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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Financial Data and Key Metrics Changes - In Q1, revenue reached $221 million, exceeding guidance by $7 million, with a 5% year-over-year increase [8][15] - Non-GAAP diluted EPS was $0.59, which is $0.05 above guidance and represents an 11% year-over-year increase [8][37] - Non-GAAP gross margins expanded by 260 basis points year-over-year to 72.4% [8][37] - The company raised its revenue and EPS guidance for the year, now expecting non-GAAP revenue of $933 million, reflecting over 5% growth compared to fiscal '24 [68] Business Line Data and Key Metrics Changes - SaaS revenue increased by 20% year-over-year, with bundled SaaS new ACV bookings growing by 25% year-over-year [16][17] - The average SaaS contract term length increased by about 30% compared to the previous year, indicating growing customer confidence [38] - The advanced stage pipeline for bundled SaaS was up more than 20% year-over-year, with over 80% of the pipeline including AI-powered bots [17] Market Data and Key Metrics Changes - The company reported strong SaaS bookings driven by customer adoption of AI-powered bots, with significant wins including a $14 million contract with a major retailer [9][10] - The insurance company deploying Verint bots saw a 30% reduction in agent attrition, showcasing the effectiveness of the AI solutions [11] - A bank utilizing Verint Coaching Bots achieved a 48% increase in upsell close rates, demonstrating the revenue-enhancing capabilities of the technology [12] Company Strategy and Development Direction - The company is focused on leading the new CX automation category with its differentiated open platform, which is designed to quickly deploy AI-powered bots [6][13] - Verint aims to accelerate revenue growth to 10% in fiscal '27, consistent with its Rule of 40 target, while also expanding margins [13][21] - The strategy emphasizes delivering tangible AI business outcomes to customers, which is expected to drive further adoption of Verint's solutions [21][66] Management's Comments on Operating Environment and Future Outlook - Management noted that the AI opportunity in the contact center market is substantial, with brands increasingly seeking AI-powered solutions to enhance customer experience [6][27] - The current macro environment is mixed, but there is a clear demand for AI business outcomes, leading to increased customer investment in Verint's solutions [44][47] - The company is well-positioned to deliver strong AI business outcomes quickly, which is a key differentiator in the competitive landscape [47][81] Other Important Information - The company is targeting a greater than 40% increase in free cash flow to approximately $180 million for the full year [20] - A stock buyback program of $200 million is in place, with approximately $37 million of shares repurchased in Q1 [70] Q&A Session Summary Question: What is driving the recent momentum and large contract wins? - Management indicated that large contracts reflect customer confidence in Verint's strategy and the effectiveness of its open platform [44][45] Question: How is the macro environment affecting software investments? - Management acknowledged that while customers are cautious, they are willing to invest in solutions that deliver tangible business outcomes [47] Question: What is the competitive landscape like? - The market is shifting towards AI and data-centric platforms, with customers focusing on vendors that can deliver measurable AI business outcomes [81][82] Question: Are there any trends in agent count and utilization? - Management noted that while there hasn't been a decline in agent numbers, customers are using AI to create additional capacity and improve customer experience [77][96]

Verint Systems (VRNT) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 9.26%. A quarter ago, it was expected that this maker of software for analyzing intercepted communications would post earnings of $0.99 per share when it actually produced earnings of $1.07, delivering a surprise o ...

Financial Performance - Total revenue for the three months ended April 30, 2024, was $221,277,000, a 2.6% increase from $216,566,000 in the same period of 2023[21]. - Net income attributable to Verint Systems Inc. for the three months ended April 30, 2024, was $15,241,000, compared to $3,295,000 in the same period of 2023, representing a significant increase[21]. - Operating income increased to $24,445,000 for the three months ended April 30, 2024, compared to $8,772,000 in the same period of 2023, reflecting a strong operational performance[21]. - The company reported a comprehensive income of $7,962,000 for the three months ended April 30, 2024, down from $11,805,000 in the same period of 2023, primarily due to foreign currency translation adjustments[23]. - The diluted net income per common share attributable to Verint Systems Inc. was $0.16 for the three months ended April 30, 2024, compared to a loss of $0.03 in the same period of 2023[21]. - Net income attributable to Verint Systems Inc. for Q1 2024 was $15.2 million, compared to $3.3 million in Q1 2023, indicating a substantial increase of 361.5%[59]. - Basic net income per common share for Q1 2024 was $0.16, a recovery from a loss of $0.03 per share in Q1 2023[60]. Assets and Liabilities - Total current assets decreased from $573.2 million as of January 31, 2024, to $530.1 million as of April 30, 2024, a decline of approximately 7.5%[19]. - Accounts receivable decreased from $190.5 million to $155.9 million, reflecting a reduction of about 18.2%[19]. - Total liabilities decreased from $957.4 million to $934.8 million, a decrease of approximately 2.4%[19]. - Long-term debt remained relatively stable, increasing slightly from $411.0 million to $411.4 million[19]. - Stockholders' equity decreased from $832.7 million to $818.9 million, a decline of about 1.7%[19]. - Cash and cash equivalents decreased from $241.4 million to $236.6 million, a decline of about 2.3%[19]. - Contract liabilities decreased from $254.4 million to $242.5 million, a reduction of approximately 4.7%[19]. - Total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period were $237,666,000, down from $260,783,000 at the end of the same period in 2023[29]. - Remaining performance obligations totaled $717.4 million as of April 30, 2024, down from $744.3 million as of January 31, 2024[58]. - Total inventories increased to $16.589 million as of April 30, 2024, from $14.209 million on January 31, 2024[104]. - Accrued expenses and other current liabilities totaled $122.391 million as of April 30, 2024, compared to $137.433 million on January 31, 2024[106]. Cash Flow and Expenses - Cash flows from operating activities were $60,717,000 for the three months ended April 30, 2024, slightly up from $60,007,000 in the same period of 2023[29]. - The company incurred total operating expenses of $133,071,000 for the three months ended April 30, 2024, compared to $139,391,000 in the same period of 2023, showing improved cost management[21]. - Research and development expenses rose to $36,730,000 for the three months ended April 30, 2024, up from $31,782,000 in the same period of 2023, indicating increased investment in innovation[21]. - Total interest expense for the 2021 Notes was $643,000 for the three months ended April 30, 2024, compared to $640,000 for the same period in 2023[103]. - The company reported cash payments for interest of $2.210 million for the three months ended April 30, 2024, down from $2.513 million in 2023[108]. Strategic Initiatives - The company is focusing on enhancing its software as a service (SaaS) transition and improving subscription renewal rates[10]. - Future growth strategies include potential mergers and acquisitions to expand market presence and capabilities[10]. - The company completed the acquisition of an AI-powered analytics company for a total consideration of $13.9 million, including $8.8 million in cash and $5.1 million in contingent consideration and previously held investment[67]. - The company invested approximately $1.7 million in a privately-held company via SAFE agreements, which were consolidated into its financial statements following the acquisition[161]. Stock and Dividends - The company repurchased and retired common stock amounting to $38,118,000 during the three months ended April 30, 2024[29]. - The company did not declare or pay any cash dividends on common stock during the three months ended April 30, 2024 and 2023 due to restrictions under its Credit Agreement[128]. - For the three months ended April 30, 2024, the company paid $10.4 million in preferred stock dividends, with $6.9 million of cumulative undeclared and unpaid preferred stock dividends[115]. - The company has a stock repurchase program authorized for up to $200.0 million from December 12, 2022, until January 31, 2025[131]. Legal and Regulatory Matters - Verint agreed to pay a total of $16.0 million as compensation to plaintiffs and class members, with payments structured in three phases[192]. - The company collected a total of $14.5 million in insurance recovery related to legal settlements, offsetting settlement and legal expenses[200]. - The Israeli Supreme Court rejected CTI's motion to appeal, allowing proceedings in the District Court to resume[191]. - Verint's financial results may be influenced by macroeconomic conditions, including inflation and geopolitical events[204]. Tax and Compliance - The effective income tax rate for the three months ended April 30, 2024, was 34.1%, with an income tax provision of $8.0 million on pretax income of $23.3 million[140]. - As of April 30, 2024, the company had unrecognized income tax benefits of $82.5 million, which could decrease by approximately $8.1 million in the next twelve months due to potential settlements of tax audits[144]. - The company is monitoring the OECD Pillar 2 guidelines, which propose a global minimum tax of 15% effective for tax years beginning in 2024, but does not anticipate a material impact on its income tax provision this year[145].

Exhibit 99.1 Investor Relations Contact Matthew Frankel, CFA Verint Systems Inc. (631) 962-9600 matthew.frankel@verint.com Verint Announces Strong Q1 FYE 2025 Results Revenue and Diluted EPS Come in Ahead of Guidance World's Leading Brands Select Verint Open Platform for Tangible AI Business Outcomes Raising Revenue and Diluted EPS Outlook for FYE25 MELVILLE, N.Y., June 4, 2024 - Verint® (Nasdaq: VRNT), The CX Automation Company™, today announced results for the three months ended April 30, 2024 (FYE 2025). ...

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]