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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.
Verint
Verint
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.
- Risks that our customers delay, cancel, or refrain from placing orders, refrain from renewing subscriptions or service contracts, or are unable to honor contractual commitments or payment obligations due to liquidity issues or other challenges in their business, due to the COVID-19 pandemic or otherwise.
- Risks that continuing restrictions resulting from the COVID-19 pandemic or actions taken in response to the pandemic adversely impact our operations or our ability to fulfill orders, complete implementations, or recognize revenue.