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]

Group 1 - Verint Systems Inc. is set to release its first-quarter earnings results on June 4, with expected earnings of 23 cents per share, a decrease from 59 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $194.22 million, down from $221.28 million a year earlier [1] - On May 28, Verint announced a $13 million multi-year deal with a leading U.S. insurance company, which contributed to a 3.4% increase in its share price, closing at $17.81 [2] Group 2 - Analyst Daniel Ives from Wedbush maintained an Outperform rating but reduced the price target from $38 to $30 [5] - Evercore ISI Group's Peter Levine kept an In-Line rating and lowered the price target from $34 to $23 [5] - TD Cowen's Shaul Eyal maintained a Buy rating while cutting the price target from $40 to $36 [5]

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 ...

Revenue and Business Model - For the fiscal year ended January 31, 2025, approximately 80% of the company's revenue came from its subscription business, measured using Subscription Annual Recurring Revenue (ARR) [28]. - The company derived approximately 72% of its revenue from the Americas, 18% from EMEA, and 10% from APAC for the year ended January 31, 2025 [48]. - The company’s solutions are used by over 80 of the Fortune 100 companies across more than 175 countries [48]. AI and Technology Development - The company has developed over 50 AI-powered bots in its open platform, designed to automate specific micro-workflows with high precision [34]. - The platform's core, Verint Da Vinci AI, combines various AI models to create bots that enhance innovation and efficiency across applications [37]. - The behavioral data hub at the platform core helps brands leverage customer interaction data to derive critical business insights [39]. - The company has hundreds of issued patents and patent applications worldwide, focusing on areas such as AI and machine learning [85]. Customer Engagement and Market Trends - The customer engagement industry is experiencing growth in customer interactions and expectations, leading brands to seek AI-powered platforms for cost-effective CX automation [25]. - The economic benefits of CX automation for brands include increased workforce productivity and higher customer loyalty, while the company expects a shift in capital from labor to AI-powered solutions [30]. - The company aims to drive adoption of its open platform by enabling brands to deploy AI across customer engagement workflows with minimal operational disruption [27]. - The company is well-positioned to capitalize on the CX automation market opportunity due to its extensive experience in customer and workforce engagement software [26]. Competition and Risks - The company faces risks related to competition, technological advancements, and the ability to execute its SaaS strategy effectively [20]. - The company faces strong competition from various vendors, including major players like Microsoft, Amazon, and Salesforce [81]. Financial Performance and Position - As of January 31, 2025, the company had cash and cash equivalents totaling approximately $215.7 million, down from $241.4 million in 2024 [381]. - The company recorded net foreign currency losses of $5.9 million for the year ended January 31, 2025, compared to $0.4 million in 2024 [386]. - A hypothetical 10% change in interest rates would not have had a material impact on the company's financial statements [378]. - The company performed a sensitivity analysis indicating that a 10% increase in the relative value of the U.S. dollar would decrease the estimated fair value of foreign exchange derivatives by approximately $0.6 million [389]. - The company is exposed to market risk related to changes in interest rates and foreign currency exchange rate fluctuations, managing this through derivative instruments [392]. - The company has investment guidelines designed to maintain safety and liquidity, focusing on preserving principal while maximizing investment income [380]. Employee and Organizational Insights - As of January 31, 2025, the company employed approximately 3,800 employees, with 39% in the Americas, 33% in EMEA, and 28% in APAC [61]. - Approximately 80% of global employees participated in the Great Place to Work® survey, with nearly 94% feeling welcome upon joining the company [75]. - As of January 31, 2025, females represented approximately 28% of the company’s employee base and 26% of leadership roles [68]. - The company donated over $540,000 to charitable organizations in the year ended January 31, 2025, with more than 2,400 employees participating in approximately 100 events [80]. Research and Development - The company has a well-defined roadmap for R&D, focusing on enhancing existing solutions and introducing new features based on market research and customer demand [59]. - The company’s R&D activities are primarily conducted in the United States, the United Kingdom, Israel, India, Hungary, Ireland, and Indonesia [58]. Economic and Market Conditions - The company believes that current macroeconomic factors, including inflation, are impacting customer spending decisions [393]. - The company’s business is subject to seasonal and cyclical factors, with revenue typically highest in the fourth quarter and lowest in the first quarter [51].