Verint(VRNT) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 FYE 2024 was $265 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 $911 million on a non-GAAP basis[1] - Diluted EPS for Q4 FYE 2024 was $0.37 on a GAAP basis and $1.07 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 $236,247,000 in the same period of 2023[17] - Net income for the year ended January 31, 2024, was $39,634 thousand, significantly up from $15,659 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 $12,948,000 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 $7,748,000 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 $685,537,000 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 $131,134,000 in the same period of 2023[19] - SaaS Annual Recurring Revenue (ARR) as of January 31, 2024, was $534,438,000, an increase from $497,982,000 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 $163,416,000 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, representing a 30.5% increase from $67,968,000 in 2023[35] - Non-GAAP total revenue for the year ended January 31, 2024, was $911.5 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, 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 $9,856,000 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 $180 million[3] - Net cash provided by operating activities increased to $150,642 thousand in 2024 from $139,816 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 $171,464,000 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 $2,226,424 thousand in 2024 from $2,313,601 thousand in 2023, a decline of approximately 3.75%[50] - Total current liabilities decreased to $418,171 thousand in 2024 from $471,051 thousand in 2023, a reduction of 11.2%[50] - Total stockholders' equity decreased to $832,666 thousand in 2024 from $858,149 thousand in 2023, a decline of 3.0%[50]