Cognyte secures $10 million order from EMEA security agency

HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ: CGNT), a provider of investigative analytics software, has secured a $10 million follow-on order from a national security agency in the Europe-Middle East-Africa (EMEA) region. The agency, an existing client, aims to enhance its data analysis capabilities to address various security threats.

The investment will support the agency's efforts to manage and interpret increasing volumes of data to counteract terrorism, drug trafficking, and weapons smuggling. Cognyte's technology is designed to assist in expediting investigations and improving decision-making processes.

Efi Nuri, Cognyte's Chief Revenue Officer, commented on the deal, noting that it reflects the customer's satisfaction with the company's solutions. The order represents ongoing strategic investment in Cognyte's advanced technology, which is used by various government entities and organizations worldwide.

Cognyte Software Ltd. specializes in software that provides actionable intelligence, claiming to serve hundreds of customers by enhancing the efficiency and effectiveness of investigation procedures. The company's solutions are tailored to help identify and mitigate threats to national security and combat criminal and terrorist activities.

This announcement is based on a press release statement from Cognyte Software Ltd.

In other recent news, Cognyte, an investigative analytics solutions provider, has delivered strong Q1 results and raised its outlook for fiscal year 2025. The company reported a 13% increase in revenue, reaching $83 million, and a 17% rise in gross profit. Cognyte's gross margin for the quarter stood at 71.1%, with a gross profit of $58.8 million.

The positive adjusted EBITDA was reported at $5 million, with an increased full-year guidance of approximately $22 million. Cash from operations was robust at $21 million, and short-term remaining performance obligations grew to $312.4 million.

The company anticipates a revenue of approximately $344 million for fiscal year 2025, a 10% year-over-year growth. Cognyte continues to expand in North America, leveraging its AI technology for competitive advantage. These recent developments indicate the company's potential for sustainable growth and profitability improvement.

InvestingPro Insights

Cognyte Software Ltd. (NASDAQ: CGNT), with its recent $10 million follow-on order, demonstrates its ongoing commitment to providing top-tier investigative analytics software. As the company continues to expand its global footprint, let's delve into some essential metrics and InvestingPro Tips that could provide a deeper understanding of Cognyte's financial health and market performance.

InvestingPro Data shows that Cognyte holds a market capitalization of $535.92 million and has achieved a revenue growth of 8.02% over the last twelve months as of Q1 2025. Despite a challenging market, the company has managed a gross profit margin of 69.39%, reflecting its ability to maintain profitability in its core operations. Moreover, the stock has experienced a substantial 35.15% one-year price total return, signaling robust investor confidence in the firm's trajectory.

An InvestingPro Tip indicates that Cognyte holds more cash than debt on its balance sheet, which is a positive sign for investors looking for financial stability in their investments. Additionally, the fact that 2 analysts have revised their earnings upwards for the upcoming period suggests that there is a positive sentiment around the company's future earnings potential.

It is important to note, however, that analysts do not anticipate the company will be profitable this year, and Cognyte is not profitable over the last twelve months. Furthermore, the company does not pay a dividend, which could be a consideration for income-focused investors.

For readers interested in a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CGNT. For those who wish to access these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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