Financial Data and Key Metrics Changes - In Q3, non-GAAP revenue was $227 million, with non-GAAP cloud revenue increasing 32% year-over-year [25][26] - Non-GAAP diluted EPS was $0.69, and non-GAAP gross margin was 71% [25][26] - Remaining performance obligations (RPO) increased 31% year-over-year [25] Business Line Data and Key Metrics Changes - Cloud revenue grew 33% on a GAAP basis and 32% on a non-GAAP basis year-over-year [12][25] - New PLE bookings increased 14% year-over-year in Q3, with guidance raised to more than 15% for the year [13][27] - The company added over 100 new logos in Q3, including notable brands like Costco and Disney [14] Market Data and Key Metrics Changes - The company expects cloud revenue to exceed $500 million next year, representing approximately 55% of total revenue [18][30] - For fiscal 2024, the target for cloud revenue is raised to over $650 million, with another year of 30% growth expected [20] Company Strategy and Development Direction - The company is focused on a Cloud First strategy, with a significant shift towards cloud solutions, expecting around 65% of total revenue from the cloud by fiscal 2024 [21][20] - The platform is designed to be open and agnostic, allowing for seamless integration with existing enterprise ecosystems [16][56] - The company is enhancing its AI-driven capabilities to close the engagement capacity gap for customers [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued momentum into Q4, raising annual guidance for non-GAAP revenue to $875 million [10][26] - The shift to cloud is expected to positively impact cash flow, with more than 20% growth in cash from operations anticipated next year [19][100] - Management noted that the pandemic has accelerated the shift to cloud solutions, with customers increasingly recognizing the need for digital transformation [90][92] Other Important Information - The company does not assume any future M&A in its long-term guidance, with only minor contributions from previous acquisitions [73] - The company plans to repurchase shares in fiscal 2023 to offset dilution from its equity compensation program [32] Q&A Session Summary Question: Strength of new customer additions - Management attributed the strength in new customer additions to demand for their differentiated cloud platform and improved partner execution [38][39] Question: Visibility for higher fiscal 2024 targets - Management noted improved visibility due to increased recurring revenue and a strong pipeline, expecting 60% of bookings in Q4 to come from SaaS [42][44] Question: Cloud transition and deal sizes - Management indicated that they are becoming more strategic with customers, leading to larger deal sizes as customers consume more from the cloud platform [50][52] Question: Dynamics of cloud growth - Management clarified that cloud growth is driven primarily by new deals rather than conversions, with over 60% of cloud growth coming from new customers [64][66] Question: Long-term guidance assumptions - Management confirmed that long-term guidance does not assume future M&A, with only minor contributions from past acquisitions [73] Question: Cash flow dynamics - Management expects significant cash flow growth as the cloud transition progresses, with a projected 20% increase in cash from operations next year [100][101]

Financial Data and Key Metrics Changes - The company reported strong second-quarter results with revenues and diluted EPS exceeding expectations, leading to an increase in annual guidance for both metrics [9][20] - Non-GAAP cloud revenue grew by 44% year-over-year, while total non-GAAP revenue increased by 5% year-over-year [11][26] - New PLE bookings saw a 22% year-over-year growth, with SaaS contributing to over half of the software bookings [25][20] Business Line Data and Key Metrics Changes - New PLE bookings from SaaS increased to 53% in Q2, up from 51% in Q1, indicating a continued shift towards cloud solutions [10][20] - The company achieved 20 SaaS deals over $1 million TCV in Q2, a 100% increase year-over-year [10][20] - The remaining performance obligations (RPO) increased by 29% year-over-year, reflecting strong future revenue potential [27] Market Data and Key Metrics Changes - The company noted a significant increase in cloud deal closures compared to the previous year, with improved close rates and win ratios [36] - The market is shifting towards digital engagement, with increasing demand for messaging and digital channels, as traditional telephony interactions remain flat [40][62] Company Strategy and Development Direction - The company is focused on enhancing its open cloud platform, which is designed to integrate seamlessly with existing enterprise ecosystems [12][14] - The acquisition of Conversocial aims to expand the functionality of the cloud platform, particularly in digital messaging [39][76] - The company anticipates continued growth in cloud adoption, with expectations for revenue growth to accelerate as it crosses the midpoint of its cloud transition [21][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve accelerated revenue growth, supported by strong first-half results and a robust pipeline [22][56] - The company is navigating a tight labor market but has successfully hired talent globally, maintaining operational stability [90][93] - Management highlighted the importance of providing flexible solutions to customers, allowing them to innovate without being constrained by legacy systems [47][72] Other Important Information - The company raised its annual guidance for new PLE bookings growth to 15% and cloud revenue growth to 35% [20][28] - The Conversocial acquisition is expected to contribute approximately $6 million in revenue for the remainder of the year, with no impact on EPS [74] Q&A Session Summary Question: Are pipelines more predictable today versus where we were when we entered the year? - Management indicated that while there was a large pipeline last year, the current year has seen better close rates and a higher number of cloud deals [36] Question: Can you discuss the strategic rationale behind the Conversocial acquisition? - The acquisition aims to enhance the cloud platform's functionality, allowing customers to utilize messaging applications seamlessly [39] Question: What type of up-sell or cross-sell is generally seen when customers move to the cloud? - Customers often convert existing solutions to the cloud while also expanding their use of new cloud solutions, leading to strong renewal rates [46] Question: How much of the installed base has moved to true cloud contact center vendors? - A significant portion of customers has moved to the cloud, with many decoupling decisions between applications and infrastructure [68] Question: What is the expected impact of the tight labor market on the financial model? - While the labor market is challenging, the company has managed to hire effectively and does not anticipate significant impacts on the cost structure [90][93]

© 2021 Verint Systems Inc. All Rights Reserved Worldwide. FYE22 Second Quarter Conference Call Boundless Customer EngagementTM September 9, 2021 VERINT. Disclaimers Forward Looking Statements This presentation contains "forward-looking statements," including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are bas ...

[Cautionary Note on Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20on%20Forward-Looking%20Statements) The report contains forward-looking statements subject to known and unknown risks, with actual results potentially differing materially from expectations - Macroeconomic uncertainties, including **COVID-19 impact on IT spending**[11](index=11&type=chunk) - Challenges in the **transition to cloud**, emphasizing subscription renewal rates and potential result variability[11](index=11&type=chunk) - Risks from **aggressive competition**, reliance on **third-party suppliers**, and **significant international operations**[11](index=11&type=chunk)[13](index=13&type=chunk) - Risks from the **Cognyte spin-off**, including unachieved benefits or unexpected liabilities[13](index=13&type=chunk) [Part I. Financial Information](index=7&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q2 2021 financial statements show post-spin-off performance, with reduced assets and liabilities, recurring revenue growth, and significant financing activities [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2021, total assets decreased to **$2.28 billion** from **$3.26 billion** post-Cognyte spin-off, with cash and total liabilities also significantly reduced Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2021 | January 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $320,439 | $585,273 | | Total current assets | $572,495 | $1,277,742 | | Goodwill | $1,335,816 | $1,327,407 | | Total assets | $2,278,019 | $3,261,295 | | **Liabilities & Equity** | | | | Total current liabilities | $391,617 | $1,163,439 | | Long-term debt | $405,873 | $402,781 | | Total liabilities | $897,030 | $1,773,262 | | Total stockholders' equity | $944,668 | $1,282,564 | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2021 total revenue grew **5.2%** to **$214.6 million** driven by recurring revenue, but operating income declined to **$11.5 million** due to higher expenses, with net loss from continuing operations significantly narrowed Key Operating Results (in thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $214,617 | $204,080 | $415,521 | $389,945 | | Recurring Revenue | $156,178 | $139,267 | $300,631 | $268,337 | | Gross Profit | $142,050 | $137,179 | $270,614 | $252,141 | | Operating Income | $11,537 | $21,573 | $15,979 | $19,532 | | Net Income (Loss) from Continuing Operations | $5,316 | $(9,370) | $6,410 | $(23,788) | | Net (Loss) Attributable to Common Shares | $(200) | $6,010 | $(2,723) | $(4) | Net Loss Per Share from Continuing Operations | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Basic EPS | $0.00 | $(0.19) | $(0.04) | $(0.42) | | Diluted EPS | $0.00 | $(0.18) | $(0.04) | $(0.42) | [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six months ended July 31, 2021, saw operating cash flow decrease to **$26.9 million**, investing activities provide **$27.4 million**, and financing activities use **$421.9 million** for debt settlements, repayments, and share repurchases, offset by new debt and preferred stock Summary of Cash Flows - Continuing Operations (Six Months Ended July 31, in thousands) | Cash Flow Category | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,853 | $98,123 | | Net cash provided by (used in) investing activities | $27,390 | $(62,789) | | Net cash (used in) provided by financing activities | $(421,912) | $287,284 | [Notes to Condensed Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the **Cognyte spin-off**, **$200 million Apax investment**, new revenue disaggregation, ASU 2020-06 adoption for convertible instruments, and the post-quarter acquisition of Conversocial for **$48.4 million** - **Cognyte Software Ltd. spin-off** completed on February 1, 2021, with its financial results now presented as discontinued operations[42](index=42&type=chunk)[62](index=62&type=chunk) - **Apax Partners completed a $200.0 million investment** in Series B convertible preferred stock on April 6, 2021[44](index=44&type=chunk)[152](index=152&type=chunk) - Adoption of **ASU No. 2020-06** simplified accounting for convertible instruments, eliminating the separation of debt and equity components[58](index=58&type=chunk)[59](index=59&type=chunk) - Post-quarter, Verint acquired **Conversocial Limited** for approximately **$48.4 million in cash** on August 23, 2021[253](index=253&type=chunk)[254](index=254&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's transition to a pure-play customer engagement firm post-Cognyte spin-off, highlighting strong cloud demand, **5% YoY revenue growth**, decreased operating income from resumed investments, and significant capital restructuring [Overview](index=62&type=section&id=Overview) Post-**Cognyte spin-off**, the company transformed into a pure-play customer engagement entity, securing a **$400 million Apax Partners investment** and acquiring Conversocial, driven by strong cloud demand and digital transformation - **Cognyte Software Ltd. spin-off** completed on February 1, 2021, establishing the company as a pure-play customer engagement entity[258](index=258&type=chunk) - **Apax Partners completed a total $400 million investment** with a second **$200 million tranche** via Series B Preferred Stock on April 6, 2021[262](index=262&type=chunk) - **Conversocial acquired** on August 23, 2021, to enhance messaging platform capabilities[264](index=264&type=chunk) - Improved demand for **cloud solutions** driven by accelerated digital transformation, addressing the 'Engagement Capacity Gap'[266](index=266&type=chunk)[269](index=269&type=chunk) [Results of Operations](index=64&type=section&id=Results%20of%20Operations) Q2 FY22 revenue grew **5% YoY to $214.6 million**, driven by **12% recurring revenue** and **49% cloud revenue surge**, while operating income declined to **$11.5 million** due to increased SG&A and R&D expenses Revenue by Category - Q2 (Three Months Ended July 31, in thousands) | Revenue Category | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **Recurring Revenue** | | | | | Total cloud revenue | $93,256 | $62,557 | 49% | | Support revenue | $62,922 | $76,710 | (18)% | | **Total Recurring** | **$156,178** | **$139,267** | **12%** | | **Nonrecurring Revenue** | | | | | Perpetual revenue | $32,349 | $35,829 | (10)% | | Professional services | $26,090 | $28,984 | (10)% | | **Total Nonrecurring** | **$58,439** | **$64,813** | **(10)%** | | **Total Revenue** | **$214,617** | **$204,080** | **5%** | - Operating income decrease primarily due to **$13.7 million (18%) increase in SG&A** and **$1.7 million (5%) increase in R&D, net**[277](index=277&type=chunk)[306](index=306&type=chunk)[309](index=309&type=chunk) - Increased operating expenses resulted from higher employee compensation, contractor costs, and stock-based compensation, contrasting with prior-year COVID-19 cost reductions[306](index=306&type=chunk)[309](index=309&type=chunk) [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) Capital restructuring included issuing **$315 million in convertible notes** and receiving **$198.7 million from preferred stock**, used to settle **$386.9 million in 2014 Notes**, repay **$309 million of term loan**, repurchase **$75.4 million in stock**, and terminate an interest rate swap - Issued **$315.0 million of 0.25% convertible senior notes due 2026** with capped call transactions to reduce potential dilution[343](index=343&type=chunk)[364](index=364&type=chunk)[369](index=369&type=chunk) - Received **$198.7 million in net proceeds** from Series B Preferred Stock issuance to Apax Partners[357](index=357&type=chunk) - Proceeds and cash used to settle **$389.8 million in 2014 Notes**, repay **$309.0 million of the 2017 Term Loan**, and terminate an interest rate swap for **$16.5 million**[357](index=357&type=chunk)[374](index=374&type=chunk)[384](index=384&type=chunk)[395](index=395&type=chunk) - Repurchased approximately **1.6 million shares of common stock for $75.4 million** under a new program authorized in March 2021[363](index=363&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are interest rate changes on variable-rate debt and foreign currency fluctuations, with exposure reduced by **$309.0 million term loan repayment** and **$16.5 million swap termination**, while monitoring LIBOR phase-out - Exposed to **interest rate risk** on its 2017 Credit Agreement, with variable rates based on LIBOR[405](index=405&type=chunk) - An interest rate swap was **terminated early on April 13, 2021, for a $16.5 million payment** after significant term loan repayment, mitigating risk[406](index=406&type=chunk) - Monitoring the planned **phase-out of LIBOR** after 2021/2023 and the transition to alternative rates such as SOFR[407](index=407&type=chunk) [Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) As of July 31, 2021, the CEO and CFO concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded **disclosure controls and procedures were effective** as of July 31, 2021[411](index=411&type=chunk) - No material changes occurred to the company's **internal control over financial reporting** during the quarter[412](index=412&type=chunk) [Part II. Other Information](index=88&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=88&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in an ongoing Israeli legal action concerning stock options, a liability from the 2013 CTI merger, with indemnification rights from Mavenir Inc. and Cognyte - Verint is party to an **Israeli legal action** inherited from the 2013 CTI merger, concerning alleged damages related to stock option exercise suspensions[245](index=245&type=chunk)[247](index=247&type=chunk) - The company is entitled to **indemnification from Mavenir Inc.** and from **Cognyte** for potential losses not covered by Mavenir[247](index=247&type=chunk)[251](index=251&type=chunk) [Risk Factors](index=88&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to risk factors previously disclosed in the company's Annual Report on Form 10-K or Quarterly Report on Form 10-Q - **No material changes** to previously disclosed risk factors[417](index=417&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2, Verint issued approximately **1.25 million unregistered shares** to settle 2014 Notes conversion premium, offset by receiving approximately **1.29 million shares** from convertible note hedge exercises - Issued approximately **1,250,000 unregistered shares** to settle the 2014 Notes conversion premium[418](index=418&type=chunk) - Received **1,292,671 shares of common stock** from exercising convertible note hedge transactions, offsetting dilution from note conversion[418](index=418&type=chunk)[419](index=419&type=chunk) [Exhibits](index=90&type=section&id=Item%206.%20Exhibits) Exhibits filed with Form 10-Q include CEO and CFO certifications and XBRL data files - Exhibits include **CEO and CFO certifications** (31.1, 31.2, 32.1, 32.2) and **XBRL interactive data files** (101 series)[427](index=427&type=chunk)

© 2021 Verint Systems Inc. All Rights Reserved Worldwide. FYE22 First Quarter Conference Call Boundless Customer EngagementTM June 9, 2021 VERINT. Disclaimers Forward Looking Statements This presentation contains "forward-looking statements," including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on ...

Financial Data and Key Metrics Changes - Non-GAAP revenue for Q1 2022 was reported at $202 million, with adjusted EBITDA at $49 million and non-GAAP diluted EPS at $0.44 [30][31] - Non-GAAP cloud revenue increased by 39% year-over-year, with new PLE bookings growing by 28% year-over-year [9][31] - Recurring revenue as a percentage of software revenue increased to 83%, reflecting a 100 basis point year-over-year improvement [32] Business Line Data and Key Metrics Changes - New SaaS ACV growth was reported at 58% year-over-year, indicating strong demand for cloud solutions [32] - More than 50% of new software bookings were from SaaS for the first time, with expectations to approach 60% for the year [48] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) was reported at $619 million, up 30% year-over-year, indicating multi-year commitments from cloud customers [32] - The company noted a significant opportunity for cloud penetration, with existing customers being less than 25% penetrated with the cloud platform [49] Company Strategy and Development Direction - The company aims to assist brands in navigating digital transformation through an open cloud platform that connects work, data, and experience across the enterprise [11] - The strategy includes winning new customers and capturing white space within the existing customer base, with a focus on eliminating silos and enhancing customer experience [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the year and raised the annual outlook for PLE bookings growth to more than 10% [33] - The company anticipates continued cloud momentum and expects revenue to increase sequentially in Q2, with a forecast of $205 million to $210 million [40] Other Important Information - The company completed several capital market transactions to strengthen its balance sheet, including share repurchases and debt repayments [36][38] - The company has approximately $400 million in cash and net debt of about $50 million following the spin-off of its Cyber Intelligence business [38] Q&A Session Summary Question: What is driving customers to move to the cloud with Verint? - Management indicated that digital transformation and COVID-19 have accelerated the shift to cloud solutions, providing better visibility and efficiency tools for managing the workforce [44] Question: What percentage of the customer base has moved to the cloud? - Management noted that the majority of customers are moving to the cloud, with over 50% of PLE bookings coming from SaaS, and an average penetration of less than 25% among top customers [48] Question: How is market demand trending? - Management reported strong growth in bookings and a shift from perpetual licenses to cloud solutions, with expectations for revenue growth to accelerate [62] Question: What feedback has been received on the new real-time work solutions? - Positive feedback was received from customers and partners, indicating strong interest in AI-driven decision-making tools that enhance workforce productivity [55][56] Question: What are the dynamics affecting bundled and unbundled SaaS? - Management explained that the dynamics are influenced by customer preferences for flexibility in hosting services, with both models expected to work together [79][80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-34807 Verint Systems Inc (Exact Name of Registrant as Specified in its Charter) Delaware 11-3200514 (State or Other Jurisdiction ...

Verint Systems, Inc. (NASDAQ:VRNT) Q4 2021 Earnings Conference Call March 31, 2021 4:30 PM ET Company Participants Matthew Frankel - Manager, IR and Corporate Development Dan Bodner - CEO & Chairman Douglas Robinson - CFO Conference Call Participants Daniel Ives - Wedbush Securities Ryan MacDonald - Needham & Company Brian Essex - Goldman Sachs Group Paul Coster - JPMorgan Chase & Co. Samad Samana - Jefferies Daniel Bergstrom - RBC Capital Markets Operator Ladies and gentlemen, thank you for standing by, an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-34807 Verint Systems Inc (Exact Name of Registrant as Specified in its Charter) Delaware 11-3200514 (State or Other Jurisdiction of Incorporation ...

© 2020 Verint Systems Inc. All Rights Reserved Worldwide. FY21 Third Quarter Conference Call Actionable Intelligence® December 9, 2020 VERINT. Disclaimers Forward Looking Statements This presentation contains "forward-looking statements," including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on mana ...