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Jan 31, 2024
Verint Q4 2024 Earnings Report
Reported strong Q4 results, ahead of expectations, with AI-powered open platform driving bundled SaaS momentum.
Key Takeaways
Verint announced strong Q4 results with revenue of $265 million, a 12% year-over-year increase, and diluted EPS of $0.37 on a GAAP basis and $1.07 on a non-GAAP basis. The company's AI-powered open platform is resonating well in the market, driving bundled SaaS momentum. Verint is raising its revenue and EPS outlook for FYE25 to reflect AI momentum.
Revenue was up 12% year-over-year.
SaaS Revenue was up approximately 28% year-over-year.
Recurring Revenue was 89% of software revenue, up approximately 200bps year-over-year.
Gross Margin was up approximately 300bps year-over-year.
Verint
Verint
Verint Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.com Forward Guidance
Verint provided its non-GAAP outlook for the year ending January 31, 2025, reflecting the divestiture of a managed service offering. Revenue is expected to be $930 million +/- 2%, reflecting 5% year-over-year growth (adjusted for divestiture). Diluted EPS is projected to be $2.89 at the midpoint of revenue guidance, reflecting 6% year-over-year growth. The company is targeting a greater than 40% increase in free cash flow to approximately $180 million and expects its largest use of free cash flow to be share buybacks.
Positive Outlook
- Revenue: $930 million +/- 2%, reflecting 5% year-over-year growth (growth rate adjusted for divestiture)
- Diluted EPS: $2.89 at the midpoint of our revenue guidance, reflecting 6% year-over-year growth
- Targeting a greater than 40% increase in free cash flow, to approximately $180 million
- Largest use of free cash flow to be share buybacks, to further reduce our share count
- AI innovation to drive Bundled SaaS growth and free cash flow acceleration
Challenges Ahead
- Outlook reflects the divestiture of a managed service offering on January 31, 2024 that generated $25 million in FYE 24 revenue.
- Excludes amortization of intangible assets of approximately $17 million
- Excludes stock-based compensation expenses expected to be between approximately $70 million and $74 million
- Non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof
- Unable, without unreasonable efforts, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook