Cognyte Software Ltd (NASDAQ:CGNT), a global leader in investigative analytics software, stock fell 5.12% (As on June 19, 7:29:16 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 25. The company has reported a strong start in the first quarter of fiscal year 2025, showcasing revenue growth, margin expansion, and a raised guidance for the year. The company ended Q1 with $107 million in cash and no debt. For the first quarter, Cash from Operations was of $21.5 million, Non-GAAP Gross Profit of $58.8 million, which represents approximately 17% year-over-year growth and Recurring revenue of $45.8M or 55% of total revenue.
CGNT in the first quarter of FY 25 has reported the adjusted earnings per share of $-0.04, beating the analysts’ estimates for the adjusted earnings per share of $-0.06. The company had reported the adjusted revenue growth of 13 percent to $82.7 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $81.7 million.
Cognyte Software sees FY 2024 EPS to be in the range of $-0.07-$0.00 versus the analyst consensus of $-0.12. Cognyte Software sees FY 2024 revenue to be in the range of $344.00M versus the analyst consensus of $339.00M, approximately 10% year-over-year growth at midpoint. FY 25 Adjusted EBITDA is projected to be around $22 million, and cash from operations is expected to be about $37 million.
On the other hand, CGNT has released the results of a survey on data analytics usage trends within law enforcement agencies (LEAs) worldwide, including federal and state police, financial intelligence units (FIUs), border police and others. LEAs have a common goal to successfully address criminal threats, save lives and prevent financial damage by improving the speed, accuracy and success of investigations. As per the 2024 Data Analytics for Law Enforcement Survey, Artificial intelligence (AI) is becoming crucial for LEA investigations, Unstructured data is one of the top technological challenges for LEA investigations, Most LEAs are still using multiple, disconnected solutions to analyze their data, Most LEAs plan to modernize their existing data analytics solution, and the average LEA investment in data analytics is expected to grow substantially in the next few years.
In addition, the company has received an approximately $5 million additional order from a national intelligence organization in the Europe-Middle East-Africa (EMEA) region, for its solution that helps identify and prevent threats during operations.