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Jul 31, 2020

Verint Q2 2021 Earnings Report

Announced strong Q2 FY2021 results with sequential growth and cloud momentum.

Key Takeaways

Verint Systems Inc. reported a solid Q2 with strong sequential revenue growth, year-over-year operating income growth, and cash from operations growth. The cloud business accelerated, and the on-premises business began to recover from the initial impact of COVID-19.

Revenue for the three months ended July 31, 2020 was $309 million on a GAAP basis and $313 million on a non-GAAP basis.

Diluted EPS was $0.09 on a GAAP basis, and $1.06 on a non-GAAP basis.

New SaaS ACV was up 65% year-over-year.

The company is on track to complete the separation shortly after fiscal year-end.

Total Revenue
$313M
Previous year: $331M
-5.4%
EPS
$1.06
Previous year: $0.82
+29.3%
Gross Profit
$211M
Previous year: $208M
+1.5%
Cash and Equivalents
$731M
Previous year: $389M
+88.2%
Free Cash Flow
$48.9M
Previous year: -$4.17M
-1272.7%
Total Assets
$3.3B
Previous year: $2.93B
+12.7%

Verint

Verint

Forward Guidance

The company expects non-GAAP revenue to improve sequentially both in Q3 and Q4 and adjusted EBITDA for the year to be similar to last year.

Positive Outlook

  • Non-GAAP revenue is expected to improve sequentially in Q3.
  • Non-GAAP revenue is expected to improve sequentially in Q4.
  • Adjusted EBITDA for the year is expected to be similar to last year.
  • The company expects to make its initial confidential submission to the SEC later this month.
  • Strong cloud momentum is expected to continue.