HERZLIYA, Israel–(BUSINESS WIRE)–Cognyte Software Ltd. (NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and “our”), a global leader in security analytics software, today announced results for the three and nine months ended October 31, 2021 (“Q3 FYE22” and “YTD FYE22”).

“We are pleased with our third quarter results which came in ahead of expectations for both revenue and EPS. During the quarter, we received many large deals, including multiple seven- and eight-digit deals, driven by our innovative security analytics platform. As we approach completing our first year as an independent company, I am pleased with our sequential revenue growth and the ongoing increase in gross margin,” said Elad Sharon, Cognyte’s Chief Executive Officer.

Q3 Highlights

  • Revenue: $118.4 million (GAAP, up 4.8% y-o-y) and $118.7 million (non-GAAP, up 4.4% y-o-y)
  • Gross Margin: 72.7% (GAAP, down 10 bps y-o-y) and 73.7% (non-GAAP, no change y-o-y)
  • Diluted EPS: $0.03 (GAAP) and $0.21 (non-GAAP)

YTD FYE22 Highlights

  • Revenue: $349.1 million (GAAP, up 9.3% y-o-y) and $350.3 million (non-GAAP, up 8.6% y-o-y)
  • Gross Margin: 72.1% (GAAP, up 200 bps y-o-y) and 73.3% (non-GAAP, up 210 bps y-o-y)
  • Diluted EPS: $(0.04) (GAAP) and $0.58 (non-GAAP)

“Due to recent events affecting the timing of deployments including new travel restrictions in certain countries related to a worsening of the pandemic, recent shortages of third-party components required to deliver certain of our software solutions, and other factors, we are revising our FYE22 outlook. Our new outlook reflects approximately 7.5% revenue growth and 10% gross profit growth year-over-year,” said David Abadi, Cognyte’s Chief Financial Officer.

Revised FYE22 Outlook

Our non-GAAP outlook for the year ending January 31, 2022 (“FYE22”) is as follows:

  • Revenue: $480 million with a range of +/- 2%
  • Diluted EPS: $0.80 at the midpoint of our revenue outlook

Our non-GAAP outlook for FYE22 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”:

  • Revenue adjustments are expected to be approximately $1.6 million.
  • Amortization of intangible assets of approximately $2.1 million.

Our non-GAAP outlook for FYE22 excludes the following GAAP measures for which we are able to provide a range of probable significance:

  • Costs to complete separation of Cognyte from Verint Systems Inc. (hereafter “Verint”) and establish Cognyte as an independent public company of between approximately $11.1 million and $11.6 million.
  • Stock-based compensation is expected to be between approximately $34.5 million and $35.5 million, assuming market prices for our ordinary shares are generally consistent with current levels.

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 and nine months ended October 31, 2021, and 2020, 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 and nine months ended October 31, 2021, outlook, and long-term targets. An online, real-time webcast of the conference call and webcast slides will be available on our website at www.Cognyte.com . The conference call can also be accessed live via telephone at +1 (888) 771-4371 (United States and Canada) and +1 (847) 585-4405 (International) and the passcode is 50264430. Please dial in 5-10 minutes prior to the scheduled start time. 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 and Operating Metrics” at the end of this press release.

About Cognyte Software Ltd.

We are a global leader in security analytics software that empowers governments and enterprises with Actionable Intelligence for a Safer World™. Our open software fuses, analyzes and visualizes disparate data sets at scale to help security organizations find the needles in the haystacks. Over 1,000 government and enterprise customers in more than 100 countries rely on our solutions to accelerate security investigations and connect the dots to successfully identify, neutralize, and prevent national security, personal safety, business continuity and cyber threats. Our government customers consist of governments around the world, including national, regional, and local government agencies. Our enterprise customers consist of commercial customers and physical security customers.

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. 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, including as a result of slowdowns, recessions, economic instability, political unrest, armed conflicts, natural disasters or outbreaks of disease, such as the novel coronavirus (COVID-19) pandemic, as well as the resulting impact on information technology spending and government budgets in both developed countries and developing countries, on our business; risks that our customers may delay, cancel, or refrain from placing orders, refrain from renewing subscriptions or service contracts, or are unable to honor contractual commitments or payment obligations due to liquidity issues or other challenges in their budgets and business, due to the COVID-19 pandemic or otherwise; risks that continuing restrictions resulting from the COVID-19 pandemic or actions taken in response to the pandemic adversely impact our operations or our ability to fulfill orders, complete implementations, or recognize revenue; risks associated with our ability to keep pace with technological advances and challenges and evolving industry standards, to adapt to changing market potential from area to area within our markets; and to successfully develop, launch, and drive demand for new, innovative, high-quality products that meet or exceed customer needs, while simultaneously preserving our legacy businesses; risks due to aggressive competition in all of our markets, including with respect to maintaining revenue, margins, and sufficient levels of investment in our business and operations, and competitors with greater resources than we have; risks relating to the regulatory constraints to which we are subject, including our dependency on export and marketing licenses from the governments of Israel and other countries where we operate; risks relating to our ability to properly manage investments in our business and operations, execute on growth or strategic initiatives, such as our software model transition, and enhance our existing operations and infrastructure, including the proper prioritization and allocation of limited financial and other resources; risks associated with our ability to identify suitable targets for acquisition or investment or successfully compete for, consummate, and implement mergers and acquisitions, including risks associated with valuations, reputational considerations, capital constraints, costs and expenses, maintaining profitability levels, expansion into new areas, management distraction, post-acquisition integration activities, and potential asset impairments; challenges associated with selling sophisticated solutions, including with respect to longer sales cycles, more complex sales processes, and assisting customers in understanding and realizing the benefits of our solutions, as well as with developing, offering, implementing, and maintaining a broad solution portfolio; risks associated with larger orders and customer concentration, including risk of volatility of our operating results from period to period, and challenges associated with our ability to accurately forecast revenue and expenses; risks associated with a significant amount of our business coming from government customers around the world and associated procurement processes, and limitations on investor visibility due to classification or contractual restrictions; risks associated with political and reputational factors related to our business or operations, including with respect to the nature of our solutions or our Israeli identity, and our ability to maintain security clearances where required; risks that we may be unable to establish and maintain relationships with key resellers, partners, and systems integrators and risks associated with our reliance on third-party suppliers for certain components, products, or services, including companies that may compete with us or work with our competitors; risks associated with our ability to retain, recruit, and train qualified personnel in regions in which we operate, including in new markets and growth areas we may enter; risks associated with our significant international operations, including due to our Israeli operations, fluctuations in foreign exchange rates, and exposure to regions subject to political or economic instability; risk of security vulnerabilities or lapses, including cyber-attacks, information technology system breaches, failures or disruptions; risks that our products or services, or those of third-party suppliers, partners, or original equipment manufacturers 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 the mishandling or perceived mishandling of sensitive, confidential or classified information, including personally identifiable information or other information that may belong to our customers or other third parties; risks associated with complex and changing regulatory environments relating to our operations, the products and services we offer, and/or the use of our solutions by our customers, including with respect to applicable classification and confidentiality restrictions, and data privacy and protection; risks associated with our failure to comply with anti-corruption, trade compliance, anti-money-laundering and economic sanctions laws and regulations; risks that our intellectual property rights may not be adequate to protect our business or assets or that others may make claims on our intellectual property, claim infringement on their intellectual property rights, or claim a violation of their license rights, including relative to free or open source components we may use; 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 or at all; risks associated with changing tax laws and regulations, tax rates, and the continuing availability of expected tax benefits in the countries in which we operate; 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, including related risks of financial statement omissions, misstatements, restatements, or filing delays; risk that our goodwill or other intangible assets may become impaired; risks associated with exchange rate fluctuations between the U.S. dollar and the New Israeli Shekel and other non-U.S. currencies; risks 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, or that it negatively impacts our operations or stock price, including as a result of management distraction from our business or costs associated with transitioning to a standalone public company; risks associated with the agreements with Verint entered into in connection with the spin-off, including our reliance on the transition services agreement and our indemnification obligations to Verint; risks associated with market volatility in the price of our shares based on our performance, third-party publications or speculation, future sales or dispositions of our shares by significant shareholders or officers and directors, or factors and risks associated with actions of activist shareholders; risks associated with different corporate governance requirements applicable to Israeli companies and risks associated with being a foreign private issuer and an emerging growth company; and other risks detailed from time to time in filings that we make with the Securities and Exchange Commission (the “SEC”). We assume no obligation to revise or update any forward-looking statement, except as otherwise required by law. For a detailed discussion of these risk factors, see our annual report on Form 20-F for the fiscal year ended January 31, 2021, and our other SEC filings. 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)

 

 

 

Nine Months Ended

 

Three Months Ended

 

 

October 31,

 

October 31,

(in thousands except share and per share data)

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

 

Software

 

$

149,520

 

 

$

131,429

 

 

$

49,892

 

 

$

44,884

 

Software service

 

154,754

 

 

139,604

 

 

50,064

 

 

47,761

 

Professional service and other

 

44,811

 

 

48,405

 

 

18,404

 

 

20,334

 

Total revenue

 

349,085

 

 

319,438

 

 

118,360

 

 

112,979

 

Cost of revenue:

 

 

 

 

 

 

 

 

Software

 

20,780

 

 

22,527

 

 

6,920

 

 

6,676

 

Software service

 

35,365

 

 

33,569

 

 

10,053

 

 

11,441

 

Professional service and other

 

40,564

 

 

38,442

 

 

15,140

 

 

12,368

 

Amortization of acquired technology

 

512

 

 

718

 

 

171

 

 

226

 

Total cost of revenue

 

97,221

 

 

95,256

 

 

32,284

 

 

30,711

 

Gross profit

 

251,864

 

 

224,182

 

 

86,076

 

 

82,268

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development, net

 

105,069

 

 

92,177

 

 

35,527

 

 

31,921

 

Selling, general and administrative

 

139,019

 

 

113,230

 

 

43,059

 

 

40,208

 

Amortization of other acquired intangible assets

 

1,205

 

 

913

 

 

251

 

 

273

 

Total operating expenses

 

245,293

 

 

206,320

 

 

78,837

 

 

72,402

 

Operating income

 

6,571

 

 

17,862

 

 

7,239

 

 

9,866

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

Interest income

 

104

 

 

1,175

 

 

39

 

 

222

 

Interest expense

 

(18

)

 

(137

)

 

(8

)

 

(53

)

Other (expenses) income, net

 

(1,267

)

 

3,243

 

 

(850

)

 

3,108

 

Total other (expense) income, net

 

(1,181

)

 

4,281

 

 

(819

)

 

3,277

 

Income before provision for income taxes

 

5,390

 

 

22,143

 

 

6,420

 

 

13,143

 

Provision for income taxes

 

4,123

 

 

7,376

 

 

2,912

 

 

3,970

 

Net income

 

1,267

 

 

14,767

 

 

3,508

 

 

9,173

 

Net income attributable to noncontrolling interest

 

3,725

 

 

4,908

 

 

1,292

 

 

1,343

 

Net (loss) income attributable to Cognyte Software Ltd.

 

$

(2,458

)

 

$

9,859

 

 

$

2,216

 

 

$

7,830

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share attributable to Cognyte Software Ltd.:

Basic

 

$

(0.04

)

 

$

0.15

 

 

$

0.03

 

 

$

0.12

 

Diluted

 

$

(0.04

)

 

$

0.15

 

 

$

0.03

 

 

$

0.12

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

66,393

 

 

65,773

 

 

66,914

 

 

65,773

 

Diluted

 

66,393

 

 

65,773

 

 

67,372

 

 

65,773

 

 

 

 

 

 

 

 

 

 

Table 2

COGNYTE SOFTWARE LTD.

Condensed Consolidated Balance Sheets

 

 

 

October 31

 

January 31

 

 

2021

 

2021

(in thousands)

 

(Unaudited)

 

(Audited)

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

53,079

 

 

$

78,570

 

Restricted cash and cash equivalents, and restricted bank time deposits

 

10,716

 

 

27,042

 

Short-term investments

 

15,567

 

 

4,713

 

Accounts receivable, net of allowance for doubtful accounts of 4.1 million and 4.6 million, respectively

 

171,277

 

 

175,001

 

Contract assets, net

 

17,176

 

 

20,317

 

Inventories

 

15,142

 

 

14,542

 

Prepaid expenses and other current assets

 

30,578

 

 

30,051

 

Total current assets

 

313,535

 

 

350,236

 

Property and equipment, net

 

30,896

 

 

37,595

 

Operating lease right-of-use assets

 

27,598

 

 

32,126

 

Goodwill

 

158,113

 

 

158,183

 

Intangible assets, net

 

3,583

 

 

5,299

 

Deferred income taxes

 

6,909

 

 

3,303

 

Other assets

 

28,618

 

 

42,076

 

Total assets

 

$

569,252

 

 

$

628,818

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

34,786

 

 

$

41,552

 

Accrued expenses and other current liabilities

 

84,726

 

 

91,692

 

Contract liabilities

 

95,044

 

 

127,012

 

Current notes payable

 

 

 

38,772

 

Total current liabilities

 

214,556

 

 

299,028

 

Long-term contract liabilities

 

15,415

 

 

22,037

 

Deferred income taxes

 

3,215

 

 

4,049

 

Operating lease liabilities

 

19,369

 

 

24,135

 

Other liabilities

 

10,779

 

 

9,198

 

Total liabilities

 

263,334

 

 

358,447

 

Commitments and Contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock – $0 par value; authorized 300,000,000 shares. Issued 67,017,469 and 65,773,335 at October 31, 2021 and January 31, 2021, respectively; outstanding 67,009,960 and 65,773,335 shares at October 31, 2021 and January 31, 2021, respectively

 

 

 

 

Additional paid-in capital

 

309,992

 

 

 

Treasury stock, at cost 7,509 and 0 at October 31, 2021 and January 31, 2021, respectively

 

(181

)

 

 

Accumulated deficit

 

(2,458

)

 

 

Former net parent investment

 

 

 

273,006

 

Accumulated other comprehensive loss

 

(15,982

)

 

(15,505

)

 

 

 

 

 

Total Cognyte Software Ltd. stockholders’ equity

 

291,371

 

 

257,501

 

Noncontrolling interest

 

14,547

 

 

12,870

 

Total stockholders’ equity

 

305,918

 

 

270,371

 

Total liabilities and stockholders’ equity

 

$

569,252

 

 

$

628,818

 

Table 3

COGNYTE SOFTWARE LTD.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Nine Months Ended
October 31,

(in thousands)

 

2021

 

2020

Cash flows from operating activities:

 

 

 

 

Net income

 

$

1,267

 

 

$

14,767

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

16,404

 

 

15,397

 

Provision for doubtful accounts

 

1,149

 

 

1,651

 

Stock-based compensation, excluding cash-settled awards

 

26,484

 

 

20,528

 

Non-cash gains on derivative financial instruments, net

 

(142

)

 

(289

)

Other non-cash items, net

 

687

 

 

(4,444

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

1,968

 

 

(4,391

)

Contract assets

 

2,941

 

 

78

 

Inventories

 

(1,943

)

 

(1,566

)

Prepaid expenses and other assets

 

7,482

 

 

6,306

 

Accounts payable and accrued expenses

 

(11,342

)

 

(6,340

)

Contract liabilities

 

(38,268

)

 

(16,151

)

Other liabilities

 

1,756

 

 

2,246

 

Other, net

 

1,146

 

 

(615

)

Net cash provided by operating activities

 

$

9,589

 

 

$

27,177

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

(8,497

)

 

(10,678

)

Purchases of short-term investments

 

(48,530

)

 

(44,086

)

Maturities and sales of short-term investments

 

37,425

 

 

39,410

 

Settlements of derivative financial instruments not designated as hedges

 

(249

)

 

336

 

Cash paid for capitalized software development costs

 

(4,651

)

 

(2,824

)

Change in restricted bank time deposits, including long-term portion

 

5,632

 

 

10,428

 

Other investing activities

 

512

 

 

1,863

 

Net cash used in investing activities

 

$

(18,358

)

 

$

(5,551

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Net transfers to former parent

 

 

 

(11,006

)

Dividend paid to former parent

 

(35,000

)

 

 

Dividends paid to noncontrolling interest

 

(1,861

)

 

 

Payments of contingent consideration for business combinations (financing portion)

 

(2,738

)

 

(4,877

)

Other financing activities

 

(181

)

 

(333

)

Net cash used in financing activities

 

$

(39,780

)

 

$

(16,216

)

Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents

 

(285

)

 

(2,156

)

Net decrease (increase) in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

(48,834

)

 

3,254

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period

 

114,657

 

 

233,409

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period

 

$

65,823

 

 

$

236,663

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period:

 

 

 

 

Cash and cash equivalents

 

$

53,079

 

 

$

217,883

 

Restricted cash and cash equivalents included in restricted cash and cash equivalents, and restricted bank time deposits

 

10,502

 

 

15,459

 

Restricted cash and cash equivalents included in other assets

 

2,242

 

 

3,321

 

Total cash, cash equivalents, restricted cash, and restricted cash equivalents

 

$

65,823

 

 

$

236,663

 

Table 4

COGNYTE SOFTWARE LTD.

Reconciliation of GAAP to Non-GAAP Measures

(Unaudited)

 

 

 

Nine Months Ended
October 31,

 

Three Months Ended
October 31,

(in thousands, except per share data)

 

2021

 

2020

 

2021

 

2020

Revenue

Total GAAP revenue

 

$

349,085

 

 

$

319,438

 

 

$

118,360

 

 

$

112,979

 

Revenue adjustments

 

 

1,178

 

 

 

3,022

 

 

 

358

 

 

 

693

 

Total non-GAAP revenue

 

$

350,263

 

 

$

322,460

 

 

$

118,718

 

 

$

113,672

 

 

 

 

 

 

 

 

 

 

Gross profit and gross margin

 

 

 

 

 

 

 

 

GAAP gross profit

 

 

251,864

 

 

 

224,182

 

 

 

86,076

 

 

 

82,268

 

GAAP gross margin

 

 

72.1

%

 

 

70.2

%

 

 

72.7

%

 

 

72.8

%

Revenue adjustments

 

 

1,178

 

 

 

3,022

 

 

 

358

 

 

 

693

 

Amortization of acquired technology

 

 

512

 

 

 

718

 

 

 

171

 

 

 

226

 

Stock-based compensation expenses (1)

 

 

3,091

 

 

 

1,645

 

 

 

880

 

 

 

586

 

Restructuring expenses (benefit) (2)

 

 

1

 

 

 

(3

)

 

 

 

 

 

 

Separation expenses, net (2)

 

 

30

 

 

 

6

 

 

 

 

 

 

6

 

Non-GAAP gross profit

 

$

256,676

 

 

$

229,570

 

 

$

87,485

 

 

$

83,779

 

Non-GAAP gross margin

 

 

73.3

%

 

 

71.2

%

 

 

73.7

%

 

 

73.7

%

 

 

 

 

 

 

 

 

 

Research and development, net

 

 

 

 

 

 

 

 

GAAP research and development, net

 

 

105,069

 

 

 

92,177

 

 

 

35,527

 

 

 

31,921

 

As a percentage of GAAP revenue

 

 

30.1

%

 

 

28.9

%

 

 

30.0

%

 

 

28.3

%

Stock-based compensation expenses (1)

 

 

(6,014

)

 

 

(4,295

)

 

 

(2,032

)

 

 

(1,659

)

Acquisition expenses, net (2)

 

 

 

 

 

(193

)

 

 

 

 

 

 

Restructuring expenses (2)

 

 

(189

)

 

 

(356

)

 

 

 

 

 

(253

)

Separation expenses, net (2)

 

 

(67

)

 

 

 

 

 

 

 

 

 

Other adjustments

 

 

40

 

 

 

33

 

 

 

 

 

 

102

 

Non-GAAP research and development, net

 

$

98,839

 

 

$

87,366

 

 

$

33,495

 

 

$

30,111

 

As a percentage of non-GAAP revenue

 

 

28.2

%

 

 

27.1

%

 

 

28.2

%

 

 

26.5

%

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

 

GAAP selling, general and administrative expenses

 

 

139,019

 

 

 

113,230

 

 

 

43,059

 

 

 

40,208

 

As a percentage of GAAP revenue

 

 

39.8

%

 

 

35.4

%

 

 

36.4

%

 

 

35.6

%

Stock-based compensation expenses (1)

 

 

(17,343

)

 

 

(14,611

)

 

 

(4,895

)

 

 

(5,207

)

Acquisition (expenses) benefit, net (2)

 

 

(432

)

 

 

2,672

 

 

 

128

 

 

 

1,914

 

Restructuring expenses, net (2)

 

 

(429

)

 

 

(1,580

)

 

 

(85

)

 

 

(501

)

Separation expenses (2)

 

 

(10,987

)

 

 

(10,970

)

 

 

(219

)

 

 

(5,581

)

Other adjustments

 

 

(2,157

)

 

 

453

 

 

 

(2,122

)

 

 

53

 

Non-GAAP selling, general and administrative expenses

 

$

107,671

 

 

$

89,194

 

 

$

35,866

 

 

$

30,886

 

As a percentage of non-GAAP revenue

 

 

30.7

%

 

 

27.7

%

 

 

30.2

%

 

 

27.2

%

 

 

 

 

 

 

 

 

 

Operating income, operating margin and adjusted EBITDA

GAAP operating income

 

 

6,571

 

 

 

17,862

 

 

 

7,239

 

 

 

9,866

 

GAAP operating margin

 

 

1.9

%

 

 

5.6

%

 

 

6.1

%

 

 

8.7

%

Revenue adjustments

 

 

1,178

 

 

 

3,022

 

 

 

358

 

 

 

693

 

Amortization of acquired technology

 

 

512

 

 

 

718

 

 

 

171

 

 

 

226

 

Amortization of other acquired intangible assets

 

 

1,205

 

 

 

913

 

 

 

251

 

 

 

273

 

Stock-based compensation expenses (1)

 

 

26,448

 

 

 

20,551

 

 

 

7,807

 

 

 

7,452

 

Acquisition expenses (benefit), net (2)

 

 

432

 

 

 

(2,479

)

 

 

(128

)

 

 

(1,914

)

 

 

 

 

 

 

 

 

 

Contacts

Investor Relations Contact
Dean Ridlon

Cognyte Software Ltd.

IR@cognyte.com

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