nyte Software .(CGNT)2023-09-11 16:00Financial Performance - Q2 FYE24 revenue was (0.13) on a GAAP basis[2] - For H1 FYE24, revenue reached (0.26) on a GAAP basis[6] - The company expects full-year non-GAAP revenue to be approximately (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 167,547,000 in the same period of 2022[24] - Software service revenue decreased to 91,269,000 year-over-year[24] - Total GAAP revenue for the six months ended July 31, 2023, was 167,547,000 in 2022[30] - Non-GAAP revenue for the six months ended July 31, 2023, was 77,053,000, unchanged from the previous year, while non-GAAP revenue for the same period was 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 59,242,000 in the same period of 2022[24] - GAAP operating loss improved to (56,401,000) in the same period of 2022[30] - The company reported a net loss of (57,095,000) in 2022[33] - Non-GAAP operating loss was (39,514,000) in the same period of 2022[30] - Adjusted EBITDA for the six months ended July 31, 2023, was (31,303,000) in 2022[37] Expenses and Cost Management - Total operating expenses for the six months ended July 31, 2023, were 159,473,000 in the prior year[24] - Research and development expenses decreased to 76,526,000 in the prior year[24] - Selling, general and administrative expenses 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 11,463,000 in 2022[37] Cash Flow and Liquidity - Cash and cash equivalents increased to 34,579,000 at January 31, 2023[26] - Cash and cash equivalents at the end of the period increased to 37,214,000 in the previous year[33] - Net cash provided by operating activities was (27,492,000) in 2022[33] - Total cash used in investing activities was (13,413,000) in 2022[33] Balance Sheet - Total assets decreased to 443,078,000 at January 31, 2023[26] - Total liabilities were 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]