Cognyte Software Ltd.

Welcome to the Cognite Third Quarter Earnings Conference Call. My name is John. I'll be your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you do have a question, press the bar then 1 on your touchtone phone. Please note the conference is being recorded. And I will now turn the call over to Dean Ridlund.

Thank you, Operator. Hello, everyone. I'm Dean Ridlund, Cognite's new Head of Investor Relations. Thank you for joining us today. I'm here with Elad Sharon, Cognite CEO, and David Abadi, Cognite CFO. Before getting started, I would like to mention that accompanying our call today is a WebEx with slides. If you would like to view these slides in real time during the call, please visit the investor section of our website at cognite.com, click on the Investors tab, click on Webcast the link, and select 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 performance. Actual 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, except as required by law, Cognite assumes no obligation to update or revise them. Investors are cautioned not to place undue reliance on these forward-looking statements. For a more detailed discussion of how these and other risks and uncertainties could cause Cognite'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, 2021, filed with the SEC on April 29, 2021, and other filings we make with the SEC. 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 cognite.com for reconciliation of non-GAAP financial measures to GAAP measures. Non-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 the company uses have limitations and may differ from those used by other companies. Now, I would like to turn the call over to Elad.

Thank you, Dean. We're excited to have you join the Cognite team. Welcome, everyone, to our third quarter conference call. I'm pleased to report third quarter revenue and diluted EPS coming in above the high end of our guidance. Non-GAAP revenue was $119 million dollars, The non-GAP EPS was 21 cents. Adjusted EBITDA also came in strong at $22 million. During the quarter, we received many large deals, including multiple 7 and 8-digit deals, driven by our security analytics platform. As we approach completing our first year as an independent company, I'm pleased with the execution of our software strategy. We experienced sequential revenue growth in Q2 and Q3, and expect to finish the year with strong sequential growth in Q4. With six weeks left in the year, we are refining our annual outlook. We now expect $480 million of revenue, or around 7.5% year-over-year growth, with 10% gross profit growth, and $0.90 of EPS at the midpoint of our revenue expectations. David will elaborate on our guidance later in the call. Our growth strategy? is to empower security organizations with an open analytics platform to help them address many different security use cases. I would like to start my discussion today with a review of some of the large deals we received in Q3 that reflect the execution of this strategy. The first is an approximately $15 million deal from a national security agency that added new functionality. This is a good example of how our platform can help customers address their growing needs to accelerate complex investigations with our latest innovations in security analytics. The second and third examples are two deals, each of approximately $10 million in connection with capacity expansion of our platform. These two deals are good examples of how we help customers scale their solutions to analyze the increasing amount of data they capture and address evolving security threats. We believe these large deals reflect our laser focus of innovation in artificial intelligence and data analytics and our customers' ability to leverage our platform to address many different use cases. For example, a use case of our platform is accelerating organized crime investigations. Security agencies seek to identify members of criminal organizations, understand the organization's ecosystem, including the leadership, funding sources, and intentions and ultimately prevent crimes before they happen. In today's digital world, criminals leave behind many digital footprints that can be very useful in accelerating investigations. The amount of digital information that is available to security agencies is growing rapidly, but it's also very diverse and difficult to analyze in order to find actionable insights. Our platform is built with significant domain expertise and enable security agencies to leverage digital footprints to connect the dots and reach quick conclusions by fusing and analyzing data from a wide variety of sources. I believe organized cloud investigations is a good example of how we support many use cases of our analytics platform to help our customers address the evolving security challenges. As we look forward, We believe the security analytics market is in its early stages and we are well positioned for long-term growth. Many customers recognize that homegrown solutions can no longer keep pace with growth in data volume and diversity. They seek open analytics platform from a trusted partner that can support multiple use cases. Solutions that can fuse data at scale from different sources and generate high-quality insights faster to mitigate a wide range of security threats before they fully unfold. We have a long history of innovation that has enabled us to establish Cognite as a leading vendor of security analytics software. With nearly 1,000 people in R&D, primarily based in Israel, we are committed to continuing to lead the market with developing highly sophisticated tools for our customers. Our market leadership is not just about our technology. Customers also have confidence in our ability to deliver value based on our track record of innovation and previous deployments. We intend to maintain our market leadership by continuing to collaborate with our customers to stay on the cutting edge of artificial intelligence and security analytics to address the evolving needs of the world's most sophisticated security agencies. In summary, we are pleased with our third quarter results and are on track for a solid first year as an independent public company. And with the strong execution of our software strategy, we expect to deliver 10% gross profit growth for the year. Looking forward, we are in a large and growing market with positive industry trends and are well positioned for long-term growth. Now, let me turn the call over to David to discuss our Q3 results and outlook in more detail. David?