Verint Systems Inc. (NASDAQ:VRNT) Q4 2024 Earnings Conference Call March 27, 2024 4:30 PM ET Company Participants Matthew Frankel - Investor Relations and Corporate Development Director Dan Bodner - Chief Executive Officer Grant Highlander - Chief Financial Officer Conference Call Participants Shaul Eyal - TD Cowen Peter Levine - Evercore ISI Joshua Reilly - Needham Timothy Horan - Oppenheimer Operator Good day, and thank you for standing by. And welcome to the Verint Systems, Inc. Q4 2024 Earnings Conferen ...

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, 2024 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 ...

Financial Performance - Revenue for Q4 FYE 2024 was $265 million, representing a 12% year-over-year growth[1] - For the year ended January 31, 2024, revenue was $910 million on a GAAP basis and $911 million on a non-GAAP basis[1] - Diluted EPS for Q4 FYE 2024 was $0.37 on a GAAP basis and $1.07 on a non-GAAP basis[1] - Total revenue for the three months ended January 31, 2024, was $265,109,000, representing a 12.2% increase from $236,247,000 in the same period of 2023[17] - Net income for the year ended January 31, 2024, was $39,634 thousand, significantly up from $15,659 thousand in 2023, representing an increase of 153.5%[52] - Net income attributable to Verint Systems Inc. for the three months ended January 31, 2024, was $28,703,000, compared to $12,948,000 in 2023, representing a significant increase of 121.5%[17] - GAAP net income attributable to common shares for the three months ended January 31, 2024, was $23,503,000, compared to $7,748,000 in 2023, indicating a significant increase of 203.5%[32] Revenue Growth - SaaS revenue grew approximately 28% year-over-year, with 89% of software revenue being recurring[5] - Bundled SaaS New ACV bookings increased by 16% year-over-year in Q4, with a pipeline growth of over 20%[2] - Recurring revenue for the year ended January 31, 2024, was $699,248,000, up from $685,537,000 in 2023, reflecting a growth of 2.1%[17] - SaaS revenue for the three months ended January 31, 2024, reached $168,588,000, a 28.5% increase compared to $131,134,000 in the same period of 2023[19] - SaaS Annual Recurring Revenue (ARR) as of January 31, 2024, was $534,438,000, an increase from $497,982,000 in 2023, reflecting a growth of 7.3%[21] Profitability Metrics - Gross margin improved by approximately 300 basis points year-over-year[5] - Gross profit for the three months ended January 31, 2024, was $190,814,000, with a gross margin of 72.0%, compared to a gross profit of $163,416,000 and a margin of 69.2% in 2023[24] - Non-GAAP diluted EPS guidance for the year ending January 31, 2025 is projected at $2.89, reflecting a 6% year-over-year growth[12] - Adjusted EBITDA for the three months ended January 31, 2024, was $88,700,000, representing a 30.5% increase from $67,968,000 in 2023[35] - Non-GAAP total revenue for the year ended January 31, 2024, was $911.5 million, compared to $905.2 million for the previous year, indicating a slight increase of 0.7%[45] Expenses and Costs - Selling, general and administrative expenses for the three months ended January 31, 2024, were $108,383,000, which is 40.9% of GAAP revenue, compared to 38.3% in 2023[27] - Research and development expenses for the three months ended January 31, 2024, were $35,881,000, accounting for 13.5% of GAAP revenue, compared to 13.9% in the same period of 2023[25] - The company incurred acquisition and divestitures expenses of $9,856,000 for the three months ended January 31, 2024, compared to a benefit of $(1,346,000) in the same period of 2023[32] Cash Flow and Debt - Free cash flow is expected to increase by more than 40% for FYE 2025, targeting approximately $180 million[3] - Net cash provided by operating activities increased to $150,642 thousand in 2024 from $139,816 thousand in 2023, a rise of 7.6%[52] - Gross debt remained stable at $415,000,000 as of January 31, 2024, compared to the same amount in 2023[36] - Net debt, including long-term restricted cash and cash equivalents, was $171,464,000 as of January 31, 2024, up from $131,617,000 in 2023, reflecting a 30.2% increase[36] Strategic Focus - The company ended Q4 with approximately 1,300 engineers in R&D and Cloud Operations, focusing on AI adoption[3] - The company expects customers to adopt AI solutions over time, indicating a strategic shift away from traditional managed services offerings[38] Tax and Regulatory - The company reported a GAAP effective income tax rate of 19.2% for the three months ended January 31, 2024, down from 58.6% in the same period of 2023[31] - The non-GAAP effective income tax rate for the year ended January 31, 2024, is 8%, down from 9% for the year ended January 31, 2023[68] Asset Management - Total assets decreased to $2,226,424 thousand in 2024 from $2,313,601 thousand in 2023, a decline of approximately 3.75%[50] - Total current liabilities decreased to $418,171 thousand in 2024 from $471,051 thousand in 2023, a reduction of 11.2%[50] - Total stockholders' equity decreased to $832,666 thousand in 2024 from $858,149 thousand in 2023, a decline of 3.0%[50]

MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT), The Customer Engagement Company®, today announced the launch of the Verint TimeFlex Bot to redefine agent scheduling flexibility in the contact center, dramatically elevating employee experience (EX) and reducing manual effort for scheduling changes by supervisors. The Verint TimeFlex Bot is one of many Verint bots powered by sophisticated artificial intelligence (AI) models now available on the Verint Open Platform. The TimeFlex Bot leverages AI w ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT) will conduct a conference call on Wednesday, March 27, 2024 at 4:30 p.m. ET to review its fourth quarter and full-year financial results (for the quarter and year ended January 31, 2024) and discuss its outlook. An earnings press release will be issued after the market closes on March 27th. A real-time webcast of the conference call with presentation slides will be available on Verint's Investor Relations webcast page. Participants may register for th ...

SYDNEY & MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT), The Customer Engagement Company®, today announced that it has been recognized as the leading workforce management (WFM), quality monitoring (QM) and analytics solutions provider in Asia Pacific (APAC) by the research firm Frost & Sullivan. The company’s contact center platform achieved the top market share leadership scores from Frost & Sullivan for each of these segments in a report entitled Asia-Pacific Contact Center Applications Tracke ...

MELVILLE, N.Y.--(BUSINESS WIRE)--A new Verint study reveals only 10 percent of contact center leaders believe telephony will have an impact on CX automation over the next 12 months while 53 percent indicated artificial intelligence (AI) and 23 percent said digital channels will be the driving forces behind their CX automation efforts. The survey of 300 contact center leaders in the U.S., U.K., Australia and New Zealand, was conducted by Verint® (NASDAQ: VRNT) and sheds light on current and emerging conta ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT), The Customer Engagement Company®, was named a Leader in a recently published report, IDC MarketScape: Worldwide General Purpose Conversational AI Software 2023 Vendor Assessment (doc #US49988023, November 2023). This recognition falls on the heels of Verint being named a Leader in the IDC MarketScape: Worldwide Voice of the Customer Applications 2023-2024 Vendor Assessment (doc #US50052123, November 2023). The IDC MarketScape report provides a thor ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT), The Customer Engagement Company®, today was named a Leader in the recently published IDC MarketScape: Worldwide Voice of the Customer Applications 2023–2024 Vendor Assessment*. The report provides a thorough evaluation and assessment of 11 voice of the customer (VoC) application platforms including the most important selection criteria for companies looking to invest in such a solution. Verint was named a Leader due to its scalability and open pla ...

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