nyte Software .(US:CGNT)2025-06-11 13:30Financial Data and Key Metrics Changes - The company reported Q1 revenue of approximately $95.5 million, reflecting a year-over-year growth of about 16% [7][18] - Non-GAAP gross profit increased by approximately 17% year-over-year, reaching $68.7 million [7][20] - Adjusted EBITDA for the quarter was approximately $10.3 million, more than double the $5 million generated in Q1 last year [8][21] - Non-GAAP operating income was $7.6 million, over four times higher than the $1.8 million generated in Q1 last year [21] - Cash flow from operations was approximately $1.7 million, with negative free cash flow of $2.5 million [22] Business Line Data and Key Metrics Changes - Software revenue for Q1 was $37.4 million, an increase of $5.9 million or 19% year-over-year [18] - Professional service revenue in Q1 was $13.5 million, an increase of $6.6 million over last year [19] - Recurring revenue for Q1 was $47.2 million, representing 49% of total revenue [20] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) at the end of Q1 was $597.8 million, up $52 million versus the end of fiscal 2025 [24] - Short-term RPO increased to $346.9 million, providing solid visibility into revenue over the next twelve months [25] Company Strategy and Development Direction - The company is focused on expanding its presence in the U.S. market, highlighted by the acquisition of GroupSense, a cyber threat intelligence company [13][23] - The strategic priorities include enhancing customer engagement and addressing complex intelligence challenges [12][30] - The company aims to leverage its technology to deliver greater value to customers and improve operational agility [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in healthy demand and continued validation of technology through customer wins [14][30] - The company updated its guidance for fiscal 2026, expecting revenue of approximately $395 million, representing about 13% year-over-year growth [15][27] - Management noted that the demand environment remains favorable, with ongoing customer engagement and positive feedback across the portfolio [30] Other Important Information - The company executed a share repurchase program, buying approximately 952,000 ordinary shares for about $9 million [22] - The GroupSense acquisition closed on May 20, 2025, for approximately $4 million in cash, with an earnout of up to $5 million based on performance targets [23] Q&A Session Summary Question: How did the quarter play out versus plan? - Management indicated that Q1 top line performance was slightly ahead of expectations, with continued sequential growth anticipated throughout the year [34][35] Question: Why isn't the recent contract value impacting fiscal 2026 more significantly? - Management explained that some large deals were already included in guidance, and the deployment of a significant subscription deal is planned for Q1 of fiscal 2027 [38][39] Question: What is the revenue impact of the GroupSense acquisition? - The acquisition is expected to add approximately $3 million to the top line, with a breakeven business model and a small increase in operating expenses [40][41]