Slide 1: Q2 FYE24 Conference Call
Q2 FYE24 Conference Call +September 12, 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: Positive Momentum Continues in Q2
Positive Momentum Continues in Q2 + Significant customer wins + Solid financial results − Revenue of $77 million, ahead of expectations − Gross profit grew faster than revenue − Positive Adjusted EBITDA + On a path for sustainable growth 3
Slide 4: Creating Customer Value – Significant Wins
Creating Customer Value – Significant Wins National Security National Intelligence National Intelligence New Customer New End User New Customer >$20 Million Deal ~$4 Million Deal ~$2.5 Million Deal Selected based on: Selected based on: Selected based on: Technology strength & Ability to address evol
Slide 5: Cutting Edge Investigative Analytics Solutions
Cutting Edge Investigative Analytics Solutions + Our advanced technology helps customers improve speed and success rate of investigations + Recent AI developments accelerate our innovation and differentiation + Example use cases − Fighting drug trafficking − Combatting terrorist activities 5
Slide 6: Increasing FYE24 Outlook
Increasing FYE24 Outlook + Raising revenue outlook to $307 million at the midpoint with a range of +/- 2% − 8.5% year-over-year growth at midpoint on an SIS Adjusted non-GAAP basis + Gross profit expected to grow faster than revenue − More than 15% year-over-year growth at midpoint on an SIS Adjuste
Slide 7: Financial Summary
Financial Summary 77
Slide 8: Q2 FYE24 Highlights
Q2 FYE24 Highlights* Non-GAAP Revenue $77.1 + Revenue of $77 million $80.0 $73.4 $72.9 $71.2 $70.0 + Gross profit grew 13% y-o-y, faster $61.5 $60.0 than revenue $50.0 + Non-GAAP gross margin 69.2%, up $40.0 Q2 Q3 Q4 Q1 Q2 450 basis points y-o-y FYE23 FYE23 FYE23 FYE24 FYE24 + $2.3 million positive
Slide 9: Increasing FYE24 Outlook
Increasing FYE24 Outlook + Raising revenue guidance for FYE24 to $307 million at the midpoint with a range of +/- 2% ‒ 8.5% year-over-year growth at midpoint on an SIS Adjusted non-GAAP basis + Full-year non-GAAP gross margin of 68% ‒ 520 basis points year-over-year improvement at midpoint on an SIS
Slide 10: Positive Momentum Continues
Positive Momentum Continues Solid Q2 results Positive trends support improved outlook AI technology provides opportunity for incremental value Well positioned for growth 10
Slide 11: Thank you
Thank you cognyte.com 11
Slide 12: Appendix
Appendix 12 12
Slide 13: Reconciliation of Non-GAAP to SIS Adjusted Non-GAAP
Reconciliation of Non-GAAP to SIS Adjusted Non-GAAP 13
Slide 14: Summary metrics
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Slide 15: Summary metrics – SIS Adjusted
Summary metrics – SIS Adjusted 15
Slide 16: Revenue metrics
‘Three Months Ended Year Ended ‘Three Months Ended ata nde: 4130/2022 7/34/2022 10/34/2022 4134/2023 4134/2023 4130/2023 7131/2023 7134/2023 Software and software services revenue - GAAP Professional services and other revenue - GAAP. Total revenue - GAAP Estimated software and software services rev
Slide 17: Constant currency metrics
Constant currency metrics 17
Slide 18: Gross Profit
Six Months Three Months Ended Year Ended ‘Three Months Ended Ended 4/30/2022 713112022 10/31/2022 413112023 113112023 4/30/2023 713112023 7/31/2023 Total GAAP gross profit 498 § 62.9 102.7 Total GAAP gross margin 69.7% 63.4% 62.0% 61.2% 61.6% 67.9% 68.7% 68.3% Revenue adjustments 02 02 02 03 10 04 -
Slide 19: Operating expenses
Six Months Three Months Ended Year Ended Three Months Ended Ended 4/30/2022 7134/2022 10/31/2022 413112023 4/31/2023 4/30/2023 713112023 713112023 GAAP research and development, net as a ‘% of GAAP revenue ‘Stock-based compensation expenses. (1.8) (1.9) (1.3) (3.0) (8.0) 05) (0.6) aay Acquisition ex
Slide 20: Operating and Adjusted EBITDA margins
Operating and Adjusted EBITDA margins 20
Slide 21: Other Income, Tax and Net Income
Other Income, Tax and Net Income 21
Slide 22: EPS
[shares in thousands) GAAP ditted net income (loss) por share attributable to Cognyte software Ltd [Non-GAAP diluted net income (Joss) per share atisibutable to Cognyte software Lid. GAAP weighted-average shares used in computing diluted net income (loss) per common share Additional weightod-avorago
Slide 23: Footnotes
(1) (2) The actual cash tax paid, net of refunds, was $3.1 million and $2.1 million for the six and three months ended July 31, 2023, respectively and $7.8 million and $4.8 million for the six and three months ended July 31, 2022, respectively. Revenue for the three and six months ended July 31, 202
Slide 24: 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 expenses, net, non-GAAP selling, g
Slide 25: 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 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 Supplemental Information About Constant Currency Because we operate on a global basis and transact business in many currencies, fluctuations in foreign currency exchange rates can affect our consolidated U.S. dollar operating results. To facilitate the