0001824814-24-000020 | 20-F | XBRL Viewer

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

12 Months Ended

Jan. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Inventories consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Raw materials	$	12,124	$	17,337
Work-in-process	6,751		7,057
Finished goods	5,709		869
Total inventories	$	24,584	$	25,263

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Land and buildings	$	2,854	$	2,854
Leasehold improvements	12,368		13,486
Software	26,355		27,889
Equipment, furniture and other	51,551		54,617
Total cost	93,128		98,846
Less: accumulated depreciation and amortization	(68,744)		(72,971)
Total property and equipment, net	$	24,384	$	25,874

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Prepaid expenses	$	26,701	$	29,081
Deferred cost of revenue	1,451		2,347
Income tax receivables	4,249		7,028
Foreign currency forward contracts	1,792		288
Other	942		595
Total prepaid expenses and other current assets	$	35,135	$	39,339

Schedule of Other Assets

Other assets consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Long-term restricted cash and time deposits	$	137	$	203
Capitalized software development costs, net	8,370		9,706
Deferred commissions	2,567		2,339
Long-term deferred cost of revenue	390		127
Long-term security deposits	132		6

Noncontrolling investments accounted under ASC 321	7,186		7,046
Other	353		534
Total other assets	$	19,135	$	19,961

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Compensation and benefits	$	45,476	$	38,253
Distributor and agent commissions	9,630		10,345
Operating lease obligations - current portion	5,413		6,604
Income taxes	3,428		3,121

Taxes other than income taxes	8,447		12,720
Fair value of derivatives - current portion	223		1,592
Other	3,209		5,662
Total accrued expenses and other current liabilities	$	75,826	$	78,297

Schedule of Other Liabilities

Other liabilities consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Unrecognized tax benefits, including interest and penalties	$	5,810	$	9,563
Obligations for severance compensation	1,796		2,104

Total other liabilities	$	7,606	$	11,667

Schedule of Other (Expense) Income, Net

Other income (expense), net consisted of the following for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Gain from business divestiture	$	4,768	$	5,764	$	—
Gains on investments, net	$	—	$	1,660	$	729
Foreign currency losses, net	$	(846)	$	(51)	$	(3,140)
(Losses) gains on derivative financial instruments, net	$	(330)	$	(426)	$	133
Other (expense) income, net	(677)		204		(403)
Total other income (expense), net	$	2,915	$	7,151	$	(2,681)

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Cash paid for interest, including commitment fee	$	663	$	1,978	$	470
Cash payments of income taxes, net	$	6,766	11,284		8,232
Non-cash investing and financing transactions:

Accrued but unpaid purchases of property and equipment	$	163	972		1,166
Extinguishment of liability with stocks	$	3,856	—		2,514
Inventory transfers to property and equipment	$	1,639	1,474		537

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Component of (loss) income before provision for income taxes:
Cost of revenue:
Software	$	(9)	$	229	$	229
Software service	1,071		1,078		$	1,160
Professional service and other	355		2,038		$	2,535

Research and development, net	2,232		8,048		$	7,792
Selling, general and administrative	8,539		13,955		$	21,320
Total stock-based compensation expense	12,188		25,348		$	33,036
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	1,615		3,358		$	4,196
Total stock-based compensation, net of taxes	$	10,573	$	21,990	$	28,840

As of January 31, 2024, there was approximately $15.7 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 1.52 years.

The following table summarizes stock-based compensation expense by type of award for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Restricted stock units and restricted stock awards	$	12,777	$	21,759	$	31,825
Stock bonus program and bonus share program	(610)		3,487		1,040
Total equity-settled awards	12,167		25,246		32,865
Phantom stock units (cash-settled awards)	21		102		171
Total stock-based compensation expense	$	12,188	$	25,348	$	33,036

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 used to award RSUs to directors, officers, and other employees, and PSUs to executive officers before the spin-off. 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, 2024, 2023, and 2022.

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, 2024 and 2023:


	Year Ended January 31,			Year Ended January 31,
	2024			2023
(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	1,923	$	11.02	1,901	$	24.42
Granted	4,041	$	4.55	2,208	$	6.87
Released	(2,164)	$	7.51	(1,627)	$	19.53
Forfeited	(203)	$	18.43	(559)	$	15.43
Closing balance	3,597	$	5.44	1,923	$	11.02

Other Benefit Plans

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, 2024, 2023, and 2022 were $6.3 million, $8.8 million, and $9.0 million respectively.

ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION (Details)	12 Months Ended
	Jan. 31, 2024
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%

EARNINGS PER SHARE

12 Months Ended

Jan. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year plus dilutive potential equivalent ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings per 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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands except share and per share data)	2024		2023		2022
Net loss	$	(11,645)	$	(109,951)	$	(10,256)
Net income attributable to noncontrolling interest	3,925		4,181		4,634
Net loss attributable to Cognyte Software Ltd.	$	(15,570)	$	(114,132)	$	(14,890)

Ordinary shares outstanding:
Basic shares	70,081		67,924		66,570
Effective of dilutive shares	—		—		—
Diluted shares	70,081		67,924		66,570

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

For the years ended January 31, 2024, 2023, and 2022 we had 733 thousand, 480 thousand and 603 thousand potentially dilutive shares, respectively.

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Raw materials	$ 12,124	$ 17,337
Work-in-process	6,751	7,057
Finished goods	5,709	869
Total inventories	$ 24,584	$ 25,263

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,645)	$ (109,951)	$ (10,256)
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation adjustments	196	1,828	(219)
Net increase (decrease) from foreign exchange contracts designated as hedges	2,228	(16)	(1,253)
Benefit for income taxes on net increase (decrease) from foreign exchange contracts designated as hedges	0	0	84
Other comprehensive income (loss)	2,424	1,811	(1,388)
Comprehensive loss	(9,221)	(108,140)	(11,644)
Comprehensive income attributable to noncontrolling interest	3,665	4,627	4,420
Comprehensive loss attributable to Cognyte Software Ltd.	$ (12,886)	$ (112,767)	$ (16,064)

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Total Cognyte Software Ltd. Equity	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Former Net Parent Investment	Accumulated Other Comprehensive Loss	Non-controlling Interest
Beginning balance at Jan. 31, 2021	$ 270,371	$ 257,501	$ 0	$ 0	$ 0	$ 0	$ 273,006	$ (15,505)	$ 12,870
Increase (Decrease) in Stockholders' Equity
Spin-off from Verint	9,558	9,558					9,558
Net (loss) income	(10,256)	(14,890)				(14,890)			4,634
Other comprehensive income (loss)	(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 (loss) income	(109,951)	(114,132)				(114,132)			4,181
Other comprehensive income (loss)	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
Increase (Decrease) in Stockholders' Equity
Net (loss) income	(11,645)	(15,570)				(15,570)			3,925
Other comprehensive income (loss)	2,424	2,684						2,684	(260)
Share-based compensation activity	16,632	16,632		16,632
Dividends to noncontrolling interest	(2,452)								(2,452)
Ending balance at Jan. 31, 2024	$ 214,733	$ 197,875	$ 0	$ 355,097	$ 0	$ (144,592)	$ 0	$ (12,630)	$ 16,858

- Definition

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

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- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent and noncontrolling interest. Excludes temporary equity.

+ References

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+ Details

INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Goodwill [Roll Forward]
Goodwill, net, beginning balance	$ 126,487	$ 158,233
Foreign currency translation	76	119
Business divestiture		(31,865)
Goodwill, net, ending balance	$ 126,563	$ 126,487

- 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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, net (Details)	Jan. 31, 2024
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	50 years

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Level 1
Assets:
Foreign currency forward contracts	$ 0	$ 0
Consideration Asset or Liability in Business Divestitures	0
Total assets	0	0
Liabilities:
Foreign currency forward contracts	0	0
Total liabilities	0	0
Level 2
Assets:
Foreign currency forward contracts	1,792	288
Consideration Asset or Liability in Business Divestitures	0
Total assets	1,792	288
Liabilities:
Foreign currency forward contracts	223	1,592
Total liabilities	223	1,592
Level 3
Assets:
Foreign currency forward contracts	0	0
Consideration Asset or Liability in Business Divestitures	4,954
Total assets	4,954	0
Liabilities:
Foreign currency forward contracts	0	0
Total liabilities	$ 0	$ 0

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Deferred tax assets:
Loss carryforwards	$ 18,100	$ 16,219
Accrued compensation	10,996	10,741
Capitalized research and development	5,080	5,192
Inventory	1,199	43
Accrued expenses	706	126
Operating lease liabilities	0	59
Exchange rate differences	400	105
Total deferred tax assets	36,481	32,485
Deferred tax liabilities:
Deferred revenue	(565)	(1,784)
Goodwill and other intangible assets	(6,242)	(5,884)
Depreciation of property and equipment	0	(150)
Operating lease right-of-use assets	0	(59)
Other, net	(417)	(790)
Total deferred tax liabilities	(7,224)	(8,667)
Valuation allowance	(28,293)	(26,026)
Net deferred tax liabilities	964
Net deferred tax liabilities		(2,208)
Recorded as:
Deferred tax assets	2,928	823
Deferred tax liabilities	$ (1,964)	(3,031)
Net deferred tax liabilities		$ (2,208)

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Revenue:
Total revenue	$ 313,404	$ 312,062	$ 474,042
Cost of revenue:
Amortization of acquired technology	0	619	682
Total cost of revenue	98,000	119,935	132,399
Gross profit	215,404	192,127	341,643
Operating expenses:
Research and development, net	107,283	140,324	143,360
Selling, general and administrative	125,784	154,347	185,867
Amortization of other acquired intangible assets	391	779	1,455
Total operating expenses	233,458	295,450	330,682
Operating (loss) income	(18,054)	(103,323)	10,961
Other income (expenses), net:
Interest income	1,896	774	177
Interest expense	(16)	(1,597)	(196)
Other income (expenses), net	2,915	7,151	(2,681)
Total other income (expenses), net	4,795	6,328	(2,700)
(Loss) income before provision for income taxes	(13,259)	(96,995)	8,261
(Benefit) provision for income taxes	(1,614)	12,956	18,517
Net loss	(11,645)	(109,951)	(10,256)
Net income attributable to noncontrolling interest	3,925	4,181	4,634
Net loss attributable to Cognyte Software Ltd.	$ (15,570)	$ (114,132)	$ (14,890)
Net loss per share attributable to Cognyte Software Ltd.:
Basic (in dollars per share)	$ (0.22)	$ (1.68)	$ (0.22)
Diluted (in dollars per share)	$ (0.22)	$ (1.68)	$ (0.22)
Weighted-average shares outstanding:
Basic (in shares)	70,081	67,924	66,570
Diluted (in shares)	70,081	67,924	66,570
Software
Revenue:
Total revenue	$ 113,541	$ 98,288	$ 209,988
Cost of revenue:
Cost of revenue	18,919	19,975	28,955
Software service
Revenue:
Total revenue	165,027	175,690	201,563
Cost of revenue:
Cost of revenue	43,305	48,400	46,413
Professional service and other
Revenue:
Total revenue	34,836	38,084	62,491
Cost of revenue:
Cost of revenue	$ 35,776	$ 50,941	$ 56,349

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Jan. 31, 2024
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, 2024, our unconditional purchase obligations totaled approximately $28 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 have received non-refundable grants from the IIA that have funded 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, 2024, we had approximately $50 million of outstanding bank guarantees and letters of credit relating primarily to these performance guarantees. As of January 31, 2024, 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. During the fourth quarter of fiscal year ending January 31, 2024, the uncertain tax positions associated with Verint, as well as the corresponding indemnification asset, were reversed due to the expiration of the statute of limitations. 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 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 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 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 to approve 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 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, leaving two installments of approximately $4.7 million each, one was paid in September 2023 and was paid in March 2024. 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. On March 1, 2023, a putative securities class action complaint was filed in the United States District Court for the Southern District of New York against Cognyte Software Ltd. (“Cognyte” or the “Company”), its Chief Executive Officer and its Chief Financial Officer (collectively, “Defendants”) on behalf of all purchasers of the Company’s common stock during the period between February 2, 2021, and June 28, 2022, and seeking unspecified damages. On November 10, 2023, Plaintiff filed an amended complaint (the “Amended Complaint”). The Amended Complaint alleges that Cognyte and its Chief Executive Officer purportedly issued false and misleading statements and made omissions in violation of U.S. federal securities laws between February 2, 2021, and January 19, 2023. Plaintiff alleges that statements such as those in Cognyte’s code of conduct asserting that the Company operates in an ethical manner and complies with the law in the jurisdictions in which it operates, as well as its descriptions of services provided and its customer base, were purportedly false and misleading because Cognyte allegedly violated social media companies’ community standards and terms of service and the export control laws of Israel and other jurisdictions. The Company has not accrued any losses in connection with this proceeding. The Company’s position is that this lawsuit has no merit, and it has filed a motion to dismiss the Amended Complaint.. We are a party to various litigation matters and claims that arise from time to time in the ordinary course of our business. While we believe that the ultimate outcome of any such current matters will not have a material adverse effect on us, their outcomes are not determinable and negative outcomes may adversely affect our financial position, liquidity, or results of operations. In addition, under the Separation and Distribution Agreement we entered into with Verint in connection with the spin-off, the parties have agreed to certain other indemnification arrangements with respect to litigation claims and liabilities allocated in the spin-off.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivative Financial Instruments (Details)	12 Months Ended
	Jan. 31, 2024 institution
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

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (330)	$ (426)	$ 133
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 \| Not designated as hedging instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
(Losses) gains on derivative financial instruments, net	$ (330)	$ (426)	$ 133

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Property, Plant and Equipment
Total cost	$ 93,128	$ 98,846
Less: accumulated depreciation and amortization	(68,744)	(72,971)
Total property and equipment, net	24,384	25,874
Land and buildings
Property, Plant and Equipment
Total cost	2,854	2,854
Leasehold improvements
Property, Plant and Equipment
Total cost	12,368	13,486
Software
Property, Plant and Equipment
Total cost	26,355	27,889
Equipment, furniture and other
Property, Plant and Equipment
Total cost	$ 51,551	$ 54,617

INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Current provision (benefit) for income taxes:
U.S. Federal	$ (4,116)	$ 5,161	$ 0
U.S. State	(120)	204	(11)
Non-U.S.	5,738	7,546	12,668
Total current provision (benefit) for income taxes	1,502	12,911	12,657
Deferred provision (benefit) for income taxes:
U.S. Federal	(199)	2,155	(1,143)
U.S. State	(52)	(414)	53
Non-U.S.	(2,865)	(1,696)	6,950
Total deferred provision (benefit) for income taxes	(3,116)	45	5,860
Total provision for income taxes	$ (1,614)	$ 12,956	$ 18,517

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

12 Months Ended

Jan. 31, 2024

Condensed Financial Information Disclosure [Abstract]

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Consolidated Balance Sheets

Inventories consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Raw materials	$	12,124	$	17,337
Work-in-process	6,751		7,057
Finished goods	5,709		869
Total inventories	$	24,584	$	25,263

Property and equipment, net consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Land and buildings	$	2,854	$	2,854
Leasehold improvements	12,368		13,486
Software	26,355		27,889
Equipment, furniture and other	51,551		54,617
Total cost	93,128		98,846
Less: accumulated depreciation and amortization	(68,744)		(72,971)
Total property and equipment, net	$	24,384	$	25,874

Depreciation expense on property and equipment was $9.9 million, $11.7 million and $15.5 million in the years ended January 31, 2024, 2023, and 2022, respectively.

Prepaid expenses and other current assets consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Prepaid expenses	$	26,701	$	29,081
Deferred cost of revenue	1,451		2,347
Income tax receivables	4,249		7,028
Foreign currency forward contracts	1,792		288
Other	942		595
Total prepaid expenses and other current assets	$	35,135	$	39,339

Other assets consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Long-term restricted cash and time deposits	$	137	$	203
Capitalized software development costs, net	8,370		9,706
Deferred commissions	2,567		2,339
Long-term deferred cost of revenue	390		127
Long-term security deposits	132		6

Noncontrolling investments accounted under ASC 321	7,186		7,046
Other	353		534
Total other assets	$	19,135	$	19,961

Accrued expenses and other current liabilities consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Compensation and benefits	$	45,476	$	38,253
Distributor and agent commissions	9,630		10,345
Operating lease obligations - current portion	5,413		6,604
Income taxes	3,428		3,121

Taxes other than income taxes	8,447		12,720
Fair value of derivatives - current portion	223		1,592
Other	3,209		5,662
Total accrued expenses and other current liabilities	$	75,826	$	78,297

Other liabilities consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Unrecognized tax benefits, including interest and penalties	$	5,810	$	9,563
Obligations for severance compensation	1,796		2,104

Total other liabilities	$	7,606	$	11,667

Consolidated Statements of Operations

Other income (expense), net consisted of the following for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Gain from business divestiture	$	4,768	$	5,764	$	—
Gains on investments, net	$	—	$	1,660	$	729
Foreign currency losses, net	$	(846)	$	(51)	$	(3,140)
(Losses) gains on derivative financial instruments, net	$	(330)	$	(426)	$	133
Other (expense) income, net	(677)		204		(403)
Total other income (expense), net	$	2,915	$	7,151	$	(2,681)

Consolidated Statements of Cash Flows

The following table provides supplemental information regarding our consolidated cash flows for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Cash paid for interest, including commitment fee	$	663	$	1,978	$	470
Cash payments of income taxes, net	$	6,766	11,284		8,232
Non-cash investing and financing transactions:

Accrued but unpaid purchases of property and equipment	$	163	972		1,166
Extinguishment of liability with stocks	$	3,856	—		2,514
Inventory transfers to property and equipment	$	1,639	1,474		537

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Concentration Risk [Line Items]
Accounts receivable, net	$ 113,260	$ 113,201
Governments outside the United States
Concentration Risk [Line Items]
Accounts receivable, net	$ 42,600	$ 54,200

DIVESTITURE (Tables)

12 Months Ended

Jan. 31, 2024

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 completed sale as of January 31, 2024:


	As of January 31,
(in thousands)	2024
Current assets:
Accounts receivable	$	5,719
Contract assets, net	2,091
Inventories	731
Prepaid expenses and other current assets	407
Total current assets	8,948
Property and equipment, net	1,424
Operating lease right-of-use assets	710
Goodwill	31,865
Intangible assets, net	415
Deferred income taxes	162
Other assets	3,392





Total assets	$	46,916


Current liabilities:

Accounts payable	$	1,327
Accrued expenses and other current liabilities	1,257
Contract liabilities	5,863

Total current liabilities	8,447
Long-term contract liabilities	946

Operating lease liabilities	510

Total liabilities	$	9,903

- 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.

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+ Details

INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024 and 2023:


	January 31, 2024
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	53,118	$	(53,118)	$	—
Customer relationships	1,451		(1,193)		258

Distribution network	2,000		(2,000)		—

Total intangible assets	$	56,569	$	(56,311)	$	258


	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

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
2025	$	258


Total	$	258

Schedule of Goodwill Activity

The change in the net carrying amount of goodwill activity for the years ended January 31, 2024 and 2023 was as follows:



(in thousands)	Amount









Goodwill at January 31, 2022	$	158,233
Foreign currency translation	119
Business divestiture	(31,865)
Goodwill at January 31, 2023	$	126,487



Foreign currency translation	76
Goodwill at January 31, 2024	$	126,563

- Definition

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

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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization Expense on Acquired Intangibles (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Intangible Assets - Future Amortization [Abstract]
2025	$ 258
Net	$ 258	$ 650

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($)	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ (400,000)	$ (1,400,000)	$ (2,100,000)
Impairment of intangible assets, finite-lived	0		0
Finite lived intangible assets, writeoffs	10,900,000
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
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

REVENUE RECOGNITION - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 113,260	$ 113,201
Contract assets, net	8,859	17,476
Contract liabilities	93,778	94,882
Long-term contract liabilities	$ 29,362	$ 14,382

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION - Schedule of Major Customers (Details) - Revenue Benchmark - Customer Concentration Risk	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Customer A
Revenue, Major Customer
Concentration risk, percentage	16.50%	17.70%	14.80%
Customer B
Revenue, Major Customer
Concentration risk, percentage	11.00%	10.00%	8.40%

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2024	Jan. 31, 2023
Derivative [Line Items]
Gains recorded in accumulated other comprehensive loss expected to be reclassified into earnings within the next twelve months	$ 1.6
Foreign currency forward contracts
Derivative [Line Items]
Derivative, notional amount	$ 74.4	$ 91.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning of year	$ 1,583	$ 2,110	$ 4,559
Provisions charged to expense	2,578	2,824	342
Amounts written off	(7)	(3,080)	(2,791)
Business divestiture	(62)	(308)	0
Other, including fluctuations in foreign exchange rates	(1)	37	0
Allowance for credit losses, end of year	$ 4,091	$ 1,583	$ 2,110

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Functional Currencies and Foreign Currency Transaction Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Accounting Policies [Abstract]
Gain (loss), foreign currency transaction	$ (846)	$ (51)	$ (3,140)

EARNINGS PER SHARE (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands except share and per share data)	2024		2023		2022
Net loss	$	(11,645)	$	(109,951)	$	(10,256)
Net income attributable to noncontrolling interest	3,925		4,181		4,634
Net loss attributable to Cognyte Software Ltd.	$	(15,570)	$	(114,132)	$	(14,890)

Ordinary shares outstanding:
Basic shares	70,081		67,924		66,570
Effective of dilutive shares	—		—		—
Diluted shares	70,081		67,924		66,570

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

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, 2024	Jan. 31, 2023	Jan. 31, 2022
Stock-based compensation expense
Total stock-based compensation expense	$ 12,188	$ 25,348	$ 33,036
Total equity-settled awards
Stock-based compensation expense
Total stock-based compensation expense	12,167	25,246	32,865
Restricted stock units and restricted stock awards
Stock-based compensation expense
Total stock-based compensation expense	12,777	21,759	31,825
Stock bonus program and bonus share program
Stock-based compensation expense
Total stock-based compensation expense	(610)	3,487	1,040
Phantom stock units (cash-settled awards)
Stock-based compensation expense
Total stock-based compensation expense	$ 21	$ 102	$ 171

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Summary of Stock Awards Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Shares or Units
Beginning balance (in shares)	1,923	1,901
Granted (in shares)	4,041	2,208
Released (in shares)	(2,164)	(1,627)
Forfeited (in shares)	(203)	(559)
Ending balance (in shares)	3,597	1,923
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share)	$ 11.02	$ 24.42
Granted (in dollars per share)	4.55	6.87
Released (in dollars per share)	7.51	19.53
Forfeited (in dollars per share)	18.43	15.43
Ending balance (in dollars per share)	$ 5.44	$ 11.02

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jan. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS

LEASES - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 7,201	$ 8,272	$ 8,733
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 23,293	$ 2,240	$ 3,756
Weighted average remaining lease terms
Operating leases	8 years	3 years	4 years
Weighted average discount rates
Operating leases	6.50%	4.80%	4.80%

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024 and 2023 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2024		2023
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	1,778	$	288
Not designated as hedging instruments	Prepaid expenses and other current assets	14		—
Total derivative assets		$	1,792	$	288

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	177	$	914
Not designated as hedging instruments	Accrued expenses and other current liabilities	46		678
Total derivative liabilities		$	223	$	1,592

Schedule of the Effects of Derivatives Designated as Cash Flow Hedges

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, 2024, 2023, and 2022, were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	(2,228)	$	16	$	1,169

Net (losses) gains reclassified from AOCL to the consolidated statement of operations:
Foreign currency forward contracts	$	(6,484)	$	(6,131)	$	2,314

Schedule of Derivatives Not Designated as Hedging Instruments

in our consolidated statements of operations for the years ended January 31, 2024, 2023, and 2022, were as follows:


	Classification in Consolidated Statements of Operations	Year Ended January 31,
(in thousands)		2024		2023		2022
Foreign currency forward contracts	Other (expense) income, net	$	(330)	$	(426)	$	133

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2021	Jan. 31, 2024	Jan. 31, 2023
Affiliated Entity \| Credit Facility Borrowings \| Bank Leumi
Related Party Transaction [Line Items]
Maximum borrowing capacity	$ 35.0
Agreement term	2 years
Former Parent
Related Party Transaction [Line Items]
Operating costs and expenses		$ 4.7	$ 4.7

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	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 December 31, 2023 we have extended the 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 $35 million in borrowings, made available to the Company for two years, through January 2026. 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, 2024 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, 2024 and 2023, we incurred net income (expenses) of $4.7 million and $(4.7) million, respectively in relation to the Tax Matters Agreement with Verint. See also note “17. Commitment and Contingencies”.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

FAIR VALUE MEASUREMENTS

12 Months Ended

Jan. 31, 2024

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, 2024 and 2023:


	January 31, 2024
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	1,792	$	—
Consideration Asset or Liability in Business Divestitures	$	—	$	—	4,954
Total assets	$	—	$	1,792	$	4,954
Liabilities:
Foreign currency forward contracts	$	—	$	223	$	—

Total liabilities	$	—	$	223	$	—


	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	$	—

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 and Divestitures - The fair value of the contingent consideration related to business combinations and divestitures 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. During the year ended January 31, 2024 we recorded $5 million of contingent working capital adjustments receivable on the consolidated balance sheet under “Prepaid expenses and other current assets” resulted from SIS business divestiture, see Note 7, “Divestiture.”

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 $7.2 million and $7.0 million, on January 31, 2024 and 2023, of which $2.4 million was remeasured to fair value based on an observable transaction during the year ended January 31, 2023. These investments are included within other assets on the consolidated balance sheets. An unrealized gain of $1.7 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 year ended January 31, 2023. We did not recognize any impairments or other adjustments during the years ended January 31, 2024 and 2023.

- 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

SHORT TERM LOAN	12 Months Ended
SHORT TERM LOAN	Jan. 31, 2024
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 1, 2021, which were valid for three years until January 31, 2024 and provided for a total of up to $100 million in total borrowings. Based on the Company’s financial objectives, current cash balance and expected cash, we have extended these two revolving credit facilities effective as of December 31, 2023 and January 24, 2024, for an additional two years through January, 2026 which provide for a total of up to $65 million in total borrowings. As of January 31, 2024, we do not have any withdrawn funds from the revolving credit facilities. Interest rates on both facilities are based on Term SOFR plus a margin of 3.26% - 3.31%. We did not incur interest expenses related to our revolving credit facilities for the year ended January 31, 2024. Interest expenses in the amount of $1.6 million were incurred for the year ended January 31, 2023. In addition, we are required to pay a commitment fee with respect to unused credit under the credit facilities at a rate of 0.75% per annum. The commitment fee incurred with respect to unused credit under the credit facilities was $0.7 million and $0.3 million for the years ended January 31, 2024 and 2023, 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. With respect to the two years extensions, we have negotiated updated financial covenants in the credit facilities with the banks. The current financial covenants are: 1.The equity shall not decrease below $165 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 unrestricted net cash (total cash, cash equivalents and short term investments less total debt) shall be higher than $15 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, 2024 and 2023 we met all the financial covenants.

RESEARCH AND DEVELOPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Research and Development Expense [Abstract]
Gross research and development expenses	$ 107,300	$ 140,400	$ 143,700
Reimbursements from the IIA and other government grant programs	0	0	300
Capitalized computer software, impairments	$ 0	$ 0	$ 142

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions			1 Months Ended			3 Months Ended		12 Months Ended		44 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Mar. 02, 2023 USD ($) installment	Jun. 07, 2012 defendant	Mar. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Mar. 31, 2009 plaintiff	Jan. 31, 2024 USD ($)	Jan. 31, 2023 USD ($)	Jan. 31, 2023 USD ($)	Jun. 30, 2019 mediation	Oct. 30, 2012 USD ($)	Feb. 07, 2023 USD ($)
Loss Contingencies [Line Items]
Unconditional purchase obligations						$ 28.0
Off-balance sheet bank guarantees and letters of credit						50.0
Unrecognized tax benefit, uncertain tax position						4.7	$ 4.7	$ 4.7
Offices and Export Transaction
Loss Contingencies [Line Items]
Off-balance sheet bank guarantees and letters of credit						$ 3.6
Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Number of defendants \| defendant		3
Number of unsuccessful rounds of mediation \| mediation									2
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										$ 150.0
Settled Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Loss contingency accrual											$ 16.0
Payments for legal settlements	$ 6.5			$ 4.7
Number of installments \| installment	2
Settled Litigation \| Unfavorable Regulatory Action \| Forecast
Loss Contingencies [Line Items]
Payments for legal settlements			$ 4.7
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

ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 209,774	$ 299,089	$ 270,371
Other comprehensive income (loss) before reclassifications	(3,800)	(4,766)	1,224
Amounts reclassified out of accumulated other comprehensive income	(6,484)	(6,131)	2,398
Other comprehensive income (loss)	2,424	1,811	(1,388)
Ending balance	214,733	209,774	299,089
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(15,314)	(16,679)	(15,505)
Other comprehensive income (loss)	2,684	1,365	(1,174)
Ending balance	(12,630)	(15,314)	(16,679)
Unrealized Gains (Losses) on Derivative Financial Instruments Designated as Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(626)	(610)	559
Other comprehensive income (loss) before reclassifications	(4,256)	(6,148)	1,229
Amounts reclassified out of accumulated other comprehensive income	(6,484)	(6,131)	2,398
Other comprehensive income (loss)	2,228	(16)	(1,169)
Ending balance	1,602	(626)	(610)
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(14,687)	(16,069)	(16,064)
Other comprehensive income (loss) before reclassifications	456	1,382	(5)
Amounts reclassified out of accumulated other comprehensive income	0	0	0
Other comprehensive income (loss)	456	1,382	(5)
Ending balance	$ (14,231)	$ (14,687)	$ (16,069)

- Definition

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

+ References

+ Details

- Definition

Amount of equity (deficit) attributable to parent and noncontrolling interest. Excludes temporary equity.

+ References

+ Details

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION - Schedule of Revenue and Long-lived Assets by Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 313,404	$ 312,062	$ 474,042
Total EMEA
Revenues from External Customers and Long-Lived Assets
Total revenue	283,743	259,304	405,756
Israel
Revenues from External Customers and Long-Lived Assets
Total revenue	215,312	201,610	328,371
Germany
Revenues from External Customers and Long-Lived Assets
Total revenue	53,480	44,486	63,258
Other
Revenues from External Customers and Long-Lived Assets
Total revenue	14,950	13,208	14,127
Total Americas
Revenues from External Customers and Long-Lived Assets
Total revenue	17,176	45,126	55,595
United States
Revenues from External Customers and Long-Lived Assets
Total revenue	10,029	35,139	37,726
Other
Revenues from External Customers and Long-Lived Assets
Total revenue	7,147	9,987	17,869
APAC
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 12,486	$ 7,633	$ 12,691

REVENUE RECOGNITION - Narrative (Details) $ in Thousands	12 Months Ended
REVENUE RECOGNITION - Narrative (Details) $ in Thousands	Jan. 31, 2024 USD ($) customer	Jan. 31, 2023 USD ($)	Jan. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Capitalized contract cost, impairment loss	$ (1,400)
Amount reclassified to accounts receivable from contract asset	14,400	$ 16,300
Contract assets recognized in current period	7,400	10,300
Contract assets, net		2,100
Accounts receivable, net	113,260	113,201
Current period revenue recognized from beginning balance of contract liabilities	$ 76,600	61,300
Governments outside the United States
Disaggregation of Revenue [Line Items]
Number of customers outside the United States \| customer	2
Accounts receivable, net	$ 42,600	54,200
Sales Commission
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	12,600	9,700
Capitalized contract cost, amortization	15,600	13,300	$ 24,400
Sales Commission \| Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	10,100	7,400
Sales Commission \| Other assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	2,600	2,300
Costs to Fulfill
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	1,800	2,500
Capitalized contract cost, amortization	2,300	3,900	$ 7,800
Costs to Fulfill \| Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	1,500	2,400
Costs to Fulfill \| Other assets
Disaggregation of Revenue [Line Items]
Capitalized contract cost, net	$ 400	$ 100
Minimum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	1 year
Maximum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	3 years

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022:


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




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)
Other comprehensive (loss) income before reclassifications	(4,256)		456		(3,800)
Amounts reclassified out of accumulated other comprehensive income	(6,484)		—		(6,484)
Net current period OCI	2,228		456		2,684
Balance at January 31, 2024	$	1,602	$	(14,231)	$	(12,630)

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, 2024, 2023, and 2022, were as follows:


	Year Ended January 31,						Financial Statement Location
(in thousands)	2024		2023		2022
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	(10)	$	(54)	$	6	Cost of software revenue
	(97)		(278)		40		Cost of software service revenue
	(643)		(311)		225		Cost of professional service and other revenue
	(2,893)		(3,009)		1,190		Research and development, net
	(2,841)		(2,479)		853		Selling, general and administrative
	(6,484)		(6,131)		2,314		Total, before income taxes
	—		—		84		(Provision) benefit for income taxes
	$	(6,484)	$	(6,131)	$	2,398	Total, net of income taxes

LEASES - Schedule of Components of Lease Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Leases [Abstract]
Operating lease expenses	$ 6,401	$ 7,695	$ 7,725
Variable lease expenses	1,480	2,536	2,146
Short-term lease expenses	78	243	292
Other lease related expenses	4,207	4,422	5,168
Sublease income	(875)	0	0
Total lease expenses	$ 11,290	$ 14,896	$ 15,331

ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION	12 Months Ended
ORGANIZATION, OPERATIONS AND BASIS OF PRESENTATION	Jan. 31, 2024
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 The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP). The currency of the primary economic environment in which the operations of Cognyte and certain subsidiaries are conducted is the U.S. dollar ("dollar"); thus, the dollar is the functional currency of Cognyte and certain subsidiaries. Cognyte and certain subsidiaries' transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries whose functional currency has been determined to be a non-dollar currency, assets and liabilities are translated at year-end foreign currency exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss) in shareholders' equity. The accompanying consolidated 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. To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or stockholders’ equity as previously reported.

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Share-Based Payment Arrangement [Abstract]
Unrecognized share-based compensation cost	$ 15.7
Expected period for recognition	1 year 6 months 7 days
Severance expenses	$ 6.3	$ 8.8	$ 9.0

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Values of Derivatives (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Fair Values of Derivative Financial Instruments
Derivative assets	$ 1,792	$ 288
Derivative liabilities	223	1,592
Foreign currency forward contracts \| Prepaid expenses and other current assets \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Derivative assets	1,778	288
Foreign currency forward contracts \| Prepaid expenses and other current assets \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Derivative assets	14	0
Foreign currency forward contracts \| Accrued expenses and other current liabilities \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Derivative liabilities	177	914
Foreign currency forward contracts \| Accrued expenses and other current liabilities \| Not designated as hedging instruments
Fair Values of Derivative Financial Instruments
Derivative liabilities	$ 46	$ 678

RESEARCH AND DEVELOPMENT, NET (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022, was as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Capitalized software development costs, net, beginning of year	$	9,706	$	13,920	$	11,315
Software development costs capitalized during the year	2,034		3,408		6,033
Amortization of capitalized software development costs	(3,370)		(4,708)		(3,291)
Business divestiture	—		(2,922)		—
Write-offs of capitalized software development costs	—		—		(142)
Foreign currency translation and other	—		8		5
Capitalized software development costs, net, end of year	$	8,370	$	9,706	$	13,920

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefit, uncertain tax position	$ 4,700	$ 4,700		$ 4,700
Percentage decrease in effective tax rate for tax incentives			0.40%	0.10%	32.30%
Operating loss carryforwards	142,300		$ 142,300
Period of cumulative losses incurred			3 years
Deferred tax assets, valuation allowance recognized			$ 2,300
Valuation allowance	28,293	26,026	28,293	$ 26,026
Unrecognized tax benefits	7,283	10,893	7,283	10,893	$ 10,517	$ 9,872
Unrecognized tax benefits that would impact effective tax rate	4,600		4,600
Unrecognized tax benefit that would be recognized as net operating loss carryforward	2,700		2,700
Unrecognized tax benefits, income tax penalties and interest expense			100	600	$ 400
Increase (decrease) unrecognized tax benefits			(3,200)
Unrecognized tax benefits, income tax penalties and interest accrued	1,200	$ 1,400	1,200	$ 1,400
Decrease in unrecognized tax benefits is reasonably possible	2,100		2,100
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	400		400
Non-U.S.
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 141,900		$ 141,900

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION (Tables)

12 Months Ended

Jan. 31, 2024

Segment Reporting [Abstract]

Schedule of Revenue by Region

The information below summarizes revenue by major geographic region for the years ended January 31, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
EMEA:
Israel	$	215,312	$	201,610	$	328,371
Germany	53,480		44,486		63,258
Other	14,950		13,208		14,127
Total EMEA	283,743		259,304		405,756
Americas:
United States	10,029		35,139		37,726
Other	7,147		9,987		17,869
Total Americas	17,176		45,126		55,595
APAC	12,486		7,633		12,691
Total revenue	$	313,404	$	312,062	$	474,042

Schedule of Long-lived Assets by Region

Property and equipment, net by geographic area consisted of the following as of January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Israel	$	18,814	$	20,090
United States	290		173
Other countries	5,280		5,611
Total property and equipment, net	$	24,384	$	25,874

Schedule of Major Customers

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


	Year Ended January 31,
	2024		2023		2022
Customer A	16.5	%	17.7	%	14.8	%
Customer B	11.0	%	10.0	%	8.4	%

INCOME TAXES (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
U.S.	$	(11,360)	$	(18,240)	$	(9,596)
Non-U.S.	(1,899)		(78,755)		17,857
Total income before provision for income taxes	$	(13,259)	$	(96,995)	$	8,261

Schedule of Provision for Income Taxes

The provision for income taxes for the years ended January 31, 2024, 2023, and 2022 consisted of the following:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Current provision (benefit) for income taxes:
U.S. Federal	$	(4,116)	$	5,161	$	—
U.S. State	(120)		204		(11)
Non-U.S.	5,738		7,546		12,668
Total current provision (benefit) for income taxes	1,502		12,911		12,657
Deferred provision (benefit) for income taxes:
U.S. Federal	(199)		2,155		(1,143)
U.S. State	(52)		(414)		53
Non-U.S.	(2,865)		(1,696)		6,950
Total deferred provision (benefit) for income taxes	(3,116)		45		5,860
Total provision for income taxes	$	(1,614)	$	12,956	$	18,517

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, 2024, 2023, and 2022 was as follows:


	Year Ended January 31,
(dollars in thousands)	2024			2023			2022
U.S. federal statutory income tax rate	21.0		%	21.0		%	21.0		%

Income tax provision at the U.S. federal statutory rate	$	(2,785)		$	(20,369)		$	1,735
U.S. State income tax (benefit) provision	(172)			(156)			40
Non-U.S. tax rate differential	1,187			8,636			2,892
Tax incentives	(196)			(158)			(2,671)
Valuation allowances	2,267			7,450			12,731
Non-deductible expenses/non-taxable income	46			491			255
Business divestiture	111			7,372			—
Tax contingencies	(5,136)			6,286			2,056
Stock based and other compensation	954			1,102			898
U.S. tax effects of non-U.S. operations	2,162			2,316			540
Other, net	(52)			(14)			41
Total provision for income taxes	$	(1,614)		$	12,956		$	18,517
Effective income tax rate	12.2		%	(13.4)		%	224.1		%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following at January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Deferred tax assets:
Loss carryforwards	$	18,100	$	16,219
Accrued compensation	10,996		10,741
Capitalized research and development	5,080		5,192
Inventory	1,199		43
Accrued expenses	706		126
Operating lease liabilities	—		59
Exchange rate differences	400		105

Total deferred tax assets	36,481		32,485
Deferred tax liabilities:
Deferred revenue	(565)		(1,784)
Goodwill and other intangible assets	(6,242)		(5,884)
Depreciation of property and equipment	—		(150)
Operating lease right-of-use assets	—		(59)
Other, net	(417)		(790)
Total deferred tax liabilities	(7,224)		(8,667)
Valuation allowance	(28,293)		(26,026)
Net deferred tax liabilities	$	964	$	(2,208)

Recorded as:
Deferred tax assets	$	2,928	$	823
Deferred tax liabilities	(1,964)		(3,031)
Net deferred tax liabilities	$	964	$	(2,208)

Schedule of Valuation Allowance

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2024 and 2023:


	Year Ended January 31,
(in thousands)	2024		2023
Valuation allowance, beginning of year	$	(26,026)	$	(18,576)
Income tax provision	(2,267)		(7,450)

Valuation allowance, end of year	$	(28,293)	$	(26,026)

Schedule of Unrecognized Tax Benefits

For the years ended January 31, 2024, 2023, and 2022 the aggregate changes in the balance of gross unrecognized tax benefits were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Gross unrecognized tax benefits, beginning of year	$	10,893	$	10,517	$	9,872
Increases related to tax positions taken during the current year	104		1,717		1,828


(Decreases) increases related to foreign currency exchange rates	(467)		(828)		256
Reductions for spin-off from Verint	—		—		(1,439)
Reductions for tax positions of prior years	(3,167)		—		—

Lapses of statutes of limitations	(80)		(513)		—
Gross unrecognized tax benefits, end of year	$	7,283	$	10,893	$	10,517

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Cash flows from operating activities:
Net loss	$ (11,645)	$ (109,951)	$ (10,256)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	13,816	18,050	21,278
Allowance for credit losses	2,508	2,763	432
Gain from business divestiture, see Note 7	(4,768)	(5,764)	0
Stock-based compensation, excluding cash-settled awards	12,167	25,246	32,865
(Benefit) provision from deferred income taxes	(3,196)	45	5,860
Non-cash gains (losses) on derivative financial instruments, net	330	426	(133)
Change in fair value of contingent consideration for business combinations	0	0	(134)
Other non-cash items, net	(685)	681	766
Changes in operating assets and liabilities:
Accounts receivable	12,436	59,186	(5,718)
Contract assets	(7,340)	8,517	(7,115)
Inventories	(960)	(13,101)	(363)
Prepaid expenses and other assets	5,307	(2,364)	8,465
Accounts payable and accrued expenses	4,332	(37,885)	4,885
Contract liabilities	13,897	18,000	(51,314)
Other liabilities	(2,904)	174	1,761
Other, net	1,266	(1,010)	1,351
Net cash provided by (used in) operating activities	34,561	(36,987)	2,630
Cash flows from investing activities:
Purchases of property and equipment	(7,035)	(8,274)	(11,759)
Purchases of short-term investments	(58,695)	(55,150)	(58,973)
Maturities and sales of short-term investments	75,906	48,765	52,978
Settlements of derivative financial instruments not designated as hedges	(977)	201	(138)
Cash paid for capitalized software development costs	(2,034)	(3,408)	(6,033)
Proceeds from Business divestiture, net of cost, see Note 7	4,975	37,635	0
Change in restricted bank time deposits, including long-term portion	(2,782)	358	5,561
Other investing activities	0	0	513
Net cash provided by (used in) investing activities	9,358	20,127	(17,851)
Cash flows from financing activities:
(Repayment) withdrawal from credit facility - presented as short term loan	0	(100,000)	100,000
Dividend paid to former parent	0	0	(35,000)
Dividends paid to noncontrolling interest	(2,452)	(2,934)	(3,338)
Payments of contingent consideration for business combinations (financing portion)	0	0	(2,738)
Other financing activities	0	0	(181)
Net cash (used in) provided by financing activities	(2,452)	(102,934)	58,743
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(115)	617	41
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	41,352	(119,176)	43,563
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	39,044	158,220	114,657
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	80,396	39,044	158,220
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents at end of period:
Cash and cash equivalents	74,477	34,579	152,590
Restricted cash and cash equivalents included in restricted cash and cash equivalents and restricted bank time deposits	5,825	4,302	3,486
Restricted cash and cash equivalents included in other assets	94	163	2,144
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$ 80,396	$ 39,044	$ 158,220

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jan. 31, 2024	Jan. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2.7	$ 1.6
Allowance for credit loss	$ 1.4	$ 0.0
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)	70,996,535	68,842,601
Common stock, issued (in shares)	70,996,535	68,842,601

LEASES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Millions	Jan. 31, 2024	Jan. 31, 2023
Lessee, Lease, Description [Line Items]
Accelerated operating lease expenses	$ 0.3	$ 1.5
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	10 years
Lessee, finance lease, remaining lease term	10 years

REVENUE RECOGNITION (Tables)

12 Months Ended

Jan. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of 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)	2024		2023		2022
Revenue by recurrence:
Recurring revenue	$	167,634	$	197,398	$	230,969
Nonrecurring revenue	145,770		114,664		243,073
Total revenue	$	313,404	$	312,062	$	474,042

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)	2024		2023
Accounts receivable, net	$	113,260	$	113,201
Contract assets, net	$	8,859	$	17,476

Contract liabilities	$	93,778	$	94,882
Long-term contract liabilities	$	29,362	$	14,382

Schedule of Remaining Performance Obligation

The following table provides information about our RPO:


	January 31,
(in thousands)	2024		2023
RPO:
Expected to be recognized within 1 year	$	302,524	$	280,662
Expected to be recognized in more than 1 year	289,383		302,329
Total RPO	$	591,907	$	582,991

LEASES

12 Months Ended

Jan. 31, 2024

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 10 years. We do not have any finance leases as of January 31, 2024 and 2023.

The components of lease expenses for the years ended January 31, 2024, 2023 and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Operating lease expenses	$	6,401	$	7,695	$	7,725




Variable lease expenses	1,480		2,536		2,146
Short-term lease expenses	78		243		292
Other lease related expenses	4,207		4,422		5,168
Sublease income	(875)		—		—
Total lease expenses	$	11,290	$	14,896	$	15,331

The amounts in the table above of the component of lease expenses for the years ended January 31, 2023 and 2022 have been revised. This reclassification did not affect total lease expenses on our consolidated statements of operation for the years ended January 31, 2023 and 2022.

During the years ended January 31, 2024 and 2023, 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 $0.3 million and $1.5 million, respectively.

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2024			2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,201		$	8,272		$	8,733


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	23,293		$	2,240		$	3,756

Weighted average remaining lease terms
Operating leases	8 years			3 years			4 years

Weighted average discount rates
Operating leases	6.5		%	4.8		%	4.8		%

Maturities of lease liabilities as of January 31, 2024 were as follows:


	January 31, 2024
(in thousands)	Operating Leases
Year Ending January 31,
2025	$	7,450
2026	6,213
2027	4,201
2028	4,063
Thereafter	23,733

Total future minimum lease payments	45,660
Less imputed interest	(12,298)
Total	$	33,363

Reported as of January 31, 2024:
Accrued expenses and other current liabilities	$	5,413
Operating lease liabilities	27,950

Total	$	33,363

LEASES

The components of lease expenses for the years ended January 31, 2024, 2023 and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Operating lease expenses	$	6,401	$	7,695	$	7,725




Variable lease expenses	1,480		2,536		2,146
Short-term lease expenses	78		243		292
Other lease related expenses	4,207		4,422		5,168
Sublease income	(875)		—		—
Total lease expenses	$	11,290	$	14,896	$	15,331

Other information related to leases was as follows:


	Year Ended January 31,
(dollars in thousands)	2024			2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,201		$	8,272		$	8,733


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	23,293		$	2,240		$	3,756

Weighted average remaining lease terms
Operating leases	8 years			3 years			4 years

Weighted average discount rates
Operating leases	6.5		%	4.8		%	4.8		%

Maturities of lease liabilities as of January 31, 2024 were as follows:


	January 31, 2024
(in thousands)	Operating Leases
Year Ending January 31,
2025	$	7,450
2026	6,213
2027	4,201
2028	4,063
Thereafter	23,733

Total future minimum lease payments	45,660
Less imputed interest	(12,298)
Total	$	33,363

Reported as of January 31, 2024:
Accrued expenses and other current liabilities	$	5,413
Operating lease liabilities	27,950

Total	$	33,363

INCOME TAXES - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
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	$ (2,785)	$ (20,369)	$ 1,735
U.S. State income tax (benefit) provision	(172)	(156)	40
Non-U.S. tax rate differential	1,187	8,636	2,892
Tax incentives	(196)	(158)	(2,671)
Valuation allowances	2,267	7,450	12,731
Non-deductible expenses/non-taxable income	46	491	255
Business divestiture	111	7,372	0
Tax contingencies	(5,136)	6,286	2,056
Stock based and other compensation	954	1,102	898
U.S. tax effects of non-U.S. operations	2,162	2,316	540
Other, net	(52)	(14)	41
Total provision for income taxes	$ (1,614)	$ 12,956	$ 18,517
Effective income tax rate	12.20%	(13.40%)	224.10%

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Component of (loss) income before provision for income taxes:
Cost of revenue:
Software	$	(9)	$	229	$	229
Software service	1,071		1,078		$	1,160
Professional service and other	355		2,038		$	2,535

Research and development, net	2,232		8,048		$	7,792
Selling, general and administrative	8,539		13,955		$	21,320
Total stock-based compensation expense	12,188		25,348		$	33,036
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	1,615		3,358		$	4,196
Total stock-based compensation, net of taxes	$	10,573	$	21,990	$	28,840

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Restricted stock units and restricted stock awards	$	12,777	$	21,759	$	31,825
Stock bonus program and bonus share program	(610)		3,487		1,040
Total equity-settled awards	12,167		25,246		32,865
Phantom stock units (cash-settled awards)	21		102		171
Total stock-based compensation expense	$	12,188	$	25,348	$	33,036

Summary of Stock Awards Activity


	Year Ended January 31,			Year Ended January 31,
	2024			2023
(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	1,923	$	11.02	1,901	$	24.42
Granted	4,041	$	4.55	2,208	$	6.87
Released	(2,164)	$	7.51	(1,627)	$	19.53
Forfeited	(203)	$	18.43	(559)	$	15.43
Closing balance	3,597	$	5.44	1,923	$	11.02

REVENUE RECOGNITION

12 Months Ended

Jan. 31, 2024

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 promised do not represent a distinct performance obligation and 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 ASC 606. 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 1 year 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

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


	Year Ended January 31,
(in thousands)	2024		2023		2022
Revenue by recurrence:
Recurring revenue	$	167,634	$	197,398	$	230,969
Nonrecurring revenue	145,770		114,664		243,073
Total revenue	$	313,404	$	312,062	$	474,042

Contract Balances

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


	January 31,
(in thousands)	2024		2023
Accounts receivable, net	$	113,260	$	113,201
Contract assets, net	$	8,859	$	17,476

Contract liabilities	$	93,778	$	94,882
Long-term contract liabilities	$	29,362	$	14,382

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. We incurred asset impairment related to contract assets in the amount of $1.4 million for the year ended January 31, 2024. During the years ended January 31, 2024 and 2023, we transferred $14.4 million and $16.3 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 $7.4 million and $10.3 million of contract assets during the years ended January 31, 2024 and 2023, 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 $42.6 million and $54.2 million of our aggregated accounts receivable and contract assets at January 31, 2024 and 2023, 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, 2024 and 2023 from amounts included in contract liabilities at the beginning of each period was $76.6 million and $61.3 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. 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)	2024		2023
RPO:
Expected to be recognized within 1 year	$	302,524	$	280,662
Expected to be recognized in more than 1 year	289,383		302,329
Total RPO	$	591,907	$	582,991

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 $12.6 million as of January 31, 2024, of which $10.1 million is included in prepaid expenses and other current assets and $2.6 million is included in other assets on our consolidated balance sheet. 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. During the years ended January 31, 2024, 2023, and 2022, we expensed $15.6 million, $13.3 million, and $24.4 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 $1.8 million as of January 31, 2024, of which $1.5 million is included in prepaid expenses and other current assets and $0.4 million is included in other assets on our consolidated balance sheet. 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. 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, 2024, 2023, and 2022, we amortized $2.3 million, $3.9 million, and $7.8 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

DIVESTITURE - Disposal Groups, Including Discontinued Operations (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - SIS $ in Thousands	Jan. 31, 2024 USD ($)
Current assets:
Accounts receivable	$ 5,719
Contract assets, net	2,091
Inventories	731
Prepaid expenses and other current assets	407
Total current assets	8,948
Property and equipment, net	1,424
Operating lease right-of-use assets	710
Goodwill	31,865
Intangible assets, net	415
Deferred income taxes	162
Other assets	3,392
Total assets	46,916
Current liabilities:
Accounts payable	1,327
Accrued expenses and other current liabilities	1,257
Contract liabilities	5,863
Total current liabilities	8,447
Long-term contract liabilities	946
Operating lease liabilities	510
Total liabilities	$ 9,903

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Tax indemnification (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2023
Accounting Policies [Abstract]
Unrecognized tax benefit, uncertain tax position	$ 4.7	$ 4.7	$ 4.7

CONTINGENT CONSIDERATION ASSOCIATED WITH BUSINESS COMBINATIONS	12 Months Ended
	Jan. 31, 2024
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, we recorded benefits of $0.2 million, 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 for the years ended January 31, 2022.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Software Development Costs and Internal-Use Software (Details) - Minimum	Jan. 31, 2024
Software Development Costs
Software Development Costs
Estimated useful lives	4 years
Internal-Use Software
Software Development Costs
Estimated useful lives	4 years

LEASES - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Operating Leases
2025	$ 7,450
2026	6,213
2027	4,201
2028	4,063
Thereafter	23,733
Total future minimum lease payments	45,660
Less imputed interest	(12,298)
Total	$ 33,363
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	$ 5,413	$ 6,604
Operating lease liabilities	27,950	$ 10,368
Total	$ 33,363

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other (Expense) Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Gain from business divestiture	$ 4,768	$ 5,764	$ 0
Gains on investments, net	0	1,660	729
Foreign currency losses, net	(846)	(51)	(3,140)
(Losses) gains on derivative financial instruments, net	(330)	(426)	133
Other (expense) income, net	(677)	204	(403)
Total other income (expense), net	$ 2,915	$ 7,151	$ (2,681)

SHORT TERM LOAN (Details)	1 Months Ended	12 Months Ended
SHORT TERM LOAN (Details)	Feb. 28, 2021 USD ($) facility	Jan. 31, 2024 USD ($) facility	Jan. 31, 2023 USD ($)
Debt Securities, Available-for-sale [Line Items]
Debt instrument, covenant, net cash, minimum	$ 15,000,000
Revolving Credit Facility \| Line of Credit
Debt Securities, Available-for-sale [Line Items]
Number of credit facilities \| facility	2	2
Debt instrument, term	3 years	2 years
Maximum borrowing capacity	$ 100,000,000	$ 65,000,000
Interest expense			$ 1,600,000
Unused borrowing capacity, fee		$ 700,000	$ 300,000
Covenant, consolidated equity, minimum amount	$ 165,000,000
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		0.75%
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		3.26%
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		3.31%

Cover Page	12 Months Ended
Cover Page	Jan. 31, 2024 shares
Entity Listings [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Jan. 31, 2024
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)	70,996,535
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 Financial Statement Error Correction [Flag]	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001824814
Document Fiscal Year Focus	2023
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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jan. 31, 2024
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. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions 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	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, 2024 and 2023. Investments with maturities in excess of one year are included in other assets.
Accounts Receivable, net	Accounts Receivable, net 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. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for credit losses.
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 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 fifty years. Leasehold improvements are amortized over the shorter of their estimated useful lives or 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. For each of the three years in the period ended January 31, 2024, 2023 and 2022, no impairment was identified. 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 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	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 ASC 606, Revenue from Contracts with Customers. 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 promised do not represent a distinct performance obligation and 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 ASC 606. 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 1 year 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, provision for slow moving inventory, 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 software 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 used to receive and we might 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 4 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 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 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 $0.8 million, $0.1 million and $3.1 million for the years ended January 31, 2024, 2023, and 2022, 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 the expected forfeitures as of the awards grant date, 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 are accounting for leases according to ASC 842, 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 Income taxes. 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 had an indemnification obligation to Verint with respect to some or all of the resulting tax to Verint under the Tax Matters Agreement in the amount of $4.7 million for the year ended January 31, 2023. During the fourth quarter of the year ended January 31, 2024, the uncertain tax positions associated with Verint, as well as the corresponding indemnification asset, were reversed due to the expiration of the statute of limitations.
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 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. The adoption of this guidance does not have a material impact on the Company’s consolidated financial statements. New Accounting Pronouncements Not Yet Effective In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to reportable segment disclosures. The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating these amendments to determine the impact it may have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosure. The amendments in this update intended to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments should be applied on a prospective basis. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating these amendments to determine the impact it may have on its consolidated financial statements.

EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Earnings Per Share [Abstract]
Potentially dilutive shares (in shares)	733	480	603

DIVESTITURE

12 Months Ended

Jan. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

DIVESTITURE

On December 1, 2022 Cognyte sold SIS to Volaris group (“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 as of January 31, 2023) which was paid during the year ended January 31, 2024. 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. As of January 31, 2024 performance targets were not reached. 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. The sale price was adjusted during the year ended January 31, 2024 based on changes in actual closing net working capital and the completion of asset transfer which resulted in an additional pre-tax gain of $4.8 million recorded within other income.

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 completed sale as of January 31, 2024:


	As of January 31,
(in thousands)	2024
Current assets:
Accounts receivable	$	5,719
Contract assets, net	2,091
Inventories	731
Prepaid expenses and other current assets	407
Total current assets	8,948
Property and equipment, net	1,424
Operating lease right-of-use assets	710
Goodwill	31,865
Intangible assets, net	415
Deferred income taxes	162
Other assets	3,392





Total assets	$	46,916


Current liabilities:

Accounts payable	$	1,327
Accrued expenses and other current liabilities	1,257
Contract liabilities	5,863

Total current liabilities	8,447
Long-term contract liabilities	946

Operating lease liabilities	510

Total liabilities	$	9,903

LEASES (Tables)

12 Months Ended

Jan. 31, 2024

Leases [Abstract]

Schedule of Components of Lease Expenses

The components of lease expenses for the years ended January 31, 2024, 2023 and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Operating lease expenses	$	6,401	$	7,695	$	7,725




Variable lease expenses	1,480		2,536		2,146
Short-term lease expenses	78		243		292
Other lease related expenses	4,207		4,422		5,168
Sublease income	(875)		—		—
Total lease expenses	$	11,290	$	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)	2024			2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,201		$	8,272		$	8,733


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	23,293		$	2,240		$	3,756

Weighted average remaining lease terms
Operating leases	8 years			3 years			4 years

Weighted average discount rates
Operating leases	6.5		%	4.8		%	4.8		%

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of January 31, 2024 were as follows:


	January 31, 2024
(in thousands)	Operating Leases
Year Ending January 31,
2025	$	7,450
2026	6,213
2027	4,201
2028	4,063
Thereafter	23,733

Total future minimum lease payments	45,660
Less imputed interest	(12,298)
Total	$	33,363

Reported as of January 31, 2024:
Accrued expenses and other current liabilities	$	5,413
Operating lease liabilities	27,950

Total	$	33,363

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Depreciation expense on property and equipment	$ 9.9	$ 11.7	$ 15.5

REVENUE RECOGNITION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 313,404	$ 312,062	$ 474,042
Recurring revenue
Disaggregation of Revenue [Line Items]
Total revenue	167,634	197,398	230,969
Nonrecurring revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 145,770	$ 114,664	$ 243,073

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- 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
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 31, 2024

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. The Company's management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions 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, 2024 and 2023. Investments with maturities in excess of one year are included in other assets.

Accounts Receivable, net

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. The Company performs ongoing credit evaluations of its customers for the purpose of determining the appropriate allowance for credit losses.

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 $42.6 million and $54.2 million of our aggregated accounts receivable and contract assets, at January 31, 2024 and 2023, respectively. We believe our contracts with these governments present insignificant credit risk.

Allowance for Credit Losses

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Allowance for credit losses, beginning of year	$	1,583	$	2,110	$	4,559

Provisions charged to expense	2,578		2,824		342
Amounts written off	(7)		(3,080)		(2,791)
Business divestiture	(62)		(308)		—
Other, including fluctuations in foreign exchange rates	(1)		37		—
Allowance for credit losses, end of year	$	4,091	$	1,583	$	2,110

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 fifty years. Leasehold improvements are amortized over the shorter of their estimated useful lives or 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. For each of the three years in the period ended January 31, 2024, 2023 and 2022, no impairment was identified.

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 ASC 606, Revenue from Contracts with Customers. 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, provision for slow moving inventory, 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 software 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 used to receive and we might 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 4 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 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

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 $0.8 million, $0.1 million and $3.1 million for the years ended January 31, 2024, 2023, and 2022, 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 the expected forfeitures as of the awards grant date, 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 are accounting for leases according to ASC 842, 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 Income taxes. 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 had an indemnification obligation to Verint with respect to some or all of the resulting tax to Verint under the Tax Matters Agreement in the amount of $4.7 million for the year ended January 31, 2023. During the fourth quarter of the year ended January 31, 2024, the uncertain tax positions associated with Verint, as well as the corresponding indemnification asset, were reversed due to the expiration of the statute of limitations.

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 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. The adoption of this guidance does not have a material impact on the Company’s consolidated financial statements.

New Accounting Pronouncements Not Yet Effective

In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to reportable segment disclosures. The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating these amendments to determine the impact it may have on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosure. The amendments in this update intended to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments should be applied on a prospective basis. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating these amendments to determine the impact it may have on its consolidated financial statements.

RESEARCH AND DEVELOPMENT, NET - Schedule of Activity for Capitalized Software Development Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Movement in Capitalized Computer Software, Net [Roll Forward]
Capitalized software development costs, net, beginning of year	$ 9,706	$ 13,920	$ 11,315
Software development costs capitalized during the year	2,034	3,408	6,033
Amortization of capitalized software development costs	(3,370)	(4,708)	(3,291)
Business divestiture	0	(2,922)	0
Write-offs of capitalized software development costs	0	0	(142)
Foreign currency translation and other	0	8	5
Capitalized software development costs, net, end of year	$ 8,370	$ 9,706	$ 13,920

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of the Effects of Derivatives Designated as Cash Flow Hedges (Details) - Foreign currency forward contracts - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Net gains recognized in AOCL	$ (2,228)	$ 16	$ 1,169
Net gains reclassified from AOCL into the combined statements of operations	$ (6,484)	$ (6,131)	$ 2,314

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Supplemental Information Regarding Consolidated Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Cash paid for interest, including commitment fee	$ 663	$ 1,978	$ 470
Cash payments of income taxes, net	6,766	11,284	8,232
Non-cash investing and financing transactions:
Accrued but unpaid purchases of property and equipment	163	972	1,166
Extinguishment of liability with stocks	3,856	0	2,514
Inventory transfers to property and equipment	$ 1,639	$ 1,474	$ 537

RESEARCH AND DEVELOPMENT, NET

12 Months Ended

Jan. 31, 2024

Research and Development [Abstract]

RESEARCH AND DEVELOPMENT, NET

Our gross research and development expenses for the years ended January 31, 2024, 2023, and 2022, were $107.3 million, $140.4 million and $143.7 million, respectively. We had no reimbursements from the IIA and other government grant programs for the year ended January 31, 2024 and 2023. Reimbursements from the IIA and other government grant programs amounted to $0.3 million for the year ended January 31, 2022, 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, 2024, 2023, and 2022, was as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Capitalized software development costs, net, beginning of year	$	9,706	$	13,920	$	11,315
Software development costs capitalized during the year	2,034		3,408		6,033
Amortization of capitalized software development costs	(3,370)		(4,708)		(3,291)
Business divestiture	—		(2,922)		—
Write-offs of capitalized software development costs	—		—		(142)
Foreign currency translation and other	—		8		5
Capitalized software development costs, net, end of year	$	8,370	$	9,706	$	13,920

During the years ended January 31, 2024 and 2023 there were no write-offs of capitalized software development costs. During the year ended January 31, 2022 we recorded an impairment charge of 0.1 million, 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.

INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Changes in the balance of gross unrecognized tax benefits
Gross unrecognized tax benefits, beginning of year	$ 10,893	$ 10,517	$ 9,872
Increases related to tax positions taken during the current year	104	1,717	1,828
Decrease related to foreign currency exchange rates	(467)	(828)
Increase related to foreign currency exchange rates			256
Reductions for spin-off from Verint	0	0	(1,439)
Reductions for tax positions of prior years	(3,167)	0	0
Lapses of statutes of limitations	(80)	(513)	0
Gross unrecognized tax benefits, end of year	$ 7,283	$ 10,893	$ 10,517

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022	Jan. 31, 2021
Condensed Financial Information Disclosure [Abstract]
Long-term restricted cash and time deposits	$ 137	$ 203
Capitalized software development costs, net	8,370	9,706	$ 13,920	$ 11,315
Deferred commissions	2,567	2,339
Long-term deferred cost of revenue	390	127
Long-term security deposits	132	6
Noncontrolling investments accounted under ASC 321	7,186	7,046
Other	353	534
Total other assets	$ 19,135	$ 19,961

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Noncontrolling equity investment in privately-held companies without readily determinable fair values	$ 7.2	$ 7.0
Noncontrolling equity investment in privately-held companies without readily determinable fair values, remeasured to fair value		2.4
Unrealized gain on noncontrolling equity investment		$ 1.7
SIS
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contingent working capital, receivable, adjustment	$ 5.0

STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS - Schedule of Recognized Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Cost of revenue:
Total stock-based compensation expense	$ 12,188	$ 25,348	$ 33,036
Income tax benefits related to stock-based compensation (before consideration of valuation allowances)	1,615	3,358	4,196
Total stock-based compensation, net of taxes	10,573	21,990	28,840
Cost of revenue: \| Software
Cost of revenue:
Total stock-based compensation expense	(9)	229	229
Cost of revenue: \| Software service
Cost of revenue:
Total stock-based compensation expense	1,071	1,078	1,160
Cost of revenue: \| Professional service and other
Cost of revenue:
Total stock-based compensation expense	355	2,038	2,535
Research and development, net
Cost of revenue:
Total stock-based compensation expense	2,232	8,048	7,792
Selling, general and administrative
Cost of revenue:
Total stock-based compensation expense	$ 8,539	$ 13,955	$ 21,320

ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022:


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




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)
Other comprehensive (loss) income before reclassifications	(4,256)		456		(3,800)
Amounts reclassified out of accumulated other comprehensive income	(6,484)		—		(6,484)
Net current period OCI	2,228		456		2,684
Balance at January 31, 2024	$	1,602	$	(14,231)	$	(12,630)

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, and the strengthening of the U.S. dollar against the Singapore dollar, which has resulted in lower U.S. dollar-translated balances of Singapore dollar.


	Year Ended January 31,						Financial Statement Location
(in thousands)	2024		2023		2022
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	(10)	$	(54)	$	6	Cost of software revenue
	(97)		(278)		40		Cost of software service revenue
	(643)		(311)		225		Cost of professional service and other revenue
	(2,893)		(3,009)		1,190		Research and development, net
	(2,841)		(2,479)		853		Selling, general and administrative
	(6,484)		(6,131)		2,314		Total, before income taxes
	—		—		84		(Provision) benefit for income taxes
	$	(6,484)	$	(6,131)	$	2,398	Total, net of income taxes

INCOME TAXES - Schedule of Components of Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract]
U.S.	$ (11,360)	$ (18,240)	$ (9,596)
Non-U.S.	(1,899)	(78,755)	17,857
(Loss) income before provision for income taxes	$ (13,259)	$ (96,995)	$ 8,261

- 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
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 25
-Paragraph 1
-SubTopic 20
-Topic 940
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481913/940-20-25-1

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Current assets:
Cash and cash equivalents	$ 74,477	$ 34,579
Restricted cash and cash equivalents and restricted bank time deposits	8,666	4,359
Short-term investments	0	17,507
Accounts receivable, net of allowance for credit losses of $2.7 million and $1.6 million, respectively	113,260	113,201
Contract assets, net of allowance for credit losses of $1.4 million and $0 million, respectively	8,859	17,476
Inventories	24,584	25,263
Prepaid expenses and other current assets	35,135	39,339
Total current assets	264,981	251,724
Property and equipment, net	24,384	25,874
Operating lease right-of-use assets	33,833	17,559
Goodwill	126,563	126,487
Intangible assets, net	258	650
Deferred income taxes	2,928	823
Other assets	19,135	19,961
Total assets	472,082	443,078
Current liabilities:
Accounts payable	20,863	20,677
Accrued expenses and other current liabilities	75,826	78,297
Contract liabilities	93,778	94,882
Total current liabilities	190,467	193,856
Long-term contract liabilities	29,362	14,382
Deferred income taxes	1,964	3,031
Operating lease liabilities	27,950	10,368
Other liabilities	7,606	11,667
Total liabilities	257,349	233,304
Commitments and Contingencies
Stockholders' equity:
Common stock - $0 par value; Authorized 300,000,000 shares. Issued and outstanding 70,996,535 and 68,842,601 at January 31, 2024 and January 31, 2023, respectively	0	0
Additional paid-in capital	355,097	338,465
Accumulated deficit	(144,592)	(129,022)
Accumulated other comprehensive loss	(12,630)	(15,314)
Total Cognyte Software Ltd. stockholders' equity	197,875	194,129
Noncontrolling interest	16,858	15,645
Total stockholders’ equity	214,733	209,774
Total liabilities and stockholders’ equity	$ 472,082	$ 443,078

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Unrecognized tax benefits, including interest and penalties	$ 5,810	$ 9,563
Obligations for severance compensation	1,796	2,104
Total other liabilities	$ 7,606	$ 11,667

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Prepaid expenses	$ 26,701	$ 29,081
Deferred cost of revenue	1,451	2,347
Income tax receivables	4,249	7,028
Foreign currency forward contracts	1,792	288
Other	942	595
Total prepaid expenses and other current assets	$ 35,135	$ 39,339

ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Class of Stock [Line Items]
Research and development, net	$ 107,283	$ 140,324	$ 143,360
Selling, general and administrative	125,784	154,347	185,867
Total, before income taxes	13,259	96,995	(8,261)
(Provision) benefit for income taxes	(1,614)	12,956	18,517
Total, net of income taxes	11,645	109,951	10,256
Software
Class of Stock [Line Items]
Cost of revenue	18,919	19,975	28,955
Software service
Class of Stock [Line Items]
Cost of revenue	43,305	48,400	46,413
Professional service and other
Class of Stock [Line Items]
Cost of revenue	35,776	50,941	56,349
Foreign currency forward contracts \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Research and development, net	(2,893)	(3,009)	1,190
Selling, general and administrative	(2,841)	(2,479)	853
Total, before income taxes	(6,484)	(6,131)	2,314
(Provision) benefit for income taxes	0	0	84
Total, net of income taxes	(6,484)	(6,131)	2,398
Foreign currency forward contracts \| Software \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	(10)	(54)	6
Foreign currency forward contracts \| Software service \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	(97)	(278)	40
Foreign currency forward contracts \| Professional service and other \| Reclassification out of Accumulated Other Comprehensive Income
Class of Stock [Line Items]
Cost of revenue	$ (643)	$ (311)	$ 225

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Allowance for credit losses, beginning of year	$	1,583	$	2,110	$	4,559

Provisions charged to expense	2,578		2,824		342
Amounts written off	(7)		(3,080)		(2,791)
Business divestiture	(62)		(308)		—
Other, including fluctuations in foreign exchange rates	(1)		37		—
Allowance for credit losses, end of year	$	4,091	$	1,583	$	2,110

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jan. 31, 2024

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, 2024 and 2023:


	January 31, 2024
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Foreign currency forward contracts	$	—	$	1,792	$	—
Consideration Asset or Liability in Business Divestitures	$	—	$	—	4,954
Total assets	$	—	$	1,792	$	4,954
Liabilities:
Foreign currency forward contracts	$	—	$	223	$	—

Total liabilities	$	—	$	223	$	—


	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	$	—

INCOME TAXES

12 Months Ended

Jan. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income (loss) before provision for income taxes for the years ended January 31, 2024, 2023, and 2022 were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
U.S.	$	(11,360)	$	(18,240)	$	(9,596)
Non-U.S.	(1,899)		(78,755)		17,857
Total income before provision for income taxes	$	(13,259)	$	(96,995)	$	8,261

The provision for income taxes for the years ended January 31, 2024, 2023, and 2022 consisted of the following:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Current provision (benefit) for income taxes:
U.S. Federal	$	(4,116)	$	5,161	$	—
U.S. State	(120)		204		(11)
Non-U.S.	5,738		7,546		12,668
Total current provision (benefit) for income taxes	1,502		12,911		12,657
Deferred provision (benefit) for income taxes:
U.S. Federal	(199)		2,155		(1,143)
U.S. State	(52)		(414)		53
Non-U.S.	(2,865)		(1,696)		6,950
Total deferred provision (benefit) for income taxes	(3,116)		45		5,860
Total provision for income taxes	$	(1,614)	$	12,956	$	18,517

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, 2024, 2023, and 2022 was as follows:


	Year Ended January 31,
(dollars in thousands)	2024			2023			2022
U.S. federal statutory income tax rate	21.0		%	21.0		%	21.0		%

Income tax provision at the U.S. federal statutory rate	$	(2,785)		$	(20,369)		$	1,735
U.S. State income tax (benefit) provision	(172)			(156)			40
Non-U.S. tax rate differential	1,187			8,636			2,892
Tax incentives	(196)			(158)			(2,671)
Valuation allowances	2,267			7,450			12,731
Non-deductible expenses/non-taxable income	46			491			255
Business divestiture	111			7,372			—
Tax contingencies	(5,136)			6,286			2,056
Stock based and other compensation	954			1,102			898
U.S. tax effects of non-U.S. operations	2,162			2,316			540
Other, net	(52)			(14)			41
Total provision for income taxes	$	(1,614)		$	12,956		$	18,517
Effective income tax rate	12.2		%	(13.4)		%	224.1		%

The change in gross unrecognized tax benefits during fiscal year 2023 included 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 was 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 had 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 loss, comprehensive loss, or basic and fully diluted loss per common share. During the fourth quarter of fiscal year ending January 31, 2024, the uncertain tax positions associated with Verint, as well as the corresponding indemnification asset, were reversed due to the expiration of the statute of limitations.

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 0.4%, 0.1% and 32.3% for the years ended January 31, 2024, 2023, and 2022, respectively.

Deferred tax assets and liabilities consisted of the following at January 31, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Deferred tax assets:
Loss carryforwards	$	18,100	$	16,219
Accrued compensation	10,996		10,741
Capitalized research and development	5,080		5,192
Inventory	1,199		43
Accrued expenses	706		126
Operating lease liabilities	—		59
Exchange rate differences	400		105

Total deferred tax assets	36,481		32,485
Deferred tax liabilities:
Deferred revenue	(565)		(1,784)
Goodwill and other intangible assets	(6,242)		(5,884)
Depreciation of property and equipment	—		(150)
Operating lease right-of-use assets	—		(59)
Other, net	(417)		(790)
Total deferred tax liabilities	(7,224)		(8,667)
Valuation allowance	(28,293)		(26,026)
Net deferred tax liabilities	$	964	$	(2,208)

Recorded as:
Deferred tax assets	$	2,928	$	823
Deferred tax liabilities	(1,964)		(3,031)
Net deferred tax liabilities	$	964	$	(2,208)

We had net operating loss carryforwards of approximately $142.3 million as at January 31, 2024, of which $0.4 million related to U.S. carryforwards and $141.9 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, 2024 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, 2024, a valuation allowance of $2.3 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 $28.3 million and $26.0 million at January 31, 2024 and 2023, respectively.

Activity in the recorded valuation allowance consisted of the following for the years ended January 31, 2024 and 2023:


	Year Ended January 31,
(in thousands)	2024		2023
Valuation allowance, beginning of year	$	(26,026)	$	(18,576)
Income tax provision	(2,267)		(7,450)

Valuation allowance, end of year	$	(28,293)	$	(26,026)

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, 2024, 2023, and 2022 the aggregate changes in the balance of gross unrecognized tax benefits were as follows:


	Year Ended January 31,
(in thousands)	2024		2023		2022
Gross unrecognized tax benefits, beginning of year	$	10,893	$	10,517	$	9,872
Increases related to tax positions taken during the current year	104		1,717		1,828


(Decreases) increases related to foreign currency exchange rates	(467)		(828)		256
Reductions for spin-off from Verint	—		—		(1,439)
Reductions for tax positions of prior years	(3,167)		—		—

Lapses of statutes of limitations	(80)		(513)		—
Gross unrecognized tax benefits, end of year	$	7,283	$	10,893	$	10,517

As of January 31, 2024, we had $7.3 million of unrecognized tax benefits, $4.6 million of which, if recognized, would impact the effective income tax rate in future periods. If the remaining $2.7 million is recognized, it would be in the form of a net operating loss carryforward, which is expected to require a full valuation allowance based on present circumstances. We recorded $0.1 million, $0.6 million and $0.4 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, 2024, 2023, and 2022, respectively. The reduction of $3.2 million of uncertain tax positions of prior periods relates primarily to liabilities associated with tax assets that are not expected to be utilized prior to their expiration. Accrued liabilities for interest and penalties were $1.2 million and $1.4 million at January 31, 2024 and 2023, 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, 2021.

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, 2024 could decrease by approximately $2.1 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION - Schedule of Long-Lived Assets by Region (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	$ 24,384	$ 25,874
Israel
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	18,814	20,090
United States
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	290	173
Other countries
Revenues from External Customers and Long-Lived Assets
Total property and equipment, net	$ 5,280	$ 5,611

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Compensation and benefits	$ 45,476	$ 38,253
Distributor and agent commissions	9,630	10,345
Operating lease obligations - current portion	5,413	6,604
Income taxes	3,428	3,121
Taxes other than income taxes	8,447	12,720
Fair value of derivatives - current portion	223	1,592
Other	3,209	5,662
Total accrued expenses and other current liabilities	$ 75,826	$ 78,297
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	12 Months Ended
	Jan. 31, 2024 segment
Accounting Policies [Abstract]
Number of operating segments	1
Number of reportable segments	1

INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Jan. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Acquisition-related intangible assets consisted of the following as of January 31, 2024 and 2023:


	January 31, 2024
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Acquired technology	$	53,118	$	(53,118)	$	—
Customer relationships	1,451		(1,193)		258

Distribution network	2,000		(2,000)		—

Total intangible assets	$	56,569	$	(56,311)	$	258


	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

Total amortization expense recorded for acquisition-related intangible assets was $0.4 million, $1.4 million and $2.1 million for the years ended January 31, 2024, 2023, and 2022, respectively.

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


(in thousands)
Years Ending January 31,	Amount
2025	$	258


Total	$	258

No impairments of acquired intangible assets were recorded during the year ended January 31, 2024. We wrote-off fully amortized intangibles in the amount of $10.9 million during the year ended January 31, 2024. We recorded $0.7 million of impairments for certain acquired technology assets for the year ended January 31, 2023. These impairments are reflected in both software cost of revenue and selling, general and administrative expenses of $0.6 million and $0.1 million, respectively. No impairments of acquired intangible assets were recorded during the year ended January 31, 2022.

The change in the net carrying amount of goodwill activity for the years ended January 31, 2024 and 2023 was as follows:



(in thousands)	Amount









Goodwill at January 31, 2022	$	158,233
Foreign currency translation	119
Business divestiture	(31,865)
Goodwill at January 31, 2023	$	126,487



Foreign currency translation	76
Goodwill at January 31, 2024	$	126,563

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, 2024, 2023 and 2022.

DIVESTITURE - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
DIVESTITURE - Narrative (Details) - USD ($) $ in Thousands	Dec. 01, 2022	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture business		$ 4,975	$ 37,635	$ 0
Gain from business divestiture		$ 4,768	$ 5,764	$ 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	5,800
Divestiture business closing cost	$ 4,700

CONTINGENT CONSIDERATION ASSOCIATED WITH BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2022
Business Acquisition
Change in fair value of contingent consideration for business combinations	$ 0	$ 0	$ (134)
Payments of contingent consideration for business combinations	$ 0	$ 0	2,738
Selling, general and administrative
Business Acquisition
Change in fair value of contingent consideration for business combinations			$ (200)

INTANGIBLE ASSETS AND GOODWILL - Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 56,569	$ 67,413
Accumulated Amortization	(56,311)	(66,764)
Net	258	650
Acquired technology
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	53,118	61,058
Accumulated Amortization	(53,118)	(61,058)
Net	0	0
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	1,451	3,550
Accumulated Amortization	(1,193)	(3,002)
Net	258	549
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Cost		805
Accumulated Amortization		(704)
Net		101
Distribution network
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	2,000	2,000
Accumulated Amortization	(2,000)	(2,000)
Net	$ 0	$ 0

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, 2024	Jan. 31, 2023	Jan. 31, 2022
Earnings Per Share [Abstract]
Net loss	$ (11,645)	$ (109,951)	$ (10,256)
Net income attributable to noncontrolling interest	3,925	4,181	4,634
Net loss attributable to Cognyte Software Ltd.	$ (15,570)	$ (114,132)	$ (14,890)
Ordinary shares outstanding:
Basic shares (in shares)	70,081	67,924	66,570
Effective of dilutive shares (in shares)	0	0	0
Diluted shares (in shares)	70,081	67,924	66,570
Net loss per share attributable to Cognyte Software Ltd.:
Basic (in dollars per share)	$ (0.22)	$ (1.68)	$ (0.22)
Diluted (in dollars per share)	$ (0.22)	$ (1.68)	$ (0.22)

GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION

12 Months Ended

Jan. 31, 2024

Segment Reporting [Abstract]

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, 2024, 2023, and 2022:


	Year Ended January 31,
(in thousands)	2024		2023		2022
EMEA:
Israel	$	215,312	$	201,610	$	328,371
Germany	53,480		44,486		63,258
Other	14,950		13,208		14,127
Total EMEA	283,743		259,304		405,756
Americas:
United States	10,029		35,139		37,726
Other	7,147		9,987		17,869
Total Americas	17,176		45,126		55,595
APAC	12,486		7,633		12,691
Total revenue	$	313,404	$	312,062	$	474,042

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, 2024 and 2023:


	January 31,
(in thousands)	2024		2023
Israel	$	18,814	$	20,090
United States	290		173
Other countries	5,280		5,611
Total property and equipment, net	$	24,384	$	25,874

Significant Customers

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


	Year Ended January 31,
	2024		2023		2022
Customer A	16.5	%	17.7	%	14.8	%
Customer B	11.0	%	10.0	%	8.4	%

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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

REVENUE RECOGNITION - Schedule of Remaining Performance Obligation (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jan. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 591,907	$ 582,991
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
Revenue performance obligation, period		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	$ 302,524	$ 302,329
Revenue performance obligation, period	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation	$ 289,383
Revenue performance obligation, period	1 year

Audit Information	12 Months Ended
Audit Information	Jan. 31, 2024
Auditor Information [Abstract]
Auditor Firm ID	1197
Auditor Name	Brightman Almagor Zohar & Co.
Auditor Location	Tel Aviv, Israel

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Acquired Intangible Assets (Details)	12 Months Ended
	Jan. 31, 2024 USD ($) unit	Jan. 31, 2023 USD ($)	Jan. 31, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of reporting units \| unit	1
Impairments of goodwill \| $	$ 0	$ 0	$ 0
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of finite-lived intangible assets	7 years

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Jan. 31, 2024

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 short-term investments and account payable 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 $74.4 million and $91.3 million as of January 31, 2024 and 2023, 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, 2024 and 2023 were as follows:


		January 31,
(in thousands)	Balance Sheet Classification	2024		2023
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	1,778	$	288
Not designated as hedging instruments	Prepaid expenses and other current assets	14		—
Total derivative assets		$	1,792	$	288

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	177	$	914
Not designated as hedging instruments	Accrued expenses and other current liabilities	46		678
Total derivative liabilities		$	223	$	1,592

Derivative Financial Instruments in Cash Flow Hedging Relationships


	Year Ended January 31,
(in thousands)	2024		2023		2022
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	(2,228)	$	16	$	1,169

Net (losses) gains reclassified from AOCL to the consolidated statement of operations:
Foreign currency forward contracts	$	(6,484)	$	(6,131)	$	2,314

For information regarding the line item locations of the net (losses) gains 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 $1.6 million of net unrealized gains recorded in our accumulated other comprehensive loss at January 31, 2024 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, 2024, 2023, and 2022, were as follows:


	Classification in Consolidated Statements of Operations	Year Ended January 31,
(in thousands)		2024		2023		2022
Foreign currency forward contracts	Other (expense) income, net	$	(330)	$	(426)	$	133

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments (Details) - USD ($)	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Accounting Policies [Abstract]
Minimum maturity period of short term investments in time deposits	90 days
Marketable debt securities	$ 0	$ 0

INCOME TAXES - Schedule of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands	12 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Recorded valuation allowance
Valuation allowance, beginning of year	$ (26,026)	$ (18,576)
Income tax provision	(2,267)	(7,450)
Valuation allowance, end of year	$ (28,293)	$ (26,026)