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Apr 30, 2020
Verint Q1 2021 Earnings Report
Verint's Q1 FY2021 results were announced, with bookings growing in both segments during February and March, but many on-premises deployments were delayed in April due to COVID-19.
Key Takeaways
Verint Systems Inc. reported a GAAP revenue of $287 million and a non-GAAP revenue of $292 million for the three months ended April 30, 2020. The company's GAAP net loss per share was $(0.09), while non-GAAP diluted EPS was $0.52. They generated $76 million in cash flow from operations and hold over $800 million in cash, including the first tranche of the Apax investment.
SaaS bookings experienced year-over-year growth, with new SaaS ACV up 45%.
Recurring software revenue mix increased to 82%, up approximately 900 basis points year-over-year.
Cyber Intelligence gross margin expanded by approximately 400 basis points year-over-year on a fully allocated basis.
The company is targeting separation shortly after fiscal year-end, having completed the Apax investment and term loan amendment.
Forward Guidance
Verint expects business results to improve throughout the year as delayed on-premises deals come back and cloud-first strategy in Customer Engagement and software model strategy in Cyber Intelligence continue momentum this year.
Positive Outlook
- Sequential improvement expected in Q2.
- Continued improvement expected in the second half of the year.
- Driven by on-premises deployments coming back.
- Driven by cloud growth.
- Targeting the separation shortly after fiscal year-end.
Challenges Ahead
- Many on-premises deployments delayed in April due to COVID-19.
- Perpetual revenue down as customers delay on-premises deployments.
- Uncertainties regarding the impact of changes in macroeconomic and/or global conditions, including as a result of slowdowns, recessions, economic instability, political unrest, armed conflicts, natural disasters, or outbreaks of disease, such as the COVID-19 pandemic, as well as the resulting impact on information technology spending and government budgets, on our business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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