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1 Q3 FYE25 Results NASDAQ: CGNT December 11, 2024
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2 Disclaimers Forward Looking Statements This presentation contains "forward-looking statements," including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Cognyte Software Ltd. These forward-looking statements are not guarantees of future performance and they 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 to differ materially from those expressed in or implied by the forward-looking statements. The forward-looking statements contained in this presentation are made as of the date of this presentation and, except as required by law, Cognyte assumes no obligation to update or revise them, or to provide reasons why actual results may differ. For a more detailed discussion of how these and other risks, uncertainties, and assumptions could cause Cognyte’s actual results to differ materially from those indicated in its forward-looking statements, see Cognyte’s filings with the Securities and Exchange Commission. Non-GAAP Financial Measures This presentation includes financial measures which are not prepared in accordance with generally accepted accounting principles (“GAAP”), including certain constant currency measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the appendices to this presentation as well as the GAAP to non-GAAP reconciliation found under the Investor Relations tab on Cognyte’s website Cognyte.com.
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3 Strong Q3 Execution + Revenue of $89 million, 12.1% year-over-year growth + $6.6 million of Adjusted EBITDA + Market remains robust + Solutions delivering significant value to customers, driving large follow-on orders Revenue GAAP Operating loss for Q3FYE25 was $2.2M, Q2FYE25 was $1.4M, Q1FYE25 was $2.3M, Q4FYE24 was $2.9M, and Q3FYE24 was $2.8M. GAAP Net (loss) income for Q3FYE25 was $(2.6)M, Q2FYE25 was $(0.9)M, Q1FYE25 was $(3.6)M, Q4FYE24 was $(1.9)M, and Q3FYE24 was $6.2M. 68.4% 70.2% $79.4 $83.7 $82.7 $84.4 $89.0 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 Adjusted EBITDA $4.6 $4.3 $5.0 $8.3 $6.6 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25
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4 Cognyte Intelligence Summit Global Summit connecting customers worldwide 300 Attendees representing 70 countries Key discussions around tackling the evolving threat landscape: Criminals leveraging advanced technology to obscure operations Empowering solutions showcasing AI-driven advanced analytics capabilities
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5 Raising FYE25 Outlook + Revenue of $349 million with a range of +/- 1% − Approximately 11% year-over-year growth at midpoint + Adjusted EBITDA of $26 million at the midpoint of the revenue range − Leverage in our business model − $17 million year-over-year growth + Positioned for continuous profitable growth Revenue* $283.0 $313.5 $349.0 FYE23 FYE24 FYE25 Outlook -$55.9 $9.0 $26.0 FYE23 FYE24 FYE25 Adjusted EBITDA Outlook *FYE23 SIS Adjusted Non-GAAP GAAP Revenue FYE24 was $313.4M, FYE23 was $312.1M. GAAP Operating loss for FYE24 was $18.1M, FYE23 was $103.3M. GAAP Net loss for FYE24 was $11.6M, FYE23 was $110M.
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6 Confidential and proprietary information of Cognyte. 6 Financial Summary
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7 Q3 FYE25 Highlights + Revenue of $89 million − Approximately 12% year-over-year growth + Recurring Revenue of $46.9M or 53% of total revenue + Non-GAAP Gross Profit of $62.4 million − Approximately 12% year-over-year growth + Non-GAAP Operating Income and Adjusted EBITDA grew significantly faster than revenue − Non-GAAP Operating Income of $3.4 million − Adjusted EBITDA of $6.6 million + Non-GAAP EPS of $0.02 + Strong Balance Sheet $73.7 $83.1 $107.1 $99.6 $107.3 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 Revenue Cash $79.4 $83.7 $82.7 $84.4 $89.0 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 GAAP Gross profit for Q3FYE25 was $61.9M GAAP Operating loss for Q3FYE25 was $2.2M GAAP Net loss for Q3FYE25 was $2.6M GAAP EPS for Q3FYE25 was ($0.05)
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8 Q3 FYE25 KPIs Billings is defined as revenue plus the change in contract liabilities, contract assets and unbilled balances. GAAP Gross profit for Q3FYE25 was $61.9M, Q2FYE25 was $59.6M, Q1FYE25 was $58.4M, Q4FYE24 was $57.4M, and Q3FYE24 was $55.3M. GAAP Operating loss for Q3FYE25 was $2.2M, Q2FYE25 was $1.4M, Q1FYE25 was $2.3M, Q4FYE24 was $2.9M, and Q3FYE24 was $2.8M. GAAP Net (loss) income for Q3FYE25 was $(2.6)M, Q2FYE25 was $(0.9)M, Q1FYE25 was $(3.6)M, Q4FYE24 was $(1.9)M, and Q3FYE24 was $6.2M. $290.9 $302.5 $312.4 $320.6 $325.9 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 Short-Term RPO $55.7 $57.8 $58.8 $60.2 $62.4 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 Non-GAAP Gross Profit $4.6 $4.3 $5.0 $8.3 $6.6 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 Adjusted EBITDA Billings $81.0 $97.8 $78.2 $77.8 $104.7 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25
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9 Revenue Streams + Three revenue streams: − Software − Software services − Professional services and other + Manage business by focusing on total software revenue − Total software revenue equals software plus software services + Professional services helps generate follow-on revenue
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10 Raising FYE25 Outlook + Revenue of $349 million with a range of +/- 1% − Approximately 11% year-over-year growth at midpoint − Total software revenue ~87% of total revenue + Adjusted EBITDA of $26 million at the midpoint of the revenue range − Leverage in our business model − $17 million year-over-year growth + Positioned for continuous profitable growth
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11 $79.4 $83.7 $82.7 $84.4 $89.0 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 $55.7 $57.8 $58.8 $60.2 $62.4 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 $4.6 $4.3 $5.0 $8.3 $6.6 Q3 FYE24 Q4 FYE24 Q1 FYE25 Q2 FYE25 Q3 FYE25 Strong Execution Leverage in the model Technology leadership Growing & winning customers Non-GAAP Gross Profit Growing Faster than Revenue Revenue Growth Adjusted EBITDA GAAP Gross profit for Q3FYE25 was $61.9M, Q2FYE25 was $59.6M, Q1FYE25 was $58.4M, Q4FYE24 was $57.4M, and Q3FYE24 was $55.3M. GAAP Operating loss for Q3FYE25 was $2.2M, Q2FYE25 was $1.4M, Q1FYE25 was $2.3M, Q4FYE24 was $2.9M, and Q3FYE24 was $2.8M. GAAP Net (loss) income for Q3FYE25 was $(2.6)M, Q2FYE25 was $(0.9)M, Q1FYE25 was $(3.6)M, Q4FYE24 was $(1.9)M, and Q3FYE24 was $6.2M.
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12 Thank you cognyte.com
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13 Confidential and proprietary information of Cognyte. 13 Appendix
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14 Summary metrics
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15 Revenue metrics
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16 Gross profit
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17 Operating expenses
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18 Operating and adjusted EBITDA margins
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19 Other income, tax and new income
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20 Tax and net income – FYE24 revised (footnote 2)
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21 EPS
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22 EPS – FYE24 Revised (footnote 2)
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23 Footnotes
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24 Supplemental information and non-GAAP measures
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25 Supplemental information and non-GAAP measures
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26 Supplemental information and non-GAAP measures
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27 Supplemental information and non-GAAP measures