Company: CVLT
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001169561-25-000069
Chunk: 36

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 36
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 before related services are provided and are functional without professional services, updates, or technical support. We have concluded that our software licenses (both term-based and perpetual) are functional intellectual property that is distinct, as the user can benefit from the software on its own. Revenues for both term-based and perpetual licenses are typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of and obtain substantially all the remaining benefits from the functional intellectual property. We do not recognize software revenue related to the renewal of term-based software licenses earlier than the beginning of the new subscription period.We also offer software that integrates with appliances and address a wide range of business needs and use cases, ranging from support for remote or branch offices with limited IT staff up to large corporate data centers. These appliances are almost exclusively sold via a software only model 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.

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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 servicesAs work is performed (over time)Within 90 days of services being performedObservable in transactions without multiple performance obligationsJudgments 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