Company: CVLT
Filing Date: 2025-07-02
Form Type: CORRESP
Source: 0001169561-25-000062
Chunk: 6

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-07-02
Form: CORRESP
Chunk 6
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 arrangements and the customer experience is functionally equivalent in terms of support and renewal.

In evaluating the appropriate level of disaggregation, we also considered the guidance in ASC 606-10-55-90, which instructs entities to consider how revenue information is presented for other purposes, including:

• Disclosures outside the financial statements (e.g., earnings releases, investor presentations),

• Information reviewed by the chief operating decision maker (CODM), and

• Other similar information used by management or investors.

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Consistent with this guidance in ASC 606-10-55-90:

• Our earnings releases, investor presentations, and annual reports consistently present subscription revenue as a single category encompassing both term-based and SaaS offerings.

• Our CODM reviews subscription revenue as a unified metric when evaluating segment performance and making resource allocation decisions.

• Our investor communications emphasize the importance of subscription revenue as a whole, rather than distinguishing between delivery methods.

Additionally, and as noted above, approximately one-third of our subscription customers utilize both term-based licenses and SaaS offerings, reflecting a growing trend toward hybrid deployment models. This overlap is a strategic focus for the Company and a key area of interest for investors, as we believe it reflects deeper customer engagement and long-term value potential.

Based on the above, we believe that aggregating term-based and SaaS revenue within the “Subscription” category is consistent with the principles of ASC 606 and provides meaningful and decision-useful information to investors. However, in response to the Staff’s comment, we will enhance our disclosures in future filings to further disaggregate term-based license revenue and SaaS revenue in our revenue footnote disclosure and explain the rationale for aggregating these components, including the commercial and economic similarities and the consistent use of this classification across internal and external reporting.

We will continue to monitor the relevance of this presentation and update our disclosures should our facts and circumstances change.

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Note 14. Segment Information, page 72

5. We note the CODM uses consolidated net income (loss) to measure segment profit or loss, allocate resources and assess performance. Please revise to discuss how the CODM uses this measure in assessing segment performance and deciding how to allocate resources. Refer to 280-10-50-29(f) and the example at 280-10-55-54(c).

Response:

We respectfully acknowledge the Staff’s comment and will revise our disclosure prospectively as follows:

We operate as a single reportable segment as we