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Financial Data and Key Metrics Changes - Revenue for Q2 grew by approximately 16% year-over-year to about $98 million, with software revenue increasing by 35.9% year-over-year to $36.6 million [5][17] - Non-GAAP gross profit increased by about 17% year-over-year, with a gross margin of 72.1%, expanding by 81 basis points year-over-year [5][19] - Adjusted EBITDA for the quarter was approximately $11 million, representing a growth of about 33% compared to the previous year [5][20] - Cash flow from operating activities was negative $6 million, primarily due to expected seasonal expenses [5][22] - For the fiscal year ending January 31, 2026, the company expects revenue of approximately $397 million, representing about 13% year-over-year growth [15][24] Business Line Data and Key Metrics Changes - Total software revenue for the quarter was approximately $83.3 million, representing 85.5% of total revenue [17] - Professional services revenue in Q2 was $14.2 million, an increase of $2 million over last year [18] - Recurring revenue for Q2 was $47.4 million, representing 48.7% of total revenue [18] Market Data and Key Metrics Changes - The U.S. remains a cornerstone of the growth strategy, with ongoing efforts to expand presence and strategic partnerships [10][11] - Total remaining performance obligations (RPO) at the end of Q2 was $574.5 million, up from $567.7 million at the same period last year [23] - Q2 billings were $93 million, an increase of about 20% compared to the same period last year [24] Company Strategy and Development Direction - The company aims for $500 million in revenue by the fiscal year ending January 31, 2028, with gross margins of about 73% and adjusted EBITDA margins above 20% [14] - The technology stack is built on three layers: signal processing, insight mining, and investigative analytics, focusing on operational intelligence solutions [8][9] - The company is actively preparing for key upcoming conferences to showcase capabilities and strengthen relationships [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is marked by heightened security challenges, creating sustained demand for advanced intelligence solutions [7][10] - The company is confident in achieving its financial targets due to growing market needs and proven technology leadership [14][15] - Management acknowledged temporary challenges in U.S. agency procurement but remains optimistic about future growth [11][12] Other Important Information - The class action lawsuit was fully dismissed with no additional appeals possible [27] - The company completed a share repurchase program, repurchasing about 2.1 million ordinary shares for a total of $20 million [22] Q&A Session Summary Question: Can you help us think through your updated assumptions around the U.S. federal environment? - Management indicated that while the U.S. represents a significant opportunity, it currently contributes a small portion of the business, with expectations for growth over time [29][30] Question: Are budgets starting to open up at all? - Management acknowledged headwinds in U.S. budgets but noted successful customer acquisitions and follow-on orders [33][34] Question: How much of the growth came from existing customers versus new products? - Growth primarily comes from existing customers, with new customers starting small and growing over time [41][42] Question: What is driving the displacement of incumbents? - The company attributes displacement to advanced technology, R&D investments, and successful proof-of-concept demonstrations [44][46] Question: How is the overall deal pipeline turning versus six to twelve months ago? - Management reported a healthy demand environment, with increasing traction from existing customers seeking modernization [63][64]

Financial Data and Key Metrics Changes - Revenue for Q2 increased by approximately 16% year-over-year to about $98 million, with non-GAAP gross profit rising by about 17% year-over-year [5][17] - Adjusted EBITDA for the quarter was approximately $11 million, reflecting a growth of about 33% compared to Q2 last year [5][20] - Non-GAAP gross margin for the quarter was 72.1%, expanding by 81 basis points year-over-year [19] - GAAP net income for the quarter was $2.7 million, compared to a loss of $0.9 million in Q2 last year [20] Business Line Data and Key Metrics Changes - Software revenue was $36.6 million, an increase of 35.9% year-over-year, while software services revenue was $46.7 million, up $1.4 million from last year [17] - Total software revenue for the quarter was approximately $83.3 million, representing 85.5% of total revenue [17] - Professional services revenue in Q2 was $14.2 million, an increase of $2 million over last year [18] Market Data and Key Metrics Changes - Recurring revenue for Q2 was $47.4 million, representing 48.7% of total revenue [18] - Total remaining performance obligations (RPO) at the end of Q2 was $574.5 million, compared to $567.7 million at the same period last year [23] - Q2 billings were $93 million, an increase of about 20% versus the same period last year [24] Company Strategy and Development Direction - The company aims for $500 million in revenue by the fiscal year ending January 31, 2028, with gross margins of about 73% and adjusted EBITDA margins above 20% [14] - The U.S. market remains a key focus for growth, with ongoing investments to expand presence and partnerships [10][11] - The company is actively preparing for key upcoming conferences to showcase capabilities and strengthen relationships [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is marked by heightened security challenges, creating sustained demand for advanced intelligence solutions [7] - The company expressed confidence in achieving updated guidance for the fiscal year ending January 31, 2026, expecting revenue of approximately $397 million, representing about 13% year-over-year growth [15][25] - Management highlighted the importance of innovation and operational execution in driving long-term growth and profitability [14][27] Other Important Information - The company completed a share repurchase program, repurchasing about 2.1 million ordinary shares for a total of $20 million [22] - The class action lawsuit was fully dismissed with no additional appeals possible [27] Q&A Session Summary Question: Can you help us think through your updated assumptions around the U.S. federal environment? - Management indicated that while the U.S. presents a significant opportunity, it currently represents a small portion of the business, and they do not rely heavily on it for short-term guidance [29][30] Question: How are conversations compared to expectations regarding U.S. budgets? - Management acknowledged budget headwinds but noted successful customer acquisitions and strong POCs, indicating a positive long-term outlook [33][34] Question: How much of the growth came from existing customers versus new products? - Management stated that most growth comes from existing customers, driven by data capacity expansions and functionality upgrades [41][42] Question: What is driving the displacement of incumbents in the market? - Management highlighted the importance of advanced technology and analytics, which allow customers to stay ahead of sophisticated adversaries [44][45] Question: How is the overall deal pipeline turning compared to 6-12 months ago? - Management reported a healthy demand environment, with increasing traction from existing customers seeking to modernize their solutions [63][64]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 grew approximately 16% year-over-year to about $98 million, with non-GAAP gross profit increasing by about 17% year-over-year [5][18] - Adjusted EBITDA for the quarter was approximately $11 million, reflecting a growth of about 33% compared to Q2 last year [5][21] - Cash flow from operating activities was negative $6 million, primarily due to expected seasonal expenses [5][23] - Non-GAAP gross margin for the quarter was 72.1%, expanding by 81 basis points year-over-year [19][26] Business Line Data and Key Metrics Changes - Software revenue was $36.6 million, an increase of 35.9% year-over-year, while software services revenue was $46.7 million, up $1.4 million from last year [18] - Total software revenue for the quarter was approximately $83.3 million, representing 85.5% of total revenue [18] - Professional services revenue in Q2 was $14.2 million, an increase of $2 million over last year [19] - Recurring revenue for Q2 was $47.4 million, representing 48.7% of total revenue [19] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) at the end of Q2 was $574.5 million, up from $567.7 million at the same period last year [24] - Short-term RPO at the end of Q2 increased to $355 million, providing solid visibility into revenue over the next 12 months [24] Company Strategy and Development Direction - The company aims for $500 million in revenue by the fiscal year ending January 31, 2028, with gross margins of about 73% and adjusted EBITDA margins above 20% [15] - The U.S. remains a key growth strategy, with ongoing efforts to expand presence and strategic partnerships, including an alliance with LexisNexis Risk Solutions [12][15] - The company is focused on deepening relationships with existing customers, winning new customers, and expanding its footprint in the U.S. market [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is marked by heightened security challenges, creating an urgent demand for advanced intelligence solutions [8][10] - The company expressed confidence in achieving its updated guidance for the fiscal year ending January 31, 2026, expecting revenue of approximately $397 million, representing about 13% year-over-year growth [16][25] - Management highlighted the importance of innovation and customer feedback in driving long-term growth and profitability [11][15] Other Important Information - The class action lawsuit was fully dismissed with no additional appeals possible [27] - The company completed a share repurchase program, repurchasing about 2.1 million ordinary shares for a total of $20 million [23] Q&A Session Summary Question: Can you help us think through your updated assumptions around the U.S. federal environment? - Management indicated that while the U.S. presents a significant opportunity, it currently represents a small portion of the business, and they are not heavily relying on it for short-term guidance [30][31] Question: How are conversations compared to expectations regarding U.S. budgets? - Management acknowledged budget headwinds but noted successful acquisitions of new state and local customers and strong POCs [33][35] Question: How much of the growth came from existing customers versus data growth? - The majority of growth is driven by existing customers, with new customers starting small and growing over time [41][42] Question: What is driving the displacement of incumbents? - The company attributes displacement to advanced technology, R&D investments, and the ability to provide superior analytics and insights [44][46] Question: How is the overall deal pipeline turning versus six to twelve months ago? - Management reported a healthy demand environment, with increasing pressure on customers to modernize solutions and deal with more data [60][66]

NASDAQ: CGNT September 9, 2025 Q2 FYE26 Results © 2025 Cognyte Ltd. All Rights Reserved. Proprietary & Confidential 1 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 statements are not guarantees of future performance and they are based on management's expectations t ...

Summary of Cognite Software (CGNT) FY Conference Call Company Overview - **Company**: Cognite Software (CGNT) - **Industry**: Security Software - **Focus**: Providing solutions for security agencies to enhance decision-making and investigation capabilities [1][2] Key Points Industry Context - The global security environment is increasingly complex, with over 70% of organized crime groups operating across multiple countries [4] - The blurring lines between terrorism and organized crime present significant risks, with damages exceeding $2 trillion annually [5] Company Solutions - Cognite's solutions aim to enhance the speed, accuracy, and success rate of investigations for security agencies [6] - The company serves various customers, including law enforcement, military intelligence, and national security agencies [7][8] - Key challenges for customers include managing vast amounts of data, sophisticated adversaries, and the need for real-time intelligence [9][10] Technology and Product Offering - Cognite employs a three-layer technology stack: signal processing, data analytics, and actionable intelligence [14][16] - The company utilizes AI and machine learning to improve efficiency and uncover hidden insights [20][21] - Solutions are primarily deployed on-premises due to data sensitivity, but the technology is cloud-ready [36][52] Financial Targets - Cognite aims to achieve $500 million in revenue by fiscal 2028, with a gross margin target of 73% and adjusted EBITDA exceeding 20% [23] Customer Engagement - The company maintains strong relationships with customers, often involving them in product development and feedback [20][22] - Cognite hosts global intelligence summits to engage with customers and understand their needs [22] Market Strategy - The sales cycle for Cognite's solutions ranges from two quarters to six to eight quarters, depending on the complexity of the deployment [43][44] - The company offers flexible pricing based on data capacity and functionality, with deals ranging from hundreds of thousands to tens of millions of dollars [55][56] Competitive Landscape - The market is fragmented, with various competitors depending on geography and use case [60] - Cognite is transitioning customers from in-house solutions to its offerings, highlighting the challenges of keeping pace with rapidly evolving technology [61] Future Outlook - Cognite plans to expand its presence in the U.S. market and explore additional market segments beyond security agencies [57][59] - The company aims to maintain its leadership position by continuously innovating and enhancing its technology [58][59] Additional Insights - Cognite's solutions have a proven track record of saving lives and preventing financial damage [25] - The company emphasizes the importance of domain expertise combined with technology to effectively address customer needs [19][20]

Group 1 - Cognyte Software Ltd. (NASDAQ: CGNT) reported a satisfactory quarter, with results in line with the previous year and no significant negative developments [2] - The company's Remaining Performance Obligations (RPOs) are increasing, indicating promising future revenues [2] - The Value Lab, an investment group, focuses on long-only value ideas and aims for a portfolio yield of approximately 4% [1][2] Group 2 - The Valkyrie Trading Society consists of analysts who share high-conviction investment ideas that are expected to yield non-correlated and substantial returns in the current economic climate [3]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 increased by approximately 16% year over year to $95.5 million [7] - Non-GAAP gross profit rose by about 17% year over year [7] - Adjusted EBITDA for the quarter was approximately $10.3 million, more than double the $5 million generated in Q1 last year [19] - Non-GAAP operating income was $7.6 million, over four times higher than the $1.8 million generated in Q1 last year [19] - Cash flow from operations was approximately $1.7 million, with negative free cash flow of $2.5 million [20] Business Line Data and Key Metrics Changes - Software revenue was $37.4 million, an increase of $5.9 million or 19% year over year [16] - Total software revenue for the quarter was approximately $82 million, representing about 86% of total revenue [16] - Professional service revenue in Q1 was $13.5 million, an increase of $6.6 million over last year [17] - Recurring revenue for Q1 was $47.2 million, representing 49% of total revenue [18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) at the end of Q1 was $597.8 million, up $52 million versus the end of fiscal 2025 [22] - Short-term RPO increased to $346.9 million, providing solid visibility into revenue over the next twelve months [24] Company Strategy and Development Direction - The company is focused on expanding its presence in the U.S. market through the acquisition of GroupSense, a cyber threat intelligence company [12][21] - The strategic priorities include enhancing operational agility and ensuring customers can respond to emerging threats [10][15] - The company aims to drive long-term growth and expand profitability through innovation and strong customer engagement [13][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in healthy demand and continued validation of technology through customer wins [13] - The company updated its guidance for fiscal 2026, expecting revenue of approximately $395 million, representing about 13% year-over-year growth [25] - Management noted that the demand environment remains favorable, with ongoing customer engagement and positive feedback across the portfolio [28] Other Important Information - The company executed a share repurchase program, buying about 952,000 ordinary shares for approximately $9 million [20] - The GroupSense acquisition closed on May 20, 2025, for approximately $4 million in cash, with an earnout of up to $5 million contingent on performance targets [21] Q&A Session Summary Question: How did the quarter itself play out versus plan? - Management indicated that Q1 top line came a little ahead of expectations, with strong demand and customer traction [32] Question: Why isn't the recent contract value impacting fiscal 2026 to a greater extent? - Management explained that some large deals were already included in guidance, and the deployment of a significant subscription deal is planned for Q1 fiscal 2027 [35] Question: What is the revenue impact of the GroupSense acquisition? - The acquisition is expected to add approximately $3 million to the top line, with a breakeven business model [38]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of approximately $95.5 million, reflecting a year-over-year growth of about 16% [7][18] - Non-GAAP gross profit increased by approximately 17% year-over-year, reaching $68.7 million [7][20] - Adjusted EBITDA for the quarter was approximately $10.3 million, more than double the $5 million generated in Q1 last year [8][21] - Non-GAAP operating income was $7.6 million, over four times higher than the $1.8 million generated in Q1 last year [21] - Cash flow from operations was approximately $1.7 million, with negative free cash flow of $2.5 million [22] Business Line Data and Key Metrics Changes - Software revenue for Q1 was $37.4 million, an increase of $5.9 million or 19% year-over-year [18] - Professional service revenue in Q1 was $13.5 million, an increase of $6.6 million over last year [19] - Recurring revenue for Q1 was $47.2 million, representing 49% of total revenue [20] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) at the end of Q1 was $597.8 million, up $52 million versus the end of fiscal 2025 [24] - Short-term RPO increased to $346.9 million, providing solid visibility into revenue over the next twelve months [25] Company Strategy and Development Direction - The company is focused on expanding its presence in the U.S. market, highlighted by the acquisition of GroupSense, a cyber threat intelligence company [13][23] - The strategic priorities include enhancing customer engagement and addressing complex intelligence challenges [12][30] - The company aims to leverage its technology to deliver greater value to customers and improve operational agility [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in healthy demand and continued validation of technology through customer wins [14][30] - The company updated its guidance for fiscal 2026, expecting revenue of approximately $395 million, representing about 13% year-over-year growth [15][27] - Management noted that the demand environment remains favorable, with ongoing customer engagement and positive feedback across the portfolio [30] Other Important Information - The company executed a share repurchase program, buying approximately 952,000 ordinary shares for about $9 million [22] - The GroupSense acquisition closed on May 20, 2025, for approximately $4 million in cash, with an earnout of up to $5 million based on performance targets [23] Q&A Session Summary Question: How did the quarter play out versus plan? - Management indicated that Q1 top line performance was slightly ahead of expectations, with continued sequential growth anticipated throughout the year [34][35] Question: Why isn't the recent contract value impacting fiscal 2026 more significantly? - Management explained that some large deals were already included in guidance, and the deployment of a significant subscription deal is planned for Q1 of fiscal 2027 [38][39] Question: What is the revenue impact of the GroupSense acquisition? - The acquisition is expected to add approximately $3 million to the top line, with a breakeven business model and a small increase in operating expenses [40][41]

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 statements are not guarantees of future performance and they 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 ...