Financial Performance - Total revenue for the three months ended April 30, 2025, was $208,097,000, a decrease of 5.0% compared to $221,277,000 for the same period in 2024[19]. - Net income attributable to Verint Systems Inc. for the three months ended April 30, 2025, was $1,622,000, down 89.4% from $15,241,000 in the same period of 2024[19]. - Operating income decreased significantly to $5,072,000 for the three months ended April 30, 2025, compared to $24,445,000 for the same period in 2024, reflecting a decline of 79.3%[19]. - Cash flows from operating activities were $26,323,000 for the three months ended April 30, 2025, a decrease of 56.5% from $60,717,000 in the same period of 2024[26]. - Comprehensive income attributable to Verint Systems Inc. was $35,744,000 for the three months ended April 30, 2025, compared to $7,962,000 in the same period of 2024, indicating a significant increase[21]. - Net income for the three months ended April 30, 2025, was $1.9 million, a significant decrease from $15.4 million in the same period of 2024[53]. - The effective income tax rate for the three months ended April 30, 2025, was 57.5% on pretax income of $4.5 million, compared to an effective rate of 34.1% on pretax income of $23.3 million for the same period in 2024[138][139]. Assets and Liabilities - Total current assets decreased from $578.8 million as of January 31, 2025, to $516.3 million as of April 30, 2025, representing a decline of approximately 10.8%[17]. - Cash and cash equivalents decreased from $215.7 million to $180.9 million, a reduction of about 16.1%[17]. - Accounts receivable decreased from $203.1 million to $172.4 million, reflecting a decrease of approximately 15.1%[17]. - Total liabilities increased from $964.5 million to $925.7 million, a decrease of about 4.0%[17]. - Long-term debt decreased from $312.8 million to $0, indicating a significant reduction in debt obligations[17]. - Total stockholders' equity increased from $889.3 million to $896.5 million, an increase of approximately 0.2%[17]. - Total debt as of April 30, 2025, was $413.1 million, with no long-term debt reported[83]. Revenue Breakdown - Total revenue for the three months ended April 30, 2025, was $208.1 million, a decrease of 5.9% from $221.3 million in the same period of 2024[45]. - Recurring revenue for the three months ended April 30, 2025, was $173.6 million, slightly up from $173.5 million in 2024, with total SaaS revenue increasing to $147.5 million from $141.0 million[45]. - Nonrecurring perpetual revenue decreased to $17.0 million from $24.9 million year-over-year, while nonrecurring professional services and other revenue fell to $17.5 million from $22.8 million[45]. - Revenue in the Americas totaled $143.6 million, down 11.0% from $161.3 million in the prior year[187]. - EMEA revenue increased to $43.1 million, up 9.0% from $39.3 million in the previous year[187]. - APAC revenue was $21.4 million, a slight increase from $20.7 million year-over-year[187]. Expenses and Costs - Research and development expenses increased to $40,641,000 for the three months ended April 30, 2025, up from $36,730,000 in the same period of 2024, reflecting a growth of 8.2%[19]. - The total stock-based compensation expense for the three months ended April 30, 2025, was $15.467 million, a decrease from $18.021 million in the same period of 2024[166]. - Cash paid for interest in Q1 2025 was $1,952,000, down from $2,210,000 in Q1 2024, a decrease of about 11.7%[105]. - The company is actively managing costs to mitigate inflationary pressures affecting customer spending behavior[307]. Acquisitions and Investments - The acquisition of Cogito Corporation on October 11, 2024, involved a total purchase price of $50.271 million, including $38.186 million in cash and $11.786 million in contingent consideration[65][70]. - The acquisition of Cogito resulted in the recognition of $27.1 million in goodwill, with identifiable intangible assets valued at $25.8 million[67][70]. - The company completed the acquisition of a privately-held company for a SAFE investment of approximately $1.7 million during the three months ended April 30, 2024[155]. Stock and Shareholder Information - The company repurchased and retired 2,532,000 shares of common stock during the three months ended April 30, 2025, at a cost of $42,324,000[23]. - A new stock repurchase program was authorized for up to $200,000,000 from August 29, 2024, to August 29, 2026[129]. - The maximum number of shares of common stock that could be issued upon conversion of the outstanding shares of Preferred Stock was approximately 9.6 million shares as of April 30, 2025[114]. - The Series A Preferred Stock has a conversion price adjusted to $36.38 per share as of April 30, 2025, reflecting a significant premium over its initial conversion price[113]. Financial Covenants and Debt - The company issued $315.0 million in 0.25% convertible senior notes due April 15, 2026, with an effective interest rate of approximately 0.83%[84][87]. - The Revolving Credit Facility was increased from $300.0 million to $500.0 million, maturing on March 25, 2030, with an interest rate of 5.82% as of April 30, 2025[94][96]. - The company has a financial covenant requiring a Leverage Ratio of no greater than 4.50 to 1 for the Revolving Credit Facility[98]. Risks and Future Outlook - The company highlighted risks related to technological advancements and competition in the market, particularly in AI and SaaS strategies[10]. - The company continues to evaluate the impact of new accounting standards, including ASU No. 2024-03 and ASU 2024-04, which will affect future disclosures and financial reporting[40][41].

Revenue Performance - Revenue for Q1 was $208 million, with non-GAAP diluted EPS at $0.29, exceeding guidance[6] - Total revenue for the three months ended April 30, 2025, was $208,097,000, a decrease of 5.9% from $221,277,000 in the same period of 2024[18] - For the three months ended April 30, 2025, Verint Systems reported a revenue of $208,097, a decrease of 6.0% compared to $221,277 for the same period in 2024[39] - Revenue denominated in non-U.S. dollars accounted for 21% of total revenue for the three months ended April 30, 2025[40] ARR Growth - Q1 ARR growth accelerated to 6% year-over-year, with subscription ARR reaching $710 million[6] - AI ARR increased by 24.1% year-over-year, totaling $354 million, representing nearly 50% of total ARR[6] - Subscription ARR increased to $709,992,000, reflecting a year-over-year growth of 6.3%[20] - AI ARR grew significantly by 24.1% year-over-year, reaching $353,906,000, while Non-AI ARR decreased by 7.0% to $356,086,000[20] - The company anticipates AI ARR to continue growing more than 20% for the year, an acceleration from the previous year[6] - For FYE 2026, the company expects subscription ARR to reach approximately $768 million, reflecting 8% year-over-year growth[8] Profitability Metrics - Non-GAAP diluted EPS guidance for the year is $2.93 at the midpoint of revenue guidance[8] - GAAP gross profit for the quarter was $138,902,000, resulting in a gross margin of 66.7%, down from 71.2% in the prior year[23] - Operating income fell to $5,072,000, with an operating margin of 2.4%, compared to 11.0% in the same quarter of 2024[27] - Net income attributable to Verint Systems Inc. was $1,622,000, a significant decline from $15,241,000 in the previous year[18] - Non-GAAP net income attributable to Verint Systems Inc. common shares was $18,426,000, compared to $42,557,000 in the same period last year[31] Cash Flow and Debt - Cash generation is projected at $960 million, with a cash contribution of $245 million at the midpoint[8] - The company plans to achieve 12% increase in free cash flow for the full year, driven by ARR growth and cash contribution margin expansion[6] - Free cash flow for the three months ended April 30, 2025, was $20,298, down from $54,588 in the prior year[36] - Total debt as of April 30, 2025, was $415,000,000, with net debt amounting to $233,681,000 after accounting for cash and cash equivalents[35] Tax and Liabilities - The company reported a GAAP effective income tax rate of 57.5%, up from 34.1% in the prior year[29] - The non-GAAP effective income tax rate for the year ending January 31, 2026, is approximately 11%, down from 12% for the year ended January 31, 2025[56] - The company’s total liabilities increased to $925,700 as of April 30, 2025, compared to $964,454 as of January 31, 2025[44] Asset Management - Total current assets decreased to $516,288 as of April 30, 2025, from $578,772 as of January 31, 2025[44] - Cash and cash equivalents at the end of the period were $180,870, down from $215,707 at the beginning of the period[46] Investment Activities - Cash used in investing activities for the three months ended April 30, 2025, was $5,421, compared to $14,135 in the prior year[46] - Preferred stock dividend payments for the three months ended April 30, 2025, were $8,000, down from $10,400 in the same period of 2024[46] Definitions and Metrics - Subscription Annual Recurring Revenue (ARR) is used to measure the underlying performance of subscription-based contracts, reducing fluctuations due to seasonality and contract terms[65] - AI Annual Recurring Revenue (AI ARR) represents the annualized quarterly run-rate value of active or signed SaaS agreements that include AI functionality[66] - Cash Generation, which includes ARR and nonrecurring revenue, provides an estimate of the cash-producing potential of the entire business[67] - Net Debt is defined as the sum of long-term and short-term debt minus cash and cash equivalents, helping evaluate capital structure and financial leverage[58] - Free Cash Flow is defined as GAAP cash provided by operating activities less capital expenditures, including property and equipment purchases[59] - Constant currency measures are used to assess performance excluding the effects of foreign currency fluctuations, facilitating comparison between periods[62] - Recurring revenue primarily consists of SaaS revenue and is expected to be renewed in the future, indicating stable income streams[60] - Nonrecurring revenue includes perpetual licenses and hardware, which are less predictable compared to recurring revenue[61] - Adjusted EBITDA is a non-GAAP measure that helps reduce variability caused by differences in capital structures and accounting policies, commonly used by investors[57]

Analysts expect the Melville, New York-based company to report quarterly earnings at 23 cents per share, down from 59 cents per share in the year-ago period. Verint Systems projects to report quarterly revenue at $194.22 million, compared to $221.28 million a year earlier, according to data from Benzinga Pro. On May 28, Verint announced it signed a $13 million multi-year deal agreement with one of the top U.S. insurance companies. Verint Systems shares rose 3.4% to close at $17.81 on Tuesday. Benzinga reade ...

Core Insights - Verint Systems Inc (NASDAQ:VRNT) is experiencing a significant decline, reaching 52-week lows, down 11.4% to $19.15 following a disappointing fourth-quarter report where both earnings and revenue missed estimates [1] - The company's full-year guidance midpoint also fell below expectations, contributing to a year-to-date decline of approximately 30% [2] - The stock is currently trading below all major moving averages, indicating bearish pressure, particularly from the 20-day moving average [2] Analyst Reactions - Several analysts have reduced their price targets for Verint Systems, with Evercore ISI cutting its target from $34 to $23 [3] - Among the seven analysts covering the stock, four have a "buy" or "strong buy" rating, while three maintain a "hold" rating [3] - The 12-month consensus price target remains at $36, representing an 88.4% premium to the current trading levels [3] Options Activity - Verint Systems has seen a surge in options trading, with volume reaching eight times its average daily amount, although the absolute numbers remain relatively low [2] - The most popular option is the April 20 put, with new positions being opened [2]

Financial Performance - Verint Systems reported Q4 earnings of $0.99 per share, missing the analyst consensus estimate of $1.27 per share [1] - Quarterly sales were $253.55 million, falling short of the analyst consensus estimate of $276.99 million [1] Guidance and Growth - The company issued FY26 EPS guidance with its midpoint below estimates [1] - Verint exceeded its Q4 FYE 2025 ARR guidance by $8 million and raised its Q4 FYE 2026 ARR guidance [2] - SaaS ACV bookings from new deals grew by 30% year-over-year, while Bundled SaaS Revenue increased by 23% year-over-year [2] Market Reaction - Following the earnings announcement, Verint shares dipped 11.6% to trade at $19.11 [3] - Analysts adjusted their price targets for Verint, with Needham maintaining a Buy rating but lowering the target from $40 to $30, and Evercore ISI Group maintaining an In-Line rating while cutting the target from $34 to $23 [4]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [2]

Financial Data and Key Metrics Changes - In Q4, the company's ARR growth reached 5%, exceeding the guidance of 4% [10][34] - The ARR outlook for Q4 2026 has been raised from $760 million to $768 million, reflecting an 8% growth [12][48] - Q4 revenue was reported at $254 million, below the guidance of $277 million, primarily due to unbundled SaaS revenue shortfalls [44][45] Business Line Data and Key Metrics Changes - SaaS ACV bookings from new deals increased by 30% year over year to $32 million, marking a quarterly record [27][35] - Bundled SaaS revenue grew 17% year over year, with acceleration from 9% growth in Q1 to 23% growth in Q4 [37][38] Market Data and Key Metrics Changes - The company reported strong AI momentum, with over 90 of the Fortune 500 brands using Verint AI-powered bots [26] - The CX market is in an early stage of AI adoption, with significant growth potential as more customers transition from AI experiments to large-scale deployments [26][29] Company Strategy and Development Direction - The company emphasizes a hybrid cloud approach, allowing customers to layer AI on existing infrastructure without disruption [20][89] - The focus is on delivering strong and differentiated AI business outcomes, which are seen as a key competitive advantage in the CX market [13][17] Management's Comments on Operating Environment and Future Outlook - Management noted that customer confidence is improving, with many moving from small-scale AI experiments to larger deployments [60][66] - The company expects continued ARR growth acceleration, driven by increased AI consumption and customer expansions [29][30] Other Important Information - Cash contribution for fiscal 2025 was reported at $228 million, an increase of 2% year over year [40] - The company has initiated a $200 million stock buyback program and increased its revolver to $500 million [52][53] Q&A Session Summary Question: Customer confidence in buying solutions and deal sizes - Management indicated that customers are moving from small-scale AI experiments to larger deployments, with significant ROI driving this shift [60][62] Question: Impact of pushed unbundled revenue on FY26 guidance - Management clarified that the pushed deals were from existing customers and did not impact the ARR guidance, which remains at 8% growth [68][70] Question: Dynamics of slipped deals and their nature - All slipped deals were from existing customers, with no renewals involved, and the timeline for rollouts has changed [94][96] Question: Channel mix and growth areas - The company is seeing growth in channel partners as they become more capable of selling AI solutions, with a focus on co-selling [100][104] Question: Macro concerns from customers - Management noted that customers are hesitant to undertake infrastructure projects but are increasingly willing to invest in AI solutions that provide tangible results [108][110] Question: Competitive market dynamics and market share - Management believes the company is gaining market share in the CX automation market, driven by its bot strategy and strong customer outcomes [122][126]

Financial Data and Key Metrics Changes - In Q4, the company's ARR growth reached 5%, exceeding the guidance of 4% [10][34] - The ARR outlook for Q4 2026 has been raised from $760 million to $768 million, reflecting an 8% growth [12][48] - Q4 revenue was reported at $254 million, below the guidance of $277 million, primarily due to unbundled SaaS revenue shortfalls [44][45] Business Line Data and Key Metrics Changes - SaaS ACV bookings from new deals increased by 30% year over year to $32 million in Q4, marking a quarterly record [27][35] - Bundled SaaS revenue growth accelerated from 9% in Q1 to 23% in Q4, with a full-year growth of 17% [37][38] Market Data and Key Metrics Changes - The company reported strong AI momentum, with many customers transitioning from small-scale AI experiments to larger deployments [11][60] - Over 90 of the Fortune 500 companies are using Verint AI-powered bots to automate CX workflows, indicating strong market penetration [26] Company Strategy and Development Direction - The company emphasizes a hybrid cloud approach, allowing customers to layer AI on existing infrastructure without disruption [20][89] - The focus is on delivering strong and differentiated AI business outcomes, which are seen as a key competitive advantage in the CX market [13][17] Management's Comments on Operating Environment and Future Outlook - Management noted that customer confidence is improving, with many brands moving away from AI paralysis and investing in AI solutions [60][64] - The company expects continued ARR growth acceleration and a strong performance in fiscal 2026, driven by increased AI consumption [29][30] Other Important Information - Cash contribution for fiscal 2025 was reported at $228 million, an increase of 2% year over year [40] - The company has initiated a $200 million stock buyback program and increased its revolver to $500 million [52][53] Q&A Session Summary Question: Customer confidence in buying solutions and deal sizes - Management indicated that customers are evolving from small AI experiments to larger deployments, with significant ROI driving investment decisions [60][62] Question: Impact of pushed unbundled revenue on FY26 guidance - Management clarified that the pushed deals were from existing customers and did not impact the ARR guidance, which remains at 8% growth [68][70] Question: Dynamics of slipped deals and their nature - All slipped deals were from existing customers, with no renewals involved, and the timeline for rollouts has changed [94][96] Question: Channel mix and growth areas - The company is seeing growth in channel partnerships, with partners becoming more capable of selling AI solutions as they gain knowledge [100][104] Question: Macro concerns from customers - Management noted that customers are hesitant to undertake infrastructure projects but are increasingly willing to invest in AI solutions that provide tangible results [108][110] Question: Competitive market dynamics and market share - Management believes the company is gaining market share in the CX automation market, driven by its bot strategy and strong customer outcomes [126]

Verint Systems (VRNT) reported $253.55 million in revenue for the quarter ended January 2025, representing a year-over-year decline of 4.4%. EPS of $0.99 for the same period compares to $1.07 a year ago.The reported revenue represents a surprise of -8.43% over the Zacks Consensus Estimate of $276.87 million. With the consensus EPS estimate being $1.27, the EPS surprise was -22.05%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Verint Systems (VRNT) came out with quarterly earnings of $0.99 per share, missing the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.05%. A quarter ago, it was expected that this maker of software for analyzing intercepted communications would post earnings of $0.43 per share when it actually produced earnings of $0.54, delivering a surprise ...