Q2 2025 Cognyte Software Ltd Earnings Call Transcript
Key Points
- Cognyte Software Ltd (CGNT) reported double-digit revenue growth, with Q2 revenue of $84 million, up approximately 10% year-over-year.
- Non-GAAP gross profit increased by 13% year-over-year, demonstrating effective margin expansion.
- The company generated $8 million of positive adjusted EBITDA in Q2, more than three times the amount generated in the same quarter last year.
- Cognyte Software Ltd (CGNT) secured three substantial follow-on orders, each valued at over $10 million, from national security and law enforcement agencies.
- The company has increased its full-year revenue outlook to approximately $347 million, representing about 11% year-over-year growth at the midpoint.
- Software and software service revenue declined 5% sequentially, marking the first decrease since Q3 of fiscal '23.
- Despite the overall revenue growth, the company still faces challenges in converting more customers to its subscription model.
- The professional services segment showed strong performance, but its sustainability remains uncertain.
- The company continues to operate in a highly complex and evolving threat landscape, which requires constant innovation and adaptation.
- Cognyte Software Ltd (CGNT) reported a non-GAAP EPS loss of $0.03 at the midpoint of the revenue range for the full year.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Cognyte second-quarter fiscal year 2025 earnings conference call. (Operator Instructions) Please note that today's conference may be recorded. I would now like to hand the conference over to your speaker host, Dean Ridlon, Head of Investor Relations. Please go ahead.
Thank you, operator. Hello, everyone. I'm Dean Ridlon, Cognyte's Head of Investor Relations. Thank you for joining us today. I'm here with Elad Sharon, Cognyte's CEO; and David Abadi, Cognyte's CFO. Before getting started, I would like to mention that accompanying our call today is a presentation. If you'd like to view these slides in real-time during the call, please visit the Investors section of our website at cognyte.com, click on Upcoming Events, then the webcast link for today's conference call.
I would also like to draw your attention to the fact that certain matters discussed on this call may contain forward-looking statements within the meaning
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