Cognyte Software Ltd. (CGNT) Outperforms in Q4 with $83.7 M in Revenue, -$0.23 EPS
Cognyte Software Ltd. (NASDAQ: CGNT), a global leader in investigative analytics software, recently unveiled its financial outcomes for the fourth quarter and the full fiscal year ending January 31, 2024. The company reported a strong close to a productive year, with significant revenue growth and margin expansion both in the quarter and across the year.
In Q4 FYE24, Cognyte achieved revenue of $83.691 million, surpassing the forecasted $80.11 million, and reported a gross margin of 68.5% on a GAAP basis and 69.0% on a non-GAAP basis. Despite facing a diluted EPS of -$0.04 on a GAAP basis and -$0.23 on a non-GAAP basis, the company’s performance indicates a robust market demand and an increasing appreciation for its differentiated technology.
Cognyte Software Reports $313.40 Million in Revenue for Fiscal Year 2024
The fiscal year 2024 (FYE24) further highlights Cognyte’s financial strengths, with a total revenue of $313.404 million on a GAAP basis and a slight adjustment to $313.516 million on a non-GAAP basis.
The gross margin for the year stood impressively at 68.7% (GAAP) and 69.2% (non-GAAP), showcasing the company’s ability to maintain profitability over an extended period. These results are a testament to Cognyte’s competitive advantages and its strategic focus on driving top-line growth and operating leverage amidst evolving market challenges.
Cognyte Software Out Performs Market Expectations in Q4
Cognyte’s performance in the fourth quarter and the fiscal year 2024 has not only met but exceeded market expectations. Analysts had predicted an EPS of -$0.27 and revenue of $80.11 million for the quarter, underscoring the company’s ability to surpass financial forecasts.
This overperformance indicates Cognyte’s resilient business model and adaptability to market dynamics. The company’s robust revenue figures and improved gross margins reflect its ongoing commitment to innovation and customer satisfaction and its strategic initiatives to optimize operational efficiency.
Cognyte Software Expects Revenue Growth to Aprx. $340 M in Fiscal Year 2025
Looking ahead, Cognyte is optimistic about its growth trajectory for the fiscal year 2025. The company projects a revenue growth to approximately $340 million, with a plus or minus 2% variation, and anticipates faster gross margin growth alongside a doubling of adjusted EBITDA to about $19 million.
This forward-looking guidance is supported by a projected $34 million in cash flow from operations, highlighting Cognyte’s focus on sustainable growth and profitability enhancement. The company’s financial model demonstrates leverage and a commitment to driving margin expansion, underscoring a strategic approach to capitalizing on market opportunities and strengthening its competitive positioning.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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