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Oct 31, 2022
Verint Q3 2023 Earnings Report
Reported strong SaaS momentum across key metrics and announced a new $200 million share buyback program.
Key Takeaways
Verint announced its Q3 results with revenue of $225 million on a GAAP basis, a 0.2% year-over-year growth. The company had significant wins from existing and new customers and delivered strong SaaS Revenue growth and New SaaS ACV bookings growth.
New SaaS ACV Growth: Up 51% year-over-year on a constant currency basis
Favorable Mix Shift: 88% of Software Revenue is Recurring (up from 80% last year)
Cloud Revenue: Up 35% year-over-year on a constant currency basis
New Customer Additions: Added 100+ new logos
Verint
Verint
Verint Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.com Forward Guidance
Verint is adjusting its non-GAAP annual outlook for the year ending January 31, 2023. They are also providing their non-GAAP annual outlook for the year ending January 31, 2024.
Positive Outlook
- Revenue: $900 million +/- 2%, reflecting 5% year-over-year growth on a constant currency basis
- SaaS Revenue Growth: More than 35% year-over-year growth with cloud revenue growing more than 30% year-over-year both on a constant currency basis
- Diluted EPS: $2.50 at the midpoint of our revenue guidance, reflecting 10% year-over-year growth
- Revenue: $945 million +/- 2%, reflecting 6% year-over-year growth on a constant currency basis
- SaaS Revenue Growth: Approximately 30% year-over-year growth on a constant currency basis
Challenges Ahead
- Perpetual revenue to come in lower than our original outlook
- Expect continued perpetual revenue decline
- Revenue adjustments are expected to be between approximately $2 million and $3 million.
- Stock-based compensation expenses are expected to be between approximately $79 million and $82 million, assuming market prices for our common stock approximately consistent with current levels.
- Costs associated with modifying our workplace in response to our decision to move to a hybrid work environment, including assumed lease terminations and abandonments, IT facilities and infrastructure costs, and other charges are expected to be between approximately $26 million and $29 million.