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Verint Systems Inc (VRNT)
NASDAQ:VRNT
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Verint Systems
(NASDAQ:VRNT)
71Outperform
Positive Factors
Customer Adoption
Verint Systems' hybrid cloud model is accelerating customer adoption, with AI deployment expected to power growth.
Market Position
Verint has a strong position in the market for selling applications to customers who prefer a Hybrid Cloud contact center environment.
SaaS Revenue Growth
AI momentum drove a year-over-year Bundled SaaS revenue increase of 23% to $81M, which came ahead of guidance.
Negative Factors
Declining Seat Counts
Management noted that seat counts are declining on contract renewals.
Revenue Miss
Verint Systems reported non-GAAP revenue of $253M, missing the consensus $277M estimate, down 4.5% year-over-year.
Unbundled Revenue Challenges
Verint reported Q4 earnings that missed estimates and guidance due to a few large unbundled deals slipping into FY26.
Verint Systems (VRNT) vs. S&P 500 (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)629.97K
Price to Earnings (P/E)22.8
Beta (1Y)1.81
Revenue Growth4.45%
EPS Growth3058.09%
CountryUS
Employees3,700
SectorTechnology
Sector Strength46
IndustrySoftware
Share Statistics
EPS (TTM)0.95
Shares Outstanding62,284,687
10 Day Avg. Volume868,421
30 Day Avg. Volume629,967
Financial Highlights & Ratios
PEG Ratio0.00745
Price to Book (P/B)N/A
Price to Sales (P/S)1.45
Price to Cash Flow (P/CF)9.90
P/FCF Ratio12.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.00Price Target Upside54.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Verint Systems Business Overview & Revenue Model
Company DescriptionVerint Systems Inc. provides customer engagement solutions worldwide. It offers various applications for use in Forecasting and Scheduling, which understands the work needed to meet and exceed customer expectations; Quality and Compliance that uses automation and analytics for customer interactions for attended and self-service channels; Interaction Insights, which extracts insights from structured and unstructured customer interactions and activities; Real-Time Work that supports in-the-moment workforce activities; Engagement Channels, an application for messaging, social, chat, email, and interactive voice response; Conversational AI, an intelligent virtual assistant application to enable human-like conversations across every channel; Engagement Orchestration, an application that improves employee efficiency, time to resolution, compliance, and customer satisfaction with workflows; Knowledge Management, which help agents to deliver stellar service with tools. The company also provides Experience Management application which collect and analyze customer experience data, as well as customer engagement cloud platform services. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.
How the Company Makes MoneyVerint Systems makes money primarily through the sale of its software products and associated services. The company's revenue model is centered around software licenses, cloud-based subscription services, and professional services, including consulting, implementation, and training. Key revenue streams include customer engagement software solutions that assist businesses in optimizing customer interactions, and security and intelligence solutions that provide organizations with actionable insights to improve operational efficiency and security. Verint's earnings are also supported by strategic partnerships with technology and service providers, which help expand its market reach and deliver integrated solutions to clients across various industries.
Verint Systems Financial Statement Overview
Summary
Verint Systems shows strong profitability and cash flow efficiency with improved net profit margins and return on equity. However, challenges include modest revenue growth and a lower equity ratio, indicating reliance on liabilities.Income Statement
Verint Systems shows a stable gross profit margin of approximately 70% in the TTM, with a significant net profit margin improvement from 4.2% annually to 8.5% TTM. The revenue growth rate from the last annual report to TTM is modest at 1.1%. EBIT and EBITDA margins are healthy, indicating operational efficiency. However, historical revenue decline from 2020 impacts the overall growth narrative.75
Positive
Balance Sheet
The company maintains a manageable debt-to-equity ratio of 1.01 in TTM, reflecting moderate leverage. The return on equity has improved to 17.9% TTM from just 3% during the previous annual period, showing enhanced profitability. However, the equity ratio stands at a lower 19.4%, indicating a higher reliance on liabilities.65
Positive
Cash Flow
Verint Systems demonstrates strong cash flow management with a 19.5% free cash flow growth rate in the latest TTM period. The operating cash flow to net income ratio is robust at 2.14, showcasing efficient cash generation relative to income. The free cash flow to net income ratio also indicates solid performance at 1.91.77
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 920.75M | 910.39M | 902.25M | 874.51M | 1.27B | 1.30B | Gross Profit |
| 644.38M | 633.27M | 607.18M | 575.94M | 858.11M | 839.87M | EBIT |
| 115.74M | 72.24M | 57.36M | 46.84M | 56.20M | 87.86M | EBITDA |
| 145.86M | 143.09M | 130.60M | 124.26M | 79.15M | 181.18M | Net Income Common Stockholders |
| 78.19M | 38.61M | 14.90M | 14.41M | -107.00K | 28.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 210.33M | 242.09M | 282.80M | 359.57M | 714.86M | 399.36M | Total Assets |
| 2.13B | 2.23B | 2.31B | 2.36B | 3.26B | 3.02B | Total Debt |
| 441.93M | 449.64M | 457.62M | 459.96M | 869.38M | 927.42M | Net Debt |
| 232.28M | 208.24M | 175.52M | 101.16M | 205.54M | 548.27M | Total Liabilities |
| 892.95M | 957.44M | 1.02B | 970.21M | 1.77B | 1.77B | Stockholders Equity |
| 1.24B | 1.27B | 1.29B | 1.39B | 1.47B | 1.23B |
| Cash Flow | Free Cash Flow | ||||
| 149.23M | 124.91M | 104.27M | 101.08M | 213.52M | 185.65M | Operating Cash Flow |
| 167.19M | 150.64M | 139.82M | 125.60M | 253.85M | 237.90M | Investing Cash Flow |
| -87.05M | -37.38M | -56.58M | -35.90M | -37.24M | -125.80M | Financing Cash Flow |
| -110.34M | -153.35M | -157.91M | -430.12M | 71.93M | -111.32M |
Verint Systems Technical Analysis
Negative
18.73
Price Trends
23.86
Negative
24.93
Negative
27.26
Negative
Market Momentum
-0.89
Positive
26.64
Positive
31.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRNT, the sentiment is Negative. The current price of 18.73 is below the 20-day moving average (MA) of 21.75, below the 50-day MA of 23.86, and below the 200-day MA of 27.26, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 26.64 is Positive, neither overbought nor oversold. The STOCH value of 31.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRNT.
Verint Systems Risk Analysis
Verint Systems disclosed 39 risk factors in its most recent earnings report. Verint Systems reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verint Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.00B | 32.27 | 29.75% | ― | 73.72% | ― | |
73 Outperform | $10.14B | 23.49 | 12.77% | ― | 15.05% | 31.05% | |
72 Outperform | $10.73B | 49.97 | 75.64% | ― | 12.23% | 24.66% | |
71 Outperform | $1.35B | 22.78 | 6.35% | ― | 4.45% | 3058.09% | |
60 Neutral | $2.50B | ― | 16.58% | ― | 8.99% | 63.84% | |
58 Neutral | $21.67B | 10.60 | -18.43% | 2.42% | 4.66% | -24.45% | |
57 Neutral | $1.56B | ― | -24.41% | ― | -1.55% | -250.10% |
* Technology Sector Average
Performance Comparison
VRNT
Verint Systems
18.73
-13.74
-42.32%
MANH
Manhattan Associates
174.82
-72.85
-29.41%
NTCT
Netscout Systems
21.74
-0.07
-0.32%
NICE
NICE
158.83
-95.78
-37.62%
RNG
RingCentral
27.28
-6.46
-19.15%
EVER
EverQuote
28.09
8.59
44.05%
Verint Systems Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -13.37% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Positive
Verint Systems Inc. exhibited strong performance with ARR and record SaaS ACV bookings growth. The company's AI solutions are delivering significant business outcomes, and they are raising their ARR outlook. However, there were challenges in meeting revenue expectations due to unbundled SaaS revenue shortfalls caused by slipped deals. Despite these challenges, the positive aspects significantly outweigh the negatives.Highlights
ARR Growth Exceeds Expectations
Annual Recurring Revenue (ARR) growth for Q4 was 5%, exceeding the guidance of 4%. The company has raised its ARR outlook for Q4 2026 from $760 million to $768 million, reflecting an 8% growth.
Record SaaS ACV Bookings
The company achieved record SaaS ACV bookings for new deals, with a 30% year-over-year growth. This follows strong year-over-year bookings growth throughout the year, indicating a robust demand for Verint's AI solutions.
AI Momentum and Customer Success
Verint's AI solutions are delivering strong business outcomes, with examples including a healthcare insurer reducing average call time by 30 seconds, equating to $70 million in agent capacity savings, and a telecom company achieving a 5% increase in agent productivity, equating to $45 million in agent capacity.
Strong Cash Generation and Contribution
Cash generation and cash contribution exceeded guidance, with fiscal 2025 cash generation coming in $8 million ahead and cash contribution $16 million ahead of guidance.
Lowlights
Unbundled SaaS Revenue Shortfall
Revenue came in at $254 million versus a guidance of $277 million, attributed to a shortfall in unbundled SaaS revenue due to a few new deals not materializing in the quarter.
Slipped Deals Affect Revenue
A couple of large unbundled deals from existing customers did not close as expected, impacting revenue for the quarter.
Company Guidance
In the Verint Systems Inc. fourth quarter 2025 earnings call, significant guidance was provided, emphasizing strong AI momentum and ARR growth trends. Verint reported a 5% ARR growth, surpassing their guidance of 4%, with expectations for continued acceleration into fiscal 2026, revising the ARR outlook from $760 million to $768 million, reflecting an 8% growth. The call highlighted their success in AI deployments, with notable customer-reported outcomes like a healthcare insurer achieving a 30-second reduction in average call time and a telecom company experiencing a 5% increase in agent productivity. Additionally, Verint noted a record in SaaS ACV bookings with a 30% year-over-year growth, driven by strong AI outcomes and customer success stories. For fiscal 2026, Verint is targeting $960 million in revenue, a gross margin around 73%, and a non-GAAP diluted EPS of $2.93, with expectations of continued ARR growth due to their differentiated AI solutions and hybrid cloud approach.Verint Systems Corporate Events
Business Operations and StrategyFinancial Disclosures
Verint Systems Highlights AI Strategy and Subscription Growth
Positive
Jan 14, 2025
On January 14, 2025, Verint Systems Inc. announced key highlights from its Investor Day event, focusing on their leadership in the CX Automation category and AI monetization strategy. The company discussed its transition to a subscription model, with 80% of its revenue now coming from subscription offerings. Verint projected growth in its Annual Recurring Revenue (ARR) and free cash flow for fiscal year 2026, indicating positive future prospects and potential acceleration in demand for its CX Automation solutions.
Business Operations and StrategyFinancial Disclosures
Verint Systems Plans Investor Day on AI and CX
Positive
Dec 20, 2024
Verint Systems Inc. announced the details of its upcoming Investor Day scheduled for January 14, 2025, where management will discuss the evolution of the customer experience automation market, AI advancements, and financial guidance for the upcoming fiscal year. The event underscores Verint’s commitment to leveraging AI to drive business outcomes and highlights their strategic positioning in the CX automation industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.