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 ...

da-kuk Introduction Verint Systems (NASDAQ:VRNT) just recently reported its Q2 '25 results, so I wanted to look at the company's overall performance over the years to see if it would be a good time to start a position. I am not very impressed with how the financials progressed over the years, and the reliance on adjusted numbers makes it for risky investment at this price. I am initiating a hold rating. Q2 Results Revenues came in at $210m, flat y/y. GAAP EPS came in at $0.2 vs -$0.17 from a year ago, showi ...

Core Insights - Verint Systems (VRNT) reported revenue of $210.17 million for the quarter ended July 2024, reflecting a year-over-year decline of 0.1% and an EPS of $0.49, slightly up from $0.48 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $213.22 million, resulting in a surprise of -1.43%, while the EPS also missed the consensus estimate of $0.53 by -7.55% [1] Revenue Breakdown - Perpetual revenue (non-GAAP) was reported at $23.83 million, exceeding the average estimate of $22.69 million from three analysts, but showing a year-over-year decline of -5.5% [3] - Professional services revenue (non-GAAP) reached $23.11 million, slightly above the average estimate of $22.99 million, with a year-over-year change of -3.5% [4] - Support revenue (non-GAAP) was reported at $26.56 million, surpassing the average estimate of $25.67 million, but indicating a significant year-over-year decline of -25% [5] Stock Performance - Over the past month, shares of Verint have returned -7.7%, contrasting with the Zacks S&P 500 composite's increase of +3.6% [5] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [5]

Financial Performance - Total revenue for the three months ended July 31, 2024, was $210,170, a slight increase from $210,165 in the same period of 2023[12]. - Recurring revenue for the six months ended July 31, 2024, reached $336,757, up from $327,438 year-over-year, indicating a growth of approximately 1.0%[12]. - Gross profit for the three months ended July 31, 2024, was $145,426, compared to $141,289 in the prior year, reflecting a year-over-year increase of about 2.0%[12]. - Operating income for the three months ended July 31, 2024, was $13,870, a significant recovery from a loss of $7,512 in the same quarter of 2023[12]. - Net income attributable to Verint Systems Inc. for the three months ended July 31, 2024, was $5,531, compared to a loss of $6,000 in the prior year[12]. - The company reported a basic net income per share of $0.02 for the three months ended July 31, 2024, recovering from a loss of $0.17 in the same period of 2023[13]. - Net income for the six months ended July 31, 2024, was $21,102 thousand, a significant improvement compared to a net loss of $2,154 thousand for the same period in 2023[18]. - Revenue for the six months ended July 31, 2024, increased by approximately $4.7 million, or 1%, to $431.4 million from $426.7 million in the same period in 2023, driven by a $9.3 million increase in recurring revenue[181]. Assets and Liabilities - Total assets decreased from $2,226,424 thousand as of January 31, 2024, to $2,183,706 thousand as of July 31, 2024, representing a decline of approximately 1.9%[11]. - Cash and cash equivalents decreased from $241,400 thousand to $207,845 thousand, a reduction of about 13.9%[11]. - Accounts receivable decreased from $190,461 thousand to $156,953 thousand, a decline of approximately 17.6%[11]. - Total current liabilities decreased from $418,171 thousand to $364,109 thousand, a reduction of about 12.9%[11]. - Long-term debt remained relatively stable, increasing slightly from $410,965 thousand to $411,733 thousand[11]. - Total stockholders' equity increased from $832,666 thousand to $838,744 thousand, an increase of approximately 0.9%[11]. - Contract liabilities decreased from $254,437 thousand to $231,459 thousand, a decline of about 9.0%[11]. - Goodwill increased from $1,352,715 thousand to $1,369,311 thousand, an increase of approximately 1.2%[11]. - The company reported a retained earnings improvement from an accumulated deficit of $(6,723) thousand to $4,369 thousand[11]. Cash Flow and Investments - Cash flows from operating activities provided $64,580 thousand, slightly up from $63,332 thousand in the previous year[18]. - Cash used in investing activities totaled $21,727 thousand, compared to $15,821 thousand in the prior year[18]. - Cash paid for asset acquisitions and business combinations was $10,356 thousand, an increase from $916 thousand in the previous year[18]. - The company had a decrease in cash, cash equivalents, and restricted cash of $34,005 thousand, compared to a decrease of $50,802 thousand in the prior year[18]. - During the six months ended July 31, 2024, Verint Systems Inc. completed two business combinations, including an acquisition of an AI-powered analytics company for a total consideration of $13.9 million[51][52]. Expenses - Research and development expenses for the three months ended July 31, 2024, were $35,358, up from $34,057 in the previous year, indicating an increase of approximately 3.8%[12]. - Total operating expenses decreased to $131,556 for the three months ended July 31, 2024, down from $148,801 in the same period of 2023, a reduction of about 11.6%[12]. - The company reported stock-based compensation of $41,784 thousand for the six months ended July 31, 2024, up from $34,156 thousand in the same period last year[18]. - The total stock-based compensation expense for the six months ended July 31, 2024, was $41,767,000, an increase from $34,100,000 for the same period in 2023, reflecting a year-over-year growth of approximately 22%[145]. Market Position and Strategy - Verint's Open Platform is utilized by over 80 of the Fortune 100 companies, highlighting its market position in customer experience automation[19]. - The company is focused on enhancing customer experience automation through its AI-powered solutions, addressing the challenges faced by brands with limited resources[20]. - The company expects a continued shift in revenue mix towards SaaS offerings, aligning with its cloud-first strategy and increasing demand for AI-powered solutions[192]. Risks and Challenges - The company continues to face risks related to macroeconomic conditions, competition, and technological advancements impacting future performance[5]. - The company continues to monitor macroeconomic conditions, including the war in Ukraine and the Israel-Hamas conflict, which may impact customer spending decisions[166]. - The company anticipates that macroeconomic factors may impact customer spending decisions, despite significant demand for its AI-powered solutions[193]. Stock and Dividends - The company has authorized a new stock repurchase program allowing for the repurchase of up to $200.0 million in common stock from August 29, 2024, until August 29, 2026[108]. - The company did not declare or pay any cash dividends on common stock during the six months ended July 31, 2024, due to restrictions under its Credit Agreement[103]. - Preferred stock dividends paid for the three months ended July 31, 2024, totaled $9.7 million, compared to $5.2 million for the same period in 2023, reflecting an increase of 86.5%[92]. Employee and Workforce - As of July 31, 2024, the company had approximately 3,700 employees globally, with additional contractors[20]. - As of July 31, 2024, the company employed approximately 3,700 employees, a decrease from approximately 4,100 employees a year earlier, primarily due to the divestment of its manual quality managed services business[184].

Core Viewpoint - Verint Systems reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.53 per share, and showing a slight increase from $0.48 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -7.55%, with the company previously expected to post earnings of $0.54 per share but actually producing $0.59, resulting in a surprise of 9.26% in the prior quarter [2] - Revenues for the quarter ended July 2024 were $210.17 million, missing the Zacks Consensus Estimate by 1.43%, and slightly down from $210.41 million year-over-year [3] Stock Performance - Verint shares have increased approximately 11.7% since the beginning of the year, compared to the S&P 500's gain of 15.9% [4] - The current Zacks Rank for Verint is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $216.78 million, and for the current fiscal year, it is $2.90 on revenues of $938.29 million [8] - The outlook for the Computer - Software industry is positive, ranking in the top 19% of over 250 Zacks industries, suggesting potential for outperformance [9]

Core Viewpoint - Verint Systems has demonstrated strong earnings performance, leading to a significant stock rally, while also facing challenges such as insider selling and institutional outflows [15]. Financial Performance - Verint Systems reported quarterly earnings of $0.59 per share and revenue of $221.28 million, surpassing the consensus estimate of $0.54 per share, marking an earnings surprise of 9.26% [3][4]. - The company has exceeded consensus EPS estimates three times over the past four quarters [3]. - For fiscal 2025, Verint expects full-year sales of $933 million and adjusted earnings of $2.90 per share, slightly above the consensus of $2.88 per share [4]. Stock Performance - Verint's stock surged by 23% on Wednesday, closing above short-term resistance, and has shown a year-to-date performance increase of over 28% [2][6]. - The stock is currently trading at $35.24, which is 13.8% away from its 52-week high and 88.59% above its 52-week low [3][6]. - Analysts have a consensus rating of moderate buy with a price target of $35.20, while Needham & Company LLC set a higher target of $40 [7]. Market Sentiment - Despite positive analyst sentiment, there is a short interest of 4.54%, which has increased by 23.8% from the previous month [8]. - Institutional outflows have significantly outpaced inflows, with $321 million in outflows compared to $176 million in inflows over the past year [10]. Company Overview - Verint Systems provides global customer engagement solutions, including analytics, real-time assistance, and fraud and security solutions, serving various industries such as banking, insurance, and telecommunications [5].

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Verint Systems Inc. (NASDAQ:VRNT) Q1 2025 Earnings Conference Call June 4, 2024 4:30 PM ET Company Participants Matthew Frankel - IR & Corporate Development Director Dan Bodner - CEO Grant Highlander - CFO Conference Call Participants Shaul Eyal - TD Cowen Joshua Reilly - Needham Steven Wahrhaftig - Wedbush Securities Billy Fitzsimmons - Jefferies Operator Thank you for standing by, and welcome to Verint's First Quarter Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a liste ...