Latest news with #EladSharon
Business Wire
21-05-2025
- Business
- Business Wire
Cognyte Acquires Cyber Threat Intelligence Vendor GroupSense
HERZLIYA, Israel--(BUSINESS WIRE)-- Cognyte Software Ltd. (NASDAQ: CGNT) ('Cognyte'), a global leader in software-driven technology for investigative analytics, today announced the acquisition of GroupSense, Inc. ('GroupSense'), a digital risk protection services company. The acquisition will help to expand Cognyte's customer base and growth potential within the U.S. market, a pillar in the company's overall growth strategy. 'This acquisition reflects our continued focus on leading the investigative analytics market and expanding our footprint in North America,' said Elad Sharon, CEO of Cognyte. Share Cognyte has acquired GroupSense for approximately $4 million plus an earnout of up to approximately $5 million subject to GroupSense meeting defined targets post-closing. Established in 2014, GroupSense helps customers protect digital assets and data from external cyber threats by using a combination of automated and human reconnaissance for cyber investigations to deliver customer-specific intelligence. Operating in the U.S., GroupSense offers solutions to customers that span state and local government agencies and a variety of enterprises. As part of the overall growth strategy, GroupSense customers will have the opportunity to quickly adopt Cognyte's advanced cyber threat intelligence platform to better protect their brand integrity and operational security in an increasingly hostile online environment. 'This acquisition reflects our continued focus on leading the investigative analytics market and expanding our footprint in North America,' said Elad Sharon, CEO of Cognyte. 'The addition of GroupSense allows us to extend our market presence and deliver added value to their customers through our AI-driven technology, supporting their efforts to protect their brand and assets more effectively.' 'Joining Cognyte, a global leader in investigative analytics, with advanced technologies and strong R&D capabilities, is a major milestone for both our company and our customers," said GroupSense CEO Kurtis Minder. "This acquisition enables us to grow our offering, streamline our operations and provide customers with solutions to help protect their digital assets and defend against an ever-evolving threat landscape.' About Cognyte Cognyte is a leading software-driven technology company, focused on solutions for data processing and investigative analytics that allow customers to generate Actionable Intelligence for a Safer World™. Cognyte's solutions empower law enforcement, national security, national and military intelligence agencies, and other organizations to navigate an increasingly complex threat landscape. With offerings that leverage state-of-the-art technology, including Artificial Intelligence (AI), big data analytics and advanced machine learning, Cognyte helps customers make smarter, faster decisions with their data for the best possible outcomes. Hundreds of customers rely on Cognyte's investigative analytics solutions to uncover critical insights from past events and anticipate emerging threats. By harnessing AI-driven intelligence, Cognyte accelerates investigations with exceptional speed and accuracy while enabling customers to better investigate, anticipate, predict and mitigate risks with greater precision. Learn more at Cautionary Statement Regarding Forward-Looking Statements Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are identified by use of the words 'anticipates,' 'believes,' 'estimates,' 'expects,' 'intends,' 'plans,' 'predicts,' 'projects,' 'should,' 'views,' and similar expressions. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to the projected growth of Cognyte's business, and Cognyte's ability to achieve its financial and business plans, goals and objectives and drive shareholder value, including with respect to its ability to successfully implement its strategy, and other risk factors discussed from time to time in Cognyte's filings with the SEC, including those factors discussed under the caption 'Risk Factors' in its most recent annual report on Form 20-F, filed with the Securities and Exchange Commission ('SEC') on April 2, 2025, and in subsequent reports filed with or furnished to the SEC. Cognyte assumes no obligation and does not intend to update these forward-looking statements, except as required by law, to reflect events or circumstances occurring after today's date.
Business Wire
15-05-2025
- Business
- Business Wire
Cognyte to Participate in 53rd Annual TD Cowen Technology, Media and Telecom Conference
HERZLIYA, Israel--(BUSINESS WIRE)--Cognyte Software Ltd. (NASDAQ: CGNT) ('Cognyte'), a global leader in software-driven technology for investigative analytics, today announced that Elad Sharon, Cognyte's Chief Executive Officer, and David Abadi, Cognyte's Chief Financial Officer, will hold a fireside chat at the 53rd Annual TD Cowen Technology, Media & Telecom Conference on Wednesday, May 28, 2025, at 10:15 am ET. An online, real-time webcast and replay of the discussion will be available on our website at About Cognyte Cognyte is a leading software-driven technology company, focused on solutions for data processing and investigative analytics that allow customers to generate Actionable Intelligence for a Safer World™. Cognyte's solutions empower law enforcement, national security, national and military intelligence agencies, and other organizations to navigate an increasingly complex threat landscape. With offerings that leverage state-of-the-art technology, including Artificial Intelligence (AI), big data analytics and advanced machine learning, Cognyte helps customers make smarter, faster decisions with their data for the best possible outcomes. Hundreds of customers rely on Cognyte's investigative analytics solutions to uncover critical insights from past events and anticipate emerging threats. By harnessing AI-driven intelligence, Cognyte accelerates investigations with exceptional speed and accuracy while enabling customers to better investigate, anticipate, predict and mitigate risks with greater precision. Learn more at
Yahoo
06-05-2025
- Business
- Yahoo
Cognyte to Participate in 20th Annual Needham Technology & Media Conference
HERZLIYA, Israel, May 06, 2025--(BUSINESS WIRE)--Cognyte Software Ltd. (NASDAQ: CGNT) ("Cognyte"), a global leader in software-driven technology for investigative analytics, today announced that Elad Sharon, Cognyte's Chief Executive Officer, and David Abadi, Cognyte's Chief Financial Officer, will hold a fireside chat at the 20th Annual Needham Technology & Media Conference on Monday, May 12, 2025, at 8:45 am ET. An online, real-time webcast and replay of the discussion will be available on our website at About Cognyte Software Ltd. Cognyte is a leading software-driven technology company, focused on solutions for data processing and investigative analytics that allow customers to generate Actionable Intelligence for a Safer World™. Cognyte's solutions empower law enforcement, national security, national and military intelligence agencies, and other organizations to navigate an increasingly complex threat landscape. With offerings that leverage state-of-the-art technology, including Artificial Intelligence (AI), big data analytics and advanced machine learning, Cognyte helps customers make smarter, faster decisions with their data for the best possible outcomes. Hundreds of customers rely on Cognyte's investigative analytics solutions to uncover critical insights from past events and anticipate emerging threats. By harnessing AI-driven intelligence, Cognyte accelerates investigations with exceptional speed and accuracy while enabling customers to better investigate, anticipate, predict and mitigate risks with greater precision. Learn more at View source version on Contacts Investor Relations Dean Ridlon Cognyte Software Ltd. IR@
Yahoo
03-04-2025
- Business
- Yahoo
Cognyte Software Ltd (CGNT) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Q4 Revenue: $94.5 million, a 12.9% year-over-year increase. Full-Year Revenue: $350.6 million, approximately 12% year-over-year growth. Non-GAAP Gross Profit: $67.6 million for Q4, a 17% year-over-year increase. Adjusted EBITDA: $9.3 million for Q4, a 140% year-over-year increase. Cash Flow from Operations: $18.7 million for Q4 and $47 million for the full year. Non-GAAP Operating Income: $6 million for Q4, over 500% increase year-over-year. Non-GAAP Gross Margin: 71.5% for Q4, an improvement of 150 basis points year-over-year. Recurring Revenue: $47.3 million for Q4, representing 50% of total revenue. Cash Position: $113.3 million at year-end, with no debt. Fiscal '26 Revenue Guidance: Approximately $392 million, representing about 12% year-over-year growth. Fiscal '26 Adjusted EBITDA Guidance: Approximately $43 million, a 45% year-over-year growth. Warning! GuruFocus has detected 5 Warning Sign with CGNT. Release Date: April 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cognyte Software Ltd (NASDAQ:CGNT) reported double-digit revenue growth of 13% year over year for Q4, reaching $94.5 million. The company achieved a significant year-over-year increase in profitability, with non-GAAP gross profit rising by 17%. Adjusted EBITDA for the quarter grew by 114% year over year, amounting to over $9 million. Cognyte Software Ltd (NASDAQ:CGNT) secured several significant deals, including a $10 million technology upgrade and multi-year support agreement with a law enforcement agency in EMEA. The company added over 60 new customers across multiple regions during the fiscal year, doubling the number from the previous year. Revenue from the Americas region declined modestly last year, despite an increase in revenue from the US. Total RPO (Remaining Performance Obligations) decreased by about $45 million compared to the previous year. The sales cycle in the US is longer than in other territories, impacting the speed of market penetration. Billing for Q4 was consistent with last year, indicating no growth in this metric. Cash flow from operations is expected to decline slightly in fiscal '26 compared to the previous year. Q: Can you provide insights into the demand trends in the US market, especially given the current policy uncertainties? A: Elad Sharon, CEO: The US market presents a significant opportunity for us. We've increased investments to improve market reach, starting with state and local law enforcement agencies, and are now engaging with federal agencies. Despite longer sales cycles in the US, we are seeing positive feedback and results from demonstrations. We expect growth in the US to outpace other regions, and current unrest is not expected to impact our efforts significantly. Q: Are sales cycles extending in the US, and is there potential attrition impacting these cycles? A: Elad Sharon, CEO: Sales cycles in the US are inherently longer due to our penetration mode. While it's hard to predict the impact of current US situations, we continue to invest in sales efforts, including hiring more salespeople and increasing our demonstration capacity. We expect the US to be a growth engine for us in fiscal '26. Q: What drove the decline in billings year-over-year, and why is cash flow from operations expected to decline next year? A: David Abadi, CFO: Q4 billings were $95 million, consistent with expectations. The previous quarter had unusually high billings due to faster billing. Cash flow from operations was strong this year due to efficiencies in working capital and cash collection. For next year, we forecast $45 million in cash flow from operations, reflecting continued strong cash generation. Q: What are the US demand drivers, and how do they compare to international markets? A: Elad Sharon, CEO: Globally, demand is driven by organized crime, terrorism, and border control. In the US, border control is becoming more important, but law enforcement agencies also deal with organized crime and local crimes. The demand in the US is similar to international markets, with potential increases in border control-related demand. Q: What investments are being made to accelerate sales cycles in the US market? A: Elad Sharon, CEO: We are investing heavily in the US market, hiring local sales teams with agency experience, participating in local conferences, and expanding our partner network. We are also focusing on both direct and indirect go-to-market strategies to accelerate sales cycles. These efforts are significantly higher than in other territories. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
03-04-2025
- Business
- Yahoo
Q4 2025 Cognyte Software Ltd Earnings Call
Dean Ridlon; Head of Investor Relations; Cognyte Software Ltd Elad Sharon; Chief Executive Officer, Director; Cognyte Software Ltd David Abadi; Chief Financial Officer; Cognyte Software Ltd Mike Cikos; Senior Analyst; Needham & Company LLC Peter Levine; Analyst; Evercore Group LLC Shaul Eyal; Analyst; TD Cowen Operator Good day, ladies and gentlemen. Thank you for standing by. Welcome to Cognyte's fourth quarter and fiscal year-end 2025 earnings conference call. (Operator Instructions)Please note that today's conference may be recorded. I would now like to hand the conference over to your speaker host Dean Ridlon, Head of the Investor Relations. Please go ahead. Dean Ridlon Thank you, operator. Hello everyone. I'm Dean Ridlon, Cognyte's Head of Investor Relations. Thank you for joining us today. I'm here with a Elad Sharon, Cognyte's CEO; and David Abadi, Cognyte's getting started, I would like to mention that accompanying our call today is a presentation. If you'd like to view these slides in real time during the call, please visit the investor section of our website at Please visit the investor section of our website at Click on upcoming events, then the webcast link for today's conference call.I would also like to draw your attention to the fact that certain matters discussed on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other provisions of the federal securities laws. These forward-looking statements are based on management's current expectations and are not guarantees of future results could differ materially from those expressed in or implied by these forward-looking statements. The forward-looking statements are made as of the date of this call and accept as required by law. Cognyte assumes no obligation to update or revise them. Investors are cautioned not to place undue reliance on these forward-looking a more detailed discussion of how these and other risks and uncertainties could cause Cognyte's actual results to differ materially from those indicated in these forward-looking statements, please see our annual report on Form 20-F for the fiscal year ended January 31, 2025, which we file today and other filings we make with the financial measures discussed today include non-GAAP measures. We believe investors focus on non-GAAP financial measures in comparing results between periods and among our peer companies that publish similar non-GAAP measures. Please see today's presentation slides, our earnings release, and the investor section of our website at for a reconciliation of non-GAAP financial measures to GAAP financial information should not be considered in isolation from, as a substitute for, or superior to GAAP financial information, but is included because management believes it provides meaningful information about the financial performance of our business and is useful to investors for informational and comparative purposes. The non-GAAP financial measures that the company uses have limitations and may differ from those used by other I would like to turn the call over to Elad. Elad Sharon Thank you, Dean. Welcome, everyone, to our fourth-quarter conference call. We close fiscal '25 strong, delivering double-digit revenue growth and a significant year-over-year increase in profitability. Q4 came in ahead of our expectations. We grew revenue by 13% year over year to $94.5 million. Non-GAAP gross profit increased by 17% year over generated more than $9 million of positive adjusted EBITDA for the quarter, representing 114% year-over-year growth, and cash flow from operations was approximately $19 million. Looking at our fully results, revenue grew by approximately 12% year over year to $351 million. Our profitability grew significantly faster than revenue.\Non-GAAP gross profit increased by approximately 15% year over year. We generated adjusted EBITDA of $29 million, more than 3 times what we delivered last fiscal year, and we had very strong cash flow from operations of $47 million. These results highlight the significant value we deliver to our customers, our sound execution, and the strength of our business our expectations of continuing global demand and the market evolving as expected, we believe our strategy of deepening customer relationships while expanding our footprint will drive continued Q4, we secured a series of significant deals across a diverse customer base. This included a deal worth over $10 million for technology upgrade and a multi-year support agreement with a longstanding law enforcement agency customer in addition, we signed five deals worth $5 million or more with customers in a variety of geographies. These deals include new solutions, expansions, and renewal of a support agreement. Our customer base continues to grow. Over the full year, we added over 60 new customers across multiple regions, about twice as many as we signed last fiscal year. This momentum reinforced the significant market opportunity the US, we continue to strengthen our position, expanding our footprint in this key market. This quarter, we signed several new customers and secured follow-on deals with existing ones. These wins underscore the meaningful value our solutions deliver to our continue to actively pursue opportunities in the US federal law enforcement market. While the sales cycle with these customers is longer than what we have experienced with state and local law enforcement agencies, we are pleased with the level of engagement we have with potential customers in this market ahead to fiscal '26, we are focused on driving growth through new advanced capabilities, deepening customer relationships, and expanding our market reach. We believe these initiatives continue to position us to drive sustained, profitable growth. For fiscal '26, we expect revenue to be approximately $392 million, plus or minus 2%, representing about 12% year-over-year growth at the midpoint of the range. We continue to expect gross profit to grow faster than also expect adjusted EBITDA for the year to be about $43 million at the midpoint of the revenue range, approximately 45% year-over-year growth, a result of the leverage we have in our model. We remain committed to long-term growth, increased profitability, and operational excellence, while strengthening our market leadership. We believe we are well-positioned to seize opportunities and drive lasting value for both our customers and I want to take this opportunity to thank Richard Nottenburg for his contributions and guidance during his tenure on the Cognyte Board. He played a key role in establishing Cognyte as an independent company with market-leading technology and a solid foundation for sustainable I would like to welcome Matthew O'Neill and Nurit Benjamini as the two newest members of our Board. Their appointments reflect our commitment to strengthen the Board of Directors with relevant industry and business brings extensive domain expertise in security with a strong understanding of US federal agency operations and protocols. He served until December '23 as the Deputy Special Agent in Charge of Cyber Operations at the United States Secret Service. He directed the agency's global cyber investigative strategies and oversaw efforts to dismantle transnational criminal networks. His insights will be instrumental as we continue to expand our market presence in the brings extensive experience in the software sector, having led finance, operations, legal, and strategic initiatives across multiple roles and domains. Her expertise will be invaluable as we continue to scale and execute our growth are excited to welcome both Matthew and Nurit to the board as we remain focused on driving consistent long-term growth at I invite you to our Virtual Analyst and Investor Day on Tuesday, April 8, at 8:00 AM Eastern Time. We will provide a deeper look into the challenges our customers face and how our solutions and technologies can help event will feature insights into market dynamics and Cognyte's positioning. We will also share our long-term financial targets, outlining how we plan to scale revenue and further drive profitability. We know that many of you are looking for deeper insights, and the event is designed to provide exactly are confident in Cognyte's future, and we look forward to hearing from you. This event will showcase the significant opportunities in our markets, and I hope it leaves you as excited about our potential as I am. I hope to see you all let me turn the call over to David to provide more details about our Q4 results and fiscal '26 outlook. David? David Abadi Thank you, Elad, and hello everyone. We delivered strong fourth quarter and fiscal '25 financial results driven by market demand and solid execution. With our highly differentiated solutions, healthy demand, and a large and loyal customer base, we entered fiscal '26 with good for the full year was $350.6 million, an increase of approximately 12% year over year. Our total software revenue was $306.7 million, representing about 87% of total revenue, aligned with our target mix. Recurring revenue for the full year was $186.6 million, representing [53%] of total geographic revenue mix for the year was 55% from EMEA, 31% from APAC, and 14% from the Americas. [Mix in] any given period is primarily impacted by the size of the deals and timing of revenue recognition. While revenue from the Americas region declined modestly last year, our revenue from the US increased growth margin for the year was 71%, expanding by 180 basis points year over year. Full-year gross profit outpaced revenue growth, reaching $249 million, an increase of about 15% year over year. We believe this improvement reflects the significant value customers place on our innovative technology, our competitive differentiation, and our optimized cost growth and our business model drove significant year-over-year improvements in profitability, underscoring our ability to drive operational leverage. Non-GAAP operating income and adjusted EBITDA grew much faster than fiscal 2025, we generated $15.7 million of non-GAAP operating income, almost 5 times higher than last year's loss of $4.2 million, and $29.1 million in adjusted EBITDA, more than 3 times higher than last year's gain of $9 million, resulting in non-GAAP EPS of $ ended the year with a strong balance sheet. Our short and long-term contract liabilities, commonly referred to as deferred revenue, remained robust at $130.3 million at the end of Q4 versus $123.1 million at the end of last fiscal year. Our cash position remained strong at $113.3 million, an increase of over $30 million since the end of last fiscal year, no debt. This cash growth was primarily fueled by strong annual cash flow from operations of about $47 Q4, we began our stock repurchase program, buying about 586,000 ordinary shares for an aggregate purchase price of approximately $5.3 million. As a reminder, last November, our Board of Directors approved a share repurchase program of up to $20 million in ordinary shares over 18 let me share with you more color on Q4 results. Q4 revenue grew by 12.9% year over year to $94.5 million. Software revenue was $37.4 million, an increase of $6 million year over year. Software services revenue was $45.9 million, an increase of $3.6 million over last software revenue, which includes software and software services, was $83.3 million, an increase of $9.6 million compared to last year, representing about 88% of total revenue. Recurring revenue remains a strength, reaching $47.3 million, or 50% of total revenue in Q4, compared to $42.9 million in the same period last revenue, primarily from support contracts and some subscription offerings, enhanced visibility and supported long-term growth. Professional services revenue was $11.2 million, an increase of $1.2 million over last year. Non-GAAP growth margin for the quarter was 71.5%. Our total software non-GAAP growth margin improved to 78.9% versus 77.4% last year, a year-over-year improvement of 150 basis professional services non-GAAP growth margin was 16.3% versus 6.8% last year. These improvements reflect the competitive differentiation of our solutions, ongoing deployment efficiency, and better cost structure. Increase in non-GAAP operating income and adjusted EBITDA outpaced revenue growth, reinforcing our strong financial Q4, we generated $6 million in non-GAAP operating income, an increase of more than 500% versus last year, and $9.3 million of adjusted EBITDA, an increase of 140% versus last year, resulting in non-GAAP EPS of $ Q4, we generated $18.7 million in cash flow from operations and $14.4 million in free cash flow, demonstrating the strengths of our financial model and operational efficiency. We delivered better-than-expected collection and working capital efficiencies in the fourth quarter, driving higher cash conversion than we are expecting in future me walk you through our performance against some of our key performance indicators. RPO, or remaining performance obligations, represent contracted revenue to be recognized in future periods, influenced by factors such as sales cycles, deployment timelines, contract length, renewal timing, and seasonality. RPO fluctuations are not necessarily indicative of future revenue growth RPO is sum of deferred revenue of $130.3 million and backlog of $415.5 million. At the end of Q4, total RPO was $545.8 million, down by about $45 million versus last year. Total RPO, which also includes multi-year support contracts, is expected to continue to fluctuate due to renewal the end of FY25, our total RPO has been boosted by a significant support contract renewal with an annual value of over $20 million for three years. This long-term agreement underscores the long-standing customer confidence in Cognyte technology foresight, domain expertise, and continued delivery of customer value. It is an example of how this size, contract length, and renewal timing can impact RPO at the end of Q4 increased to $335.3 million, which we believe provides solid visibility into revenue over the next 12 months. These healthy RPO levels reinforce our growth expectation and validate the strengths and resilience of our business model. Q4 billings were $95 million, consistent with last year, and aligned with our non-GAAP gross profit for the quarter was $67.6 million, an increase of $9.8 million, or 17% year over year. Q4 non-GAAP operating expenses were $61.6 million, aligned with our expectations. The combination of revenue growth, improved margins, and ongoing cost management drove a notable increase in Q4, we generated $9.3 million of adjusted EBITDA and $6 million in non-GAAP operating income. We remained focused on driving further financial improvement and continuing to expand our to guidance. For fiscal '26, we expect full-year revenue of approximately $392 million, plus or minus 2%. This represents approximately 12% year-over-year growth at the midpoint of the revenue range. We expect total software revenue to be about $340 million, representing approximately 87% of total revenue, and professional services revenue to represent about 13% of total revenue, aligned with our strategic goals. We believe that our strong short-term RPO of $335 million and favorable demand environment support this expect Q1 revenue to be similar to the Q4 levels we are reporting today, with sequential growth each quarter throughout the year, aligned with the seasonality of previous years. We expect non-GAAP gross margin to increase year-over-year to approximately 71.5%, reflecting an improvement of 50 basis points. Gross margin may fluctuate between quarters based on our revenue mix. As a result of the improved gross margin, we expect gross profit to increase at a faster rate than revenue the full year, we expect our non-GAAP operating expenses to grow meaningfully slower than the revenue, reaching approximately $250 million, an increase of about 7%. Operating expenses seasonality should remain in line with previous years, with slight fluctuations throughout the expect non-GAAP operating income to be about $30 million, nearly doubling year over year. We expect adjusted EBITDA to be about $43 million, representing 45% year-over-year growth. We expect our non-GAAP taxes to be about 40% or $13 million, a non-controlling minority interest of about $5 million. As a result, we expect annual non-GAAP EPS to come in at $0.16 at the midpoint of the revenue range, best on a weighted average of approximately 76 million fully diluted shares in to cash flow, as I mentioned, in fiscal '25 our cash flow from operations benefited from very strong collections and working capital efficiencies. Although we don't expect to maintain the same pace of cash conversion this year, we expect to generate $45 million of cash flow from operations in fiscal '26. For the full year, we expect total CapEx of approximately $13 summarize, we delivered a consistent execution, driving strong results for fiscal 2025. We secured major deals from both existing and new customers, which we believe reflects the growing demand for and the value of our cutting-edge investigative analytics ongoing commitment to innovation and expansion of our advanced solutions, including leveraging AI, continues to enhance the value we provide for entered fiscal 2026 with positive momentum, reflecting the health of our business. Our clear revenue visibility and our robust balance sheet, including a solid cash position, ensures financial flexibility. With this strong foundation, we believe we are well positioned to capitalize on the opportunities in front of us and deliver profitable growth this year and I would like once again to invite everyone to attend our Virtual Analyst and Investor Day on Tuesday, April 8, at 8:00 AM Eastern Time. This event will provide deeper insight into our long-term growth strategy and expected future drivers of that, I would like to hand the call over to the operator to open the lines for questions. Operator? Operator (Operator Instructions) Mike Cikos, Needham. Mike Cikos Great. Thanks for taking the questions here, guys. Congrats on the quarter. I wanted to cycle back to the demand trends. I know that you broke out the EMEA versus APJ, Americas and US business, but can you help us think about what you guys are seeing in the US market specifically, just given the current policy uncertainty that's currently in the headlines? Elad Sharon Thank you, Mike. We continue to believe that the US presents a good opportunity for us. We increased investments over the years to improve the market reach. We started with state and local law enforcement agencies. We were able to acquire new customers and also get a few follow-on orders we continue the efforts also to penetrate to the federal agencies. We do have a very good engagement with some federal agencies already, including proof of concept and demonstration with some of them. Results are very good, and we get very positive in terms of the product market fit and the superiority of our technology and the very strong results of the demonstration, I think we are in a very good position to continue and expand our presence in the terms of the results, we did see an increase in the US or growth in the US last year (inaudible)We expect this growth to continue and be faster than the rest of the territories. And we continue to see this opportunity as a growth initiative for us also for the next few years. Given the current situation, we don't really think, you know, given that we just started in a penetration mode, I don't think the unrest in the US will impact our efforts.I do believe that what we feel is very healthy market dynamics, a strong need, and our position in the US will take us to where we want to be. And we continue to invest for this year to continue and expand our presence in the US in state and local as well as federal. Mike Cikos Got it. Thanks for that. Maybe if I could just try another one on that. But based on what you're seeing or hearing from your sales team, are sales cycles extending or is there a potential that it's almost like -- is there a potential impact to that sales cycle potentially because of attrition with the folks that you guys are working with? Elad Sharon Yes. So first of all, to begin with, the sales cycle in the US is longer than what we see in other territories because we're in penetration mode. So it took us some time to get the brand awareness, to access the market, to have the customers take our solutions and try it. So to begin with, the sales cycles in the US are longer.I cannot predict what will be the situation in the US given what's going on there right now. But because we just started and the market is very large compared to what we generate from the US, I don't think it will have a negative impact on us. But it's hard to we continue the efforts full gear. We do not blink. We will continue to invest. We'll continue to hire more sales people over time. We'll continue to increase our demonstration and POC capacity over time. We are also presenting and participating relevant conferences in the US that are relevant for our industry. So I do believe that the US will be a growth engine for us for the long term but also expect it to grow in fiscal '26. Mike Cikos Got it. And maybe just for David, just a quick question. On billings in the quarter, can you help us think about, I guess, what drove that decline on a year-over-year basis in the billings? And then secondly, as we think about next year, why is the cash flow from operations expected to decline as well? Thank you. David Abadi So billing for Q4 was $95 million. And if you may recall, the billing in Q3 was $103 million or $105 million, if I recall correctly, much higher than revenue. If you look in the annual basis, you can see that overall billing was strong. We continue to bill our customers as planned. As part of our overall quality of the revenue, and you can see it in the way that we actually deliver our results, the pace of billing is, I would say, in a good $95 million, on the $94.5 million, it's a good billing indicator. So we are actually pleased with the billing figures. And also, if you may recall, on Q3, we were speaking about that Q3 was abnormal and was extremely higher because we were able to bill faster. As for the cash flow from operations, so actually cash flow from operations was very strong this ended the year with $47 million of cash flow from operations. It mainly was driven from efficiencies related to our working capital and cash collection that was much faster than we planned. So we ended the year with a very strong balance sheet and cash from into next year, we are forecasting $45 million of cash from operations, while our operating income is $30 million. So actually, we expect that even next year, we will have some benefit from working capital and collection. So overall, cash generation is very strong. Mike Cikos Terrific. I'll turn it over to my colleagues. Thank you. Operator Peter Levine, Evercore. Peter Levine Thank you, guys, for taking my questions. Maybe to piggyback off of Mike's prior question, US demand. With the administration, obviously, they're pushing immigration. They're fighting against the cartel and how they're classifying them now as a terrorist organization. Can you maybe just help us understand, like, what are the US demand drivers? Is it different than what you're seeing internationally? Maybe I'll start there. Elad Sharon Yeah. So there is commonality in the demand globally, which is related to I would say the criminal activities that are ongoing criminal activities. Organized crime, terror kidnapping, child kidnapping, border controls. Many customers around the globe are facing the same thing. In certain areas, some cases are putting more pressure on the agencies than the the US now, what we hear is that border control is becoming more important, but it's not only border control. Because if you look at the day-to-day work of law enforcement agencies, they still have to deal with organized crime. They still have to deal with funding of criminal activities. They still have to deal with local crimes. So this is something that is ongoing and will continue addition to that, we do hear that maybe requirements or demand related to border control should increase over time in the US. We haven't seen this converted into demand yet, but maybe this will happen. But generally speaking, the demand in the US in terms of the use cases that they have to deal with is similar to the rest of the world. Peter Levine And then if you think about, again, you talked about sales cycles, what investments are you making? What are you changing to the go-to-market to kind of accelerate those sales cycles? I know it's a new market for you, but are there any priorities this year that you're kind of focused in on to shorten that sales cycle? Is it partnering, building out an ecosystem of partners to kind of leverage the sales? Just help us understand, like, what are you doing to kind of double down on the US market? Elad Sharon Yeah. So the efforts in the US market in terms of sales are disproportional to the rest of the world. Given that we are in a penetration mode, the amount of efforts and investments we put on sales and marketing are higher than on example, we hired a local sales team that some of them are coming from those agencies. So they have the relationship and they know the needs. This is one second example is that we participate more in local conferences that are actually focused for the requirements, specific requirements of the local area is marketing. The marketing efforts are much higher in the US than in the rest of the world. We hired recently a Board member, Matthew O'Neill, that came from the US Secret Service to help us understand the federal market even further. We do expand our partner network in the US, so we actually focus on both go-to-market strategies. Direct, but also indirect with partners. We are looking for contract vehicles that can help us accelerate the sales the efforts and the investments we do in the US are significantly higher than in other territories. Also, the requirements there and the size of the market are much higher. So we take all of it into consideration in our planning, and that's the reason we invest more. We are highly focused on this market, and I believe it will pay for us. I mean, I expect the US to continue and grow faster than the rest of the world. Peter Levine If I could squeeze one last one for David. I know we'll have to wait until Tuesday, but can you maybe just give us an example or maybe just help us understand, in terms of modeling, what should we expect? Are we getting a long-term model, a near-term model, obviously 12% growth for next year? So really, I don't know if I should wait for Tuesday, but the durability of double-digit growth, is that sustainable, longer-term, post fiscal '26? David Abadi If I will share with you the target for the three years, probably I will lose all the diligence for the Investor Day. You will need to wait for next Tuesday. But in general, the fundamentals of the business are very healthy. You can see it in the last nine quarters in a row, we're able to drive much better margin is growing. Gross profit is growing even faster than top-line growth. Last year, we were able to drive much better profitability. Gross profit is growing even faster than top-line growth. Last year, we were able to drive our gross profit 15%, while the top-line was going 12%.So in any, I would say, parameter that you look for profitability, you can see the benefit on the model. So gross profit, gross margin is one thing. You can see the R&D to revenue ratio is declining, and we believe this trend will continue with we're investing in the sales market. I was speaking about the US market-required investment. We are investing, but we are always investing in our thought about top-line growth with increasing profitability, the balance of the two of them. Actually, you can see next year, we're guided for 12% top-line growth, and EBITDA growth of 43% -- 45% on the 12% I think that the model itself, the way that we are investing, and the way that we're deciding align with this understanding. Obviously, there is room for improvement over time in the next week, in the Investor Day. I need some work there, so I will give you the target for the 2028. Operator (Operator Instructions) Shaul Eyal, TD Cowen. Shaul Eyal Thank you. Hi. Good morning, good afternoon. Elad, I think we're all hearing the excitement and the growing focus on the US market, but maybe can you talk to us about some of the market dynamics you're seeing outside of the US right now? Thank you. Elad Sharon Hi, Shaul. Thank you. So the demand drivers globally remain healthy. We see the data that continues to grow in volumes and diversity, and actually customers have to convert it into insights, so they need much stronger technology tools in order to do do see that adversaries are more sophisticated. They also use advanced technology in order to evade detection. So they use cryptocurrencies that are anonymized. They don't talk to each other in usual means, so actually it's very difficult to put their hands on have to remember that it's becoming more and more global. The technology is evolving. AI is an example. So if you look at technology and AI, it presents to our customers opportunity and risk. Risk because also the bad guys are using it, but opportunity because they can use AI for two main advantages. One is to uncover even more hidden insights out of the same data sets customers have today but also use GenAI in order to improve dramatically the efficiency of the investigators and the demand drivers remain very strong. Our customers derive significant value from our technology. We get very positive feedback. We are in this market for three decades. Some of the customers are with us almost three decades. Some of them share with us impressive success stories on being able to save lives, being able to prevent significant financial damage to their countries and I believe that the combination of the healthy demand drivers, what we see in the market, what we hear from our customers, and the value our technology generates for them, this one will create the growth also going forward. And I believe we're positioned for continued growth. Operator I show no further questions in the queue at this time. I would now like to turn the call back over to Dean for closing remarks. Dean Ridlon Thank you, Michelle, and thank you, everyone, for joining us on today's call. In addition to next week's Analyst and Investor Day, Elad, David, and I will be in New York in May to meet with investors and hope to see some of you then. In the meantime, please feel free to reach out to me should you have any questions, and we look forward to speaking with you again next quarter. Operator This concludes today's conference call. Thank you so much for participating. You may now disconnect. Sign in to access your portfolio
