Shares of Cognyte Software (NASDAQ: CGNT) were up 25% as of 2 p.m. EDT Tuesday after the investigative analytics software company announced better-than-expected quarterly results and raised its outlook.
For Cogynte’s fiscal second quarter ended July 31, 2023, revenue declined 5% year over year to $77.1 million, translating to an adjusted (non-GAAP) net loss of $6.4 million, or $0.09 per share. Analysts, on average, were expecting an even wider loss of $0.21 per share on a more severe decline in revenue to $73.9 million.
Cognyte CEO Elad Sharon credited deals with both existing and new strategic clients “who recognize the strength of our innovative technology and the value it delivers.” Sharon added that recent AI developments coupled with Cognyte’s large customer base should leave the company well positioned for future growth.
To be sure, Cognyte followed by increasing its full-year outlook to call for revenue of $307 million, plus or minus 2%, the midpoint of which should result in an adjusted net loss of $0.33 per share. By contrast, the midpoint of Cognyte’s previous guidance called for an adjusted net loss of $0.53 per share on revenue of $303 million.
Cognyte also continues to target generating positive cash flow from operations for the full year.
In the end, Cognyte still has work to do in order to return to sustained, profitable growth. But this quarter was certainly a step in the right direction, and shares are responding in kind.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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