NASDAQ$VRNT

Verint Systems Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong SaaS momentum across key metrics and announced a new $200 million share buyback program.

Verint announced its Q3 results with revenue of $225 million on a GAAP basis, a 0.2% year-over-year growth. The company had significant wins from existing and new customers and delivered strong SaaS Revenue growth and New SaaS ACV bookings growth.

  • New SaaS ACV Growth: Up 51% year-over-year on a constant currency basis
  • Favorable Mix Shift: 88% of Software Revenue is Recurring (up from 80% last year)
  • Cloud Revenue: Up 35% year-over-year on a constant currency basis
  • New Customer Additions: Added 100+ new logos

Headline financials

Total Revenue

$226M

Previous: $227M-0.6%
EPS (adj)

$0.69

Previous: $0.69+0.0%
Capital Expenditures

$7.76M

Previous: $4.33M+79.3%
Free Cash Flow

$14.2M

Previous: $42.3M-66.5%
Net Income

$4.23M

Previous: $13.5M-68.7%
Operating Income

$21.7M

Previous: $24.7M-12.1%
Gross Profit

$155M

Previous: $153M+1.3%
Cash & Equivalents

$252M

Previous: $308M-18.1%
Total Assets

$2.17B

Previous: $2.3B-5.5%
Stock-Based Comp

$19.9M

Previous: $16.6M+20.0%

Revenue & EPS history

Verint · Revenue · Quarterly

$226M

Q3 2023-0.6%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Verint · $174M total across 1 segment · Q3 2023

  • Recurring Revenue
    $174M+9.7%

Forward guidance

Verint is adjusting its non-GAAP annual outlook for the year ending January 31, 2023. They are also providing their non-GAAP annual outlook for the year ending January 31, 2024.

Tailwinds

  • Revenue: $900 million +/- 2%, reflecting 5% year-over-year growth on a constant currency basis
  • SaaS Revenue Growth: More than 35% year-over-year growth with cloud revenue growing more than 30% year-over-year both on a constant currency basis
  • Diluted EPS: $2.50 at the midpoint of our revenue guidance, reflecting 10% year-over-year growth
  • Revenue: $945 million +/- 2%, reflecting 6% year-over-year growth on a constant currency basis
  • SaaS Revenue Growth: Approximately 30% year-over-year growth on a constant currency basis

Headwinds

  • Perpetual revenue to come in lower than our original outlook
  • Expect continued perpetual revenue decline
  • Revenue adjustments are expected to be between approximately $2 million and $3 million.
  • Stock-based compensation expenses are expected to be between approximately $79 million and $82 million, assuming market prices for our common stock approximately consistent with current levels.
  • Costs associated with modifying our workplace in response to our decision to move to a hybrid work environment, including assumed lease terminations and abandonments, IT facilities and infrastructure costs, and other charges are expected to be between approximately $26 million and $29 million.

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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