Verint Systems, Inc. Q3 FY2024 earnings call

• Q3 results: Revenue came in at $219 million, non-GAAP diluted EPS at $0.65, both ahead of expectations. - AI trends: More than 50% of SaaS bookings in Q3 included AI-powered bots, a significant increase from the prior year; most new SaaS ACV bookings were bundled SaaS. - Wins and pipeline: Over 30 orders exceeding $1 million TCV, 100+ new logos added, and 12-month SaaS pipeline up over 20% year-over-year. - Investor Day preview: Will discuss SaaS transition over the last 3 years, the AI opportunity driving the next chapter, and the positive economic impact of increased AI adoption.

In Q3, revenue was $219 million. Regarding SaaS, new SaaS ACV bookings were $25 million (annual run rate ~$100 million), with nearly 90% of new SaaS ACV bookings being bundled SaaS, and over 50% of these included AI-powered bots. Perpetual revenue was $25 million in Q3 and expected to remain around that level. Support revenue continued to gradually decline as the support base shifted to SaaS over time.

• Q4: Expected revenue of around $264 million (11% YOY growth), non-GAAP diluted EPS of about $0.99, with sequential gross margin expansion. - Full year fiscal '24: Guidance for revenue is $910 million ±2%, non-GAAP diluted EPS at midpoint of revenue guidance is $2.65. - Stock buyback: ~$150 million worth of shares repurchased, expect to complete the $200 million buyback program faster than planned.

Forward-looking statements based on management's current expectations may not materialize, as actual results could differ materially. Macroeconomic factors could continue to affect sales cycles, potentially impacting revenue and growth.

Q: Joshua Reilly asked about sales cycles and net new ACV.

A: Dan Bodner said elongated sales cycles haven't changed, but the shift to bundled SaaS driven by AI is the key change.

Q: Hugh Cunningham asked about customer focus on cost vs. CX.

A: Dan Bodner said customers are initially buying to reduce labor cost, but long-term they'll use bots for better customer experience.

Q: Peter Levine asked about gross margin and fiscal '25 guidance.

A: Grant Highlander discussed gross margin leverage from cost savings, and Dan Bodner said Investor Day will cover fiscal '25 and next 3 years.

Q: Samad Samana asked about cloud vs. on-prem deployment and partners.

A: Dan Bodner explained about customers on-prem, in partner clouds, etc., and partners wanting to resell Verint bots in the Verint Cloud