Cognyte Software Ltd.

Good day, and thank you for standing by. Welcome to the Cognite First Quarter Fiscal Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Dean Ridlon, Head of Investor Relations. You may begin.

Thank you, Operator. Hello, everyone. I'm Dean Ridlon, Cognite's Head of Investor Relations. Thank you for joining us today. I'm here with Elad Sharon, Cognite's CEO, and David Abadi, Cognite's CFO. Before 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 Investors section of our website at cognite.com, click on the Investors tab, click on the webcast 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 Law. 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 20F for the fiscal year ended January 31st, 2023, 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. Welcome, everyone, to our first quarter conference call. I'm pleased to report a good start for the year with solid Q1 results across several key metrics. Revenue grew sequentially and came in ahead of our expectation at $73 million. I'm very pleased with our gross margins, increasing by 800 basis points compared to Q1 last year, and gross profit increasing 7% year-over-year on an SAS-adjusted on-gap basis. Free cash flow was very strong, coming in at $17 million also ahead of our expectations. Today, I'll start with a review of our first quarter of significant wins in market dynamics. Next, I'll discuss our differentiated technology and how we believe we're well positioned to leverage the latest AI innovations to increase customer value. And lastly, I'll discuss our updated outlook for the year. I would now like to review some of our significant wins in the quarter that highlight our differentiated technology and deep customer relationships. Our investigative analytics solutions help national security, law enforcement, national intelligence, and other security organizations to accelerate investigations. The first deal is for approximately $8 million with an existing national intelligence customer for its mission to combat drug trafficking and other high-impact crimes around the borders. We believe we're selected because of our cutting edge technology that consistently outperforms solutions from other vendors during a variety of operational activities performed by this customer. The second deal is with an existing national security customer for approximately $9 million. It represents an expansion of our customer's capabilities and functionality for its mission to address an increase of terror and criminal activities in the country. We believe we're selected due to our ability to accelerate security investigations and the long-term relationship we have with this customer. The third deal is for approximately $5 million from an existing national security customer. The deal is to expand capacity and widen the operational capabilities of their solution to more effectively combat terror activities. We believe we're selected based on our long track record of success in value creation. The common thread we see through these wins is our innovative and differentiated investigative analytic solutions and our ability to help customers successfully create operational value. Looking at the current market dynamics, we see a noticeable change versus what we saw last year. A year ago, many customers suffered from budget uncertainties, which impacted the visibility and ability to plan ahead. This year, more customers are expressing confidence in their budgets and plans. Our customers' increased confidence supports our expectations for the year and is translating into more discussions about future needs. For example, at recent industry conference, we saw a higher level of attendance and interest from customers. Overall, we clearly see more customers returning to normal behavior this year compared to what was happening a year ago. Next, I would like to discuss our innovation and differentiation. Our customers face unique challenges when it comes to investigative analytics and decision making. They have to fuse and analyze data at scale from a large variety of different sources, including sensitive data. The objective is to uncover insights quickly to accelerate investigations. Cognite is focused on investigative analytics in order to uncover hidden connections inside large, diverse data sources. We have been doing this for many years by continuously improving advanced analytics and incorporating artificial intelligence models in our solutions. The recent developments in AI provide us with new opportunities. We are currently focused on leveraging the latest AI innovations to enable our customers to derive even greater value from their data. We believe there are new market segments that face investigative analytics challenges that present us with good expansion opportunities over time. We believe that our long-term market leadership in investigative analytics, combined with our technological strength and our strong relationships with our large customer base across the globe, position us well to leverage AI innovation and drive long-term growth. Looking at our outlook for this fiscal year, given the improved visibility, we are raising our revenue guidance for the year to $303 million, plus or minus 2%, representing 7% year-over-year growth at the midpoint on an SS-adjusted non-GAB basis. With revenue expected to grow by 7%, we now expect gross profit to grow faster at more than 10% year over year. As for cash flow, we are now expecting positive cash flow from operations for the full year. Looking beyond this year, given recent innovations in AI, we have identified potential opportunities to expand our business with both existing and new customers. We believe that the combination of positive industry trends, our innovative technology, and large global customer base position us well for long-term growth. To summarize, our customers continue to face significant investigative challenges across many use cases. Our mission is to help them accelerate investigations and mitigate the wide range of threats before they unfold. And our customers view us as domain experts and trusted partners. We are pleased with our first quarter results and positive momentum and are raising guidance for the current year. Long-term, we target continued growth and margin expansion. Now, let me turn the call over to David to provide more details about our results and outlook. David?