Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Commvault Systems (NASDAQ: CVLT) and its peers.
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 strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.7% since the latest earnings results.
Best Q4: 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 $262.6 million, up 21.1% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
"Once again, Commvault has delivered a record-breaking quarter with accelerating revenue growth," said Sanjay Mirchandani, President and CEO, Commvault.
Commvault Systems scored the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.5% since reporting and currently trades at $149.74.
Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it’s free.
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 $204.9 million, up 13.3% year on year, outperforming analysts’ expectations by 2%. The business had a strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
The stock is down 26.1% since reporting. It currently trades at $27.50.
Is now the time to buy DigitalOcean? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $548.4 million, up 19.7% year on year, exceeding analysts’ expectations by 5.6%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 39.7% since the results and currently trades at $159.55.
Read our full analysis of MongoDB’s results here.
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 $54.92 million, up 9.6% year on year. This print surpassed analysts’ expectations by 3.1%. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ billings estimates but full-year guidance of slowing revenue growth.
Couchbase had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 8.4% since reporting and currently trades at $14.89.
Read our full, actionable report on Couchbase here, it’s free.
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 $986.8 million, up 27.4% year on year. This result beat analysts’ expectations by 3%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Snowflake pulled off the fastest revenue growth among its peers. The company added 38 enterprise customers paying more than $1 million annually to reach a total of 580. The stock is down 13.5% since reporting and currently trades at $143.66.
Read our full, actionable report on Snowflake here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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