News Buzz: Verint® Systems Inc. (NASDAQ: VRNT)

Verint Systems Inc. (NASDAQ: VRNT), a global Actionable Intelligence leader, recently stated results for the three and six months finished July 31, 2k19 (FY2k20).

FY2k20 1st-Half Highlights

Customer Engagement

  • Revenue growth of 8.10 percent on a GAAP basis and 12.20 percent on a non-GAAP constant currency basis
  • “Cloud First” strategy progressing well
  • Strong cloud revenue growth on a GAAP basis of 37.00 percent and on a non-GAAP basis of 49.00 percent
  • Strong new SaaS ACV growth of 84.00 percent
  • 11 cloud orders over $1.00M Total Contract Value (TCV) as compared to 4 in the previous year 1st-half
  • Automation innovation assisting customers achieve elevated customer experience while reducing their operating costs

Cyber Intelligence

  • Revenue growth of 6.10 percent on a GAAP basis and 7.50 percent on a non-GAAP constant currency basis
  • While accelerating our planned reduction of low margin pass-through hardware revenue
  • Software model strategy ahead of plan
    • Gross margins (estimated fully allocated) up more than 600bps
  • Continuing to win large orders reflecting customer need for advanced data mining solutions
    • Added about 50 new customers in the 1st-half

Financial Outlook for FY2k20 (Year Ending January 31, 2k20)

Our non-GAAP outlook for revenue and EPS for the year ending January 31, 2k20 is as follows:

  • Revenue: $1.375B with a range of +/- 2.0 percent
  • Reflects 10.50 percent year-over-year development
  • EPS: $3.650 at the midpoint of our revenue guidance
    • Reflects 14.00 percent year-over-year growth

Our non-GAAP outlook for the year ending January 31, 2k20 excludes the following GAAP measures which we are able to quantify with reasonable certainty:

  • Amortization of intangible assets of about $55.00M.
  • Amortization of discount on convertible notes of about $12.00M.

Our non-GAAP outlook for the year ending January 31, 2k20 excludes the following GAAP measures for which we are able to provide a range of probable significance:

  • Revenue adjustments are expected to be between about $26.00M and $28.00M.
  • Stock-based compensation is expected to be between about $75.00M and $79.00M, assuming market prices for our common stock about consistent with current levels.