Cyren Ltd.

GAAP revenue in Q3 2022 was $5.8 million, up 4% from $5.6 million in Q3 2021. GAAP gross margin was 48% versus 41% a year ago; non-GAAP gross margin was 59% versus 53% a year ago. GAAP net loss was $6.1 million versus $5.8 million last year, and excluding a $600,000 divestiture-related charge, net loss from continuing operations was $5.5 million versus $6.1 million in Q3 2021. Non-GAAP net loss was $5.5 million, or $0.70 per share, versus $4.7 million, or $1.21 per share, a year ago. Cash used in continuing operating activities was $4 million versus $5.2 million in Q3 2021, and the divestiture had an approximately $8.1 million positive cash impact after working capital adjustments, transaction fees and holdbacks. No explicit full-year or next-quarter numeric guidance was given, but management said Q4 should show continued year-over-year revenue growth and that Q4 is historically the strongest bookings quarter.

Brett Jackson emphasized that re-establishing revenue growth has been the company’s top priority since the 2020 strategy reset, and said he believes Cyren has “turned the corner.” He pointed to growth in both the core OEM threat detection business and enterprise anti-phishing business, plus a very strong Q4 pipeline, as evidence that demand is improving. His tone was confident but measured, noting the 80% evaluation win rate is “exceptionally high” and may not be sustainable.

Jason Parikh said the quarter benefited from the accounting impact of the August 1 divestiture of the legacy secure email gateway business, which left continuing operations net of that divested business. He cited GAAP revenue of $5.8 million, GAAP gross margin of 48%, non-GAAP gross margin of 59%, and a GAAP net loss of $6.1 million, including a $600,000 divestiture charge. He also noted cash used in continuing operating activities fell to $4 million from $5.2 million last year, helped by a lower loss and favorable receivables timing, and said the divestiture produced an approximately $8.1 million positive cash impact after adjustments and fees.

There was no analyst Q&A in the transcript, so no external concerns or follow-up questions were raised. Management’s main forward-looking comments were that Q4 bookings should be strong, the pipeline entering the quarter was very healthy, and year-over-year revenue growth should continue. They also highlighted the launch of Hybrid Analyzer and ongoing investment in sales and marketing to support enterprise anti-phishing growth.