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COMMVAULT Commvault Announces Fiscal 2021 Third Quarter Financial Results January 27 , 2021 --- Record quarterly revenue of $ 188.0 million --- --- Third quarter software and products revenue up 16 % year over year Recurring revenue up 13 % year over year --- --- TINTON FALLS , N.J. , Jan. 27 , 2021 / PRNewswire / -- COMMVAULT Third quarter highlights include : GAAP Results : Revenues Income from Operations ( EBIT ) EBIT Margin Diluted Earnings Per Share Third quarter $ 188.0 million $ 2.7 million 1.4 % $ 0.03 Non - GAAP Results : Income from Operations ( EBIT ) EBIT Margin $ 37.3 million Diluted Earnings Per Share 19.8 % $ 0.57 Commvault [ NASDAQ : CVLT ] today announced its financial results for the third quarter ended December 31 , 2020 . " The strategic moves we made over the past two years are delivering results , " said Sanjay Mirchandani , President and CEO , Commvault . " We have simplified how we do business , dramatically improved our execution , and are innovating faster than ever . " Total revenues for the third quarter of fiscal 2021 were $ 188.0 million , an increase of 7 % year over year . Total recurring revenue was $ 140.0 million , an increase of 13 % year over year . Annualized recurring revenue ( ARR ) , which is the annualized value of all active Commvault recurring revenue streams at the end of the reporting period , was $ 507.2 million as of December 31 , 2020 , up 11 % from December 31 , 2019 . Software and products revenue was $ 88.6 million , an increase of 16 % year over year . The year over year increase in software and products revenue was driven by a 19 % increase in revenue from larger deals ( deals greater than $ 0.1 million in software and products revenue ) . Larger deal revenue represented 68 % of our software and products revenue in the three months ended December 31 , 2020. The number of larger deal revenue transactions increased 3 % year over year to 187 deals for the three months ended December 31 , 2020. The average dollar amount of larger deal revenue transactions was approximately $ 322,000 , representing a 15 % increase from the prior year quarter . Services revenue in the quarter was $ 99.4 million , flat year over year . On a GAAP basis , income from operations ( EBIT ) was $ 2.7 million for the third quarter compared to a loss of $ 0.5 million in the prior year . Non - GAAP EBIT was $ 37.3 million in the quarter compared to $ 28.9 million in the prior year . Operating cash flow totaled $ 17.0 million for the third quarter of fiscal 2021 compared to $ 0.9 million in the prior year quarter . Total cash and short - term investments were $ 388.4 million as of December 31 , 2020 compared to $ 339.7 million as of March 31 , 2020 . During the third quarter of fiscal 2021 , Commvault repurchased 700,694 shares of its common stock totaling $ 33.1 million at an average price of approximately $ 47.28 per share . An update on our capital allocation policy will be provided on our investor day conference call . A reconciliation of GAAP to non - GAAP results has been provided in Financial Statement Table IV included in this press release . An explanation of these measures is also included below under the heading " Use of Non - GAAP Financial Measures . " Use of Non - GAAP Financial Measures Commvault has provided in this press release the following non - GAAP financial measures : non - GAAP income from operations , non - GAAP income from operations margin , non - GAAP net income , non - GAAP diluted earnings per share and annualized recurring revenue ( ARR ) . This selected financial information has not been prepared in accordance with GAAP . Commvault uses these non - GAAP financial measures internally to understand , manage and evaluate its business and make operating decisions . In addition , Commvault believes these non - GAAP operating measures are useful to investors , when used as a supplement to GAAP financial measures , in evaluating Commvault's ongoing operational performance . Commvault believes that the use of these non - GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends , and in comparing its financial results with other companies in Commvault's industry , many of which present similar non - GAAP financial measures to the investment community . Commvault has also provided software and products , services and total revenues on a constant currency basis . Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations . All of these non - GAAP financial measures should be considered as a supplement to , and not as a substitute for or superior to , financial information prepared in accordance with GAAP . Investors are encouraged to review the reconciliation of these non - GAAP measures to their most directly comparable GAAP financial measures , which are provided in Table IV included in this press release .