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Oct 31, 2021

Verint Q3 2022 Earnings Report

Verint announced strong third quarter results and raised guidance and three-year targets.

Key Takeaways

Verint reported strong Q3 results with revenue of $225 million on a GAAP basis and $227 million on a non-GAAP basis, both representing 4% year-over-year growth. The company is raising its annual outlook for total revenue, cloud revenue, and new PLE bookings.

Cloud revenue was up 32% year-over-year.

New perpetual license equivalent (PLE) bookings were up 14% year-over-year.

21 orders each in excess of $1 million Total Contract Value (TCV).

Company is tracking ahead of three-year targets.

Total Revenue
$227M
Previous year: $331M
-31.5%
EPS
$0.69
Previous year: $1.02
-32.4%
Gross Profit
$153M
Previous year: $225M
-32.1%
Cash and Equivalents
$308M
Previous year: $527M
-41.6%
Free Cash Flow
$42.3M
Previous year: $16.5M
+155.7%
Total Assets
$2.3B
Previous year: $3.12B
-26.4%

Verint

Verint

Forward Guidance

Verint is increasing its non-GAAP annual outlook for the year ending January 31, 2022 and introducing its non-GAAP annual outlook for the year ending January 31, 2023.

Positive Outlook

  • Cloud Revenue Growth: a range of 35% to 37%
  • New PLE Bookings Growth: a range of 15% to 17%
  • Revenue: $875 million +/- 1%
  • Diluted EPS: $2.25 at the midpoint of our revenue guidance
  • Cloud Revenue: 30% growth resulting in cloud revenue of over $500 million

Challenges Ahead

  • Revenue adjustments are expected to be between approximately $5 million and $7 million.
  • Stock-based compensation expenses are expected to be between approximately $65 million and $70 million for the year ending January 31, 2022, assuming market prices for our common stock approximately consistent with current levels.
  • Further costs associated with Verint’s February 1, 2021 separation into two independent public companies are expected to be between approximately $13 million and $15 million.
  • Revenue adjustments are expected to be between approximately $2 million and $4 million.
  • Stock-based compensation expenses are expected to be between approximately $67 million and $73 million for the year ending January 31, 2023, assuming market prices for our common stock approximately consistent with current levels.