Cognyte Software Ltd. · NASDAQ:CGNT
Cognyte Software — Q3 FYE24 Earnings Presentation
28 slides from Cognyte Software's earnings presentation, Dec 13, 2023
Slide 1: Q3 FYE24 Conference Call
Q3 FYE24 Conference Call +December 13, 2023 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: Solid Q3 Results
Solid Q3 Results Revenue* $77.1 $79.4 $73.4 $71.2 + Financial results ahead of expectations $61.5 − Revenue of $79.4 million − Non-GAAP Gross Margin of 70.2% − Gross Profit grew faster than revenue − Positive Non-GAAP Operating Income Q3 FYE23 Q4 FYE23 Q1 FYE24 Q2 FYE24 Q3 FYE24 Gross Profit Growing
Slide 4: Creating Customer Value – Significant Wins
Creating Customer Value – Significant Wins National Security National Law Enforcement Federal Agency Existing Customer Existing Customer New Customer ~$15 Million Deal ~$15 Million Deal ~$3 Million Deal Selected based on: Selected based on: Selected based on: Track record & High value & Unique value
Slide 5: Decision Intelligence Powered by AI
Decision Intelligence Powered by AI + Uncovering hidden critical insights + Make insights available to all users + Augment and accelerate decision making + Enhances customer value and competitive differentiation 5
Slide 6: Increasing FYE24 Outlook
Increasing FYE24 Outlook + Raising revenue outlook to $311 million with a range of +/- 1% − 10% year-over-year growth at midpoint on an SIS Adjusted non-GAAP basis + Gross profit expected to grow faster than revenue − More than 20% year-over-year growth at midpoint on an SIS Adjusted non-GAAP basis
Slide 7: Customer Feedback
Customer Feedback LAW ENFORCEMENT IN THE US “We saved some lives today!” "The system allows for a considerable gain of time vs. the time it took to NATIONAL INTELLIGENCE IN EUROPE complete a simple investigation without the system." LAW ENFORCEMENT IN ASIA PACIFIC "Cognyte is our main partner. With
Slide 8: Financial Summary
Financial Summary 88
Slide 9: Q3 FYE24 Highlights
Q3 FYE24 Highlights* Revenue $77.1 $79.4 $73.4 $71.2 + Revenue of $79.4 million $61.5 + Gross profit grew 48% y-o-y, faster than revenue + Gross margin 70.2%, up 910 basis points y-o-y + $4.6 million positive Adjusted EBITDA Q3 FYE23 Q4 FYE23 Q1 FYE24 Q2 FYE24 Q3 FYE24 + $24.8 million positive cash
Slide 10: Increasing FYE24 Outlook
Increasing FYE24 Outlook + Raising revenue outlook for FYE24 to $311 million with a range of +/- 1% ‒ 10% year-over-year growth at midpoint on an SIS Adjusted non-GAAP basis + Full-year non-GAAP gross margin of 69% ‒ 620 basis points year-over-year improvement on an SIS Adjusted non-GAAP basis + Exp
Slide 11: Growth & Profitability Momentum
Growth & Profitability Momentum* REVENUE GROWTH GROSS PROFIT GROWING RETURN TO POSITIVE FASTER THAN REVENUE ADJUSTED EBITDA $77.1 $79.4 $55.7 $73.4 $53.3 $71.2 $50.2 $4.6 $2.3 $46.2 $61.5 -$2.3 -$4.8 $37.6 -$18.3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FYE23 FYE23 FYE24 FYE24 FYE24 FYE23 FYE23
Slide 12: Thank you
Thank you cognyte.com 12
Slide 13: Appendix
Appendix 13 13
Slide 14: Reconciliation of Non-GAAP to SIS Adjusted Non-GAAP
Reconciliation of Non-GAAP to SIS Adjusted Non-GAAP 14
Slide 15: Summary metrics
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Slide 16: Summary metrics – SIS Adjusted
Summary metrics – SIS Adjusted 16
Slide 17: Revenue metrics
‘Three Months Ended Year Ended ‘Three Months Ended Nine Months Ended 4130/2022 7131/2022 10/31/2022 4131/2023 I 4/30/2023 713112023 40/31/2023 40/31/2023 Software and software services revenue - GAAP Professional services and other revenue - GAAP. Total revenue - GAAP Estimated software and software
Slide 18: Constant currency metrics
Constant currency metrics 18
Slide 19: Operating expenses
Nine Months Three Months Ended Year Ended Three Months Ended Ended 4/30/2022 7/31/2022 10/31/2022 4/31/2023 1131/2023 4130/2023 7131/2023 10/31/2023 10/31/2023 GAAP research and development, net asa % of GAAP revenue ‘Stock-based compensation expenses (18) (1.9) (1.3) 0) (80) (05) (06) 07) (1.8) Res
Slide 20: Gross Profit
Nine Months Ended Three Months Ended Year Ended Three Months Ended 4/30/2022 7134/2022 40/31/2022 4/31/2023 4/31/2023 7/34/2023 40/34/2023 40/34/2023 Total GAAP gross profit $s 516 $ 514 $ 44.2 $ 448 $ 1921 498 $ 52.9 $ Total GAAP gross margin 59.7% 63.4% 62.0% 61.2% 61.6% 67.9% 68.7% Revenue adjust
Slide 21: Operating and Adjusted EBITDA margins
Operating and Adjusted EBITDA margins 21
Slide 22: Other Income, Tax and Net Income
Other Income, Tax and Net Income 22
Slide 23: EPS
Nine Months ‘Three Months Ended ‘Year Ended Three Monts Ended Ended (Shares in thousands) 403172022 4397073 43072023 GAAP diluted net income (loss) per share attributable to Cognyte software Lid. $ (0.45) § (0.43) $ O41) & 049) Ss (168) § (0.13) $ 0.13) $ Non-GAAP diluted net income (loss) per share
Slide 24: Footnotes
The actual cash tax paid, net of refunds, was $4.4 million and $1.3 million for the nine and three months ended October 31, 2023, respectively and $9.5 million and $1.8 million for the nine and three months ended October 31, 2022, respectively. Revenue for the three and nine months ended October 31,
Slide 25: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 25
Slide 26: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 26
Slide 27: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 27
Slide 28: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 28