Verint(VRNT)2025-06-04 21:30Financial Data and Key Metrics Changes - The company reported a strong first quarter with an ARR growth of 6% year over year, exceeding guidance for revenue and diluted EPS [6][13] - Revenue for Q1 was 0.29, driven by the timing of two large unbundled SaaS deals [13][18] - The company expects to exit the year with approximately 354 million, now representing close to 50% of subscription ARR [17][18] - The company won significant deals, including a 14 million TCV order from a healthcare company, showcasing strong demand for AI solutions [8][9] Market Data and Key Metrics Changes - The rolling four-quarter SaaS pipeline has increased by more than 30% year over year, indicating strong demand for AI [15][19] - The company maintains a total of 4 million seats under management, with some customers reducing agent numbers due to AI adoption while others expand [36][38] Company Strategy and Development Direction - The company focuses on transforming AI technology into tangible business outcomes, emphasizing a hybrid cloud model that allows customers to layer AI on existing infrastructures [7][10] - The strategy includes starting small with AI deployments, allowing customers to scale once they prove value [27][30] - The company aims to maintain its differentiation through strong customer relationships, a platformatic view of AI integration, and an open AI model that incorporates various AI technologies [75][78] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in customer focus towards value and ROI, with less interest in long-term projects and more emphasis on immediate results [64][66] - The company expects continued momentum in AI adoption, with a target of double-digit free cash flow growth alongside 8% ARR growth [12][21] Other Important Information - The company has increased its revolver to $500 million and extended the term to 2030, which can be used to pay down existing convertible notes [20] - The management highlighted the importance of customer success stories in driving AI adoption and plans to showcase these at an upcoming customer conference [47][48] Q&A Session Summary Question: How does Verint differentiate itself in the AI space? - Management emphasized proven AI outcomes and the ability to layer AI on existing infrastructure as key differentiators [25][26] Question: Can you provide examples of successful smaller deals leading to larger contracts? - Management shared examples of customers increasing their AI consumption significantly after initial small deployments, leading to larger ARR contributions [29][30] Question: What is the current state of AI voice chatbot adoption? - Management noted that while some customers are reducing agent numbers, the overall number of agents remains stable, with AI driving significant growth in ARR [36][38] Question: What is the outlook for the second half of the year regarding ARR? - Management expressed confidence in achieving the 8% ARR growth target, supported by a strong pipeline and seasonal trends [54][56] Question: How is the company addressing customer concerns about AI adoption? - Management highlighted the importance of demonstrating value quickly and encouraging customers to move to production rather than remaining in lab experiments [66][90]