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GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

12 Months Ended

Jan. 31, 2023

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

Geographic Information

Revenue by major geographic region is based on the location of our contracting subsidiary, which often differ from the geographic location of the customer.

The information below summarizes revenue by major geographic region for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
EMEA:
Israel	$	201,610	$	328,371	$	274,113
Germany	44,486		63,258		86,834
Other	13,208		14,127		18,727
Total EMEA	259,304		405,756		379,674
Americas:
United States	35,139		37,726		44,746
Other	9,987		17,869		7,134
Total Americas	45,126		55,595		51,880
APAC	7,633		12,691		11,904
Total revenue	$	312,062	$	474,042	$	443,458

Our long-lived assets primarily consist of net property and equipment, operating lease ROU assets, goodwill and other intangible assets. We believe that our tangible long-lived assets, which consist of our net property and equipment, are exposed to greater geographic area risks and uncertainties than intangible assets and long-term cost deferrals, because these tangible assets are difficult to move and are relatively illiquid.

Property and equipment, net by geographic area consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Israel	$	20,090	$	24,510
United States	173		538
Other countries	5,611		5,791
Total property and equipment, net	$	25,874	$	30,839

Significant Customers

The Company’s largest customers accounted for the following percentage of total revenue:


	Year Ended January 31,
	2023		2022		2021
Customer A	17.7	%	14.8	%	16.9	%
Customer B	10.0	%	8.4	%	14.1	%

In making this determination of significant customers, we define a customer as an organization from which we have recognized revenue in a reporting period. In situations where a governmental organization acts on behalf of multiple agencies or departments, we treat that organization as the customer for reporting purposes notwithstanding that each of the underlying agencies or departments is generally making its own independent purchasing decisions.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

LEASES - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Operating Leases
2024	$ 7,487
2025	6,869
2026	4,486
2027	213
2028	5
Total future minimum lease payments	19,060
Less imputed interest	(2,088)
Total	$ 16,972
Operating Leases
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Accrued expenses and other current liabilities	$ 6,604	$ 7,409
Operating lease liabilities	10,368	$ 17,179
Total	$ 16,972

REVENUE RECOGNITION - Narrative (Details)	12 Months Ended
REVENUE RECOGNITION - Narrative (Details)	Jan. 31, 2023 USD ($) customer	Jan. 31, 2022 USD ($)	Jan. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Capitalized contract cost, impairment loss	$ 0
Amount reclassified to accounts receivable from contract asset	16,300,000	$ 13,000,000
Contract assets recognized in current period	10,300,000	19,100,000
Contract assets, net	2,100,000
Accounts receivable, net	113,201,000	179,198,000
Current period revenue recognized from beginning balance of contract liabilities	$ 61,300,000	107,200,000
Governments outside the United States
Disaggregation of Revenue [Line Items]
Number of customers outside the United States \| customer	2
Accounts receivable, net	$ 54,200,000	80,100,000
Sales Commission
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	9,700,000	8,300,000
Capitalized contract cost, amortization	13,300,000	24,400,000	$ 23,800,000
Sales Commission \| Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	7,400,000	6,400,000
Sales Commission \| Other assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	2,300,000	1,900,000
Costs to Fulfill
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	2,500,000	3,600,000
Capitalized contract cost, amortization	3,900,000	7,800,000	$ 13,500,000
Costs to Fulfill \| Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	2,400,000	3,100,000
Costs to Fulfill \| Other assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 100,000	$ 500,000
Minimum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	1 year
Maximum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	3 years

RESEARCH AND DEVELOPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Research and Development Expense [Abstract]
Gross research and development expenses	$ 140,400	$ 143,700	$ 129,200
Reimbursements from the IIA and other government grant programs		300	500
Capitalized computer software, impairments	$ 0	$ 142	$ 2,244

FAIR VALUE MEASUREMENTS

12 Months Ended

Jan. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of January 31, 2023 and 2022:


	January 31, 2023
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	288	$	—
Total assets	$	—	$	288	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	1,592	$	—

Total liabilities	$	—	$	1,592	$	—


	January 31, 2022
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	140	$	—
Total assets	$	—	$	140	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	801	$	—

Total liabilities	$	—	$	801	$	—

The following table presents the changes in the estimated fair values of our liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the years ended January 31, 2023 and 2022:



	Year Ended January 31,
(in thousands)	2023		2022
Fair value measurement, beginning of year	$	—	$	2,923

Changes in fair values, recorded in operating expenses	—		(185)
Payments of contingent consideration	—		(2,738)
Fair value measurement at end of year	$	—	$	—

Our estimated liability for contingent consideration as of in the year ended January 31, 2022 represents potential payments of additional consideration for business combinations, payable if certain defined performance goals are achieved. Changes in fair value of contingent consideration are recorded in the consolidated statements of operations within selling, general and administrative expenses.

There were no transfers between levels of the fair value measurement hierarchy during the years ended January 31, 2023 and 2022.

Fair Value Measurements

Foreign Currency Forward Contracts - The estimated fair value of foreign currency forward contracts is based on quotes received from the counterparties thereto. These quotes are reviewed for reasonableness by discounting the future estimated cash flows under the contracts, considering the terms and maturities of the contracts and market foreign currency exchange rates using readily observable market prices for similar contracts.

Contingent Consideration Asset or Liability—Business Combinations - The fair value of the contingent consideration related to business combinations is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. We remeasure the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within selling, general, and administrative expenses. Increases or decreases in discount rates would have inverse impacts on the related fair value measurements, while favorable or unfavorable changes in expectations of achieving

performance targets would result in corresponding increases or decreases in the related fair value measurements. All of our outstanding contingent consideration liabilities were fully settled during the year ended January 31, 2022.

Other Financial Instruments

The carrying amounts of accounts receivable, short-term investments, contract assets, accounts payable, and accrued liabilities and other current liabilities approximate fair value due to their short maturities.

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including goodwill, intangible assets, operating lease ROU assets, and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s fair value. These assets are recorded at fair value only when an impairment charge is recognized. Further details regarding our regular impairment reviews appear in Note 2, “Summary of Significant Accounting Policies”.

The carrying amount of our noncontrolling investments in privately-held companies without readily determinable fair values was $7.0 million and $5.2 million, of which $2.4 million and $4.4 million was remeasured to fair value based on an observable transaction during the years ended January 31, 2023 and 2022, respectively. These investments are included within other assets on the consolidated balance sheets. An unrealized gain of $1.7 million and $0.7 million, which adjusted the carrying value of a noncontrolling investment, was recorded in other income (expense), net on the consolidated statements of operations for the years ended January 31, 2023 and 2022, respectively. A realized gain of $0.1 million upon the receipt of proceeds related to the partial sale of the same equity investment were recorded in other income (expense), net on the consolidated statements of operations for the year ended January 31, 2022. We did not recognize any impairments or other adjustments during the years ended January 31, 2023 and 2022.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Unconditional Purchase Obligations In the ordinary course of business, we enter into certain unconditional purchase obligations, which are agreements to purchase goods or services that are enforceable, legally binding, and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Our purchase orders are based on current needs and are typically fulfilled by our vendors within a relatively short time horizon. As of January 31, 2023, our unconditional purchase obligations totaled approximately $36.1 million. Licenses and Royalties We license certain technology and pay royalties under such licenses and other agreements entered into in connection with research and development activities. As discussed in Note 2, “Summary of Significant Accounting Policies”, we receive non-refundable grants from the IIA that fund a portion of our research and development expenditures. The Israeli law under which the IIA grants are made limits our ability to manufacture products, or transfer technologies, developed using these grants outside of Israel. If we were to seek approval to manufacture products, or transfer technologies, developed using these grants outside of Israel, we could be subject to royalty requirements or be required to pay certain redemption fees. If we were to violate these restrictions, we could be required to refund any grants previously received, together with interest and penalties, and may be subject to criminal penalties. Off-Balance Sheet Risk In the normal course of business, we provide certain customers with financial performance guarantees, which are generally backed by bank guarantees and, in certain cases, by standby letters of credit. In general, we would only be liable for the amounts of these guarantees in the event that our nonperformance permits termination of the related contract by our customer, which we believe is remote. At January 31, 2023, we had approximately $43.6 million of outstanding bank guarantees and letters of credit relating primarily to these performance guarantees. As of January 31, 2023, we believe we were in compliance with our performance obligations under all contracts for which there is a financial performance guarantee, and the ultimate liability, if any, incurred in connection with these guarantees will not have a material adverse effect on our consolidated results of operations, financial position, or cash flows. Our historical non-compliance with our performance obligations has been insignificant. In addition the Company provided bank guarantees in the amount $3.6 million related to its offices in Israel and exports transaction towards the Israeli Chamber of Commerce. Indemnifications In the normal course of business, we provide indemnifications of varying scopes to customers against claims of intellectual property infringement made by third parties arising from the use of our products. Historically, costs related to these indemnification provisions have not been significant and we are unable to estimate the maximum potential impact of these indemnification provisions on our future results of operations. To the extent permitted under Israeli law or other applicable law, we indemnify our directors, officers, employees, and agents against claims they may become subject to by virtue of serving in such capacities for us. We also have contractual indemnification agreements with our directors, officers, and certain senior executives. The maximum amount of future payments we could be required to make under these indemnification arrangements and agreements is potentially unlimited; however, we have insurance coverage that limits our exposure and enables us to recover a portion of any future amounts paid. We are not able to estimate the fair value of these indemnification arrangements and agreements in excess of applicable insurance coverage, if any. In connection with the spin-off, we entered into a tax matters agreement (the “Tax Matters Agreement”) with Verint under which we and Verint each agreed to share the obligation to pay any taxes as shown on tax returns filed by Verint (or any member of its group), on one hand, and us (or any member of our group), on the other hand, such that we will be primarily responsible for any taxes related to, or arising in connection with Cognyte, and Verint will be responsible for any taxes related to, or arising in connection with, the remaining business of Verint, regardless of which party prepares and files any such tax return and whether such taxes arise prior to or after the spin-off. We and Verint agreed to indemnify each other under the Tax Matters Agreement for certain actions or inactions that cause the distribution of our stock to fail to qualify as tax-free for U.S. federal income and Israeli tax purposes. If the distribution fails to qualify as tax-free due to no fault of either Verint or us, Verint and we will jointly be responsible for any resulting tax. Under the terms of the Tax Matters Agreement, we and Verint agree generally to cooperate in preparing and filing tax returns and will retain and make available tax records to the other party. Contests with taxing authorities are generally controlled by whichever of us or Verint bears the potential liability for the contested tax. However, with respect to certain income tax returns of Verint group, Verint has an exclusive right to control any contest with taxing authorities regarding tax liabilities in connection with such income tax returns, even if we are allocated all or a portion of such taxes under the terms of the Tax Matters Agreement. If any tax contest relates to a failure of the spin-off to qualify as tax-free due to the fault of Verint or us, then the party at fault will control such tax contest. The change in gross unrecognized tax benefits during fiscal year 2023 includes an uncertain tax position that should have been recognized beginning in fiscal year 2019. The net unrecognized tax benefit associated with this uncertain tax position amounted to $4.7 million as of January 31, 2023, which has been recognized as an out-period-correction in the fourth quarter of fiscal year January 31, 2023. In addition, since the uncertain tax position originated prior to the Spin-Off Date, we have indemnified Verint for this amount under the Tax Matters Agreement between Verint and Cognyte that became effective on the Spin-Off Date. The rollover impact of this out-of-period correction was not material, individually or in the aggregate, to any of the Company’s previously reported net income (loss), comprehensive income (loss), or basic and fully diluted earnings (loss) per common share. Legal Proceedings In March 2009, one of our former employees, Ms. Orit Deutsch, commenced legal actions in Israel against our primary Israeli subsidiary, Cognyte Technologies Israel Ltd. (“Cognyte IL”) (Case Number 4186/09) and against our former affiliate Comverse Technology, Inc. (“CTI”) (Case Number 1335/09). Also in March 2009, a former employee of Comverse Limited (CTI’s primary Israeli subsidiary at the time), Ms. Roni Katriel, commenced similar legal actions in Israel against Comverse Limited (Case Number 3444/09). In these actions, the plaintiffs generally sought to certify class action suits against the defendants on behalf of current and former employees of Cognyte IL and Comverse Limited who had been granted stock options in Verint and/or CTI and who were allegedly damaged as a result of a suspension on option exercises during an extended filing delay period that is discussed in Verint’s and CTI’s historical public filings. On June 7, 2012, the Tel Aviv District Court, where the cases had been filed or transferred, allowed the plaintiffs to consolidate and amend their complaints against the three defendants: Cognyte IL, CTI, and Comverse Limited. On October 31, 2012, CTI distributed of all of the outstanding shares of common stock of Comverse, Inc., its principal operating subsidiary and parent company of Comverse Limited, to CTI’s shareholders (the “Comverse Share Distribution”). In the period leading up to the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in Verint and in its then-subsidiary, Comverse, Inc.) to Comverse, Inc. or to unaffiliated third parties. As the result of these transactions, Comverse, Inc. became an independent company and ceased to be affiliated with CTI, and CTI ceased to have any material assets other than its equity interests in Verint. Prior to the completion of the Comverse Share Distribution, the plaintiffs sought to compel CTI to set aside up to $150.0 million in assets to secure any future judgment, but the District Court did not rule on this motion. In February 2017, Mavenir Inc. became successor-in-interest to Comverse, Inc. On February 4, 2013, Verint acquired the remaining CTI shell company in a merger transaction (the “CTI Merger”). As a result of the CTI Merger, Verint assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the foregoing legal actions. However, under the terms of a Distribution Agreement entered into in connection with the Comverse Share Distribution, Verint, as successor to CTI, is entitled to indemnification from Comverse, Inc. (now Mavenir) for any losses Verint may suffer in its capacity as successor to CTI related to the foregoing legal actions. Under the Separation and Distribution Agreement we have entered into with Verint in connection with the spin-off, we agreed to indemnify Verint for our share of any losses Verint may suffer related to the foregoing legal actions either in its capacity as successor to CTI to the extent not indemnified by Mavenir or due to its former ownership of us and Cognyte IL. Following an unsuccessful mediation process, on August 28, 2016, the District Court (i) denied the plaintiffs’ motion to certify the suit as a class action with respect to all claims relating to Verint stock options and (ii) approved the plaintiffs’ motion to certify the suit as a class action with respect to claims of current or former employees of Comverse Limited (now part of Mavenir) or of Cognyte IL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case would be evaluated under New York law. As a result of this ruling (which excluded claims related to Verint stock options from the case), one of the original plaintiffs in the case, Ms. Deutsch, was replaced by a new representative plaintiff, Mr. David Vaaknin. CTI appealed portions of the District Court’s ruling to the Israeli Supreme Court. On August 8, 2017, the Israeli Supreme Court partially allowed CTI’s appeal and ordered the case to be returned to the District Court to determine whether a cause of action exists under New York law based on the parties’ expert opinions. Following two unsuccessful rounds of mediation in mid to late 2018 and in mid-2019, the proceedings resumed. On April 16, 2020, the District Court accepted plaintiffs’ application to amend the motion to certify a class action and set deadlines for filing amended pleadings by the parties. CTI submitted a motion to appeal the District Court’s decision to the Supreme Court, as well as a motion to stay the proceedings in the District Court pending the resolution of the appeal. On July 6, 2020, the Supreme Court granted the motion for a stay. On July 27, 2020, the plaintiffs filed their response on the merits of the motion for leave to appeal. On December 15, 2021, the Supreme court rejected CTI’s motion to appeal and the procedure in the district court resumed. On February 27, 2022, CTI filed its response to the amendment motion for class certification. On April 4, 2022, a pre-trial hearing was held at the District Court, and the court has scheduled dates for the continuation of the proceedings. On July 10, 2022, following another round of mediation, the parties submitted a motion for approval of a settlement agreement (the “Deutch Settlement Agreement”). According to the Deutch Settlement Agreement, subject to full and final waiver by the plaintiffs, Mavenir Inc. and/or Comverse Inc. and/or Mavenir Ltd., will pay a compensation in the total amount of $16 million. On February 7, 2023 the court approved the Deutch Settlement Agreement and the first payment thereunder was made on March 2, 2023, in the amount of $6.5 million. It is noted that the compensation amount is comprehensive, final and absolute and includes all the amounts and expenses to be paid in connection with the Deutch Settlement Agreement. Verint serves as a guarantor for the payment of the compensation amount. In January 2017, a legal action was commenced by Mr. Elad Barkan and KeySee Software Ltd. against Cognyte, Verint and Rontal Engineering Applications (2001) Ltd. (a subsidiary of Cognyte) in the Israel Central District Court alleging infringement of an Israeli patent titled “Cryptanalysis Method and System”, copyright infringement, misappropriation of trade secrets, and breach of contract. The remedies sought under such claim include compensation for damages, claim for accounts, and a permanent injunction seeking to prevent the continued alleged infringement of the patent. The defendants filed a statement of defense rejecting any and all allegations under such claim. Following a mediation process, on April 13, 2022 the parties signed a settlement agreement (the “Barkan Settlement Agreement”), whereby Cognyte undertook to pay KeySee the total amount of $6.2 million plus VAT in exchange for a complete settlement. Based on the Barkan Settlement Agreement, on May 16, 2022, the court ordered the dismissal of the claim without an order for costs. From time to time we or our subsidiaries may be involved in legal proceedings and/or litigation arising in the ordinary course of our business. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any current claims will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

RESEARCH AND DEVELOPMENT, NET

12 Months Ended

Jan. 31, 2023

Research and Development [Abstract]

RESEARCH AND DEVELOPMENT, NET

Our gross research and development expenses for the years ended January 31, 2023, 2022, and 2021, were $140.4 million, $143.7 million and $129.2 million, respectively. We had no reimbursements from the IIA and other government grant programs for the year ended January 31, 2023. Reimbursements from the IIA and other government grant programs amounted to $0.3 million and $0.5 million for the years ended January 31, 2022 and 2021, respectively, which were recorded as reductions of gross research and development expenses.

We capitalize certain costs incurred to develop our commercial software products, and we then recognize those costs within cost of software revenue as the products are available for sale. Activity for our capitalized software development costs for the

years ended January 31, 2023, 2022, and 2021, was as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Capitalized software development costs, net, beginning of year	$	13,920	$	11,315	$	11,679
Software development costs capitalized during the year	3,408		6,033		5,132
Amortization of capitalized software development costs	(4,708)		(3,291)		(3,072)
Business divestiture	(2,922)		—		—
Write-offs of capitalized software development costs	—		(142)		(2,244)
Foreign currency translation and other	8		5		(180)
Capitalized software development costs, net, end of year	$	9,706	$	13,920	$	11,315

During the year ended January 31, 2023 there were no write-offs of capitalized software development costs. During the years ended January 31, 2022 and 2021 we recorded an impairment charge of 0.1 million and 2.2 million, respectively, in software cost of revenue, reflecting the write-off of previously capitalized software development costs that were deemed non-recoverable based on our expectations of future market conditions.

SHORT TERM LOAN (Details)	1 Months Ended	12 Months Ended
SHORT TERM LOAN (Details)	Feb. 28, 2021 USD ($) facility	Jan. 31, 2023 USD ($)	Jan. 31, 2022 USD ($)
Debt Securities, Available-for-sale [Line Items]
Debt instrument, covenant, net cash, minimum	$ 10,000,000
Revolving Credit Facility \| Line of Credit
Debt Securities, Available-for-sale [Line Items]
Number of credit facilities \| facility	2
Debt instrument, term	3 years
Maximum borrowing capacity	$ 100,000,000.0
Interest expense		$ 1,600,000	$ 200,000
Unused borrowing capacity, fee		$ 300,000	$ 400,000
Covenant, consolidated equity, minimum amount	$ 200,000,000
Covenant, consolidated equity, minimum percentage of total consolidated assets	30.00%
Covenant, unrestricted cash and cash equivalents, minimum amount	$ 25,000,000
Revolving Credit Facility \| Line of Credit \| Minimum
Debt Securities, Available-for-sale [Line Items]
Commitment fee, percentage	0.55%
Revolving Credit Facility \| Line of Credit \| Minimum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Securities, Available-for-sale [Line Items]
Basis spread on variable rate	2.25%
Revolving Credit Facility \| Line of Credit \| Maximum
Debt Securities, Available-for-sale [Line Items]
Commitment fee, percentage	0.75%
Revolving Credit Facility \| Line of Credit \| Maximum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Securities, Available-for-sale [Line Items]
Basis spread on variable rate	3.15%

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jan. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of January 31, 2023 and 2022:


	January 31, 2023
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	288	$	—
Total assets	$	—	$	288	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	1,592	$	—

Total liabilities	$	—	$	1,592	$	—


	January 31, 2022
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	140	$	—
Total assets	$	—	$	140	$	—
Liabilities:
Foreign currency forward contracts	$	—	$	801	$	—

Total liabilities	$	—	$	801	$	—

Schedule of Changes in the Estimated Fair Value using Significant Unobservable Inputs



	Year Ended January 31,
(in thousands)	2023		2022
Fair value measurement, beginning of year	$	—	$	2,923

Changes in fair values, recorded in operating expenses	—		(185)
Payments of contingent consideration	—		(2,738)
Fair value measurement at end of year	$	—	$	—

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of the Effects of Derivatives Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other income (expenses), net	Other income (expenses), net	Other income (expenses), net
Foreign currency forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Net gains recognized in AOCL	$ 16	$ 1,169	$ 1,863
Net gains reclassified from AOCL into the combined statements of operations	$ (6,131)	$ 2,314	$ 1,882

REVENUE RECOGNITION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 312,062	$ 474,042	$ 443,458
Recurring revenue
Disaggregation of Revenue [Line Items]
Total revenue	197,398	230,969	223,405
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 114,664	$ 243,073	$ 220,053

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (b)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION	12 Months Ended
ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION	Jan. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION	ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION Description of Business Cognyte Software Ltd. (the “Company”, “Cognyte”, “we”, “us” and “our”) is a global leader in investigative analytics software that empowers a variety of government and other organizations with Actionable Intelligence for a Safer World™. Our open interface software is designed to help customers accelerate and improve the effectiveness of investigations and decision-making. Hundreds of customers rely on our solutions to accelerate and conduct investigations and derive insights, with which they identify, neutralize, and tackle threats to national security and address different forms of criminal and terror activities. Basis of Presentation On February 1, 2021, the spin-off of Cognyte from Verint Systems Inc. (“Verint”) was completed. Prior to the spin-off, the Company had not published stand-alone financial statements. As a result, the Company's comparative combined financial statements for the year ended as of January 31, 2021 were derived (carved-out) from the consolidated financial statements and accounting records of Verint and have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”). The preparation of the combined financial statements required management to make certain estimates and assumptions that affects the reported amounts of assets and liabilities as well as expenses. During the year ended January 31, 2021 the Company functioned as part of the larger group of companies controlled by Verint. Accordingly, Verint performed certain corporate overhead functions for the Company. Therefore, certain corporate costs, including compensation costs for corporate employees supporting the Company, have been allocated from Verint. These allocated costs are for corporate functions including, but not limited to, senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit and other shared services, which were not historically provided at the Company level. Where possible, these costs were specifically identified to the Company, with the remainder primarily allocated on the basis of revenue as a relevant measure. The combined financial statements do not necessarily include all the expenses that would have been incurred or held by the Company had it been a separate, stand-alone company, and we have incurred additional expenses as a separate, stand-alone publicly-traded company. It is not practicable to estimate actual costs that would have been incurred had the Company been a separate stand-alone company during the years ended January 31, 2021. Allocations for management costs and corporate support services provided to the Company totaled $97.3 million for the year ended January 31, 2021. The Company and Verint considered the allocations to be a reasonable reflection of the benefits received by the Company. See also Note 3, “Related Party Transactions with Verint” for further discussion. Unless noted otherwise, references to the consolidated financial statements and discussion in the notes to the consolidated financial statements also pertains to the combined, carve-out basis financial statements for the year ended January 31, 2021. The accompanying consolidated and combined financial statements include a joint venture in which we hold a 50% equity interest. The joint venture is a variable interest entity (“VIE”) in which we are the primary beneficiary as we have the power to direct the activities that are most significant to the VIE. The joint venture’s activities primarily include promoting transactions with end customers as well as negotiating their commercial terms, providing local technical support and interfacing with customers. The noncontrolling interest in the less than wholly owned subsidiary is reflected within equity in our consolidated balance sheets, but separately from our equity. Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment. COVID-19 Pandemic The COVID-19 pandemic has reached all of the regions in which we do business. Companies around the world, including us, our customers, partners, and vendors, have implemented actions in response, including among others, office closings, site restrictions, and employee travel restrictions. We have seen an improvement in the business environment in 2022 after an initial downturn in early 2020 and 2021; however, during these years, our revenue was negatively impacted by delays and reduced spending attributed to the impact of the COVID-19 pandemic on our customers’ operational priorities and as a result of cost containment measures that they have implemented. Many of our customers are government agencies, and their budgets have been and may continue to be impacted due to the efforts taken to combat the pandemic and the economic consequences resulting therefrom. If some of our government customers experience budget shortfalls, they may decide to forgo using our services. Furthermore, an additional regional or global health epidemic or pandemic, including variants of COVID-19, as well as the implementation of measures attempting to contain and mitigate the effects of such epidemic or pandemic, may disrupt our operations and reduce demand for our products and services. In addition, as a result of the COVID-19 pandemic, we have implemented a hybrid working model whereby some of our employees are working a portion or all of their time remotely. It is possible that widespread remote work arrangements may have a negative impact on our operations, the execution of our business plans, the productivity and availability of key personnel and other employees necessary to conduct our business, and on third-party service providers who perform critical services for us, or otherwise cause operational failures due to changes in our normal business practices. The increase in remote working may also result in increased privacy, data security, and fraud risks, and our understanding of applicable legal and regulatory requirements, as well as the latest guidance from regulatory authorities in connection with the COVID-19 pandemic, may be subject to legal or regulatory challenges, particularly as regulatory guidance evolves in response to future developments. Such risks could materially and adversely affect our business and results of operations. War in Europe On February 24, 2022, a full-scale military invasion of Ukraine by Russian troops was reported. Russia’s military actions against Ukraine have led to an unprecedented expansion of export restrictions and sanctions imposed by the United States, the European Union, the United Kingdom, and numerous other countries against Russia and Belarus. In addition, Russian authorities have imposed significant currency control measures, other sanctions and imposed other economic and financial restrictions. The situation is rapidly evolving, and further sanctions and export restrictions could negatively impact the global economy and financial markets and could adversely affect our business. The length and impact of the ongoing military conflict is highly unpredictable, and has led to and could continue creating market disruptions, including significant volatility in commodity prices, credit and capital markets, restrictions on international trade as well as supply chain interruptions. We are continuing to monitor the situation in Ukraine and assessing its potential impact on our business. While we do not trade with any Russian or Belarusian governmental agencies or with any of the entities which are subject to sanctions, any of the above-mentioned factors could adversely affect our business, prospects, financial condition, and operating results and/or exacerbate other risks highlighted in this Annual Report. The extent and duration of the military action, sanctions and resulting market disruptions are currently impossible to predict, but could be substantial. Additionally, disruptive impacts of the conflict on other countries in Eastern Europe, including Bulgaria and Romania, where we have operations and facilities, could be prolonged, which may require us to reevaluate our operations there and/or otherwise harm our business. In addition, in response to the armed conflicts, governments may allocate budgets to military or other immediate needs, at the expense of our solutions.

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Jan. 31, 2023

Schedule of Components of Costs of Services

The components of the costs of services allocated to the Company for the year ended January 31, 2021 are as follows:


	Year Ended January 31,
(in thousands)	2021
Cost of revenue:
Software	$	1,981
Software service	1,548
Professional service and other	2,743

Research and development, net	21,783
Selling, general and administrative	69,210
Total allocated corporate expenses	$	97,265

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Supplemental Information Regarding Consolidated Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Condensed Financial Information Disclosure [Abstract]
Cash paid for interest	$ 1,978	$ 470	$ 38
Cash payments of income taxes, net	11,284	8,232	1,260
Non-cash investing and financing transactions:
Accrued cash dividends payable to parent	0	0	35,000
Accrued but unpaid purchases of property and equipment	972	1,166	2,636
Inventory transfers to property and equipment	$ 1,474	$ 537	$ 894

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Long-term restricted cash and time deposits	$ 203	$ 2,488
Capitalized software development costs, net	9,706	13,920	$ 11,315	$ 11,679
Deferred commissions	2,339	1,897
Long-term deferred cost of revenue	127	525
Long-term security deposits	6	716
Noncontrolling investments accounted under ASC 321	7,046	5,162
Other	534	1,021
Total other assets	$ 19,961	$ 25,729

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Revenue:
Total revenue	$ 312,062	$ 474,042	$ 443,458
Cost of revenue:
Amortization of acquired technology	619	682	943
Total cost of revenue	119,935	132,399	132,669
Gross profit	192,127	341,643	310,789
Operating expenses:
Research and development, net	140,324	143,360	128,705
Selling, general and administrative	154,347	185,867	162,590
Amortization of other acquired intangible assets	779	1,455	1,218
Total operating expenses	295,450	330,682	292,513
Operating (loss) income	(103,323)	10,961	18,276
Other income (expense), net:
Interest income	774	177	1,347
Interest expense	(1,597)	(196)	(185)
Other income (expenses), net	7,151	(2,681)	5,286
Total other income (expense), net	6,328	(2,700)	6,448
(Loss) income before provision for income taxes	(96,995)	8,261	24,724
Provision for income taxes	12,956	18,517	4,414
Net (loss) income	(109,951)	(10,256)	20,310
Net income attributable to noncontrolling interest	4,181	4,634	6,107
Net (loss) income attributable to Cognyte Software Ltd.	$ (114,132)	$ (14,890)	$ 14,203
Net (loss) income per share attributable to Cognyte Software Ltd.:
Basic (in dollars per share)	$ (1.68)	$ (0.22)	$ 0.22
Diluted (in dollars per share)	$ (1.68)	$ (0.22)	$ 0.22
Weighted-average shares outstanding:
Basic (in shares)	67,924	66,570	65,773
Diluted (in shares)	67,924	66,570	65,773
Software
Revenue:
Total revenue	$ 98,288	$ 209,988	$ 187,236
Cost of revenue:
Cost of revenue	19,975	28,955	35,647
Software service
Revenue:
Total revenue	175,690	201,563	190,013
Cost of revenue:
Cost of revenue	48,400	46,413	44,893
Professional service and other
Revenue:
Total revenue	38,084	62,491	66,209
Cost of revenue:
Cost of revenue	$ 50,941	$ 56,349	$ 51,186

INCOME TAXES

12 Months Ended

Jan. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income (loss) before provision for income taxes for the years ended January 31, 2023, 2022, and 2021 were as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
U.S.	$	(18,240)	$	(9,596)	$	(8,665)
Non-U.S.	(78,755)		17,857		33,389
Total income before provision for income taxes	$	(96,995)	$	8,261	$	24,724

The provision for income taxes for the years ended January 31, 2023, 2022, and 2021 consisted of the following:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Current provision (benefit) for income taxes:
U.S. Federal	$	5,161	$	—	$	(1,434)
U.S. State	204		(11)		(44)
Non-U.S.	7,546		12,668		8,087
Total current provision (benefit) for income taxes	12,911		12,657		6,609
Deferred provision (benefit) for income taxes:
U.S. Federal	2,155		(1,143)		(910)
U.S. State	(414)		53		(200)
Non-U.S.	(1,696)		6,950		(1,085)
Total deferred provision (benefit) for income taxes	45		5,860		(2,195)
Total provision for income taxes	$	12,956	$	18,517	$	4,414

Although Cognyte is organized as an Israeli limited company, on November 24,2020 Verint obtained a U.S. Tax Ruling that Cognyte will be treated as a United States corporation for U.S. federal income tax purposes. The reconciliation of the U.S. federal statutory rate to our effective tax rate on income before provision for income taxes for the years ended January 31, 2023, 2022, and 2021 was as follows:


	Year Ended January 31,
(dollars in thousands)	2023			2022			2021
U.S. federal statutory income tax rate	21.0		%	21.0		%	21.0		%

Income tax provision at the U.S. federal statutory rate	$	(20,369)		$	1,735		$	5,192
U.S. State income tax (benefit) provision	(156)			40			(226)
Non-U.S. tax rate differential	8,636			2,892			(2,836)
Tax incentives	(158)			(2,671)			(139)
Valuation allowances	7,450			12,731			31
Non-deductible expenses/non-taxable income	491			255			(261)
Business divestiture	7,372			—			—
Tax contingencies	6,286			2,056			1,184
Stock based and other compensation	1,102			898			101
U.S. tax effects of non-U.S. operations	2,316			540			1,001
Other, net	(14)			41			367
Total provision for income taxes	$	12,956		$	18,517		$	4,414
Effective income tax rate	(13.4)		%	224.1		%	17.9		%

The change in gross unrecognized tax benefits during fiscal year 2023 includes an uncertain tax position that should have been recognized beginning in fiscal year 2019. The net unrecognized tax benefit associated with this uncertain tax position amounted to $4.7 million as of January 31, 2023, which has been recognized as an out-period-correction in the fourth quarter of fiscal year January 31, 2023. In addition, as disclosed in Note “17. COMMITMENTS AND CONTINGENCIES”, since the uncertain tax position originated prior to the Spin-Off Date, we have indemnified Verint for this amount under the Tax Matters Agreement between Verint and Cognyte that became effective on the Spin-Off Date. The rollover impact of this out-of-period correction was not material, individually or in the aggregate, to any of the Company’s previously reported net income (loss), comprehensive income (loss), or basic and fully diluted earnings (loss) per common share.

Our operations in Israel have been granted “Approved Enterprise” (“AE”) status by the Investment Center of the Israeli Ministry of Industry, Trade and Labor, and “Beneficial Enterprise” (“BA”) (after the 2005 Amendment) which makes us eligible for tax benefits under the Israeli Law for Encouragement of Capital Investments, 1959 (the “Investment Law”). Under the terms of the programs, income attributable to an “AE” or “BA” is exempt from income tax for a period of two years and is subject to a reduced income tax rate for the subsequent five to eight years, depending on the geographic location of the enterprise in Israel (generally 10% - 25%, depending on the percentage of non-Israeli investment in the company). Pursuant to Amendment 73 to the Investment Law adopted in 2017, a company located in the center of Israel which meets the conditions for Preferred Technological Enterprise (“PTE”), is subject to a 12% tax rate on the eligible income. Income not eligible for PTE benefits is taxed at the regular corporate income tax rate of 23%. We have examined the impact of Amendment 73 and the degree to which we will qualify as a PTE and have elected to adopt it to the extent we will generate taxable income as of January 31, 2021 onwards in which case we will enjoy reduced corporate tax rate of 12% on income that qualifies as “Preferred Technological Income”. In addition, certain operations in Cyprus qualify for favorable tax treatment under the Cypriot Intellectual Property Regime (“IP Regime”). This legislation exempts 80% of income and gains derived from patents, copyrights, and trademarks from taxation. These tax incentives decreased our effective tax rate by 0.1%, 32.3% and 0.6% for the years ended January 31, 2023, 2022, and 2021, respectively.

Deferred tax assets and liabilities consisted of the following at January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Deferred tax assets:
Loss carryforwards	$	16,219	$	11,506
Accrued compensation	10,535		8,774
Accrued expenses	332		240
Operating lease liabilities	59		352
Exchange rate differences	105		343
Other, net	—		241
Total deferred tax assets	27,250		21,456
Deferred tax liabilities:
Deferred cost of revenue	(1,784)		(3,279)
Goodwill and other intangible assets	(692)		(928)
Depreciation of property and equipment	(150)		(217)
Operating lease right-of-use assets	(59)		(355)
Other, net	(747)		—
Total deferred tax liabilities	(3,432)		(4,779)
Valuation allowance	(26,026)		(18,576)
Net deferred tax liabilities	$	(2,208)	$	(1,899)

Recorded as:
Deferred tax assets	$	823	$	1,548
Deferred tax liabilities	(3,031)		(3,447)
Net deferred tax liabilities	$	(2,208)	$	(1,899)

For the purposes of periods prior to the spin-off, the Company’s income tax provision was calculated using the separate return basis, as if the Company filed separate tax returns. Since the spin-off, certain changes in the deferred tax balances, particularly related to stock-based compensation items included in accrued compensation, are primarily attributable to basis differences that existed on a separate return basis for the historical periods. Changes between the historical periods presented on a separate return basis were settled through the former net parent investment immediately prior to the spin-off.

We had net operating loss carryforwards of approximately $131.8 million as at January 31, 2023, of which $0.4 million related to U.S. carryforwards and $131.4 million related to non-U.S. carryforwards.

We currently intend to continue to indefinitely reinvest the earnings of our non-U.S. subsidiaries to finance non-U.S. activities to the extent distributions would result in an incremental tax cost. We have not provided tax on the outside basis difference of non-U.S. subsidiaries nor have we provided for any additional withholding or other tax that may be applicable should a future distribution be made from any unremitted earnings of non-U.S. subsidiaries. Due to complexities in the laws of the non-U.S. jurisdictions and the assumptions that would have to be made, it is not practicable to estimate the total amount of income and withholding taxes that would have to be provided on such earnings.

As required by the authoritative guidance on accounting for income taxes, we evaluate the realizability of deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes guidance requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Management assesses positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, we establish a valuation allowance.

A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended January 31, 2023 for our major operations in Israel. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of January 31, 2023, a valuation allowance of $7.5 million has been recorded against the deferred tax assets that we do not believe are more likely than not to be realized in the foreseeable future. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth. We have recorded valuation allowances in the amount of $26.0 million and $18.6 million at January 31, 2023 and 2022, respectively.

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2023 and 2022:


	Year Ended January 31,
(in thousands)	2023		2022
Valuation allowance, beginning of year	$	(18,576)	$	(5,732)
Income tax (provision)	(7,450)		(12,731)
Spin-off from Verint	—		(113)
Valuation allowance, end of year	$	(26,026)	$	(18,576)

In accordance with the authoritative guidance on accounting for uncertainty in income taxes, differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements, determined by applying the prescribed methodologies of accounting for uncertainty in income taxes, represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets.

For the years ended January 31, 2023, 2022, and 2021 the aggregate changes in the balance of gross unrecognized tax benefits were as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Gross unrecognized tax benefits, beginning of year	$	10,517	$	9,872	$	8,742
Increases related to tax positions taken during the current year	1,717		1,828		2,919

Increases related to tax positions taken during prior years	—		—		18
(Decreases) increases related to foreign currency exchange rates	(828)		256		272
Reductions for spin-off from Verint	—		(1,439)		—
Reductions for tax positions of prior years	—		—		(537)

Lapses of statutes of limitations	(513)		—		(1,542)
Gross unrecognized tax benefits, end of year	$	10,893	$	10,517	$	9,872

As of January 31, 2023, we had $10.9 million of unrecognized tax benefits, all of which, if recognized, would impact the effective income tax rate in future periods. We recorded $0.6 million, $0.4 million and $(0.1) million of net tax expense for interest and penalties related to uncertain tax positions in our provision for income taxes for the years ended January 31, 2023, 2022, and 2021, respectively. Accrued liabilities for interest and penalties were $1.4 million and $0.9 million at January 31, 2023 and 2022, respectively. Interest and penalties (expense and/or benefit) are recorded as a component of the provision for income taxes in the consolidated financial statements.

Our income tax returns are subject to ongoing tax examinations in several jurisdictions in which we operate. In Israel, we are no longer subject to income tax examination for years prior to January 31, 2019. In the U.S., our federal returns are no longer subject to income tax examination for years prior to January 31, 2020.

We regularly assess the adequacy of our provisions for income tax contingencies. As a result, we may adjust the reserves for unrecognized tax benefits for the impact of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities, and lapses of statutes of expiration. We believe that it is reasonably possible that the total amount of unrecognized tax benefits at January 31, 2023 could decrease by approximately $3.1 million in the next twelve months as a result of settlement of certain tax audits or lapses of statutes of limitation. Such decreases may involve the payment of additional taxes, the adjustment of certain deferred taxes including the need for additional valuation allowances and the recognition of tax benefits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

LEASES (Tables)

12 Months Ended

Jan. 31, 2023

Leases [Abstract]

Schedule of Components of Lease Expenses

The components of lease expenses for the years ended January 31, 2023 and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2023		2022
Operating lease expenses	$	8,241	$	9,552




Variable lease expenses	6,430		5,566
Short-term lease expenses	225		213

Total lease expenses	$	14,896	$	15,331

Schedule of Supplemental Cash Flow Information Related to Leases

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,272		$	8,733


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,240		$	3,756

Weighted average remaining lease terms
Operating leases	3 years			4 years

Weighted average discount rates
Operating leases	4.8		%	4.8		%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of January 31, 2023 were as follows:


	January 31, 2023
(in thousands)	Operating Leases
Year Ending January 31,
2024	$	7,487
2025	6,869
2026	4,486
2027	213
2028	5

Total future minimum lease payments	19,060
Less imputed interest	(2,088)
Total	$	16,972

Reported as of January 31, 2023:
Accrued expenses and other current liabilities	$	6,604
Operating lease liabilities	10,368

Total	$	16,972

INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Jan. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Finite-Lived Intangible Assets

Acquisition-related intangible assets consisted of the following as of January 31, 2023 and 2022:


	January 31, 2023
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	61,058	$	(61,058)	$	—
Customer relationships	3,550		(3,002)		549
Trade names	805		(704)		101
Distribution network	2,000		(2,000)		—

Total intangible assets	$	67,413	$	(66,764)	$	650


	January 31, 2022
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	64,150	$	(62,909)	$	1,241
Customer relationships	4,166		(2,913)		1,253
Trade names	1,158		(876)		282
Distribution network	2,000		(2,000)		—
Non-competition agreements	1,307		(921)		386
Total intangible assets	$	72,781	$	(69,619)	$	3,162

Schedule of Estimated Future Amortization Expense on Acquired Intangibles

Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows:


(in thousands)
Years Ending January 31,	Amount
2024	$	362
2025	$	288

Total	$	650

Schedule of Goodwill Activity

The change in the net carrying amount of goodwill activity for the years ended January 31, 2023 and 2022 was as follows:



(in thousands)	Amount









Goodwill at January 31, 2021	$	158,183
Foreign currency translation	50
Goodwill at January 31, 2022	$	158,233



Business divestiture	(31,865)
Foreign currency translation	119
Goodwill at January 31, 2023	$	126,487

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Jan. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL Acquisition-related intangible assets consisted of the following as of January 31, 2023 and 2022:


	January 31, 2023
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	61,058	$	(61,058)	$	—
Customer relationships	3,550		(3,002)		549
Trade names	805		(704)		101
Distribution network	2,000		(2,000)		—

Total intangible assets	$	67,413	$	(66,764)	$	650


	January 31, 2022
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	64,150	$	(62,909)	$	1,241
Customer relationships	4,166		(2,913)		1,253
Trade names	1,158		(876)		282
Distribution network	2,000		(2,000)		—
Non-competition agreements	1,307		(921)		386
Total intangible assets	$	72,781	$	(69,619)	$	3,162

Total amortization expense recorded for acquisition-related intangible assets was $1.4 million, $2.1 million and $2.2 million for the years ended January 31, 2023, 2022, and 2021, respectively.

Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows:


(in thousands)
Years Ending January 31,	Amount
2024	$	362
2025	$	288

Total	$	650

We recorded $0.7 million of impairments for certain acquired technology assets, which is included within software cost of revenue and selling, general and administrative expenses of $0.6 million and $0.1 million, respectively, for the year ended January 31, 2023. No impairments of acquired intangible assets were recorded during the year ended January 31, 2022. We recorded $0.3 million of impairments for certain acquired technology assets, which is included within software cost of revenue and professional service and other cost of revenue of $0.2 million and $0.1 million, respectively, for the year ended January 31, 2021.

The change in the net carrying amount of goodwill activity for the years ended January 31, 2023 and 2022 was as follows:



(in thousands)	Amount









Goodwill at January 31, 2021	$	158,183
Foreign currency translation	50
Goodwill at January 31, 2022	$	158,233



Business divestiture	(31,865)
Foreign currency translation	119
Goodwill at January 31, 2023	$	126,487

During the year ended January 31, 2023, the Company divested a portion of its business, as described in Note 7. As a result, the Company allocated a portion of its total goodwill to the divested business, based on the relative fair value associated with the divested business, in the amount of $31.9 million.

No goodwill impairment was identified for the years ended January 31, 2023, 2022 and 2021.

CONTINGENT CONSIDERATION ASSOCIATED WITH BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Business Acquisition
Change in fair value of contingent consideration for business combinations	$ 0	$ (134)	$ (3,665)
Payments of contingent consideration for business combinations	$ 0	2,738	4,877
Selling, general and administrative
Business Acquisition
Change in fair value of contingent consideration for business combinations		$ (200)	$ (3,700)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 31, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less.

Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits

Restricted cash and cash equivalents, and restricted bank time deposits are mainly pledged as collateral for performance guarantees.

Investments

Our investments generally consist of bank time deposits with remaining maturities in excess of 90 days at the time of purchase. We held no marketable debt securities at January 31, 2023 and 2022. Investments with maturities in excess of one year are included in other assets.

Accounts Receivable, net

Trade accounts receivable are comprised of invoiced amounts due from customers for which we have an unconditional right to collect and are not interest-bearing. Credit is extended to customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, bank time deposits, short-term investments, accounts receivable, and contract assets. We invest our cash in bank accounts and bank time deposits. By policy, we seek to limit credit exposure on investments through diversification and by restricting our investments to highly rated securities.

We grant credit terms to our customers in the ordinary course of business. Concentrations of credit risk with respect to accounts receivable and contract assets are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas. We have both direct and indirect contracts with two governments outside the United States, that combined accounted for $54.2 million and $80.1 million of our aggregated accounts receivable and contract assets, at January 31, 2023 and 2022, respectively. We believe our contracts with these governments present insignificant credit risk.

Allowance for Credit Losses

We adopted Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments on February 1, 2020. ASU No. 2016-13 requires us to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. Our allowance for credit losses is estimated based on an analysis of the aging of our accounts receivable and contract assets, historical write-offs, customer payment patterns, individual customer creditworthiness, current economic trends, reasonable and supportable forecasts of future economic conditions, and/or establishment of specific reserves for customers in adverse financial condition. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. We assess the adequacy of the allowance for credit losses on a quarterly basis.

The following table summarizes the activity in our credit losses for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Allowance for credit losses, beginning of year	$	2,110	$	4,559	$	4,085
Cumulative effect of adoption of ASU No. 2016-13	—		—		435
Provisions charged to expense	2,824		342		1,840
Amounts written off	(3,080)		(2,791)		(1,922)
Business divestiture	(308)		—		—
Other, including fluctuations in foreign exchange rates	37		—		121
Allowance for credit losses, end of year	$	1,583	$	2,110	$	4,559

Our estimated expected credit losses associated with contract assets were not material as historical write-offs have been insignificant.

Inventories

Inventories are stated at the lower of cost or market. Cost is determined using the weighted-average method of inventory accounting. The valuation of our inventories requires us to make estimates regarding excess or obsolete inventories, including making estimates of the future demand for our products. Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated changes in demand, price, or technological developments could have a significant impact on the value of our inventory and reported operating results. Charges for excess and obsolete inventories are included within cost of revenue.

Property and Equipment, net

Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method based over the estimated useful lives of the assets. The vast majority of equipment, furniture and other is depreciated over periods ranging from three to six years. Software is typically depreciated over a period of four years. Buildings are typically depreciated over twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease term. Finance leased assets are amortized over the related lease term.

The cost of maintenance and repairs of property and equipment is charged to operations as incurred. When assets are retired or disposed of, the cost and accumulated depreciation or amortization thereon are removed from the consolidated balance sheet and any resulting gain or loss is recognized in the consolidated statement of operations.

Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is

evaluated regularly by the enterprise’s chief operating decision maker (“CODM”), or decision making group, in deciding how

to allocate resources and in assessing performance. We evaluated segment reporting in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting. We concluded that we operate in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the CODM to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products.

Goodwill and Other Acquired Intangible Assets

For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill.

We test goodwill for impairment at the reporting unit level on an annual basis usually as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist.

We operate as one reporting unit. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we elect to bypass a qualitative assessment, or if our qualitative assessment indicates that goodwill impairment is more likely than not, we perform quantitative impairment testing. If our quantitative testing determines that the carrying value of the reporting unit exceeds its fair value, goodwill impairment is recognized in an amount equal to that excess, limited to the total goodwill allocated to our reporting unit.

We utilize some or all of three primary approaches to assess the fair value of a reporting unit: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using valuation multiples of comparable companies, and (c) a transaction-based approach, using valuation multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of our reporting unit is based on a number of subjective factors, including: (a) appropriate consideration of valuation approaches (income approach, comparable public company approach, and comparable transaction approach), (b) estimates of future growth rates, (c) estimates of our future cost structure, (d) discount rates for our estimated cash flows, (e) selection of peer group companies for the public company and the market transaction approaches, (f) required levels of working capital, (g) assumed terminal value, and (h) time horizon of cash flow forecasts.

Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, and non-competition agreements. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of 7 years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.

Fair Value Measurements

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This fair value hierarchy consists of three levels of inputs that may be used to measure fair value:

•Level 1: quoted prices in active markets for identical assets or liabilities;

•Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or

•Level 3: unobservable inputs that are supported by little or no market activity.

We review the fair value hierarchy classification of our applicable assets and liabilities at each reporting period. Changes in the observability of valuation inputs may result in transfers within the fair value measurement hierarchy.

Fair Values of Financial Instruments

Our recorded amounts of cash and cash equivalents, restricted cash and cash equivalents, and restricted bank time deposits, accounts receivable, contract assets, contract liabilities, short term loan, investments, and accounts payable approximate fair value, due to the short-term nature of these instruments. We measure certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.

Derivative Financial Instruments

The Company accounts for derivatives and hedging based on ASC 815, Derivatives and Hedging, which requires recognizing all derivatives on the balance sheet at fair value. If the derivatives meet the definition of a cash flow hedge and are so designated, depending on the nature of the hedge, the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period, or periods, during which the hedged transaction affects earnings.

As part of our risk management strategy, when considered appropriate, we use derivative financial instruments including foreign currency forward contracts to hedge against certain foreign currency exposure. Our intent is to mitigate gains and losses caused by the underlying exposures with offsetting gains and losses on the derivative contracts. By policy, we do not enter into speculative positions with derivative instruments.

To protect against the increase in value of expected foreign currency cash flows resulting mainly from salaries and related benefits paid in NIS during the year, the Company hedges portions of its anticipated payroll denominated in NIS for a period of one to twelve months with forward contracts (the “Hedging Contracts”). Accordingly, when the USD strengthens against the NIS, the decline in present value of future NIS currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely, when the USD weakens against the NIS, the increase in the present value of future NIS expenses is offset by gains in the fair value of the Hedging Contracts. These Hedging Contracts are designated as cash flow hedges.

We also periodically utilize foreign currency forward contracts to manage exposures resulting from expected customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency.

The counterparties to our derivative financial instruments consist of two major financial institutions. We regularly monitor the financial strength of these institutions. While the counterparties to these contracts expose us to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. We do not anticipate any such losses.

Revenue Recognition

We account for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). For additional details please refer to note 4, “Revenue Recognition”.

Cost of Revenue

Our cost of revenue includes costs of materials, compensation and benefit costs for operations and service personnel, subcontractor costs, royalties and license fees related to third-party software included in our products and third-party SaaS providers, cloud infrastructure costs, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, travel expenses associated with provision of installation, training, consulting and development services resources dedicated to project management and an allocation of overhead costs, such as facility, information technology, operations costs, and other overhead expenses. Costs that relate to materials and royalties are generally expensed upon shipment and costs related to travel, subcontractors, and personnel and related expenses are generally expensed as incurred in the period in which the personnel related services are performed. Refer to Note 4, “Revenue Recognition” under the heading “Costs to Obtain and Fulfill Contracts” for further details regarding customer contract costs.

Research and Development, net

With the exception of certain software development costs, all research and development costs are expensed as incurred, and consist primarily of personnel and consulting costs, travel, depreciation of research and development equipment, and related overhead and other costs associated with research and development activities.

We receive non-refundable grants from the Israeli Innovation Authority (“IIA”) that fund a portion of our research and development expenditures. We have elected to enter only into non-royalty-bearing arrangements with the IIA which do not require us to pay royalties. Funds received from the IIA are recorded as a reduction to research and development expense. Royalties, to the extent paid, are recorded as part of our cost of revenue.

We also periodically derive benefits from participation in certain government-sponsored programs in other jurisdictions, for the support of research and development activities conducted in those locations.

Software Development Costs

Costs incurred to acquire or develop software to be sold, leased or otherwise marketed are capitalized after technological feasibility is established, and continue to be capitalized through the general release of the related software product. Amortization of capitalized costs begins in the period in which the related product is available for general release to customers and is recorded on a straight-line basis, which approximates the pattern in which the economic benefits of the capitalized costs are expected to be realized, over the estimated economic lives of the related software products, generally over a period of up to 6 years.

Internal-Use Software

We capitalize costs associated with software that is acquired, internally developed or modified solely to meet our internal needs. Capitalization begins when the preliminary project stage has been completed and management with the relevant authority authorizes and commits to the funding of the project. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs continues until the project is substantially complete and is ready for its intended purpose. Capitalized costs of computer software developed for internal use are generally amortized over estimated useful lives of four to five years on a straight-line basis, which best represents the pattern of the software’s use.

We capitalize integration and testing costs incurred from implementing cloud computing hosting arrangements that are service contracts at the application development stage. Capitalized costs are amortized on a straight-line basis over the term of each arrangement.

Income Taxes

Prior to the spin-off, the Company’s operations were included in the consolidated U.S. federal and certain state, local and foreign income tax returns filed by Verint. For the purposes of periods prior to the spin-off, the Company’s income tax provision was calculated using the separate return basis, as if the Company filed separate tax returns. Since the spin-off, certain changes in the tax balances are primarily attributable to tax carryforwards and other basis differences that existed on a separate return basis for the historical periods. Changes between the historical periods presented on a separate return basis were settled through the former net parent investment immediately prior to the spin-off.

We account for income taxes under the asset and liability method which includes the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our consolidated financial statements. Under this approach, deferred taxes are recorded for the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus deferred taxes. Deferred taxes result from differences between the financial statement and tax bases of our assets and liabilities, and are adjusted for changes in tax rates and tax laws when changes are enacted. The effects of future changes in income tax laws or rates are not anticipated.

We are subject to income taxes in Israel, the United States and numerous foreign jurisdictions. The calculation of our income tax provision involves the application of complex tax laws and requires significant judgment and estimates. We evaluate the realizability of our deferred tax assets for each jurisdiction in which we operate at each reporting date, and establish valuation allowances when it is more likely than not that all or a portion of our deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the same character and in the same jurisdiction. We consider all available positive and negative evidence in making this assessment, including, but not limited to, the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. In circumstances where there is sufficient negative evidence indicating that our deferred tax assets are not more-likely-than-not realizable, we establish a valuation allowance.

We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more-likely-than-not sustainable, based solely on their technical merits, upon examination and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position as the largest amount that we believe is more-likely-than-not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets. Our policy is to include interest (expense and/or income) and penalties related to unrecognized income tax benefits as a component of the provision for income taxes.

Functional Currencies and Foreign Currency Transaction Gains and Losses

Our functional currency, and the functional currency of most of our subsidiaries, is the U.S. dollar, although we have some subsidiaries with functional currencies that are their local currency.

Transactions denominated in currencies other than a functional currency are converted to the functional currency on the transaction date, and any resulting assets or liabilities are further remeasured at each reporting date and at settlement. Gains and losses recognized upon such remeasurements are included within Other income (expenses), net in the consolidated statements of operations. We recorded net foreign currency losses of $0.1 million, net foreign currency losses of $3.1 million and net foreign currency gains of $1.7 million for the years ended January 31, 2023, 2022, and 2021, respectively.

For consolidated reporting purposes, in those instances where a subsidiary has a functional currency other than the U.S. dollar, revenue and expenses are translated into U.S. dollars using average exchange rates for the reporting period, while assets and liabilities are translated into U.S. dollars using period-end rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income or loss in the accompanying consolidated balance sheets.

Stock-Based Compensation

Certain Company employees participate in a stock-based compensation plan sponsored by Cognyte. Awards granted under the plan are based on Cognyte’s common shares and, as such, are included in Additional Paid in Capital. The Company accounts for share-based compensation under ASC 718, Compensation - Stock Compensation, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations. The Company estimates forfeitures to be estimated at the time of grant, and revised if necessary in subsequent periods, if actual forfeitures differ from those estimates.

The Company recognizes compensation expenses for the value of its awards, which vest in tranches based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. For performance-based share units, the Company

recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the accelerated attribution method over the requisite service period. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts compensation cost based on its probability assessment.

Leases

We determine if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on our consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. Our leases do not provide an implicit interest rate. We calculate the incremental borrowing rate to reflect the interest rate that we would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider our historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which we account for as a single lease component. Some of our leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index updates are recorded as rent expense in the period incurred. We have elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases on our ROU assets and lease liabilities was not material. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, we do not have any related party leases.

Legal Contingencies

From time to time, the Company becomes involved in legal proceedings or is subject to claims arising in its ordinary course of business. Such matters are generally subject to many uncertainties and outcomes that are not predictable with certainty. The Company accrues for contingencies when the loss is probable, and it can reasonably estimate the amount of any such loss. Loss contingencies considered to be remote by the Company are generally not disclosed unless material. The respective legal fees are expensed as incurred.

Tax indemnification

Income tax indemnifications are contractual arrangements established between two parties whereby one party will reimburse the other for income taxes paid to a taxing authority related to tax positions that arose (typically) prior to a transaction. If we are a primary obligor to the taxing authority, we should account for any tax exposure pursuant to the uncertain tax provision guidance of ASC 740. If we are not a primary obligor to the taxing authority, we should account for the tax risk pursuant to ASC 460, Guarantees, which requires the use of the greater of the fair value of the indemnity or the contingent liability required to be recognized under ASC 450, Contingencies.

In accordance with the Tax Matters Agreement entered between the Company and Verint in conjunction with the spin-off, the Company has an indemnification obligation to Verint with respect to some or all of the resulting tax to Verint under the Tax Matters Agreement. Following the spin-off, the Company is obligated to indemnify Verint, which is the primary obligor to the taxing authority for the GILTI calculation, and accordingly the Company recorded in the fiscal year that ended in January 31, 2023 a tax indemnification pursuant of ASC 460, Guarantees (ASC 460).

Business Combinations

The Company accounts for business combinations in accordance with ASC 805, Business Combinations. ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over the purchase price is allocated to goodwill and any subsequent changes in estimated contingencies are recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in changes in acquired income tax positions are recognized in earnings.

Acquisition related costs are expensed to the consolidated statements of operations in the periods incurred.

Recent Accounting Pronouncements

New Accounting Pronouncements Recently Adopted

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance is effective for all entities as of March 12, 2020 through December 31, 2024. The adoption of this guidance does not have a material impact on the Company’s consolidated financial results of operations, financial position or cash flows.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes and is meant to simplify and reduce the cost of accounting for income taxes. This standard is effective for annual reporting periods beginning after December 15, 2021, and interim reporting periods within annual reporting periods beginning after December 15, 2022. The adoption of this guidance does not have a material impact on the Company’s consolidated financial results of operations, financial position or cash flows.

New Accounting Pronouncements Not Yet Effective

In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In September 2022, the FASB issued ASU 2022-04 Liabilities — Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations (Subtopic 405-50). This guidance is intended to address requests from stakeholders for information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity, and cash flows. The guidance is effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information requirement, which is effective for the fiscal years beginning after December 15, 2023.

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Total Cognyte Software Ltd. Equity	Total Cognyte Software Ltd. Equity Cumulative Effect, Period of Adoption, Adjustment	Total Cognyte Software Ltd. Equity Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjusted Balance	Former Net Parent Investment	Former Net Parent Investment Cumulative Effect, Period of Adoption, Adjustment	Former Net Parent Investment Cumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance	Non-controlling Interest	Non-controlling Interest Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance at Jan. 31, 2020	$ 455,171	$ (446)	$ 454,725	$ 444,544	$ (446)	$ 444,098	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 458,467	$ (446)	$ 458,021	$ (13,923)	$ (13,923)	$ 10,627	$ 10,627
Increase (Decrease) in Stockholders' Equity
Net income (loss)	20,310			14,203											14,203					6,107
Other comprehensive (loss) income	(1,270)			(1,582)														(1,582)		312
Dividends to noncontrolling interest	(4,176)																			(4,176)
Cash dividends declared payable to parent	(35,000)			(35,000)											(35,000)
Net transfers to parent	(164,218)			(164,218)											(164,218)
Ending balance at Jan. 31, 2021	$ 270,371			257,501			0		0		0		0		273,006			(15,505)		12,870
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update [Extensible List]	Accounting Standards Update 2016-13 [Member]
Spin-off from Verint	$ 9,558			9,558											9,558
Net income (loss)	(10,256)			(14,890)									(14,890)							4,634
Other comprehensive (loss) income	(1,388)			(1,174)														(1,174)		(214)
Reclassification of former net parent investment	0								282,564						(282,564)
Share-based compensation activity	34,323			34,323					34,142		181
Repurchase of shares	(181)			(181)							(181)
Dividends to noncontrolling interest	(3,338)																			(3,338)
Ending balance at Jan. 31, 2022	299,089			285,137			0		316,706		0		(14,890)		0			(16,679)		13,952
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(109,951)			(114,132)									(114,132)							4,181
Other comprehensive (loss) income	1,811			1,365														1,365		446
Share-based compensation activity	21,759			21,759					21,759
Dividends to noncontrolling interest	(2,934)																			(2,934)
Ending balance at Jan. 31, 2023	$ 209,774			$ 194,129			$ 0		$ 338,465		$ 0		$ (129,022)		$ 0			$ (15,314)		$ 15,645

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS (Tables)

12 Months Ended

Jan. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Recognized Stock-based Compensation Expense

We recognized stock-based compensation expense in the following line items on the consolidated statements of operations for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Component of income before provision for income taxes:
Cost of revenue:
Software	$	229	$	229	$	734
Software service	1,078		1,160		441
Professional service and other	2,038		2,535		952

Research and development, net	8,048		7,792		5,621
Selling, general and administrative	13,955		21,320		19,794
Total stock-based compensation expense	25,348		33,036		27,542
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	3,358		4,196		4,347
Total stock-based compensation, net of taxes	$	21,990	$	28,840	$	23,195

Summary of Stock-based Compensation Expense by Type of Award

The following table summarizes stock-based compensation expense by type of award for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Restricted stock units and restricted stock awards	$	21,759	$	31,825	$	23,423
Stock bonus program and bonus share program	3,487		1,040		4,000
Total equity-settled awards	25,246		32,865		27,423
Phantom stock units (cash-settled awards)	102		171		119
Total stock-based compensation expense	$	25,348	$	33,036	$	27,542

Summary of Stock Awards Activity

The following table (“Award Activity Table”) summarizes activity for RSUs and PSUs to Company personnel that reduce available plan capacity under the plans for the years ended January 31, 2023 and 2022:


	Year Ended January 31,			Year Ended January 31,
	2023			2022
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value
Opening balance	1,901	$	24.42	2,149	$	22.92
Granted	2,208	$	6.87	1,416	$	25.60
Released	(1,627)	$	19.53	(1,452)	$	23.36
Forfeited	(559)	$	15.43	(212)	$	24.34
Closing balance	1,923	$	11.02	1,901	$	24.42

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Condensed Financial Information Disclosure [Abstract]
Depreciation expense on property and equipment	$ 11.7	$ 15.5	$ 16.9

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

12 Months Ended

Jan. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Raw materials	$	17,337	$	9,753
Work-in-process	7,057		2,953
Finished goods	869		1,660
Total inventories	$	25,263	$	14,366

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Land and buildings	$	2,854	$	2,854
Leasehold improvements	13,486		14,032
Software	27,889		26,281
Equipment, furniture and other	54,617		54,880
Total cost	98,846		98,047
Less: accumulated depreciation and amortization	(72,971)		(67,208)
Total property and equipment, net	$	25,874	$	30,839

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Prepaid expenses	$	29,081	$	22,653
Deferred cost of revenue	2,347		3,096
Income tax receivables	7,028		5,464
Other	883		757
Total prepaid expenses and other current assets	$	39,339	$	31,970

Schedule of Other Assets

Other assets consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Long-term restricted cash and time deposits	$	203	$	2,488
Capitalized software development costs, net	9,706		13,920
Deferred commissions	2,339		1,897
Long-term deferred cost of revenue	127		525
Long-term security deposits	6		716

Noncontrolling investments accounted under ASC 321	7,046		5,162
Other	534		1,021
Total other assets	$	19,961	$	25,729

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Compensation and benefits	$	38,253	$	51,527
Distributor and agent commissions	10,345		14,877
Operating lease obligations - current portion	6,604		7,409
Income taxes	3,121		6,585

Taxes other than income taxes	8,929		2,962
Fair value of derivatives - current portion	1,592		801
Other	9,453		15,613
Total accrued expenses and other current liabilities	$	78,297	$	99,774

Schedule of Other Liabilities

Other liabilities consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Unrecognized tax benefits, including interest and penalties	$	9,563	$	8,604
Obligations for severance compensation	2,104		2,145
Other	—		25
Total other liabilities	$	11,667	$	10,774

Schedule of Other (Expense) Income, Net

Other income (expense), net consisted of the following for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Gain from business divestiture	$	5,764	—		—
Gains on investments, net	$	1,660	$	729	$	3,769
Foreign currency (losses) gains, net	(51)		$	(3,140)	$	1,682
(Losses) gains on derivative financial instruments, net	(426)		133		(95)
Other expense, net	204		(403)		(70)
Total other income (expense), net	$	7,151	$	(2,681)	$	5,286

Schedule of Supplemental Information Regarding Consolidated Cash Flows

The following table provides supplemental information regarding our consolidated cash flows for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Cash paid for interest	$	1,978	$	470	$	38
Cash payments of income taxes, net	$	11,284	8,232		1,260
Non-cash investing and financing transactions:
Accrued cash dividends payable to parent	$	—	—		35,000
Accrued but unpaid purchases of property and equipment	$	972	1,166		2,636
Inventory transfers to property and equipment	$	1,474	537		894

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Summary of Stock-based Compensation Expense by Type of Award (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Stock-based compensation expense
Total stock-based compensation expense	$ 25,348	$ 33,036	$ 27,542
Total equity-settled awards
Stock-based compensation expense
Total stock-based compensation expense	25,246	32,865	27,423
Restricted stock units and restricted stock awards
Stock-based compensation expense
Total stock-based compensation expense	21,759	31,825	23,423
Stock bonus program and bonus share program
Stock-based compensation expense
Total stock-based compensation expense	3,487	1,040	4,000
Phantom stock units (cash-settled awards)
Stock-based compensation expense
Total stock-based compensation expense	$ 102	$ 171	$ 119

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (109,951)	$ (10,256)	$ 20,310
Other comprehensive loss, net of reclassification adjustments:
Foreign currency translation adjustments	1,828	(219)	(1,233)
Net (decrease) increase from foreign exchange contracts designated as hedges	(16)	(1,253)	(19)
Benefit (provision) for income taxes on net (decrease) increase from foreign exchange contracts designated as hedges	0	84	(18)
Other comprehensive loss	1,811	(1,388)	(1,270)
Comprehensive (loss) income	(108,140)	(11,644)	19,040
Comprehensive income attributable to noncontrolling interest	4,627	4,420	6,419
Comprehensive (loss) income attributable to Cognyte Software Ltd.	$ (112,767)	$ (16,064)	$ 12,621

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($)	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ 1,400,000	$ 2,100,000	$ 2,200,000
Impairment of intangible assets, finite-lived		0
Business divestiture	31,865,000
Impairments of goodwill	0	$ 0	0
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	700,000		300,000
Acquired technology \| Cost of Goods and Service, Excluding Depreciation, Depletion, and Amortization
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	$ 600,000
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of revenue
Acquired technology \| Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived	$ 100,000
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, general and administrative
Acquired technology \| Software
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived			$ 200,000
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]			Cost of revenue
Acquired technology \| Professional service and other
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets, finite-lived			$ 100,000
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]			Cost of revenue

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Summary of Stock Awards Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Shares or Units
Beginning balance (in shares)	1,901	2,149
Granted (in shares)	2,208	1,416
Released (in shares)	(1,627)	(1,452)
Forfeited (in shares)	(559)	(212)
Ending balance (in shares)	1,923	1,901
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share)	$ 24.42	$ 22.92
Granted (in dollars per share)	6.87	25.60
Released (in dollars per share)	19.53	23.36
Forfeited (in dollars per share)	15.43	24.34
Ending balance (in dollars per share)	$ 11.02	$ 24.42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning of year	$ 2,110	$ 4,559	$ 4,085
Provisions charged to expense	2,824	342	1,840
Amounts written off	(3,080)	(2,791)	(1,922)
Business divestiture	(308)	0	0
Other, including fluctuations in foreign exchange rates	37	0	121
Allowance for credit losses, end of year	1,583	2,110	4,559
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning of year	$ 0	0	435
Allowance for credit losses, end of year		$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jan. 31, 2023
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less.
Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits	Restricted Cash and Cash Equivalents, and Restricted Bank Time Deposits Restricted cash and cash equivalents, and restricted bank time deposits are mainly pledged as collateral for performance guarantees.
Investments	InvestmentsOur investments generally consist of bank time deposits with remaining maturities in excess of 90 days at the time of purchase. We held no marketable debt securities at January 31, 2023 and 2022. Investments with maturities in excess of one year are included in other assets.
Accounts Receivable, net	Accounts Receivable, netTrade accounts receivable are comprised of invoiced amounts due from customers for which we have an unconditional right to collect and are not interest-bearing. Credit is extended to customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, bank time deposits, short-term investments, accounts receivable, and contract assets. We invest our cash in bank accounts and bank time deposits. By policy, we seek to limit credit exposure on investments through diversification and by restricting our investments to highly rated securities. We grant credit terms to our customers in the ordinary course of business. Concentrations of credit risk with respect to accounts receivable and contract assets are generally limited due to the large number of customers comprising our customer base and their dispersion across different industries and geographic areas.
Allowance for Credit Losses	Allowance for Credit Losses We adopted Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments on February 1, 2020. ASU No. 2016-13 requires us to make judgments as to our ability to collect outstanding receivables and provide allowances for a portion of receivables over the lifetime of the receivables. Our allowance for credit losses is estimated based on an analysis of the aging of our accounts receivable and contract assets, historical write-offs, customer payment patterns, individual customer creditworthiness, current economic trends, reasonable and supportable forecasts of future economic conditions, and/or establishment of specific reserves for customers in adverse financial condition. We write-off an account receivable and charge it against its recorded allowance at the point when it is considered uncollectible. We assess the adequacy of the allowance for credit losses on a quarterly basis.
Inventories	Inventories Inventories are stated at the lower of cost or market. Cost is determined using the weighted-average method of inventory accounting. The valuation of our inventories requires us to make estimates regarding excess or obsolete inventories, including making estimates of the future demand for our products. Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated changes in demand, price, or technological developments could have a significant impact on the value of our inventory and reported operating results. Charges for excess and obsolete inventories are included within cost of revenue.
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method based over the estimated useful lives of the assets. The vast majority of equipment, furniture and other is depreciated over periods ranging from three to six years. Software is typically depreciated over a period of four years. Buildings are typically depreciated over twenty-five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease term. Finance leased assets are amortized over the related lease term. The cost of maintenance and repairs of property and equipment is charged to operations as incurred. When assets are retired or disposed of, the cost and accumulated depreciation or amortization thereon are removed from the consolidated balance sheet and any resulting gain or loss is recognized in the consolidated statement of operations.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the enterprise’s chief operating decision maker (“CODM”), or decision making group, in deciding how to allocate resources and in assessing performance. We evaluated segment reporting in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting. We concluded that we operate in a single operating segment and a single reportable segment based on the operating results available and evaluated regularly by the CODM to make decisions about resource allocation and performance assessment. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products.
Goodwill and Other Acquired Intangible Assets	Goodwill and Other Acquired Intangible Assets For business combinations, the purchase prices are allocated to the tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the remaining unallocated purchase prices recorded as goodwill. We test goodwill for impairment at the reporting unit level on an annual basis usually as of November 1, or more frequently if changes in facts and circumstances indicate that impairment in the value of goodwill may exist. We operate as one reporting unit. In testing for goodwill impairment, we may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we elect to bypass a qualitative assessment, or if our qualitative assessment indicates that goodwill impairment is more likely than not, we perform quantitative impairment testing. If our quantitative testing determines that the carrying value of the reporting unit exceeds its fair value, goodwill impairment is recognized in an amount equal to that excess, limited to the total goodwill allocated to our reporting unit. We utilize some or all of three primary approaches to assess the fair value of a reporting unit: (a) an income-based approach, using projected discounted cash flows, (b) a market-based approach, using valuation multiples of comparable companies, and (c) a transaction-based approach, using valuation multiples for recent acquisitions of similar businesses made in the marketplace. Our estimate of fair value of our reporting unit is based on a number of subjective factors, including: (a) appropriate consideration of valuation approaches (income approach, comparable public company approach, and comparable transaction approach), (b) estimates of future growth rates, (c) estimates of our future cost structure, (d) discount rates for our estimated cash flows, (e) selection of peer group companies for the public company and the market transaction approaches, (f) required levels of working capital, (g) assumed terminal value, and (h) time horizon of cash flow forecasts. Acquired identifiable intangible assets include identifiable acquired technologies, customer relationships, trade names, distribution networks, and non-competition agreements. We amortize the cost of finite-lived identifiable intangible assets over their estimated useful lives, which are periods of 7 years or less. Amortization is based on the pattern in which the economic benefits of the intangible asset are expected to be realized, which typically is on a straight-line basis. The fair values assigned to identifiable intangible assets acquired in business combinations are determined primarily by using the income approach, which discounts expected future cash flows attributable to these assets to present value using estimates and assumptions determined by management. The acquired identifiable finite-lived intangible assets are being amortized primarily on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.
Fair Value Measurements	Fair Value Measurements Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This fair value hierarchy consists of three levels of inputs that may be used to measure fair value: •Level 1: quoted prices in active markets for identical assets or liabilities; •Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or •Level 3: unobservable inputs that are supported by little or no market activity. We review the fair value hierarchy classification of our applicable assets and liabilities at each reporting period. Changes in the observability of valuation inputs may result in transfers within the fair value measurement hierarchy.
Fair Values of Financial Instruments	Fair Values of Financial InstrumentsOur recorded amounts of cash and cash equivalents, restricted cash and cash equivalents, and restricted bank time deposits, accounts receivable, contract assets, contract liabilities, short term loan, investments, and accounts payable approximate fair value, due to the short-term nature of these instruments. We measure certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.
Derivative Financial Instruments	Derivative Financial Instruments The Company accounts for derivatives and hedging based on ASC 815, Derivatives and Hedging, which requires recognizing all derivatives on the balance sheet at fair value. If the derivatives meet the definition of a cash flow hedge and are so designated, depending on the nature of the hedge, the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period, or periods, during which the hedged transaction affects earnings. As part of our risk management strategy, when considered appropriate, we use derivative financial instruments including foreign currency forward contracts to hedge against certain foreign currency exposure. Our intent is to mitigate gains and losses caused by the underlying exposures with offsetting gains and losses on the derivative contracts. By policy, we do not enter into speculative positions with derivative instruments. To protect against the increase in value of expected foreign currency cash flows resulting mainly from salaries and related benefits paid in NIS during the year, the Company hedges portions of its anticipated payroll denominated in NIS for a period of one to twelve months with forward contracts (the “Hedging Contracts”). Accordingly, when the USD strengthens against the NIS, the decline in present value of future NIS currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely, when the USD weakens against the NIS, the increase in the present value of future NIS expenses is offset by gains in the fair value of the Hedging Contracts. These Hedging Contracts are designated as cash flow hedges. We also periodically utilize foreign currency forward contracts to manage exposures resulting from expected customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency. The counterparties to our derivative financial instruments consist of two major financial institutions. We regularly monitor the financial strength of these institutions. While the counterparties to these contracts expose us to credit-related losses in the event of a counterparty’s non-performance, the risk would be limited to the unrealized gains on such affected contracts. We do not anticipate any such losses.
Revenue Recognition	Revenue Recognition We account for revenue in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). For additional details please refer to note 4, “Revenue Recognition”. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. When an arrangement contains multiple performance obligations, we account for individual performance obligations separately if they are distinct. We recognize revenue through the application of the following five steps: 1) Identify the contract(s) with a customer A contract with a customer exists when (i) we enter into an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or in the case of a new customer, published credit and financial information pertaining to the customer. Our customary business practice is to enter into legally enforceable written contracts with our customers, which set forth the general terms and conditions between the parties. Typically, our customers also submit a purchase order to specify the different goods and services, and the associated prices. Multiple contracts with a single counterparty entered into at or near the same time are evaluated to determine if the contracts should be combined and accounted for as a single contract. 2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we must apply judgment to determine whether promised goods or services are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Generally, our contracts do not include non-distinct performance obligations, but certain contracts require design, development, or significant customization of our products to meet the customer’s specific requirements, in which case the products and services are combined into one distinct performance obligation. Additionally, our subscription license offerings provide customers with access to and the right to utilize ongoing support to ensure our software is continuously up-to-date with the latest cyber security capabilities. We consider our software subscription licenses and access to critical support to be a single performance obligation. 3) Determine the transaction price The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. We assess the timing of transfer of goods and services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less, which is the case in the majority of our customer contracts. The primary purpose of our invoicing terms is not to receive or provide financing from or to customers. Certain contracts may require an advance payment to encourage customer commitment to the project and protect us from early termination of the contract. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price, utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price, if we assessed that a significant future reversal of cumulative revenue under the contract will not occur. Typically, our contracts do not provide our customers with any right of return or refund, and we do not constrain the contract price as it is probable that there will not be a significant revenue reversal due to a return or refund. 4) Allocate the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct goods or services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, we must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. We allocate the variable amount to one or more distinct performance obligations but not all or to one or more distinct services that forms a part of a single performance obligation, when the payment terms of the variable amount relate solely to our efforts to satisfy that distinct performance obligation and it results in an allocation that is consistent with the overall allocation objective of ASU No. 2014-09. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative stand-alone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. We determine stand-alone selling price (“SSP”) based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation. 5) Recognize revenue when (or as) the entity satisfies a performance obligation We satisfy performance obligations either over time or at a point in time depending on the nature of the underlying promise. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. In certain contracts that include customer substantive acceptance criteria, revenue is not recognized until we can objectively conclude that the product or service meets the agreed-upon specifications in the contract. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to our customers. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer. Shipping and handling activities that are billed to the customer and occur after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. Historically, these expenses have not been material. We do not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between 30 and 60 days. Nature of Goods and Services We derive and report our revenue in three categories: (a) software revenue, including the sale of subscription (i.e., term-based) or perpetual licenses, and appliances that include software that is essential to the product’s functionality, (b) software service revenue, including support revenue and revenue from cloud-based software-as-a-service subscriptions (“SaaS”), and (c) professional service and other revenue, including revenue from installation and integration services, customer specific development work, resale of third-party hardware, and consulting and training services. Software revenue licenses either provide our customers a perpetual right to use our software or the right to use our software for only a fixed term, in most cases between one and three-year time frame. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. For the majority of our software licenses, we have concluded that the licenses are distinct as our customers can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. Our subscription software licenses are not distinct from our support services as the utility of the software to the customer will significantly degrade during the license term. Subscription license revenue is recognized over the term of the subscription period beginning when the software is delivered to the customer. We rarely sell our software licenses on a stand-alone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of software licenses with other promised goods and services in order to maximize the use of observable inputs. Software SSP is established based on an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices. Software service revenue is derived from cloud-based SaaS revenue and, providing technical support services, bug fixes and unspecified software updates to customers on a when-and-if-available basis. Each of these performance obligations provide benefit to the customer on a stand-alone basis and are distinct in the context of the contract. Each of these distinct performance obligations represent a stand ready obligation to provide service to a customer, which is concurrently delivered and has the same pattern of transfer to the customer, which is why we account for these support services as a single performance obligation. We recognize support services ratably over the contractual term, which typically is one year and develop SSP for support services based on stand-alone renewal contracts. Our solutions are generally sold with warranties that typically range from 90 days to 3 years. These warranties do not represent an additional performance obligation as services beyond assuring that the software license and hardware comply with agreed-upon specifications are not provided. Professional service revenues primarily consist of fees for installation and integration, deployment and optimization services, as well as consulting and training, and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional service as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. Additionally, other revenues consist of the resale of third-party hardware including servers, laptops and communication equipment, and are recognized at a point in time generally upon shipment or delivery. We rarely sell professional services and third-party hardware on a stand-alone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of professional services and resale of third-party hardware with other promised goods and services in order to maximize the use of observable inputs. Professional services SSP and resale of third-party hardware SSP is established based on an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices. Certain contracts require us to significantly customize our software and these contracts are generally recognized over time as we perform because our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. Revenue is recognized over time based on the extent of progress towards completion of the performance obligation. We use labor hours incurred to measure progress for these contracts because it best depicts the transfer of the asset to the customer. Under the labor hours incurred measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the distinct performance obligation. Due to the nature of the work performed in these arrangements, the estimation of total labor hours at completion is complex, subject to many variables and requires significant judgment. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known. We use an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices, to estimate the SSP of our significantly customized solutions.
Cost of Revenue	Cost of Revenue Our cost of revenue includes costs of materials, compensation and benefit costs for operations and service personnel, subcontractor costs, royalties and license fees related to third-party software included in our products and third-party SaaS providers, cloud infrastructure costs, depreciation of equipment used in operations and service, amortization of capitalized software development costs and certain purchased intangible assets, travel expenses associated with provision of installation, training, consulting and development services resources dedicated to project management and an allocation of overhead costs, such as facility, information technology, operations costs, and other overhead expenses. Costs that relate to materials and royalties are generally expensed upon shipment and costs related to travel, subcontractors, and personnel and related expenses are generally expensed as incurred in the period in which the personnel related services are performed. Refer to Note 4, “Revenue Recognition” under the heading “Costs to Obtain and Fulfill Contracts” for further details regarding customer contract costs.
Research and Development, net	Research and Development, net With the exception of certain software development costs, all research and development costs are expensed as incurred, and consist primarily of personnel and consulting costs, travel, depreciation of research and development equipment, and related overhead and other costs associated with research and development activities. We receive non-refundable grants from the Israeli Innovation Authority (“IIA”) that fund a portion of our research and development expenditures. We have elected to enter only into non-royalty-bearing arrangements with the IIA which do not require us to pay royalties. Funds received from the IIA are recorded as a reduction to research and development expense. Royalties, to the extent paid, are recorded as part of our cost of revenue. We also periodically derive benefits from participation in certain government-sponsored programs in other jurisdictions, for the support of research and development activities conducted in those locations.
Software Development Costs	Software Development Costs Costs incurred to acquire or develop software to be sold, leased or otherwise marketed are capitalized after technological feasibility is established, and continue to be capitalized through the general release of the related software product. Amortization of capitalized costs begins in the period in which the related product is available for general release to customers and is recorded on a straight-line basis, which approximates the pattern in which the economic benefits of the capitalized costs are expected to be realized, over the estimated economic lives of the related software products, generally over a period of up to 6 years.
Internal-Use Software	Internal-Use Software We capitalize costs associated with software that is acquired, internally developed or modified solely to meet our internal needs. Capitalization begins when the preliminary project stage has been completed and management with the relevant authority authorizes and commits to the funding of the project. These capitalized costs include external direct costs utilized in developing or obtaining the applications and expenses for employees who are directly associated with the development of the applications. Capitalization of such costs continues until the project is substantially complete and is ready for its intended purpose. Capitalized costs of computer software developed for internal use are generally amortized over estimated useful lives of four to five years on a straight-line basis, which best represents the pattern of the software’s use. We capitalize integration and testing costs incurred from implementing cloud computing hosting arrangements that are service contracts at the application development stage. Capitalized costs are amortized on a straight-line basis over the term of each arrangement.
Income Taxes	Income Taxes Prior to the spin-off, the Company’s operations were included in the consolidated U.S. federal and certain state, local and foreign income tax returns filed by Verint. For the purposes of periods prior to the spin-off, the Company’s income tax provision was calculated using the separate return basis, as if the Company filed separate tax returns. Since the spin-off, certain changes in the tax balances are primarily attributable to tax carryforwards and other basis differences that existed on a separate return basis for the historical periods. Changes between the historical periods presented on a separate return basis were settled through the former net parent investment immediately prior to the spin-off. We account for income taxes under the asset and liability method which includes the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our consolidated financial statements. Under this approach, deferred taxes are recorded for the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus deferred taxes. Deferred taxes result from differences between the financial statement and tax bases of our assets and liabilities, and are adjusted for changes in tax rates and tax laws when changes are enacted. The effects of future changes in income tax laws or rates are not anticipated. We are subject to income taxes in Israel, the United States and numerous foreign jurisdictions. The calculation of our income tax provision involves the application of complex tax laws and requires significant judgment and estimates. We evaluate the realizability of our deferred tax assets for each jurisdiction in which we operate at each reporting date, and establish valuation allowances when it is more likely than not that all or a portion of our deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the same character and in the same jurisdiction. We consider all available positive and negative evidence in making this assessment, including, but not limited to, the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. In circumstances where there is sufficient negative evidence indicating that our deferred tax assets are not more-likely-than-not realizable, we establish a valuation allowance. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more-likely-than-not sustainable, based solely on their technical merits, upon examination and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position as the largest amount that we believe is more-likely-than-not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we either record as a liability or as a reduction of deferred tax assets. Our policy is to include interest (expense and/or income) and penalties related to unrecognized income tax benefits as a component of the provision for income taxes.
Functional Currencies and Foreign Currency Transaction Gains and Losses	Functional Currencies and Foreign Currency Transaction Gains and Losses Our functional currency, and the functional currency of most of our subsidiaries, is the U.S. dollar, although we have some subsidiaries with functional currencies that are their local currency. Transactions denominated in currencies other than a functional currency are converted to the functional currency on the transaction date, and any resulting assets or liabilities are further remeasured at each reporting date and at settlement. Gains and losses recognized upon such remeasurements are included within Other income (expenses), net in the consolidated statements of operations. We recorded net foreign currency losses of $0.1 million, net foreign currency losses of $3.1 million and net foreign currency gains of $1.7 million for the years ended January 31, 2023, 2022, and 2021, respectively. For consolidated reporting purposes, in those instances where a subsidiary has a functional currency other than the U.S. dollar, revenue and expenses are translated into U.S. dollars using average exchange rates for the reporting period, while assets and liabilities are translated into U.S. dollars using period-end rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income or loss in the accompanying consolidated balance sheets.
Stock-Based Compensation	Stock-Based Compensation Certain Company employees participate in a stock-based compensation plan sponsored by Cognyte. Awards granted under the plan are based on Cognyte’s common shares and, as such, are included in Additional Paid in Capital. The Company accounts for share-based compensation under ASC 718, Compensation - Stock Compensation, which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees and directors. ASC 718 requires companies to estimate the fair value of equity-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of operations. The Company estimates forfeitures to be estimated at the time of grant, and revised if necessary in subsequent periods, if actual forfeitures differ from those estimates. The Company recognizes compensation expenses for the value of its awards, which vest in tranches based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. For performance-based share units, the Company recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the accelerated attribution method over the requisite service period. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts compensation cost based on its probability assessment.
Leases	Leases We determine if an arrangement is a lease at inception. Operating lease assets are presented as operating lease right-of-use (“ROU”) assets, and corresponding operating lease liabilities are presented within accrued expenses and other current liabilities (current portions), and as operating lease liabilities (long-term portions), on our consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the remaining lease payments over the lease term at commencement date. Our leases do not provide an implicit interest rate. We calculate the incremental borrowing rate to reflect the interest rate that we would have to pay to borrow on a collateralized basis an amount equal to the lease payments in a similar economic environment over a similar term, and consider our historical borrowing activities and market data in this determination. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which we account for as a single lease component. Some of our leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index updates are recorded as rent expense in the period incurred. We have elected not to recognize ROU assets and lease liabilities for short-term leases that have a term of twelve months or less. The effect of short-term leases on our ROU assets and lease liabilities was not material. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. In addition, we do not have any related party leases.
Legal Contingencies	Legal Contingencies From time to time, the Company becomes involved in legal proceedings or is subject to claims arising in its ordinary course of business. Such matters are generally subject to many uncertainties and outcomes that are not predictable with certainty. The Company accrues for contingencies when the loss is probable, and it can reasonably estimate the amount of any such loss. Loss contingencies considered to be remote by the Company are generally not disclosed unless material. The respective legal fees are expensed as incurred.
Tax indemnification	Tax indemnification Income tax indemnifications are contractual arrangements established between two parties whereby one party will reimburse the other for income taxes paid to a taxing authority related to tax positions that arose (typically) prior to a transaction. If we are a primary obligor to the taxing authority, we should account for any tax exposure pursuant to the uncertain tax provision guidance of ASC 740. If we are not a primary obligor to the taxing authority, we should account for the tax risk pursuant to ASC 460, Guarantees, which requires the use of the greater of the fair value of the indemnity or the contingent liability required to be recognized under ASC 450, Contingencies. In accordance with the Tax Matters Agreement entered between the Company and Verint in conjunction with the spin-off, the Company has an indemnification obligation to Verint with respect to some or all of the resulting tax to Verint under the Tax Matters Agreement. Following the spin-off, the Company is obligated to indemnify Verint, which is the primary obligor to the taxing authority for the GILTI calculation, and accordingly the Company recorded in the fiscal year that ended in January 31, 2023 a tax indemnification pursuant of ASC 460, Guarantees (ASC 460).
Business Combinations	Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations. ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over the purchase price is allocated to goodwill and any subsequent changes in estimated contingencies are recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in changes in acquired income tax positions are recognized in earnings. Acquisition related costs are expensed to the consolidated statements of operations in the periods incurred.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New Accounting Pronouncements Recently Adopted In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance is effective for all entities as of March 12, 2020 through December 31, 2024. The adoption of this guidance does not have a material impact on the Company’s consolidated financial results of operations, financial position or cash flows. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which affects general principles within Topic 740, Income Taxes and is meant to simplify and reduce the cost of accounting for income taxes. This standard is effective for annual reporting periods beginning after December 15, 2021, and interim reporting periods within annual reporting periods beginning after December 15, 2022. The adoption of this guidance does not have a material impact on the Company’s consolidated financial results of operations, financial position or cash flows. New Accounting Pronouncements Not Yet Effective In October 2021, the FASB issued ASU 2021-08 Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. The guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The guidance should be applied prospectively to acquisitions occurring on or after the effective date. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In September 2022, the FASB issued ASU 2022-04 Liabilities — Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations (Subtopic 405-50). This guidance is intended to address requests from stakeholders for information about an entity’s use of supplier finance programs and their effect on the entity’s working capital, liquidity, and cash flows. The guidance is effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information requirement, which is effective for the fiscal years beginning after December 15, 2023.

DIVESTITURE (Details) - USD ($) $ in Thousands		12 Months Ended
DIVESTITURE (Details) - USD ($) $ in Thousands	Dec. 01, 2022	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture business		$ 37,635	$ 0	$ 0
Gain from business divestiture, see Note 7		$ 5,764	$ 0	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| SIS
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture business	$ 42,400
Divestiture business holdback	4,700
Divestiture business consideration	47,100
Gain from business divestiture, see Note 7	5,800
Divestiture business closing cost	$ 4,700

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Schedule of Recognized Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Cost of revenue:
Total stock-based compensation expense	$ 25,348	$ 33,036	$ 27,542
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	3,358	4,196	4,347
Total stock-based compensation, net of taxes	21,990	28,840	23,195
Cost of revenue: \| Software
Cost of revenue:
Total stock-based compensation expense	229	229	734
Cost of revenue: \| Software service
Cost of revenue:
Total stock-based compensation expense	1,078	1,160	441
Cost of revenue: \| Professional service and other
Cost of revenue:
Total stock-based compensation expense	2,038	2,535	952
Research and development, net
Cost of revenue:
Total stock-based compensation expense	8,048	7,792	5,621
Selling, general and administrative
Cost of revenue:
Total stock-based compensation expense	$ 13,955	$ 21,320	$ 19,794

LEASES - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,272	$ 8,733
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 2,240	$ 3,756
Weighted average remaining lease terms
Operating leases	3 years	4 years
Weighted average discount rates
Operating leases	4.80%	4.80%

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other (Expense) Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Condensed Financial Information Disclosure [Abstract]
Gain from business divestiture, see Note 7	$ 5,764	$ 0	$ 0
Gains on investments, net	1,660	729	3,769
Foreign currency (losses) gains, net	(51)	(3,140)	1,682
(Losses) gains on derivative financial instruments, net	(426)	133	(95)
Other expense, net	204	(403)	(70)
Total other income (expense), net	$ 7,151	$ (2,681)	$ 5,286

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION (Tables)

12 Months Ended

Jan. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenue by Region

The information below summarizes revenue by major geographic region for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
EMEA:
Israel	$	201,610	$	328,371	$	274,113
Germany	44,486		63,258		86,834
Other	13,208		14,127		18,727
Total EMEA	259,304		405,756		379,674
Americas:
United States	35,139		37,726		44,746
Other	9,987		17,869		7,134
Total Americas	45,126		55,595		51,880
APAC	7,633		12,691		11,904
Total revenue	$	312,062	$	474,042	$	443,458

Schedule of Long-lived Assets by Region

Property and equipment, net by geographic area consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Israel	$	20,090	$	24,510
United States	173		538
Other countries	5,611		5,791
Total property and equipment, net	$	25,874	$	30,839

Schedule of Major Customers

The Company’s largest customers accounted for the following percentage of total revenue:


	Year Ended January 31,
	2023		2022		2021
Customer A	17.7	%	14.8	%	16.9	%
Customer B	10.0	%	8.4	%	14.1	%

INCOME TAXES - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
Income tax provision at the U.S. federal statutory rate	$ (20,369)	$ 1,735	$ 5,192
U.S. State income tax (benefit) provision	(156)	40	(226)
Non-U.S. tax rate differential	8,636	2,892	(2,836)
Tax incentives	(158)	(2,671)	(139)
Valuation allowances	7,450	12,731	31
Non-deductible expenses/non-taxable income	491	255	(261)
Business divestiture	7,372	0	0
Tax contingencies	6,286	2,056	1,184
Stock based and other compensation	1,102	898	101
U.S. tax effects of non-U.S. operations	2,316	540	1,001
Other, net	(14)	41	367
Total provision for income taxes	$ 12,956	$ 18,517	$ 4,414
Effective income tax rate	(13.40%)	224.10%	17.90%

INCOME TAXES - Schedule of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Recorded valuation allowance
Valuation allowance, beginning of year	$ (18,576)	$ (5,732)
Income tax (provision)	(7,450)	(12,731)
Spin-off from Verint	0	(113)
Valuation allowance, end of year	$ (26,026)	$ (18,576)

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jan. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSOn March 1, 2023, a securities class complaint (the “Complaint”) was filed in the United States District Court for the Southern District of New York, New York, USA against the Company, its Chief Executive Officer and Chief Financial Officer on behalf of all purchasers of the Company’s shares during the period between February 2, 2021 and June 28, 2022 and seeking unspecified damages. The Complaint alleges that the defendants breached United States securities laws by making misleading statements and omissions in the Company’s January 14, 2021 registration statement and during the period between February 2, 2021 and June 28, 2022. Such statements and omissions allegedly concealed the fact that the Company’s business practices violated Meta Platforms Inc.’s community standards and terms of services. The Complaint alleges that Cognyte’s share price dropped after the facts were disclosed. The Company has not accrued any losses in connection with this proceedings. The Company’s position is that this lawsuit has no merit and we intend to defend such position vigorously. It is impossible to determine the outcome of the Claim and its impact on the Company at such a preliminary stage, regardless of its merits.

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION - Schedule of Long-Lived Assets by Region (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	$ 25,874	$ 30,839
Israel
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	20,090	24,510
United States
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	173	538
Other countries
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	$ 5,611	$ 5,791

REVENUE RECOGNITION

12 Months Ended

Jan. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. When an arrangement contains multiple performance obligations, we account for individual performance obligations separately if they are distinct. We recognize revenue through the application of the following five steps:

1) Identify the contract(s) with a customer

A contract with a customer exists when (i) we enter into an enforceable contract with the customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance, and (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or in the case of a new customer,

published credit and financial information pertaining to the customer. Our customary business practice is to enter into legally enforceable written contracts with our customers, which set forth the general terms and conditions between the parties. Typically, our customers also submit a purchase order to specify the different goods and services, and the associated prices. Multiple contracts with a single counterparty entered into at or near the same time are evaluated to determine if the contracts should be combined and accounted for as a single contract.

2) Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or services either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we must apply judgment to determine whether promised goods or services are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation. Generally, our contracts do not include non-distinct performance obligations, but certain contracts require design, development, or significant customization of our products to meet the customer’s specific requirements, in which case the products and services are combined into one distinct performance obligation. Additionally, our subscription license offerings provide customers with access to and the right to utilize ongoing support to ensure our software is continuously up-to-date with the latest cyber security capabilities. We consider our software subscription licenses and access to critical support to be a single performance obligation.

3) Determine the transaction price

The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. We assess the timing of transfer of goods and services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less, which is the case in the majority of our customer contracts. The primary purpose of our invoicing terms is not to receive or provide financing from or to customers. Certain contracts may require an advance payment to encourage customer commitment to the project and protect us from early termination of the contract. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price, utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price, if we assessed that a significant future reversal of cumulative revenue under the contract will not occur. Typically, our contracts do not provide our customers with any right of return or refund, and we do not constrain the contract price as it is probable that there will not be a significant revenue reversal due to a return or refund.

4) Allocate the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct goods or services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, we must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. We allocate the variable amount to one or more distinct performance obligations but not all or to one or more distinct services that forms a part of a single performance obligation, when the payment terms of the variable amount relate solely to our efforts to satisfy that distinct performance obligation and it results in an allocation that is consistent with the overall allocation objective of ASU No. 2014-09. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative stand-alone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. We determine stand-alone selling price (“SSP”) based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions, including geographic or regional specific factors, competitive positioning, internal costs, profit objectives, and internally approved pricing guidelines related to the performance obligation.

5) Recognize revenue when (or as) the entity satisfies a performance obligation

We satisfy performance obligations either over time or at a point in time depending on the nature of the underlying promise. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer. In certain contracts that include customer substantive acceptance criteria, revenue is not

recognized until we can objectively conclude that the product or service meets the agreed-upon specifications in the contract.

We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to our customers. Revenue is measured based on consideration specified in a contract with a customer, and excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by us from a customer.

Shipping and handling activities that are billed to the customer and occur after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. Historically, these expenses have not been material.

We do not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between the time of transfer of the promised goods or services to the customer and the time the customer pays for these goods or services to be generally one year or less, based on the practical expedient. The Company’s credit terms to customers are, on average, between 30 and 60 days.

Nature of Goods and Services

We derive and report our revenue in three categories: (a) software revenue, including the sale of subscription (i.e., term-based) or perpetual licenses, and appliances that include software that is essential to the product’s functionality, (b) software service revenue, including support revenue and revenue from cloud-based software-as-a-service subscriptions (“SaaS”), and (c) professional service and other revenue, including revenue from installation and integration services, customer specific development work, resale of third-party hardware, and consulting and training services.

Software revenue licenses either provide our customers a perpetual right to use our software or the right to use our software for only a fixed term, in most cases between one and three-year time frame. Generally, our contracts do not provide significant services of integration and customization and installation services are not required to be purchased directly from us. For the majority of our software licenses, we have concluded that the licenses are distinct as our customers can benefit from the software on its own. Software revenue is typically recognized when the software is delivered or made available for download to the customer. Our subscription software licenses are not distinct from our support services as the utility of the software to the customer will significantly degrade during the license term. Subscription license revenue is recognized over the term of the subscription period beginning when the software is delivered to the customer. We rarely sell our software licenses on a stand-alone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market conditions and entity specific factors such as assessment of historical data of bundled sales of software licenses with other promised goods and services in order to maximize the use of observable inputs. Software SSP is established based on an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices.

Software service revenue is derived from cloud-based SaaS revenue and, providing technical support services, bug fixes and unspecified software updates to customers on a when-and-if-available basis. Each of these performance obligations provide benefit to the customer on a stand-alone basis and are distinct in the context of the contract. Each of these distinct performance obligations represent a stand ready obligation to provide service to a customer, which is concurrently delivered and has the same pattern of transfer to the customer, which is why we account for these support services as a single performance obligation. We recognize support services ratably over the contractual term, which typically is one year and develop SSP for support services based on stand-alone renewal contracts.

Our solutions are generally sold with warranties that typically range from 90 days to 3 years. These warranties do not represent an additional performance obligation as services beyond assuring that the software license and hardware comply with agreed-upon specifications are not provided.

Professional service revenues primarily consist of fees for installation and integration, deployment and optimization services, as well as consulting and training, and are generally recognized over time as the customer simultaneously receives and consumes the benefits of the professional service as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time using an input method based on labor hours expended to date relative to the total labor hours expected to be required to satisfy the related performance obligation. Additionally, other revenues consist of the resale of third-party hardware including servers, laptops and communication equipment, and are recognized at a point in time generally upon shipment or delivery. We rarely sell professional services and third-party hardware on a stand-alone basis and as a result SSP is not directly observable and must be estimated. We apply the adjusted market assessment approach, considering both market

conditions and entity specific factors such as assessment of historical data of bundled sales of professional services and resale of third-party hardware with other promised goods and services in order to maximize the use of observable inputs. Professional services SSP and resale of third-party hardware SSP is established based on an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices.

Certain contracts require us to significantly customize our software and these contracts are generally recognized over time as we perform because our performance does not create an asset with an alternative use and we have an enforceable right to payment plus a reasonable profit for performance completed to date. Revenue is recognized over time based on the extent of progress towards completion of the performance obligation. We use labor hours incurred to measure progress for these contracts because it best depicts the transfer of the asset to the customer. Under the labor hours incurred measure of progress, the extent of progress towards completion is measured based on the ratio of labor hours incurred to date to the total estimated labor hours at completion of the distinct performance obligation. Due to the nature of the work performed in these arrangements, the estimation of total labor hours at completion is complex, subject to many variables and requires significant judgment. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known. We use an appropriate discount from our established list price, taking into consideration whether there is certain stratification of the population with different pricing practices, to estimate the SSP of our significantly customized solutions.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by the recurring or nonrecurring nature of revenue. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions:

•Recurring revenue primarily consists of initial and renewal support, subscription software licenses, and cloud-based SaaS in certain transactions.

•Nonrecurring revenue primarily consists of our perpetual licenses, appliances, custom development, installation and integration services, consulting and training, and the resale of third-party hardware.


	Year Ended January 31,
(in thousands)	2023		2022		2021
Revenue by recurrence:
Recurring revenue	$	197,398	$	230,969	$	223,405
Nonrecurring revenue	114,664		243,073		220,053
Total revenue	$	312,062	$	474,042	$	443,458

Contract Balances

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:


	January 31,
(in thousands)	2023		2022
Accounts receivable, net	$	113,201	$	179,198
Contract assets, net	$	17,476	$	27,908

Contract liabilities	$	94,882	$	83,158
Long-term contract liabilities	$	14,382	$	14,520

We receive payments from customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time. The majority of our contract assets represent unbilled amounts related to arrangements where our right to consideration is subject to the contractually agreed upon billing schedule. We expect billing and collection of our contract assets to occur within the next twelve months and had no asset impairment related to contract assets in the period. During the years ended January 31, 2023 and 2022, we transferred $16.3 million and $13.0 million, respectively, to accounts receivable from contract assets recognized

at the beginning of each period, as a result of the right to the transaction consideration becoming unconditional. We recognized $10.3 million and $19.1 million of contract assets during the years ended January 31, 2023 and 2022, respectively. During the year ended January 31, 2023, the Company divested a portion of its business, as described in Note 7. As a result, the Company divested $2.1 million of its contract assets.

There are two customers that accounted for a combined $54.2 million and $80.1 million of our aggregated accounts receivable and contract assets at January 31, 2023 and 2022, respectively. These amounts result from both direct and indirect contracts with governments outside of the U.S. which we believe present insignificant credit risk.

Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract. Revenue recognized during the years ended January 31, 2023 and 2022 from amounts included in contract liabilities at the beginning of each period was $61.3 million and $107.2 million, respectively.

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less.

The timing and amount of revenue recognition for our RPO is influenced by several factors, including timing of support renewals, and the revenue recognition for certain projects can extend over longer periods of time, delivery under which, for various reasons, may be delayed, modified, or canceled. Therefore, the amount of remaining obligations may not be a meaningful indicator of future results. While uncommon, in some cases, we may decide to unilaterally cancel outstanding orders and reduce the RPO when there have been extended delays by customers to pay the agreed upon down payments or due to other reasons.

The following table provides information about our RPO:


	January 31,
(in thousands)	2023		2022
RPO:
Expected to be recognized within 1 year	$	280,662	$	300,212
Expected to be recognized in more than 1 year	302,329		211,346
Total RPO	$	582,991	$	511,558

Costs to Obtain and Fulfill Contracts

We capitalize commissions paid to internal sales personnel and agent commissions that are incremental to obtaining customer contracts. We have determined that these commissions are in fact incremental and would not have occurred absent the customer contract. Our sales and agent commissions paid on annual renewals of support are commensurate with the commission paid on the initial contract. Capitalized sales and agent commissions are amortized over the period the goods or services are transferred to the customer to which the assets relate.

Total capitalized costs to obtain contracts were $9.7 million as of January 31, 2023, of which $7.4 million is included in prepaid expenses and other current assets and $2.3 million is included in other assets on our consolidated balance sheet. Total capitalized costs to obtain contracts were $8.3 million as of January 31, 2022, of which $6.4 million is included in prepaid expenses and other current assets and $1.9 million is included in other assets on our consolidated balance sheet. During the years ended January 31, 2023, 2022, and 2021, we expensed $13.3 million, $24.4 million, and $23.8 million, respectively, of sales and agent commissions, which are included in selling, general and administrative expenses.

We capitalize costs incurred to fulfill our contracts when the costs relate directly to the contract and are expected to generate resources that will be used to satisfy the performance obligation under the contract and are expected to be recovered through revenue generated under the contract. Costs to fulfill contracts are expensed to cost of revenue as we satisfy the related performance obligations. Total capitalized costs to fulfill contracts were $2.5 million as of January 31, 2023, of which $2.4 million is included in prepaid expenses and other current assets and $0.1 million is included in other assets on our consolidated balance sheet. Total capitalized costs to fulfill contracts were $3.6 million as of January 31, 2022, of which $3.1 million is included in prepaid expenses and other current assets and $0.5 million is included in other assets on our consolidated balance

sheet. Deferred cost of revenue is classified in its entirety as current or long-term based on whether the related revenue will be recognized within twelve months of the origination date of the arrangement. The amounts capitalized primarily relate to prepaid third-party cloud costs. During the years ended January 31, 2023, 2022, and 2021, we amortized $3.9 million, $7.8 million, and $13.5 million, respectively, of contract fulfillment costs.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

LEASES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2023	Jan. 31, 2022
Lessee, Lease, Description [Line Items]
Accelerated operating lease expenses	$ 1.5	$ 0.8
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	1 year
Lessee, finance lease, remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, remaining lease term	4 years 2 months 12 days
Lessee, finance lease, remaining lease term	4 years 2 months 12 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	12 Months Ended
	Jan. 31, 2023 segment
Accounting Policies [Abstract]
Number of operating segments	1
Number of reportable segments	1

FAIR VALUE MEASUREMENTS - Schedule of Changes in the Estimated Fair Value using Significant Unobservable Inputs (Details) - Liability for contingent consideration - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Changes in the estimated fair value of liability for contingent consideration measured using significant unobservable inputs (Level 3)
Fair value measurement, beginning of year	$ 0	$ 2,923
Changes in fair values, recorded in operating expenses	0	(185)
Payments of contingent consideration	0	(2,738)
Fair value measurement at end of year	$ 0	$ 0

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Property, Plant and Equipment
Total cost	$ 98,846	$ 98,047
Less: accumulated depreciation and amortization	(72,971)	(67,208)
Total property and equipment, net	25,874	30,839
Land and buildings
Property, Plant and Equipment
Total cost	2,854	2,854
Leasehold improvements
Property, Plant and Equipment
Total cost	13,486	14,032
Software
Property, Plant and Equipment
Total cost	27,889	26,281
Equipment, furniture and other
Property, Plant and Equipment
Total cost	$ 54,617	$ 54,880

INCOME TAXES - Schedule of Components of Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract]
U.S.	$ (18,240)	$ (9,596)	$ (8,665)
Non-U.S.	(78,755)	17,857	33,389
(Loss) income before provision for income taxes	$ (96,995)	$ 8,261	$ 24,724

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Prepaid expenses	$ 29,081	$ 22,653
Deferred cost of revenue	2,347	3,096
Income tax receivables	7,028	5,464
Other	883	757
Total prepaid expenses and other current assets	$ 39,339	$ 31,970

CONTINGENT CONSIDERATION ASSOCIATED WITH BUSINESS COMBINATIONS	12 Months Ended
	Jan. 31, 2023
Business Combinations [Abstract]
CONTINGENT CONSIDERATION ASSOCIATED WITH BUSINESS COMBINATIONS	CONTINGENT CONSIDERATION ASSOCIATED WITH BUSINESS COMBINATIONS The acquisition date fair values of contingent consideration obligations associated with business combinations are estimated based on probability adjusted present values of the consideration expected to be transferred using significant inputs that are not observable in the market. Key assumptions used in these estimates include probability assessments with respect to the likelihood of achieving the performance targets and discount rates consistent with the level of risk of achievement. At each reporting date, we revalue the contingent consideration obligations to their fair values and record increases and decreases in fair value within selling, general and administrative expenses in our consolidated statements of operations. Changes in the fair value of the contingent consideration obligations result from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets. For the year ended January 31, 2022 and 2021, we recorded benefits of $0.2 million and $3.7 million, respectively, within selling, general and administrative expenses for changes in the fair values of contingent consideration obligations associated with business combinations. All remaining contingent consideration obligations associated with business combinations were fully paid during the financial year ended January 31, 2022. Payments of contingent consideration earned under these agreements were $2.7 million and $4.9 million for the years ended January 31, 2022 and 2021, respectively.

RELATED PARTY TRANSACTIONS

12 Months Ended

Jan. 31, 2023

RELATED PARTY TRANSACTIONS

Related party transactions with Bank Leumi

During October 2022, Zvika Naggan, a member of our board of directors, was appointed to serve as member of the board of directors of Bank Leumi. Effective as of February 2021, we entered into a revolving credit facility with Bank Leumi Le-Israel B.M. (“Bank Leumi”), an Israeli bank. Under the credit facility with Bank Leumi, we were provided with a total of up to $50 million in borrowings, made available to the Company for three years from the effective date. Our obligations under the credit facility are guaranteed by certain customary affirmative and restrictive covenants for credit facilities of this type. The credit facilities also contain financial covenants which are measured at the end of each quarter.

As of January 31, 2023 we did not withdraw any funds from the credit facility with Bank Leumi.

Related party transactions with Verint

In connection with the spin-off we entered into a Separation and Distribution Agreement with Verint related to the separation and distribution. In addition, we entered into several other agreements with Verint prior to completion of the spin-off to effect the separation and provide a framework for our relationship with Verint after the spin-off, including a Tax Matters Agreement, an Employee Matters Agreement, an Intellectual Property Cross License Agreement, and a Trademark Cross License Agreement. In the years ended January 31, 2023 and 2022, we incurred net expenses of $4.7 million and $4.8 million, respectively in relation to these agreements with Verint. See also note “17. Commitment and Contingencies”.

The combined financial statements of the comparative figures for the year ended January 31, 2021 were prepared on a carve-out basis and derived from the consolidated financial statements and accounting records of Verint.

During the year ended January 31, 2021 Verint provided certain services, such as but not limited to, senior management, legal, human resources, finance and accounting, treasury, information technology, internal audit and other shared services, on behalf of the Company. Where possible, these costs were specifically identified to the Company, with the remainder primarily allocated on the basis of revenue as a relevant measure. The Company and Verint both consider the allocations to be a reasonable reflection of the benefits received by the Company. During the year ended January 31, 2021, the Company was allocated $97.3 million of corporate expenses incurred by Verint and such amounts are included in the consolidated statement of operations of the comparative figures of the year ended January 31, 2021. As certain expenses reflected in the consolidated financial statements for the year ended January 31, 2021 include allocations of corporate expenses from Verint, this statement could differ from the statement that would have been prepared had the Company operated on a stand-alone basis.

The components of the costs of services allocated to the Company for the year ended January 31, 2021 are as follows:


	Year Ended January 31,
(in thousands)	2021
Cost of revenue:
Software	$	1,981
Software service	1,548
Professional service and other	2,743

Research and development, net	21,783
Selling, general and administrative	69,210
Total allocated corporate expenses	$	97,265

On January 29, 2021, Cognyte Technologies Israel Ltd.’s board of directors declared a cash dividend (the “Dividend”) in the aggregate amount of $35.0 million payable to Verint, which was its sole holder of record of ordinary shares as of the January 29, 2021 record date for the Dividend. The Dividend was paid on April 13, 2021, following the board of director’s receipt and review of financial statements that met all the conditions set forth in Section 302(b) of the Companies Law and that satisfied the solvency test and profit test under the Companies Law required for distribution of the Dividend.

Cover Page	12 Months Ended
Cover Page	Jan. 31, 2023 shares
Entity Listings [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Jan. 31, 2023
Current Fiscal Year End Date	--01-31
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-39829
Entity Registrant Name	Cognyte Software Ltd.
Entity Incorporation, State or Country Code	L3
Entity Address, Address Line One	33 Maskit
Entity Address, City or Town	Herzliya Pituach
Entity Address, Postal Zip Code	4673333
Entity Address, Country	IL
Title of 12(b) Security	Ordinary Shares, no par value
Trading Symbol	CGNT
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding (in shares)	68,842,601
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001824814
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Business Contact
Entity Listings [Line Items]
Contact Personnel Name	David Abadi
Entity Address, Address Line One	33 Maskit
Entity Address, City or Town	Herzliya Pituach
Entity Address, Postal Zip Code	4673333
Entity Address, Country	IL
City Area Code	972-9
Local Phone Number	962-2300

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2023	Jan. 31, 2022
Derivative [Line Items]
Gains recorded in accumulated other comprehensive loss expected to be reclassified into earnings within the next twelve months	$ 0.6
Foreign currency forward contracts
Derivative [Line Items]
Derivative, notional amount	$ 91.3	$ 96.2

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Compensation and benefits	$ 38,253	$ 51,527
Distributor and agent commissions	10,345	14,877
Operating lease obligations - current portion	6,604	7,409
Income taxes	3,121	6,585
Taxes other than income taxes	8,929	2,962
Fair value of derivatives - current portion	1,592	801
Other	9,453	15,613
Total accrued expenses and other current liabilities	$ 78,297	$ 99,774
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities

RESEARCH AND DEVELOPMENT, NET - Schedule of Activity for Capitalized Software Development Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Movement in Capitalized Computer Software, Net [Roll Forward]
Capitalized software development costs, net, beginning of year	$ 13,920	$ 11,315	$ 11,679
Software development costs capitalized during the year	3,408	6,033	5,132
Amortization of capitalized software development costs	(4,708)	(3,291)	(3,072)
Business divestiture	(2,922)	0	0
Write-offs of capitalized software development costs	0	(142)	(2,244)
Foreign currency translation and other	8	5	(180)
Capitalized software development costs, net, end of year	$ 9,706	$ 13,920	$ 11,315

EARNINGS PER SHARE - Narrative (Details) - $ / shares	12 Months Ended
EARNINGS PER SHARE - Narrative (Details) - $ / shares	Jan. 31, 2023	Jan. 31, 2022	Feb. 28, 2021
Restructuring Cost and Reserve [Line Items]
Potentially dilutive shares (in shares)	480,000
Common stock, outstanding (in shares)	68,842,601	67,217,688
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Spinoff
Restructuring Cost and Reserve [Line Items]
Common stock, outstanding (in shares)			65,773,335

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Acquired Intangible Assets (Details)	12 Months Ended
	Jan. 31, 2023 reportingUnit
Finite-Lived Intangible Assets [Line Items]
Number of reporting units	1
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of finite-lived intangible assets	7 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Functional Currencies and Foreign Currency Transaction Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Accounting Policies [Abstract]
Foreign currency (losses) gains, net	$ (51)	$ (3,140)	$ 1,682

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Unrecognized tax benefits, including interest and penalties	$ 9,563	$ 8,604
Obligations for severance compensation	2,104	2,145
Other	0	25
Total other liabilities	$ 11,667	$ 10,774

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Current assets:
Cash and cash equivalents	$ 34,579	$ 152,590
Restricted cash and cash equivalents and restricted bank time deposits	4,359	3,597
Short-term investments	17,507	10,434
Accounts receivable, net of allowance for credit losses of $1.6 million and $2.1 million, respectively	113,201	179,198
Contract assets, net	17,476	27,908
Inventories	25,263	14,366
Prepaid expenses and other current assets	39,339	31,970
Total current assets	251,724	420,063
Property and equipment, net	25,874	30,839
Operating lease right-of-use assets	17,559	25,031
Goodwill	126,487	158,233
Intangible assets, net	650	3,162
Deferred income taxes	823	1,548
Other assets	19,961	25,729
Total assets	443,078	664,605
Current liabilities:
Short term loan	0	100,000
Accounts payable	20,677	36,664
Accrued expenses and other current liabilities	78,297	99,774
Contract liabilities	94,882	83,158
Total current liabilities	193,856	319,596
Long-term contract liabilities	14,382	14,520
Deferred income taxes	3,031	3,447
Operating lease liabilities	10,368	17,179
Other liabilities	11,667	10,774
Total liabilities	233,304	365,516
Commitments and Contingencies
Stockholders' equity:
Common stock - $0 par value; Authorized 300,000,000 shares. Issued and outstanding 68,842,601 and 67,217,688 at January 31, 2023 and January 31, 2022, respectively	0	0
Additional paid-in capital	338,465	316,706
Accumulated deficit	(129,022)	(14,890)
Accumulated other comprehensive loss	(15,314)	(16,679)
Total Cognyte Software Ltd. stockholders' equity	194,129	285,137
Noncontrolling interest	15,645	13,952
Total stockholders’ equity	209,774	299,089
Total liabilities and stockholders’ equity	$ 443,078	$ 664,605

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Raw materials	$ 17,337	$ 9,753
Work-in-process	7,057	2,953
Finished goods	869	1,660
Total inventories	$ 25,263	$ 14,366

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jan. 31, 2023

Accounting Policies [Abstract]

Schedule of Allowance for Doubtful Accounts

The following table summarizes the activity in our credit losses for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Allowance for credit losses, beginning of year	$	2,110	$	4,559	$	4,085
Cumulative effect of adoption of ASU No. 2016-13	—		—		435
Provisions charged to expense	2,824		342		1,840
Amounts written off	(3,080)		(2,791)		(1,922)
Business divestiture	(308)		—		—
Other, including fluctuations in foreign exchange rates	37		—		121
Allowance for credit losses, end of year	$	1,583	$	2,110	$	4,559

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Level 1
Assets:
Foreign currency forward contracts	$ 0	$ 0
Total assets	0	0
Liabilities:
Foreign currency forward contracts	0	0
Total liabilities	0	0
Level 2
Assets:
Foreign currency forward contracts	288	140
Total assets	288	140
Liabilities:
Foreign currency forward contracts	1,592	801
Total liabilities	1,592	801
Level 3
Assets:
Foreign currency forward contracts	0	0
Total assets	0	0
Liabilities:
Foreign currency forward contracts	0	0
Total liabilities	$ 0	$ 0

ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 299,089	$ 270,371	$ 455,171
Other comprehensive income (loss) before reclassifications	(4,766)	1,224	54
Amounts reclassified out of accumulated other comprehensive income	(6,131)	2,398	1,636
Other comprehensive loss	1,811	(1,388)	(1,270)
Ending balance	209,774	299,089	270,371
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(16,679)	(15,505)	(13,923)
Other comprehensive loss	1,365	(1,174)	(1,582)
Ending balance	(15,314)	(16,679)	(15,505)
Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(610)	559	596
Other comprehensive income (loss) before reclassifications	(6,148)	1,229	1,599
Amounts reclassified out of accumulated other comprehensive income	(6,131)	2,398	1,636
Other comprehensive loss	(16)	(1,169)	(37)
Ending balance	(626)	(610)	559
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(16,069)	(16,064)	(14,519)
Other comprehensive income (loss) before reclassifications	1,382	(5)	(1,545)
Amounts reclassified out of accumulated other comprehensive income	0	0	0
Other comprehensive loss	1,382	(5)	(1,545)
Ending balance	$ (14,687)	$ (16,069)	$ (16,064)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (b)
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+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

LEASES

12 Months Ended

Jan. 31, 2023

Leases [Abstract]

LEASES

We have entered into operating leases primarily for corporate offices, research and development facilities, and automobiles. Our leases have remaining lease terms of 1 year to 4.2 years. We do not have any finance leases as of January 31, 2023 and 2022.

The components of lease expenses for the years ended January 31, 2023 and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2023		2022
Operating lease expenses	$	8,241	$	9,552




Variable lease expenses	6,430		5,566
Short-term lease expenses	225		213

Total lease expenses	$	14,896	$	15,331

During the year ended January 31, 2023 and 2022, we decided to exit certain leased offices primarily due to our workforce operating under remote work environments and a decrease in the employees number, resulting in accelerated operating lease expenses of $1.5 million and $0.8 million, respectively.

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,272		$	8,733


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,240		$	3,756

Weighted average remaining lease terms
Operating leases	3 years			4 years

Weighted average discount rates
Operating leases	4.8		%	4.8		%

Maturities of lease liabilities as of January 31, 2023 were as follows:


	January 31, 2023
(in thousands)	Operating Leases
Year Ending January 31,
2024	$	7,487
2025	6,869
2026	4,486
2027	213
2028	5

Total future minimum lease payments	19,060
Less imputed interest	(2,088)
Total	$	16,972

Reported as of January 31, 2023:
Accrued expenses and other current liabilities	$	6,604
Operating lease liabilities	10,368

Total	$	16,972

LEASES

The components of lease expenses for the years ended January 31, 2023 and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2023		2022
Operating lease expenses	$	8,241	$	9,552




Variable lease expenses	6,430		5,566
Short-term lease expenses	225		213

Total lease expenses	$	14,896	$	15,331

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,272		$	8,733


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2,240		$	3,756

Weighted average remaining lease terms
Operating leases	3 years			4 years

Weighted average discount rates
Operating leases	4.8		%	4.8		%

Maturities of lease liabilities as of January 31, 2023 were as follows:


	January 31, 2023
(in thousands)	Operating Leases
Year Ending January 31,
2024	$	7,487
2025	6,869
2026	4,486
2027	213
2028	5

Total future minimum lease payments	19,060
Less imputed interest	(2,088)
Total	$	16,972

Reported as of January 31, 2023:
Accrued expenses and other current liabilities	$	6,604
Operating lease liabilities	10,368

Total	$	16,972

INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Changes in the balance of gross unrecognized tax benefits
Gross unrecognized tax benefits, beginning of year	$ 10,517	$ 9,872	$ 8,742
Increases related to tax positions taken during the current year	1,717	1,828	2,919
Increases related to tax positions taken during prior years	0	0	18
Decrease related to foreign currency exchange rates	(828)
Increase related to foreign currency exchange rates		256	272
Reductions for spin-off from Verint	0	(1,439)	0
Reductions for tax positions of prior years	0	0	(537)
Lapses of statutes of limitations	(513)	0	(1,542)
Gross unrecognized tax benefits, end of year	$ 10,893	$ 10,517	$ 9,872

INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income (Loss) Before Provision for Income Taxes

The components of income (loss) before provision for income taxes for the years ended January 31, 2023, 2022, and 2021 were as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
U.S.	$	(18,240)	$	(9,596)	$	(8,665)
Non-U.S.	(78,755)		17,857		33,389
Total income before provision for income taxes	$	(96,995)	$	8,261	$	24,724

Schedule of Provision for Income Taxes

The provision for income taxes for the years ended January 31, 2023, 2022, and 2021 consisted of the following:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Current provision (benefit) for income taxes:
U.S. Federal	$	5,161	$	—	$	(1,434)
U.S. State	204		(11)		(44)
Non-U.S.	7,546		12,668		8,087
Total current provision (benefit) for income taxes	12,911		12,657		6,609
Deferred provision (benefit) for income taxes:
U.S. Federal	2,155		(1,143)		(910)
U.S. State	(414)		53		(200)
Non-U.S.	(1,696)		6,950		(1,085)
Total deferred provision (benefit) for income taxes	45		5,860		(2,195)
Total provision for income taxes	$	12,956	$	18,517	$	4,414

Schedule of Effective Tax Rate Reconciliation

The reconciliation of the U.S. federal statutory rate to our effective tax rate on income before provision for income taxes for the years ended January 31, 2023, 2022, and 2021 was as follows:


	Year Ended January 31,
(dollars in thousands)	2023			2022			2021
U.S. federal statutory income tax rate	21.0		%	21.0		%	21.0		%

Income tax provision at the U.S. federal statutory rate	$	(20,369)		$	1,735		$	5,192
U.S. State income tax (benefit) provision	(156)			40			(226)
Non-U.S. tax rate differential	8,636			2,892			(2,836)
Tax incentives	(158)			(2,671)			(139)
Valuation allowances	7,450			12,731			31
Non-deductible expenses/non-taxable income	491			255			(261)
Business divestiture	7,372			—			—
Tax contingencies	6,286			2,056			1,184
Stock based and other compensation	1,102			898			101
U.S. tax effects of non-U.S. operations	2,316			540			1,001
Other, net	(14)			41			367
Total provision for income taxes	$	12,956		$	18,517		$	4,414
Effective income tax rate	(13.4)		%	224.1		%	17.9		%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following at January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Deferred tax assets:
Loss carryforwards	$	16,219	$	11,506
Accrued compensation	10,535		8,774
Accrued expenses	332		240
Operating lease liabilities	59		352
Exchange rate differences	105		343
Other, net	—		241
Total deferred tax assets	27,250		21,456
Deferred tax liabilities:
Deferred cost of revenue	(1,784)		(3,279)
Goodwill and other intangible assets	(692)		(928)
Depreciation of property and equipment	(150)		(217)
Operating lease right-of-use assets	(59)		(355)
Other, net	(747)		—
Total deferred tax liabilities	(3,432)		(4,779)
Valuation allowance	(26,026)		(18,576)
Net deferred tax liabilities	$	(2,208)	$	(1,899)

Recorded as:
Deferred tax assets	$	823	$	1,548
Deferred tax liabilities	(3,031)		(3,447)
Net deferred tax liabilities	$	(2,208)	$	(1,899)

Schedule of Valuation Allowance

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2023 and 2022:


	Year Ended January 31,
(in thousands)	2023		2022
Valuation allowance, beginning of year	$	(18,576)	$	(5,732)
Income tax (provision)	(7,450)		(12,731)
Spin-off from Verint	—		(113)
Valuation allowance, end of year	$	(26,026)	$	(18,576)

Schedule of Unrecognized Tax Benefits

For the years ended January 31, 2023, 2022, and 2021 the aggregate changes in the balance of gross unrecognized tax benefits were as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Gross unrecognized tax benefits, beginning of year	$	10,517	$	9,872	$	8,742
Increases related to tax positions taken during the current year	1,717		1,828		2,919

Increases related to tax positions taken during prior years	—		—		18
(Decreases) increases related to foreign currency exchange rates	(828)		256		272
Reductions for spin-off from Verint	—		(1,439)		—
Reductions for tax positions of prior years	—		—		(537)

Lapses of statutes of limitations	(513)		—		(1,542)
Gross unrecognized tax benefits, end of year	$	10,893	$	10,517	$	9,872

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION - Schedule of Revenue and Long-lived Assets by Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 312,062	$ 474,042	$ 443,458
Total EMEA
Revenues from External Customers and Long-Lived Assets
Total revenue	259,304	405,756	379,674
Israel
Revenues from External Customers and Long-Lived Assets
Total revenue	201,610	328,371	274,113
Germany
Revenues from External Customers and Long-Lived Assets
Total revenue	44,486	63,258	86,834
Other
Revenues from External Customers and Long-Lived Assets
Total revenue	13,208	14,127	18,727
Total Americas
Revenues from External Customers and Long-Lived Assets
Total revenue	45,126	55,595	51,880
United States
Revenues from External Customers and Long-Lived Assets
Total revenue	35,139	37,726	44,746
Other
Revenues from External Customers and Long-Lived Assets
Total revenue	9,987	17,869	7,134
APAC
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 7,633	$ 12,691	$ 11,904

INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Current provision (benefit) for income taxes:
U.S. Federal	$ 5,161	$ 0	$ (1,434)
U.S. State	204	(11)	(44)
Non-U.S.	7,546	12,668	8,087
Total current provision (benefit) for income taxes	12,911	12,657	6,609
Deferred provision (benefit) for income taxes:
U.S. Federal	2,155	(1,143)	(910)
U.S. State	(414)	53	(200)
Non-U.S.	(1,696)	6,950	(1,085)
Total deferred provision (benefit) for income taxes	45	5,860	(2,195)
Total provision for income taxes	$ 12,956	$ 18,517	$ 4,414

RELATED PARTY TRANSACTIONS - Schedule of Components of Costs of Services (Details) - Former Parent $ in Thousands	12 Months Ended
	Jan. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Allocation of management costs and corporate support services	$ 97,265
Research and development, net
Related Party Transaction [Line Items]
Allocation of management costs and corporate support services	21,783
Selling, general and administrative
Related Party Transaction [Line Items]
Allocation of management costs and corporate support services	69,210
Software \| Cost of revenue:
Related Party Transaction [Line Items]
Allocation of management costs and corporate support services	1,981
Software service \| Cost of revenue:
Related Party Transaction [Line Items]
Allocation of management costs and corporate support services	1,548
Professional service and other \| Cost of revenue:
Related Party Transaction [Line Items]
Allocation of management costs and corporate support services	$ 2,743

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Software Development Costs and Internal-Use Software (Details)	12 Months Ended
	Jan. 31, 2023
Minimum \| Software Development Costs
Software Development Costs
Estimated useful lives	6 years
Minimum \| Internal-Use Software
Software Development Costs
Estimated useful lives	4 years
Maximum \| Internal-Use Software
Software Development Costs
Estimated useful lives	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($)	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Accounting Policies [Abstract]
Minimum maturity period of short term investments in time deposits	90 days
Marketable debt securities	$ 0	$ 0

EARNINGS PER SHARE

12 Months Ended

Jan. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHAREThe following table summarizes the calculation of basic and diluted net income per ordinary share attributable to Cognyte for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands except share and per share data)	2023		2022		2021
Net (loss) income	$	(109,951)	$	(10,256)	$	20,310
Net income attributable to noncontrolling interest	4,181		4,634		6,107
Net (loss) income attributable to Cognyte Software Ltd.	$	(114,132)	$	(14,890)	$	14,203

Ordinary shares outstanding:
Basic shares	67,924		66,570		65,773
Effective of dilutive shares	—		—		—
Diluted shares	67,924		66,570		65,773

Net (loss) income per share attributable to Cognyte Software Ltd.:
Basic and diluted	$	(1.68)	$	(0.22)	$	0.22

For the year ended January 31, 2023 we had 480 thousand potentially dilutive shares.

On February 1, 2021, the date of consummation of the spin-off, 65,773,335 of the Company’s ordinary shares, no par value, were distributed to Verint shareholders of record as of the January 25, 2021 record date. This share amount is being utilized for the calculation of basic earnings per share (“EPS”) for all periods presented before the spin-off.

SHORT TERM LOAN	12 Months Ended
SHORT TERM LOAN	Jan. 31, 2023
Short-Term Debt [Abstract]
SHORT TERM LOAN	SHORT TERM LOAN We entered into two revolving credit facilities effective upon the completion of the spin-off, February 2021, which are valid for three years until January 31, 2024 and provide for a total of up to $100.0 million in total borrowings. As of January 31, 2023, we do not have any withdrawn funds from the revolving credit facilities. Interest rates on both facilities are based on LIBOR or Term SOFR plus a margin of 2.25% - 3.15%. The interest expense incurred on the withdrawn amount was $1.6 million and $0.2 million for the years ended January 31, 2023 and 2022, respectively. In addition, we are required to pay a commitment fee with respect to unused credit under the credit facilities at a rate of 0.55% - 0.75% per annum. The commitment fee incurred with respect to unused credit under the credit facilities was $0.3 million and $0.4 million for the year ended January 31, 2023 and 2022, respectively. Our obligations under the credit facilities are guaranteed by certain customary affirmative and restrictive covenants for credit facilities of this type. The credit facilities also contain financial covenants which are measured at the end of each quarter. During the year ended January 31, 2023, we reached into agreements with the banks about updated financial covenants in the credit facilities. The current financial covenants are: 1.The equity shall not decrease below $200 million or below 30% of Cognyte’s total consolidated assets. 2.Cognyte shall maintain, on consolidated basis, an amount of unrestricted cash and cash equivalents (including short term investments) of at least $25 million. 3.The current assets shall be higher than current liabilities. 4.The net cash (total cash, cash equivalents and short term investments less total debt) shall be higher than $10.0 million. The limitations imposed by the covenants are subject to certain exceptions. The credit facility agreements provide for default events with corresponding grace periods that are customary for credit facilities of this nature. Upon a default event, all of our obligations owed under the credit facilities may be declared immediately due and payable, and the lenders’ commitments to provide loans under the credit facility agreements may be terminated. As at January 31, 2023 and 2022 we met all the financial covenants.

ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2021
Former Parent
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Allocation of management costs and corporate support services		$ 97,265
Joint venture, variable interest entity in which entity is primary beneficiary
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Equity interest in a joint venture	50.00%

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Fair Value Disclosures [Abstract]
Noncontrolling equity investment in privately-held companies without readily determinable fair values	$ 7.0	$ 5.2
Noncontrolling equity investment in privately-held companies without readily determinable fair values, remeasured to fair value	2.4	4.4
Realized gain on partial sale of equity investment	$ 1.7	0.1
Unrealized gain on noncontrolling equity investment		$ 0.7

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION - Schedule of Major Customers (Details) - Revenue Benchmark - Customer Concentration Risk	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Customer A
Revenue, Major Customer
Concentration risk, percentage	17.70%	14.80%	16.90%
Customer B
Revenue, Major Customer
Concentration risk, percentage	10.00%	8.40%	14.10%

DIVESTITURE

12 Months Ended

Jan. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DIVESTITURE

On December 1, 2022 Cognyte sold SIS to Volaris. The sale was accomplished by $42.4 million in cash purchase and $4.7 million in hold back (recorded in Prepaid expenses and other current assets). The sale included equity interests, assets and liabilities attributable to the SIS business for a total consideration of $47.1 million, plus a performance based earn-out, if and to the extent earned. The SIS sale resulted in a pre-tax gain on sale of $5.8 million, net of $4.7 million closing costs included in Other income (expenses), net in the consolidated statements of operations. The sale price is subject to adjustment based on changes in actual closing net working capital. Final potential working capital adjustments are pending.

In connection with the sale, the Company and Volaris entered into a transition services agreement whereby the Company provides certain post-closing services to Volaris related to the business of SIS.

The transaction did not meet the criteria set forth in ASC 205-20 for discontinued operations as it did not reflect a significant strategic shift that would have a major effect on the Company's operations or financial results.

The following is a summary of the assets and liabilities distributed as part of the SIS Sale on December 1st, 2022:


	As of December 1,
(in thousands)	2022
Current assets:
Accounts receivable	5,217
Contract assets, net	2,091
Inventories	731
Prepaid expenses and other current assets	402
Total current assets	8,441
Property and equipment, net	1,409
Operating lease right-of-use assets	648
Goodwill	31,865
Intangible assets, net	415
Deferred income taxes	162
Other assets	3,392





Total assets	$	46,332


Current liabilities:

Accounts payable	$	1,327
Accrued expenses and other current liabilities	1,231
Contract liabilities	5,752

Total current liabilities	8,310
Long-term contract liabilities	946

Operating lease liabilities	461

Total liabilities	$	9,717

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative Financial Instruments (Details)	12 Months Ended
	Jan. 31, 2023 financial_institutions
Derivative [Line Items]
Number of financial institutions that are counterparties to derivative instruments	2
Minimum \| Foreign currency forward contracts \| Cash flow hedging
Derivative [Line Items]
Derivative, maturity	1 month
Maximum \| Foreign currency forward contracts \| Cash flow hedging
Derivative [Line Items]
Derivative, maturity	12 months

RESEARCH AND DEVELOPMENT, NET (Tables)

12 Months Ended

Jan. 31, 2023

Research and Development [Abstract]

Schedule of Activity for Capitalized Software Development Costs

Activity for our capitalized software development costs for the years ended January 31, 2023, 2022, and 2021, was as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Capitalized software development costs, net, beginning of year	$	13,920	$	11,315	$	11,679
Software development costs capitalized during the year	3,408		6,033		5,132
Amortization of capitalized software development costs	(4,708)		(3,291)		(3,072)
Business divestiture	(2,922)		—		—
Write-offs of capitalized software development costs	—		(142)		(2,244)
Foreign currency translation and other	8		5		(180)
Capitalized software development costs, net, end of year	$	9,706	$	13,920	$	11,315

INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Goodwill [Roll Forward]
Goodwill, net, beginning balance	$ 158,233	$ 158,183
Foreign currency translation	119	50
Business divestiture	(31,865)
Goodwill, net, ending balance	$ 126,487	$ 158,233

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands			1 Months Ended	3 Months Ended	12 Months Ended	44 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Mar. 02, 2023 USD ($)	Jun. 07, 2012 defendant	Mar. 31, 2009 plaintiff	Jan. 31, 2023 USD ($)	Jun. 30, 2019 mediation	Oct. 30, 2012 USD ($)	Feb. 07, 2023 USD ($)	Apr. 13, 2022 USD ($)
Loss Contingencies [Line Items]
Unconditional purchase obligations				$ 36,100
Off-balance sheet bank guarantees and letters of credit				43,600
Unrecognized tax benefit, uncertain tax position				4,700
Offices and Export Transaction
Loss Contingencies [Line Items]
Off-balance sheet bank guarantees and letters of credit				$ 3,600
Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of defendants \| defendant		3
Number of unsuccessful rounds of mediation \| mediation					2
Loss contingency accrual								$ 6,200
Pending Litigation \| Unfavorable Regulatory Action \| Cognyte Technologies Israel Ltd
Loss Contingencies [Line Items]
Assets plaintiffs sought to compel to set aside to secure future judgment						$ 150,000
Settled Litigation \| Unfavorable Regulatory Action \| Subsequent Event
Loss Contingencies [Line Items]
Loss contingency accrual							$ 16,000
Payments for legal settlements	$ 6,500
Case Numbers 4186/09 and 1335/09 \| Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff			1
Case Number 3444/09 \| Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff			1

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Narrative (Details)	12 Months Ended
	Jan. 31, 2023 USD ($)	Jan. 31, 2022 USD ($)	Jan. 31, 2021 USD ($)	Feb. 28, 2021
Share-Based Payment Arrangement [Abstract]
Unrecognized share-based compensation cost	$ 12,300,000
Expected period for recognition	1 year 6 months 3 days
Spin-off adjustment, conversion ratio				2.52
Employee contribution limit as a percentage of compensation	60.00%
Company's matching contribution as a percentage of employee's annual compensation	50.00%
Defined contribution plan employer matching contribution per employee maximum amount	$ 2,000
Matching contribution expense	100,000	$ 100,000	$ 200,000
Severance expenses	$ 8,800,000	$ 9,000,000	$ 7,500,000

DIVESTITURE - Disposal Groups, Including Discontinued Operations (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - SIS $ in Thousands	Dec. 01, 2022 USD ($)
Current assets:
Accounts receivable	$ 5,217
Contract assets, net	2,091
Inventories	731
Prepaid expenses and other current assets	402
Total current assets	8,441
Property and equipment, net	1,409
Operating lease right-of-use assets	648
Goodwill	31,865
Intangible assets, net	415
Deferred income taxes	162
Other assets	3,392
Total assets	46,332
Current liabilities:
Accounts payable	1,327
Accrued expenses and other current liabilities	1,231
Contract liabilities	5,752
Total current liabilities	8,310
Long-term contract liabilities	946
Operating lease liabilities	461
Total liabilities	$ 9,717

EARNINGS PER SHARE (Tables)

12 Months Ended

Jan. 31, 2023

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Income per Common Share

The following table summarizes the calculation of basic and diluted net income per ordinary share attributable to Cognyte for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands except share and per share data)	2023		2022		2021
Net (loss) income	$	(109,951)	$	(10,256)	$	20,310
Net income attributable to noncontrolling interest	4,181		4,634		6,107
Net (loss) income attributable to Cognyte Software Ltd.	$	(114,132)	$	(14,890)	$	14,203

Ordinary shares outstanding:
Basic shares	67,924		66,570		65,773
Effective of dilutive shares	—		—		—
Diluted shares	67,924		66,570		65,773

Net (loss) income per share attributable to Cognyte Software Ltd.:
Basic and diluted	$	(1.68)	$	(0.22)	$	0.22

ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Class of Stock [Line Items]
Research and development, net	$ 140,324	$ 143,360	$ 128,705
Selling, general and administrative	154,347	185,867	162,590
Total, before income taxes	96,995	(8,261)	(24,724)
(Provision) benefit for income taxes	12,956	18,517	4,414
Total, net of income taxes	109,951	10,256	(20,310)
Software
Class of Stock [Line Items]
Cost of revenue	19,975	28,955	35,647
Software service
Class of Stock [Line Items]
Cost of revenue	48,400	46,413	44,893
Professional service and other
Class of Stock [Line Items]
Cost of revenue	50,941	56,349	51,186
Foreign currency forward contracts \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Research and development, net	(3,009)	1,190	960
Selling, general and administrative	(2,479)	853	674
Total, before income taxes	(6,131)	2,314	1,882
(Provision) benefit for income taxes	0	84	(246)
Total, net of income taxes	(6,131)	2,398	1,636
Foreign currency forward contracts \| Software \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	(54)	6	39
Foreign currency forward contracts \| Software service \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	(278)	40	117
Foreign currency forward contracts \| Professional service and other \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	$ (311)	$ 225	$ 92

Audit Information	12 Months Ended
Audit Information	Jan. 31, 2023
Auditor [Line Items]
Auditor Name	Brightman Almagor Zohar & Co.
Auditor Firm ID	1197
Auditor Location	Tel Aviv, Israel
Deloitte & Touche LLP
Auditor [Line Items]
Auditor Name	Deloitte & Touche LLP
Auditor Firm ID	34
Auditor Location	New York, New York

DIVESTITURE (Tables)

12 Months Ended

Jan. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following is a summary of the assets and liabilities distributed as part of the SIS Sale on December 1st, 2022:


	As of December 1,
(in thousands)	2022
Current assets:
Accounts receivable	5,217
Contract assets, net	2,091
Inventories	731
Prepaid expenses and other current assets	402
Total current assets	8,441
Property and equipment, net	1,409
Operating lease right-of-use assets	648
Goodwill	31,865
Intangible assets, net	415
Deferred income taxes	162
Other assets	3,392





Total assets	$	46,332


Current liabilities:

Accounts payable	$	1,327
Accrued expenses and other current liabilities	1,231
Contract liabilities	5,752

Total current liabilities	8,310
Long-term contract liabilities	946

Operating lease liabilities	461

Total liabilities	$	9,717

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

REVENUE RECOGNITION - Schedule of Remaining Performance Obligation (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 582,991	$ 511,558
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation		$ 300,212
Revenue performance obligation, period		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 280,662	$ 211,346
Revenue performance obligation, period	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 302,329
Revenue performance obligation, period	1 year

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Jan. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Our primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk when deemed appropriate. We enter into these contracts in the normal course of business to mitigate risks and not for speculative purposes.

Foreign Currency Forward Contracts

Under our risk management strategy, we periodically use foreign currency forward contracts to manage our short-term exposures to fluctuations in operational cash flows resulting from changes in foreign currency exchange rates. These cash flow exposures result from portions of our forecasted operating expenses, primarily compensation and related expenses, which are transacted in currencies other than the U.S. dollar, most notably the New Israeli Shekel. We also periodically utilize foreign currency forward contracts to manage exposures resulting from forecasted customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency. These foreign currency forward contracts generally have maturities of no longer than twelve months.

We held outstanding foreign currency forward contracts with notional amounts of $91.3 million and $96.2 million as of January 31, 2023 and 2022, respectively.

Fair Values of Derivative Financial Instruments

The fair values of our derivative financial instruments and their classifications in our consolidated balance sheets as of January 31, 2023 and 2022 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2023		2022
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	288	$	125
Not designated as hedging instruments	Prepaid expenses and other current assets	—		15
Total derivative assets		$	288	$	140

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	914	$	736
Not designated as hedging instruments	Accrued expenses and other current liabilities	678		65
Total derivative liabilities		$	1,592	$	801

Derivative Financial Instruments in Cash Flow Hedging Relationships

The effects of derivative financial instruments designated as cash flow hedges on accumulated other comprehensive loss (“AOCL”) and on the consolidated statement of operations for the years ended January 31, 2023, 2022, and 2021, were as follows:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Net gains recognized in AOCL:
Foreign currency forward contracts	$	16	$	1,169	$	1,863

Net gains reclassified from AOCL to the consolidated statements of operations:
Foreign currency forward contracts	$	(6,131)	$	2,314	$	1,882

For information regarding the line item locations of the net losses on derivative financial instruments reclassified out of AOCL into the consolidated statements of operations, see Note 10, “Accumulated Other Comprehensive Loss.”

All of the foreign currency forward contracts underlying the $0.6 million of net unrealized gains recorded in our accumulated other comprehensive loss at January 31, 2023 mature within twelve months, and therefore we expect all such gains to be reclassified into earnings within the next twelve months.

Derivative Financial Instruments Not Designated as Hedging Instruments

Losses (gains) recognized on derivative financial instruments not designated as hedging instruments in our consolidated statements of operations for the years ended January 31, 2023, 2022, and 2021, were as follows:


	Classification in Consolidated Statements of Operations	Year Ended January 31,
(in thousands)		2023		2022		2021
Foreign currency forward contracts	Other income (expense), net	$	(426)	$	133	$	(95)

REVENUE RECOGNITION - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 113,201	$ 179,198
Contract assets, net	17,476	27,908
Contract liabilities	94,882	83,158
Long-term contract liabilities	$ 14,382	$ 14,520

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

12 Months Ended

Jan. 31, 2023

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

Stock-Based Compensation Expense

We recognized stock-based compensation expense in the following line items on the consolidated statements of operations for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Component of income before provision for income taxes:
Cost of revenue:
Software	$	229	$	229	$	734
Software service	1,078		1,160		441
Professional service and other	2,038		2,535		952

Research and development, net	8,048		7,792		5,621
Selling, general and administrative	13,955		21,320		19,794
Total stock-based compensation expense	25,348		33,036		27,542
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	3,358		4,196		4,347
Total stock-based compensation, net of taxes	$	21,990	$	28,840	$	23,195

The compensation expenses presented for the year ended of January 31, 2021 represent stock-based compensation expenses attributable to Cognyte based on the awards and terms previously granted under Verint’s stock-based compensation plans to Cognyte employees and an allocation of Verint’s corporate and shared functional employee stock-based compensation expenses. The Cognyte employees’ stock-based compensation expenses were specifically identified whereas Verint’s corporate and shared functional employees’ stock-based compensation expenses were specifically identified to the extent possible with the remainder allocated on the basis of revenue.

As of January 31, 2023, there was approximately $12.3 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 1.51 years.

The following table summarizes stock-based compensation expense by type of award for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Restricted stock units and restricted stock awards	$	21,759	$	31,825	$	23,423
Stock bonus program and bonus share program	3,487		1,040		4,000
Total equity-settled awards	25,246		32,865		27,423
Phantom stock units (cash-settled awards)	102		171		119
Total stock-based compensation expense	$	25,348	$	33,036	$	27,542

Awards under Cognyte’s stock bonus and bonus share programs are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of Cognyte common stock.

Stock-Based Awards Granted by Cognyte and Verint

Cognyte periodically awards restricted stock units (“RSU”) to directors, officers, and other employees. The fair value of these awards is equivalent to the market value of Cognyte’s common stock on the grant date. RSUs are not shares of Cognyte common stock and do not have any of the rights or privileges thereof, including voting or dividend rights. On the applicable vesting date, the holder of an RSU becomes entitled to a share of Cognyte common stock. RSUs are subject to certain restrictions and forfeiture provisions prior to vesting.

Cognyte periodically awards performance stock units(“PSU”) to executive officers that vest upon the achievement of specified performance goals. The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures.

Verint also periodically awards RSUs to directors, officers, and other employees, and PSUs to executive officers. All of the expenses recognized in the year ended January 31, 2021 and some of the expenses recognized in the years ended January 31, 2023 and 2022 relate to awards that were initially granted by Verint to Cognyte employees before the spin-off.

Once a performance vesting condition has been defined and communicated, and the requisite service period has begun, the Company recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the straight-line attribution method over the requisite service period. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts its compensation expenses based on its probability assessment.

RSUs that are expected to be settled with cash payments upon vesting, if any, are reflected as liabilities on our consolidated balance sheets. Such RSUs were insignificant at January 31, 2023, 2022, and 2021.


	Year Ended January 31,			Year Ended January 31,
	2023			2022
(in thousands, except grant date fair values)	Shares or Units	Weighted-Average Grant-Date Fair Value		Shares or Units	Weighted-Average Grant-Date Fair Value
Opening balance	1,901	$	24.42	2,149	$	22.92
Granted	2,208	$	6.87	1,416	$	25.60
Released	(1,627)	$	19.53	(1,452)	$	23.36
Forfeited	(559)	$	15.43	(212)	$	24.34
Closing balance	1,923	$	11.02	1,901	$	24.42

The opening balance of the outstanding shares for the year ended January 31, 2022 reflects the adjusted shares based on an adjustment ratio of approximately 2.52 as a result of the spin-off from Verint on February 1, 2022. This opening balance also reflects the fact that the closing balance of shares as at January 31, 2021 was determined based on an allocation of Verint shares to Cognyte. The weighted average fair value at grant date of the opening balance reflects the impact of a modification at the date of the spin-off.

Other Benefit Plans

401(k) Plan and Other Retirement Plans

We maintain a 401(k) Plan for our full-time employees in the United States. The plan allows eligible employees who attain the age of 21 beginning with the first of the month following their date of hire to elect to contribute up to 60% of their annual compensation, subject to the prescribed maximum amount. We match employee contributions at a rate of 50%, up to a maximum annual matched contribution of $2,000 per employee. Employee contributions are always fully vested, while our matching contributions for each year vest on the last day of the calendar year provided the employee remains employed with us on that day.

Our matching contribution expenses for our 401(k) Plan were $0.1 million, $0.1 million and $0.2 million for the years ended January 31, 2023, 2022, and 2021, respectively.

We provide retirement benefits for non-U.S. employees as required by local laws or to a greater extent as we deem appropriate through plans that function similar to 401(k) plans. Funding requirements for programs required by local laws are determined on an individual country and plan basis and are subject to local country practices and market circumstances.

Severance Pay

We are obligated to make severance payments for the benefit of certain employees of Israel and our foreign subsidiaries. Severance payments made to Israeli employees are considered significant compared to all other subsidiaries with severance payment arrangements. Under Israeli law, we are obligated to make severance payments to certain employees of our Israeli subsidiaries, subject to certain conditions. In most cases, our liability for these severance payments is fully provided for by

regular deposits to funds administered by insurance providers and by an accrual for the amount of our liability which has not yet been deposited.

Severance expenses for our Israeli employees for the years ended January 31, 2023, 2022, and 2021 were $8.8 million, $9.0 million, and $7.5 million respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Concentration Risk [Line Items]
Accounts receivable, net	$ 113,201	$ 179,198
Governments outside the United States
Concentration Risk [Line Items]
Accounts receivable, net	$ 54,200	$ 80,100

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Values of Derivatives (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Fair Values of Derivative Financial Instruments
Derivative assets	$ 288	$ 140
Derivative liabilities	1,592	801
Foreign currency forward contracts \| Prepaid expenses and other current assets \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Derivative assets	288	125
Foreign currency forward contracts \| Prepaid expenses and other current assets \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Derivative assets	0	15
Foreign currency forward contracts \| Accrued expenses and other current liabilities \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Derivative liabilities	914	736
Foreign currency forward contracts \| Accrued expenses and other current liabilities \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Derivative liabilities	$ 678	$ 65

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (426)	$ 133	$ (95)
Foreign currency forward contracts \| Not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (426)	$ 133	$ (95)

EARNINGS PER SHARE - Schedule of Calculation of Basic and Diluted Net Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Earnings Per Share [Abstract]
Net (loss) income	$ (109,951)	$ (10,256)	$ 20,310
Net income attributable to noncontrolling interest	4,181	4,634	6,107
Net (loss) income attributable to Cognyte Software Ltd.	$ (114,132)	$ (14,890)	$ 14,203
Ordinary shares outstanding:
Basic shares (in shares)	67,924	66,570	65,773
Effective of dilutive shares (in shares)	0	0	0
Diluted shares (in shares)	67,924	66,570	65,773
Net (loss) income per share attributable to Cognyte Software Ltd.:
Basic (in dollars per share)	$ (1.68)	$ (0.22)	$ 0.22
Diluted (in dollars per share)	$ (1.68)	$ (0.22)	$ 0.22

LEASES - Schedule of Components of Lease Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Leases [Abstract]
Operating lease expenses	$ 8,241	$ 9,552
Variable lease expenses	6,430	5,566
Short-term lease expenses	225	213
Total lease expenses	$ 14,896	$ 15,331

INTANGIBLE ASSETS AND GOODWILL - Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 67,413	$ 72,781
Accumulated Amortization	(66,764)	(69,619)
Net	650	3,162
Acquired technology
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	61,058	64,150
Accumulated Amortization	(61,058)	(62,909)
Net	0	1,241
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	3,550	4,166
Accumulated Amortization	(3,002)	(2,913)
Net	549	1,253
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	805	1,158
Accumulated Amortization	(704)	(876)
Net	101	282
Distribution network
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	2,000	2,000
Accumulated Amortization	(2,000)	(2,000)
Net	$ 0	0
Non-competition agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Cost		1,307
Accumulated Amortization		(921)
Net		$ 386

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Deferred tax assets:
Loss carryforwards	$ 16,219	$ 11,506
Accrued compensation	10,535	8,774
Accrued expenses	332	240
Operating lease liabilities	59	352
Exchange rate differences	105	343
Other, net	0	241
Total deferred tax assets	27,250	21,456
Deferred tax liabilities:
Deferred cost of revenue	(1,784)	(3,279)
Goodwill and other intangible assets	(692)	(928)
Depreciation of property and equipment	(150)	(217)
Operating lease right-of-use assets	(59)	(355)
Other, net	(747)	0
Total deferred tax liabilities	(3,432)	(4,779)
Valuation allowance	(26,026)	(18,576)
Net deferred tax liabilities	(2,208)	(1,899)
Recorded as:
Deferred tax assets	823	1,548
Deferred tax liabilities	(3,031)	(3,447)
Net deferred tax liabilities	$ (2,208)	$ (1,899)

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Jan. 31, 2023

Condensed Financial Information Disclosure [Abstract]

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Consolidated Balance Sheets

Inventories consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Raw materials	$	17,337	$	9,753
Work-in-process	7,057		2,953
Finished goods	869		1,660
Total inventories	$	25,263	$	14,366

Property and equipment, net consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Land and buildings	$	2,854	$	2,854
Leasehold improvements	13,486		14,032
Software	27,889		26,281
Equipment, furniture and other	54,617		54,880
Total cost	98,846		98,047
Less: accumulated depreciation and amortization	(72,971)		(67,208)
Total property and equipment, net	$	25,874	$	30,839

Depreciation expense on property and equipment was $11.7 million, $15.5 million and $16.9 million in the years ended January 31, 2023, 2022, and 2021, respectively.

Prepaid expenses and other current assets consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Prepaid expenses	$	29,081	$	22,653
Deferred cost of revenue	2,347		3,096
Income tax receivables	7,028		5,464
Other	883		757
Total prepaid expenses and other current assets	$	39,339	$	31,970

Other assets consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Long-term restricted cash and time deposits	$	203	$	2,488
Capitalized software development costs, net	9,706		13,920
Deferred commissions	2,339		1,897
Long-term deferred cost of revenue	127		525
Long-term security deposits	6		716

Noncontrolling investments accounted under ASC 321	7,046		5,162
Other	534		1,021
Total other assets	$	19,961	$	25,729

Accrued expenses and other current liabilities consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Compensation and benefits	$	38,253	$	51,527
Distributor and agent commissions	10,345		14,877
Operating lease obligations - current portion	6,604		7,409
Income taxes	3,121		6,585

Taxes other than income taxes	8,929		2,962
Fair value of derivatives - current portion	1,592		801
Other	9,453		15,613
Total accrued expenses and other current liabilities	$	78,297	$	99,774

Other liabilities consisted of the following as of January 31, 2023 and 2022:


	January 31,
(in thousands)	2023		2022
Unrecognized tax benefits, including interest and penalties	$	9,563	$	8,604
Obligations for severance compensation	2,104		2,145
Other	—		25
Total other liabilities	$	11,667	$	10,774

Consolidated Statements of Operations

Other income (expense), net consisted of the following for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Gain from business divestiture	$	5,764	—		—
Gains on investments, net	$	1,660	$	729	$	3,769
Foreign currency (losses) gains, net	(51)		$	(3,140)	$	1,682
(Losses) gains on derivative financial instruments, net	(426)		133		(95)
Other expense, net	204		(403)		(70)
Total other income (expense), net	$	7,151	$	(2,681)	$	5,286

Consolidated Statements of Cash Flows

The following table provides supplemental information regarding our consolidated cash flows for the years ended January 31, 2023, 2022, and 2021:


	Year Ended January 31,
(in thousands)	2023		2022		2021
Cash paid for interest	$	1,978	$	470	$	38
Cash payments of income taxes, net	$	11,284	8,232		1,260
Non-cash investing and financing transactions:
Accrued cash dividends payable to parent	$	—	—		35,000
Accrued but unpaid purchases of property and equipment	$	972	1,166		2,636
Inventory transfers to property and equipment	$	1,474	537		894

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Jan. 31, 2023

Stockholders' Equity Note [Abstract]

Summary of Components of Accumulated Other Comprehensive Loss

The following table summarizes changes in the components of our accumulated other comprehensive loss for the years ended January 31, 2023, 2022, and 2021:


(in thousands)	Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges		Foreign Currency Translation Adjustments		Total




Balance at January 31, 2020	596		(14,519)		(13,923)
Other comprehensive income (loss) before reclassifications	1,599		(1,545)		54
Amounts reclassified out of accumulated other comprehensive income	1,636		—		1,636
Net current period OCI	(37)		(1,545)		(1,582)
Balance at January 31, 2021	559		(16,064)		(15,505)
Other comprehensive income (loss) before reclassifications	1,229		(5)		1,224
Amounts reclassified out of accumulated other comprehensive income	2,398		—		2,398
Net current period OCI	(1,169)		(5)		(1,174)
Balance at January 31, 2022	(610)		(16,069)		(16,679)
Other comprehensive (loss) income before reclassifications	(6,148)		1,382		(4,766)
Amounts reclassified out of accumulated other comprehensive income	(6,131)		—		(6,131)
Net current period OCI	(16)		1,382		1,365
Balance at January 31, 2023	$	(626)	$	(14,687)	$	(15,314)

Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss

The amounts reclassified out of accumulated other comprehensive loss into the consolidated statements of operations, with presentation location, for the years ended January 31, 2023, 2022, and 2021, were as follows:


	Year Ended January 31,						Financial Statement Location
(in thousands)	2023		2022		2021
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	(54)	$	6	$	39	Cost of software revenue
	(278)		40		117		Cost of software service revenue
	(311)		225		92		Cost of professional service and other revenue
	(3,009)		1,190		960		Research and development, net
	(2,479)		853		674		Selling, general and administrative
	(6,131)		2,314		1,882		Total, before income taxes
	—		84		(246)		(Provision) benefit for income taxes
	$	(6,131)	$	2,398	$	1,636	Total, net of income taxes

INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization Expense on Acquired Intangibles (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Intangible Assets - Future Amortization [Abstract]
2024	$ 362
2025	288
Net	$ 650	$ 3,162

ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Jan. 31, 2023

Stockholders' Equity Note [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss includes items such as foreign currency translation adjustments and unrealized gains and losses on derivative financial instruments designated as hedges. Accumulated other comprehensive loss is presented as a separate line item in the equity section of our consolidated balance sheets. Accumulated other comprehensive loss items have no impact on our net income as presented in our consolidated statements of operations.

The following table summarizes changes in the components of our accumulated other comprehensive loss for the years ended January 31, 2023, 2022, and 2021:


(in thousands)	Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges		Foreign Currency Translation Adjustments		Total




Balance at January 31, 2020	596		(14,519)		(13,923)
Other comprehensive income (loss) before reclassifications	1,599		(1,545)		54
Amounts reclassified out of accumulated other comprehensive income	1,636		—		1,636
Net current period OCI	(37)		(1,545)		(1,582)
Balance at January 31, 2021	559		(16,064)		(15,505)
Other comprehensive income (loss) before reclassifications	1,229		(5)		1,224
Amounts reclassified out of accumulated other comprehensive income	2,398		—		2,398
Net current period OCI	(1,169)		(5)		(1,174)
Balance at January 31, 2022	(610)		(16,069)		(16,679)
Other comprehensive (loss) income before reclassifications	(6,148)		1,382		(4,766)
Amounts reclassified out of accumulated other comprehensive income	(6,131)		—		(6,131)
Net current period OCI	(16)		1,382		1,365
Balance at January 31, 2023	$	(626)	$	(14,687)	$	(15,314)

All amounts presented in the table above are net of income taxes, if applicable. The accumulated net income in foreign currency translation adjustments primarily reflect the weakening of the U.S. dollar against the Brazilian real, which has resulted in higher U.S. dollar-translated balances of Brazilian real.


	Year Ended January 31,						Financial Statement Location
(in thousands)	2023		2022		2021
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	(54)	$	6	$	39	Cost of software revenue
	(278)		40		117		Cost of software service revenue
	(311)		225		92		Cost of professional service and other revenue
	(3,009)		1,190		960		Research and development, net
	(2,479)		853		674		Selling, general and administrative
	(6,131)		2,314		1,882		Total, before income taxes
	—		84		(246)		(Provision) benefit for income taxes
	$	(6,131)	$	2,398	$	1,636	Total, net of income taxes

REVENUE RECOGNITION (Tables)

12 Months Ended

Jan. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue


	Year Ended January 31,
(in thousands)	2023		2022		2021
Revenue by recurrence:
Recurring revenue	$	197,398	$	230,969	$	223,405
Nonrecurring revenue	114,664		243,073		220,053
Total revenue	$	312,062	$	474,042	$	443,458

Schedule of Contract Balances

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:


	January 31,
(in thousands)	2023		2022
Accounts receivable, net	$	113,201	$	179,198
Contract assets, net	$	17,476	$	27,908

Contract liabilities	$	94,882	$	83,158
Long-term contract liabilities	$	14,382	$	14,520

Schedule of Remaining Performance Obligation

The following table provides information about our RPO:


	January 31,
(in thousands)	2023		2022
RPO:
Expected to be recognized within 1 year	$	280,662	$	300,212
Expected to be recognized in more than 1 year	302,329		211,346
Total RPO	$	582,991	$	511,558

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021	Jan. 31, 2020
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefit, uncertain tax position	$ 4,700
Percentage decrease in effective tax rate for tax incentives		0.10%	32.30%	0.60%
Operating loss carryforwards	131,800	$ 131,800
Period of cumulative losses incurred		3 years
Deferred tax assets, valuation allowance recognised		$ 7,500
Valuation allowance	26,026	26,026	$ 18,576
Unrecognized tax benefits	10,893	10,893	10,517	$ 9,872	$ 8,742
Unrecognized tax benefits, income tax penalties and interest expense		600	400	$ 100
Unrecognized tax benefits, income tax penalties and interest accrued	1,400	1,400	$ 900
Decrease in unrecognized tax benefits is reasonably possible	3,100	3,100
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	400	400
Non-U.S.
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 131,400	$ 131,400

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2023	Jan. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,583	$ 2,110
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, outstanding (in shares)	68,842,601	67,217,688
Common stock, issued (in shares)	68,842,601	67,217,688

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Jan. 29, 2021	Feb. 28, 2021	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Affiliated Entity \| Credit Facility Borrowings \| Bank Leumi
Related Party Transaction [Line Items]
Due to related parties		$ 50,000
Agreement term		3 years
Former Parent
Related Party Transaction [Line Items]
Net expenses			$ 4,700	$ 4,800
Allocation of management costs and corporate support services					$ 97,265
Dividends declared	$ 35,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, net (Details)	12 Months Ended
	Jan. 31, 2023
Equipment, furniture and other \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Equipment, furniture and other \| Maximum
Property, Plant and Equipment
Estimated useful lives	6 years
Software
Property, Plant and Equipment
Estimated useful lives	4 years
Buildings
Property, Plant and Equipment
Estimated useful lives	25 years

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jan. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivatives

The fair values of our derivative financial instruments and their classifications in our consolidated balance sheets as of January 31, 2023 and 2022 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2023		2022
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	288	$	125
Not designated as hedging instruments	Prepaid expenses and other current assets	—		15
Total derivative assets		$	288	$	140

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	914	$	736
Not designated as hedging instruments	Accrued expenses and other current liabilities	678		65
Total derivative liabilities		$	1,592	$	801

Schedule of the Effects of Derivatives Designated as Cash Flow Hedges


	Year Ended January 31,
(in thousands)	2023		2022		2021
Net gains recognized in AOCL:
Foreign currency forward contracts	$	16	$	1,169	$	1,863

Net gains reclassified from AOCL to the consolidated statements of operations:
Foreign currency forward contracts	$	(6,131)	$	2,314	$	1,882

Schedule of Derivatives Not Designated as Hedging Instruments


	Classification in Consolidated Statements of Operations	Year Ended January 31,
(in thousands)		2023		2022		2021
Foreign currency forward contracts	Other income (expense), net	$	(426)	$	133	$	(95)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Cash flows from operating activities:
Net (loss) income	$ (109,951)	$ (10,256)	$ 20,310
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	18,050	21,278	22,519
Allowance for credit losses	2,763	432	1,850
Gain from business divestiture, see Note 7	(5,764)	0	0
Stock-based compensation, excluding cash-settled awards	25,246	32,865	27,423
Provision (benefit) from deferred income taxes	45	5,860	(2,195)
Non-cash (losses) gains on derivative financial instruments, net	426	(133)	95
Change in fair value of contingent consideration for business combinations	0	(134)	(3,665)
Other non-cash items, net	681	766	(2,964)
Changes in operating assets and liabilities:
Accounts receivable	59,186	(5,718)	1,496
Contract assets	8,517	(7,115)	8,442
Inventories	(13,101)	(363)	(1,142)
Prepaid expenses and other assets	(2,364)	8,465	5,119
Accounts payable and accrued expenses	(37,885)	4,885	8,668
Contract liabilities	18,000	(51,314)	(16,770)
Other liabilities	174	1,761	210
Other, net	(1,010)	1,351	1,915
Net cash (used in) provided by operating activities	(36,987)	2,630	71,311
Cash flows from investing activities:
Purchases of property and equipment	(8,274)	(11,759)	(14,199)
Purchases of short-term investments	(55,150)	(58,973)	(48,585)
Maturities and sales of short-term investments	48,765	52,978	51,174
Settlements of derivative financial instruments not designated as hedges	201	(138)	213
Cash paid for capitalized software development costs	(3,408)	(6,033)	(5,132)
Proceeds from Business divestiture, net of cost, see Note 7	37,635	0	0
Change in restricted bank time deposits, including long-term portion	358	5,561	31,084
Other investing activities	0	513	1,863
Net cash provided by (used in) investing activities	20,127	(17,851)	16,418
Cash flows from financing activities:
Net transfers to former parent	0	0	(189,047)
(Repayment) withdrawal from credit facility - presented as short term loan	(100,000)	100,000	0
Dividend paid to former parent	0	(35,000)	0
Repayments of parent borrowings	0	0	(7,025)
Dividends paid to noncontrolling interest	(2,934)	(3,338)	(4,176)
Payments of contingent consideration for business combinations (financing portion)	0	(2,738)	(4,877)
Other financing activities	0	(181)	(492)
Net cash (used in) provided by financing activities	(102,934)	58,743	(205,617)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	617	41	(864)
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents	(119,176)	43,563	(118,752)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	158,220	114,657	233,409
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	39,044	158,220	114,657
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents at end of period:
Cash and cash equivalents	34,579	152,590	78,570
Restricted cash and cash equivalents included in restricted cash and cash equivalents and restricted bank time deposits	4,302	3,486	25,904
Restricted cash and cash equivalents included in other assets	163	2,144	10,183
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$ 39,044	$ 158,220	$ 114,657