Data protection and management provider Commvault Systems Inc. today posted financial results for its fiscal third quarter, disclosing that revenue increased 8% year-over-year, to a record $202.4 billion.

Commvault’s revenue in the three months through Dec. 31 exceeded the Zacks Consensus Estimate by more than 3%. Today’s earnings report marks the third time in a year that the company surpassed the consensus revenue projection.

Tinton Falls, New Jersey-based Commvault is a major provider of data protection software. The company’s products enable organizations to recover business records lost because of a technical issue or a cyberattack. To help enterprises address complex outages, Commvault offers a disaster recovery tool that can automatically launch a backup copy of malfunctioning applications.

Commvault has in recent years expanded into several adjacent parts of the data management market. It offers a software platform, Commvault Distributed Storage, that helps enterprises manage the storage infrastructure used by their applications. Last October, Commvault introduced a tool that makes it easier for administrators to spot cybersecurity vulnerabilities in their companies’ infrastructure.

Commvault Chief Executive Officer Sanjay Mirchandani credited the company’s presence in multiple parts of the data management market as a factor behind its strong third quarter.

“The team executed well across the board, delivering another record quarter,” Mirchandani said in a statement. “Increasingly, customers are turning to us because we provide one platform for software and SaaS offerings to address a multitude of data management needs. This is fueling our growth and accelerating our journey to a cloud-first recurring revenue model.”

Commvault’s recurring revenue reached $164.4 million in the third quarter, accounting for 81% of total sales. Annualized recurring revenue, an indication of future sales, grew 11% year-over-year, to $561.2 million. 

The sales growth Commvault achieved in the third quarter was driven partly by strong demand from large customers. The company logged a 24% increase in revenue from deals that included more than $100,000 worth of software and other products. Commvault closed 225 such deals in the quarter, 20% more than 12 months earlier.

Strong customer demand helped Commvault surpass not only the consensus revenue estimate but also earnings-per-share expectations. The company generated adjusted income from operations of $43.1 million compared with $37.3 million in the prior year. That helped Commvault achieve a profit of 67 cents per share, above the 66 cents per share projected by Zacks.

Commvault’s efforts to continue its earnings momentum can be expected to place an emphasis on Metallic, its cloud-based backup and recovery service. In recent quarters the service has emerged as one of the fastest-growing parts of the company’s business. 

In October, Commvault stated that Metallic has become a “meaningful” contributor to annual recurring revenues. More than 1,000 organizations are using the service, according to Commvault, nearly a third of which signed up during the second quarter alone. 

Image: Commvault