Financial Performance - Q2 FYE24 revenue was $77,053,000, with a gross margin of 68.7% and a diluted EPS loss of $(0.13) on a GAAP basis[2] - For H1 FYE24, revenue reached $150,319,000, with a gross margin of 68.3% and a diluted EPS loss of $(0.26) on a GAAP basis[6] - The company expects full-year non-GAAP revenue to be approximately $307 million, reflecting an 8.5% growth year-over-year[9] - Gross profit is projected to grow faster than revenue, exceeding 15% year-over-year on an SIS Adjusted non-GAAP basis[7] - Non-GAAP diluted EPS is expected to be a loss of $(0.33) at the midpoint of the revenue outlook[9] - The company is raising its outlook for non-GAAP revenue, gross margin, and EPS based on positive Q2 results[2] - Total revenue for the six months ended July 31, 2023, was $150,319,000, a decrease of 10.3% from $167,547,000 in the same period of 2022[24] - Software service revenue decreased to $81,313,000, down 10.9% from $91,269,000 year-over-year[24] - Total GAAP revenue for the six months ended July 31, 2023, was $150,319,000, a decrease of 10.3% compared to $167,547,000 in 2022[30] - Non-GAAP revenue for the six months ended July 31, 2023, was $150,431,000, reflecting a period-over-period decline of 10.5%[51] - Revenue for the three months ended July 31, 2023, was $77,053,000, unchanged from the previous year, while non-GAAP revenue for the same period was $77,053,000[51] Profitability and Loss - The company anticipates annual positive Adjusted EBITDA of about $2 million at the midpoint of the revenue range[7] - The net loss attributable to Cognyte Software Ltd. for the six months ended July 31, 2023, was $18,179,000, an improvement from a net loss of $59,242,000 in the same period of 2022[24] - GAAP operating loss improved to $(12,425,000) for the six months ended July 31, 2023, compared to $(56,401,000) in the same period of 2022[30] - The company reported a net loss of $(15,941,000) for the six months ended July 31, 2023, an improvement from $(57,095,000) in 2022[33] - Non-GAAP operating loss was $(6,452,000) for the six months ended July 31, 2023, compared to $(39,514,000) in the same period of 2022[30] - Adjusted EBITDA for the six months ended July 31, 2023, was $50,000, a significant improvement from $(31,303,000) in 2022[37] Expenses and Cost Management - Total operating expenses for the six months ended July 31, 2023, were $115,141,000, a reduction of 28.0% compared to $159,473,000 in the prior year[24] - Research and development expenses decreased to $54,850,000 for the six months ended July 31, 2023, down from $76,526,000 in the prior year[24] - Selling, general and administrative expenses were $60,110,000, accounting for 40.0% of GAAP revenue, compared to 49.2% in 2022[30] - Research and development expenses for the six months ended July 31, 2023, were $53,609,000, representing 35.6% of non-GAAP revenue, down from 42.8% in 2022[43] - Stock-based compensation expenses for the six months ended July 31, 2023, were $4,628,000, a decrease from $11,463,000 in 2022[37] Cash Flow and Liquidity - Cash and cash equivalents increased to $48,472,000 as of July 31, 2023, compared to $34,579,000 at January 31, 2023[26] - Cash and cash equivalents at the end of the period increased to $52,772,000 from $37,214,000 in the previous year[33] - Net cash provided by operating activities was $25,245,000 for the six months ended July 31, 2023, compared to a net cash used of $(27,492,000) in 2022[33] - Total cash used in investing activities was $(11,552,000) for the six months ended July 31, 2023, compared to $(13,413,000) in 2022[33] Balance Sheet - Total assets decreased to $433,560,000 as of July 31, 2023, down from $443,078,000 at January 31, 2023[26] - Total liabilities were $230,940,000 as of July 31, 2023, a slight decrease from $233,304,000 at January 31, 2023[26] Strategic Outlook and Market Position - The company emphasizes the strength of its innovative technology and recent AI developments as key growth drivers[2] - The company has secured deals with both existing and new strategic customers, indicating strong market demand[2] - The outlook for FYE24 excludes potential impacts from business acquisitions and reflects current foreign currency exchange rates[11] - The company divested its Situational Intelligence Solutions (SIS) business on December 1, 2022, impacting financial measures such as non-GAAP revenue and gross profit[65] - Future financial outlook reflects foreign currency exchange rates consistent with those in effect at the time of the outlook provision[74] Non-GAAP Financial Measures - Non-GAAP gross profit for the six months ended July 31, 2023, was $103,519,000, with a non-GAAP gross margin of 68.8%, compared to 62.9% in 2022[30] - The company excludes stock-based compensation expenses from non-GAAP measures to facilitate meaningful comparisons of operating results[62] - Non-GAAP financial measures are provided to give investors a clearer understanding of the company's financial performance and trends[49] - Adjusted EBITDA is defined as net income attributable to non-controlling interest before interest, taxes, depreciation, and other adjustments, providing a clearer view of operating performance[69] Currency Impact - The impact from changes in foreign currency exchange rates on revenue was a decrease of 0.6% for the six months ended July 31, 2023[51] - Constant currency revenue change for the six months ended July 31, 2023, was a decline of 10.9%[51]

22 Revenue for the three months ended April 30, 2023, at constant currency is calculated by translating current-period GAAP or non-GAAP foreign currency revenue (as applicable) into U.S. dollars using average foreign currency exchange rates for the three months April 30, 2022, rather than actual current-period foreign currency exchange rates. We believe these non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about th ...

Gross margin will fluctuate between quarters, based on the revenue mix. For our non-GAAP operating expenses, we continue to expect total expenses of about $220 million for the full-year and to be relatively flat throughout the year. Our improved cost structure combined with revenue growth and higher gross margins will allow us to improve operating margins over time. We remain on track to achieve our goal to drive positive non-GAAP adjusted EBITDA during Q4 of this fiscal year. As a result, we are now expect ...

Exhibit 99.1 Press Release Investor Relations Contact Dean Ridlon Cognyte Software Ltd. IR@cognyte.com Cognyte Announces First Quarter Fiscal 2024 Results • Stock-based compensation is expected to be between approximately $10.0 million and $13.0 million, assuming market prices for our ordinary shares are generally consistent with current levels. For additional information about our expectations for FYE24, please refer to the Q1 FYE24 conference call we will conduct on June 15, 2023. Our non-GAAP outlook doe ...

Cognyte Software Ltd. (NASDAQ:CGNT) Q4 2022 Earnings Conference Call April 11, 2023 8:30 AM ET Company Participants Dean Ridlon - Head of IR Elad Sharon - CEO David Abadi - CFO Conference Call Participants Mike Cikos - Needham Peter Levine - Evercore Brian Ruttenbur - Imperial Capital Dean Ridlon Thank you, operator. Hello, everyone. I'm Dean Ridlon, Cognyte's Head of Investor Relations. Thank you for joining us today. I'm here with Elad Sharon, Cognyte's CEO; and David Abadi, Cognyte's CFO. Before getting ...

Exhibit 99.1 Investor Relations Contact Dean Ridlon Cognyte Software Ltd. IR@cognyte.com Herzliya, Israel, April 11, 2023 - Cognyte Software Ltd. (NASDAQ: CGNT) (the "Company," "Cognyte," "we," "us" and "our"), a global leader in investigative analytics software, today announced results for the three months and year ended January 31, 2023 ("Q4 FYE23", "FYE23" and "Fiscal 2023"). | --- | --- | --- | --- | |-------------------------------------------------|--------------|---------------------------|---------- ...

• risks relating to claims by third parties that our solutions infringe their terms of use or other proprietary rights; • risks that our intellectual property rights may not be adequate to protect our business or assets or that others may make claims on our intellectual property, claim infringement on their intellectual property rights, or claim a violation of their license rights, including relative to free or open source components we may use; • risks associated with our failure to comply with anti-corrup ...

Cognyte Software Ltd. (NASDAQ:CGNT) Q3 2023 Earnings Conference Call December 20, 2022 8:30 AM ET Company Participants Dean Ridlon - Head, Investor Relations Elad Sharon - Chief Executive Officer David Abadi - Chief Financial Officer Conference Call Participants Mike Cikos - Needham & Company Peter Levine - Evercore ISI Brian Ruttenbur - Imperial Capital Operator Good day. Thank you for standing by. Welcome to Cognyte’s Third Quarter Fiscal Year 2023 Earnings Conference Call. [Operator Instructions] Please ...

Exhibit 99.1 Press Release Investor Relations Contact Dean Ridlon Cognyte Software Ltd. IR@cognyte.com Cognyte Announces Third Quarter Results Herzliya, Israel, December 20, 2022 - Cognyte Software Ltd. (NASDAQ: CGNT) (the "Company," "Cognyte," "we," "us" and "our"), a global leader in investigative analytics software, today announced results for the three and nine months ended October 31, 2022 ("Q3 FYE23" and "YTD FYE23"). Q3 Highlights • Revenue: $71.3 million (GAAP) and $71.5 million (non-GAAP) • Gross M ...

| --- | --- | --- | |--------------------------|-------|-------| | | | | | | | | | | | | | | | | | Q2 FYE23 Conference Call | | | 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 ex ...