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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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 quarterly period ended April 30, 2023 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 ...

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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, 2023 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. (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: | Title ...

Verint Systems Inc. (NASDAQ:VRNT) Q3 2023 Earnings Conference Call December 7, 2022 4:30 PM ET Company Participants Matthew Frankel - Investor Relations and Corporate Development Dan Bodner - Chief Executive Officer Doug Robinson - Chief Financial Officer Conference Call Participants Shaul Eyal - Cowen Ryan MacDonald - Needham Peter Levine - Evercore ISI Samad Samana - Jefferies Operator Good day and thank you for standing by. Welcome to the Verint Third Quarter Conference Call. At this time, all participan ...