Verint(VRNT)2024-12-04 21:58Financial Performance - Total revenue for the three months ended October 31, 2024, was $224.193 million, a 2.5% increase from $218.547 million in the same period of 2023[25]. - Recurring revenue for the same period was $179.858 million, up 11.6% from $161.117 million year-over-year[25]. - Net income attributable to Verint Systems Inc. for the three months ended October 31, 2024, was $28.716 million, compared to $12.612 million in the same period of 2023, representing a 127.6% increase[25]. - Gross profit for the three months ended October 31, 2024, was $158.627 million, an increase from $153.009 million in the same period of 2023[25]. - Operating income for the three months ended October 31, 2024, was $21.748 million, down from $26.718 million in the same period of 2023[25]. - Net income for the nine months ended October 31, 2023, was $50,119,000, compared to $10,711,000 for the same period in 2022, representing a significant increase[37]. - Total revenue for the nine months ended October 31, 2024, was $655.640 million, an increase from $645.278 million in the same period of 2023, representing a growth of 0.2%[63]. - Recurring revenue for the nine months ended October 31, 2024, was $516.615 million, compared to $488.555 million in 2023, reflecting a year-over-year increase of 5.8%[63]. - For the three months ended October 31, 2024, net income attributable to Verint Systems Inc. was $28,716,000, compared to $12,612,000 for the same period in 2023, representing a 127% increase[72]. - For the nine months ended October 31, 2024, net income attributable to Verint Systems Inc. was $49,488,000, compared to $9,907,000 for the same period in 2023, indicating a significant increase[72]. Assets and Liabilities - Total assets increased to $2,248.3 million as of October 31, 2024, compared to $2,226.4 million on January 31, 2024, reflecting a growth of 0.98%[21]. - Cash and cash equivalents decreased to $182.8 million from $241.4 million, a decline of 24.2%[21]. - Accounts receivable net of allowance for credit losses increased to $152.9 million, up from $190.5 million, indicating a decrease of 19.8%[21]. - Total current liabilities decreased to $387.0 million from $418.2 million, a reduction of 7.4%[21]. - Long-term debt slightly increased to $412.2 million from $411.0 million, reflecting a growth of 0.3%[21]. - Stockholders' equity rose to $881.8 million from $832.7 million, an increase of 5.9%[21]. - Retained earnings improved to $33.1 million from a deficit of $6.7 million, indicating a significant turnaround[21]. - Contract assets increased to $94.0 million from $66.9 million, a growth of 40.6%[21]. - The company reported a decrease in contract liabilities to $230.1 million from $254.4 million, a decline of 9.5%[21]. - Goodwill increased to $1,404.8 million from $1,352.7 million, reflecting a growth of 3.9%[21]. - As of October 31, 2023, total stockholders' equity was $805,365,000, down from $826,048,000 at the end of the previous quarter[33]. - Contract liabilities as of October 31, 2024, were $230.145 million, down from $254.437 million as of January 31, 2024, a decrease of 9.5%[65]. - Remaining performance obligations totaled $681.051 million as of October 31, 2024, compared to $744.302 million as of January 31, 2024, reflecting a decline of 8.5%[69]. Expenses - Research and development expenses for the three months ended October 31, 2024, increased to $37.736 million from $32.084 million year-over-year, a 17.5% increase[25]. - Selling, general and administrative expenses rose to $95.987 million for the three months ended October 31, 2024, compared to $87.879 million in the same period of 2023, a 9.4% increase[25]. - The company reported a comprehensive income of $31.937 million for the three months ended October 31, 2024, compared to a loss of $11.047 million in the same period of 2023[27]. - The company incurred a total interest expense of $1.865 million for borrowings under the Credit Agreement for the three months ended October 31, 2024[136]. - For the nine months ended October 31, 2024, the company incurred total interest expense of $5.727 million on borrowings under the Credit Agreement[136]. Stock and Dividends - The company declared dividends on preferred stock amounting to $4 million for the three months ended October 31, 2024, compared to $5.2 million in the same period of 2023[25]. - Preferred stock dividend payments amounted to $20,080,000, consistent with the previous year's payment of $20,800,000[37]. - The company did not declare or pay any cash dividends on common stock during the nine months ended October 31, 2024, due to restrictions under the terms of its Credit Agreement[162]. - During the nine months ended October 31, 2024, the company repurchased approximately 1,701,000 shares of common stock for a cost of $52.9 million under the prior stock repurchase program[168]. - The company announced a new stock repurchase program on September 4, 2024, allowing for the repurchase of shares not to exceed $200.0 million during the period from August 29, 2024, until August 29, 2026[167]. Acquisitions and Investments - The company acquired the assets of Cogito Corporation for a total purchase price of $52.07 million, which included $38.2 million in cash and $13.9 million in contingent consideration[83]. - The acquisition of Cogito resulted in the recognition of $28.9 million in goodwill, attributed to synergies in products and technologies[85]. - The company completed several acquisitions in 2024, including an AI-powered analytics company and a provider of cloud-based callback solutions, with total goodwill recognized from these transactions amounting to $8.3 million and $3.2 million respectively[91][94]. - The company completed the acquisition of a workforce scheduling automation solutions provider, resulting in increases to goodwill and intangible assets, but it was not material to the financial statements[97]. - The company invested approximately $1.7 million in a privately-held company through three SAFE investments made in March 2023, July 2023, and January 2024[204]. - The company completed the acquisition of the previously mentioned privately-held company, consolidating its results of operations into the financial statements as of April 30, 2024[204]. Tax and Compliance - For the nine months ended October 31, 2024, the company recorded a pretax income of $51.7 million with an income tax provision of $1.5 million, resulting in an effective tax rate of 3.0%[181]. - In comparison, for the nine months ended October 31, 2023, the company had a pretax income of $25.5 million and an income tax provision of $14.8 million, leading to an effective tax rate of 58.0%[182]. - As of October 31, 2024, the company had unrecognized income tax benefits amounting to $75.4 million, which could impact the effective income tax rate if recognized[184]. - The company anticipates a potential decrease of approximately $1.9 million in unrecognized income tax benefits over the next twelve months due to settlements of tax audits or lapses of statutes of limitation[186]. - The OECD Pillar 2 guidelines, which propose a global minimum tax of 15%, are being monitored by the company for potential impacts on its tax rate starting in 2024[187]. Financial Instruments and Risks - The primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk[209]. - The total derivative liabilities related to foreign currency forward contracts amounted to $77,000[207].