Shares in Commvault Systems Inc. fell by nearly 6% in regular trading today despite the data protection provider reporting earnings and revenue beats in its latest quarter.

For its fiscal first quarter that ended June 30, Commvault reported earnings before certain costs of $32.5 million, or 72 cents per diluted share, up from 64 cents per share in the same quarter of last year. Revenue was flat at  $198.2 million. Analysts had expected adjusted earnings per share of 64 cents on revenue of $197.19 million.

Although Commvault’s overall revenue was flat, the same can’t be said for its other key figures, with annual recurring revenue up 15% year-over-year, to $686 million, subscription revenue up 11%, to $97.3 million, and subscription ARR up 32%, to $500 million.

Income from operations in the quarter came in at $18.5 million, representing an operating margin of 9.3%. The company also saw its operating cash flow increase 74% year-over-year, to $39 million.

The delivered figures were not all in line with analysts’ expectations, however. The subscription revenue came in slightly below an expected $97.65 million, and other services revenue, which came in at $10.79 million, fell below the expected $12.62 million. The one standout was customer support revenue, which totaled at $76.92 million versus an expected $73.18 million.

“We’re off to a solid start to our fiscal year, highlighted by accelerated subscription revenue momentum and continued operating discipline,” Sanjay Mirchandani, president and chief executive of Commvault, said in the company’s earnings release.

For its fiscal second quarter of 2024, Commvault expects revenue of $193 million to $197 million, which was in line at the midpoint with analysts who were expecting $195 million. For its full fiscal year, the company expects revenue of between $805 million and $815 million, which was slightly higher at the midpoint than an expected $809.94 million.

Commvault’s figures, which were released at the start of regular trading, were solid with the exception of a few small misses in line items that were blips more than anything fundamentally wrong with the company. That said, investors did not like Commvault’s figures, as shares closed regular trading down almost 6%, to $73.40 a share.

Mirchandani spoke to theCUBE, SiliconANGLE Media Inc.’s livestreaming studio, in May, to discuss Commvault’s shift to subscription and software-as-a-service models. When asked about the effect of the macroeconomic environment on the company, Mirchandani noted that while larger deals were facing more scrutiny and taking longer to close, the company was adapting to the changing market conditions:

Image: Commvault