The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mike Cikos - Needham & Company, LLC, - Analyst
: Hey, guys. Congrats on the solid execution during a couple of quarters that have been strung together at this point and good to see for the Cognyte
story. So hats off on that. I did want to start on the revenues, and I know that you guys are discussing the significant number of new deals or I'm
sorry, a significant number of deals that were won during the quarter, both new and existing customers.
Can you help us think about what you guys are actually seeing out there in the market and where I'm going with this is the deals that are being
won from both new and existing customers like you obviously have good line of sight and visibility into these deals. With our customers demonstrating
increased confidence with respect to their budgets or is it potentially is there any movement in sales cycles or sales velocity increasing? If you could
talk through budget and sales velocity? those two would be would be helpful.
Question: Mike Cikos - Needham & Company, LLC, - Analyst
: Got it. And while we're on the top line conversation around those customers as well.
I know in your prepared remarks, you cited those two new customer wins in the United States specifically, right in good to hear that there were
competitive wins and you guys want to add on technology and the value proposition. Can you give us an update on progress in the US market?
How are we trending as far as building out pipeline and getting more of these deals?
Ideally across the finish line?
Question: Mike Cikos - Needham & Company, LLC, - Analyst
: It did.
And maybe one more question before I turn it over to my colleagues, but I know good to see the gross margin guidance here and creeping up by
another point for that 69% you're talking to for the full year and that the gross margin growth actually coming in at 20% plus on a year-over-year
basis. Right?
So I just wanted to get a sense. Is there any reason why from queue three, where you did 70.2% versus Q4 of why gross margins would decline? Is
there something we should keep in mind either from what you guys see in your backlog or maybe anything that's more seasonal in nature? Any
reason why that gross margin would be declining sequentially?
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DECEMBER 13, 2023 / 1:30PM, CGNT.OQ - Q3 2024 Cognyte Software Ltd Earnings Call
Question: Mike Cikos - Needham & Company, LLC, - Analyst
: Got it.
So thank you, David, and thank you Elad for the thoughtful responses. I'll turn it over to my colleagues.
Question: Peter Levine - Evercore ISI - Analyst
: Hey, guys. Thanks for taking my question here, and it's critical to you and the families back at home, but tell you maybe the first question, appreciate
the color on the quarter, but anything that you can kind of help guide us for fiscal '25 in terms of when or how do you think about an inflection in
the business? And then when you think about the top line, maybe just help us understand the visibility you have today, the confidence that you're
back to your commentary around seeing so reacceleration into next year? Just maybe help us frame that out for us as we think about our models.
Question: Peter Levine - Evercore ISI - Analyst
: And maybe share with us in terms of metrics for the business, your net retention, gross retention in the quarter, any changes that you've seen nine
months into your fiscal year, you can share with us any color in terms of metrics that get you more excited about the outlook?
Question: Peter Levine - Evercore ISI - Analyst
: Perfect. Thank you very much for my questions.
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