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Oct 31, 2024
Verint Q3 2025 Earnings Report
Revenue and diluted EPS exceeded Q3 guidance, driven by early renewal revenue and strong AI momentum, resulting in accelerated bundled SaaS revenue growth.
Key Takeaways
Verint announced strong Q3 FYE 2025 results, with revenue up 3% year-over-year (5% adjusted for divestiture) to $224 million and diluted EPS at $0.39 on a GAAP basis and $0.54 on a non-GAAP basis. The overachievement was driven by early SaaS renewal revenue and strong demand for AI business outcomes, with bundled SaaS revenue growth accelerating to 19% year-over-year. The company maintains its FYE25 guidance.
Revenue up 3% year-over-year as reported and up ~5% year-over-year adjusted for divestiture
Gross Margin up ~70bps year-over-year
Bundled SaaS Revenue up 19% year-over-year
SaaS ARR up 11% year-over-year
Verint
Verint
Verint Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.com Forward Guidance
Verint maintains its full year guidance for revenue and non-GAAP diluted EPS.
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.
- Maintaining FYE25 Guidance
- Expect to Finish the Year Strong
- Investor Day to Be Held January 14, 2025
Challenges Ahead
- Amortization of intangible assets of approximately $20 million for the year ending January 31, 2025.
- Stock-based compensation expenses are expected to be between approximately $76 million and $78 million, for the year ending January 31, 2025, assuming market prices for our common stock approximately consistent with current levels.
- Our non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof
- We are unable, without unreasonable efforts, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items.
- For these same reasons, we are unable to assess the probable significance of these excluded items.