• EPS loss of $(0.23) misses the consensus loss of $(0.22).
• Gross margin contracted 760 basis points Y/Y to 68.4%, and the adjusted gross profit fell 4.8% to $50.19 million.
• Operating margin loss was (7.5)% versus (25.5)% loss a year ago.
• Adjusted EBITDA margin loss was (3.1)%, narrower than (21)% loss a year ago.
• Cognyte held $44.50 million in cash and equivalents. 

"We now expect gross profit to grow faster than revenue, at more than ten percent year over year on an SIS Adjusted non-GAAP basis," said Cognyte CEO Elad Sharon. "Looking beyond this year, recent innovations in Artificial Intelligence present opportunities to increase the value of our investigative analytics solutions for our customers and expand our business over time."

The Israel-based company expects loss of $(0.53) (prior guidance: $(0.60) loss). The analyst consensus stands at $(0.72).

Price Action: CGNT shares are trading higher by 5.92% at $5.90 in premarket on the last check Thursday.