Slide 1: Q3 FYE22 Conference Call
Q3 FYE22 Conference Call December 21, 2021 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: On track for solid first year as an independent public company
On track for solid first year as an independent public company FYE22 Quarterly Revenue Highlights Sequential Growth + Q3 - Ahead of Expectations ~$130 (GAAP/non-GAAP) $118.7 $115.2 $116.4 ‒ Revenue: $118.4/$118.7 ‒ EPS: $0.03/$0.21 $114,7 $118,4 + FYE22 Guidance $116,0 ‒ Revenue $480 +/- 2% ‒ EPS $0
Slide 4: Winning large deals – Q3 customer examples
Winning large deals – Q3 customer examples National Security Agency National Security Agency National Security Agency Expanding Functionality Expanding Capacity Expanding Capacity ~$15 Million Deal ~$10 Million Deal ~$10 Million Deal Selected based on: Selected based on: Selected based on: Ability t
Slide 5: Platform leading innovation
Platform leading innovation Organized crime use case Customer Challenge Cognyte Response + Identify criminal organization members + Platform leverages digital footprints to connect dots and accelerate investigations + Understand organization’s ecosystem including leadership, funding sources and inte
Slide 6: Long-term growth opportunity
Long-term growth opportunity Security challenges are becoming more complex requiring continual innovation Data is growing rapidly and is highly fragmented across organizations Security organizations increasingly ~$30bn adopt open analytics software Addressable Market ~10% growth per year 6
Slide 7: Cognyte's differentiation - why we win
Cognyte’s differentiation - why we win Technology Strength Market Leadership + Approximately 1,000 individuals dedicated to R&D + 20+ year history of innovation + Strong analytics software platform, open and highly interoperable + Customers in 100+ countries + Broad and growing portfolio addresses a
Slide 8: Summary
Summary On track for solid first year as an independent public company Large growing market with positive industry trends Market leader well positioned for long-term growth 8
Slide 9: Financial Summary
Financial Summary 99
Slide 10: Q3 FYE22 Recap
Q3 FYE22 Recap Q3 YTD Highlights + Revenue + Revenue + Q3 ahead of GAAP: $118.4 million GAAP: $349.1 million expectations Non-GAAP: $118.7 million Non-GAAP: $350.3 million + Multiple large orders + Adjusted EBITDA + Adjusted EBITDA Non-GAAP: $22.1 million Non-GAAP: $61.8 million + Platform supports
Slide 11: FYE22: Software strategy driving double digit gross profit growth
FYE22: Software strategy driving double digit gross profit growth Quarterly FYE 22 Gross Profit Full-Year Gross Profit ~$350 ~$92 $88 $318 $86 $84 $311 $84 $86 $82 Q1FYE22 Q2FYE22 Q3FYE22 Q4FYE22P FYE21 FYE22P GAAP Non-GAAP GAAP Non-GAAP Software mix continued to improve this year as we sell less ha
Slide 12: FYE22 guidance
FYE22 guidance Revenue Gross Margin Adjusted EBITDA and Normalized Adjusted EBITDA (1) $480 +/- 2% $89 ~$85 73% 71% $447 $74 70% $444 FYE21 FYE22P FYE21 FYE22P FYE21 FYE22P GAAP Revenue Non-GAAP Revenue GAAP Revenue Non-GAAP Revenue Gross Profit Growth: Diluted EPS: Improving Software Mix ~10% $0.80
Slide 13: Summary
Summary On track for solid first year as a pure play security analytics company Expect 10% gross profit growth for the year Open platform use cases position us well for long-term growth 13
Slide 14: Thank you
Thank you cognyte.com 14
Slide 15: Appendix
Appendix 15 15
Slide 16: Financial Outlook
Our non-GAAP outlook for the year ending January 31, 2022 (“FYE22°) is as follows: + Revenue: $480 million with a range of +/- 2% + Diluted EPS: $0.80 at the midpoint of our revenue outlook Our non-GAAP outlook for FYE22 excludes the following GAAP measures which we are able to quantify with reasona
Slide 17: Summary metrics
Thee Mi 3010412021 "30712021 3110120: 7 Ais d urand GAAP GAAP GAAP Non-GAAP g » [Software and software sewvices revenue $377.2 $3808 $102.4 $1029 $1019 $1023 ‘$100.0 $1003 ££ [Professional services and other reven S052 $052 rz] 3123 Sat Sat a4 a4 $448 $448 Revenue Metrics tob 22 | otatrevenue Has 34
Slide 18: Revenue metrics
Year Ended Three Months Ended Year Ended Three Months Ended Year to date {$ in millions) #312020 4130/2020 7312020 10/31/2020 3112021 13112021 4130/2021 71312021 10/31/2021 101312021 ‘Software and software services revenue - GAAP 373.3 . Professional services and other revenue - GAAP 83.8 15.3 128 2
Slide 19: Constant currency metrics
Constant currency metrics 19
Slide 20: Gross profit
Gross profit Year Ended Three Months Ended Year Ended Three Months Ended Year to date ($ in millions) 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 7/31/2021 10/31/2021 10/31/2021 Total GAAP gross profit $ 293.1 $ 68.6 $ 73.3 82.3 $ 86.6 $ 310.8 $ 81.9 $ 83.9 $ 86.1 $ 251.9
Slide 21: Operating expenses
Year Ended Three Months Ended Year Ended Three Months Ended Yearto date ($ in millions) 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 7/31/2021 10/31/2021 10/3" GAAP research and development, net $ 113°-$ 312 $ 291 $ 319 $ 365 $ 1287 $ 33.4 § 36.1 $ 35.5 $ 105.1 as a % of GA
Slide 22: Operating and EBITDA margins
Operating and EBITDA margins 22
Slide 23: Other expense, tax and net income
Other expense, tax and net income 23
Slide 24: EPS
ned wee Months Ended Year Ended Three Months Ended Year to date (Sharocin thouconde) usu2020 413072020 213112020 03112020 307021 u3u7021 4413012071 21302021 907312071 4073172021 GAAP diluted net income (loss) per share attibutable to Coonyte softare Ltd. 8 ots (004) § 007 $ 012 $ ors 02 § (0.07) S (
Slide 25: Footnotes
Note: Amounts may not foot throughout the workbook due to rounding. (1) (2) (3) (4) The figures for the periods prior to the three and nine months ended October 31, 2021 represent the stock-based compensation expenses applicable to cost of revenue, research and development expenses and selling, gene
Slide 26: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 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, net, non-GAAP selling, general and
Slide 27: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 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.
Slide 28: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures Non-GAAP income tax adjustments. We exclude our GAAP provision (benefit) for income taxes from our non-GAAP measures of net income attributable to Cognyte Software Ltd., and instead include a non-GAAP provision for income taxes, determined by applying a