Cognyte Raises FY24 Forecast, Expects $11.5M-$12.5M In Stock-based Compensation Following Strong Q3 Performance

Cognyte Software Ltd. CGNT reported a third-quarter FY24 adjusted sales increase of 11.4% year-on-year to $79.39 million, beating the consensus of $77.63 million.

Adjusted EPS of $0.34 beats the consensus of $.01.

Gross margin expanded 680 basis points Y/Y to 70.2%, and the adjusted gross profit jumped 23% to $55.74 million.

Adjusted EBITDA margin was 5.8%, compared with (21.5)% loss a year ago.

Cognyte held $73.7 million in cash and equivalents while exiting the quarter. 

"For the full year, we expect revenue to grow by approximately 10 percent, and gross profit to grow faster, at more than 20 percent year over year on an SIS Adjusted non-GAAP basis," said David Abadi, Cognyte's chief financial officer.

"We now expect adjusted EBITDA for the year to be about $8 million," Abadi added.

Outlook: Cognyte expects FY24 revenue of $311 million at the midpoint with a range of +/-1% compared with the $306.74 million estimate (prior outlook: $307 million at the midpoint with a range of +/- 2%).

The company projects a loss of $(0.24) at the midpoint of the revenue outlook compared with a $(0.33) estimate (prior outlook: $(0.33)).

Stock-based compensation is expected to be between approximately $11.5 and $12.5 million.

Price Action: CGNT shares are trading lower by 4.35% at $5.50 on the last check Wednesday.