Cognyte Software Ltd Q3 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Peter Marc Levine - Evercore ISI Institutional Equities, Research Division - Analyst : This is Peter Levine in for Kirk. So to piggyback off the last question, considering the nature of the data that you deal with, when you talked about travel restrictions, I get the implementation, kind of you see a slowdown. But are you also seeing a slowdown perhaps in new pipeline build because your reps can't go on site? Can you maybe kind of just decipher what that looks like in terms of reps getting on site versus implementation delays?

Question: Peter Marc Levine - Evercore ISI Institutional Equities, Research Division - Analyst : Fair enough. And then for -- I know you haven't guided for fiscal '23 yet, I'm sure we'll get that next quarter. But can you give us maybe just a brief insight into kind of what you're thinking based on what you see today and how that's going to impact pipelines, deal flow for next year?

Question: Michael Louie DiPalma - William Blair & Company L.L.C., Research Division - Analyst : What percentage of revenue during the quarter was recurring? And separately, what percentage of revenue in general overall is through those hardware appliance that you referenced the component shortages to?

Question: Michael Louie DiPalma - William Blair & Company L.L.C., Research Division - Analyst : Great. And related to the recurring revenue, I believe it has been a goal for the company to increase the percentage of recurring revenue. But I think over the past 9 months, the level has flatlined at that 50%. Is that true? Or has there been any increase over the first 9 months of the year in the recurring revenue percentage?

Question: Michael Louie DiPalma - William Blair & Company L.L.C., Research Division - Analyst : Okay. And my last question, for the $10 million in guidance reduction, do you have specific visibility in terms of when you will recognize those deals that have been pushed back? Or is it your expectation that, that $10 million is gone forever and those deals were canceled? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 21, 2021 / 1:30PM, CGNT.OQ - Q3 2021 Cognyte Software Ltd Earnings Call

Question: Michael Louie DiPalma - William Blair & Company L.L.C., Research Division - Analyst : Okay. So did you say that you don't have visibility in terms of when you will receive the proper components to deliver these -- that $10 million in revenue?

Question: Michael Louie DiPalma - William Blair & Company L.L.C., Research Division - Analyst : But ultimately, you said that it's all timing-related, right? Like there haven't been any cancellations?