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Verint®, The Customer Engagement Company™, announced results for the three months and year ended January 31, 2024 (FYE 2024). Revenue for the three months ended January 31, 2024 was $265 million, representing 12% year-over-year growth. Revenue for the year ended January 31, 2024 was $910 million on a GAAP basis and $911 million on a non-GAAP basis. For the three months ended January 31, 2024, diluted EPS was $0.37 on a GAAP basis and $1.07 on a non-GAAP basis. For the year ended January 31, 2024, diluted EPS was $0.28 on a GAAP basis and $2.73 on a non-GAAP basis.
“The market today is looking to increase CX Automation, and Verint is leading the way with an AI-powered open platform. I am pleased to report strong Q4 results, ahead of our expectations. Our differentiated approach to CX Automation enables Verint to deliver tangible AI business outcomes better than any other vendor in our market. Our customers purchase our AI innovation in Bundled SaaS, and we are pleased with our 16% year-over-year increase in Bundled SaaS New ACV bookings in Q4, and our over 20% year-over-year increase in Bundled SaaS pipeline as of the end of Q4. For the current year we are raising our outlook to reflect our AI momentum,” said Dan Bodner, Verint CEO.
Q4 FYE 2024 Highlights
- Revenue: Up 12% year-over-year
- SaaS Revenue: Up ~28% year-over-year
- Recurring Revenue: 89% of software revenue recurring (up ~200bps year-over-year)
- Gross Margin: Up ~300bps year-over-year
- Free Cash Flow: Up 20% year-over-year for the full year
Grant Highlander, Verint CFO, added, “As we execute our roadmap to become a ‘Rule of 40’ company, we continue our AI investments in the platform, ending Q4 with ~1,300 engineers in R&D and Cloud Operations, and adding resources to our Customer Success team to drive AI adoption by our customers. In Q4, we also aligned our services catalog to our AI offerings by adding value realization services and divesting a manual managed services offering that is being replaced with AI-powered bots.”
Highlander continued, “We expect our AI innovation to drive Bundled SaaS growth and free cash flow acceleration. For FYE 25, we are targeting a greater than 40% increase in free cash flow, to approximately $180 million. We expect our largest use of free cash flow to be share buybacks, to further reduce our share count.”
FYE 2025 Outlook
We are providing our non-GAAP outlook for the year ending January 31, 2025. Our outlook reflects the divestiture of a managed service offering on January 31, 2024 that generated $25 million in FYE 24 revenue.
- 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
Our non-GAAP outlook for three months ending April 30, 2024 and year ending January 31, 2025 excludes the following GAAP measure which we are able to quantify with reasonable certainty:
- Amortization of intangible assets of approximately $4 million and $17 million, for the three months ending April 30, 2024 and year ending January 31, 2025, respectively.
Our non-GAAP outlook for the three months ending April 30, 2024 and year ending January 31, 2025 excludes the following GAAP measures for which we are able to provide a range of probable significance:
- Stock-based compensation expenses are expected to be between approximately $17 million and $19 million, and $70 million and $74 million, for the three months ending April 30, 2024 and year ending January 31, 2025, respectively, 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, and, unless otherwise specified, reflects foreign currency exchange rates approximately consistent with current rates.
