Cognyte Software Ltd. · NASDAQ:CGNT
Cognyte Software — Q2 FYE25 Earnings Presentation
27 slides from Cognyte Software's earnings presentation, Sep 10, 2024
Slide 1: Q2 FYE25 Results
Q2 FYE25 Results NASDAQ: CGNT September 10, 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 Q2 Performance
Strong Q2 Performance Revenue $83.7 $84.4 $82.7 + Revenue of $84.4 million, ~10% year-over-year $77.1 $79.4 growth + Non-GAAP Gross Profit growing faster than Revenue Q2 FYE24 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 + $8.3 million of Adjusted EBITDA + Solutions delivering value to customers, driving Adj
Slide 4: Addressing Growing & Evolving Threats
Addressing Growing & Evolving Threats + Investigative challenges becoming increasingly complex + Bad actors continually evolving to conceal activities + Empowering customers by delivering cutting- edge innovation powered by AI and advanced analytics 4
Slide 5: Raising FYE25 Outlook
Raising FYE25 Outlook Revenue $347.0 $313.5 + Revenue of $347 million with a range of +/- 2% $283.0 − Approximately 11% year-over-year growth at midpoint FYE23 FYE24 FYE25 + Adjusted EBITDA of $25 million at the midpoint Outlook of the revenue range − Leverage in our business model Adjusted EBITDA $
Slide 6: Financial Summary
Financial Summary Confidential and proprietary information of Cognyte. 66
Slide 7: Q2 FYE25 Highlights
Q2 FYE25 Highlights Revenue $83.7 $84.4 $82.7 + Revenue of $84.4 million $77.1 $79.4 − Approximately 10% year-over-year growth + Recurring Revenue of $46.6M or 55% of total revenue + Non-GAAP Gross Profit of $60.2 million Q2 FYE24 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 − Approximately 13% year-over-yea
Slide 8: Q2 FYE25 KPIs
Q2 FYE25 KPIs Billings Short-Term RPO $320.6 $97.8 $312.4 $81.0 $302.5 $78.2 $77.8 $290.9 $70.1 $281.8 Q2 FYE24 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q2 FYE24 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Non-GAAP Gross Profit Adjusted EBITDA $58.8 $60.2 $8.3 $57.8 $55.7 $53.3 $4.6 $5.0 $4.3 $2.3 Q2 FYE24 Q3 FY
Slide 9: Raising FYE25 Outlook
Raising FYE25 Outlook + Revenue of $347 million with a range of +/- 2% − Approximately 11% year-over-year growth at midpoint + Adjusted EBITDA of $25 million at the midpoint of the revenue range − Leverage in our business model − $16 million year-over-year growth +Positioned for continuous profitabl
Slide 10: Strong Execution
Strong Execution Revenue Non-GAAP Gross Profit Improved Profitability Growth Growing Faster than Revenue Adjusted EBITDA Increasing Growing & winning $8.3 $84.4 customers $83.7 $82.7 $60.2 $58.8 $79.4 $57.8 $77.1 $55.7 $53.3 $5.0 $4.6 $4.3 Technology leadership $2.3 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2
Slide 11: Thank you
Thank you cognyte.com 11
Slide 12: Appendix
Appendix Confidential and proprietary information of Cognyte. 12 12
Slide 13: Summary metrics
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Slide 14: Revenue metrics
Cognyte Software Revenue Metrics $ in millions) 4130/2023 ix Months ‘Three Months Ended Year ended Three Months Ended Ended 23 10/31/2023 4131/2024 4131/2024 413012024 713112024 7131/2024 Software and software services revenue - GAAP 66.5 667 16 738 2786 758 723 148.1 Professional services and other
Slide 15: Constant currency metrics
Constant currency metrics 15
Slide 16: Gross profit
Cognyte Software Gross Profit Total GAAP gross profit Total GAAP gross margin Revenue adjustments Intangible write-off Amortization of acquired technology ‘Stock-based compensation expenses Acquisition expenses, net Restructuring expenses ‘Separation expenses Total non-GAAP gross profit Total non-GA
Slide 17: Operating expenses
Cognyte Software Operating Expenses Six Months Three Months Ended Year ended Three Months Ended Ended $ in millions) ; 7131/2023 10/31/2023 4131/2024 4131/2024 4130/2024 713112024 713112024 GAAP research and development, net $s 277 $ 2za$ 25.4 $ as a% of GAAP revenue 37.9% 35.2% 32.0% 'Stock-based c
Slide 18: Operating and adjusted EBITDA margins
Operating and adjusted EBITDA margins 18
Slide 19: Other income, tax and new income
Other income, tax and new income 19
Slide 20: Tax and net income – FYE24 revised (footnote 3)
Tax and net income – FYE24 revised (footnote 3) 20
Slide 21: EPS
‘Consolidated EPS and Diluted Shares Outstanding Si Months Three Months Ended Yeat ended Three Months Ended Ended 413012023 a0 01317072 a3v2024 a3v2024 ar3017024 zrv27074 z307024 |GAAP ciluted net income ((oss) per share ettibutable to Cognyte software Lt. s (0.13) § 007 $ 8 0.07) § (003) § (0.10) [
Slide 22: EPS – FYE24 Revised (footnote 3)
EPS – FYE24 Revised (footnote 3) 22
Slide 23: Footnotes
(1) (2) (3) (The actual cash tax paid, net of refunds, was $1.6 million and $4.0 million for the three and six months ended July 31, 2024, respectively and $2.1 million and $3.1 million for the three and six months ended July 31, 2023, respectively. Revenue for the three and six months ended July 31
Slide 24: Supplemental information and non-GAAP measures
Supplemental information and non-GAAP measures 24
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