Strong Q2 Results Drive Cognyte to Raise 2025 Outlook

Cognyte Reports Strong Financial Results for Q2 Fiscal 2025

Cognyte Software Ltd. (NASDAQ: CGNT), a global leader in investigative analytics software, announced strong financial results for the second quarter and first half of fiscal 2025, which ended on July 31, 2024. The Company continues to see growth driven by its AI-powered solutions, which help organizations address evolving security threats. These results highlight Cognyte's successful execution of its business strategy, which is focused on empowering customers to enhance their investigative capabilities and improve decision-making in a complex threat landscape.

Revenue Growth and Improved Profitability

Cognyte reported more than 11% revenue growth in the first half of fiscal 2025, reflecting strong market demand and effective operations. The Company delivered $13.3 million in Adjusted EBITDA, marking a significant improvement compared to the near-break-even results from the same period last year. CFO David Abadi attributed the growth to increased demand for the Company’s advanced AI-driven solutions, which continue to provide value to customers by addressing critical security challenges. The strong execution of its strategic initiatives and favorable market conditions have led to increased orders and new customer acquisitions.

Fiscal Year 2025 Outlook

Due to the solid performance in the first half of the year, Cognyte has raised its financial guidance for the full fiscal year ending January 31, 2025. The Company now expects to generate $347 million in revenue, representing approximately 11% year-over-year growth. Adjusted EBITDA is projected to be around $25 million, indicating continued improvement in profitability. Despite the positive outlook, the Company anticipates a diluted EPS loss of $0.03 at the midpoint of its revenue range.

Cognyte's non-GAAP outlook excludes items such as stock-based compensation, which is estimated to range between $17.0 million and $19.0 million, and amortization of intangible assets, expected to be approximately $0.3 million. The Company also noted that its forecast does not account for potential future business acquisitions or restructuring expenses.

Mission-Driven Growth

CEO Elad Sharon emphasized the importance of Cognyte’s mission to make the world safer through its investigative analytics solutions. These AI-powered tools enable customers to confront evolving threats, streamline investigations, and make faster, more informed decisions. As a result, Cognyte has secured follow-on orders and expanded its customer base, further positioning itself as a leader in the investigative analytics space.

Q2 Conference Call

Cognyte will hold a conference call on September 10, 2024, at 8:30 a.m. ET to discuss the financial results for the quarter. The call will include a real-time webcast, which can be accessed through the Investor Relations section of Cognyte’s website. Those interested in participating in the Q&A session must register in advance to receive the dial-in details. A replay of the webcast will also be available on the Company’s website following the event.

About Cognyte

Cognyte Software Ltd. is a leading provider of investigative analytics software that helps government and private organizations address security challenges and threats. Its solutions, powered by AI and advanced analytics, enable customers to conduct more effective investigations and make faster decisions. The Company’s open-interface software platform is designed to help organizations identify, neutralize, and prevent various forms of criminal and terror-related activities. Cognyte’s technology is trusted by hundreds of customers around the world to protect national security and ensure public safety.

Non-GAAP Financial Measures

The press release includes references to non-GAAP financial measures, which provide additional insight into Cognyte’s financial performance. These measures exclude certain items, such as stock-based compensation and amortization of intangible assets, to give a clearer picture of the Company’s operational performance. Investors can find a detailed explanation of these non-GAAP measures and their reconciliations to GAAP measures in the tables provided at the end of the press release.

Cognyte’s management believes these non-GAAP financial measures offer useful insights for evaluating the Company’s performance and comparing its results with those of other software companies. These measures also help management make decisions regarding resource allocation, budgeting, and compensation.

Conclusion

With a solid performance in the first half of fiscal 2025 and a strong outlook for the remainder of the year, Cognyte is well-positioned to continue its growth. The Company’s AI-driven solutions are gaining traction in the market, driving revenue growth, profitability, and customer expansion. As Cognyte continues to innovate and deliver valuable security solutions, it remains committed to its mission of making the world a safer place.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.