Cognyte Software Ltd. · NASDAQ:CGNT
Cognyte Software — Q1 FYE25 Earnings Presentation
28 slides from Cognyte Software's earnings presentation, Jun 18, 2024
Slide 1: Q1 FYE25 Conference Call
Q1 FYE25 Conference Call +June 18, 2024 1
Slide 2: Disclaimers
Disclaimers Forward Looking Statements This presentation contains "forward-looking statements," including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Cognyte Software Ltd. These forward-looking stateme
Slide 3: Strong Start to FYE25
Strong Start to FYE25 Revenue $83.7 $82.7 $79.4 $77.1 + Revenue of $82.7 million, an increase of $73.3 approximately 13% year over year + Non-GAAP Gross Profit growing faster than revenue Q1 FYE24 Q2 FYE24 Q3 FYE24 Q4 FYE24 Q1 FYE25 + $5 million of positive Adjusted EBITDA Adjusted EBITDA $5.0 $4.6
Slide 4: Driving Significant Repeat Business
Driving Significant Repeat Business National Security National Intelligence National Intelligence Existing Customer Existing Customer Existing Customer >$5 Million Deal >$5 Million Deal ~$5 Million Deal Selected based on: Selected based on: Selected based on: Proven effectiveness Superior performanc
Slide 5: Law Enforcement Agency Survey Results
Law Enforcement Agency Survey Results + Artificial Intelligence critical for future law enforcement investigations + Investing in investigative analytics is a priority for law enforcement agencies + Findings validate our market opportunity and ongoing roadmap 5
Slide 6: Increased FYE25 Outlook
Increased FYE25 Outlook + Revenue of $344 million with a range of +/- 2% million − Approximately 10% year-over-year growth at midpoint + Adjusted EBITDA of $22 million at the midpoint of the revenue range − Leverage in our business model 6
Slide 7: Financial Summary
Financial Summary 77
Slide 8: Q1 FYE25 Highlights
Q1 FYE25 Highlights Cash $107.2 $83.3 $77.0 + Total cash of $107.2 million $72.8 $73.8 − No debt + Cash from Operations of $21.5 million + Revenue of $82.7 million − Approximately 13% year-over-year growth Q1 FYE24 Q2 FYE24 Q3 FYE24 Q4 FYE24 Q1 FYE25 + Non-GAAP Gross Profit of $58.8 million − Approx
Slide 9: Q1 FYE25 KPIs
Q1 FYE25 KPIs Short-term RPO Revenue $83.7 $82.7 $312.4 $302.5 $79.4 $77.1 $290.9 $282.8 $73.3 $281.8 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FYE24 FYE24 FYE24 FYE24 FYE25 FYE24 FYE24 FYE24 FYE24 FYE25 Non-GAAP Gross Profit Adjusted EBITDA $58.8 $4.6 $5.0 $57.8 $4.3 $55.7 $53.3 $50.2 $2.3 -$2.3 Q1 Q2 Q3 Q4 Q1
Slide 10: Increased FYE25 Outlook
Increased FYE25 Outlook + Revenue of $344 million with a range of +/- 2% ‒ Approximately 10% year-over-year growth at midpoint + Adjusted EBITDA of $22 million at the midpoint of the revenue range ‒ Leverage in our business model ‒ $13 million year-over-year growth + Cash from operations of approxim
Slide 11: Strong Execution
Strong Execution NON-GAAP GROSS PROFIT GROWING PROFITABILITY IMPROVING REVENUE GROWTH FASTER THAN REVENUE ADJUSTED EBITDA INCREASING $57.8 $58.8 $4.6 $5.0 $83.7 $82.7 $55.7 $4.3 $79.4 $53.3 $77.1 $50.2 $2.3 $73.3 -$2.3 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FYE24 FYE24 FYE24 FYE24 FYE25 FYE24
Slide 12: Thank you
Thank you cognyte.com 12
Slide 13: Appendix
Appendix 13 13
Slide 14: Summary metrics
Summary metrics Cagnyte Software Summary Metts reeosrlaerices onder venue we se | soa | ono | we | we | soo | oe || me | smo || eo | see || roemeworinmn Toren wa | we [om [om | oma | wes | cer [er |[ eee [ene || cer [me 7, [se ste sevees menos so olor am Dam [w= [w= [a= [am pas |es |[e= [a= [== [as
Slide 15: Cognyte Software Revenue Metrics
Cognyte Software Revenue Metrics Three Months Three Months Ended Year ended Ended ($in ns) 4130/2023 7/31/2023 10/34/21 1/34/2024 1131/2024 4/30/2024 Software and software services revenue - GAAP 66.5 66.7 71.6 73.8 278.6 75.8 Professional services and other revenue - GAAP 68 10.3 7.8 9.9 34.8 6.9 T
Slide 16: Cognyte Software Constant Currency
Cognyte Software Constant Currency Three Months Three Months Ended Year ended Ended ($ in millions) 4/30/2023 7/31/2023 10/31/2023 1131/2024 1131/2024 4130/2024 GAAP Revenue for the prior period ended $ 86.4 $ 811 $ 713 $ 733 = $ 3121 = $ 73.3 Revenue for the current period ended $ 733 $ 71 $ 794 $
Slide 17: Cognyte Software Gross Profit
Cognyte Software Gross Profit Three Months Three Months Ended Year ended Ended 4/30/2023 713112023 10/31/2023 1131/2024 4131/2024 4/30/2024 Total GAAP gross profit Total GAAP gross margin Revenue adjustments . . Intangible write-off _ — _ _ _— _ Amortization of acquired technology — — _ _ _ _ Stock-
Slide 18: Cognyte Software Operating Expenses
Cognyte Software Operating Expenses Three Months Ended Year ended 4/30/2023 7131/2023 10/31/2023 4131/2024 4131/2024 GAAP research and development, net as a % of GAAP revenue Three Months Ended 4/30/2024 ‘Stock-based compensation expenses (0.5) (0.6) (0.7) (0.5) (2.2) (0.4) Acquisition expenses, net
Slide 19: Operating and Adjusted EBITDA margins
Operating and Adjusted EBITDA margins Cognyte Software Operating and EBITDA Margins Three Months Three Months Ended Year ended Ended 4/30/2023 7/31/2023 10/31/2023 1/31/2024 1/31/2024 4/30/2024 GAAP operating profit (loss) $ (6.9) $ (5.6) $ (2.8) $ (2.9) $ (181) $ (2.3) GAAP operating margin 9.4% 7.
Slide 20: Other Income, Tax and Net Income
Other Income, Tax and Net Income Cognyte Software Other Income (Expenses), Tax and Net Income (loss) Months Three Months Ended Year ended Ended 43012023 7/31/2023 10/31/2023 __ 4/31/2024 413112024 4/30/2024 Other income (expense) reconciliation GAAP other income (expense), net $ 13$ 038 638 (31) $ 4
Slide 21: Tax and Net Income – FYE24 Revised
Tax and Net Income – FYE24 Revised (footnote 3) 21
Slide 22: Consolidated EPS and Diluted Shares Outstanding
Consolidated EPS and Diluted Shares Outstanding Three Months Ended (Shares in thousands) 713472023 40/31/2023 ‘Three Months Year ended Ended 4730/2024 GAAP diluted net income (loss) per share attributable to Cognyte software Ltd. $ (0.13) $ (0.13) $ Non-GAAP diuted net income (loss) per share attrib
Slide 23: EPS – FYE24 Revised
EPS – FYE24 Revised (footnote 3) 23
Slide 24: Footnotes
(1) The actual cash tax paid, net of refunds, was $2.4 million and $1.0 million for the three months ended April 30, 2024 and 2023, (2) (3) respectively. Revenue for the three months ended April 30, 2024, at constant currency is calculated by translating current-period GAAP or non-GAAP. foreign curr
Slide 25: Non-GAAP financial measures reconciliations
The press release includes reconciliations of certain financial measures not prepared in accordance with GAAP, consisting of non-GAAP revenue, non-GAAP gross profit and gross margins, non-GAAP research and development expenses, net, non-GAAP selling, general and administrative expenses, non-GAAP ope
Slide 26: Non-GAAP adjustment definitions
Amortization of acquired technology and other acquired intangible assets. When we acquire an entity, we are required under GAAP to record the fair values of the intangible assets of the acquired entity and amortize those assets over their useful lives. We exclude the amortization of acquired intangi
Slide 27: Business divestiture and other adjustments
Business Divestiture gainsAosses. \n certain cases, we may divest a portion of our business, which may result in a gain or loss on divestiture. These gains or losses may result from the sale of a business unit or the termination of a product line or service. We exclude these gains or losses from our
Slide 28: SIS Adjusted Non-GAAP
SIS Adjusted Non-GAAP SIS Adjusted Non-GAAP is a non-GAAP financial measure used by Cognyte that excludes SIS non-GAAP direct business contribution (which was divested on December 1, 2022) on financial measures such as non-GAAP revenue, non-GAAP gross profit, and gross margins, non-GAAP research and