Verint(US:VRNT)2021-09-10 05:32Financial Data and Key Metrics Changes - The company reported strong second-quarter results with revenues and diluted EPS exceeding expectations, leading to an increase in annual guidance for both metrics [9][20] - Non-GAAP cloud revenue grew by 44% year-over-year, while total non-GAAP revenue increased by 5% year-over-year [11][26] - New PLE bookings saw a 22% year-over-year growth, with SaaS contributing to over half of the software bookings [25][20] Business Line Data and Key Metrics Changes - New PLE bookings from SaaS increased to 53% in Q2, up from 51% in Q1, indicating a continued shift towards cloud solutions [10][20] - The company achieved 20 SaaS deals over $1 million TCV in Q2, a 100% increase year-over-year [10][20] - The remaining performance obligations (RPO) increased by 29% year-over-year, reflecting strong future revenue potential [27] Market Data and Key Metrics Changes - The company noted a significant increase in cloud deal closures compared to the previous year, with improved close rates and win ratios [36] - The market is shifting towards digital engagement, with increasing demand for messaging and digital channels, as traditional telephony interactions remain flat [40][62] Company Strategy and Development Direction - The company is focused on enhancing its open cloud platform, which is designed to integrate seamlessly with existing enterprise ecosystems [12][14] - The acquisition of Conversocial aims to expand the functionality of the cloud platform, particularly in digital messaging [39][76] - The company anticipates continued growth in cloud adoption, with expectations for revenue growth to accelerate as it crosses the midpoint of its cloud transition [21][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve accelerated revenue growth, supported by strong first-half results and a robust pipeline [22][56] - The company is navigating a tight labor market but has successfully hired talent globally, maintaining operational stability [90][93] - Management highlighted the importance of providing flexible solutions to customers, allowing them to innovate without being constrained by legacy systems [47][72] Other Important Information - The company raised its annual guidance for new PLE bookings growth to 15% and cloud revenue growth to 35% [20][28] - The Conversocial acquisition is expected to contribute approximately $6 million in revenue for the remainder of the year, with no impact on EPS [74] Q&A Session Summary Question: Are pipelines more predictable today versus where we were when we entered the year? - Management indicated that while there was a large pipeline last year, the current year has seen better close rates and a higher number of cloud deals [36] Question: Can you discuss the strategic rationale behind the Conversocial acquisition? - The acquisition aims to enhance the cloud platform's functionality, allowing customers to utilize messaging applications seamlessly [39] Question: What type of up-sell or cross-sell is generally seen when customers move to the cloud? - Customers often convert existing solutions to the cloud while also expanding their use of new cloud solutions, leading to strong renewal rates [46] Question: How much of the installed base has moved to true cloud contact center vendors? - A significant portion of customers has moved to the cloud, with many decoupling decisions between applications and infrastructure [68] Question: What is the expected impact of the tight labor market on the financial model? - While the labor market is challenging, the company has managed to hire effectively and does not anticipate significant impacts on the cost structure [90][93]