nyte Software .(US:CGNT)2025-05-28 15:15Financial Data and Key Metrics Changes - The company reported revenue of $355 million for fiscal 2025, representing a 12% year-over-year growth [10] - Non-GAAP gross profit increased by 15%, and adjusted EBITDA reached $29 million, more than three times the previous year's figure [10] - For fiscal 2026, the company expects revenue to grow to approximately $392 million, maintaining a 12% growth rate, with adjusted EBITDA projected to be $43 million, reflecting a year-over-year growth of about 45% [13] Business Line Data and Key Metrics Changes - The company operates in a fragmented market, primarily serving government security agencies, with a revenue split of approximately 55% from EMEA, 30% from APAC, and 15% from the Americas [11] - The company is focusing on expanding its presence in the U.S., where only about 3% of revenue currently comes from [15] Market Data and Key Metrics Changes - The company has hundreds of customers across nearly 100 countries, addressing various security challenges such as drug trafficking and terror activities [3][11] - The demand for security solutions is increasing due to the growing complexity of threats and the need for advanced technology to analyze large volumes of data [12] Company Strategy and Development Direction - The company aims to expand its U.S. presence by focusing on law enforcement agencies and has started hiring local sales teams and participating in industry conferences [16][19] - The strategy includes a balanced approach to capital allocation, focusing on operational flexibility, share buybacks, and small tuck-in acquisitions to expand market reach [42][44] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the world is not becoming safer, leading to increased demand for their technology [12][55] - The company has a strong reputation and long-standing relationships with customers, which is expected to support continued growth [13][56] Other Important Information - The company is investing in AI capabilities to enhance its technology, including the ability to uncover hidden insights from encrypted data [35][38] - The company is currently offering solutions in both perpetual licenses and subscription models, with a gradual shift expected towards subscription [40][41] Q&A Session Summary Question: How do the three drivers (data, adversaries, technology) rank in importance? - Management stated that all three drivers are interconnected and influence each other, making it difficult to rank them separately [46][48] Question: What is the current mix of on-premises versus cloud solutions for government customers? - Most of the business is currently on-premises with a minor portion in subscription, but there is a growing interest in moving to cloud solutions due to benefits like no downtime and easier upgrades [50][53]