Press release
Cognyte Announces Third Quarter Results
HERZLIYA, Israel--(BUSINESS WIRE)-- Cognyte Software Ltd. (NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and “our”), a global leader in investigative
About this update from Cognyte Software Ltd.
[{"type":"text","content":" HERZLIYA, Israel--(BUSINESS WIRE)--\nCognyte 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, 2022 (“Q3 FYE23” and “YTD FYE23”).\n\nQ3 Highlights\n\n\nRevenue: $71.3 million (GAAP) and $71.5 million (non-GAAP)\n\n\nGross Margin: 62.0% (GAAP) and 63.4% (non-GAAP)\n\n\nDiluted EPS: $(0.41) (GAAP) and $(0.25) (non-GAAP)\n\n\nYTD FYE23 Highlights\n\n\nRevenue: $238.8 million (GAAP) and $239.5 million (non-GAAP)\n\n\nGross Margin: 61.7% (GAAP) and 63.0% (non-GAAP)\n\n\nDiluted EPS: $(1.29) (GAAP) and $(1.08) (non-GAAP)\n\n\n“In the third quarter, we continued to win large orders and our backlog increased sequentially. At the same time, slow backlog conversion drove a sequential revenue decline. We expect to resume sequential revenue growth in the fourth quarter of fiscal year 2023, which we believe will be a turning point. For fiscal year 2024, we are targeting revenue to grow by approximately 5% compared to the current year,” said Elad Sharon, Cognyte’s chief executive officer.\n\n“Operationally, we simplified and improved the focus of the Company during challenging macro-economic conditions. As part of that effort, we successfully completed the previously announced divestiture of our Situational Intelligence solutions on December 1, 2022. Looking forward, we believe our differentiated technology and strong customer relations position us for long-term growth and profitability,” continued Mr. Sharon.\n\n“We took actions to improve our cost structure and improve cash flow from operations. Based on our revenue growth outlook and the actions we have taken, we are targeting about breakeven cash flow from operations in the current quarter and for the full year ending January 31, 2024,” said David Abadi, Cognyte’s chief financial officer.\n\nQ4 FYE23 Revenue Outlook\n\nOur non-GAAP outlook for the three months ending January 31, 2023 (“FYE23”) is as follows:\n\n\nRevenue: $65 to $74 million (includes approximately $2 million of revenue from one month of Situational Intelligence solutions)\n\n\nOur non-GAAP outlook for Q4 FYE23 excludes the following GAAP measures which we are able to quantify with reasonable certainty, as described further below under \"Supplemental Information About no...