Financial Data and Key Metrics Changes - Revenue for Q3 2025 grew by 12% year-over-year to $89 million, with non-GAAP gross profit also increasing by 12% year-over-year [11][36] - Adjusted EBITDA for the quarter was approximately $7 million, representing a 42% year-over-year growth [12] - Non-GAAP operating income increased by 180% year-over-year to $3.4 million, while adjusted EBITDA grew by 42% year-over-year to $6.6 million [42][51] Business Line Data and Key Metrics Changes - Software revenue was $30 million, slightly up year-over-year, with software service revenue increasing by 3.9% to $45.3 million [37] - Total software revenue, including software and software services, was $75.3 million, representing about 85% of total revenue [37] - Recurring revenue was $46.9 million, or 53% of total revenue, compared to $42 million in the same period last year [38] Market Data and Key Metrics Changes - The company signed nine new customers in Q3, including five contracts valued at over $1 million each and one significant contract worth $5 million [17] - The North American market showed steady progress, with a follow-on order valued at over $2 million from a law enforcement agency [18][19] Company Strategy and Development Direction - The growth strategy focuses on deepening engagements with existing customers and expanding the customer base [13] - The company aims to leverage advanced analytics and AI-powered solutions to address the growing volume and complexity of data [14][28] - The company raised its full-year revenue outlook to approximately $349 million, representing about 11% year-over-year growth [34][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business due to solid visibility and sustained demand, leading to an increase in the full-year outlook [11][34] - The company anticipates continued growth driven by significant deal wins and the evolving market landscape [12][34] - Management highlighted the importance of advanced technology in addressing complex security challenges faced by customers [28][32] Other Important Information - The company reported a strong cash position of $107.3 million, with no debt, and generated $12.3 million in cash from operations during Q3 [46] - A share buyback program of up to $20 million was approved by the board, reaffirming the commitment to delivering value to shareholders [60] Q&A Session Summary Question: Can you talk about the profile of large customers signing $10 million and $20 million deals? - Management noted that the complexity faced by customers is similar across the market, with demand driven by the need for better data analysis capabilities [68][70] Question: What are you hearing from customers regarding budgets? - Management indicated that more customers are budgeting with higher amounts, reflecting healthy demand and a willingness to invest in expansions and upgrades [73][76] Question: Can you provide guidance for fiscal 2026? - Management stated that they are well-positioned for future growth, expecting revenue and gross profit to grow faster than operating expenses [88][92] Question: Update on expanding in the US market? - Management confirmed ongoing efforts to expand in North America, with positive feedback from existing and potential customers [94][97]

Group 1 - Cognyte Software Ltd. reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and down from earnings of $0.34 per share a year ago, representing an earnings surprise of 300% [1] - The company posted revenues of $89 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 2.54%, and up from $79.39 million year-over-year [2] - Cognyte Software shares have increased approximately 34.1% since the beginning of the year, outperforming the S&P 500's gain of 26.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $90.8 million, and -$0.07 on revenues of $344.7 million for the current fiscal year [7] - The Zacks Industry Rank for Internet - Software is currently in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Company Overview - Cognyte Software Ltd. (CGNT) shares increased by 9% to $8.13 in the last trading session, with a notable trading volume, and have gained 11.8% over the past four weeks [1] - The company received a follow-on order exceeding $2 million from a North American law enforcement agency, indicating growing trust in its investigative analytics technology [2] Financial Performance - The upcoming quarterly report is expected to show a loss of $0.01 per share, reflecting a year-over-year change of -102.9% [2] - Revenues are projected to be $86.8 million, which is a 9.3% increase compared to the same quarter last year [2] Earnings Estimates and Stock Performance - The consensus EPS estimate for Cognyte Software has remained unchanged over the last 30 days, suggesting that stock price movements may not continue without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [4] Industry Context - Cognyte Software is part of the Zacks Internet - Software industry, which includes other companies like Asana, Inc. (ASAN) that also experienced a price increase of 5.7% to $14.72 in the last trading session [4] - Asana's consensus EPS estimate has remained unchanged at -$0.07, representing a year-over-year change of -75% [5]

Core Viewpoint - Cognyte (NASDAQ: CGNT) is identified as an underfollowed and undervalued stock with a strong position in providing actionable intelligence to national security agencies, suggesting significant growth potential in the coming years [1] Company Summary - The estimated value of Cognyte shares is projected to reach $36 per share in five years, indicating a potential annualized return of 40% [1]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $84 million, representing a 10% year-over-year increase [7][17] - Non-GAAP gross profit increased by 13% year-over-year, reaching $60.2 million [7][17] - Adjusted EBITDA for the quarter was $8 million, more than three times the amount generated in Q2 of the previous year [7][17] - Non-GAAP gross margin improved to 71.3%, an increase of 209 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Software revenue was $72.3 million, an increase of $5.6 million year-over-year [22] - Recurring revenue reached $46.6 million, accounting for 55% of total revenue, and grew by approximately 40% year-over-year [17][22] - Non-GAAP operating income for Q2 was $4.4 million, reflecting a significant improvement from an operating loss of $6.5 million in the same period last year [18] Market Data and Key Metrics Changes - In North America, the company secured deals with eight new customers, replacing incumbents with Cognyte solutions [9] - Total remaining performance obligations (RPO) were $567.7 million at the end of Q2, with short-term RPO at $320.6 million [21] Company Strategy and Development Direction - The company aims to deepen engagements with existing customers and expand the use of its solutions [8] - A focus on AI and advanced analytics is central to the company's strategy to address evolving threats faced by law enforcement and security agencies [11][15] - The company is transitioning some offerings from perpetual licenses to subscription models to enhance recurring revenue [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing the full-year revenue outlook to approximately $347 million, representing about 11% year-over-year growth [16][24] - The company highlighted the growing complexity of threats faced by customers, necessitating advanced solutions [10][12] - Management noted that the strong cash position, with almost $100 million in cash and no debt, supports future growth initiatives [20] Other Important Information - The company was recognized for its Luminar AI insights in a Gartner report, emphasizing its competitive edge in cyber threat intelligence [14] - The company expects to generate about $37 million of cash from operations for the year [25] Q&A Session Summary Question: Revenue composition and software service decline - The CEO clarified that the decline in software and software service revenue was due to a transition from perpetual licenses to subscription models, with recurring revenue growing significantly [27] Question: Guidance for the rest of the year - Management indicated that the guidance accounts for the growing subscription revenue and the consistent purchasing behavior of governmental agencies [28][29]

分组1 - Cognyte Software Ltd. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, and showing improvement from a loss of $0.09 per share a year ago, resulting in an earnings surprise of 350% [1] - The company achieved revenues of $84.41 million for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 0.02%, and up from $77.05 million in the same quarter last year [2] - Cognyte Software shares have increased approximately 15.7% since the beginning of the year, outperforming the S&P 500's gain of 14.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $86.8 million, and for the current fiscal year, it is -$0.07 on revenues of $344.7 million [7] - The Internet - Software industry, to which Cognyte Software belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Cognyte Software Ltd. is set to release its second-quarter earnings results on September 10, with analysts expecting a loss of 2 cents per share compared to a loss of 9 cents per share in the same quarter last year [1] - The company is projected to report revenue of $83.69 million for the quarter [1] - In the first quarter of fiscal 2025, Cognyte Software achieved a sales growth of 12.9% year-over-year, totaling $82.714 million, surpassing the consensus estimate of $82.046 million [1] - The stock price of Cognyte Software increased by 0.8%, closing at $7.44 on the preceding Monday [1] Analyst Ratings - Wedbush analyst Daniel Ives maintained a Neutral rating and raised the price target from $8 to $9 on June 20, with an accuracy rate of 75% [1] - Needham analyst Mike Cikos reiterated a Hold rating on June 18, holding an accuracy rate of 66% [1] - Evercore ISI Group analyst Kirk Materne maintained an In-Line rating and increased the price target from $5 to $7.5 on April 10, with an accuracy rate of 67% [1]

Group 1: UiPath (PATH) - UiPath specializes in robotic process automation (RPA), providing software to automate repetitive tasks, enhancing efficiency and productivity [9] - The company posted an average earnings per share (EPS) of 14 cents over the past four quarters, surpassing the consensus estimate of 10 cents, resulting in an earnings surprise of 79.3% [2] - Analysts project current fiscal year sales to reach $1.41 billion, reflecting a 7.7% increase [10] - The stock trades at a trailing-year sales multiple of 5.11X, down from 8.53X in the previous period, indicating potential for valuation recovery [16] Group 2: Cognyte Software (CGNT) - Cognyte develops security analytics software utilizing AI to address cybersecurity threats, a critical business model given the rising digital threats [11] - The company reported an average loss per share of 1 cent over the past four quarters but achieved an EPS of 34 cents in the October quarter, leading to an earnings surprise of 851.8% [4] - Analysts expect sales to grow to $369.57 million by the end of fiscal 2026, up from $313.52 million last year [17] Group 3: Duos Technologies (DUOT) - Duos Technologies focuses on intelligent security and analytical technology solutions, primarily targeting the transportation and logistics sectors [18] - The company has faced financial challenges, with an average loss per share of 41 cents over the past four quarters, which was 47% below the expected loss of 30 cents [13] - Analysts predict a reduction in loss per share to 89 cents in 2024, an improvement from last year's loss of $1.56 [19] - Projected sales for Duos are expected to increase significantly, with estimates reaching $14.58 million by year-end, a 95.2% increase from the prior year [5]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $83 million, representing a 13% year-over-year increase [43] - Gross profit for Q1 was $58.8 million, up 17% year-over-year, with a gross margin of 71.1%, an increase of 270 basis points year-over-year [27][43] - Adjusted EBITDA for Q1 was $5 million, with an increased full-year adjusted EBITDA guidance of approximately $22 million, more than double the previous year's figure [21][57] Business Line Data and Key Metrics Changes - Recurring revenue for Q1 was $45.8 million, accounting for 55% of total revenue, an increase from $42 million in the same quarter last year [24][33] - Software revenue grew by 13.9% year-over-year, contributing significantly to overall revenue growth [52] Market Data and Key Metrics Changes - Total Remaining Performance Obligations (RPO) at the end of Q1 was $566.3 million, with short-term RPO increasing to $312.4 million, indicating strong visibility into future revenue [26] - Approximately 75% of law enforcement agencies (LEAs) indicated plans to expand, upgrade, or replace their existing data analytics solutions, highlighting a significant market opportunity [19][20] Company Strategy and Development Direction - The company aims to deliver sustainable and profitable growth by focusing on advanced technology, including AI, to enhance investigative analytics solutions [15][30] - The strategy includes expanding presence in North America and investing in sales and marketing to capture competitive deals [44][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy demand environment and the company's ability to grow, citing strong customer engagement and evolving needs [72][74] - The company expects fiscal '25 revenue to be approximately $344 million, reflecting a 10% year-over-year growth at the midpoint [21][28] Other Important Information - The company has a strong balance sheet with $107 million in cash and no debt, indicating financial stability [23] - The company is adapting its non-GAAP tax expense methodology to improve correlation between non-GAAP pre-tax income and non-GAAP income [29] Q&A Session Summary Question: Can you provide more details on the sources of recurring revenue? - Recurring revenue primarily comes from support contracts, which are regularly renewed, with Q1 recurring revenue increasing from $42 million to $45.8 million year-over-year [33] Question: What factors contributed to the sequential decline in RPO? - The decline in RPO was attributed to renewal timing, sales cycle, and seasonality, but both short and total RPO levels remain strong [80] Question: How is the company monetizing AI innovations? - AI serves as an incremental demand generator, enhancing efficiency and uncovering hidden insights for customers, thus increasing the value of the company's solutions [67][85]

In recent years, the usage of solutions like ours and other tools and products for the collection, analysis and fusion of data and communication as well as advanced cyber tools have faced increased attention and in some cases scrutiny, including by some regulators, government officials, media and influential politicians. As a result, there has been, and there will likely be, additional legislation and regulatory initiatives, as well as calls for changes in policies, intended to impose new definitions and po ...