{
  "docId": "019dd923-622b-71dc-a6d9-69dfda97d75e",
  "docSlug": "cb3321f93fa2",
  "documentTitle": "Commvault Systems, Inc. (CVLT)",
  "authorId": "02_Elliott_Management",
  "authorName": "Jesse Cohn and Jason Genrich",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-04-02 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 3,
  "pageCount": 16,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "executive_summary",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 6,
  "notes": "This page serves as a diagnostic summary of the company's issues, setting the stage for a proposed path forward.",
  "elementsJson": [
    "paragraph",
    "bullet_list"
  ],
  "metadataConfidence": 0.95,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-69dfda97d75e/3",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-69dfda97d75e",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-69dfda97d75e.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-69dfda97d75e#slide-3",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Since FY2013, revenue has increased by 37%, but operating income has declined by 37%.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3c-7011-a9a0-f8f2d0a72bef",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.764,
        "x": 0.118,
        "y": 0.705
      },
      "kind": "list",
      "text": "Since FY2013, revenue has increased by 37%, but operating income has declined by 37%; Today, Commvault spends 77% of revenue on operating expenses (excessive relative to a broad group of relevant technology companies discussed later in the letter), which is greater than the level it spent in FY2006 when it was 1/6th the size; Operating margins have declined by over 1,200 basis points since FY2013 despite having revenue that is nearly 40% larger (10% margin today vs. 23% margin five years ago); and",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "55199014-41bd-45b4-b465-4258d8aa3659",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "operating margin: 1,200bps",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3c-7011-a9a0-ff69e6e663cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.764,
        "x": 0.118,
        "y": 0.595
      },
      "kind": "paragraph",
      "text": "Before discussing our recommendation to the Board on a path forward, we believe it is important to outline Commvault's situation today. Commvault has outstanding products and technology and is recognized as a market leader. Unfortunately, Commvault has not been a success story as a public-company investment, and its share-price underperformance has been profound. This underperformance stems from a lack of credibility with investors, who have lost faith due to Commvault's recurring execution issues and its inability to drive a balanced approach to both revenue growth and margin expansion. Consider the following statistics, as described in more detail below:",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b30ea776-0857-402f-add5-9df9c84a9c25",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.015,
        "w": 0.255,
        "x": 0.118,
        "y": 0.568
      },
      "kind": "title",
      "text": "Commvault as a Public Company",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dbe24b4c-6daa-4251-8ba2-74e8f1f142af",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 3,
      "from": 1,
      "beatId": "710c5a35-51d2-46db-99fe-038c56a6b8a9",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Situation & Context",
      "beatSlug": "consultants-gambit-situation-context",
      "evidence": "The document provides an overview of Commvault's current state as a public company.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Setup",
      "parentBeatSlug": "setup"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}