NASDAQ$VRNT

Verint Systems Inc. · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Reported strong Q4 results, ahead of expectations, with AI-powered open platform driving bundled SaaS momentum.

Verint announced strong Q4 results with revenue of $265 million, a 12% year-over-year increase, and diluted EPS of $0.37 on a GAAP basis and $1.07 on a non-GAAP basis. The company's AI-powered open platform is resonating well in the market, driving bundled SaaS momentum. Verint is raising its revenue and EPS outlook for FYE25 to reflect AI momentum.

  • Revenue was up 12% year-over-year.
  • SaaS Revenue was up approximately 28% year-over-year.
  • Recurring Revenue was 89% of software revenue, up approximately 200bps year-over-year.
  • Gross Margin was up approximately 300bps year-over-year.

Headline financials

Total Revenue

$265M

Previous: $237M+12.0%
EPS (adj)

$1.07

Previous: $0.75+42.7%
Capital Expenditures

-$5.79M

Previous: $10M-157.7%
Free Cash Flow

$65.7M

Previous: $61.2M+7.4%
Net Income

$28.9M

Previous: $13.1M+120.9%
Operating Income

$40.2M

Previous: $33.7M+19.4%
Gross Profit

$189M

Previous: $163M+15.6%
R&D Expense

$35.9M

No prior period
Stock-Based Comp

$17.3M

Previous: $12.1M+43.3%

Revenue & EPS history

Verint · Revenue · Quarterly

$265M

Q4 2024+12%vs Q4 2023
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 provided its non-GAAP outlook for the year ending January 31, 2025, reflecting the divestiture of a managed service offering. Revenue is expected to be $930 million +/- 2%, reflecting 5% year-over-year growth (adjusted for divestiture). Diluted EPS is projected to be $2.89 at the midpoint of revenue guidance, reflecting 6% year-over-year growth. The company is targeting a greater than 40% increase in free cash flow to approximately $180 million and expects its largest use of free cash flow to be share buybacks.

Tailwinds

  • Revenue: $930 million +/- 2%, reflecting 5% year-over-year growth (growth rate adjusted for divestiture)
  • Diluted EPS: $2.89 at the midpoint of our revenue guidance, reflecting 6% year-over-year growth
  • Targeting a greater than 40% increase in free cash flow, to approximately $180 million
  • Largest use of free cash flow to be share buybacks, to further reduce our share count
  • AI innovation to drive Bundled SaaS growth and free cash flow acceleration

Headwinds

  • Outlook reflects the divestiture of a managed service offering on January 31, 2024 that generated $25 million in FYE 24 revenue.
  • Excludes amortization of intangible assets of approximately $17 million
  • Excludes stock-based compensation expenses expected to be between approximately $70 million and $74 million
  • Non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof
  • Unable, without unreasonable efforts, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook

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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