Core Insights - Verint Systems (VRNT) is currently rated as a Strong Buy (1) by Zacks, while Intuit (INTU) holds a Hold (3) rating, indicating a more favorable outlook for VRNT in terms of earnings estimates and revisions [3] - Value investors typically assess stocks using traditional metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to identify undervalued opportunities [4] Valuation Metrics - VRNT has a forward P/E ratio of 7.99, significantly lower than INTU's forward P/E of 31.17, suggesting that VRNT may be undervalued compared to INTU [5] - The PEG ratio for VRNT is 0.67, while INTU's PEG ratio is 2.16, indicating that VRNT has a more favorable earnings growth outlook relative to its price [5] - VRNT's P/B ratio stands at 1.77, compared to INTU's P/B of 9.27, further supporting the notion that VRNT is more attractively valued [6] - Overall, VRNT's Value grade is B, while INTU's Value grade is F, reinforcing the conclusion that VRNT is the better option for value investors at this time [6]

Group 1 - Verint Systems (NASDAQ: VRNT) reported solid Q3 earnings but faces pressure from weak topline growth and market concerns regarding AI and increased competition [1] - The company is experiencing challenges in maintaining growth amidst a competitive landscape [1] Group 2 - The article highlights the importance of analyzing undercovered companies, particularly in sectors like technology, software, electronics, and energy transition [1] - The author emphasizes the goal of identifying asymmetric investment opportunities to achieve market-beating returns [1]

Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $224 million, exceeding guidance by approximately $14 million, representing about 5% year-over-year growth when adjusted for last year's divestiture [11][27] - Non-GAAP diluted EPS was $0.54, approximately $0.11 ahead of guidance [13][29] - Gross margin expanded to 72%, up approximately 70 basis points year-over-year, reflecting a favorable shift towards higher-margin recurring revenue [28] Business Line Data and Key Metrics Changes - Bundled SaaS revenue increased by 19% year-over-year, an acceleration from previous quarters, driven by AI momentum [12][30] - Unbundled SaaS revenue was reported at $73 million, ahead of expectations, with a forecast of around $100 million for Q4 due to a large pool of renewals [31] - New SaaS ACV bookings increased by 37% year-over-year in Q3 [36] Market Data and Key Metrics Changes - SaaS ARR increased by 11% year-over-year, driven by AI adoption, with expectations for double-digit growth in Q4 [37] - The company reported strong customer outcomes from AI deployments, with significant savings reported by clients in various sectors [16][18] Company Strategy and Development Direction - The company aims to maintain its leadership in the CX automation market, emphasizing its unique hybrid cloud model that allows for quick AI integration without disruptive infrastructure changes [44][50] - The focus on AI innovation is expected to drive future growth, with plans to showcase these advancements at the upcoming Investor Day [23][41] Management's Comments on Operating Environment and Future Outlook - Management noted that the contact center market is in the early stages of AI adoption, with increasing customer demand for tangible AI business outcomes [19][70] - There is an expectation for improved sales cycles in 2025 as customers gain a better understanding of AI solutions [67][71] Other Important Information - The company completed a tuck-in acquisition during Q3, contributing approximately $1 million in revenue, with potential for several million in Q4 [54][57] - The company is executing a $200 million share repurchase program and plans to expand on its capital allocation strategy during the Investor Day [39] Q&A Session Summary Question: Is Verint gaining market share in the contact center arena? - Management believes Verint is leading the CX automation market and gaining share due to strong customer-reported outcomes and a unique platform offering [44][46] Question: Can you provide details on the recent tuck-in acquisition? - The acquisition involved a startup focused on AI technology, contributing about $1 million in Q3, with potential for more in Q4 [54][57] Question: Are customers seeing changes in seat counts and net spending? - Some customers are reducing workforce while others are reallocating agents to focus on relationship building, indicating varied strategies in response to AI deployment [60][62] Question: How is the partnership with RingCentral expected to impact growth? - The partnership aims to enhance cloud-to-cloud integration, providing customers with seamless access to Verint's capabilities, expected to be a growth engine in 2025 [75][76] Question: What were the key announcements from the recent Engage conference? - The conference highlighted customer success stories and the introduction of new bots, with a focus on bundling capabilities to enhance customer experience [78][81]

Core Insights - Verint Systems (VRNT) reported revenue of $224.19 million for the quarter ended October 2024, marking a year-over-year increase of 2.5% and exceeding the Zacks Consensus Estimate of $210.21 million by 6.65% [1] - The company's EPS for the same period was $0.54, down from $0.65 a year ago, but it surpassed the consensus EPS estimate of $0.43 by 25.58% [1] Revenue Breakdown - Perpetual revenue (non-GAAP) was reported at $23.47 million, exceeding the average estimate of $21.39 million by analysts, but reflecting a year-over-year decline of 4.4% [3] - Professional services revenue (non-GAAP) was $20.86 million, falling short of the $23.02 million average estimate and showing a significant year-over-year decrease of 36.5% [3] - Support revenue (non-GAAP) reached $25.46 million, slightly above the average estimate of $24.80 million, but still representing a year-over-year decline of 24.3% [3] Stock Performance - Over the past month, Verint's shares have returned +9.7%, outperforming the Zacks S&P 500 composite's +5.8% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Core Viewpoint - Verint Systems reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, although down from $0.65 per share a year ago [1][3] Financial Performance - The earnings surprise for the quarter was 25.58%, with the company previously expected to post earnings of $0.53 per share but actually reporting $0.49 per share in the prior quarter, resulting in a surprise of -7.55% [2] - For the quarter ended October 2024, Verint posted revenues of $224.19 million, surpassing the Zacks Consensus Estimate by 6.65%, compared to $218.67 million in the same quarter last year [3] - Over the last four quarters, Verint has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [3] Stock Performance and Outlook - Verint shares have declined approximately 10.2% since the beginning of the year, contrasting with the S&P 500's gain of 26.8% [5] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [8] - The current consensus EPS estimate for the upcoming quarter is $1.40 on revenues of $291.59 million, and for the current fiscal year, it is $2.92 on revenues of $933.24 million [9] Industry Context - The Computer - Software industry, to which Verint belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [10]

Wall Street analysts forecast that Verint Systems (VRNT) will report quarterly earnings of $0.43 per share in its upcoming release, pointing to a year-over-year decline of 33.9%. It is anticipated that revenues will amount to $210.21 million, exhibiting a decline of 3.9% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial p ...

Verint Systems Inc VRNT shares are in the spotlight Thursday after The Bear Cave released a bearish report on the contact center company. What To Know: Short-selling firm The Bear Cave has customer experience (CX) automation company Verint Systems in its crosshairs. The short seller published a report Thursday morning titled, "Problems at Verint Systems (VRNT)," arguing that the company is likely to be disrupted by AI advancement. "Verint's management insists Verint will be an AI beneficiary as customers us ...

Core Viewpoint - Verint Systems has shown promising growth in its AI-related business, but overall growth remains tepid, leading to a decline in stock price after the latest earnings report. This situation presents a potential buying opportunity for investors interested in the future of contact centers and customer service [1]. AI Business Growth - Verint's AI bookings increased over 40% year-over-year in Q2 - Bundled SaaS revenue driven by AI rose 15% year-over-year from $62.1 million to $71.6 million (GAAP) - SaaS renewal contracts have term lengths approximately 20% longer than the previous year - The company highlighted numerous customer success stories to demonstrate the effectiveness of its AI solutions [2]. Overall Business Performance - Verint reported no revenue growth year-over-year, with a 3% increase after adjusting for divestiture - Both recurring and non-recurring revenue lines remained essentially flat year-over-year - Gross profit saw a modest increase of 2.9% [3]. Profitability Metrics - Diluted EPS was $0.02 on a GAAP basis and $0.49 on a non-GAAP basis, compared to -$0.17 and $0.48 respectively a year ago - GAAP operating income was $13.87 million, up from a loss of $7.51 million a year ago - GAAP net income attributable to Verint was $5.53 million, compared to a loss of $6.0 million a year ago [4]. Cash Management and Buybacks - Verint announced a new $200 million stock buyback program, expected to be executed over two years - The company plans to allocate half of its free cash flow to stock repurchases - Stock-based compensation increased by 22.3% year-over-year to $41.8 million, potentially diluting the impact of buybacks [5]. Valuation Insights - A DCF model suggested an intrinsic value of $28.57 for Verint - The company currently trades at a price/sales ratio of 1.80, which is considered a discount - A private equity firm could potentially pay 3-4 times sales for Verint once its AI-driven business model gains momentum [6]. Competitive Landscape - Verint faces growing competition in the contact center software market, with many companies adopting AI-driven automation - The company believes its products are ahead of competitors due to its expertise in contact centers and effective AI integration - Verint's hybrid cloud design allows for faster AI deployment, which is a competitive advantage [7]. Future Guidance - Verint maintains its guidance for 5% year-over-year revenue growth after accounting for divestiture - The company aims for a non-GAAP diluted EPS of $2.90 and 10% EBITDA growth for the full year - An ambitious target is set for fiscal 2027, aiming for a combined revenue growth rate and profit margin of at least 40% [8]. Investment Outlook - The recent price setback is viewed as an opportunity to accumulate Verint stock - There is limited downside risk in the long term, although short-term challenges are anticipated due to seasonal factors and softening IT spending [9].

Trailing quarterly performance didn't impress the market, and full-year guidance didn't blow anyone away either. Next-generation customer experience specialist Verint Systems (VRNT -11.15%) wasn't feeling like the future on Thursday. The company published an earnings report that displeased investors, who pushed its share price down by more than 11% during the trading session. That was a notably steeper decline than the relatively light 0.3% dip of the S&P 500 index on the day. Only flat top-line growth but ...

Verint Systems Inc. VRNT reported worse-than-expected second-quarter financial results and announced a new $200 million stock buyback program on Wednesday. Verint reported quarterly earnings of 49 cents per share which missed the analyst consensus estimate of 53 cents per share. The company reported quarterly sales of $210.170 million which missed the analyst consensus estimate of $212.840 million. Dan Bodner, Verint CEO commented, "Behind our AI momentum is delivering 'AI Business Outcomes, Now'™ better th ...