nyte Software .(US:CGNT)2025-04-02 14:49Financial Data and Key Metrics Changes - The company reported a revenue growth of 13% year-over-year in Q4, reaching $94.5 million, and a full-year revenue increase of approximately 12% to $351 million [11][12][27] - Non-GAAP gross profit for Q4 increased by 17% year-over-year, while full-year gross profit grew by approximately 15% [11][12][29] - Adjusted EBITDA for Q4 was over $9 million, representing a 114% year-over-year growth, and for the full year, adjusted EBITDA reached $29 million, more than three times the previous fiscal year [12][30] Business Line Data and Key Metrics Changes - Total software revenue for the full year was $306.7 million, accounting for about 87% of total revenue, with recurring revenue at $186.6 million, representing 53% of total revenue [27] - In Q4, software revenue was $37.4 million, and software services revenue was $45.9 million, contributing to a total software revenue of $83.3 million [33] - Recurring revenue in Q4 reached $47.3 million, or 50% of total revenue, compared to $42.9 million in the same period last year [35] Market Data and Key Metrics Changes - Geographic revenue mix for the year was 55% from EMEA, 31% from APAC, and 14% from the Americas, with a noted decline in revenue from the Americas region [27][28] - The company added over 60 new customers across multiple regions during the year, doubling the number from the previous fiscal year [15] Company Strategy and Development Direction - The company aims to drive growth through new advanced capabilities, deepening customer relationships, and expanding market reach, particularly in the U.S. federal law enforcement market [17][18] - The strategy includes significant investments in sales and marketing in the U.S. to penetrate the market further and enhance brand awareness [79][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market's potential despite current policy uncertainties, highlighting ongoing engagement with federal agencies [56][58] - For fiscal '26, the company expects revenue of approximately $392 million, representing about 12% year-over-year growth, with gross profit anticipated to grow faster than revenue [17][44] Other Important Information - The company ended the year with a strong balance sheet, including $113.3 million in cash and no debt, and robust deferred revenue of $130.3 million [31][32] - The company initiated a stock repurchase program, buying approximately 586,000 shares for about $5.3 million [32] Q&A Session Summary Question: What are the demand trends in the U.S. market? - Management believes the U.S. presents a good opportunity, with ongoing investments to improve market reach and positive engagement with federal agencies [56][58] Question: Are sales cycles extending due to current market conditions? - Sales cycles in the U.S. are longer due to the penetration mode, but management does not anticipate a negative impact from current unrest [61][62] Question: What are the U.S. demand drivers compared to international markets? - Demand drivers are similar globally, focusing on criminal activities, with an increasing emphasis on border control in the U.S. [74][76] Question: What investments are being made to accelerate sales cycles in the U.S.? - The company is hiring local sales teams, increasing marketing efforts, and expanding partnerships to enhance sales cycles [79][81] Question: What should be expected regarding long-term growth models? - Management indicated that the business fundamentals are healthy, with expectations for continued profitability and growth, but specific long-term targets will be discussed at the upcoming Investor Day [84][86]