Cognyte Software Ltd. Reports Third Quarter Fiscal Year 2025 Financial Results
Cognyte Software Ltd. (NASDAQ: CGNT), a global leader in investigative analytics software, has announced its financial results for the third quarter ended October 31, 2024.
Key Financial Metrics
| Financial Metric | Q3 FYE25 | Q3 FYE24 | YoY Change |
|---|---|---|---|
| Revenue | $89.0 million | $79.4 million | +12.1% |
| GAAP Net Loss | $(2.6) million | $6.2 million | N/A |
| Adjusted EBITDA | $6.6 million | $4.6 million | +41.9% |
The company reported a significant growth in revenue by 12.1% year-over-year to $89.0 million. A strong gain in Adjusted EBITDA by 41.9% underlines the operational efficiencies Cognyte has achieved. Notably, the GAAP net loss marked a shift from a positive position the prior year, indicating challenges faced in the period.
Segment Revenue Breakdown
| Revenue Segment | Q3 FYE25 | Change |
|---|---|---|
| Total Software Revenue | $75.3 million | +$3.7 million |
The software segment's performance, notably the 40% contribution to growth from subscription revenue, highlights the strength in recurring revenue streams. Professional services also saw an increase thanks to favorable revenue recognition timing.
Key Developments and Operational Highlights
- Secured four major orders, including two deals surpassing $20 million.
- Hosted the Global Cognyte Intelligence Summit in Europe focused on AI innovation in security.
- Achieved significant billings of $104.7 million due to signing key deals.
Executive Commentary
Elad Sharon, CEO, remarked on the quarter's demonstration of Cognyte's strategic execution and ability to capitalize on the growing market need for their solutions. Meanwhile, CFO David Abadi highlighted the company's operational leverage, emphasizing the promising potential for sustained growth and profitability, citing a remarkable non-GAAP gross profit increase of 13.9% year-to-date.
Future Outlook
Cognyte has updated its fiscal year 2025 outlook, projecting revenue at $349 million at the midpoint, reflecting approximately 11% growth. Adjusted EBITDA is expected around $26 million, and non-GAAP diluted EPS at $0.05. This revision underscores the confidence in maintaining growth momentum backed by strong year-to-date performance and a robust backlog.
Overall, Cognyte's Q3 performance showcases the company's efficacy in executing its strategic objectives, with substantial gains in key financial metrics and significant deals underscoring ongoing and future business stability.
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