Verint(VRNT)2025-06-04 21:32Financial Data and Key Metrics Changes - The company reported a 6% year-over-year growth in Annual Recurring Revenue (ARR) for Q1, exceeding guidance for both revenue and diluted EPS [7][15] - Revenue for Q1 was 0.29, driven by the timing of two large unbundled SaaS deals [15][20] - The company expects to exit the year with approximately 354 million, now representing close to 50% of the company's subscription ARR [19][39] - The company continues to win large deals, including a 14 million TCV order from a healthcare company [9][10] 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 solutions [17][20] - The company maintains a total of 4 million seats under management, with some customers reducing agent numbers due to AI adoption [37][39] 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 solutions on existing infrastructures [8][12] - The strategy includes targeting large accounts to drive AI adoption and innovation, with a focus on proven AI outcomes reported by leading brands [47][72] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in customer conversations towards value and ROI, with a focus on achieving measurable results in less than six months [63][64] - The company expects continued momentum in AI adoption, with a target of double-digit free cash flow growth for the year [13][22] 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 [21][22] - The management highlighted the importance of customer success stories in accelerating AI adoption across the market [48][49] Q&A Session Summary Question: How does Verint differentiate in the AI space? - Management emphasized proven AI outcomes and the ability to layer AI on existing infrastructures as key differentiators [26][27] Question: Can you provide examples of successful upselling from smaller deals? - Management shared examples of customers increasing their AI consumption significantly after proving value, leading to larger deals [30][32] 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 seats remains stable, with AI driving growth [36][39] Question: What is the company's confidence in achieving ARR targets for the second half? - Management expressed confidence based on a strong pipeline and historical seasonality trends [54][56] Question: How is the macro environment affecting customer behavior? - Management indicated that customers are now more focused on immediate value and ROI rather than long-term projects [63][64] Question: What are the key metrics for AI ARR and retention? - Management highlighted that AI ARR is a key driver of growth, with net retention rates above 100% [60][61] Question: What bots are performing well and how is customer adoption progressing? - Management reported positive feedback on various bots, noting that some require behavioral changes for full adoption [84][86]