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 ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT), The Customer Engagement Company®, today announced it will demonstrate its open platform capabilities for retailers at NRF 2024, and its new retail research findings are now available. Retailers Need to Deliver, Measure and Monitor Cross Channel Experiences The newly published Verint Experience Index (VXI) Retail Study shows that recent reports of the death of in-store shopping have been greatly exaggerated. Despite the growth in popularity of digi ...

MELVILLE, N.Y.--(BUSINESS WIRE)--Verint® (NASDAQ: VRNT), The Customer Engagement Company™, today announced the booking of a contract valued at more than $49 million from a leading U.S. healthcare company to increase customer experience (CX) automation in their customer operations. “We are pleased to receive this strong endorsement of our differentiated open platform and CX Automation strategy. Earlier this year, we announced our next generation, AI-powered open platform. This large contract, which includes ...

Financial Data and Key Metrics Changes - In Q3, revenue reached $219 million, exceeding guidance by $4 million, with non-GAAP diluted EPS at $0.65, which is $0.08 above expectations [54][57] - Non-GAAP gross margins improved to 71.3%, up 180 basis points from Q2 and slightly above the prior year [9][57] - For Q4, the company expects revenue of approximately $264 million, representing an 11% year-over-year growth, and non-GAAP diluted EPS of about $0.99 [6][61] Business Line Data and Key Metrics Changes - The SaaS bookings mix showed that nearly 90% of new SaaS ACV bookings were for bundled SaaS, a significant increase from 65% in the prior year [90] - More than 50% of new SaaS ACV bookings included AI-powered bots, indicating a strong increase in customer AI adoption [54][90] - Perpetual revenue remained stable at $25 million in Q3, with expectations to maintain this level going forward [60] Market Data and Key Metrics Changes - The 12-month SaaS pipeline increased by over 20% year-over-year, driven by strong demand for CX automation and AI [43][58] - The unbundled SaaS revenue is expected to see a significant increase in Q4, projected to reach around $100 million [126] Company Strategy and Development Direction - The company is focusing on a shift towards bundled SaaS offerings, which are essential for accessing AI capabilities, as the market increasingly adopts AI solutions [25][121] - The strategy includes leveraging AI to enhance customer experience while reducing labor costs, positioning the company for growth in a labor-intensive industry ripe for automation [115][121] Management's Comments on Operating Environment and Future Outlook - Management noted that elongated sales cycles have persisted, but they expect a better economic environment next year, driven by the shift to bundled SaaS and AI adoption [12][78] - The company anticipates that the growth in bundled SaaS this year will lead to improved revenue growth rates in the following year [78][129] Other Important Information - The company has repurchased approximately $150 million worth of shares as part of a $200 million stock buyback program, which is expected to be completed faster than planned [94] - The upcoming Investor Day will provide a detailed discussion on AI differentiation and the financial model for the next chapter of growth [42][50] Q&A Session Summary Question: What is the outlook on sales cycles and new ACV? - Management acknowledged that while sales cycles remain elongated, they have adjusted their expectations and are seeing positive indicators in bookings [12][31] Question: How are customers adapting to the shift towards bots? - Management indicated that customers are increasingly focused on reducing labor costs while enhancing customer experience through AI and bots [17][130] Question: What is the current state of the unbundled SaaS revenue? - The company expects a significant increase in unbundled SaaS revenue in Q4, driven by contract renewals, while also noting that many customers are still on-premise [59][102]

Part I. Financial Information [Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Verint's Q3 2023 revenue slightly decreased, but operating income and net income improved, with total assets declining due to financing activities [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | (in thousands) | October 31, 2023 | January 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $503,619 | $619,656 | | Goodwill | $1,343,449 | $1,347,213 | | **Total assets** | **$2,134,634** | **$2,313,601** | | **Total current liabilities** | $370,101 | $471,051 | | Long-term debt | $410,461 | $408,908 | | **Total liabilities** | **$892,948** | **$1,019,131** | | **Total stockholders' equity** | **$805,365** | **$858,149** | - Total assets decreased by approximately **$179 million** from January 31, 2023, to October 31, 2023, primarily due to a reduction in cash and cash equivalents and other current assets. Total liabilities also decreased, mainly from a reduction in current liabilities like accounts payable and contract liabilities[19](index=19&type=chunk) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | (in thousands, except per share data) | Three Months Ended Oct 31, 2023 | Three Months Ended Oct 31, 2022 | Nine Months Ended Oct 31, 2023 | Nine Months Ended Oct 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $218,547 | $225,193 | $645,278 | $665,998 | | Gross profit | $153,009 | $154,796 | $442,461 | $443,761 | | Operating income | $26,718 | $21,678 | $27,978 | $23,686 | | Net income (loss) attributable to Verint Systems Inc. common shares | $7,412 | $(1,124) | $(5,693) | $(13,650) | | Diluted net income (loss) per common share | $0.12 | $(0.02) | $(0.09) | $(0.21) | - For the third quarter, revenue decreased by **3.0%** year-over-year, but operating income increased by **23.2%**. The company swung to a net income attributable to common shares of **$7.4 million** from a net loss of **$1.1 million** in the prior-year quarter[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (in thousands) | Nine Months Ended Oct 31, 2023 | Nine Months Ended Oct 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $81,679 | $68,611 | | Net cash used in investing activities | $(24,333) | $(37,476) | | Net cash used in financing activities | $(127,397) | $(134,341) | | **Net decrease in cash and equivalents** | **$(70,751)** | **$(106,716)** | - For the nine months ended October 31, 2023, cash from operations increased to **$81.7 million** from **$68.6 million** year-over-year. Significant uses of cash in financing activities included **$99.3 million** for stock repurchases and **$20.8 million** for preferred stock dividend payments[32](index=32&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company helps brands elevate customer experience (CX) and reduce costs through its open customer engagement platform, leveraging data and AI. It serves over **10,000 organizations** in **175 countries**, including over **85 of the Fortune 100**[35](index=35&type=chunk) | (in thousands) | Nine Months Ended Oct 31, 2023 | Nine Months Ended Oct 31, 2022 | | :--- | :--- | :--- | | **Recurring revenue** | | | | Bundled SaaS revenue | $184,770 | $161,005 | | Unbundled SaaS revenue | $161,470 | $152,066 | | Support revenue | $105,443 | $139,831 | | **Total recurring revenue** | **$488,555** | **$500,029** | | **Nonrecurring revenue** | | | | Perpetual revenue | $74,103 | $88,473 | | Professional services revenue | $82,620 | $77,496 | | **Total nonrecurring revenue** | **$156,723** | **$165,969** | | **Total revenue** | **$645,278** | **$665,998** | - Total remaining performance obligations (RPO), representing contracted revenue not yet recognized, were **$689.8 million** as of October 31, 2023, a decrease from **$727.0 million** as of January 31, 2023. Approximately **$430.4 million** is expected to be recognized within one year[62](index=62&type=chunk) - The company repurchased approximately **3,014,000 shares** of its common stock for **$99.3 million** during the nine months ended October 31, 2023, under its **$200 million** stock repurchase program authorized through January 2025[132](index=132&type=chunk)[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses how macroeconomic conditions impact sales cycles, highlighting the company's AI-powered platform strategy and Q3 2023 revenue decline offset by operating income growth and sufficient liquidity [Overview](index=49&type=section&id=Overview) - Global macroeconomic conditions, including geopolitical conflicts (Israel-Hamas war, Russia-Ukraine), inflation, and banking instability, have increased the length of sales cycles and impacted customer spending[203](index=203&type=chunk) - The company has significant operations in Israel. While some employees have been called for military reserve duty due to the Israel-Hamas war, it is not currently expected to have a material impact on business, though the risk remains if the conflict expands[205](index=205&type=chunk) - Verint is focused on helping organizations close the "Engagement Capacity Gap" with its AI-powered Customer Engagement Cloud Platform, addressing challenges from new workforce dynamics, expanding engagement channels, and limited budgets[210](index=210&type=chunk) - Key market trends benefiting Verint include the acceleration of digital transformation, the need to manage a changing and hybrid workforce (humans and bots), and elevated customer expectations for faster, more contextual service[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) | (in thousands) | Three Months Ended Oct 31, 2023 | Three Months Ended Oct 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Total revenue | $218,547 | $225,193 | (3)% | | Operating income | $26,718 | $21,678 | 23% | | Net income (loss) attributable to common shares | $7,412 | $(1,124) | N/A | | Revenue Category (in thousands) | Three Months Ended Oct 31, 2023 | Three Months Ended Oct 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Bundled SaaS revenue | $63,251 | $57,041 | 11% | | Unbundled SaaS revenue | $52,400 | $58,746 | (11)% | | Support revenue | $33,624 | $42,999 | (22)% | | Total recurring revenue | $161,117 | $174,222 | (8)% | | Total nonrecurring revenue | $57,430 | $50,971 | 13% | - The decrease in recurring revenue for Q3 was driven by a **$9.4 million** decline in support revenue as customers migrate to SaaS solutions. While total SaaS revenue was flat, bundled SaaS grew **11%** while unbundled SaaS declined **11%**, reflecting a shift in customer buying preference[232](index=232&type=chunk) - Selling, General and Administrative (SG&A) expenses decreased by **6%** in Q3 YoY, primarily due to lower stock-based compensation, reduced facility costs from office consolidation, and lower professional services expenses[256](index=256&type=chunk)[257](index=257&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) | (in thousands) | October 31, 2023 | January 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents, and short-term investments | $210,331 | $282,796 | | Total debt, including current portions | $410,461 | $408,908 | - Net cash provided by operating activities for the nine months ended Oct 31, 2023, was **$81.7 million**, an increase from **$68.6 million** in the prior year period[290](index=290&type=chunk)[291](index=291&type=chunk) - During the nine months ended Oct 31, 2023, the company used **$99.3 million** to repurchase **3.0 million shares** of common stock and paid **$20.8 million** in dividends on its preferred stock[296](index=296&type=chunk)[302](index=302&type=chunk) - On April 27, 2023, the company repaid the remaining **$100.0 million** outstanding on its Term Loan using proceeds from its Revolving Credit Facility[312](index=312&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on variable-rate debt and foreign currency volatility, while fixed-rate convertible notes mitigate some risk, and inflation poses a threat to costs and customer spending - The company is exposed to interest rate risk through its Credit Agreement. As of October 31, 2023, borrowings of **$100.0 million** under the Revolving Credit Facility had a variable interest rate of **6.94%**. A hypothetical **10%** change in interest rates is not expected to have a material impact[331](index=331&type=chunk) - The **$315.0 million** of **0.25%** convertible senior notes due 2026 have a fixed interest rate, thus they do not pose an interest rate risk to earnings, though their fair value fluctuates with market rates and the company's stock price[329](index=329&type=chunk) - Inflation is identified as a risk that could harm business by increasing costs (labor, sales, cloud hosting) and potentially reducing customer and partner spending[332](index=332&type=chunk) [Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of October 31, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of October 31, 2023[335](index=335&type=chunk) - No changes occurred during the three months ended October 31, 2023, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[336](index=336&type=chunk) Part II. Other Information [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 15 of the financial statements for details on legal proceedings, including the ForeSee acquisition litigation settlement and an ongoing indemnified matter - For details on legal proceedings, the report refers to Note 15, 'Commitments and Contingencies' in the financial statements[338](index=338&type=chunk) [Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2023, were reported - There have been no material changes to the Risk Factors described in the company's Annual Report on Form 10-K for the year ended January 31, 2023[339](index=339&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported stock repurchase activity for Q3 FY2024, including 1,018,161 shares repurchased in September, with **$78.0 million** remaining under the program - The company has a stock repurchase program authorized for up to **$200.0 million**, effective until January 31, 2025[341](index=341&type=chunk) | Period | Total Number Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | August 2023 | — | $— | — | | September 2023 | 1,018,161 | $24.53 | $77,970 | | October 2023 | — | $— | — | [Defaults Upon Senior Securities](index=69&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - The company reported no defaults upon senior securities[347](index=347&type=chunk) [Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - This section is not applicable to the company[348](index=348&type=chunk) [Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the third quarter - During the three months ended October 31, 2023, no director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement[349](index=349&type=chunk) [Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with this report include certifications from the CEO and CFO as required by the Sarbanes-Oxley Act of 2002[351](index=351&type=chunk)

Verint Systems Inc. (NASDAQ:VRNT) Q2 2024 Results Conference Call September 6, 2023 4:30 PM ET Company Participants Matthew Frankel - Investor Relations and Corporate Development Director Dan Bodner - CEO Grant Highlander - CFO Alan Roden - Chief Corporate Development Officer Conference Call Participants Ryan MacDonald - Needham & Company Peter Levine - Evercore ISI Mason Marin - Jefferies Good day, and thank you for standing by. Welcome to Verint Systems Inc. Q2 Fiscal '24 Earnings Conference Call. [Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY 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 or Organization) 175 Broadhollow Road Melville, New York 11747 For the quarterly period ended July 31, 2023 OR ☐ TRANSITIO ...

Verint Systems Inc. (NASDAQ:VRNT) Q1 2024 Earnings Conference Call June 7, 2023 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 Ryan MacDonald - Needham & Company Shaul Eyal - Cowen Samad Samana - Jefferies Peter Levine - Evercore Operator Good day, and thank you for standing by, and welcome to Verint Systems, Inc. Q1 Fiscal 2024 Earnings Confer ...

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