COGNYTE SOFTWARE Reports Second Quarter FY2024 Earnings Results on July 31, 2023
September 14, 2023
🌥️Earnings Overview
COGNYTE SOFTWARE ($NASDAQ:CGNT) reported their earnings results for the second quarter of FY2024 ending September 12 2023 on July 31 2023. Total revenue for the quarter was USD 77.0 million, a decrease of 5.0% compared to the same period in the prior year. Net income was reported at USD -9.4 million, an improvement from the previous year’s figure of -28.9 million.
Stock Price
The company saw soaring success with its stock opening at $5.3 and closing at $5.7, representing a 24.0% increase from the previous day’s closing price of $4.6. The key highlight of the earnings report was the strong performance of the company’s products and services. Among the areas that saw particular growth were their AI-powered analytics tools and cloud-based storage solutions. This was largely due to the company’s continued efforts to expand their customer base and provide innovative technology solutions to meet their customers’ needs.
Overall, COGNYTE SOFTWARE’s second quarter earnings report demonstrated the success of their strategy to provide advanced technology solutions to a wide range of customers. The company’s strong performance is expected to continue as they continue to build upon their market share and expand into new markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cognyte Software. More…
| Total Revenues | Net Income | Net Margin |
| 294.83 | -73.07 | -26.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cognyte Software. More…
| Operations | Investing | Financing |
| 15.75 | 21.99 | -22.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cognyte Software. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 433.56 | 230.94 | 2.63 |
Key Ratios Snapshot
Some of the financial key ratios for Cognyte Software are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -12.7% | -16.3% | -17.1% |
| FCF Margin | ROE | ROA |
| 2.0% | -17.0% | -7.3% |
Analysis
At GoodWhale, we conducted an analysis of the fundamentals of COGNYTE SOFTWARE, and our findings are presented below. With regard to its cashflows and debt, the Star Chart shows that COGNYTE SOFTWARE has a high health score of 8/10, indicating that it is capable of paying off debt and funding future operations. In terms of profitability, assets, dividends, and growth, COGNYTE SOFTWARE is strong in profitability, medium in assets, and weak in dividends and growth. We have classified COGNYTE SOFTWARE as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Investors who are looking to invest in a company that is capable of sustaining operations over time and has a good return on investments may be interested in COGNYTE SOFTWARE. More…
Peers
It offers a comprehensive suite of products and services that help organizations to make sense of their data and to find insights that can be used to improve their business.
However, Cognyte is not the only company in this space. There are many other companies that offer similar solutions, including Beijing VRV Software Corp Ltd, SecureWorks Corp, and CYREN Ltd. While each of these companies has its own strengths and weaknesses, they all compete with Cognyte for market share.
– Beijing VRV Software Corp Ltd ($SZSE:300352)
Beijing VRV Software Corp Ltd is a Chinese software company with a market cap of 6.51B as of 2022. The company has a Return on Equity of -22.36%. The company develops and sells software products, including operating systems, middleware, and application software. The company also provides software development services.
– SecureWorks Corp ($NASDAQ:SCWX)
SecureWorks Corp is a cybersecurity company that provides a range of security solutions to businesses of all sizes. The company has a market cap of $684.01 million and a return on equity of -9.05%. SecureWorks Corp offers a variety of security solutions, including endpoint security, network security, and data security. The company also provides managed security services, which help businesses to monitor and manage their security posture.
– CYREN Ltd ($NASDAQ:CYRN)
CYREN Ltd is a provider of cybersecurity solutions. The company has a market cap of 8.89M as of 2022 and a return on equity of -120.94%. The company’s products and services include endpoint security, email security, web security, and cloud security. CYREN Ltd is headquartered in Herzliya, Israel.
Summary
COGNYTE SOFTWARE has reported their revenue and earnings for the second quarter of FY 2024, ending September 12 2023. Total revenue was USD 77.0 million, down 5.0% year-over-year, while net income was -9.4 million, improving from -28.9 million from the same period in the previous year. On July 31 2023, the stock price moved up following the news.
Investors may be interested in the company as they have managed to reduce their losses year-over-year despite a decline in revenue. COGNYTE has the potential to recover and turn a profit given their cost-cutting measures and investors should consider this stock for their portfolio.
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