MELVILLE, N.Y. - Verint Systems Inc. (NASDAQ: NASDAQ:VRNT), a global leader in customer experience (CX) automation, announced its first quarter results, surpassing analyst expectations with an earnings and revenue beat, and providing an optimistic outlook for the fiscal year ending January 31, 2025 (FYE 2025).
The company's shares surged 9.5% following the announcement.
For the first quarter ended April 30, 2024, Verint reported non-GAAP earnings per share (EPS) of $0.59, which was $0.04 higher than the analyst consensus of $0.55. Revenue reached $221.28 million, exceeding the consensus estimate of $217.16 million and marking a 2% growth year-over-year (YoY) on a reported basis. Adjusted for the divestiture of its quality managed services business, the company's revenue growth was 5% YoY.
Dan Bodner, CEO of Verint, attributed the strong quarter to the increasing demand for AI business outcomes in contact centers. "Brands are increasingly seeking AI business outcomes to increase customer experience automation in their contact centers," Bodner commented. He also highlighted the success of Verint's open platform and AI-powered bots in delivering tangible AI business outcomes, which have been a key factor behind the company's momentum.
The company's SaaS revenue saw a significant increase of 20% YoY, with new bundled SaaS Annual Contract Value (ACV) bookings up by 25% YoY, 80% of which included AI-powered bots. Verint's CFO, Grant Highlander, noted the strong SaaS momentum and the more than 20% increase in the advanced stage bundled SaaS pipeline for the remainder of the year, reflecting growing market demand.
Looking ahead, Verint raised its non-GAAP outlook for FYE 2025. The company now expects revenue of approximately $933 million, which is a 5% YoY growth when adjusted for the aforementioned divestiture. This forecast falls within a range of +/- 2% and is slightly above the analyst consensus of $932.3 million. Diluted EPS is projected to be $2.90 at the midpoint of revenue guidance, representing a 6% YoY growth and also slightly surpassing the consensus estimate of $2.88.
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