Verint signs $13M deal with top US insurer to boost CX

Published 28/05/2025, 15:06
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MELVILLE, N.Y. - Verint (NASDAQ: VRNT), a company specializing in customer experience (CX) automation with a market capitalization of $1.04 billion, announced a $13 million multi-year agreement with a leading U.S. insurance company to enhance its CX operations using AI-powered bots. This initiative aims to increase workforce efficiency by automating repetitive tasks, potentially expanding the capacity of 6,500 customer service agents to over 12,000. According to InvestingPro analysis, Verint is currently trading below its Fair Value, suggesting potential upside opportunity for investors.

The deployment of Verint’s AI bots is expected to result in a 25% increase in agent capacity and over 50% for supervisors, which the company anticipates will lead to significant value creation and a return on investment exceeding tenfold. The deal, which was finalized in the first quarter, is part of Verint’s Fiscal Q1 plans. With a robust gross profit margin of 72% and an EBITDA of $144 million in the last twelve months, the company demonstrates strong operational efficiency.

Jaime Meritt, Verint’s Chief Product Officer, highlighted the benefits of the deal, stating that the AI-powered bots are set to deliver substantial savings and improve the experiences of both employees and customers. Meritt emphasized the advantage of Verint’s hybrid architecture, which allows for the integration of AI without disrupting ongoing operations, leading to immediate and stronger business outcomes.

Verint, recognized as a leader in CX automation, serves an impressive roster of clients, including over 80 of the Fortune 100 companies. These organizations leverage Verint’s Open Platform and its suite of AI bots to achieve tangible business results.

The company, which prides itself on being certified by Great Place to Work®, continues to make strides in the field of AI and CX automation, providing solutions that address the needs of enterprises across various industries. InvestingPro subscribers can access detailed analysis, including 10 additional ProTips and comprehensive financial metrics in the Pro Research Report, offering valuable insights for investors interested in this AI-focused enterprise.

The information in this article is based on a press release statement from Verint.

In other recent news, Verint Systems reported fourth-quarter revenue of $253 million and earnings per share of $0.99, both falling short of expectations, primarily due to delayed contracts. Despite this, the company’s Annual Recurring Revenue (ARR) guidance for fiscal year 2026 was raised, indicating an 8% year-over-year growth to $768 million. Analysts from Needham, TD Cowen, RBC Capital, and Evercore ISI have adjusted their price targets for Verint, with Needham and RBC Capital setting targets at $30 and $29, respectively, while Evercore ISI lowered its target to $23. These adjustments reflect a mix of optimism about Verint’s AI-driven solutions and caution regarding its revenue recognition challenges. Needham and TD Cowen continue to recommend buying Verint’s stock, emphasizing the company’s long-term AI opportunities. RBC Capital and Evercore ISI maintain a positive outlook on Verint’s AI bot potential, with RBC Capital noting the nascent stage of adoption among customers. The focus on ARR as a key metric suggests that Verint’s strategic direction is aligned with market demands, despite the variability in its revenue reporting. Verint’s management remains confident in securing delayed contracts and achieving its financial targets, supported by the revised ARR guidance.

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