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Verint(VRNT) - 2024 Q4 - Annual Results
VRNTVerint(VRNT)2024-03-27 20:09

Financial Performance - Revenue for Q4 FYE 2024 was 265million,representinga12265 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 911milliononanon−GAAPbasis[1]−DilutedEPSforQ4FYE2024was911 million on a non-GAAP basis[1] - Diluted EPS for Q4 FYE 2024 was 0.37 on a GAAP basis and 1.07onanon−GAAPbasis[1]−TotalrevenueforthethreemonthsendedJanuary31,2024,was1.07 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 236,247,000inthesameperiodof2023[17]−NetincomefortheyearendedJanuary31,2024,was236,247,000 in the same period of 2023[17] - Net income for the year ended January 31, 2024, was 39,634 thousand, significantly up from 15,659thousandin2023,representinganincreaseof153.515,659 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 12,948,000in2023,representingasignificantincreaseof121.512,948,000 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 7,748,000in2023,indicatingasignificantincreaseof203.57,748,000 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 685,537,000in2023,reflectingagrowthof2.1685,537,000 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 131,134,000inthesameperiodof2023[19]−SaaSAnnualRecurringRevenue(ARR)asofJanuary31,2024,was131,134,000 in the same period of 2023[19] - SaaS Annual Recurring Revenue (ARR) as of January 31, 2024, was 534,438,000, an increase from 497,982,000in2023,reflectingagrowthof7.3497,982,000 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 163,416,000andamarginof69.2163,416,000 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,representinga30.588,700,000, representing a 30.5% increase from 67,968,000 in 2023[35] - Non-GAAP total revenue for the year ended January 31, 2024, was 911.5million,comparedto911.5 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,whichis40.9108,383,000, 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 9,856,000forthethreemonthsendedJanuary31,2024,comparedtoabenefitof9,856,000 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 180million[3]−Netcashprovidedbyoperatingactivitiesincreasedto180 million[3] - Net cash provided by operating activities increased to 150,642 thousand in 2024 from 139,816thousandin2023,ariseof7.6139,816 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 171,464,000asofJanuary31,2024,upfrom171,464,000 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 2,226,424thousandin2024from2,226,424 thousand in 2024 from 2,313,601 thousand in 2023, a decline of approximately 3.75%[50] - Total current liabilities decreased to 418,171thousandin2024from418,171 thousand in 2024 from 471,051 thousand in 2023, a reduction of 11.2%[50] - Total stockholders' equity decreased to 832,666thousandin2024from832,666 thousand in 2024 from 858,149 thousand in 2023, a decline of 3.0%[50]