Cognyte Reports Fourth Quarter and Fiscal Year Ended January 31, 2025 Financial Results
Cognyte Software (NASDAQ: CGNT) reported strong Q4 and fiscal year 2025 results, with notable revenue growth and profitability improvements. Q4 revenue reached $94.5 million, up 13% year-over-year, while full-year revenue grew 12% to $350.6 million.
Q4 highlights include GAAP operating income of $0.7 million (vs. -$2.9M prior year), Non-GAAP operating income of $6.0 million, and Adjusted EBITDA increase of 114% to $9.3 million. The company's cash position strengthened to $113.1 million, with operating cash flow of $46.8 million for FY2025.
For fiscal 2026, Cognyte projects revenue of approximately $392 million (±2%), representing 12% growth, with Adjusted EBITDA of $43 million and Non-GAAP EPS of $0.16 at the midpoint. The company's total RPO stands at $545.8 million, with short-term RPO at $335.3 million.
Cognyte Software (NASDAQ: CGNT) ha riportato risultati solidi per il quarto trimestre e per l'anno fiscale 2025, con una crescita significativa dei ricavi e miglioramenti nella redditività. I ricavi del Q4 hanno raggiunto 94,5 milioni di dollari, in aumento del 13% rispetto all'anno precedente, mentre i ricavi complessivi per l'anno sono cresciuti del 12% a 350,6 milioni di dollari.
I punti salienti del Q4 includono un reddito operativo GAAP di 0,7 milioni di dollari (rispetto a -2,9 milioni di dollari dell'anno precedente), un reddito operativo Non-GAAP di 6,0 milioni di dollari e un aumento dell'EBITDA rettificato del 114% a 9,3 milioni di dollari. La posizione di cassa dell'azienda è migliorata a 113,1 milioni di dollari, con un flusso di cassa operativo di 46,8 milioni di dollari per l'anno fiscale 2025.
Per l'anno fiscale 2026, Cognyte prevede ricavi di circa 392 milioni di dollari (±2%), che rappresentano una crescita del 12%, con un EBITDA rettificato di 43 milioni di dollari e un EPS Non-GAAP di 0,16 dollari a metà intervallo. Il totale RPO dell'azienda è di 545,8 milioni di dollari, con un RPO a breve termine di 335,3 milioni di dollari.
Cognyte Software (NASDAQ: CGNT) reportó resultados sólidos para el cuarto trimestre y el año fiscal 2025, con un notable crecimiento de ingresos y mejoras en la rentabilidad. Los ingresos del Q4 alcanzaron 94.5 millones de dólares, un aumento del 13% en comparación con el año anterior, mientras que los ingresos anuales crecieron un 12% hasta 350.6 millones de dólares.
Los aspectos destacados del Q4 incluyen un ingreso operativo GAAP de 0.7 millones de dólares (frente a -2.9 millones del año anterior), un ingreso operativo Non-GAAP de 6.0 millones de dólares y un aumento del EBITDA ajustado del 114% a 9.3 millones de dólares. La posición de efectivo de la empresa se fortaleció a 113.1 millones de dólares, con un flujo de efectivo operativo de 46.8 millones de dólares para el año fiscal 2025.
Para el año fiscal 2026, Cognyte proyecta ingresos de aproximadamente 392 millones de dólares (±2%), lo que representa un crecimiento del 12%, con un EBITDA ajustado de 43 millones de dólares y un EPS Non-GAAP de 0.16 dólares en el punto medio. El total de RPO de la empresa se sitúa en 545.8 millones de dólares, con un RPO a corto plazo de 335.3 millones de dólares.
Cognyte Software (NASDAQ: CGNT)는 2025 회계연도 4분기 및 연간 실적을 발표하며 주목할 만한 매출 성장과 수익성 개선을 보였습니다. 4분기 매출은 9,450만 달러에 달하며, 전년 대비 13% 증가했으며, 연간 매출은 12% 증가하여 3억 5,060만 달러에 이릅니다.
4분기 주요 내용으로는 GAAP 운영 수익이 70만 달러(전년 -290만 달러)였으며, 비 GAAP 운영 수익은 600만 달러, 조정된 EBITDA는 114% 증가하여 930만 달러에 달했습니다. 회사의 현금 보유액은 1억 1,310만 달러로 강화되었으며, 2025 회계연도 운영 현금 흐름은 4,680만 달러였습니다.
2026 회계연도에 대해 Cognyte는 약 3억 9,200만 달러 (±2%)의 매출을 예상하고 있으며, 이는 12% 성장에 해당하며, 조정된 EBITDA는 4,300만 달러, 비 GAAP EPS는 중간값에서 0.16 달러로 예상됩니다. 회사의 총 RPO는 5억 4,580만 달러이며, 단기 RPO는 3억 3,530만 달러입니다.
Cognyte Software (NASDAQ: CGNT) a annoncé de solides résultats pour le quatrième trimestre et l'exercice fiscal 2025, avec une croissance notable des revenus et des améliorations de la rentabilité. Les revenus du Q4 ont atteint 94,5 millions de dollars, en hausse de 13% par rapport à l'année précédente, tandis que les revenus annuels ont augmenté de 12% pour atteindre 350,6 millions de dollars.
Les points forts du Q4 incluent un bénéfice d'exploitation GAAP de 0,7 million de dollars (contre -2,9 millions de dollars l'année précédente), un bénéfice d'exploitation Non-GAAP de 6,0 millions de dollars et une augmentation de l'EBITDA ajusté de 114% à 9,3 millions de dollars. La position de trésorerie de l'entreprise s'est renforcée à 113,1 millions de dollars, avec un flux de trésorerie opérationnel de 46,8 millions de dollars pour l'exercice fiscal 2025.
Pour l'exercice fiscal 2026, Cognyte prévoit des revenus d'environ 392 millions de dollars (±2%), représentant une croissance de 12%, avec un EBITDA ajusté de 43 millions de dollars et un BPA Non-GAAP de 0,16 dollar à la médiane. Le total du RPO de l'entreprise s'élève à 545,8 millions de dollars, dont un RPO à court terme de 335,3 millions de dollars.
Cognyte Software (NASDAQ: CGNT) hat starke Ergebnisse für das vierte Quartal und das Geschäftsjahr 2025 gemeldet, mit bemerkenswertem Umsatzwachstum und Verbesserungen der Rentabilität. Der Umsatz im Q4 erreichte 94,5 Millionen Dollar, was einem Anstieg von 13% im Vergleich zum Vorjahr entspricht, während der Gesamtumsatz für das Jahr um 12% auf 350,6 Millionen Dollar wuchs.
Zu den Höhepunkten des Q4 gehören ein GAAP-Betriebsgewinn von 0,7 Millionen Dollar (gegenüber -2,9 Millionen Dollar im Vorjahr), ein Non-GAAP-Betriebsgewinn von 6,0 Millionen Dollar und ein Anstieg des bereinigten EBITDA um 114% auf 9,3 Millionen Dollar. Die Liquiditätsposition des Unternehmens verbesserte sich auf 113,1 Millionen Dollar, mit einem operativen Cashflow von 46,8 Millionen Dollar für das Geschäftsjahr 2025.
Für das Geschäftsjahr 2026 prognostiziert Cognyte einen Umsatz von etwa 392 Millionen Dollar (±2%), was einem Wachstum von 12% entspricht, mit einem bereinigten EBITDA von 43 Millionen Dollar und einem Non-GAAP EPS von 0,16 Dollar im Median. Der gesamte RPO des Unternehmens beträgt 545,8 Millionen Dollar, wobei der kurzfristige RPO bei 335,3 Millionen Dollar liegt.
- 13% Q4 revenue growth to $94.5 million
- 114% increase in Q4 Adjusted EBITDA to $9.3 million
- Operating cash flow improved to $46.8 million in FY2025
- Cash position increased to $113.1 million from $83.1 million YoY
- Strong FY2026 guidance with 12% projected revenue growth
- Software revenue increased by $28.1 million to $306.7 million in FY2025
- Q4 Non-GAAP Gross margin improved 250 bps to 71.5%
- FY2025 GAAP net loss of $7.2 million
- FY2025 GAAP operating loss of $5.1 million
- Q4 GAAP net loss of $0.2 million
Insights
Cognyte's Q4 and FY2025 results demonstrate strong financial momentum with impressive metrics across the board. The 13% Q4 revenue growth and 12% full-year revenue increase showcase robust demand for their investigative analytics software. Most striking is the company's profitability trajectory - Q4 non-GAAP operating income jumped to
The company's financial health has markedly improved, with cash reserves increasing to
Cognyte's FY2026 guidance signals continued momentum with projected revenue of approximately
Double-digit revenue growth and strong year-over-year increase in profitability
Guides to fiscal 2026 revenue of approximately
HERZLIYA,
Financial Summary for Three Months Ended January 31, 2025
-
Q4 FYE25 Revenue was
, up approximately$94.5 million 13% compared to the same period last year. -
Q4 FYE25 GAAP operating income was
, compared to an operating loss of$0.7 million in the same period last year.$2.9 million -
Q4 FYE25 Non-GAAP operating income was
, compared to operating income of$6.0 million in the same period last year.$1.0 million -
Q4 FYE25 GAAP Net loss was
, compared to a net loss of$0.2 million in the same period last year.$1.9 million -
Q4 FYE25 Adjusted EBITDA increased by approximately
114% to , compared to$9.3 million in the same period last year, demonstrating the leverage we have in our financial model.$4.3 million
Financial Summary for the Year Ended January 31, 2025
-
FYE25 Revenue was
, up approximately$350.6 million 12% compared to last fiscal year. -
FYE25 GAAP operating loss was
, compared to an operating loss of$5.1 million last fiscal year.$18.1 million -
FYE25 Non-GAAP operating income improved significantly to
, compared to an operating loss of$15.7 million last fiscal year.$4.2 million -
FYE25 GAAP Net loss was
, compared to a net loss of$7.2 million last fiscal year.$11.6 million -
FYE25 Adjusted EBITDA more than tripled to
, compared to$29.1 million last fiscal year.$9.0 million
Balance Sheet and Net Cash Provided by Operating Activities
-
As of January 31, 2025, cash, cash equivalents and restricted cash were
, compared to$113.1 million at January 31, 2024.$83.1 million -
During the three and twelve months ended January 31, 2025, net cash provided by operating activities was
and$18.7 million , respectively, compared to net cash provided by operating activities of$46.8 million and$9.8 million , respectively, in the same periods last fiscal year.$34.6 million
Management Commentary
“Our strong performance in fiscal year 2025 speaks to the value our innovation provides and the trust customers place in Cognyte,” said Elad Sharon, Cognyte’s chief executive officer. “Our strategy of deepening relationships with existing customers and expanding into new accounts is reflected in our momentum. We help our customers stay ahead of evolving threats by providing advanced technologies, including AI. We believe Cognyte is well positioned for long-term growth.”
“We closed our fiscal year with another quarter of double-digit revenue growth, significant improvement in profitability and strengthening our balance sheet,” said David Abadi, Cognyte’s chief financial officer. “For fiscal 2026, we expect another year of double-digit revenue growth with profitability growing significantly faster than the top line.”
FYE26 Outlook
Our outlook for the year ending January 31, 2026 (“FYE26” and “Fiscal 2026”) is as follows:
-
Revenue:
at the midpoint with a range of +/-$392 million 2% , representing approximately12% growth from previous year revenue. -
Adjusted EBITDA: Approximately
at the midpoint of our revenue outlook.$43 million -
Non-GAAP Diluted EPS:
at the midpoint of our revenue outlook.$0.16
Additional Financial and Operational Data for the Fourth Quarter and Year Ended January 31, 2025
-
FYE25 Total Software revenue increased by
to$28.1 million , compared to last fiscal year, aligned with our growth strategy.$306.7 million -
Q4 FYE25 and FYE25 Software revenue increased by
and by$6.0 million , respectively, compared to the same periods last year. The increase was driven by increased sales of appliance software, perpetual licenses and, to a lesser degree, subscriptions.$12.3 million -
Q4 FYE25 and FYE25 Software services revenue increased by
and$3.6 million , respectively, compared to the same periods last year.$15.8 million -
Q4 FYE25 and FYE25 Professional services and other revenue increased by
and$1.2 million , respectively, compared to the same period last year. The increase during FYE25 was primarily related to the timing and scale of deployments.$9.1 million -
Q4 FYE25 Recurring Revenue(1) increased by
10.3% to , compared to the same period last year.$47.3 million -
Q4 FYE25 Non-GAAP Gross profit and margin were
and$67.6 million 71.5% , respectively, an increase of and 250 bps improvement compared to the same period last year.$9.8 million -
Q4 FYE25 Billings(2) were
, consistent with last year.$95.0 million -
Total Backlog(3) at the end of Q4 FYE25 was
and short-term Backlog was$415.5 million .$227.9 million -
Total RPO(4)
at the end of Q4 FYE25.$545.8 million -
Short-term RPO(4) at the end of Q4 FYE25 increased to
, providing solid visibility into FYE26 revenue.$335.3 million
For information about the non-GAAP financial measure or key metric, please see “Supplemental Information About Non-GAAP Financial Measures and Other Key Metrics” at the end of this release. |
|
(1) Recurring Revenue – Recurring revenue is comprised primarily of revenue from support contracts as well as revenue from subscription offerings. |
(2) Billings – Revenue plus the change in contract liabilities, contract assets and unbilled balances. |
(3) Backlog represents unbilled amounts contracted under contracts deemed certain to be invoiced. |
(4) RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized that will be invoiced and recognized as revenue in future periods. |
Conference Call Information
We will conduct a conference call today at 8:30 a.m. ET to discuss our results for the three months and full year ended January 31, 2025. A real-time webcast of the conference call with presentation slides will be available in the Investor Relations section of Cognyte’s website. Those interested in participating in the question-and-answer session need to register here to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). An archived webcast of the conference call will also be available in the “Investors” section of the company’s website.
Analyst & Investor Day
Cognyte’s senior leadership team will host a virtual Analyst & Investor Day on Tuesday, April 8, 2025, beginning at 8:00 a.m. ET. The event will provide a deeper look into our solutions, the challenges our customers face and how our technology helps them succeed. The event will also feature insights into market dynamics from third-party experts and customers along with our own perspective on industry trends and Cognyte’s positioning. We will also share our long-term financial targets, outlining how we plan to scale revenue and drive profitability. The day will end with a Q&A session. Members of the financial community are encouraged to register for the webcast on Cognyte’s Investor Relations webpage under Upcoming Events. Those interested in participating in the question-and-answer session need to register here to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).
A webcast replay will be available shortly after the conclusion of the live event.
About Cognyte Software Ltd.
Cognyte is a leading software-led technology company, focused on solutions for data processing and investigative analytics which allow customers to generate actionable intelligence from their data, thereby enabling a safer world. Cognyte’s solutions empower law enforcement, national security, national and military intelligence agencies, and other organizations to navigate an increasingly complex landscape. With offerings that leverage state-of-the-art technology, including Artificial Intelligence (AI), big data analytics and advanced machine learning, Cognyte enables smarter, faster decisions for successful outcomes. Hundreds of customers rely on Cognyte solutions to uncover critical insights from past events and anticipate emerging threats. By harnessing AI-driven intelligence, Cognyte accelerates investigations with exceptional speed and accuracy while enabling customers to better anticipate, predict and mitigate threats with greater precision. Learn more at www.cognyte.com.
About Non-GAAP Financial Measures and Other Key Metrics
This press release and the accompanying tables include non-GAAP financial measures and other key metrics. For a description of these non-GAAP financial measures and other key metrics, including the reasons management uses each measure and metric, and reconciliations of non-GAAP financial measures presented for completed periods to the most directly comparable financial measures prepared in accordance with GAAP, please see the tables below as well as "Supplemental Information About Non-GAAP Financial Measures" at the end of this press release.
Our non-GAAP outlook for FYE26 excludes the following GAAP measures for which we are able to provide a range of probable significance:
-
Stock-based compensation is expected to be between approximately
and$18.0 , assuming market prices for our ordinary shares are generally consistent with current levels.$20.0 million
For additional information about our expectations for FYE26, please refer to the Q4 FYE25 conference call we will conduct on April 2, 2025.
Our non-GAAP outlook unless otherwise specified, reflects foreign currency exchange rates approximately consistent with current rates, and does not include the potential impact of any business acquisitions that may close after the date hereof.
We are unable, without unreasonable effort, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items. For these same reasons, we are unable to assess the probable significance of these excluded items. While historical results may not be indicative of future results, actual amounts for the three months and twelve months ended January 31, 2025, and 2024, respectively, for the GAAP measures excluded from our non-GAAP outlook appear in Table 4 of this press release.
Caution About Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the United States Securities Exchange Act of 1934. Forward-looking statements include statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Cognyte. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These forward-looking statements do not guarantee future performance and are based on management's expectations that involve a number of known and unknown risks, uncertainties, assumptions and other important factors, any of which could cause our actual results or conditions to differ materially from those expressed in or implied by the forward-looking statements. Some of the factors that could cause our actual results or conditions to differ materially from current expectations include, among others: uncertainties regarding the impact of changes in macroeconomic and/or global conditions; risks related to geopolitical changes and investor visibility constraints; risks related to new tariffs and retaliatory measures that may adversely affect the economy and reduce government spending; risks related to the impact of inflation and related volatility on our financial performance; risks relating to adverse changes to the regulatory constraints to which we are subject; risks related to the impact of disruptions to the global supply chain; risks resulting from health crises; risks related to conditions in
Table 1 COGNYTE SOFTWARE LTD. Condensed Consolidated Statements of Operations |
||||||||||||||||
|
|
Year Ended January 31, |
|
Three Months Ended January 31, |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
(in thousands except per share data) |
|
(Audited) |
|
(Audited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Software |
|
$ |
125,815 |
|
|
$ |
113,541 |
|
|
$ |
37,435 |
|
|
$ |
31,440 |
|
Software service |
|
|
180,872 |
|
|
|
165,027 |
|
|
|
45,914 |
|
|
|
42,314 |
|
Professional service and other |
|
|
43,945 |
|
|
|
34,836 |
|
|
|
11,156 |
|
|
|
9,937 |
|
Total revenue |
|
|
350,632 |
|
|
|
313,404 |
|
|
|
94,505 |
|
|
|
83,691 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
||||||||
Software |
|
|
19,988 |
|
|
|
18,919 |
|
|
|
6,173 |
|
|
|
6,565 |
|
Software service |
|
|
45,184 |
|
|
|
43,305 |
|
|
|
11,833 |
|
|
|
10,407 |
|
Professional service and other |
|
|
38,538 |
|
|
|
35,776 |
|
|
|
9,460 |
|
|
|
9,366 |
|
Total cost of revenue |
|
|
103,710 |
|
|
|
98,000 |
|
|
|
27,466 |
|
|
|
26,338 |
|
Gross profit |
|
|
246,922 |
|
|
|
215,404 |
|
|
|
67,039 |
|
|
|
57,353 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development, net |
|
|
108,274 |
|
|
|
107,283 |
|
|
|
28,077 |
|
|
|
27,035 |
|
Selling, general and administrative |
|
|
143,516 |
|
|
|
125,784 |
|
|
|
38,225 |
|
|
|
33,052 |
|
Amortization of other acquired intangible assets |
|
|
258 |
|
|
|
391 |
|
|
|
40 |
|
|
|
120 |
|
Total operating expenses |
|
|
252,048 |
|
|
|
233,458 |
|
|
|
66,342 |
|
|
|
60,207 |
|
Operating (loss) income |
|
|
(5,126 |
) |
|
|
(18,054 |
) |
|
|
697 |
|
|
|
(2,854 |
) |
Other income (expenses), net: |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
|
2,470 |
|
|
|
1,896 |
|
|
|
697 |
|
|
|
563 |
|
Interest expense |
|
|
(100 |
) |
|
|
(16 |
) |
|
|
(41 |
) |
|
|
(4 |
) |
Other (expenses) income, net: |
|
|
(1,614 |
) |
|
|
2,915 |
|
|
|
(1,628 |
) |
|
|
(3,696 |
) |
Total other income (expenses), net |
|
|
756 |
|
|
|
4,795 |
|
|
|
(972 |
) |
|
|
(3,137 |
) |
Loss before provision for income taxes |
|
|
(4,370 |
) |
|
|
(13,259 |
) |
|
|
(275 |
) |
|
|
(5,991 |
) |
Provision (benefit) for income taxes |
|
|
2,864 |
|
|
|
(1,614 |
) |
|
|
(59 |
) |
|
|
(4,114 |
) |
Net loss |
|
|
(7,234 |
) |
|
|
(11,645 |
) |
|
|
(216 |
) |
|
|
(1,877 |
) |
Net income attributable to noncontrolling interest |
|
|
4,817 |
|
|
|
3,925 |
|
|
|
1,012 |
|
|
|
737 |
|
Net loss attributable to Cognyte Software Ltd. |
|
$ |
(12,051 |
) |
|
$ |
(15,570 |
) |
|
$ |
(1,228 |
) |
|
$ |
(2,614 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to Cognyte Software Ltd.: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
|
71,797 |
|
|
|
70,081 |
|
|
|
72,406 |
|
|
|
70,905 |
|
Table 2 COGNYTE SOFTWARE LTD. Condensed Consolidated Balance Sheets |
||||||||
|
|
January 31, |
|
January 31, |
||||
|
|
|
2025 |
|
|
|
2024 |
|
(in thousands) |
|
(Audited) |
|
(Audited) |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
112,719 |
|
|
$ |
74,477 |
|
Restricted cash and cash equivalents and restricted bank time deposits |
|
|
381 |
|
|
|
8,666 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
109,374 |
|
|
|
113,260 |
|
Contract assets, net of allowance for credit losses of |
|
|
6,941 |
|
|
|
8,859 |
|
Inventories |
|
|
18,988 |
|
|
|
24,584 |
|
Prepaid expenses and other current assets |
|
|
37,750 |
|
|
|
35,135 |
|
Total current assets |
|
|
286,153 |
|
|
|
264,981 |
|
Property and equipment, net |
|
|
28,316 |
|
|
|
24,384 |
|
Operating lease right-of-use assets |
|
|
35,214 |
|
|
|
33,833 |
|
Goodwill |
|
|
126,148 |
|
|
|
126,563 |
|
Intangible assets, net |
|
|
— |
|
|
|
258 |
|
Deferred income taxes |
|
|
3,094 |
|
|
|
2,928 |
|
Other assets |
|
|
18,895 |
|
|
|
19,135 |
|
Total assets |
|
$ |
497,820 |
|
|
$ |
472,082 |
|
|
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
25,216 |
|
|
$ |
20,863 |
|
Accrued expenses and other current liabilities |
|
|
86,694 |
|
|
|
75,826 |
|
Contract liabilities |
|
|
107,451 |
|
|
|
93,778 |
|
Total current liabilities |
|
|
219,361 |
|
|
|
190,467 |
|
Long-term contract liabilities |
|
|
22,868 |
|
|
|
29,362 |
|
Deferred income taxes |
|
|
1,006 |
|
|
|
1,964 |
|
Operating lease liabilities |
|
|
29,806 |
|
|
|
27,950 |
|
Other liabilities |
|
|
7,676 |
|
|
|
7,606 |
|
Total liabilities |
|
|
280,717 |
|
|
|
257,349 |
|
Commitments and Contingencies |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Common stock - |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
374,126 |
|
|
|
355,097 |
|
Treasury stock, at cost 585,728 and 0 shares at January 31, 2025 and January 31, 2024, respectively |
|
|
(5,276 |
) |
|
|
— |
|
Accumulated deficit |
|
|
(156,643 |
) |
|
|
(144,592 |
) |
Accumulated other comprehensive loss |
|
|
(14,015 |
) |
|
|
(12,630 |
) |
Total Cognyte Software Ltd. stockholders' equity |
|
|
198,192 |
|
|
|
197,875 |
|
Noncontrolling interest |
|
|
18,911 |
|
|
|
16,858 |
|
Total stockholders’ equity |
|
|
217,103 |
|
|
|
214,733 |
|
Total liabilities and stockholders’ equity |
|
$ |
497,820 |
|
|
$ |
472,082 |
|
Table 3 COGNYTE SOFTWARE LTD. Condensed Consolidated Statements of Cash Flows (Audited) |
||||||||
|
|
Year Ended
|
||||||
(in thousands) |
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(7,234 |
) |
|
$ |
(11,645 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
13,652 |
|
|
|
13,816 |
|
Allowance for credit losses |
|
|
1,416 |
|
|
|
2,508 |
|
Gain from business divestiture |
|
|
— |
|
|
|
(4,768 |
) |
Stock-based compensation, excluding cash-settled awards |
|
|
19,029 |
|
|
|
12,167 |
|
Benefit from deferred income taxes |
|
|
(1,356 |
) |
|
|
(3,196 |
) |
Non-cash (gains) losses on derivative financial instruments, net |
|
|
(179 |
) |
|
|
330 |
|
Other non-cash items, net |
|
|
32 |
|
|
|
(685 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
10,573 |
|
|
|
12,436 |
|
Contract assets |
|
|
(6,722 |
) |
|
|
(7,340 |
) |
Inventories |
|
|
4,570 |
|
|
|
(960 |
) |
Prepaid expenses and other assets |
|
|
(7,804 |
) |
|
|
5,307 |
|
Accounts payable and accrued expenses |
|
|
14,294 |
|
|
|
4,332 |
|
Contract liabilities |
|
|
7,962 |
|
|
|
13,897 |
|
Other liabilities |
|
|
(1,552 |
) |
|
|
(2,904 |
) |
Other, net |
|
|
101 |
|
|
|
1,266 |
|
Net cash provided by operating activities |
|
|
46,782 |
|
|
|
34,561 |
|
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(10,587 |
) |
|
|
(7,035 |
) |
Purchases of short-term investments |
|
|
— |
|
|
|
(58,695 |
) |
Maturities of short-term investments |
|
|
— |
|
|
|
75,906 |
|
Settlements of derivative financial instruments not designated as hedges |
|
|
117 |
|
|
|
(977 |
) |
Cash paid for capitalized software development costs |
|
|
(2,601 |
) |
|
|
(2,034 |
) |
Proceeds from Business divestiture, net of cost |
|
|
4,943 |
|
|
|
4,975 |
|
Change in restricted bank time deposits, including long-term portion |
|
|
2,437 |
|
|
|
(2,782 |
) |
Net cash (used in) provided by investing activities |
|
|
(5,691 |
) |
|
|
9,358 |
|
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Dividends paid to noncontrolling interest |
|
|
(2,577 |
) |
|
|
(2,452 |
) |
Purchases of treasury stock |
|
|
(5,276 |
) |
|
|
— |
|
Repayment of principal portion of finance lease liability |
|
|
(99 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(7,952 |
) |
|
|
(2,452 |
) |
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents |
|
|
(631 |
) |
|
|
(115 |
) |
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
32,508 |
|
|
|
41,352 |
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period |
|
|
80,396 |
|
|
|
39,044 |
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period |
|
$ |
112,904 |
|
|
$ |
80,396 |
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents at end of period: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
112,719 |
|
|
$ |
74,477 |
|
Restricted cash and cash equivalents included in restricted cash and cash equivalents and restricted bank time deposits |
|
|
185 |
|
|
|
5,825 |
|
Restricted cash and cash equivalents included in other assets |
|
|
— |
|
|
|
94 |
|
Total cash, cash equivalents, restricted cash, and restricted cash equivalents |
|
$ |
112,904 |
|
|
$ |
80,396 |
|
Table 4 COGNYTE SOFTWARE LTD. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) |
||||||||||||||||
|
|
Year Ended January 31, |
|
Three Months Ended January 31, |
||||||||||||
(in thousands, except per share data) |
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Operating income (loss), operating margin and adjusted EBITDA |
||||||||||||||||
GAAP Operating (loss) income |
|
$ |
(5,126 |
) |
|
$ |
(18,054 |
) |
|
$ |
697 |
|
|
$ |
(2,854 |
) |
GAAP operating margin |
|
|
(1.5 |
)% |
|
|
(5.8 |
)% |
|
|
0.7 |
% |
|
|
(3.4 |
)% |
Stock-based compensation expenses |
|
|
19,029 |
|
|
|
12,167 |
|
|
|
5,269 |
|
|
|
3,976 |
|
Restructuring expenses, net |
|
|
226 |
|
|
|
1,424 |
|
|
|
17 |
|
|
|
(484 |
) |
Legal expenses |
|
|
958 |
|
|
|
287 |
|
|
|
74 |
|
|
|
287 |
|
Other adjustments |
|
|
662 |
|
|
|
(59 |
) |
|
|
(20 |
) |
|
|
64 |
|
Non-GAAP operating income (loss) |
|
$ |
15,749 |
|
|
$ |
(4,235 |
) |
|
$ |
6,037 |
|
|
$ |
989 |
|
Depreciation and amortization |
|
|
13,365 |
|
|
|
13,238 |
|
|
|
3,221 |
|
|
|
3,342 |
|
Adjusted EBITDA |
|
$ |
29,114 |
|
|
$ |
9,003 |
|
|
$ |
9,258 |
|
|
$ |
4,331 |
|
Non-GAAP operating margin |
|
|
4.5 |
% |
|
|
(1.4 |
)% |
|
|
6.4 |
% |
|
|
1.2 |
% |
Adjusted EBITDA margin |
|
|
8.3 |
% |
|
|
2.9 |
% |
|
|
9.8 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Cognyte Software Ltd. reconciliation |
||||||||||||||||
GAAP Net loss attributable to Cognyte Software Ltd. |
|
$ |
(12,051 |
) |
|
$ |
(15,570 |
) |
|
$ |
(1,228 |
) |
|
$ |
(2,614 |
) |
Stock-based compensation expenses |
|
|
19,029 |
|
|
|
12,167 |
|
|
|
5,269 |
|
|
|
3,976 |
|
Non-GAAP tax adjustments (footnote 2) |
|
|
(4,203 |
) |
|
|
(8,560 |
) |
|
|
(2,134 |
) |
|
|
(5,814 |
) |
Restructuring expenses, net |
|
|
226 |
|
|
|
1,424 |
|
|
|
17 |
|
|
|
(484 |
) |
Legal expenses |
|
|
958 |
|
|
|
287 |
|
|
|
74 |
|
|
|
287 |
|
Business divestiture |
|
|
29 |
|
|
|
(4,559 |
) |
|
|
— |
|
|
|
(371 |
) |
Other Non-GAAP adjustments |
|
|
645 |
|
|
|
(289 |
) |
|
|
(20 |
) |
|
|
70 |
|
Total adjustments (footnote 2) |
|
|
16,684 |
|
|
|
470 |
|
|
|
3,206 |
|
|
|
(2,336 |
) |
Non-GAAP Net income (loss) attributable to Cognyte Software Ltd. (footnote 2) |
|
$ |
4,633 |
|
|
$ |
(15,100 |
) |
|
$ |
1,978 |
|
|
$ |
(4,950 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Table comparing GAAP and Non-GAAP diluted net loss per share attributable to Cognyte Software Ltd. |
||||||||||||||||
GAAP diluted net loss per share attributable to Cognyte Software Ltd. |
|
$ |
(0.17 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.04 |
) |
Non-GAAP diluted net income (loss) per share attributable to Cognyte Software Ltd. (footnote 2) |
|
$ |
0.06 |
|
|
$ |
(0.22 |
) |
|
$ |
0.03 |
|
|
$ |
(0.07 |
) |
GAAP weighted-average shares used in computing diluted net loss per share attributable to Cognyte Software Ltd. |
|
|
71,797 |
|
|
|
70,081 |
|
|
|
72,406 |
|
|
|
70,905 |
|
Non-GAAP diluted weighted-average shares used in computing net income (loss) per share attributable to Cognyte Software Ltd. (footnote 2) |
|
|
73,508 |
|
|
|
70,081 |
|
|
|
74,878 |
|
|
|
70,905 |
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
$ |
2,079 |
|
|
$ |
1,415 |
|
|
$ |
573 |
|
|
$ |
421 |
|
Research and development, net |
|
|
1,633 |
|
|
|
2,232 |
|
|
|
380 |
|
|
|
483 |
|
Selling, general, and administrative |
|
|
15,317 |
|
|
|
8,520 |
|
|
|
4,316 |
|
|
|
3,072 |
|
Total stock-based adjustments |
|
$ |
19,029 |
|
|
$ |
12,167 |
|
|
$ |
5,269 |
|
|
$ |
3,976 |
|
|
|
|
|
|
|
|
|
|
||||||||
Restructuring expenses, net |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
$ |
1 |
|
|
$ |
106 |
|
|
$ |
1 |
|
|
$ |
— |
|
Research and development, net |
|
|
123 |
|
|
|
160 |
|
|
|
— |
|
|
|
— |
|
Selling, general, and administrative |
|
|
102 |
|
|
|
1,158 |
|
|
|
16 |
|
|
|
(484 |
) |
Total restructuring adjustments |
|
$ |
226 |
|
|
$ |
1,424 |
|
|
$ |
17 |
|
|
$ |
(484 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Others Non-GAAP adjustments |
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
$ |
— |
|
|
$ |
112 |
|
|
$ |
— |
|
|
$ |
— |
|
Selling, general, and administrative |
|
|
387 |
|
|
|
(792 |
) |
|
|
(60 |
) |
|
|
(50 |
) |
Amortization of other acquired intangible assets |
|
|
258 |
|
|
|
391 |
|
|
|
40 |
|
|
|
120 |
|
Total Other adjustments |
|
$ |
645 |
|
|
$ |
(289 |
) |
|
$ |
(20 |
) |
|
$ |
70 |
|
|
|
|
|
|
|
|
|
|
Footnotes
(1) The actual cash tax paid, net of refunds, was
(2) The non-GAAP income tax adjustments for the quarter reflects a change in calculating our non-GAAP income taxes from a cash basis (income taxes we expect to pay in the current year) to an accrual basis, as detailed further under "supplemental information about Non-GAAP financial measures" - "non-GAAP income tax adjustments". Prior period comparative numbers were adjusted accordingly. The non-GAAP income tax provision, non-GAAP net loss attributable to Cognyte Software Ltd. and non-GAAP diluted net loss per share attributable to Cognyte Software Ltd. under the previous method of calculation, which was presented in last year’s press release filing on April 9, 2024, were
Cognyte Software Ltd. and Subsidiaries
Supplemental Information About Non-GAAP Financial Measures and Other Key Metrics
Non-GAAP Financial Measures
The press release includes reconciliations of certain financial measures not prepared in accordance with GAAP, consisting of non-GAAP operating (loss) income and operating margins, non-GAAP net (loss) income attributable to Cognyte, adjusted EBITDA and adjusted EBITDA margin, non-GAAP diluted net (loss) income per share attributable to Cognyte and non-GAAP diluted weighted-average shares used in computing such measure. The tables above include a reconciliation of each non-GAAP financial measure for completed periods presented in this press release to the most directly comparable GAAP financial measure.
We believe these non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business by:
- facilitating the comparison of our financial results and business trends between periods, by excluding certain items that either can vary significantly in amount and frequency, are based upon subjective assumptions, or in certain cases are unplanned for or difficult to forecast,
- facilitating the comparison of our financial results and business trends with other software companies who publish similar non-GAAP measures, and
- allowing investors to see and understand key supplementary metrics used by our management to run our business, including for budgeting and forecasting, resource allocation, and compensation matters.
We also make these non-GAAP financial measures available because our management believes they provide meaningful information about the financial performance of our business and are useful to investors for informational and comparative purposes.
Non-GAAP financial measures should not be considered in isolation as substitutes for, or superior to, comparable GAAP financial measures. The non-GAAP financial measures we present have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, and these non-GAAP financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. These non-GAAP financial measures do not represent discretionary cash available to us to invest in the growth of our business, and we may in the future incur expenses similar to or in addition to the adjustments made in these non-GAAP financial measures. Other companies may calculate similar non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.
Our non-GAAP financial measures are calculated by making the following adjustments to our GAAP financial measures:
Stock-based compensation expenses. We exclude stock-based compensation expenses related to restricted stock awards, stock bonus programs, bonus share programs, and other stock-based awards from our non-GAAP financial measures. We evaluate our performance both with and without these measures because stock-based compensation is typically a non-cash expense and can vary significantly over time based on the timing, size and nature of awards granted, and is influenced in part by certain factors which are generally beyond our control, such as the volatility of the price of our ordinary shares. In addition, measurement of stock-based compensation is subject to varying valuation methodologies and subjective assumptions, and therefore we believe that excluding stock-based compensation from our non-GAAP financial measures allows for meaningful comparisons of our current operating results to our historical operating results and to other companies in our industry.
Restructuring expenses. We exclude restructuring expenses from our non-GAAP financial measures, which include employee termination costs, facility exit costs, certain professional fees, asset impairment charges, and other costs directly associated with resource realignments incurred in reaction to changing strategies or business conditions. All of these costs can vary significantly in amount and frequency based on the nature of the actions as well as the changing needs of our business and we believe that excluding them provides easier comparability of pre- and post-restructuring operating results.
Other adjustments. We exclude from our non-GAAP financial measures fair value adjustments related to revenue acquired in a business acquisition, amortization of acquired technology and other acquired intangible assets, acquisition expenses (benefit), separation expenses, business divestiture gain/losses, provision for legal claim, rent expense for redundant facilities, gains on change in fair value of equity investment, gains or losses on sales of property and certain professional fees unrelated to our ongoing operations.
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. Cognyte uses a full-year non-GAAP tax rate to compute the non-GAAP tax provision. This full-year non-GAAP tax rate is based on Cognyte’s annual GAAP income, adjusted to exclude non-GAAP items, as well as the effects of significant non-recurring and period-specific tax items which vary in size and frequency. This annual non-GAAP tax rate is based on an evaluation of our historical and projected profit before tax, taking into account the impact of non-GAAP adjustments, tax law changes, as well as other factors such as our current tax structure, existing tax positions and expected recurring tax incentives. Our GAAP effective income tax rate can vary significantly from year to year as a result of tax law changes, settlements with tax authorities, changes in the geographic mix of earnings including acquisition activity, changes in the projected realizability of deferred tax assets, and other unusual or period-specific events, all of which can vary in size and frequency. We believe that our non-GAAP effective income tax rate removes much of this variability and facilitates meaningful comparisons of operating results across periods. We evaluate our non-GAAP effective income tax rate on an ongoing basis, and it can change from time to time. Our non-GAAP income tax rate can differ materially from our GAAP effective income tax rate.
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure defined as net income (loss) attributable to non-controlling interest before interest expense, interest income, income taxes, depreciation expense, amortization expense, revenue adjustments, restructuring expenses, acquisition expenses, and other expenses excluded from our non-GAAP financial measures as described above. We believe that adjusted EBITDA is also commonly used by investors to evaluate operating performance between companies because it helps reduce variability caused by differences in capital structures, income taxes, stock-based compensation accounting policies, and depreciation and amortization policies.
Other Key Metrics
Recurring revenue. Cognyte calculates recurring revenue for a period by combining revenue from initial and renewal support, subscription software licenses, and cloud-based SaaS in certain transactions. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions. Cognyte believes that recurring revenue provides investors more visibility into our recurring business in the upcoming years and helpful measurement of Cognyte’s potential revenue. Cognyte does not consider recurring revenue to be a non-GAAP financial measure because it is calculated using GAAP revenue.
Billings. Cognyte calculates billings for a period by adding changes in contract liabilities, contract assets and unbilled balances in that period to revenue. Cognyte believes that billings help investors better understand sales activity and ongoing business for a particular period, which is not necessarily reflected in revenue. Billings fluctuate from quarter to quarter. Cognyte does not consider billings to be a non-GAAP financial measure because it is calculated using exclusively revenue, contract liabilities, contract assets and unbilled balances, all of which are financial measures calculated in accordance with GAAP.
Total Backlog and Short-Term Backlog. Backlog is defined as unbilled amounts contracted under contracts deemed certain to be invoiced and recognized as revenue in future periods. Short-term backlog represents backlog that Cognyte expects to be recognized as revenue within the subsequent 12 months. Cognyte monitors backlog to provide visibility into our future revenue. Cognyte does not consider backlog to be a non-GAAP financial measure because it is calculated using exclusively unbilled contracted amounts.
Total Remaining Performance Obligations (RPO) and Short-Term RPO. RPO consist of backlog plus contract liabilities. RPO represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less. The timing and amount of revenue recognition for our RPO is influenced by several factors, including timing of support renewals, revenue recognition for certain projects that can extend over longer periods of time, delivery under which, for various reasons, may be delayed, modified, or canceled. Therefore, the amount of remaining obligations may not be a meaningful indicator of future results. In some cases, we may decide to cancel outstanding orders and reduce the RPO when there have been extended delays by customers in paying the agreed upon down payments or due to other reasons. Short-term RPO represents RPO that Cognyte expects to be recognized as revenue within the subsequent 12 months. Cognyte monitors RPO to provide visibility into our future revenue. Cognyte does not consider RPO to be a non-GAAP financial measure because it is calculated in accordance with GAAP, specifically under ASC Topic 606.
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Investor Relations Contact
Dean Ridlon
Cognyte Software Ltd.
IR@cognyte.com
Source: Cognyte Software Ltd.