Cognyte Software Ltd. · NASDAQ:CGNT
Cognyte Software — Q1 FYE22 Earnings Presentation
26 slides from Cognyte Software's earnings presentation, Jun 22, 2021
Slide 1: Q1 FYE22 Conference Call
Q1 FYE22 Conference Call June 22, 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: Strong start as a separate public company
Strong start as a separate public company Q1 Revenue Growth Q1 Gross Profit Growth Q1 Adjusted EBITDA Growth Up 12.3% (Non-GAAP); 13.1% (GAAP) Up 18.8% (Non-GAAP); 19.5% (GAAP) Up 66.1% % year-over-year $83.6 $115.2 $21.1 $81.9 $114.7 $70.4 $102.5 $68.6 $12.7 $101.4 1QFYE21 1QFYE22 1QFYE21 1QFYE22 1
Slide 4: Our opportunity – address a large TAM
Our opportunity – address a large TAM Market needs Cutting edge analytics Innovation Open analytics platform that can ~$30bn support multiple use cases Addressable Market ~10% growth per year 4
Slide 5: Execution of our strategy – Q1 customer examples
Execution of our strategy – Q1 customer examples National National National Law Enforcement Security Intelligence Expansion Replacing Expansion of Capacity of Use Cases Home-grown Solution $14 Million Order $9 Million Order $6 Million Order Selected based on: Selected based on: Selected based on: Re
Slide 6: A new platform use case - blockchain analytics solution
A new platform use case - blockchain analytics solution Customers’ Challenge Cognyte’s Response + Cryptocurrencies are used for illegal + Add cryptocurrency use case to our activities platform + Cryptocurrencies are anonymous and + Identify illicit transactions borderless + Generate actionable intel
Slide 7: Well positioned for strong FYE22 and long-term growth
Well positioned for strong FYE22 and long-term growth Q1 FYE22 FYE23 & FYE24 Strong Execution Double Digit Accelerating Out of the Gate Revenue Growth Growth with Expanding Margins 7
Slide 8: Financial Summary
Financial Summary 88
Slide 9: Q1 FYE22 Recap
Q1 FYE22 Recap Financial Results Key Trends + Revenue + Strong start to the year Non-GAAP: $115.2 million, up 12.3% GAAP: $114.7 million, up 13.1% + Multiple seven and eight-digit orders + Adjusted EBITDA $21.1 million, up 66% + Results driven by execution of software strategy – significant gross +
Slide 10: Mix shift – positive impact to financial model
Mix shift – positive impact to financial model % of Revenue Gross Margin Gross Profit Generated From Software $83.6 73% 89% $81.9 71% $70.4 69% $68.6 85% 68% 1Q FYE21 1Q FYE22 1Q FYE21 1Q FYE22 1Q FYE21 1Q FYE22 Favorable Software/Services Mix Shift Significant Margin Expansion Strong Gross Profit G
Slide 11: FYE22 outlook – strong start; expect 14% normalized adjusted EBITDA growth
FYE22 outlook – strong start; expect 14% normalized adjusted EBITDA growth FYE22 Revenue FYE22 Adjusted EBITDA and Normalized Adjusted EBITDA (1) $490 $500 +/- 2% $89 $490 $85 $480 $470 $460 $450 $447 $74 $440 $444 $430 $420 FYE21 FYE22P FYE21 FYE22P GAAP Revenue Non-GAAP Revenue FYE22 Diluted EPS:
Slide 12: Summary
Summary First quarter as pure play security analytics company Open platform supports multiple use cases and fast innovation Large addressable market with favorable industry trends FYE22 Outlook: $490 million of revenue +/- 2% and $0.80 Diluted EPS 3-year outlook: accelerating revenue growth with mar
Slide 13: Thank you
Thank you cognyte.com 13
Slide 14: Appendix
Appendix 14 14
Slide 15: Financial Outlook
FYE22 Outlook Our non-GAAP outlook for the quarter ending July 31, 2021, is as follows: Revenue: Up ~9% Y-0-Y + Diluted EPS: ~$0.14 (Our non-GAAP outlook for the year ending January 31, 2022 (“FYE22") remains as follows: ‘+ Revenue: Up ~10% to $490 million with a range of +/- 2% + Diluted EPS: $0.80
Slide 16: Summary metrics
Summary metrics Year Ended Year Ended Three Months Ended Year Ended Three Months Ended 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 ($ in millions) GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP GAAP Non-GAAP Soft
Slide 17: Revenue metrics
Revenue metrics Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ in millions) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 Software and software services revenue - GAAP 349.2 373.3 86.1 92.2 92.6 106.2 377.2 102.4 Professional services and
Slide 18: Constant currency metrics
Constant currency metrics Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ in millions) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 GAAP Revenue for the prior period ended $ 395.1 $ 433.4 $ 108.2 $ 112.9 $ 106.9 $ 129.1 $ 457.1 $ 101.4 Re
Slide 19: Gross profit
Gross profit Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ in millions) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 Total GAAP gross profit $ 256.7 $ 293.1 $ 68.6 $ 73.3 $ 82.3 $ 86.6 $ 310.8 $ 81.9 Total GAAP gross margin 59.2% 64.1%
Slide 20: Operating expenses
Operating expenses Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ in millions) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 GAAP research and development, net $ 100.0 $ 111.3 $ 31.2 $ 29.1 $ 31.9 $ 36.5 $ 128.7 $ 33.4 as a % of GAAP reve
Slide 21: Operating and EBITDA margins
Operating and EBITDA margins Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ in millions) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 GAAP operating income (loss) $ 18.7 $ 27.3 $ (3.2) $ 11.2 $ 9.9 $ 0.4 $ 18.3 $ (2.6) GAAP operating mar
Slide 22: Other expense, tax and net income
Other expense, tax and net income Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ in millions) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 Other income (expense) reconciliation GAAP other income (expense), net $ 1.3 $ 2.6 $ 0.1 $ 0.9 $ 3
Slide 23: EPS
EPS Three Months Year Ended Year Ended Three Months Ended Year Ended Ended ($ ,shares in thousands) 1/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 1/31/2021 4/30/2021 GAAP diluted net income (loss) per share attributable to Cognyte Software Ltd. $ 0.13 $ 0.31 $ (0.04) $ 0.07 $ 0.12 $ 0
Slide 24: Footnotes
(1) (2) (3) (4) The figures for the periods prior to the three months ended April 30, 2021 represent the stock-based compensation expenses applicable to cost of revenue, research and development expenses and selling, general and administrative expenses as allocated to Cognyte from the combined Verin
Slide 25: 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 Generally Accepted Accounting Principles (“GAAP”), consisting of non-GAAP revenue, non-GAAP software and software service revenue, non-GAAP professi
Slide 26: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures Separation expenses. On December 4, 2019, Verint announced its intention to separate into two independent publicly traded companies: Cognyte Software Ltd., which consists of Verint’s Cyber Intelligence Solutions business, and Verint Systems Inc., which