NASDAQ$VRNT

Verint Systems Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Verint's first quarter results exceeded guidance, demonstrating strength across key cloud metrics and favorable shift to SaaS bookings.

Verint announced strong first quarter results, exceeding guidance with significant cloud momentum. The company reported an 8.5% year-over-year increase in GAAP revenue and raised its FYE 2023 non-GAAP cloud revenue growth guidance to 32-34%.

  • Cloud revenue increased 38% year-over-year.
  • Non-GAAP revenue and diluted EPS were ahead of guidance.
  • 58% of New PLE bookings came from SaaS, up from 51% in the prior year.
  • Operating cash flow increased 43% year-over-year to $54 million.

Headline financials

Total Revenue

$219M

Previous: $202M+8.6%
EPS (adj)

$0.52

Previous: $0.44+18.2%
Capital Expenditures

$5.22M

Previous: $4.37M+19.6%
Free Cash Flow

$48.7M

Previous: $25.3M+92.2%
Net Income

$574K

Previous: $1.09M-47.5%
Operating Income

$498.00

Previous: $4.44M-100.0%
Gross Profit

$141M

Previous: $129M+9.8%
Cash & Equivalents

$285M

Previous: $359M-20.7%
Total Assets

$2.2B

Previous: $2.7B-18.5%
Stock-Based Comp

$18.4M

Previous: $16.4M+11.9%

Revenue & EPS history

Verint · Revenue · Quarterly

$219M

Q1 2023+8.6%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Verint · $161M total across 1 segment · Q3 2024

  • Recurring Revenue
    $161M-7.5%

Forward guidance

Verint anticipates continued cloud momentum and has raised its annual guidance for cloud revenue growth to a range of 32% to 34%.

Tailwinds

  • Revenue: $940 million +/- 2%, reflecting 7% year-over-year growth
  • Cloud Revenue Growth: 32% to 34% year-over-year
  • Diluted EPS: $2.50 at the midpoint of our revenue guidance, reflecting 10% year-over-year growth
  • Expect our cloud momentum to continue
  • Focus on helping brands close the engagement capacity gap with our highly differentiated customer engagement cloud platform

Headwinds

  • Amortization of intangible assets of approximately $10 million for the three months ending July 31, 2022
  • Revenue adjustments are expected to be between approximately $0 million and $1 million, for the three months ending July 31, 2022
  • Stock-based compensation expenses are expected to be between approximately $25 million and $29 million for the three months ending July 31, 2022
  • Costs associated with modifying our workplace following the spin-off of our former cyber intelligence business and in response to our decision to move to a hybrid work environment, including assumed lease terminations and abandonments, IT infrastructure costs, and other charges are expected to be between approximately $7 million and $9 million, for the three months ending July 31, 2022.
  • Our non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports

Historical avg

+1.2%

Avg return

Earnings day

-4.3%

Avg return

5 days after

+0.4%

Avg return

30 days after

59%

37 / 63 earnings

Positive

+31.6%

Q3 2025

Best reaction

-20.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+0.3%-0.1%-0.4%
Q1 2026+2.5%+4.8%+17.1%
Q4 2025-13.4%-17.5%-15.6%
Q3 2025+31.6%
Q2 2025-12.1%
Q1 2025+21.8%
Q4 2024+7.1%
Q3 2024+17.9%
Q2 2024-20.0%
Q1 2024+0.3%
Q4 2023-3.0%
Q3 2023+0.6%
Q2 2023-7.5%
Q1 2023-4.5%
Q4 2022+1.3%
Q3 2022+2.5%
Q2 2022-2.9%
Q1 2022-2.2%
Q4 2021+1.4%
Q3 2021+5.2%
Q2 2021+7.6%
Q1 2021-11.8%
Q4 2020-14.6%
Q3 2020+7.4%
Q2 2020-12.3%
Q1 2020-1.1%
Q4 2019+13.9%
Q3 2019+3.9%
Q2 2019+7.4%
Q1 2019+0.2%
Q4 2018+13.1%
Q3 2018-6.6%
Q2 2018+2.4%
Q1 2018+1.9%
Q4 2017+8.8%
Q3 2017-9.8%
Q2 2017+8.4%
Q1 2017+7.4%
Q4 2016-3.9%
Q3 2016-14.7%
Q2 2016-6.3%
Q1 2016-2.1%
Q4 2015+5.0%
Q3 2015-1.7%
Q2 2015+7.5%
Q1 2015+10.4%
Q4 2014+8.1%
Q3 2014+0.6%
Q2 2014+8.9%
Q1 2014+2.1%
Q4 2013+4.3%
Q3 2013-1.0%
Q2 2013+2.7%
Q1 2012+1.7%
Q1 2013+1.7%
Q4 2010-3.3%
Q1 2011-3.3%
Q4 2012-3.3%
Q3 2011+3.5%
Q3 2012+3.5%
Q2 2012-0.0%
Q2 2011-0.0%
Q4 2011-0.0%

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