Software and Products Revenue | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 153,510 | 133,522 | ||
Software and Products Revenue | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 76,570 | 74,232 | ||
Software and Products Revenue | APJ | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 25,918 | $ 29,734 |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances of Accounts Receivables, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2021USD ($) | |
Accounts Receivable | |
Opening Balance | $ 168,985 |
Increase (decrease), net | 27,420 |
Ending Balance | 196,405 |
Deferred Revenue (current) | |
Opening Balance | 253,211 |
Deferred Revenue (long-term) | |
Opening Balance | 119,231 |
Unbilled Receivable (current) | |
Unbilled Receivable (current) | |
Opening Balance | 19,141 |
Increase (decrease), net | (2,506) |
Ending Balance | 16,635 |
Unbilled Receivable (long-term) | |
Unbilled Receivable (long-term) | |
Opening Balance | 7,463 |
Increase (decrease), net | (636) |
Ending Balance | 6,827 |
Deferred Revenue (current) | |
Deferred Revenue (current) | |
Opening Balance | 253,211 |
Increase (decrease), net | 316 |
Ending Balance | 253,527 |
Deferred Revenue (long-term) | |
Deferred Revenue (long-term) | |
Opening Balance | 119,231 |
Increase (decrease), net | 15,625 |
Ending Balance | $ 134,856 |
Net Income (Loss) per Common _3
Net Income (Loss) per Common Share - Computation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 10,008 | $ 1,673 | $ 25,636 | $ (37,215) |
Basic net income (loss) per common share: | ||||
Basic weighted average shares outstanding (in shares) | 45,242 | 47,013 | 45,720 | 46,575 |
Basic net income (loss) per common share (in dollars per share) | $ 0.22 | $ 0.04 | $ 0.56 | $ (0.80) |
Diluted net income (loss) per common share: | ||||
Basic weighted average shares outstanding (in shares) | 45,242 | 47,013 | 45,720 | 46,575 |
Dilutive effect of stock options and restricted stock units (in shares) | 1,477 | 1,000 | 1,832 | 0 |
Diluted weighted average shares outstanding (in shares) | 46,719 | 48,013 | 47,552 | 46,575 |
Diluted net income (loss) per common share (in dollars per share) | $ 0.21 | $ 0.03 | $ 0.54 | $ (0.80) |
Net Income (Loss) per Common _4
Net Income (Loss) per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation (in shares) | 624 | 1,049 | 566 | 5,160 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Gain on litigation settlement | $ 2,500 |
Capitalization (Details)
Capitalization (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 11 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Equity [Abstract] | |||||
Share repurchase program, authorized amount | $ 200,000 | $ 200,000 | $ 200,000 | ||
Percentage of free cash flow used for additional stock repurchases | 75.00% | 75.00% | 75.00% | ||
Repurchase of common stock | $ 85,322,000 | $ 33,132,000 | $ 265,414,000 | $ 33,132,000 | $ 327,542,000 |
Stock Plans - Stock-Based Compe
Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 28,533 | $ 22,037 | $ 76,793 | $ 61,572 |
Cost of services revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1,140 | 945 | 3,367 | 2,351 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 10,073 | 9,714 | 27,355 | 25,906 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9,127 | 6,203 | 24,722 | 17,722 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 8,193 | 4,021 | 20,977 | 13,735 |
Restructuring | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 1,154 | $ 372 | $ 1,858 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | $ 12,631 | $ 1,287 | ||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 167,282 | $ 167,282 | ||
Weighted average period awards are expected to be recognized | 1 year 10 months 13 days | |||
Weighted-average fair value, units awarded (in dollars per share) | $ 67.34 | $ 43.70 | $ 70.14 | $ 41.01 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of Options | |
Outstanding beginning balance (in shares) | shares | 1,357 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (398) |
Options forfeited (in shares) | shares | 0 |
Options expired (in shares) | shares | (33) |
Outstanding ending balance (in shares) | shares | 926 |
Exercisable at current period end (in shares) | shares | 926 |
Weighted-Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 62.06 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 46.41 |
Options forfeited (in dollars per share) | $ / shares | 0 |
Options expired (in dollars per share) | $ / shares | 86.55 |
Outstanding ending balance (in dollars per share) | $ / shares | 67.93 |
Exercisable at current period-end (in dollars per share) | $ / shares | $ 67.93 |
Weighted-Average Remaining Contractual Term (Years) | |
Outstanding at current period-end | 1 year 8 months 12 days |
Exercisable at current period-end | 1 year 8 months 12 days |
Aggregate Intrinsic Value | |
Outstanding at current period-end | $ | $ 8,367 |
Exercisable at current period-end | $ | $ 8,367 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Units (Details) - Restricted stock units - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Awards | ||||
Non-vested beginning balance (in shares) | 3,451 | |||
Granted (in shares) | 1,806 | |||
Vested (in shares) | (1,422) | |||
Forfeited (in shares) | (262) | |||
Non-vested ending balance (in shares) | 3,573 | 3,573 | ||
Weighted- Average Grant Date Fair Value | ||||
Non-vested beginning balance (in dollars per share) | $ 44.90 | |||
Granted (in dollars per share) | $ 67.34 | $ 43.70 | 70.14 | $ 41.01 |
Vested (in dollars per share) | 45.05 | |||
Forfeited (in dollars per share) | 49.41 | |||
Non-vested ending balance (in dollars per share) | $ 57.21 | $ 57.21 |
Stock Plans - Performance Based
Stock Plans - Performance Based Awards (Details) - PSU shares in Thousands | 9 Months Ended |
Dec. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 119 |
Service period | 3 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 200.00% |
Stock Plans - Awards with a Mar
Stock Plans - Awards with a Market Condition (Details) - Market performance shares shares in Thousands | 9 Months Ended |
Dec. 31, 2021tranche$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards, granted (in shares) | 105 |
Service period | 3 years |
Number of annual tranches | tranche | 3 |
Weighted-average fair value, units awarded (in dollars per share) | $ / shares | $ 87.74 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards potential to vest, percentage | 200.00% |
Awards potential to vest (in shares) | 210 |
Stock Plans - Employee Stock Pu
Stock Plans - Employee Stock Purchase plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 28,533 | $ 22,037 | $ 76,793 | $ 61,572 |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price as a percentage of fair market value | 85.00% | |||
Offering period | 6 months | |||
Maximum employee payroll percent deduction of salary | 10.00% | 10.00% | ||
Maximum amount of stock purchasable by employees within a calendar year | $ 25 | |||
Number of shares purchased by employees (in shares) | 85,000 | 129,000 | ||
Proceeds received | $ 5,160 | $ 4,652 | ||
Compensation expense | 2,428 | $ 2,528 | ||
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 430 | $ 430 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 3,018,000 | $ 1,162,000 | $ 5,573,000 | $ 5,373,000 |
Deferred tax assets | $ 0 | $ 0 |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)office | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)office | |
Restructuring and Related Activities [Abstract] | ||||
Employee severance and related costs | $ 0 | $ 9,852,000 | $ 1,710,000 | $ 16,547,000 |
Lease impairments and related costs | 0 | 612,000 | 0 | 1,304,000 |
Stock-based compensation | 0 | 1,154,000 | 372,000 | 1,858,000 |
Total restructuring charges | $ 0 | $ 11,618,000 | $ 2,082,000 | $ 19,709,000 |
Number of office related to lease impairment | office | 1 | 6 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 3,095 | |||
Employee severance and related costs | $ 0 | $ 9,852 | 1,710 | $ 16,547 |
Payments | (4,551) | |||
Ending balance | $ 254 | $ 254 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Revolving credit facility - Senior Secured Revolving Credit Facility - USD ($) | Dec. 13, 2021 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Debt term | 5 years | |
Borrowing capacity | $ 100,000,000 | |
Annual interest charge on unused balance of the credit facility | 0.25% | |
Borrowings under the credit facility | $ 0 | |
Unamortized debt issuance costs | 572,000 | |
Amortization of debt issuance costs | $ 19,000 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Debt, basis spread on variable rate | 1.25% |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | 1 Months Ended |
Jan. 26, 2022USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Purchase price to acquire business | $ 17,000 |
Uncategorized Items - cvlt-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |