Cognyte Announces First Quarter Fiscal 2024 Results
Increases Full-Year Outlook
HERZLIYA, Israel–(BUSINESS WIRE)–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 ended April 30, 2023 (“Q1 FYE24”).
Q1 Highlights
|
|
Three Months Ended April 30, 2023 |
||
|
(in thousands, except per share data) |
GAAP |
|
Non-GAAP |
|
Revenue |
$73,266 |
|
$73,378 |
|
Gross Margin |
67.9% |
|
68.4% |
|
Diluted EPS |
$(0.13) |
|
$(0.23) |
“I’m pleased to report a good start for the year, with solid Q1 results, which enables us to raise our outlook for the year on non-GAAP revenue, gross profit, EPS and cash flow. We now expect gross profit to grow faster than revenue, at more than ten percent year over year on an SIS Adjusted non-GAAP basis. Looking beyond this year, recent innovations in Artificial Intelligence present opportunities to increase the value of our investigative analytics solutions for our customers and expand our business over time. We believe that our innovative technology combined with recent AI developments, current positive industry trends, and our large customer base position us well for long-term growth,” said Elad Sharon, Cognyte’s chief executive officer.
“We are expecting significant gross margin improvement for the full year primarily due to an increase in software revenue. I am also very pleased with the strong cash flow in the first quarter and we are now expecting positive cash flow from operations for the full year,” said David Abadi, Cognyte’s chief financial officer.
Updated FYE24 Outlook
Our non-GAAP outlook for the year ending January 31, 2024 (“FYE24” and “Fiscal 2024”) is as follows:
- Revenue: $303 million at the midpoint with a range of +/- 2%, approximately 7% growth from previous year SIS Adjusted non-GAAP revenue.
- Diluted EPS: Loss of $0.53 at the midpoint of our revenue outlook.
Our non-GAAP outlook for FYE24, excludes the following GAAP measures which we are able to quantify with reasonable certainty, as described further below under “Supplemental Information About non-GAAP Financial Measures and Operating Metrics”:
- Amortization of intangible assets of approximately $0.3 million.
Our non-GAAP outlook for FYE24 excludes the following GAAP measures for which we are able to provide a range of probable significance:
- 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 does not include the potential impact of any in-process business acquisitions that may close after the date hereof, and, unless otherwise specified, reflects foreign currency exchange rates approximately consistent with current rates.
We are unable, without unreasonable effort, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items. For these same reasons, we are unable to assess the probable significance of these excluded items. While historical results may not be indicative of future results, actual amounts for the three months ended April 30, 2023, and 2022, respectively, for the GAAP measures excluded from our non-GAAP outlook appear in Table 4 of this press release.
Conference Call Information
We will conduct a conference call today at 8:30 a.m. ET to discuss our results for the three months ended April 30, 2023. A real-time webcast of the conference call with presentation slides will be available in the Investor Relations section of Cognyte’s website. Those interested in participating in the question-and-answer session need to register here to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). An archived webcast of the conference call will also be available in the “Investors” section of the company’s website.
About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of non-GAAP financial measures presented for completed periods to the most directly comparable financial measures prepared in accordance with GAAP, please see the tables below as well as “Supplemental Information About Non-GAAP Financial Measures” at the end of this press release.
About Cognyte Software Ltd.
Cognyte Software Ltd. is a global leader in investigative analytics software that empowers a variety of government and other organizations with Actionable Intelligence for a Safer World™. Our open interface software is designed to help customers accelerate and improve the effectiveness of investigations and decision-making. Hundreds of customers rely on our solutions to accelerate and conduct investigations and derive insights, with which they identify, neutralize, and tackle threats to national security and address different forms of criminal and terror activities. Learn more at www.cognyte.com.
Caution About Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the United States Securities Exchange Act of 1934. Forward-looking statements include statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Cognyte. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These forward-looking statements do not guarantee future performance and are based on management’s expectations that involve a number of known and unknown risks, uncertainties, assumptions and other important factors, any of which could cause our actual results or conditions to differ materially from those expressed in or implied by the forward-looking statements. Some of the factors that could cause our actual results or conditions to differ materially from current expectations include, among others: uncertainties regarding the impact of changes in macroeconomic and/or global conditions; risks related to the impact of inflation and related volatility on our financial performance; risks related to the impact of disruptions to the global supply chain; risks related to the continuing restrictions resulting from the COVID-19 pandemic on our operations and business; risks relating to the global regulatory constraints to which we are subject; risks associated with political and reputational factors related to our business or operations; risks related to claims by third parties that our solutions infringe their terms of use or other propriety rights; risks that our products or services, or those of third-party suppliers, partners, or original equipment manufacturers (“OEMs”) which we use in or with our offerings or otherwise rely on, including third-party hosting platforms, may contain defects, develop operational problems, or be vulnerable to cyber-attacks; risks associated with larger orders and customer concentration; risks associated with our ability to keep pace with technological advances and challenges and evolving industry standards; risks related to our relationships with and reliance on third parties for certain components, products, or services; risks due to aggressive competition in all of our markets; challenges associated with selling sophisticated solutions, risks associated with customer concentration, including risks related to significant amounts of our business coming from government customers around the world; risks associated with our ability or costs to retain, recruit, and train qualified personnel in regions in which we operate; risks relating to our ability to properly manage investments in our business and operations; risks associated with acquisitions, strategic investments, partnerships or alliances; risk of security vulnerabilities or lapses, including cyber-attacks, information technology system breaches, failures or disruptions; risks associated with the mishandling or perceived mishandling of sensitive, confidential or classified information; risks associated with our failure to comply with anti-corruption, trade compliance, anti-money-laundering and economic sanctions laws and regulations; risks associated with our credit facilities, or that we may experience liquidity or working capital issues and related risks that financing sources may be unavailable to us on reasonable terms; risks associated with changing tax laws and regulations; risks associated with our significant international operations; risks associated with market volatility in the price of our shares; risks associated with complex and changing regulatory environments relating to our operations and the markets we operate in; risks relating to the adequacy of our existing infrastructure, systems, processes, policies, procedures, internal controls, and personnel for our current and future operations and reporting needs; risks related to our limited operating history as an independent public company; risk that the spin-off does not achieve the benefits anticipated, does not qualify as a tax-free transaction, or exposes us to unexpected claims or liabilities; risks associated with different corporate governance requirements applicable to Israeli companies; and other risks set forth and in Section 3.D – “Risk Factors” in our latest annual report on Form 20-F for the fiscal year ended January 31, 2023, which has been filed with the Securities and Exchange Commission (the “SEC”), along with other documents submitted to the SEC, on April 11, 2023. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Any forward-looking statement made in this press release speaks only as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances, or any other reason.
|
Table 1 COGNYTE SOFTWARE LTD. Condensed Consolidated Statements of Operations (Unaudited) |
||||||||
|
|
|
Three Months Ended April 30, |
||||||
|
(in thousands except share and per share data) |
|
|
2023 |
|
|
|
2022 |
|
|
Revenue: |
|
|
|
|
||||
|
Software |
|
$ |
25,372 |
|
|
$ |
24,884 |
|
|
Software service |
|
|
41,093 |
|
|
|
45,832 |
|
|
Professional service and other |
|
|
6,801 |
|
|
|
15,726 |
|
|
Total revenue |
|
|
73,266 |
|
|
|
86,442 |
|
|
Cost of revenue: |
|
|
|
|
||||
|
Software |
|
|
3,337 |
|
|
|
4,918 |
|
|
Software service |
|
|
11,072 |
|
|
|
12,143 |
|
|
Professional service and other |
|
|
9,088 |
|
|
|
17,569 |
|
|
Amortization of acquired technology |
|
|
— |
|
|
|
171 |
|
|
Total cost of revenue |
|
|
23,497 |
|
|
|
34,801 |
|
|
Gross profit |
|
|
49,769 |
|
|
|
51,641 |
|
|
Operating expenses: |
|
|
|
|
||||
|
Research and development, net |
|
|
27,747 |
|
|
|
37,979 |
|
|
Selling, general and administrative |
|
|
28,800 |
|
|
|
43,402 |
|
|
Amortization of other acquired intangible assets |
|
|
90 |
|
|
|
251 |
|
|
Total operating expenses |
|
|
56,637 |
|
|
|
81,632 |
|
|
Operating loss |
|
|
(6,868 |
) |
|
|
(29,991 |
) |
|
Other income, net: |
|
|
|
|
||||
|
Interest income |
|
|
369 |
|
|
|
147 |
|
|
Interest expense |
|
|
(3 |
) |
|
|
(449 |
) |
|
Other income, net |
|
|
944 |
|
|
|
1,029 |
|
|
Total other income, net |
|
|
1,310 |
|
|
|
727 |
|
|
Loss before provision for income taxes |
|
|
(5,558 |
) |
|
|
(29,264 |
) |
|
Provision for income taxes |
|
|
1,869 |
|
|
|
135 |
|
|
Net loss |
|
|
(7,427 |
) |
|
|
(29,399 |
) |
|
Net income attributable to noncontrolling interest |
|
|
1,326 |
|
|
|
969 |
|
|
Net loss attributable to Cognyte Software Ltd. |
|
$ |
(8,753 |
) |
|
$ |
(30,368 |
) |
|
|
|
|
|
|
||||
|
Net loss per share attributable to Cognyte Software Ltd.: |
|
|
|
|
||||
|
Basic and diluted |
|
$ |
(0.13 |
) |
|
$ |
(0.45 |
) |
|
|
|
|
|
|
||||
|
Weighted-average shares outstanding: |
|
|
|
|
||||
|
Basic and diluted |
|
|
68,901 |
|
|
|
67,304 |
|
|
Table 2 COGNYTE SOFTWARE LTD. Condensed Consolidated Balance Sheets |
||||||||
|
|
|
April 30, |
|
January 31, |
||||
|
|
|
|
2023 |
|
|
|
2023 |
|
|
(in thousands) |
|
(Unaudited) |
|
(Audited) |
||||
|
Assets |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
44,499 |
|
|
$ |
34,579 |
|
|
Restricted cash and cash equivalents and restricted bank time deposits |
|
|
4,219 |
|
|
|
4,359 |
|
|
Short-term investments |
|
|
23,935 |
|
|
|
17,507 |
|
|
Accounts receivable, net of allowance for credit losses of $1.6 million |
|
|
103,641 |
|
|
|
113,201 |
|
|
Contract assets, net |
|
|
10,819 |
|
|
|
17,476 |
|
|
Inventories |
|
|
25,961 |
|
|
|
25,263 |
|
|
Prepaid expenses and other current assets |
|
|
35,288 |
|
|
|
39,339 |
|
|
Total current assets |
|
|
248,362 |
|
|
|
251,724 |
|
|
Property and equipment, net |
|
|
25,528 |
|
|
|
25,874 |
|
|
Operating lease right-of-use assets |
|
|
16,574 |
|
|
|
17,559 |
|
|
Goodwill |
|
|
126,543 |
|
|
|
126,487 |
|
|
Intangible assets, net |
|
|
559 |
|
|
|
650 |
|
|
Deferred income taxes |
|
|
781 |
|
|
|
823 |
|
|
Other assets |
|
|
19,644 |
|
|
|
19,961 |
|
|
Total assets |
|
$ |
437,991 |
|
|
$ |
443,078 |
|
|
|
|
|
|
|
||||
|
Liabilities and stockholders’ equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Accounts payable |
|
$ |
15,357 |
|
|
$ |
20,677 |
|
|
Accrued expenses and other current liabilities |
|
|
80,892 |
|
|
|
78,297 |
|
|
Contract liabilities |
|
|
101,636 |
|
|
|
94,882 |
|
|
Total current liabilities |
|
|
197,885 |
|
|
|
193,856 |
|
|
Long-term contract liabilities |
|
|
13,856 |
|
|
|
14,382 |
|
|
Deferred income taxes |
|
|
3,062 |
|
|
|
3,031 |
|
|
Operating lease liabilities |
|
|
8,898 |
|
|
|
10,368 |
|
|
Other liabilities |
|
|
11,490 |
|
|
|
11,667 |
|
|
Total liabilities |
|
|
235,191 |
|
|
|
233,304 |
|
|
Commitments and Contingencies |
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
|
||||
|
Common stock – $0 par value; Authorized 300,000,000 shares. Issued 69,011,667 and 68,842,601 at April 30, 2023 and January 31, 2023, respectively; Outstanding 69,011,284 and 68,842,601 shares at April 30, 2023 and January 31, 2023, respectively |
|
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
|
340,989 |
|
|
|
338,465 |
|
|
Accumulated deficit |
|
|
(137,775 |
) |
|
|
(129,022 |
) |
|
Accumulated other comprehensive loss |
|
|
(17,084 |
) |
|
|
(15,314 |
) |
|
Total Cognyte Software Ltd. stockholders’ equity |
|
|
186,130 |
|
|
|
194,129 |
|
|
Noncontrolling interest |
|
|
16,670 |
|
|
|
15,645 |
|
|
Total stockholders’ equity |
|
|
202,800 |
|
|
|
209,774 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
437,991 |
|
|
$ |
443,078 |
|
|
Table 3 COGNYTE SOFTWARE LTD. Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
|
Three Months Ended April 30, |
||||||
|
(in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
Cash flows from operating activities: |
|
|
|
|
||||
|
Net loss |
|
$ |
(7,427 |
) |
|
$ |
(29,399 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
3,343 |
|
|
|
4,362 |
|
|
Allowance for credit losses |
|
|
(33 |
) |
|
|
305 |
|
|
Stock-based compensation, excluding cash-settled awards |
|
|
1,915 |
|
|
|
5,105 |
|
|
Provision from deferred income taxes |
|
|
44 |
|
|
|
(226 |
) |
|
Non-cash losses on derivative financial instruments, net |
|
|
(308 |
) |
|
|
(348 |
) |
|
Other non-cash items, net |
|
|
37 |
|
|
|
(524 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable |
|
|
16,081 |
|
|
|
19,710 |
|
|
Contract assets |
|
|
(476 |
) |
|
|
776 |
|
|
Inventories |
|
|
(1,293 |
) |
|
|
(4,011 |
) |
|
Prepaid expenses and other assets |
|
|
3,940 |
|
|
|
(4,472 |
) |
|
Accounts payable and accrued expenses |
|
|
(3,573 |
) |
|
|
1,590 |
|
|
Contract liabilities |
|
|
6,172 |
|
|
|
(2,488 |
) |
|
Other liabilities |
|
|
640 |
|
|
|
1,078 |
|
|
Other, net |
|
|
(135 |
) |
|
|
(170 |
) |
|
Net cash provided by (used in) operating activities |
|
|
18,928 |
|
|
|
(8,712 |
) |
|
|
|
|
|
|
||||
|
Cash flows from investing activities: |
|
|
|
|
||||
|
Purchases of property and equipment |
|
|
(1,638 |
) |
|
|
(2,452 |
) |
|
Purchases of short-term investments |
|
|
(23,935 |
) |
|
|
(14,623 |
) |
|
Maturities and sales of short-term investments |
|
|
17,186 |
|
|
|
10,239 |
|
|
Settlements of derivative financial instruments not designated as hedges |
|
|
(245 |
) |
|
|
48 |
|
|
Cash paid for capitalized software development costs |
|
|
(518 |
) |
|
|
(580 |
) |
|
Change in restricted bank time deposits, including long-term portion |
|
|
(1 |
) |
|
|
7 |
|
|
Net cash used in investing activities |
|
|
(9,150 |
) |
|
|
(7,361 |
) |
|
|
|
|
|
|
||||
|
Cash flows from financing activities: |
|
|
|
|
||||
|
Repayment from credit facility – presented as short term loan |
|
|
— |
|
|
|
(50,000 |
) |
|
Net cash used in financing activities |
|
|
— |
|
|
|
(50,000 |
) |
|
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents |
|
|
(61 |
) |
|
|
170 |
|
|
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
9,717 |
|
|
|
(65,904 |
) |
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period |
|
|
39,044 |
|
|
|
158,220 |
|
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period |
|
$ |
48,761 |
|
|
$ |
92,316 |
|
|
|
|
|
|
|
||||
|
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents at end of period: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
44,499 |
|
|
$ |
91,790 |
|
|
Restricted cash and cash equivalents included in restricted cash and cash equivalents and restricted bank time deposits |
|
|
4,162 |
|
|
|
429 |
|
|
Restricted cash and cash equivalents included in other assets |
|
|
100 |
|
|
|
97 |
|
|
Total cash, cash equivalents, restricted cash, and restricted cash equivalents |
|
$ |
48,761 |
|
|
$ |
92,316 |
|
|
Table 4 COGNYTE SOFTWARE LTD. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) |
|||||||
|
|
Three Months Ended April 30, |
||||||
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
Revenue |
|||||||
|
Total GAAP revenue |
$ |
73,266 |
|
|
$ |
86,442 |
|
|
Revenue adjustments |
|
112 |
|
|
|
244 |
|
|
Total non-GAAP revenue |
$ |
73,378 |
|
|
$ |
86,686 |
|
|
|
|
|
|
||||
|
Gross profit and gross margin |
|
|
|
||||
|
GAAP gross profit |
|
49,769 |
|
|
|
51,641 |
|
|
GAAP gross margin |
|
67.9 |
% |
|
|
59.7 |
% |
|
Revenue adjustments |
|
112 |
|
|
|
244 |
|
|
Stock-based compensation expenses |
|
313 |
|
|
|
657 |
|
|
Restructuring expenses, net |
|
— |
|
|
|
33 |
|
|
Other adjustments |
|
— |
|
|
|
171 |
|
|
Non-GAAP gross profit |
$ |
50,194 |
|
|
$ |
52,746 |
|
|
Non-GAAP gross margin |
|
68.4 |
% |
|
|
60.8 |
% |
|
|
|
|
|
||||
|
Research and development, net |
|
|
|
||||
|
GAAP research and development, net |
|
27,747 |
|
|
|
37,979 |
|
|
As a percentage of GAAP revenue |
|
37.9 |
% |
|
|
43.9 |
% |
|
Stock-based compensation expenses |
|
(472 |
) |
|
|
(1,825 |
) |
|
Restructuring expenses, net |
|
(79 |
) |
|
|
2 |
|
|
Non-GAAP research and development, net |
$ |
27,196 |
|
|
$ |
36,156 |
|
|
As a percentage of non-GAAP revenue |
|
37.1 |
% |
|
|
41.7 |
% |
|
|
|
|
|
||||
|
Selling, general and administrative expenses |
|
|
|
||||
|
GAAP selling, general and administrative expenses |
|
28,800 |
|
|
|
43,402 |
|
|
As a percentage of GAAP revenue |
|
39.3 |
% |
|
|
50.2 |
% |
|
Stock-based compensation expenses |
|
(1,130 |
) |
|
|
(2,623 |
) |
|
Restructuring expenses, net |
|
(119 |
) |
|
|
(1,974 |
) |
|
Separation expenses, net |
|
1,024 |
|
|
|
(32 |
) |
|
Other adjustments |
|
(53 |
) |
|
|
(116 |
) |
|
Non-GAAP selling, general and administrative expenses |
$ |
28,522 |
|
|
$ |
38,657 |
|
|
As a percentage of non-GAAP revenue |
|
38.9 |
% |
|
|
44.6 |
% |
|
|
|
|
|
||||
|
Operating loss, operating margin and adjusted EBITDA |
|||||||
|
GAAP Operating loss |
|
(6,868 |
) |
|
|
(29,991 |
) |
|
GAAP operating margin |
|
(9.4 |
)% |
|
|
(34.7 |
)% |
|
Stock-based compensation expenses |
|
1,915 |
|
|
|
5,105 |
|
|
Restructuring expenses, net |
|
198 |
|
|
|
2,007 |
|
|
Separation expenses, net |
|
(1,024 |
) |
|
|
32 |
|
|
Other adjustments |
|
255 |
|
|
|
780 |
|
|
Non-GAAP operating loss |
$ |
(5,524 |
) |
|
$ |
(22,067 |
) |
|
|
Three Months Ended April 30, |
||||||
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
Depreciation and amortization |
|
3,248 |
|
|
|
3,906 |
|
|
Adjusted EBITDA |
$ |
(2,276 |
) |
|
$ |
(18,161 |
) |
|
Non-GAAP operating margin |
|
(7.5 |
)% |
|
|
(25.5 |
)% |
|
Adjusted EBITDA margin |
|
(3.1 |
)% |
|
|
(21.0 |
)% |
|
|
|
|
|
||||
|
Other income (expense) reconciliation |
|||||||
|
GAAP other income, net |
|
1,310 |
|
|
|
727 |
|
|
Change in fair value of equity investment |
|
— |
|
|
|
(1,660 |
) |
|
Business divestiture |
|
160 |
|
|
|
— |
|
|
Non-GAAP other income (expense), net |
$ |
1,470 |
|
|
$ |
(933 |
) |
|
|
|
|
|
||||
|
Tax provision reconciliation |
|||||||
|
GAAP provision for income taxes |
|
1,869 |
|
|
|
135 |
|
|
Effective income tax rate |
|
(33.6 |
)% |
|
|
(0.5 |
)% |
|
Non-GAAP tax adjustments |
|
8,694 |
|
|
|
29,385 |
|
|
Non-GAAP provision for income taxes (1) |
$ |
10,563 |
|
|
$ |
29,520 |
|
|
Non-GAAP effective income tax rate |
|
(260.6 |
)% |
|
|
(128.4 |
)% |
|
|
|
|
|
||||
|
Net loss attributable to Cognyte Software Ltd. reconciliation |
|||||||
|
GAAP Net loss attributable to Cognyte Software Ltd. |
$ |
(8,753 |
) |
|
$ |
(30,368 |
) |
|
Revenue adjustments |
|
112 |
|
|
|
244 |
|
|
Stock-based compensation expenses |
|
1,915 |
|
|
|
5,105 |
|
|
Restructuring expenses, net |
|
198 |
|
|
|
2,007 |
|
|
Separation expenses, net |
|
(1,024 |
) |
|
|
32 |
|
|
Other adjustments |
|
303 |
|
|
|
536 |
|
|
Change in fair value of equity investment |
|
— |
|
|
|
(1,660 |
) |
|
Non-GAAP tax adjustments |
|
(8,694 |
) |
|
|
(29,385 |
) |
|
Total adjustments |
|
(7,190 |
) |
|
|
(23,121 |
) |
|
Non-GAAP net loss attributable to Cognyte Software Ltd. |
$ |
(15,943 |
) |
|
$ |
(53,489 |
) |
|
|
|
|
|
||||
|
Table comparing GAAP diluted net loss per share attributable to Cognyte Software Ltd. and Non-GAAP diluted net loss per share attributable to Cognyte Software Ltd. |
|||||||
|
GAAP diluted net loss per share attributable to Cognyte Software Ltd. |
$ |
(0.13 |
) |
|
$ |
(0.45 |
) |
|
Non-GAAP diluted net loss per share attributable to Cognyte Software Ltd. |
$ |
(0.23 |
) |
|
$ |
(0.79 |
) |
|
GAAP weighted-average shares used in computing diluted net loss per share attributable to Cognyte Software Ltd. |
|
68,901 |
|
|
|
67,304 |
|
|
Additional weighted-average shares applicable to non-GAAP diluted net income per share attributable to Cognyte Software Ltd. |
|
— |
|
|
|
— |
|
|
Non-GAAP diluted weighted-average shares used in computing net loss per share attributable to Cognyte Software Ltd. |
|
68,901 |
|
|
|
67,304 |
|
|
|
|
|
|
||||
|
Table of reconciliation from GAAP net loss attributable to Cognyte Software Ltd. to adjusted EBITDA |
|||||||
|
GAAP Net loss attributable to Cognyte Software Ltd. |
$ |
(8,753 |
) |
|
$ |
(30,368 |
) |
|
As a percentage of GAAP revenue |
|
(11.9 |
)% |
|
|
(35.1 |
)% |
|
Net income attributable to noncontrolling interest |
|
1,326 |
|
|
|
969 |
|
|
GAAP provision for income taxes |
|
1,869 |
|
|
|
135 |
|
|
GAAP other income, net |
|
(1,310 |
) |
|
|
(727 |
) |
|
Depreciation and amortization |
|
3,248 |
|
|
|
3,906 |
|
|
Revenue adjustments |
|
112 |
|
|
|
244 |
|
|
|
Three Months Ended April 30, |
||||||
|
(in thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
Stock-based compensation expenses |
|
1,915 |
|
|
|
5,105 |
|
|
Restructuring expenses, net |
|
198 |
|
|
|
2,007 |
|
|
Separation expenses, net |
|
(1,024 |
) |
|
|
32 |
|
|
Other adjustments |
|
143 |
|
|
|
536 |
|
|
Adjusted EBITDA |
$ |
(2,276 |
) |
|
$ |
(18,161 |
) |
|
As a percentage of non-GAAP revenue |
|
(3.1 |
)% |
|
|
(21.0 |
)% |
|
Table 5 COGNYTE SOFTWARE LTD. Reconciliation of Non-GAAP to SIS Adjusted Non-GAAP Measures (Unaudited) |
|||||||
|
|
Three Months Ended April 30, |
||||||
|
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
Revenue |
|
|
|
||||
|
Total non-GAAP revenue |
$ |
73,378 |
|
|
$ |
86,686 |
|
|
SIS revenue adjustments |
|
— |
|
|
|
(9,176 |
) |
|
Total SIS Adjusted non-GAAP revenue |
$ |
73,378 |
|
|
$ |
77,510 |
|
|
|
|
|
|
||||
|
Gross profit and gross margin |
|
|
|
||||
|
Non-GAAP gross profit |
|
50,194 |
|
|
|
52,746 |
|
|
Non-GAAP gross margin |
|
68.4 |
% |
|
|
60.8 |
% |
|
SIS adjustments |
|
— |
|
|
|
(6,035 |
) |
|
SIS Adjusted non-GAAP gross profit |
$ |
50,194 |
|
|
$ |
46,711 |
|
|
SIS Adjusted non-GAAP gross margin |
|
68.4 |
% |
|
|
60.3 |
% |
|
|
|
|
|
||||
|
Research and development, net |
|
|
|
||||
|
Non-GAAP research and development, net |
|
27,196 |
|
|
|
36,156 |
|
|
As a percentage of non-GAAP revenue |
|
37.1 |
% |
|
|
41.7 |
% |
|
SIS adjustments |
|
— |
|
|
|
(3,024 |
) |
|
SIS Adjusted non-GAAP research and development, net |
$ |
27,196 |
|
|
$ |
33,132 |
|
|
As a percentage of SIS Adjusted non-GAAP revenue |
|
37.1 |
% |
|
|
42.7 |
% |
|
|
|
|
|
||||
|
Selling, general and administrative expenses |
|
|
|
||||
|
Non-GAAP selling, general and administrative expenses |
|
28,522 |
|
|
|
38,657 |
|
|
As a percentage of non-GAAP revenue |
|
38.9 |
% |
|
|
44.6 |
% |
|
SIS adjustments |
|
— |
|
|
|
(2,688 |
) |
|
SIS Adjusted non-GAAP selling, general and administrative expenses |
$ |
28,522 |
|
|
$ |
35,969 |
|
|
As a percentage of SIS Adjusted non-GAAP revenue |
|
38.9 |
% |
|
|
46.4 |
% |
|
|
|
|
|
||||
|
Operating loss and operating margin |
|
|
|
||||
|
Non-GAAP operating loss |
|
(5,524 |
) |
|
|
(22,067 |
) |
|
Non-GAAP operating margin |
|
(7.5 |
)% |
|
|
(25.5 |
)% |
|
SIS adjustments |
|
— |
|
|
|
(323 |
) |
|
SIS Adjusted non-GAAP operating loss |
$ |
(5,524 |
) |
|
$ |
(22,390 |
) |
|
SIS Adjusted non-GAAP operating margin |
|
(7.5 |
)% |
|
|
(28.9 |
)% |
|
|
|
|
|
||||
|
|
|
|
|
||||
Contacts
Investor Relations
Dean Ridlon
Cognyte Software Ltd.
