Verint(US:VRNT)2024-09-04 22:34Financial 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].