Company: CVLT
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0001169561-25-000007
Chunk: 41

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 8
Chunk 41
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 in which we sell software to a third party, which assembles an integrated appliance that is sold to end user customers. As a result, the revenues and costs associated with hardware are usually not included in our financial statements.

11

Table of Contents      Commvault Systems, Inc.Notes to Consolidated Financial Statements - Unaudited (continued)(In thousands, except per share data)

Our typical performance obligations include the following:Performance ObligationWhen Performance Obligation is Typically SatisfiedWhen Payment is Typically DueHow Standalone Selling Price is Typically EstimatedSubscriptionTerm-based software licensesUpon shipment or made available for download (point in time)Within 90 days of shipment except for certain subscription licenses which are paid for over timeResidual approachSoftware-as-a-service (SaaS)Ratably over the course of the contract (over time)Annually or at the beginning of the contract periodObservable in transactions without multiple performance obligationsPerpetual LicensePerpetual software licensesUpon shipment or made available for download (point in time)Within 90 days of shipment Residual approachCustomer Support Software updatesRatably over the course of the support contract (over time)At the beginning of the contract period Observable in renewal transactionsCustomer supportRatably over the course of the support contract (over time)At the beginning of the contract period Observable in renewal transactionsOther Services Other professional services (except for education services)As work is performed (over time)Within 90 days of services being performedObservable in transactions without multiple performance obligationsEducation servicesWhen the class is taught (point in time)Within 90 days of services being performedObservable in transactions without multiple performance obligations       Judgments related to revenue recognitionMost of our contracts with customers contain multiple performance obligations. For these contracts, we evaluate and account for individual performance obligations separately if they are determined to be distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses (both perpetual and term-based) are typically estimated using the residual approach. Standalone selling prices for SaaS, customer support contracts, and other services are typically estimated based on observable transactions when these services are sold on a standalone basis. We recognize revenue net of sales tax.Disaggregation of RevenuesWe disaggregate revenues from contracts with customers into geographical regions. Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China. Three Months Ended December 31