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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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 ...