Cognyte Software Ltd (NASDAQ:CGNT) stock rose 6.05% (As on April 12, 11:14:37 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 23. The company is entering Fiscal 2024 with the appropriate cost structure to drive revenue growth. The company is expecting to achieve positive quarterly EBITDA in the fourth quarter of Fiscal 2024 given the operating leverage as the company plans to grow the revenue throughout the year. The company is  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. The company believes that the combination of the cutting-edge technology, large customer base and significant backlog positions the company well for long-term growth.

CGNT in has reported the adjusted loss per share of 16 cents, missing the analysts’ estimates for the adjusted the fourth quarter of FY 23 loss per share of 12 cents. The company had reported the adjusted revenue of $73.6 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $67.87 million. It is up 16% sequentially from Q3 FYE23. Adjusted gross margin contracted 780 basis points Y/Y to 64.9%, and the adjusted gross profit nearly halved to $47.8 million. The company delivered adjusted Non-GAAP Gross Margin 64.9%, which is up 380bps from Q3 FYE23. Operating expense structure improved, which is $4.6 million lower than Q3 FYE23. The company generated positive cash flow from operations of $9.1 million. Total RPO is of $583 million, which is increase of $85 million since beginning of FYE23. 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.

Cognyte Software sees FY 2024 EPS of $-0.60-$0.00 versus the analyst consensus of $-1.29. Cognyte Software sees FY 2024 revenue of $300.00M versus the analyst consensus of $306.00M. This represents 6% year over year growth at mid-point adjusted for SIS divestiture and modest sequential revenue increases quarter to quarter. The company is targeting breakeven cash flow from operations and targeting to achieve quarterly positive EBITDA in Q4.

For the fiscal year 2024, revenue adjustments are expected to be approximately $0.1 million and amortization of intangible assets to be of approximately $0.3 million.