Commvault Systems (NASDAQ:CVLT): Strongest Q2 Results from the Data Storage Group

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Commvault Systems (NASDAQ:CVLT) and the best and worst performers in the data storage industry.

Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.

The 5 data storage stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 1.3% above.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

In light of this news, data storage stocks have held steady with share prices up 3.5% on average since the latest earnings results.

Best Q2: Commvault Systems (NASDAQ:CVLT)

Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.

Commvault Systems reported revenues of $224.7 million, up 13.4% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ ARR (annual recurring revenue) estimates.

"The need for resilience is paramount and we are leading the charge," said Sanjay Mirchandani, Commvault's President and CEO.

Commvault Systems achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 22.1% since reporting and currently trades at $150.50.

Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it’s free.

MongoDB (NASDAQ:MDB)

Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.

MongoDB reported revenues of $478.1 million, up 12.8% year on year, outperforming analysts’ expectations by 3%. The business had a strong quarter with an impressive beat of analysts’ billings estimates and optimistic revenue guidance for the next quarter.

MongoDB delivered the highest full-year guidance raise among its peers. The company added 52 enterprise customers paying more than $100,000 annually to reach a total of 2,189. The market seems content with the results as the stock is up 3% since reporting. It currently trades at $253.21.

Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.

Snowflake reported revenues of $868.8 million, up 28.9% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a slower quarter as it posted a miss of analysts’ billings estimates.

As expected, the stock is down 19.1% since the results and currently trades at $109.28.

Read our full analysis of Snowflake’s results here.

DigitalOcean (NYSE:DOCN)

Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.

DigitalOcean reported revenues of $192.5 million, up 13.3% year on year. This result surpassed analysts’ expectations by 2%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ ARR (annual recurring revenue) and billings estimates.

The stock is up 33.2% since reporting and currently trades at $38.75.

Read our full, actionable report on DigitalOcean here, it’s free.

Couchbase (NASDAQ:BASE)

Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.

Couchbase reported revenues of $51.59 million, up 19.6% year on year. This result met analysts’ expectations. Taking a step back, it was a slower quarter as it produced a miss of analysts’ billings estimates and a decline in its gross margin.

Couchbase had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 21.4% since reporting and currently trades at $14.92.

Read our full, actionable report on Couchbase here, it’s free.

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