Shares of data protection and recovery specialist Commvault Systems (CVLT 16.29%) are down 17% as of 11 a.m. ET on Tuesday, according to data provided by S&P Global Market Intelligence.
The cybersecurity company reported second-quarter earnings this morning and saw revenue grow by 18%, which exceeded analysts' expectations. However, Commvault's earnings came up shy of what Wall Street was hoping for, so the stock sold off today.
Looking at things from a longer-term Foolish perspective, the stock may have slightly missed on 90 days' worth of expected profits, but Commvault's actual operations only grew more robust during the quarter.
NASDAQ: CVLT
Key Data Points
Commvault: Enabling enterprise-grade cyber-resiliency
More than 13,000 customers use Commvault's unified hybrid cloud platform to protect and recover their data. Whether restoring virtual machines from cyberattacks, recovering lost or accidentally deleted data, or improving data archiving and compliance processes, Commvault's offerings are a must-have for its enterprise customers.
Recognized as a market leader in its niche by technology research firms Gartner and Forrester, Commvault helps its legacy enterprise customers bring their data defenses into the modern era.
The company generates 86% of its sales from recurring subscription revenue, which rose by a robust 30% in Q2. These subscriptions not only provide very stable revenue figures for Commvault quarter to quarter, but also offer immense land-and-expand potential.
During Q2, Commvault's net revenue retention from its software-as-a-service (SaaS) sales was 125%. This figure means that the company's existing SaaS customers spent 25% more with the company this year compared to last year -- even accounting for customer churn.
With global data production expected to grow by 25% through 2029, Commvault and peers like Rubrik (RBRK 2.15%) offer a lot of potential, despite their somewhat lofty valuations.
