Verint(US:VRNT)2021-06-10 03:00Financial Data and Key Metrics Changes - Non-GAAP revenue for Q1 2022 was reported at $202 million, with adjusted EBITDA at $49 million and non-GAAP diluted EPS at $0.44 [30][31] - Non-GAAP cloud revenue increased by 39% year-over-year, with new PLE bookings growing by 28% year-over-year [9][31] - Recurring revenue as a percentage of software revenue increased to 83%, reflecting a 100 basis point year-over-year improvement [32] Business Line Data and Key Metrics Changes - New SaaS ACV growth was reported at 58% year-over-year, indicating strong demand for cloud solutions [32] - More than 50% of new software bookings were from SaaS for the first time, with expectations to approach 60% for the year [48] Market Data and Key Metrics Changes - RPO (Remaining Performance Obligations) was reported at $619 million, up 30% year-over-year, indicating multi-year commitments from cloud customers [32] - The company noted a significant opportunity for cloud penetration, with existing customers being less than 25% penetrated with the cloud platform [49] Company Strategy and Development Direction - The company aims to assist brands in navigating digital transformation through an open cloud platform that connects work, data, and experience across the enterprise [11] - The strategy includes winning new customers and capturing white space within the existing customer base, with a focus on eliminating silos and enhancing customer experience [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the year and raised the annual outlook for PLE bookings growth to more than 10% [33] - The company anticipates continued cloud momentum and expects revenue to increase sequentially in Q2, with a forecast of $205 million to $210 million [40] Other Important Information - The company completed several capital market transactions to strengthen its balance sheet, including share repurchases and debt repayments [36][38] - The company has approximately $400 million in cash and net debt of about $50 million following the spin-off of its Cyber Intelligence business [38] Q&A Session Summary Question: What is driving customers to move to the cloud with Verint? - Management indicated that digital transformation and COVID-19 have accelerated the shift to cloud solutions, providing better visibility and efficiency tools for managing the workforce [44] Question: What percentage of the customer base has moved to the cloud? - Management noted that the majority of customers are moving to the cloud, with over 50% of PLE bookings coming from SaaS, and an average penetration of less than 25% among top customers [48] Question: How is market demand trending? - Management reported strong growth in bookings and a shift from perpetual licenses to cloud solutions, with expectations for revenue growth to accelerate [62] Question: What feedback has been received on the new real-time work solutions? - Positive feedback was received from customers and partners, indicating strong interest in AI-driven decision-making tools that enhance workforce productivity [55][56] Question: What are the dynamics affecting bundled and unbundled SaaS? - Management explained that the dynamics are influenced by customer preferences for flexibility in hosting services, with both models expected to work together [79][80]