Verint(VRNT)2024-12-04 21:07Revenue Performance - Revenue for Q3 FYE 2025 was $224 million, representing a 3% year-over-year growth on a reported basis and 5% on a non-GAAP basis[2]. - Bundled SaaS revenue growth accelerated to 19% year-over-year, driven by strong demand for AI business outcomes[3]. - New SaaS ACV bookings for new deals, excluding cloud conversions, increased by 37% year-over-year in Q3[3]. - For the year ending January 31, 2025, the revenue outlook is $933 million +/- 2%, reflecting a 5% year-over-year growth[5]. - Total revenue for the three months ended October 31, 2024, was $224,193,000, a slight increase from $218,547,000 in the same period of 2023, representing a growth of 3%[17]. - Total revenue for the nine months ended October 31, 2024, was $141,151 thousand, compared to $139,555 thousand in 2023, indicating a slight growth[24]. - The company reported a constant currency period-over-period revenue growth of 2.0% for the three months ended October 31, 2024[33]. Profitability Metrics - Gross margin expanded approximately 70 basis points year-over-year in Q3, attributed to a shift towards recurring revenue[4]. - Gross profit for the three months ended October 31, 2024, was $158,627,000, compared to $153,009,000 in 2023, resulting in a gross margin of 70.8%, up from 70.0%[20]. - Net income attributable to Verint Systems Inc. was $28,716,000 for the three months ended October 31, 2024, compared to $12,612,000 in 2023, showing a significant increase of 128%[17]. - The company reported a diluted net income per share of $0.39 for the three months ended October 31, 2024, compared to $0.12 in 2023, marking a significant increase[17]. - GAAP net income for the three months ended October 31, 2024, was $24,716 thousand, compared to $7,412 thousand in 2023, representing a significant increase[24]. - Non-GAAP diluted net income per share for the three months ended October 31, 2024, was $0.54, down from $0.65 in 2023[24]. - Adjusted EBITDA for the three months ended October 31, 2024, was $53,468 thousand, down from $59,236 thousand in 2023, with a margin of 23.8%[26]. Expenses and Investments - Research and development expenses for the three months ended October 31, 2024, were $37,736,000, an increase from $32,084,000 in 2023, representing a growth of 18%[20]. - Selling, general and administrative expenses increased to $95,987,000 for the three months ended October 31, 2024, compared to $87,879,000 in 2023, reflecting an increase of 9%[20]. - Non-GAAP selling, general and administrative expenses for the three months ended October 31, 2024, were $80,299 thousand, representing 35.8% of non-GAAP revenue, compared to 33.5% in 2023[22]. - Cash used in investing activities was $74,007,000, compared to $24,333,000 in the previous period, indicating a significant increase in investment outflows[37]. Cash Flow and Debt - Net cash provided by operating activities increased to $98,227,000 from $81,679,000, an increase of about 20%[37]. - Gross debt as of October 31, 2024, was $415,000 thousand, with net debt of $230,730 thousand[26]. - The company reported a net decrease in cash and equivalents of $59,360,000 for the period[37]. - Cash and cash equivalents at the end of the period were $183,309,000, down from $211,410,000, a decrease of about 13%[37]. Guidance and Future Outlook - The company expects to maintain its full-year guidance for revenue and non-GAAP diluted EPS[4]. - An investor day is scheduled for January 14, 2025, to showcase AI differentiation and review financial models[5]. - The non-GAAP effective income tax rate for the year ending January 31, 2025, is approximately 11%, up from 8% for the year ended January 31, 2024[52]. SaaS and Recurring Revenue - SaaS Annual Recurring Revenue (ARR) increased by 11% year-over-year[4]. - SaaS revenue for the three months ended October 31, 2024, was $148,662,000, compared to $115,651,000 in 2023, indicating a growth of 28%[19]. - Recurring revenue for the same period was $179,858,000, up from $161,117,000, indicating a growth of 11% year-over-year[20]. - Recurring revenue primarily consists of SaaS revenue, optional managed services revenue, and post-contract support, indicating a stable revenue stream[53]. Financial Definitions - SaaS Annual Recurring Revenue (SaaS ARR) is used to identify the annual recurring value of customer contracts at the end of a reporting period, reflecting the growth of the recurring business as the company shifts to SaaS[57]. - Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other excluded expenses, providing a clearer view of operating performance[59]. - Net Debt is calculated as the sum of long-term and short-term debt minus cash and cash equivalents, aiding in the evaluation of capital structure and financial leverage[60]. - Free Cash Flow is defined as GAAP cash provided by operating activities less capital expenditures, indicating the company's ability to generate cash after investments[61].