Commvault CFO Gary Merrill Exits for New Role, Stock Falls

Commvault Systems, Inc. (NASDAQ:CVLT) stock fell Friday after the cybersecurity and data recovery company announced a leadership shake-up, including the departure of its chief financial officer. The company announced Friday that Chief Accounting Officer Danielle Abrahamsen will become interim CFO, effective Dec. 1. She will replace Gary Merrill, who is leaving to pursue an opportunity at another publicly traded company outside the industry. Merrill, who has spent more than two decades at Commvault, will remain an adviser through the end of the company’s fiscal year. Commvault Names Interim CFO, Launches Search Abrahamsen has worked at Commvault for more than eight years and has served as chief accounting officer since 2023. The company also appointed Stan Zlotsky senior vice president of finance. Zlotsky previously worked at Pendo.io, Morgan Stanley and Deutsche Bank. Commvault has hired executive search firm Spencer Stuart to identify a permanent CFO. CEO Sanjay Mirchandani expressed confidence in Abrahamsen’s leadership and highlighted Merrill’s contributions to the company’s growth. See More: Top Value Stocks Commvault Reaffirms Fiscal 2027 Outlook Despite the leadership transition, Commvault reaffirmed its third-quarter and full-year fiscal 2027 financial forecasts issued Oct. 27. The company expects third-quarter revenue of approximately $339 million, compared with the analyst estimate of $338.82 million. Commvault also maintained its full-year revenue forecast of $1.3 billion to $1.31 billion, compared with the $1.306 billion consensus estimate. The company expects full-year subscription revenue of $1.127 billion to $1.133 billion and free cash flow of $255 million to $265 million. Strong Earnings and Subscription Growth Commvault reported better-than-expected second-quarter results on Oct. 27. Adjusted earnings reached $1.38 per share, beating the analyst estimate of $1.24. Revenue rose 13% year over year to $312.39 million, topping the $310.28 million estimate. Subscription revenue climbed 21% to $269 million, including a 33% increase in software-as-a-service revenue to $106 million. Subscription annual recurring revenue grew 20% to $1.104 billion. The company generated $75 million in operating cash flow and $71 million in free cash flow during the quarter. CVLT Price Action: CommVault Systems shares were down 7.60% at $153.53 at the time of publication on Friday, according to Benzinga Pro data. Image via Shutterstock Read Also: TSMC Confirms Employee Data Leak Through Cloud Provider, Hackers Reportedly Demand 3 Bitcoins to Withhold 46,000 Records