- Cognyte Software Ltd CGNT shares gained in Tuesday's premarket session as its fourth-quarter results surpassed Street expectations.
- CGNT reported a fourth-quarter FY23 adjusted sales decline of 41.3% year-on-year to $73.6 million, beating the consensus of $66.8 million.
- Adjusted EPS loss of $(0.16) beat the consensus loss of $(0.18).
- Adjusted gross margin contracted 780 basis points Y/Y to 64.9%, and the adjusted gross profit nearly halved to $47.8 million.
- Adjusted operating margin loss was (11.9)% versus 12.5% a year ago.
- Adjusted EBITDA margin loss was (6.5)%, down from 16.2% a year ago.
- Cognyte held $56.4 million in cash and equivalents.
- "We continued to win large deals and increase backlog (remaining performance obligations), driving improved visibility and enabling us to raise our revenue guidance for Fiscal 2024.," said Elad Sharon, Cognyte's chief executive officer.
- "Throughout Fiscal 2023, we improved our cost structure in response to market dynamics. We are entering Fiscal 2024 with the appropriate cost structure to drive revenue growth. We are expecting to achieve positive quarterly EBITDA in the fourth quarter of Fiscal 2024, given our operating leverage as we grow our revenue throughout the year," said David Abadi, Cognyte's chief financial officer.
- Outlook: Cognyte boosts FY24 adjusted sales of $294 million - $306 million (consensus $287.5 million), up by 6% Y/Y versus prior growth expectations of 5% Y/Y.
- The company expects an FY24 adjusted EPS loss of $(0.60) above the consensus loss of $(0.69).
- Price Action: CGNT shares are trading higher by 9.97% at $3.75 in premarket on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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