Here's Why Cognyte Software Shares Are Crashing Premarket

  • Cognyte Software Ltd CGNT reported a first-quarter FY23 non-GAAP revenue decline of 24.7% year-on-year to $86.7 million, missing the consensus of $112.6 million.
  • Segments: Software revenue declined by 51.8% Y/Y to $24.9 million. 
  • Software service revenue fell 9.7% Y/Y to $45.8 million. 
  • Professional service and other revenue increased 27.8% Y/Y to $15.7 million.
  • The non-GAAP gross margin contracted 1,180 bps to 60.8%.
  • The operating loss widened Y/Y from $(2.61) million to $(29.99) million.
  • Non-GAAP EPS loss of $(0.79) missed the consensus of $0.10.
  • Cognyte held $92.3 million in cash and equivalents and used $(8.7) million in operating cash flow.
  • "We are disappointed with our first-quarter results, which were impacted by slow pipeline conversion and supply chain. We have taken actions to improve our execution and cost structure in the current environment. At this time, we are unable to give guidance but continue to believe in the long-term opportunity," said Elad Sharon, CEO.
  • Price Action: CGNT shares traded lower by 24.61% at $4.84 in the premarket session on the last check Tuesday.

Posted In: Briefswhy it's movingEarningsNewsSmall CapMoversTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.