Third Quarter Results Ahead of Expectations
Increasing Full-Year Outlook
Herzliya, Israel, December 13, 2023 – Cognyte Software Ltd. (NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and “our”), a global leader in investigative analytics software, today announced results for the three and nine months ended October 31, 2023 (“Q3 FYE24” and “YTD FYE24”).
Q3 FYE24 Financial Highlights
YTD FYE24 Financial Highlights
“We are executing well and are pleased to deliver another solid quarter. Our customers recognize the strength of our differentiated technology and its ability to deliver high value to them, and we continued to win significant deals. As a result, we are raising guidance again for the year. Looking ahead, we believe our ability to leverage the latest AI innovations, together with our domain expertise in investigative analytics, will further enhance our differentiation and the value we provide to our customers, and position us well for future growth and improving profitability,” said Elad Sharon, Cognyte’s chief executive officer.
“In the third quarter, revenue, gross margin, operating income and Adjusted EBITDA came in ahead of our expectations. For the full year, we expect revenue to grow by approximately 10 percent, and gross profit to grow faster, at more than 20 percent year over year on an SIS Adjusted non-GAAP basis. We now expect adjusted EBITDA for the year to be about $8 million,” said David Abadi, Cognyte’s chief financial officer.
Updated FYE24 Outlook
Our non-GAAP outlook for the year ending January 31, 2024 (“FYE24” and “Fiscal 2024”) is as follows:
- Revenue: $311 million at the midpoint with a range of +/-1%, approximately 10% growth from previous year SIS Adjusted non-GAAP revenue.
- Diluted EPS: Loss of $0.24 at the midpoint of our revenue outlook.
Our non-GAAP outlook for FYE24 excludes the following GAAP measures which we are able to quantify with reasonable certainty, as described further below under “Supplemental Information About non-GAAP Financial Measures and Operating Metrics”:
- Amortization of intangible assets of approximately $0.4 million.
Our non-GAAP outlook for FYE24 excludes the following GAAP measures for which we are able to provide a range of probable significance:
- Stock-based compensation is expected to be between approximately $11.5 and $12.5 million, assuming market prices for our ordinary shares are generally consistent with current levels.
For additional information about our expectations for FYE24, please refer to the Q3 FYE24 conference call we will conduct on December 13, 2023.
Our non-GAAP outlook does not include the potential impact of any business acquisitions that may close after the date hereof, and, unless otherwise specified, reflects foreign currency exchange rates approximately consistent with current rates.
We are unable, without unreasonable effort, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items. For these same reasons, we are unable to assess the probable significance of these excluded items. While historical results may not be indicative of future results, actual amounts for the three and nine months ended October 31, 2023, and 2022, respectively, for the GAAP measures excluded from our non-GAAP outlook appear in Table 4 of this press release.
Conference Call Information
We will conduct a conference call today at 8:30 a.m. ET to discuss our results for the three months ended October 31, 2023. A real-time webcast of the conference call with presentation slides will be available in the Investor Relations section of Cognyte’s website. Those interested in participating in the question-and-answer session need to register here to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). An archived webcast of the conference call will also be available in the “Investors” section of the company’s website.
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of non-GAAP financial measures presented for completed periods to the most directly comparable financial measures prepared in accordance with GAAP, please see the tables below as well as “Supplemental Information About Non-GAAP Financial Measures” at the end of this press release.
About Cognyte Software Ltd.
Cognyte Software Ltd. is a global leader in investigative analytics software that empowers a variety of government and other organizations with Actionable Intelligence for a Safer World™. Our open interface software is designed to help customers accelerate and improve the effectiveness of investigations and decision-making. Hundreds of customers rely on our solutions to accelerate and conduct investigations and derive insights, with which they identify, neutralize, and tackle threats to national security and address different forms of criminal and terror activities. Learn more at www.cognyte.com.