Here's Why Cognyte Software Shares Are Crashing Premarket - Cognyte Software (NASDAQ:CGNT)

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.