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Jul 31, 2024
Verint Q2 2025 Earnings Report
Verint announced Q2 FYE 2025 results, showcasing strong AI momentum and bundled SaaS revenue growth.
Key Takeaways
Verint's Q2 FYE 2025 showed flat revenue year-over-year, but a 3% increase adjusted for divestiture. The company reported a GAAP EPS of $0.02 and a non-GAAP EPS of $0.49, with bundled SaaS revenue growing by 15% and AI bookings increasing by over 40% year-over-year. They continue to expect 5% adjusted revenue growth and 10% adjusted EBITDA growth with strong free cash flow growth for the full year.
Revenue was flat year-over-year, but up 3% adjusted for divestiture.
Gross margin increased by over 150 bps year-over-year.
Bundled SaaS revenue grew by 15% year-over-year.
AI bookings increased by over 40% year-over-year.
Verint
Verint
Verint Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comNonrecurring Perpetual Revenue
CapyFin.comNonrecurring Professional Revenue
CapyFin.com Forward Guidance
Verint expects 5% adjusted revenue growth and $2.90 diluted EPS for the year ending January 31, 2025.
Positive Outlook
- Revenue: $933 million +/- 2%, reflecting 5% year-over-year growth (adjusted for the divestiture discussed above)
- Diluted EPS: $2.90 at the midpoint of our revenue guidance, reflecting 6% year-over-year growth
- Strong AI momentum in H1
- Increasing market demand for tangible AI business outcomes
- Advanced stage bundled SaaS pipeline for the remainder of the year was up around 20% from the same period last year
Challenges Ahead
- Excludes amortization of intangible assets of approximately $4 million for the three months ending October 31, 2024
- Excludes amortization of intangible assets of approximately $18 million for the year ending January 31, 2025
- Stock-based compensation expenses are expected to be between approximately $19 million and $21 million for the three months ending October 31, 2024
- Stock-based compensation expenses are expected to be between approximately $78 million and $82 million for the year ending January 31, 2025
- Our non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof
Revenue & Expenses
Visualization of income flow from segment revenue to net income