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Jul 31, 2022

Verint Q2 2023 Earnings Report

Reported strong momentum with strength across key cloud metrics.

Key Takeaways

Verint announced strong second quarter results with revenue of $223 million on a GAAP basis, representing 3.9% year-over-year growth, and non-GAAP diluted EPS of $0.56. The company added 100+ new logos and saw double-digit New Perpetual License Equivalent (PLE) Bookings growth, with a continued shift to SaaS.

Revenue for the three months ended July 31, 2022 was $223 million on a GAAP basis representing 3.9% year-over-year growth and $224 million on a non-GAAP basis, representing 3.7% year-over-year growth.

Net loss per share was $(0.12) on a GAAP basis and diluted EPS was $0.56 on a non-GAAP basis.

New PLE Bookings Growth: 10% reported, 12% constant currency

Favorable Mix Shift: 65% of New PLE bookings came from SaaS (up from 53% in Q2 of the prior year)

Total Revenue
$224M
Previous year: $216M
+3.7%
EPS
$0.56
Previous year: $0.58
-3.4%
SaaS ACV Growth YoY
2.7%
Gross Profit
$148M
Cash and Equivalents
$257M
Previous year: $320M
-20.0%
Free Cash Flow
-$12.2M
Total Assets
$2.17B

Verint

Verint

Forward Guidance

Our non-GAAP annual outlook for the year ending January 31, 2023 has been adjusted to reflect FX changes in H1 and recent rates for the second half of the year:

Positive Outlook

  • Revenue: $920 million +/- 2%, reflecting 7% year-over-year growth on a constant currency basis
  • Cloud Revenue Growth: 32% to 34% year-over-year on a constant currency basis
  • Diluted EPS: $2.50 at the midpoint of our revenue guidance, reflecting 10% year-over-year growth
  • About one-third of our cost of revenue and operating expenses are in foreign currencies and therefore, the appreciating dollar reduces our non-U.S. dollar cost of revenue and operating expenses largely offsetting the revenue reduction.
  • This natural hedge results in no real change due to FX to our bottom-line reported results and guidance.