Cognyte Software Reports Q3 Earnings Below Street View; Predicts Sequential Revenue Growth In Q4 - Cognyte Software (NASDAQ:CGNT)

  • Cognyte Software Ltd CGNT reported a third-quarter FY23 adjusted sales decline of 40% year-on-year to $71.5 million, missing the consensus of $78.93 million.
  • Adjusted EPS loss of $(0.25) missed the consensus of $(0.20).
  • Adjusted gross margin contracted 1,030 basis points Y/Y to 63.4%, and the adjusted gross profit nearly halved to $45.3 million.
  • Total operating expenses decreased 11% to $70.2 million. The operating loss for the quarter was $(26) million versus an income of $7.2 million a year ago.
  • Adjusted EBITDA loss was $(15.4) million with an adjusted EBITDA loss margin of (21.5)%.
  • Cognyte held $61.2 million in cash and equivalents as of October 31, 2022. Net cash used in operating activities for the nine months totaled $(46.14) million.
  • Cognyte’s CEO Elad Sharon, said, “In the third quarter, we continued to win large orders and our backlog increased sequentially. At the same time, slow backlog conversion drove a sequential revenue decline. We expect to resume sequential revenue growth in the fourth quarter of fiscal year 2023, which we believe will be a turning point.”
  • Outlook: Cognyte sees Q4 adjusted sales of $65 million – $74 million versus the Street view of $84.31 million.
  • The company expects FY24 revenue growth of 5%.
  • The company targets breakeven cash flow from operations in the current quarter and for the full year ending January 31, 2024.
  • Price Action: CGNT shares are trading higher by 15.32% at $2.71 in premarket on the last check Tuesday.



Image and article originally from www.benzinga.com. Read the original article here.