Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 30, 2024 | May 15, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34807 | |
Entity Registrant Name | Verint Systems Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-3200514 | |
Entity Address, Address Line One | 225 Broadhollow Road | |
Entity Address, City or Town | Melville, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11747 | |
City Area Code | (631) | |
Local Phone Number | 962-9600 | |
Title of 12(b) Security | Common Stock, $.001 par value per share | |
Trading Symbol | VRNT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,776,686 | |
Entity Central Index Key | 0001166388 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Current Assets: | ||
Cash and cash equivalents | $ 236,592 | $ 241,400 |
Short-term investments | 785 | 686 |
Accounts receivable, net of allowance for credit losses of $1.3 million and $1.2 million, respectively | 155,903 | 190,461 |
Contract assets, net | 71,490 | 66,913 |
Inventories | 16,589 | 14,209 |
Prepaid expenses and other current assets | 48,775 | 59,505 |
Total current assets | 530,134 | 573,174 |
Property and equipment, net | 48,689 | 47,704 |
Operating lease right-of-use assets | 28,836 | 30,118 |
Goodwill | 1,354,933 | 1,352,715 |
Intangible assets, net | 58,450 | 57,466 |
Other assets | 168,970 | 165,247 |
Total assets | 2,190,012 | 2,226,424 |
Current Liabilities: | ||
Accounts payable | 29,327 | 26,301 |
Accrued expenses and other current liabilities | 122,391 | 137,433 |
Contract liabilities | 242,478 | 254,437 |
Total current liabilities | 394,196 | 418,171 |
Long-term debt | 411,365 | 410,965 |
Long-term contract liabilities | 9,394 | 10,581 |
Operating lease liabilities | 30,933 | 32,100 |
Other liabilities | 88,892 | 85,620 |
Total liabilities | 934,780 | 957,437 |
Commitments and Contingencies | ||
Temporary Equity: | ||
Total temporary equity | 436,321 | 436,321 |
Stockholders' Equity: | ||
Common stock — $0.001 par value; authorized 240,000,000 shares; issued 61,914,000 and 62,738,000 shares; outstanding 61,914,000 and 62,738,000 shares at April 30, 2024 and January 31, 2024, respectively. | 62 | 63 |
Additional paid-in capital | 958,062 | 979,671 |
Retained earnings (accumulated deficit) | 8,518 | (6,723) |
Accumulated other comprehensive loss | (150,241) | (142,962) |
Total Verint Systems Inc. stockholders' equity | 816,401 | 830,049 |
Noncontrolling interest | 2,510 | 2,617 |
Total stockholders' equity | 818,911 | 832,666 |
Total liabilities, temporary equity, and stockholders' equity | 2,190,012 | 2,226,424 |
Series A Preferred Stock | ||
Temporary Equity: | ||
Total temporary equity | 200,628 | 200,628 |
Series B Preferred Stock | ||
Temporary Equity: | ||
Total temporary equity | $ 235,693 | $ 235,693 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Allowance for credit losses | $ 1,300 | $ 1,200 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 2,207,000 | 2,207,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, issued (in shares) | 61,914,000 | 62,738,000 |
Common Stock, outstanding (in shares) | 61,914,000 | 62,738,000 |
Series A Preferred Stock | ||
Preferred stock, issued (in shares) | 200,000 | 200,000 |
Preferred stock, outstanding (in shares) | 200,000 | 200,000 |
Preferred stock, liquidation preference value | $ 203,467 | $ 206,067 |
Preferred stock, redemption value | $ 203,467 | $ 206,067 |
Series B Preferred Stock | ||
Preferred stock, issued (in shares) | 200,000 | 200,000 |
Preferred stock, outstanding (in shares) | 200,000 | 200,000 |
Preferred stock, liquidation preference value | $ 203,467 | $ 206,067 |
Preferred stock, redemption value | $ 203,467 | $ 206,067 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Revenue: | ||
Total revenue | $ 221,277 | $ 216,566 |
Cost of revenue: | ||
Amortization of acquired technology | 1,358 | 1,965 |
Total cost of revenue | 63,761 | 68,403 |
Gross profit | 157,516 | 148,163 |
Operating expenses: | ||
Research and development, net | 36,730 | 31,782 |
Selling, general and administrative | 93,276 | 101,279 |
Amortization of other acquired intangible assets | 3,065 | 6,330 |
Total operating expenses | 133,071 | 139,391 |
Operating income | 24,445 | 8,772 |
Other income (expense), net: | ||
Interest income | 1,978 | 1,982 |
Interest expense | (2,591) | (2,781) |
Other (expense) income, net | (498) | 24 |
Total other expense, net | (1,111) | (775) |
Income before provision for income taxes | 23,334 | 7,997 |
Provision for income taxes | 7,955 | 4,363 |
Net income | 15,379 | 3,634 |
Net income attributable to noncontrolling interests | 138 | 339 |
Net income attributable to Verint Systems Inc. | 15,241 | 3,295 |
Dividends on preferred stock | (5,200) | (5,200) |
Net income (loss) attributable to Verint Systems Inc. common shares | $ 10,041 | $ (1,905) |
Net income (loss) per common share attributable to Verint Systems Inc.: | ||
Basic (in dollars per share) | $ 0.16 | $ (0.03) |
Diluted (in dollars per share) | $ 0.16 | $ (0.03) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 62,335 | 64,940 |
Diluted (in shares) | 62,845 | 64,940 |
Recurring | ||
Revenue: | ||
Total revenue | $ 173,528 | $ 166,439 |
Cost of revenue: | ||
Cost of revenue | 35,923 | 39,643 |
Nonrecurring | ||
Revenue: | ||
Total revenue | 47,749 | 50,127 |
Cost of revenue: | ||
Cost of revenue | $ 26,480 | $ 26,795 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,379 | $ 3,634 |
Other comprehensive (loss) income, net of reclassification adjustments: | ||
Foreign currency translation adjustments | (7,060) | 8,612 |
Net decrease from foreign exchange contracts designated as hedges | (266) | (123) |
Benefit from income taxes on net decrease from foreign exchange contracts designated as hedges | 47 | 21 |
Other comprehensive (loss) income | (7,279) | 8,510 |
Comprehensive income | 8,100 | 12,144 |
Comprehensive income attributable to noncontrolling interests | 138 | 339 |
Comprehensive income attributable to Verint Systems Inc. | $ 7,962 | $ 11,805 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Total Verint Systems Inc. Stockholders’ Equity | Common Stock | Additional Paid-in Capital | Treasury Stock | (Accumulated Deficit) / Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance (in shares) at Jan. 31, 2023 | 65,404 | |||||||
Beginning balances at Jan. 31, 2023 | $ 858,149 | $ 855,790 | $ 65 | $ 1,055,157 | $ 0 | $ (45,333) | $ (154,099) | $ 2,359 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 3,634 | 3,295 | 3,295 | 339 | ||||
Other comprehensive income (loss) | 8,510 | 8,510 | 8,510 | |||||
Stock-based compensation — equity-classified awards | 13,436 | 13,436 | 13,436 | |||||
Common stock issued for stock awards and stock bonuses (in shares) | 475 | |||||||
Common stock issued for stock awards and stock bonuses | 0 | |||||||
Common stock repurchased and retired (in shares) | (1,593) | |||||||
Common stock repurchased and retired | (60,096) | (60,096) | $ (1) | (60,095) | ||||
Distribution to noncontrolling interest | (245) | (245) | ||||||
Ending balance (in shares) at Apr. 30, 2023 | 64,286 | |||||||
Ending balances at Apr. 30, 2023 | $ 823,388 | 820,935 | $ 64 | 1,008,498 | 0 | (42,038) | (145,589) | 2,453 |
Beginning balance (in shares) at Jan. 31, 2024 | 62,738 | 62,738 | ||||||
Beginning balances at Jan. 31, 2024 | $ 832,666 | 830,049 | $ 63 | 979,671 | 0 | (6,723) | (142,962) | 2,617 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 15,379 | 15,241 | 15,241 | 138 | ||||
Other comprehensive income (loss) | (7,279) | (7,279) | (7,279) | |||||
Stock-based compensation — equity-classified awards | 16,508 | 16,508 | 16,508 | |||||
Common stock issued for stock awards and stock bonuses (in shares) | 410 | |||||||
Common stock issued for stock awards and stock bonuses | 0 | |||||||
Common stock repurchased and retired (in shares) | (1,234) | |||||||
Common stock repurchased and retired | (38,118) | (38,118) | $ (1) | (38,117) | ||||
Distribution to noncontrolling interest | $ (245) | (245) | ||||||
Ending balance (in shares) at Apr. 30, 2024 | 61,914 | 61,914 | ||||||
Ending balances at Apr. 30, 2024 | $ 818,911 | $ 816,401 | $ 62 | $ 958,062 | $ 0 | $ 8,518 | $ (150,241) | $ 2,510 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 15,379 | $ 3,634 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,367 | 17,503 |
Stock-based compensation, excluding cash-settled awards | 18,009 | 14,814 |
Losses on early retirements of debt | 0 | 237 |
Other, net | 179 | 45 |
Changes in operating assets and liabilities, net of effects of business combinations and divestitures: | ||
Accounts receivable | 33,802 | 31,124 |
Contract assets | (4,776) | 1,923 |
Inventories | (2,372) | (937) |
Prepaid expenses and other assets | 1,404 | 21,278 |
Accounts payable and accrued expenses | (2,410) | (6,821) |
Contract liabilities | (12,418) | (19,245) |
Deferred income taxes | 775 | 90 |
Other, net | 1,778 | (3,638) |
Net cash provided by operating activities | 60,717 | 60,007 |
Cash flows from investing activities: | ||
Cash paid for asset acquisitions and business combinations, including adjustments, net of cash acquired | (9,206) | 0 |
Divestitures, net of cash divested | 1,300 | 0 |
Purchases of property and equipment | (3,591) | (4,923) |
Maturities and sales of investments | 228 | 232 |
Purchases of investments | (330) | (3,180) |
Cash paid for capitalized software development costs | (2,538) | (1,868) |
Change in restricted bank time deposits, and other investing activities, net | 2 | (1,019) |
Net cash used in investing activities | (14,135) | (10,758) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 0 | 100,000 |
Repayments of borrowings and other financing obligations | (553) | (100,530) |
Purchases of treasury stock and common stock for retirement | (37,095) | (60,294) |
Preferred stock dividend payments | (10,400) | (10,400) |
Distributions paid to noncontrolling interest | (245) | (245) |
Payments of contingent consideration for business combinations (financing portion) | (2,658) | (18) |
Cash received for contingent consideration for business divestitures (financing portion) and other financing activities | 214 | 1 |
Net cash used in financing activities | (50,737) | (71,486) |
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents | (848) | 859 |
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents | (5,003) | (21,378) |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 242,669 | 282,161 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ 237,666 | $ 260,783 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2024 | Apr. 30, 2023 |
Cash and cash equivalents | $ 236,592 | $ 260,719 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 237,666 | 260,783 |
Prepaid expenses and other current assets | ||
Restricted cash and cash equivalents | 1,074 | 6 |
Other assets | ||
Restricted cash and cash equivalents | $ 0 | $ 58 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Unless the context otherwise requires, the terms “Verint”, “we”, “us”, and “our” in these notes to condensed consolidated financial statements refer to Verint Systems Inc. and its consolidated subsidiaries. Verint is a leader in customer experience (“CX”) automation. The world’s most iconic brands – including more than 80 of the Fortune 100 companies – use the Verint Open Platform and our team of AI-powered bots to deliver tangible AI business outcomes across the enterprise. Verint is uniquely positioned to help brands increase CX automation with our differentiated AI-powered Open Platform. Brands today are challenged to delight their customers while facing limited budgets and resources. As a result, organizations are turning to AI-powered platforms specifically designed for the customer engagement domain to increase the level of their CX automation rather than hire additional employees. Verint is headquartered in Melville, New York, and has approximately 15 offices worldwide, in addition to a number of on-demand, flexible coworking spaces. We have approximately 3,700 employees plus a few hundred contractors around the globe focused on helping brands increase CX automation. Apax Convertible Preferred Stock Investment On December 4, 2019, we announced that an affiliate (the “Apax Investor”) of Apax Partners (“Apax”) would make an investment in us in an amount of up to $400.0 million. Under the terms of the Investment Agreement, dated as of December 4, 2019 (the “Investment Agreement”), on May 7, 2020, the Apax Investor purchased $200.0 million of our Series A convertible preferred stock (“Series A Preferred Stock”). On February 1, 2021, we completed the spin-off (the “Spin-Off”) of Cognyte Software Ltd. (“Cognyte”), a company limited by shares incorporated under the laws of the State of Israel whose business and operations consist of our former Cyber Intelligence Solutions business. In connection with the completion of the Spin-Off, on April 6, 2021, the Apax Investor purchased $200.0 million of our Series B convertible preferred stock (the “Series B Preferred Stock” and together with the Series A Preferred Stock, the “Preferred Stock”). As of April 30, 2024, Apax’s ownership in us on an as-converted basis was approximately 13.5%. Please refer to Note 9, “Convertible Preferred Stock” for a more detailed discussion of the Apax investment. Preparation of Condensed Consolidated Financial Statements The condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2024 filed with the U.S. Securities and Exchange Commission (“SEC”). The condensed consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for the periods ended April 30, 2024 and 2023, and the condensed consolidated balance sheet as of April 30, 2024, are not audited but reflect all adjustments that, in the opinion of management, are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown. The condensed consolidated balance sheet as of January 31, 2024 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2024. Certain information and disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and disclosures required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2024 filed with the SEC. The results for interim periods are not necessarily indicative of a full year’s results. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Verint Systems Inc., and our wholly owned or otherwise controlled subsidiaries. Noncontrolling interests in less than wholly owned subsidiaries are reflected within stockholders’ equity on our condensed consolidated balance sheet, but separately from our stockholders’ equity. Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment. We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Key estimates in the accompanying condensed consolidated financial statements include, among others, revenue recognition, allowances for doubtful accounts, determining the fair value of assets and liabilities assumed in business combinations, recoverability of goodwill, amortization of intangibles, evaluation of contingencies, and the accounting for income taxes. Actual results could differ from those estimates. Significant Accounting Policies There have been no material changes in our significant accounting policies during the three months ended April 30, 2024, as compared to the significant accounting policies described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2024. Recently Adopted Accounting Pronouncements There have been no recently adopted accounting pronouncements since the filing of our Annual Report on Form 10-K for the year ended January 31, 2024 that may have a material impact on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require public companies to report incremental segment information on an annual and interim basis, including enhanced disclosures of significant segment expenses included within each reported measure of segment profit or loss. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. We plan to adopt ASU No. 2023-07 effective for the annual report on Form 10-K for the year ending January 31, 2025 and subsequent interim periods, and are currently evaluating the impact of this standard on our condensed consolidated financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require greater disaggregation of a reporting entity’s effective tax rate reconciliation as well as income taxes paid. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statement disclosures. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION We derive our revenue primarily from providing customers the right to access our cloud-based solutions, the right to use our software for an indefinite or specified period of time, and related services and support based on when access or control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transactions, including mandatory government charges that are passed through to our customers. We determine revenue recognition through the following five steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Disaggregation of Revenue The following table provides a disaggregation of our recurring and nonrecurring revenue. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions. • Recurring revenue primarily consists of: ◦ Software as a service (“SaaS”) revenue, which consists predominately of bundled SaaS (software access rights with standard managed services) and unbundled SaaS (software licensing rights accounted for as term-based licenses whereby customers have a license to our software with related support for a specific period). ▪ Bundled SaaS revenue is recognized over time. ▪ Unbundled SaaS revenue is recognized at a point in time, except for the related support which is recognized over time. Unbundled SaaS contracts are eligible for renewal after the initial fixed term, which in most cases is between a one ◦ Optional managed services revenue. ◦ Support revenue, which consists of initial and renewal support on our perpetual licenses. • Nonrecurring revenue primarily consists of our perpetual licenses, hardware, installation services, business advisory consulting and training services, and patent license royalties. Three Months Ended (in thousands) 2024 2023 Recurring revenue: Bundled SaaS revenue $ 65,695 $ 59,453 Unbundled SaaS revenue 75,288 57,695 Total SaaS revenue 140,983 117,148 Optional managed services revenue 5,168 12,865 Support revenue 27,377 36,426 Total recurring revenue 173,528 166,439 Nonrecurring revenue: Perpetual revenue 24,900 24,334 Professional services and other revenue 22,849 25,793 Total nonrecurring revenue 47,749 50,127 Total revenue $ 221,277 $ 216,566 Contract Balances The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers: (in thousands) April 30, 2024 January 31, 2024 Accounts receivable, net $ 155,903 $ 190,461 Contract assets, net $ 71,490 $ 66,913 Long-term contract assets, net (included in other assets) $ 38,115 $ 31,379 Contract liabilities $ 242,478 $ 254,437 Long-term contract liabilities $ 9,394 $ 10,581 We receive payments from customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time. The majority of our contract assets represent unbilled amounts related to multi-year unbundled SaaS contracts and arrangements where our right to consideration is subject to the contractually agreed upon billing schedule. We expect billing and collection of a majority of our contract assets to occur within the next twelve months and asset impairment charges related to contract assets were immaterial in the three months ended April 30, 2024 and 2023. As of April 30, 2024, two partners, both authorized global resellers of our solutions, accounted for more than 10% of our aggregated accounts receivable and contract assets; Partner A was approximately 13% and Partner B was approximately 14%. As of January 31, 2024, Partner A and Partner B each accounted for approximately 14% of our aggregated accounts receivable and contract assets. Credit losses relating to these customers have historically been immaterial. Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract. Revenue recognized during the three months ended April 30, 2024 and 2023 from amounts included in contract liabilities at the beginning of each period was $99.1 million and $101.5 million, respectively. Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of one We elected to exclude amounts of variable consideration attributable to sales- or usage-based royalties in exchange for a license of our IP from the remaining performance obligations. The timing and amount of revenue recognition for our remaining performance obligations are influenced by several factors, including seasonality, the timing of renewals, the timing of delivery of software licenses, the average length of the contract terms, and foreign currency exchange rates. The following table provides information about when we expect to recognize our remaining performance obligations: (in thousands) April 30, 2024 January 31, 2024 Remaining performance obligations: Expected to be recognized within 1 year $ 437,659 $ 464,600 Expected to be recognized in more than 1 year 279,785 279,702 Total remaining performance obligations $ 717,444 $ 744,302 |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. | NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. The following table summarizes the calculation of basic and diluted net income (loss) per common share attributable to Verint Systems Inc. for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands, except per share amounts) 2024 2023 Net income $ 15,379 $ 3,634 Net income attributable to noncontrolling interests 138 339 Net income attributable to Verint Systems Inc. 15,241 3,295 Dividends on preferred stock (5,200) (5,200) Net income (loss) attributable to Verint Systems Inc. for basic net loss per common share 10,041 (1,905) Dilutive effect of dividends on preferred stock — — Net income (loss) attributable to Verint Systems Inc. for diluted net income (loss) per common share $ 10,041 $ (1,905) Weighted-average shares outstanding: Basic 62,335 64,940 Three Months Ended (in thousands, except per share amounts) 2024 2023 Dilutive effect of employee equity award plans 510 — Dilutive effect of 2021 Notes — — Dilutive effect of assumed conversion of preferred stock — — Diluted 62,845 64,940 Net income (loss) per common share attributable to Verint Systems Inc.: Basic $ 0.16 $ (0.03) Diluted $ 0.16 $ (0.03) We excluded the following weighted-average potential common shares from the calculations of diluted net income (loss) per common share during the applicable periods because their inclusion would have been anti-dilutive: Three Months Ended (in thousands) 2024 2023 Common shares excluded from calculation: Restricted and performance stock-based awards 1,733 2,080 Series A Preferred Stock 5,498 5,498 Series B Preferred Stock 3,980 3,980 In periods for which we report a net loss attributable to Verint Systems Inc. common shares, basic net loss per common share and diluted net loss per common share are identical since the effect of all potential common shares is anti-dilutive and therefore excluded. For the three months ended April 30, 2024, the average price of our common stock did not exceed the $62.08 per share conversion price of our 2021 Notes, and other requirements for the 2021 Notes (as defined in Note 7, “Long-Term Debt”), to be convertible were not met. The 2021 Notes will have a dilutive impact on net income per common share at any time when the average market price of our common stock for a quarterly reporting period exceeds the conversion price. The Capped Calls (as defined in Note 7, “Long-Term Debt”) do not impact our diluted earnings per common share calculations as their effect would be anti-dilutive. The Capped Calls are generally intended to reduce the potential dilution to our common stock upon any conversion of the 2021 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2021 Notes, in the event that at the time of conversion our common stock price exceeds the $62.08 conversion price, with such reduction and/or offset subject to a cap of $100.00. Further details regarding the 2021 Notes and Capped Calls appear in Note 7, “Long-Term Debt”. The weighted-average common shares underlying the assumed conversion of the Preferred Stock, on an as-converted basis, were excluded from the calculations of diluted net income (loss) per common share for the three months ended April 30, 2024 and 2023, as their effect would have been anti-dilutive. Further details regarding the Preferred Stock investment appear in Note 9, “Convertible Preferred Stock”. |
CASH, CASH EQUIVALENTS, AND SHO
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS | 3 Months Ended |
Apr. 30, 2024 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS | CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS The following tables summarize our cash, cash equivalents, and short-term investments as of April 30, 2024 and January 31, 2024: April 30, 2024 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 184,041 $ — $ — $ 184,041 Money market funds 52,053 — — 52,053 U.S. Treasury bills 498 — — 498 Total cash and cash equivalents $ 236,592 $ — $ — $ 236,592 Short-term investments: Bank time deposits $ 785 $ — $ — $ 785 Total short-term investments $ 785 $ — $ — $ 785 January 31, 2024 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 155,504 $ — $ — $ 155,504 Money market funds 85,647 — — 85,647 U.S. Treasury Bills 249 — — 249 Total cash and cash equivalents $ 241,400 $ — $ — $ 241,400 Short-term investments: Bank time deposits $ 686 $ — $ — $ 686 Total short-term investments $ 686 $ — $ — $ 686 Bank time deposits which are reported within short-term investments consist of deposits held outside of the United States with maturities of greater than 90 days, or without specified maturity dates which we intend to hold for periods in excess of 90 days. All other bank deposits are included within cash and cash equivalents. |
BUSINESS COMBINATIONS, ASSET AC
BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES | 3 Months Ended |
Apr. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES | BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES Three Months Ended April 30, 2024 During the three months ended April 30, 2024, we completed the acquisition of an AI-powered analytics company, including fourteen employees. Pursuant to the terms of the purchase agreement, the purchase price consisted of $8.8 million of cash paid at closing, contingent consideration with an estimated fair value of $3.4 million, and the acquisition date fair value of our previously held investment via a simple agreement for future equity (“SAFE”), which was approximately $1.7 million. Further discussion regarding this SAFE investment appears in Note 12, “Fair Value Measurements”. We recognized intangible assets of $5.2 million for developed technology, $0.2 million for the acquired customer relationships, and goodwill of $8.3 million. The acquisition qualified as a stock transaction for tax purposes. This transaction was not material to our condensed consolidated financial statements, and as a result, additional business combination disclosures for this acquisition have been omitted. Year Ended January 31, 2024 During the year ended January 31, 2024, we completed the acquisition of a provider of solutions for workforce scheduling automation, including three employees. This transaction resulted in increases to goodwill, customer relationships, and acquired technology intangible assets, but was not material to our condensed consolidated financial statements, and as a result, additional business combination disclosures for this acquisition have been omitted. Revenue and net income (loss) attributable to this acquisition for the three months ended April 30, 2024 was not material. Other Business Combination Information For the three months ended April 30, 2024 and 2023, we recorded a benefit of $0.4 million and a charge of $0.2 million, respectively, within selling, general and administrative expenses Payments of contingent consideration earned under these agreements were $3.3 million and $0.3 million for the three months ended April 30, 2024 and 2023, respectively. Asset Acquisition In July 2023, we entered into an agreement to acquire source code that qualified as an asset acquisition and made an initial deposit payment of $1.0 million upon the execution of the contract and incurred direct transaction costs related to such asset acquisition of $0.2 million. The agreement also stipulates the establishment of additional milestone payments totaling $3.0 million, of which $2.0 million was deposited into a third-party escrow account in connection with the closing of the transaction. These milestone payments are contingent upon the successful delivery of the source code and the attainment of specific developmental objectives subject to reduction by certain amounts paid under a separate transition services agreement entered into by the parties. During the year ended January 31, 2024, we made $1.8 million in milestone payments to the seller, of which $0.8 million was released from the escrow account upon the achievement of certain source code delivery and integration milestones. During the three months ended April 30, 2024, we made an additional $0.2 million integration milestone payment to the seller, which was released from the escrow account. The remaining $1.0 million of milestone payments remains in the third-party escrow account, is classified as restricted cash, and is included in prepaid expenses and other current assets on our condensed consolidated balance sheet as of April 30, 2024. The transaction also provides for additional consideration that is contingent upon achieving certain performance targets for the years ending January 31, 2025 and 2026 of up to $5.0 million, with a minimum of $2.0 million guaranteed over the period, contingent upon achieving the milestones outlined above by the agreed upon dates, plus the opportunity to receive additional payments from us based on any revenue we receive from sales of products based on the acquired technology in adjacent markets. During the three months ended April 30, 2024, we made a $0.3 million noncontingent prepayment against the first period earn-out. Contingent consideration is not recorded in an asset acquisition until the contingency is resolved (when the contingent consideration is paid or becomes payable) or when probable and reasonably estimable. Divestitures On January 31, 2024, we completed the sale of a services business for manual quality managed services. We sold the business to the former managers, who were our employees. Today, our platform includes an AI-powered solution for automating the quality monitoring process. We expect our customers to adopt AI over time and believe that a people centric managed services offering is no longer core to our offering. We estimated the sale price under the sale agreement to be $6.0 million based on (i) the estimated fair value of our share of the future adjusted operating income (as defined in the sale agreement) of the business, to be paid annually over a minimum of six years following the transaction closing date, (ii) the amount by which the closing working capital of the business exceeds the working capital target, and (iii) the estimated amount of future collections of outstanding receivables as of the closing date from a certain customer, net of certain expenses. We determined the estimated fair value of the contingent consideration with the assistance of a third-party valuation specialist and estimates made by management. During the three months ended January 31, 2024, we recognized a pre-tax loss on the sale of $9.7 million, which was recorded as part of selling, general, and administrative expenses in our consolidated statement of operations, and included $0.8 million of cumulative foreign translation loss that was released from accumulated other comprehensive loss and divestiture-related expenses were not material. As part of the transaction, we divested $6.5 million of cash, most of which was intended as reimbursement for certain liabilities assumed by the buyer, as well as $1.0 million of tangible net assets, $0.5 million of intangible assets, and $6.8 million of goodwill. The divested services business generated $6.8 million of revenue during the three months ended April 30, 2023, and several hundred employees dedicated to this managed services business were transferred or terminated as part of the transaction. During the three months ended April 30, 2024, we received $1.5 million of the outstanding receivables as of the closing date. In March 2023, we completed the sale of an insignificant product line that we inherited as part of a legacy acquisition and that no longer fit with our current business priorities or strategic direction. The total consideration for the sale was $0.7 million, which is payable to us in three equal installments through March 2025, the first installment of which was received in July 2023, and the second installment of which was received in February 2024. The transaction reduced goodwill by $0.3 million and intangible assets by $0.2 million and resulted in a gain of approximately $0.2 million during the three months ended April 30, 2023. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Acquisition-related intangible assets, excluding certain intangible assets previously acquired that were fully amortized and intangible assets of the businesses we divested which were removed from our condensed consolidated balance sheets, consisted of the following as of April 30, 2024 and January 31, 2024: April 30, 2024 (in thousands) Cost Accumulated Net Intangible assets with finite lives: Customer relationships $ 453,183 $ (413,670) $ 39,513 Acquired technology 236,203 (217,310) 18,893 Trade names 3,725 (3,681) 44 Distribution network 2,440 (2,440) — Total intangible assets $ 695,551 $ (637,101) $ 58,450 January 31, 2024 (in thousands) Cost Accumulated Net Intangible assets with finite lives: Customer relationships $ 455,184 $ (412,587) $ 42,597 Acquired technology 231,815 (217,006) 14,809 Trade names 3,727 (3,667) 60 Distribution network 2,440 (2,440) — Total intangible assets $ 693,166 $ (635,700) $ 57,466 Total amortization expense recorded for acquisition-related intangible assets was $4.4 million and $8.3 million for the three months ended April 30, 2024 and 2023, respectively. The reported amount of net acquisition-related intangible assets can fluctuate from the impact of changes in foreign currency exchange rates on intangible assets not denominated in U.S. dollars. Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows: (in thousands) Years Ending January 31, Amount 2025 (remainder of year) $ 13,451 2026 17,419 2027 13,652 2028 8,849 2029 3,968 2030 and thereafter 1,111 Total $ 58,450 There were no impairments of acquired intangible assets during the three months ended April 30, 2024 and 2023. Goodwill activity for the three months ended April 30, 2024 was as follows: (in thousands) Amount Three Months Ended April 30, 2024: Goodwill, gross, at January 31, 2024 $ 1,408,758 Accumulated impairment losses through January 31, 2024 (56,043) Goodwill, net, at January 31, 2024 1,352,715 Foreign currency translation and other (6,123) Business combinations 8,341 Goodwill, net, at April 30, 2024 $ 1,354,933 Balance at April 30, 2024 Goodwill, gross, at April 30, 2024 $ 1,410,976 Accumulated impairment losses through April 30, 2024 (56,043) Goodwill, net, at April 30, 2024 $ 1,354,933 No events or circumstances indicating the potential for goodwill impairment were identified during the three months ended April 30, 2024. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Apr. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table summarizes our long-term debt at April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 2021 Notes $ 315,000 $ 315,000 Revolving Credit Facility 100,000 100,000 Less: unamortized debt discounts and issuance costs (3,635) (4,035) Total debt 411,365 410,965 Less: current maturities — — Long-term debt $ 411,365 $ 410,965 2021 Notes On April 9, 2021, we issued $315.0 million in aggregate principal amount of 0.25% convertible senior notes due April 15, 2026 (the “2021 Notes”), unless earlier converted by the holders pursuant to their terms. The 2021 Notes are unsecured and pay interest in cash semiannually in arrears at a rate of 0.25% per annum. We used a portion of the net proceeds from the issuance of the 2021 Notes to pay the costs of the Capped Calls described below. We also used a portion of the net proceeds from the issuance of the 2021 Notes, together with the net proceeds from the April 6, 2021 issuance of $200.0 million of Series B Preferred Stock, to repay a portion of the outstanding indebtedness under our Credit Agreement described below, to terminate an interest rate swap, and to repurchase shares of our common stock. The remainder is being used for working capital and other general corporate purposes. The 2021 Notes are convertible into shares of our common stock at an initial conversion rate of 16.1092 shares per $1,000 principal amount of 2021 Notes, which represents an initial conversion price of approximately $62.08 per share, subject to adjustment upon the occurrence of certain events, and subject to customary anti-dilution adjustments. Prior to January 15, 2026, the 2021 Notes will be convertible only upon the occurrence of certain events and during certain periods, and will be convertible thereafter at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2021 Notes. Upon conversion of the 2021 Notes, holders will receive cash up to the aggregate principal amount, with any remainder to be settled with cash or common stock, or a combination thereof, at our election. As of April 30, 2024, the 2021 Notes were not convertible. We incurred approximately $8.9 million of issuance costs in connection with the 2021 Notes, which were deferred and are presented as a reduction of long-term debt, and which are being amortized as interest expense over the term of the 2021 Notes. Including the impact of the deferred debt issuance costs, the effective interest rate on the 2021 Notes was approximately 0.83% at April 30, 2024. Based on the closing market price of our common stock on April 30, 2024, the if-converted value of the 2021 Notes was less than their aggregate principal amount. Capped Calls In connection with the issuance of the 2021 Notes, on April 6, 2021 and April 8, 2021, we entered into capped call transactions (the “Capped Calls”) with certain counterparties. The Capped Calls are generally intended to reduce the potential dilution to our common stock upon any conversion of the 2021 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2021 Notes, in the event that at the time of conversion our common stock price exceeds the conversion price, with such reduction and/or offset subject to a cap. The Capped Calls exercise price is equal to the $62.08 initial conversion price of each of the 2021 Notes, and the cap price is $100.00, each subject to certain adjustments under the terms of the Capped Calls. Our exercise rights under the Capped Calls generally trigger upon conversion of the 2021 Notes, and the Capped Calls terminate upon maturity of the 2021 Notes, or the first day the 2021 Notes are no longer outstanding. As of April 30, 2024, no Capped Calls have been exercised. Pursuant to their terms, the Capped Calls qualify for classification within stockholders’ equity, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $41.1 million for the Capped Calls, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital. Credit Agreement On June 29, 2017, we entered into a credit agreement with certain lenders and terminated a prior credit agreement. The credit agreement was amended in 2018, 2020, 2021, and 2023, as further described below (as amended, the “Credit Agreement”). The Credit Agreement provides for $725.0 million of senior secured credit facilities, comprised of a $425.0 million term loan that was scheduled to mature on June 29, 2024 (the “Term Loan”) prior to being repaid by us in full, and a $300.0 million revolving credit facility maturing on April 9, 2026 (the “Revolving Credit Facility”). The Revolving Credit Facility replaced our prior $300.0 million revolving credit facility (the “Prior Revolving Credit Facility”) and is subject to increase and reduction from time to time according to the terms of the Credit Agreement. The majority of the proceeds from the Term Loan were used to repay all outstanding term loans under our prior credit agreement. Optional prepayments of loans under the Credit Agreement are generally permitted without premium or penalty. During the three months ended April 30, 2021, in addition to our regular quarterly $1.1 million principal payment, we repaid $309.0 million of our Term Loan, reducing the outstanding principal balance to $100.0 million. On April 27, 2023, we repaid the remaining $100.0 million outstanding principal balance on our Term Loan utilizing proceeds from borrowings under our Revolving Credit Facility, along with $0.5 million of accrued interest thereon. As a result, $0.2 million of combined deferred debt issuance costs and unamortized discount associated with the Term Loan were written off and were included within interest expense on our condensed consolidated statement of operations for the three months ended April 30, 2023. Interest rates on loans under the Credit Agreement are periodically reset, at our option, originally at either a Eurodollar Rate (which was derived from LIBOR) or an alternative base rate (“ABR”) (each as defined in the Credit Agreement), plus in each case a margin. On May 10, 2023, we entered into an amendment to the Credit Agreement (the “Fourth Amendment”) related to the phase-out of LIBOR by the UK Financial Conduct Authority. Effective July 1, 2023, borrowings under the Credit Agreement bear interest, at our option, at either: (i) the ABR, plus the applicable margin therefor or (ii) the adjusted Term Secured Overnight Financing Rate published by the CME Term SOFR Administrator (as more fully defined and set forth in the Credit Agreement, “Adjusted Term SOFR”), plus the applicable margin therefor. The applicable margin in each case is determined based on our Leverage Ratio (as defined below) and ranges from 0.25% to 1.25% for borrowings bearing interest at the ABR and from 1.25% to 2.25% for borrowings bearing interest based on Adjusted Term SOFR. Borrowings outstanding under the Revolving Credit Facility were $100.0 million at April 30, 2024 and January 31, 2024, which is included in long-term debt on our condensed consolidated balance sheet. For borrowings under the Revolving Credit Facility, the applicable margin is determined by reference to our Consolidated Total Debt to Consolidated EBITDA (each as defined in the Credit Agreement) leverage ratio (the "Leverage Ratio"). As of April 30, 2024, the interest rate on our Revolving Credit Facility borrowings was 6.93%. In addition, we are required to pay a commitment fee with respect to unused availability under the Revolving Credit Facility at rates per annum determined by reference to our Leverage Ratio. The proceeds of borrowings under the Revolving Credit Facility may be used for working capital and general corporate purposes, including for permitted acquisitions and permitted stock repurchases, and the repayment of term loans, if any. Our obligations under the Credit Agreement are guaranteed by each of our direct and indirect existing and future material domestic wholly owned restricted subsidiaries, and are secured by a security interest in substantially all of our assets and the assets of the guarantor subsidiaries, subject to certain exceptions. The Credit Agreement contains certain customary affirmative and negative covenants for credit facilities of this type. The Credit Agreement also contains a financial covenant that, solely with respect to the Revolving Credit Facility, requires us to maintain a Leverage Ratio of no greater than 4.50 to 1. The limitations imposed by the covenants are subject to certain exceptions as detailed in the Credit Agreement. The Credit Agreement provides for events of default with corresponding grace periods that we believe are customary for credit facilities of this type. Upon an event of default, all of our obligations owed under the Credit Agreement may be declared immediately due and payable, and the lenders’ commitments to make loans under the Credit Agreement may be terminated. Deferred debt issuance costs associated with the Term Loan were amortized using the effective interest rate method, and deferred debt issuance costs associated with the Revolving Credit Facility are being amortized on a straight-line basis. Interest Expense The following table presents the components of interest expense incurred on the 2021 Notes and on borrowings under our Credit Agreement, for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 2021 Notes: Interest expense at 0.25% coupon rate $ 197 $ 197 Amortization of deferred debt issuance costs 446 443 Total Interest Expense — 2021 Notes $ 643 $ 640 Borrowings under Credit Agreement: Interest expense at contractual rates $ 1,736 $ 1,650 Amortization of deferred debt issuance costs 172 204 Amortization of debt discounts — 5 Losses on early retirements of debt — 237 Total Interest Expense — Borrowings under Credit Agreement $ 1,908 $ 2,096 |
SUPPLEMENTAL CONDENSED CONSOLID
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Apr. 30, 2024 | |
Condensed Financial Information Disclosure [Abstract] | |
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION | SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION Condensed Consolidated Balance Sheets Inventories consisted of the following as of April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 Raw materials $ 5,813 $ 4,402 Work-in-process 487 69 Finished goods 10,289 9,738 Total inventories $ 16,589 $ 14,209 Accrued expenses and other current liabilities consisted of the following as of April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 Accrued bonus $ 30,057 $ 25,816 Other 92,334 111,617 Total accrued expenses and other current liabilities $ 122,391 $ 137,433 Other liabilities consisted of the following as of April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 Unrecognized tax benefits, including interest and penalties $ 72,589 $ 71,330 Other 16,303 14,290 Total other liabilities $ 88,892 $ 85,620 Condensed Consolidated Statements of Operations Other (expense) income, net consisted of the following for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Foreign currency (losses) gains, net $ (537) $ 237 Other, net 39 (213) Total other (expense) income, net $ (498) $ 24 Condensed Consolidated Statements of Cash Flows The following table provides supplemental information regarding our condensed consolidated cash flows for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Cash paid for interest $ 2,210 $ 2,513 Cash payments of income taxes, net $ 6,298 $ 3,758 Cash payments for operating leases $ 2,037 $ 1,640 Non-cash investing and financing transactions: Finance leases of property and equipment $ 634 $ 212 Accrued but unpaid purchases of property and equipment $ 1,081 $ 360 Liabilities for contingent consideration in business combinations $ 3,397 $ — Accrued but unpaid purchases of treasury stock $ 773 $ — Excise tax on share repurchases $ 250 $ 417 |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
CONVERTIBLE PREFERRED STOCK | CONVERTIBLE PREFERRED STOCK On December 4, 2019, we entered into the Investment Agreement with the Apax Investor whereby, subject to certain closing conditions, the Apax Investor agreed to make an investment in us in an amount up to $400.0 million as follows: • On May 7, 2020, we issued a total of 200,000 shares of our Series A Preferred Stock for an aggregate purchase price of $200.0 million, or $1,000 per share, to the Apax Investor. In connection therewith, we incurred direct and incremental costs of $2.7 million, including financial advisory fees, closing costs, legal fees, and other offering-related costs. These direct and incremental costs reduced the carrying amount of the Series A Preferred Stock. • In connection with the completion of the Spin-Off, on April 6, 2021, we issued a total of 200,000 shares of our Series B Preferred Stock for an aggregate purchase price of $200.0 million, or $1,000 per share, to the Apax Investor. In connection therewith, we incurred direct and incremental costs of $1.3 million, including financial advisory fees, closing costs, legal fees, and other offering-related costs. These direct and incremental costs reduced the carrying amount of the Series B Preferred Stock. Each of the rights, preferences, and privileges of the Series A Preferred Stock and Series B Preferred Stock are set forth in separate certificates of designation filed with the Secretary of State of the State of Delaware on the applicable issuance date. Voting Rights Holders of the Preferred Stock have the right to vote on matters submitted to a vote of the holders of our common stock, on an as-converted basis; however, in no event will the holders of Preferred Stock have the right to vote shares of the Preferred Stock on an as-converted basis in excess of 19.9% of the voting power of the common stock outstanding immediately prior to December 4, 2019. Dividends and Liquidation Rights The Preferred Stock ranks senior to the shares of our common stock with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of our affairs. Shares of Preferred Stock have a liquidation preference of the greater of $1,000 per share or the amount that would be received if the shares are converted at the then applicable conversion price at the time of such liquidation. Each series of Preferred Stock paid dividends at an annual rate of 5.2% until May 7, 2024, and thereafter pays at a rate of 4.0%, subject to adjustment under certain circumstances. Dividends on the Preferred Stock are cumulative and payable semi-annually in arrears in cash. All dividends that are not paid in cash will remain accumulated dividends with respect to each share of Preferred Stock. The dividend rate is subject to increase (i) to 6.0% per annum in the event the number of shares of common stock into which the Preferred Stock could be converted exceeds 19.9% of the voting power of outstanding common stock on December 4, 2019 (unless we obtain shareholder approval of the issuance of common stock upon conversion of the Preferred Stock) and (ii) by 1.0% each year, up to a maximum dividend rate of 10.0% per annum, in the event we fail to satisfy our obligations to redeem the Preferred Stock in specified circumstances. For the three months ended April 30, 2024, we paid $10.4 million of preferred stock dividends, all of which was accrued as of January 31, 2024, and there were $6.9 million of cumulative undeclared and unpaid preferred stock dividends at April 30, 2024. There were no accrued dividends as of April 30, 2024. We reflected $5.2 million of preferred stock dividends in our condensed consolidated results of operations, for purposes of computing net income (loss) attributable to Verint Systems Inc. common shares, for each of the three months ended April 30, 2024 and 2023. Conversion The Series A Preferred Stock was initially convertible into common stock at the election of the holder, subject to certain conditions, at an initial conversion price of $53.50 per share. The initial conversion price represented a conversion premium of 17.1% over the volume-weighted average price per share of our common stock over the 45 consecutive trading days immediately prior to December 4, 2019. In accordance with the Investment Agreement, the Series A Preferred Stock did not participate in the Spin-Off distribution of the Cognyte shares, which occurred on February 1, 2021, and the Series A Preferred Stock conversion price was instead adjusted to $36.38 per share based on the ratio of the relative trading prices of Verint and Cognyte following the Spin-Off. The Series B Preferred Stock is convertible at a conversion price of $50.25, based in part on our trading price over the 20-day trading period following the Spin-Off. As of April 30, 2024, the maximum number of shares of common stock that could be required to be issued upon conversion of the outstanding shares of Preferred Stock was approximately 9.6 million shares and Apax’s ownership in us on an as-converted basis was approximately 13.5%. Beginning May 7, 2023, in the case of the Series A Preferred Stock, and April 6, 2024, in the case of the Series B Preferred Stock, we have the option to require that all (but not less than all) of the then-outstanding shares of Preferred Stock of the series convert into common stock if the volume-weighted average price per share of the common stock for at least 30 trading days in any 45 consecutive trading day period exceeds 175% of the then-applicable conversion price of such series (a “Mandatory Conversion”). As of April 30, 2024, the volume-weighted average price per share of common stock has not exceeded 175% of the $36.38 conversion price of the Series A Preferred Stock or the $50.25 conversion price of the Series B Preferred Stock. We may redeem any or all of the Preferred Stock of a series for cash at any time after May 7, 2026, in the case of the Series A Preferred Stock, and April 6, 2027, in the case of the Series B Preferred Stock, at a redemption price equal to 100% of the liquidation preference of the shares of the Preferred Stock, plus any accrued and unpaid dividends to, but excluding, the redemption date, plus a make-whole amount designed to allow the Apax Investor to earn a total 8.0% internal rate of return on such shares. The Preferred Stock may not be sold or transferred without our prior written consent. The common stock issuable upon conversion of the Preferred Stock is not subject to this restriction. The restriction on the sale or transfer of the Preferred Stock does not apply to certain transfers to one or more permitted co-investors or transfers or pledges of the Preferred Stock pursuant to the terms of specified margin loans entered into by the Apax Investor as well as transfers effected pursuant to a merger, consolidation, or similar transaction consummated by us and transfers that are approved by our board of directors. At any time after November 7, 2028, in the case of the Series A Preferred Stock, and October 6, 2029, in the case of the Series B Preferred Stock, or upon the occurrence of a change of control triggering event (as defined in the certificates of designation), the holders of the applicable series of Preferred Stock will have the right to cause us to redeem all of the outstanding shares of Preferred Stock for cash at a redemption price equal to 100% of the liquidation preference of the shares of such series, plus any accrued and unpaid dividends to, but excluding, the redemption date. Therefore, the Preferred Stock has been classified as temporary equity on our condensed consolidated balance sheets as of April 30, 2024 and January 31, 2024, separate from permanent equity, as the potential required repurchase of the Preferred Stock, however remote in likelihood, is not solely under our control. As of April 30, 2024, the Preferred Stock was not redeemable, and we have concluded that it is currently not probable of becoming redeemable, including from the occurrence of a change in control triggering event. The holders’ redemption rights which occur at November 7, 2028, in the case of the Series A Preferred Stock, and October 6, 2029, in the case of the Series B Preferred Stock, are not considered probable because there is a more than remote likelihood that the Mandatory Conversion may occur prior to such redemption rights. We therefore did not adjust the carrying amount of the Preferred Stock to its current redemption amount, which was its liquidation preference at April 30, 2024 plus accrued and unpaid dividends. As of April 30, 2024, the stated value of the liquidation preference for each series of Preferred Stock was $200.0 million and cumulative, unpaid dividends on each series of Preferred Stock was $3.5 million. Future Tranche Right We determined that our obligation to issue and the Apax Investor’s obligation to purchase 200,000 shares of the Series B Preferred Stock in connection with the completion of the Spin-Off and the satisfaction of other customary closing conditions (the “Future Tranche Right”) met the definition of a freestanding financial instrument as the Future Tranche Right is legally detachable and separately exercisable from the Series A Preferred Stock. At issuance, we allocated a portion of the proceeds from the issuance of the Series A Preferred Stock to the Future Tranche Right based upon its fair value at such time, with the remaining proceeds being allocated to the Series A Preferred Stock. The Future Tranche Right was remeasured at fair value each reporting period until the settlement of the right (at the time of the issuance of the Series B Preferred Stock), and changes in its fair value were recognized as a non-cash charge or benefit within other income (expense), net on the condensed consolidated statements of operations. Upon issuance of the Series A Preferred Stock on May 7, 2020, the Future Tranche Right was recorded as an asset of $3.4 million, as the purchase price of the Series B Preferred Stock was greater than its estimated fair value at the expected settlement date. This resulted in a $203.4 million carrying value, before direct and incremental issuance costs, for the Series A Preferred Stock. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock Dividends We did not declare or pay any cash dividends on our common stock during the three months ended April 30, 2024 and 2023. Under the terms of our Credit Agreement, we are subject to certain restrictions on declaring and paying cash dividends on our common stock. Treasury Stock We periodically purchase common stock from our directors, officers, and other employees to facilitate income tax withholding or payments in connection with the vesting of equity awards occurring during a Company-imposed trading blackout or lockup period. Any such repurchases of common stock occur at prevailing market prices and are recorded as treasury stock. When treasury shares are reissued, they are recorded at the average cost of the treasury shares acquired. No treasury stock remained outstanding at April 30, 2024 and January 31, 2024, respectively. Stock Repurchase Programs On December 7, 2022, we announced that our board of directors had authorized a stock repurchase program for the period from December 12, 2022 until January 31, 2025, whereby we may repurchase shares of common stock in an amount not to exceed, in the aggregate, $200.0 million during the repurchase period. During the three months ended April 30, 2024, we repurchased approximately 1,233,000 shares of our common stock for a cost of $38.1 million, including excise tax of $0.3 million, under the current stock repurchase program, as well as an insignificant number of shares to facilitate income tax withholding or payments as described above. During the three months ended April 30, 2024, we retired all 1,234,000 shares, which was recorded as a reduction of common stock and additional paid-in capital. These shares were returned to the status of authorized and unissued shares. Our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act (“IRA”). The excise tax of $0.3 million was recognized as part of the cost basis of shares acquired in the condensed consolidated statements of stockholders’ equity during the three months ended April 30, 2024. Subsequent to April 30, 2024 through May 30, 2024, we repurchased approximately 270,000 shares of our common stock for $8.5 million under this program. During the three months ended April 30, 2023, we repurchased and retired 1,593,000 shares of our common stock for a cost of $60.1 million, including excise tax of $0.4 million. Issuance of Convertible Preferred Stock On December 4, 2019, in conjunction with the planned Spin-Off, we announced that an affiliate of Apax Partners would invest up to $400.0 million in us, in the form of convertible preferred stock. Under the terms of the Investment Agreement, the Apax Investor purchased $200.0 million of our Series A Preferred Stock, which closed on May 7, 2020. In connection with the completion of the Spin-Off, the Apax Investor purchased $200.0 million of our Series B Preferred Stock, which closed on April 6, 2021. As of April 30, 2024, Apax’s ownership in us on an as-converted basis was approximately 13.5%. Please refer to Note 9, “Convertible Preferred Stock” for a more detailed discussion of the Apax investment. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes items such as foreign currency translation adjustments and unrealized gains and losses on derivative financial instruments designated as hedges. Accumulated other comprehensive loss is presented as a separate line item in the stockholders’ equity section of our condensed consolidated balance sheets. Accumulated other comprehensive loss items have no impact on our net income (loss) as presented in our condensed consolidated statements of operations. The following table summarizes changes in the components of our accumulated other comprehensive loss by component for the three months ended April 30, 2024: (in thousands) Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges Foreign Currency Translation Adjustments Total Accumulated other comprehensive income (loss) at January 31, 2024 $ 141 $ (143,103) $ (142,962) Other comprehensive loss before reclassifications (192) (7,060) (7,252) Amounts reclassified out of accumulated other comprehensive loss 27 — 27 Net other comprehensive loss (219) (7,060) (7,279) Accumulated other comprehensive loss at April 30, 2024 $ (78) $ (150,163) $ (150,241) All amounts presented in the table above are net of income taxes, if applicable. The accumulated net losses in foreign currency translation adjustments primarily reflect the strengthening of the U.S. dollar against the British pound sterling, which has resulted in lower U.S. dollar-translated balances of British pound sterling-denominated goodwill and intangible assets. The amounts reclassified out of accumulated other comprehensive loss into the condensed consolidated statements of operations, with presentation location, for the three months ended April 30, 2024 and 2023 were as follows: Three Months Ended (in thousands) 2024 2023 Financial Statement Location Unrealized gains (losses) on derivative financial instruments: Foreign currency forward contracts $ — $ (2) Cost of recurring revenue 3 (20) Cost of nonrecurring revenue 21 (140) Research and development, net 9 (65) Selling, general and administrative 33 (227) Total, before income taxes (6) 39 (Provision for) benefit from income taxes $ 27 $ (188) Total, net of income taxes |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our interim provision for income taxes is measured using an estimated annual effective income tax rate, adjusted for discrete items that occur within the periods presented. For the three months ended April 30, 2024, we recorded an income tax provision of $8.0 million on pretax income of $23.3 million, which represented an effective income tax rate of 34.1%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the U.S. taxation of certain foreign activities, offset by lower statutory rates in certain foreign jurisdictions. For the three months ended April 30, 2023, we recorded an income tax provision of $4.4 million on pretax income of $8.0 million, which represented an effective income tax rate of 54.6%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the U.S. taxation of certain foreign activities, offset by lower statutory rates in certain foreign jurisdictions. We evaluate the realizability of deferred income tax assets on a jurisdictional basis at each reporting date. A valuation allowance is established when it is more-likely-than-not that all or a portion of the deferred income tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred income tax assets are not more-likely-than-not realizable, we establish a valuation allowance. We determined that there is sufficient negative evidence to maintain the valuation allowances against certain state and foreign deferred income tax assets as a result of historical losses in the most recent three-year period in certain state and foreign jurisdictions. We intend to maintain valuation allowances until sufficient positive evidence exists to support a reversal. We had unrecognized income tax benefits of $82.5 million and $83.3 million (excluding interest and penalties) as of April 30, 2024 and January 31, 2024, respectively, that if recognized, would impact our effective income tax rate. The accrued liability for interest and penalties was $7.2 million and $6.4 million at April 30, 2024 and January 31, 2024, respectively. Interest and penalties are recorded as a component of the provision for income taxes in our condensed consolidated statements of operations. We regularly assess the adequacy of our provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes. As a result, we may adjust the reserves for unrecognized income tax benefits for the impact of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities, and lapses of statutes of limitation. Further, we believe that it is reasonably possible that the total amount of unrecognized income tax benefits at April 30, 2024 could decrease by approximately $8.1 million in the next twelve months as a result of settlement of certain tax audits or lapses of statutes of limitation. Such decreases may involve the payment of additional income taxes, the adjustment of deferred income taxes including the need for additional valuation allowances, and the recognition of income tax benefits. Our income tax returns are subject to ongoing tax examinations in several jurisdictions in which we operate. We also believe that it is reasonably possible that new issues may be raised by tax authorities or developments in tax audits may occur, which would require increases or decreases to the balance of reserves for unrecognized income tax benefits; however, an estimate of such changes cannot reasonably be made. The Organization for Economic Co-operation and Development (“OECD”) Pillar 2 guidelines address the increasing digitalization of the global economy, re-allocating taxing rights among countries. The European Union and many other member states have committed to adopting Pillar 2 which calls for a global minimum tax of 15% to be effective for tax years beginning in 2024. Certain jurisdictions in which we operate have enacted Pillar 2 legislation and others are considering changes to their tax laws to adopt the Pillar 2 proposals. We are monitoring developments and evaluating the impacts these new rules will have on our tax rate, including eligibility to qualify for safe harbor rules. We do not currently anticipate that the rules will have a material impact on our income tax provision this year. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of April 30, 2024 and January 31, 2024: April 30, 2024 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 52,053 $ — $ — U.S. Treasury bills, classified as cash and cash equivalents 498 — — Foreign currency forward contracts — 23 — Contingent consideration receivable — — 2,345 Total assets $ 52,551 $ 23 $ 2,345 Liabilities: Foreign currency forward contracts $ — $ 117 $ — Contingent consideration — business combinations — 750 6,182 Total liabilities $ — $ 867 $ 6,182 January 31, 2024 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 85,647 $ — $ — U.S. Treasury bills, classified as cash and cash equivalents 249 — — Foreign currency forward contracts — 183 — Contingent consideration receivable — — 2,685 Total assets $ 85,896 $ 183 $ 2,685 Liabilities: Foreign currency forward contracts $ — $ 11 $ — Contingent consideration — business combinations — 3,750 3,511 Total liabilities $ — $ 3,761 $ 3,511 On January 31, 2024, we completed the sale of a service business for manual quality managed services for no upfront cash consideration. We estimated the sale price under the sale agreement to be $6.0 million based on (i) the estimated fair value of our share of the future adjusted operating income (as defined in the agreement) of the business, to be paid annually over a minimum of six years following the transaction closing date, (ii) the amount by which the closing working capital of the business exceeds the working capital target, and (iii) the estimated amount of future collections of outstanding receivables as of the closing date from a certain customer, net of certain expenses. We determined the estimated fair value of the contingent consideration with the assistance of a third-party valuation specialist and estimates made by management. The fair value of the contingent consideration receivable was $2.3 million as of April 30, 2024, which is included within other assets on our condensed consolidated balance sheets. During the three months ended April 30, 2024, we did not receive any contingent consideration payments, and we recorded a charge of $0.3 million for the change in the estimated fair value of this contingent receivable. The following table presents the changes in the estimated fair values of our liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Fair value measurement at beginning of period $ 3,511 $ 12,717 Contingent consideration liabilities recorded for business combinations 3,397 — Changes in fair values, recorded in operating expenses (433) 220 Payments of contingent consideration (277) (250) Foreign currency translation and other (16) 197 Fair value measurement at end of period $ 6,182 $ 12,884 Our estimated liability for contingent consideration represents potential payments of additional consideration for business combinations, payable if certain defined performance goals are achieved. Changes in fair value of contingent consideration are recorded in the condensed consolidated statements of operations within selling, general and administrative expenses. There were no transfers between levels of the fair value measurement hierarchy during the three months ended April 30, 2024 and 2023. Fair Value Measurements Money Market Funds and U.S. Treasury Bills — We value our money market funds and U.S. treasury bills using quoted active market prices for such instruments. Short-term Investments, Corporate Debt Securities, and Commercial Paper — The fair values of short-term investments, as well as corporate debt securities and commercial paper classified as cash equivalents, are estimated using observable market prices for identical securities that are traded in less-active markets, if available. When observable market prices for identical securities are not available, we value these short-term investments using non-binding market price quotes from brokers which we review for reasonableness using observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model. Foreign Currency Forward Contracts — The estimated fair value of foreign currency forward contracts is based on quotes received from the counterparties thereto. These quotes are reviewed for reasonableness by discounting the future estimated cash flows under the contracts, considering the terms and maturities of the contracts and market foreign currency exchange rates using readily observable market prices for similar contracts. Contingent Consideration Assets and Liabilities — Business Combinations and Divestitures — The fair value of the contingent consideration related to business combinations and divestitures is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. We remeasure the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within selling, general, and administrative expenses. Increases or decreases in discount rates would have inverse impacts on the related fair value measurements, while favorable or unfavorable changes in expectations of achieving performance targets would result in corresponding increases or decreases in the related fair value measurements. We utilized discount rates ranging from 6.1% to 7.0%, with a weighted average discount rate of 6.7% in our calculation of the estimated fair values of our contingent consideration liabilities as of April 30, 2024. We utilized discount rates ranging from 9.6% to 10.8%, with a weighted average discount rate of 9.7% in our calculation of the estimated fair value of our contingent consideration asset as of April 30, 2024. We utilized discount rates ranging from 5.8% to 6.4%, with a weighted average discount rate of 6.2% in our calculations of the estimated fair values of our contingent consideration liabilities as of January 31, 2024. We utilized discount rates ranging from 7.5% to 8.9%, with a weighted average discount rate of 7.8% in our calculation of the estimated fair value of our contingent consideration asset as of January 31, 2024. As of January 31, 2024, $3.8 million of the fair value of the contingent consideration liability was based on actual achievement through the performance periods ended January 31, 2024, and was transferred to Level 2 of the fair value hierarchy as the fair value was determined based on other significant observable inputs. Payments of contingent consideration earned under this agreement were $3.0 million and there was no change in the fair value of the remaining contingent consideration obligation associated with this business combination for the three months ended April 30, 2024. Other Financial Instruments The carrying amounts of accounts receivable, contract assets, accounts payable, and accrued liabilities and other current liabilities approximate fair value due to their short maturities. The estimated fair value of our Revolving Credit Facility borrowing was approximately $99.0 million at April 30, 2024 and January 31, 2024. On April 27, 2023, we repaid in full the remaining $100.0 million outstanding balance on our Term Loan utilizing proceeds from borrowings under our Revolving Credit Facility. The estimated fair value of borrowings under our Revolving Credit Facility is based upon indicative market values provided by one of our lenders. The indicative prices provided to us at April 30, 2024 and January 31, 2024 did not significantly differ from par value. The estimated fair values of our 2021 Notes were approximately $289.0 million and $281.0 million at April 30, 2024 and January 31, 2024, respectively. The estimated fair values of the 2021 Notes were determined based on quoted bid and ask prices in the over-the-counter market in which the 2021 Notes traded. We consider these inputs to be within Level 2 of the fair value hierarchy. Assets and Liabilities Not Measured at Fair Value on a Recurring Basis In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including goodwill, intangible assets, operating lease right-of-use assets, and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized. Investments In March 2023, we invested approximately $1.1 million in a privately-held company via a SAFE. In July 2023, we made a second SAFE investment of $0.5 million, and in January 2024, we made a third SAFE investment of $0.1 million for a total investment of approximately $1.7 million. The SAFE provided that, upon the completion by such company of a qualified equity financing, we would automatically receive the number of shares of capital stock of such company equal to the SAFE purchase amount divided by the Discount Price (as such term is defined in the SAFE). If there was a liquidity event affecting such company, such as a change in control or initial public offering, we would receive a cash payment equal to the greater of (a) the SAFE purchase amount or (b) the amount payable on the number of shares of common stock of such company equal to the SAFE purchase amount divided by the Liquidity Price (as such term is defined in the SAFE). Our investment was carried at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer and was included within other assets on the condensed consolidated balance sheets as of January 31, 2024. During the three months ended April 30, 2024, we completed the acquisition of this company. The approximately $1.7 million acquisition date fair value of the SAFE was included in the measurement of the consideration transferred. The company and its results of operations are now consolidated in our condensed consolidated financial statements, and the SAFE investment has been removed from our condensed consolidated balance sheet as of April 30, 2024. Please refer to Note 5, “Business Combinations, Asset Acquisitions, and Divestitures” for further discussion related to this acquisition. The carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $5.1 million as of April 30, 2024 and January 31, 2024. These investments are included within other assets on the condensed consolidated balance sheets as of April 30, 2024 and January 31, 2024. There were no observable price changes in our investments in privately-held companies during the three months ended April 30, 2024 and 2023. We did not recognize any impairments during the three months ended April 30, 2024 and 2023. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Apr. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk, when deemed appropriate. We enter into these contracts in the normal course of business to mitigate risks and not for speculative purposes. Foreign Currency Forward Contracts Under our risk management strategy, we periodically use foreign currency forward contracts to manage our short-term exposures to fluctuations in operational cash flows resulting from changes in foreign currency exchange rates. These cash flow exposures result from portions of our forecasted operating expenses, primarily compensation and related expenses, which are transacted in currencies other than the U.S. dollar, most notably the Israeli shekel. We also periodically utilize foreign currency forward contracts to manage exposures resulting from forecasted customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency. These foreign currency forward contracts generally have maturities of no longer than twelve months, although occasionally we will execute a contract that extends beyond twelve months, depending upon the nature of the underlying risk. We held outstanding foreign currency forward contracts with notional amounts of $6.3 million as of April 30, 2024 and January 31, 2024. Fair Values of Derivative Financial Instruments The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of April 30, 2024 and January 31, 2024 were as follows: Fair Value at April 30, January 31, (in thousands) Balance Sheet Classification 2024 2024 Derivative assets: Foreign currency forward contracts: Designated as cash flow hedges Prepaid expenses and other current assets $ 23 $ 183 Total derivative assets $ 23 $ 183 Derivative liabilities: Foreign currency forward contracts: Designated as cash flow hedges Accrued expenses and other current liabilities $ 117 $ 11 Total derivative liabilities $ 117 $ 11 Derivative Financial Instruments in Cash Flow Hedging Relationships The effects of derivative financial instruments designated as cash flow hedges on accumulated other comprehensive loss (“AOCL”) and on the condensed consolidated statement of operations for the three months ended April 30, 2024 and 2023 were as follows: Three Months Ended (in thousands) 2024 2023 Net losses recognized in AOCL: Foreign currency forward contracts $ (233) $ (350) Net gains (losses) reclassified from AOCL to the condensed consolidated statements of operations: Foreign currency forward contracts $ 33 $ (227) For information regarding the line item locations of the net gains (losses) on derivative financial instruments reclassified out of AOCL into the condensed consolidated statements of operations, s ee Note 10, “Stockholders’ Equity”. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation Plan On June 22, 2023, our stockholders approved the Verint Systems Inc. 2023 Long-Term Stock Incentive Plan (the “2023 Plan”). Upon approval of the 2023 Plan, new awards were no longer permitted under our prior stock-based compensation plan (the “2019 Plan”). Awards outstanding at June 22, 2023 under the 2019 Plan or other previous stock-based compensation plans were not impacted by the approval of the 2023 Plan. Collectively, our stock-based compensation plans are referred to herein as the “Plans”. The 2023 Plan authorizes our board of directors to provide equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance awards, other stock-based awards, and performance compensation awards. Subject to adjustment as provided in the 2023 Plan, up to an aggregate of (i) 9,000,000 shares of our common stock plus (ii) 3,982,168 shares of our common stock available for issuance under the 2019 Plan as of June 22, 2023, plus (iii) the number of shares of our common stock that become available for issuance as a result of awards made under the 2019 Plan or the 2023 Plan that are forfeited, cancelled, exchanged, or that terminate or expire, may be issued or transferred in connection with awards under the 2023 Plan. Each stock option or stock-settled stock appreciation right granted under the 2023 Plan will reduce the available plan capacity by one share and each other award denominated in shares that is granted under the 2023 Plan will reduce the available plan capacity by 1.9 shares. Stock-Based Compensation Expense We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Cost of revenue — recurring $ 549 $ 296 Cost of revenue — nonrecurring 533 140 Research and development, net 3,543 2,327 Selling, general and administrative 13,396 12,216 Total stock-based compensation expense $ 18,021 $ 14,979 The following table summarizes stock-based compensation expense by type of award for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Restricted stock units and restricted stock awards $ 16,508 $ 13,436 Stock bonus program and bonus share program 1,501 1,378 Total equity-settled awards 18,009 14,814 Phantom stock units (cash-settled awards) 12 165 Total stock-based compensation expense $ 18,021 $ 14,979 Awards are generally subject to multi-year vesting periods. We recognize compensation expense for awards on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods, reduced by estimated forfeitures. Awards under our stock bonus and bonus share programs are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of our common stock, which for a portion of the awards under our stock bonus program is determined using a discounted average price of our common stock. Restricted Stock Units and Performance Stock Units We periodically award RSUs to our directors, officers, and other employees. These awards contain various vesting conditions and are subject to certain restrictions and forfeiture provisions prior to vesting. Some of these awards to executive officers and certain other employees vest upon the achievement of specified performance goals or market conditions (performance stock units or “PSUs”). The following table (“Award Activity Table”) summarizes activity for RSUs, PSUs, and other stock awards that reduce available Plan capacity under the Plans for the three months ended April 30, 2024 and 2023: Three Months Ended April 30, 2024 2023 (in thousands, except grant date fair values) Shares or Units Weighted-Average Grant Date Fair Value Shares or Units Weighted-Average Grant Date Fair Value Beginning balance 2,658 $ 43.29 2,230 $ 52.42 Granted 2,261 $ 29.56 1,665 $ 37.36 Released (410) $ 52.28 (475) $ 50.22 Forfeited (111) $ 55.71 (32) $ 50.63 Ending balance 4,398 $ 35.08 3,388 $ 45.34 With respect to our stock bonus program, the activity presented in the table above only includes shares earned and released in consideration of the discount provided under that program. Consistent with the provisions of the Plans under which such shares are issued, other shares issued under the stock bonus program are not included in the table above because they do not reduce available plan capacity (since such shares are deemed to be purchased by the grantee at fair value in lieu of receiving an earned cash bonus). Activity presented in the table above includes all shares awarded and released under the bonus share program. Further details appear below under “Stock Bonus Program and Bonus Share Program”. Our RSU and PSU awards may include a provision which allows the awards to be settled with cash payments upon vesting, rather than with delivery of common stock, at the discretion of our board of directors. As of April 30, 2024, for such awards that are outstanding, settlement with cash payments was not considered probable, and therefore these awards have been accounted for as equity-classified awards and are included in the table above. The following table summarizes PSU activity in isolation under the Plans for the three months ended April 30, 2024 and 2023 (these amounts are also included in the Award Activity Table above for 2024 and 2023): Three Months Ended (in thousands) 2024 2023 Beginning balance 532 532 Granted 358 277 Released (160) (230) Forfeited (81) (10) Ending balance 649 569 Excluding PSUs, we granted 1,903,000 RSUs during the three months ended April 30, 2024. As of April 30, 2024, there was approximately $117.3 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.2 years. Stock Bonus Program and Bonus Share Program Our stock bonus program permits eligible employees to receive a portion of their earned bonuses, otherwise payable in cash, in the form of discounted shares of our common stock. Executive officers are eligible to participate in this program to the extent that capacity remains available under the program following the enrollment of all other participants. Shares awarded to executive officers with respect to the discount feature of the program are subject to a one-year vesting period. This program is subject to annual funding approval by our board of directors and an annual cap on the number of shares that can be issued. Subject to these limitations, the number of shares to be issued under the program for a given year is determined using a five-day trailing average price of our common stock when the awards are calculated, reduced by a discount determined by the board of directors each year (the “discount”). To the extent that this program is not funded in a given year or the number of shares of common stock needed to fully satisfy employee enrollment exceeds the annual cap, the applicable portion of the employee bonuses will generally revert to being paid in cash. Under our bonus share program, we may provide discretionary bonuses to employees or pay earned bonuses that are outside the stock bonus program in the form of shares of common stock. Unlike the stock bonus program, there is no enrollment for this program and no discount feature. For bonuses in respect of the year ended January 31, 2024, our board of directors approved the use of up to 300,000 shares of common stock in the aggregate for awards under these two programs, with up to 200,000 of these shares of common stock, and a discount of 15% approved for awards under our stock bonus program. We currently expect to issue approximately 22,000 shares under the stock bonus program and 178,000 shares under the bonus share program, in respect of the year ended January 31, 2024, during the first half of the year ending January 31, 2025. In March 2024, our board of directors approved the use of up to 300,000 shares of common stock in the aggregate under these two programs, with up to 200,000 of these shares of common stock, and a discount of 15%, for awards under our stock bonus program for the performance period ending January 31, 2025. Any shares earned under these programs will be issued during the year ending January 31, 2026. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Apr. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings CTI Litigation In March 2009, one of our former employees, Ms. Orit Deutsch, commenced legal actions in Israel against our former primary Israeli subsidiary, Cognyte Technologies Ltd. (formerly known as Verint Systems Limited or “VSL”) (Case Number 4186/09) and against our former affiliate CTI (Case Number 1335/09). Also, in March 2009, a former employee of Comverse Limited (CTI’s primary Israeli subsidiary at the time), Ms. Roni Katriel, commenced similar legal actions in Israel against Comverse Limited (Case Number 3444/09). In these actions, the plaintiffs generally sought to certify class action suits against the defendants on behalf of current and former employees of VSL and Comverse Limited who had been granted stock options in Verint and/or CTI and who were allegedly damaged as a result of a suspension on option exercises during an extended filing delay period that is discussed in our and CTI’s historical public filings. On June 7, 2012, the Tel Aviv District Court, where the cases had been filed or transferred, allowed the plaintiffs to consolidate and amend their complaints against the three defendants: VSL, CTI, and Comverse Limited. On October 31, 2012, CTI distributed all of the outstanding shares of common stock of Comverse, Inc., its principal operating subsidiary and parent company of Comverse Limited, to CTI’s shareholders (the “Comverse Share Distribution”). In the period leading up to the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in Verint and in its then-subsidiary, Comverse, Inc.) to Comverse, Inc. or to unaffiliated third parties. As the result of these transactions, Comverse, Inc. became an independent company and ceased to be affiliated with CTI, and CTI ceased to have any material assets other than its equity interests in Verint. Prior to the completion of the Comverse Share Distribution, the plaintiffs sought to compel CTI to set aside up to $150.0 million in assets to secure any future judgment, but the District Court did not rule on this motion. In February 2017, Mavenir Inc. became successor-in-interest to Comverse, Inc. On February 4, 2013, Verint acquired the remaining CTI shell company in a merger transaction (the “CTI Merger”). As a result of the CTI Merger, Verint assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the foregoing legal actions. However, under the terms of a Distribution Agreement entered into in connection with the Comverse Share Distribution, we, as successor to CTI, are entitled to indemnification from Comverse, Inc. (now Mavenir) for any losses we may suffer in our capacity as successor to CTI related to the foregoing legal actions. Following an unsuccessful mediation process, on August 28, 2016, the District Court (i) denied the plaintiffs’ motion to certify the suit as a class action with respect to all claims relating to Verint stock options, (ii) dismissed the motion to certify the suit against VSL and Comverse Limited, and (iii) approved the plaintiffs’ motion to certify the suit as a class action against CTI with respect to claims of current or former employees of Comverse Limited (now part of Mavenir) or of VSL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case would be evaluated under New York law. As a result of this ruling (which excluded claims related to Verint stock options from the case), one of the original plaintiffs in the case, Ms. Deutsch, was replaced by a new representative plaintiff, Mr. David Vaaknin. CTI appealed portions of the District Court’s ruling to the Israeli Supreme Court. On August 8, 2017, the Israeli Supreme Court partially allowed CTI’s appeal and ordered the case to be returned to the District Court to determine whether a cause of action exists under New York law based on the parties’ expert opinions. Following two unsuccessful rounds of mediation in mid to late 2018 and in mid-2019, the proceedings resumed. On April 16, 2020, the District Court accepted the plaintiffs’ application to amend the motion to certify a class action and set deadlines for filing amended pleadings by the parties. CTI submitted a motion to appeal the District Court’s decision to the Israeli Supreme Court, as well as a motion to stay the proceedings in the District Court pending the resolution of the appeal. On July 6, 2020, the Israeli Supreme Court granted the motion for a stay. On July 27, 2020, the plaintiffs filed their response on the merits of the motion for leave to appeal. On December 15, 2021, the Israeli Supreme Court rejected CTI’s motion to appeal and the proceedings in the District Court resumed. At the recommendation of the District Court, in June 2022, the parties conducted another round of mediation in New York. On July 10, 2022, the parties reached an agreement to settle the matter on terms set forth in a settlement agreement that was executed by all parties and submitted a motion for approval of the settlement agreement to the District Court. Under the terms of the settlement agreement, subject to full and final waiver, Mavenir Inc. and/or Comverse, Inc. and/or Mavenir Ltd. agreed to pay a total of $16.0 million (such amount to be paid in three phases as set forth in the settlement agreement) as compensation to the plaintiffs and members of the class. The compensation amount is comprehensive, final and absolute and includes within it all the amounts and expenses to be paid in connection with the settlement agreement. Under the terms of an associated guaranty agreement, Verint has guaranteed the payment of the compensation amount in the event it is not paid by the primary obligors. On February 7, 2023, the District Court approved the settlement without material changes. As of April 30, 2024, all installments of the compensation amount had been paid by Mavenir. There was no impact to our condensed consolidated statements of operations. Under the terms of the Separation and Distribution Agreement entered into between Verint and Cognyte, Cognyte has agreed to indemnify Verint for Cognyte’s share of any losses that Verint may suffer related to the foregoing legal actions either in its capacity as successor to CTI, to the extent not indemnified by Mavenir, or due to its former ownership of Cognyte and VSL. Unfair Competition Litigation and Related Investigation As previously disclosed, Verint Americas Inc., as successor to ForeSee Results, Inc. (“ForeSee”), was the defendant in two Eastern District of Michigan cases captioned ACSI LLC v. ForeSee Results, Inc., and CFI Group USA LLC v. Verint Americas Inc. The former case was filed on October 24, 2018 against ForeSee by American Customer Satisfaction Index, LLC (“ACSI LLC”) (Case No. 2:18-cv-13319) and alleged infringement of two federally registered trademarks and common law unfair competition under federal and state law. The latter case was filed on September 5, 2019 against Verint Americas Inc. (as successor in interest to ForeSee) by CFI Group USA LLC (“CFI”) (Case No. 2:19-cv-12602) and alleged unfair competition and false advertising under federal and state law, as well as tortious interference with contract. We believe that the claims asserted by the plaintiffs in these matters were without merit. Following the filing of the Eastern District of Michigan litigation, ForeSee filed affirmative litigation in the U.S. District Court for the District of Delaware (Case No. 1:21-cv-00674, Complaint filed on May 7, 2021) against ACSI LLC, CFI, Claes Fornell, and CFI Software LLC (the “Fornell Group”) asserting fraud and other claims against ACSI LLC, CFI, Fornell Group, and CFI Software for, among other things, their breach of a “Joinder and Waiver Agreement” entered into in connection with the December 2013 sale of ForeSee to its previous owner and misrepresentations in the associated deal documents. Verint acquired ForeSee in December 2018. In April 2023, the parties reached an agreement in principle to settle these actions, and on June 1, 2023, the parties signed a definitive settlement agreement. Under the terms of the settlement agreement, Verint paid $9.0 million to the Fornell Group in July 2023 and the parties have agreed to certain restrictive covenants with respect to the future business activities of both ForeSee and the Fornell Group. The agreement provides that the settlement does not constitute a ruling on the merits, an admission as to any issue of fact or principle of law, or an admission of liability or wrongdoing by either ForeSee or Verint. Following the execution of the settlement agreement, the two cases in Michigan against us have been dismissed, and the case in Delaware filed by us has been dismissed. The U.S. Attorney’s Office for the Eastern District of Michigan’s Civil Division (“USAO”) also conducted a False Claims Act investigation concerning allegations ForeSee and/or Verint failed to provide the federal government the services described in certain government contracts related to ForeSee’s products inherited by Verint in the ForeSee acquisition. Verint received a Civil Investigation Demand (“CID”) in connection with this investigation and provided responses. The False Claims Act contains provisions that allow for private persons (“relators”) to initiate actions by filing claims under seal. We believed and subsequently confirmed that this investigation was initiated by ACSI LLC and CFI in coordination with the Eastern District of Michigan litigation discussed above. In March 2023, Verint and the Assistant U.S. Attorney overseeing the USAO investigation reached an agreement in principle to resolve the USAO matter. The definitive settlement agreement, which provides that it is not an admission of liability by us, was signed in July 2023 including by the USAO and the relators. Under the terms of the settlement agreement, Verint paid $7.0 million to the government in August 2023 (a portion of which is payable by the government to the relators) in exchange for a release of the asserted claims, and an associated civil action brought by the relators has been dismissed. As of January 31, 2023, we recognized a $7.0 million legal settlement liability in respect of the USAO matter and a $3.5 million legal settlement liability in respect of the ACSI and CFI matters within accrued expenses and other current liabilities, and a corresponding insurance recovery receivable in prepaid expenses and other current assets on our consolidated balance sheets. These loss accruals and insurance recoveries were offset within selling, general and administrative expenses in our consolidated statements of operations for the year ended January 31, 2023, resulting in no impact on our consolidated statements of operations. The incremental settlement costs of $5.5 million related to the ACSI and CFI matters as a result of the settlement described above was included within selling, general and administrative expenses in our consolidated statement of operations for the year ended January 31, 2024. We reached a final settlement with one of our insurance carriers for a total cumulative insurance recovery of $14.5 million for the losses we incurred related to these actions, which offset settlement and legal expenses during the year ended January 31, 2023. We collected $2.0 million during the year ended January 31, 2023 and $12.5 million was collected in April 2023. We are a party to various other litigation matters and claims that arise from time to time in the ordinary course of our business. While we believe that the ultimate outcome of any such current matters will not have a material adverse effect on us, their outcomes are not determinable and negative outcomes may adversely affect our financial position, liquidity, or results of operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 15,241 | $ 3,295 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Apr. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Apr. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Preparation of Condensed Consolidated Financial Statements | Preparation of Condensed Consolidated Financial Statements The condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2024 filed with the U.S. Securities and Exchange Commission (“SEC”). The condensed consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for the periods ended April 30, 2024 and 2023, and the condensed consolidated balance sheet as of April 30, 2024, are not audited but reflect all adjustments that, in the opinion of management, are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown. The condensed consolidated balance sheet as of January 31, 2024 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2024. Certain information and disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and disclosures required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2024 filed with the SEC. The results for interim periods are not necessarily indicative of a full year’s results. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Verint Systems Inc., and our wholly owned or otherwise controlled subsidiaries. Noncontrolling interests in less than wholly owned subsidiaries are reflected within stockholders’ equity on our condensed consolidated balance sheet, but separately from our stockholders’ equity. Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment. We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Key estimates in the accompanying condensed consolidated financial statements include, among others, revenue recognition, allowances for doubtful accounts, determining the fair value of assets and liabilities assumed in business combinations, recoverability of goodwill, amortization of intangibles, evaluation of contingencies, and the accounting for income taxes. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Effective | Recently Adopted Accounting Pronouncements There have been no recently adopted accounting pronouncements since the filing of our Annual Report on Form 10-K for the year ended January 31, 2024 that may have a material impact on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will require public companies to report incremental segment information on an annual and interim basis, including enhanced disclosures of significant segment expenses included within each reported measure of segment profit or loss. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. We plan to adopt ASU No. 2023-07 effective for the annual report on Form 10-K for the year ending January 31, 2025 and subsequent interim periods, and are currently evaluating the impact of this standard on our condensed consolidated financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require greater disaggregation of a reporting entity’s effective tax rate reconciliation as well as income taxes paid. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statement disclosures. |
Revenue Recognition | We derive our revenue primarily from providing customers the right to access our cloud-based solutions, the right to use our software for an indefinite or specified period of time, and related services and support based on when access or control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transactions, including mandatory government charges that are passed through to our customers. We determine revenue recognition through the following five steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table provides a disaggregation of our recurring and nonrecurring revenue. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions. • Recurring revenue primarily consists of: ◦ Software as a service (“SaaS”) revenue, which consists predominately of bundled SaaS (software access rights with standard managed services) and unbundled SaaS (software licensing rights accounted for as term-based licenses whereby customers have a license to our software with related support for a specific period). ▪ Bundled SaaS revenue is recognized over time. ▪ Unbundled SaaS revenue is recognized at a point in time, except for the related support which is recognized over time. Unbundled SaaS contracts are eligible for renewal after the initial fixed term, which in most cases is between a one ◦ Optional managed services revenue. ◦ Support revenue, which consists of initial and renewal support on our perpetual licenses. • Nonrecurring revenue primarily consists of our perpetual licenses, hardware, installation services, business advisory consulting and training services, and patent license royalties. Three Months Ended (in thousands) 2024 2023 Recurring revenue: Bundled SaaS revenue $ 65,695 $ 59,453 Unbundled SaaS revenue 75,288 57,695 Total SaaS revenue 140,983 117,148 Optional managed services revenue 5,168 12,865 Support revenue 27,377 36,426 Total recurring revenue 173,528 166,439 Nonrecurring revenue: Perpetual revenue 24,900 24,334 Professional services and other revenue 22,849 25,793 Total nonrecurring revenue 47,749 50,127 Total revenue $ 221,277 $ 216,566 |
Schedule of Contracts with Customers - Assets and Liabilities | The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers: (in thousands) April 30, 2024 January 31, 2024 Accounts receivable, net $ 155,903 $ 190,461 Contract assets, net $ 71,490 $ 66,913 Long-term contract assets, net (included in other assets) $ 38,115 $ 31,379 Contract liabilities $ 242,478 $ 254,437 Long-term contract liabilities $ 9,394 $ 10,581 |
Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table provides information about when we expect to recognize our remaining performance obligations: (in thousands) April 30, 2024 January 31, 2024 Remaining performance obligations: Expected to be recognized within 1 year $ 437,659 $ 464,600 Expected to be recognized in more than 1 year 279,785 279,702 Total remaining performance obligations $ 717,444 $ 744,302 |
NET INCOME (LOSS) PER COMMON _2
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Common Share Attributable To Verint Systems Inc. | The following table summarizes the calculation of basic and diluted net income (loss) per common share attributable to Verint Systems Inc. for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands, except per share amounts) 2024 2023 Net income $ 15,379 $ 3,634 Net income attributable to noncontrolling interests 138 339 Net income attributable to Verint Systems Inc. 15,241 3,295 Dividends on preferred stock (5,200) (5,200) Net income (loss) attributable to Verint Systems Inc. for basic net loss per common share 10,041 (1,905) Dilutive effect of dividends on preferred stock — — Net income (loss) attributable to Verint Systems Inc. for diluted net income (loss) per common share $ 10,041 $ (1,905) Weighted-average shares outstanding: Basic 62,335 64,940 Three Months Ended (in thousands, except per share amounts) 2024 2023 Dilutive effect of employee equity award plans 510 — Dilutive effect of 2021 Notes — — Dilutive effect of assumed conversion of preferred stock — — Diluted 62,845 64,940 Net income (loss) per common share attributable to Verint Systems Inc.: Basic $ 0.16 $ (0.03) Diluted $ 0.16 $ (0.03) |
Schedule of Anti-dilutive Securities | We excluded the following weighted-average potential common shares from the calculations of diluted net income (loss) per common share during the applicable periods because their inclusion would have been anti-dilutive: Three Months Ended (in thousands) 2024 2023 Common shares excluded from calculation: Restricted and performance stock-based awards 1,733 2,080 Series A Preferred Stock 5,498 5,498 Series B Preferred Stock 3,980 3,980 |
CASH, CASH EQUIVALENTS, AND S_2
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-term Investments | The following tables summarize our cash, cash equivalents, and short-term investments as of April 30, 2024 and January 31, 2024: April 30, 2024 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 184,041 $ — $ — $ 184,041 Money market funds 52,053 — — 52,053 U.S. Treasury bills 498 — — 498 Total cash and cash equivalents $ 236,592 $ — $ — $ 236,592 Short-term investments: Bank time deposits $ 785 $ — $ — $ 785 Total short-term investments $ 785 $ — $ — $ 785 January 31, 2024 (in thousands) Cost Basis Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash and bank time deposits $ 155,504 $ — $ — $ 155,504 Money market funds 85,647 — — 85,647 U.S. Treasury Bills 249 — — 249 Total cash and cash equivalents $ 241,400 $ — $ — $ 241,400 Short-term investments: Bank time deposits $ 686 $ — $ — $ 686 Total short-term investments $ 686 $ — $ — $ 686 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquisition-Related Intangible Assets | Acquisition-related intangible assets, excluding certain intangible assets previously acquired that were fully amortized and intangible assets of the businesses we divested which were removed from our condensed consolidated balance sheets, consisted of the following as of April 30, 2024 and January 31, 2024: April 30, 2024 (in thousands) Cost Accumulated Net Intangible assets with finite lives: Customer relationships $ 453,183 $ (413,670) $ 39,513 Acquired technology 236,203 (217,310) 18,893 Trade names 3,725 (3,681) 44 Distribution network 2,440 (2,440) — Total intangible assets $ 695,551 $ (637,101) $ 58,450 January 31, 2024 (in thousands) Cost Accumulated Net Intangible assets with finite lives: Customer relationships $ 455,184 $ (412,587) $ 42,597 Acquired technology 231,815 (217,006) 14,809 Trade names 3,727 (3,667) 60 Distribution network 2,440 (2,440) — Total intangible assets $ 693,166 $ (635,700) $ 57,466 |
Schedule of Estimated Future Amortization Expense on Finite-lived Acquisition-related Intangible Assets | Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows: (in thousands) Years Ending January 31, Amount 2025 (remainder of year) $ 13,451 2026 17,419 2027 13,652 2028 8,849 2029 3,968 2030 and thereafter 1,111 Total $ 58,450 |
Schedule of Goodwill Activity | Goodwill activity for the three months ended April 30, 2024 was as follows: (in thousands) Amount Three Months Ended April 30, 2024: Goodwill, gross, at January 31, 2024 $ 1,408,758 Accumulated impairment losses through January 31, 2024 (56,043) Goodwill, net, at January 31, 2024 1,352,715 Foreign currency translation and other (6,123) Business combinations 8,341 Goodwill, net, at April 30, 2024 $ 1,354,933 Balance at April 30, 2024 Goodwill, gross, at April 30, 2024 $ 1,410,976 Accumulated impairment losses through April 30, 2024 (56,043) Goodwill, net, at April 30, 2024 $ 1,354,933 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table summarizes our long-term debt at April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 2021 Notes $ 315,000 $ 315,000 Revolving Credit Facility 100,000 100,000 Less: unamortized debt discounts and issuance costs (3,635) (4,035) Total debt 411,365 410,965 Less: current maturities — — Long-term debt $ 411,365 $ 410,965 |
Schedule of Components of Interest Expense | The following table presents the components of interest expense incurred on the 2021 Notes and on borrowings under our Credit Agreement, for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 2021 Notes: Interest expense at 0.25% coupon rate $ 197 $ 197 Amortization of deferred debt issuance costs 446 443 Total Interest Expense — 2021 Notes $ 643 $ 640 Borrowings under Credit Agreement: Interest expense at contractual rates $ 1,736 $ 1,650 Amortization of deferred debt issuance costs 172 204 Amortization of debt discounts — 5 Losses on early retirements of debt — 237 Total Interest Expense — Borrowings under Credit Agreement $ 1,908 $ 2,096 |
SUPPLEMENTAL CONDENSED CONSOL_2
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following as of April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 Raw materials $ 5,813 $ 4,402 Work-in-process 487 69 Finished goods 10,289 9,738 Total inventories $ 16,589 $ 14,209 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 Accrued bonus $ 30,057 $ 25,816 Other 92,334 111,617 Total accrued expenses and other current liabilities $ 122,391 $ 137,433 |
Schedule of Other Liabilities | Other liabilities consisted of the following as of April 30, 2024 and January 31, 2024: April 30, January 31, (in thousands) 2024 2024 Unrecognized tax benefits, including interest and penalties $ 72,589 $ 71,330 Other 16,303 14,290 Total other liabilities $ 88,892 $ 85,620 |
Schedule of Other Income, Net | Other (expense) income, net consisted of the following for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Foreign currency (losses) gains, net $ (537) $ 237 Other, net 39 (213) Total other (expense) income, net $ (498) $ 24 |
Schedule of Supplemental Information Regarding Condensed Consolidated Cash Flows | The following table provides supplemental information regarding our condensed consolidated cash flows for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Cash paid for interest $ 2,210 $ 2,513 Cash payments of income taxes, net $ 6,298 $ 3,758 Cash payments for operating leases $ 2,037 $ 1,640 Non-cash investing and financing transactions: Finance leases of property and equipment $ 634 $ 212 Accrued but unpaid purchases of property and equipment $ 1,081 $ 360 Liabilities for contingent consideration in business combinations $ 3,397 $ — Accrued but unpaid purchases of treasury stock $ 773 $ — Excise tax on share repurchases $ 250 $ 417 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The following table summarizes changes in the components of our accumulated other comprehensive loss by component for the three months ended April 30, 2024: (in thousands) Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges Foreign Currency Translation Adjustments Total Accumulated other comprehensive income (loss) at January 31, 2024 $ 141 $ (143,103) $ (142,962) Other comprehensive loss before reclassifications (192) (7,060) (7,252) Amounts reclassified out of accumulated other comprehensive loss 27 — 27 Net other comprehensive loss (219) (7,060) (7,279) Accumulated other comprehensive loss at April 30, 2024 $ (78) $ (150,163) $ (150,241) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss | The amounts reclassified out of accumulated other comprehensive loss into the condensed consolidated statements of operations, with presentation location, for the three months ended April 30, 2024 and 2023 were as follows: Three Months Ended (in thousands) 2024 2023 Financial Statement Location Unrealized gains (losses) on derivative financial instruments: Foreign currency forward contracts $ — $ (2) Cost of recurring revenue 3 (20) Cost of nonrecurring revenue 21 (140) Research and development, net 9 (65) Selling, general and administrative 33 (227) Total, before income taxes (6) 39 (Provision for) benefit from income taxes $ 27 $ (188) Total, net of income taxes |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of April 30, 2024 and January 31, 2024: April 30, 2024 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 52,053 $ — $ — U.S. Treasury bills, classified as cash and cash equivalents 498 — — Foreign currency forward contracts — 23 — Contingent consideration receivable — — 2,345 Total assets $ 52,551 $ 23 $ 2,345 Liabilities: Foreign currency forward contracts $ — $ 117 $ — Contingent consideration — business combinations — 750 6,182 Total liabilities $ — $ 867 $ 6,182 January 31, 2024 Fair Value Hierarchy Category (in thousands) Level 1 Level 2 Level 3 Assets: Money market funds $ 85,647 $ — $ — U.S. Treasury bills, classified as cash and cash equivalents 249 — — Foreign currency forward contracts — 183 — Contingent consideration receivable — — 2,685 Total assets $ 85,896 $ 183 $ 2,685 Liabilities: Foreign currency forward contracts $ — $ 11 $ — Contingent consideration — business combinations — 3,750 3,511 Total liabilities $ — $ 3,761 $ 3,511 |
Schedule of Changes in the Estimated Fair Value Using Significant Unobservable Inputs (Level 3) | The following table presents the changes in the estimated fair values of our liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Fair value measurement at beginning of period $ 3,511 $ 12,717 Contingent consideration liabilities recorded for business combinations 3,397 — Changes in fair values, recorded in operating expenses (433) 220 Payments of contingent consideration (277) (250) Foreign currency translation and other (16) 197 Fair value measurement at end of period $ 6,182 $ 12,884 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Financial Instruments | The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of April 30, 2024 and January 31, 2024 were as follows: Fair Value at April 30, January 31, (in thousands) Balance Sheet Classification 2024 2024 Derivative assets: Foreign currency forward contracts: Designated as cash flow hedges Prepaid expenses and other current assets $ 23 $ 183 Total derivative assets $ 23 $ 183 Derivative liabilities: Foreign currency forward contracts: Designated as cash flow hedges Accrued expenses and other current liabilities $ 117 $ 11 Total derivative liabilities $ 117 $ 11 |
Schedule of the Effects of Derivative Financial Instruments Designated as Cash Flow Hedging Instruments | The effects of derivative financial instruments designated as cash flow hedges on accumulated other comprehensive loss (“AOCL”) and on the condensed consolidated statement of operations for the three months ended April 30, 2024 and 2023 were as follows: Three Months Ended (in thousands) 2024 2023 Net losses recognized in AOCL: Foreign currency forward contracts $ (233) $ (350) Net gains (losses) reclassified from AOCL to the condensed consolidated statements of operations: Foreign currency forward contracts $ 33 $ (227) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Apr. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Cost of revenue — recurring $ 549 $ 296 Cost of revenue — nonrecurring 533 140 Research and development, net 3,543 2,327 Selling, general and administrative 13,396 12,216 Total stock-based compensation expense $ 18,021 $ 14,979 |
Schedule of Stock-Based Compensation Expense by Type of Award | The following table summarizes stock-based compensation expense by type of award for the three months ended April 30, 2024 and 2023: Three Months Ended (in thousands) 2024 2023 Restricted stock units and restricted stock awards $ 16,508 $ 13,436 Stock bonus program and bonus share program 1,501 1,378 Total equity-settled awards 18,009 14,814 Phantom stock units (cash-settled awards) 12 165 Total stock-based compensation expense $ 18,021 $ 14,979 |
Schedule of RSU Activity | The following table (“Award Activity Table”) summarizes activity for RSUs, PSUs, and other stock awards that reduce available Plan capacity under the Plans for the three months ended April 30, 2024 and 2023: Three Months Ended April 30, 2024 2023 (in thousands, except grant date fair values) Shares or Units Weighted-Average Grant Date Fair Value Shares or Units Weighted-Average Grant Date Fair Value Beginning balance 2,658 $ 43.29 2,230 $ 52.42 Granted 2,261 $ 29.56 1,665 $ 37.36 Released (410) $ 52.28 (475) $ 50.22 Forfeited (111) $ 55.71 (32) $ 50.63 Ending balance 4,398 $ 35.08 3,388 $ 45.34 |
Schedule of Performance Share Activity | The following table summarizes PSU activity in isolation under the Plans for the three months ended April 30, 2024 and 2023 (these amounts are also included in the Award Activity Table above for 2024 and 2023): Three Months Ended (in thousands) 2024 2023 Beginning balance 532 532 Granted 358 277 Released (160) (230) Forfeited (81) (10) Ending balance 649 569 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 3 Months Ended | |||
Apr. 06, 2021 USD ($) | May 07, 2020 USD ($) | Dec. 04, 2019 USD ($) | Apr. 30, 2024 employee office company | |
Description of Business [Line Items] | ||||
Number of fortune 100 companies as customers | company | 80 | |||
Number of offices | office | 15 | |||
Entity number of employees | employee | 3,700 | |||
Apax | ||||
Description of Business [Line Items] | ||||
Percentage ownership of outstanding shares | 13.50% | |||
Convertible Preferred Stock | ||||
Description of Business [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 400,000,000 | |||
Series A Preferred Stock | Series A Private Placement | ||||
Description of Business [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 200,000,000 | |||
Series B Preferred Stock | Series B Private Placement | ||||
Description of Business [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 200,000,000 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Disaggregation of Revenue [Line Items] | |||
Current period revenue recognized from beginning balance of contract liabilities | $ 99.1 | $ 101.5 | |
Accounts Receivable | Customer Concentration Risk | Partner A | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 13% | 14% | |
Accounts Receivable | Customer Concentration Risk | Partner B | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 14% | 14% | |
Contract assets | Customer Concentration Risk | Partner A | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 13% | 14% | |
Contract assets | Customer Concentration Risk | Partner B | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 14% | 14% | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Unbundled contracts renewal term | 1 year | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Unbundled contracts renewal term | 3 years |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 221,277 | $ 216,566 |
Bundled SaaS revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 65,695 | 59,453 |
Unbundled SaaS revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 75,288 | 57,695 |
Total SaaS revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 140,983 | 117,148 |
Optional managed services revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,168 | 12,865 |
Support revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 27,377 | 36,426 |
Total recurring revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 173,528 | 166,439 |
Perpetual revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 24,900 | 24,334 |
Professional services and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 22,849 | 25,793 |
Total nonrecurring revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 47,749 | $ 50,127 |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 155,903 | $ 190,461 |
Contract assets, net | 71,490 | 66,913 |
Long-term contract assets, net (included in other assets) | 38,115 | 31,379 |
Contract liabilities | 242,478 | 254,437 |
Long-term contract liabilities | $ 9,394 | $ 10,581 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligations (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 717,444 | $ 744,302 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 464,600 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 5 years | |
Remaining performance obligations | $ 437,659 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01 | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-01 | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-02-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 279,702 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-02-01 | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-05-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 279,785 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-05-01 | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-02-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 5 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-05-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue performance obligation, period (up to) | 5 years |
NET INCOME (LOSS) PER COMMON _3
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Net Income Attributable to Verint Systems Inc. [Abstract] | ||
Net income | $ 15,379 | $ 3,634 |
Net income attributable to noncontrolling interests | 138 | 339 |
Net income attributable to Verint Systems Inc. | 15,241 | 3,295 |
Dividends on preferred stock | (5,200) | (5,200) |
Net income (loss) attributable to Verint Systems Inc. common shares | 10,041 | (1,905) |
Dilutive effect of dividends on preferred stock | 0 | 0 |
Net income (loss) attributable to Verint Systems Inc. for diluted net income (loss) per common share | $ 10,041 | $ (1,905) |
Weighted-average shares outstanding: | ||
Basic (in shares) | 62,335 | 64,940 |
Dilutive effect of employee equity award plans (in shares) | 510 | 0 |
Dilutive effect of assumed conversion of preferred stock (in shares) | 0 | 0 |
Diluted (in shares) | 62,845 | 64,940 |
Net income (loss) per common share attributable to Verint Systems Inc.: | ||
Basic (in dollars per share) | $ 0.16 | $ (0.03) |
Diluted (in dollars per share) | $ 0.16 | $ (0.03) |
2021 Notes | ||
Weighted-average shares outstanding: | ||
Dilutive effect of 2021 Notes (in shares) | 0 | 0 |
NET INCOME (LOSS) PER COMMON _4
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - Schedule of Anti-dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Restricted and performance stock-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from calculations of diluted net income (loss) per share (in shares) | 1,733 | 2,080 |
Series A Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from calculations of diluted net income (loss) per share (in shares) | 5,498 | 5,498 |
Series B Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from calculations of diluted net income (loss) per share (in shares) | 3,980 | 3,980 |
NET INCOME (LOSS) PER COMMON _5
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - Additional Information (Details) - 2021 Notes | Apr. 06, 2021 $ / shares |
Class of Stock [Line Items] | |
Conversion price (in dollars per share) | $ 62.08 |
Capped calls, initial cap price (in dollars per share) | $ 100 |
CASH, CASH EQUIVALENTS, AND S_3
CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, cost basis | $ 236,592 | $ 260,719 | $ 241,400 |
Cash and cash equivalents, fair value | 236,592 | 241,400 | |
Proceeds from maturities and sales of short-term investments | 200 | $ 200 | |
Bank time deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 785 | 686 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 785 | 686 | |
Total short-term investments | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 785 | 686 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 785 | 686 | |
Cash and bank time deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, cost basis | 184,041 | 155,504 | |
Cash and cash equivalents, fair value | 184,041 | 155,504 | |
Money market funds | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, cost basis | 52,053 | 85,647 | |
Cash and cash equivalents, fair value | 52,053 | 85,647 | |
U.S. Treasury bills | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents, cost basis | 498 | 249 | |
Cash and cash equivalents, fair value | $ 498 | $ 249 |
BUSINESS COMBINATIONS, ASSET _2
BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES - Business Combinations For Three Months Ended April 30, 2024 (Details) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 USD ($) employee | Jan. 31, 2024 USD ($) employee | |
Business Acquisition [Line Items] | ||
Entity number of employees | employee | 3,700 | |
SAFE investment | $ 1,700 | |
Goodwill | $ 1,354,933 | $ 1,352,715 |
Other Business Combination | ||
Business Acquisition [Line Items] | ||
Entity number of employees | employee | 14 | 3 |
Business Combinations Three Months Ended April 30 2024 | ||
Business Acquisition [Line Items] | ||
Purchase price transaction costs | $ 8,800 | |
Contingent consideration — business combinations | 3,400 | |
SAFE investment | 1,700 | |
Goodwill | 8,300 | |
Business Combinations Three Months Ended April 30 2024 | Developed Technology | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | 5,200 | |
Business Combinations Three Months Ended April 30 2024 | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 200 |
BUSINESS COMBINATIONS, ASSET _3
BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES - Other Business Combination Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Business Acquisition [Line Items] | ||
Changes in fair values, recorded in operating expenses | $ (0.4) | $ 0.2 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative | Selling, general and administrative |
Payments of contingent consideration | $ (3.3) | $ (0.3) |
Recurring | ||
Business Acquisition [Line Items] | ||
Contingent consideration obligations, fair value | 6.9 | |
Accrued expenses and other current liabilities | Recurring | ||
Business Acquisition [Line Items] | ||
Contingent consideration obligations, fair value | 2.1 | |
Other Noncurrent Liabilities | Recurring | ||
Business Acquisition [Line Items] | ||
Contingent consideration obligations, fair value | $ 4.8 |
BUSINESS COMBINATIONS, ASSET _4
BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES - Asset Acquisition (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2024 | Jan. 31, 2024 | |
Asset Acquisition [Line Items] | |||
Asset acquisition, deposit payment | $ 1 | ||
Asset acquisition, direct deal costs | 0.2 | ||
Milestone Payments | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, milestone payments | 3 | ||
Payment for asset acquisition contingent consideration | $ 1.8 | ||
Asset acquisition, contingent consideration released from third-party escrow account | $ 0.2 | ||
Asset acquisition, contingent consideration held in third-party escrow account | $ 2 | 1 | |
Integration Milestone | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, contingent consideration released from third-party escrow account | $ 0.8 | ||
Consideration Contingent Upon Achieving Certain Performance Targets | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, non contingent consideration | 0.3 | ||
Consideration Contingent Upon Achieving Certain Performance Targets | Maximum | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, contingent consideration | 5 | ||
Consideration Contingent Upon Achieving Certain Performance Targets | Minimum | |||
Asset Acquisition [Line Items] | |||
Asset acquisition, contingent consideration | $ 2 |
BUSINESS COMBINATIONS, ASSET _5
BUSINESS COMBINATIONS, ASSET ACQUISITIONS, AND DIVESTITURES - Divestiture (Details) $ in Millions | 3 Months Ended | |||
Jan. 31, 2024 USD ($) | Apr. 30, 2024 USD ($) | Apr. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) installment | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale of business agreement terms, period following transaction closing date | 6 years | |||
Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration from divestiture | $ 6 | |||
Sale of business agreement terms, period following transaction closing date | 6 years | |||
Gain on sale of transaction | $ (9.7) | |||
Cumulative foreign translation adjustment | 0.8 | |||
Cash divested from deconsolidation | 6.5 | |||
Tangible assets | 1 | |||
Intangible assets disposed | 0.5 | |||
Goodwill disposed | $ 6.8 | |||
Revenue | $ 6.8 | |||
Collection of outstanding receivables | $ 1.5 | |||
Disposed of by Sale | Product Line Inherited As Part Of Legacy Acquisition | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration from divestiture | $ 0.7 | |||
Gain on sale of transaction | $ 0.2 | |||
Intangible assets disposed | 0.2 | |||
Goodwill disposed | $ 0.3 | |||
Consideration from divestiture, number of installments | installment | 3 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 695,551 | $ 693,166 |
Accumulated Amortization | (637,101) | (635,700) |
Net | 58,450 | 57,466 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 453,183 | 455,184 |
Accumulated Amortization | (413,670) | (412,587) |
Net | 39,513 | 42,597 |
Acquired technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 236,203 | 231,815 |
Accumulated Amortization | (217,310) | (217,006) |
Net | 18,893 | 14,809 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,725 | 3,727 |
Accumulated Amortization | (3,681) | (3,667) |
Net | 44 | 60 |
Distribution network | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,440 | 2,440 |
Accumulated Amortization | (2,440) | (2,440) |
Net | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Additional Information (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 4,400,000 | $ 8,300,000 |
Impairment of intangible assets, finite-lived | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization Expense on Finite-lived Acquisition-related Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2025 (remainder of year) | $ 13,451 | |
2026 | 17,419 | |
2027 | 13,652 | |
2028 | 8,849 | |
2029 | 3,968 | |
2030 and thereafter | 1,111 | |
Net | $ 58,450 | $ 57,466 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Goodwill Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Jan. 31, 2024 | |
Goodwill [Roll Forward] | ||
Goodwill, gross at the beginning of the period | $ 1,410,976 | $ 1,408,758 |
Accumulated impairment losses | (56,043) | $ (56,043) |
Goodwill, net at the beginning of the period | 1,352,715 | |
Foreign currency translation and other | (6,123) | |
Business combinations | 8,341 | |
Goodwill, net, at the end of the period | $ 1,354,933 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Debt Instrument [Line Items] | ||
Less: unamortized debt discounts and issuance costs | $ (3,635) | $ (4,035) |
Total debt | 411,365 | 410,965 |
Less: current maturities | 0 | 0 |
Long-term debt | 411,365 | 410,965 |
2021 Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | 315,000 | 315,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 100,000 | $ 100,000 |
LONG-TERM DEBT - 2021 Notes (De
LONG-TERM DEBT - 2021 Notes (Details) | Apr. 09, 2021 USD ($) | Apr. 06, 2021 USD ($) $ / shares | Apr. 30, 2024 |
Series B Preferred Stock | Series B Private Placement | |||
Debt Instrument [Line Items] | |||
Sale of stock, consideration received on transaction | $ 200,000,000 | ||
2021 Notes | |||
Debt Instrument [Line Items] | |||
Debt principal amount | $ 315,000,000 | ||
Coupon interest rate | 0.25% | ||
Convertible debt, conversion ratio | 0.0161092 | ||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 62.08 | ||
Payments of debt issuance costs | $ 8,900,000 | ||
Effective interest rate (as a percent) | 0.83% |
LONG-TERM DEBT - Capped Calls (
LONG-TERM DEBT - Capped Calls (Details) $ / shares in Units, $ in Millions | Apr. 06, 2021 USD ($) $ / shares |
Debt Instrument [Line Items] | |
Purchases of capped calls, net of taxes | $ | $ 41.1 |
2021 Notes | |
Debt Instrument [Line Items] | |
Conversion price (in dollars per share) | $ 62.08 |
Capped calls, initial cap price (in dollars per share) | $ 100 |
LONG-TERM DEBT - Credit Agreeme
LONG-TERM DEBT - Credit Agreement (Details) | 3 Months Ended | ||||||
May 10, 2023 | Apr. 27, 2023 USD ($) | Apr. 30, 2024 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2021 USD ($) | Jan. 31, 2024 USD ($) | Jun. 29, 2017 USD ($) | |
Debt Instrument [Line Items] | |||||||
Accrued interest paid | $ 2,210,000 | $ 2,513,000 | |||||
Combined deferred debt issuance costs and unamortized debt discount | 3,635,000 | $ 4,035,000 | |||||
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 725,000,000 | ||||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | 425,000,000 | ||||||
Required quarterly principal payment | $ 1,100,000 | ||||||
Repayments of debt | $ 100,000,000 | 309,000,000 | |||||
Long-term debt outstanding | $ 100,000,000 | ||||||
Accrued interest paid | $ 500,000 | ||||||
Combined deferred debt issuance costs and unamortized debt discount | $ 200,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | ||||||
Long-term debt outstanding | $ 100,000,000 | $ 100,000,000 | |||||
Interest rate at end of period (as a percent) | 6.93% | ||||||
Consolidated total debt to consolidated EBITDA ratio | 4.50 | ||||||
Fourth Amendment To Credit Agreement | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 0.25% | ||||||
Fourth Amendment To Credit Agreement | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 1.25% | ||||||
Fourth Amendment To Credit Agreement | Adjusted Term SOFR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 1.25% | ||||||
Fourth Amendment To Credit Agreement | Adjusted Term SOFR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 2.25% |
LONG-TERM DEBT - Components of
LONG-TERM DEBT - Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Apr. 09, 2021 | |
Debt Instrument [Line Items] | |||
Losses on early retirements of debt | $ 0 | $ 237 | |
2021 Notes | |||
Debt Instrument [Line Items] | |||
Interest expense at coupon or contractual rate | 197 | 197 | |
Amortization of deferred debt issuance costs | 446 | 443 | |
Total interest expense | 643 | 640 | |
Coupon interest rate | 0.25% | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Interest expense at coupon or contractual rate | 1,736 | 1,650 | |
Amortization of deferred debt issuance costs | 172 | 204 | |
Amortization of debt discounts | 0 | 5 | |
Losses on early retirements of debt | 0 | 237 | |
Total interest expense | $ 1,908 | $ 2,096 |
SUPPLEMENTAL CONDENSED CONSOL_3
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Inventories (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Condensed Financial Information Disclosure [Abstract] | ||
Raw materials | $ 5,813 | $ 4,402 |
Work-in-process | 487 | 69 |
Finished goods | 10,289 | 9,738 |
Total inventories | $ 16,589 | $ 14,209 |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Condensed Financial Information Disclosure [Abstract] | ||
Accrued bonus | $ 30,057 | $ 25,816 |
Other | 92,334 | 111,617 |
Total accrued expenses and other current liabilities | $ 122,391 | $ 137,433 |
SUPPLEMENTAL CONDENSED CONSOL_4
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Condensed Financial Information Disclosure [Abstract] | ||
Unrecognized tax benefits, including interest and penalties | $ 72,589 | $ 71,330 |
Other | 16,303 | 14,290 |
Total other liabilities | $ 88,892 | $ 85,620 |
SUPPLEMENTAL CONDENSED CONSOL_5
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Other Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | ||
Foreign currency (losses) gains, net | $ (537) | $ 237 |
Other, net | 39 | (213) |
Total other (expense) income, net | $ (498) | $ 24 |
SUPPLEMENTAL CONDENSED CONSOL_6
SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Supplemental Information Regarding Condensed Consolidated Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | ||
Cash paid for interest | $ 2,210 | $ 2,513 |
Cash payments of income taxes, net | 6,298 | 3,758 |
Cash payments for operating leases | 2,037 | 1,640 |
Non-cash investing and financing transactions: | ||
Finance leases of property and equipment | 634 | 212 |
Accrued but unpaid purchases of property and equipment | 1,081 | 360 |
Liabilities for contingent consideration in business combinations | 3,397 | 0 |
Accrued but unpaid purchases of treasury stock | 773 | 0 |
Excise tax on share repurchases | $ 250 | $ 417 |
CONVERTIBLE PREFERRED STOCK - A
CONVERTIBLE PREFERRED STOCK - Additional Information (Details) - USD ($) | Apr. 06, 2021 | May 07, 2020 | Dec. 04, 2019 |
Convertible Preferred Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of stock, consideration received on transaction | $ 400,000,000 | ||
Series A Preferred Stock | Series A Private Placement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of stock, consideration received on transaction | $ 200,000,000 | ||
Sale of stock, number of shares issued (in shares) | 200,000 | ||
Sale of stock, price per share (in dollars per share) | $ 1,000 | ||
Sale of stock, direct and indirect costs | $ 2,700,000 | ||
Series B Preferred Stock | Series B Private Placement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of stock, consideration received on transaction | $ 200,000,000 | ||
Sale of stock, number of shares issued (in shares) | 200,000 | ||
Sale of stock, price per share (in dollars per share) | $ 1,000 | ||
Sale of stock, direct and indirect costs | $ 1,300,000 |
CONVERTIBLE PREFERRED STOCK - V
CONVERTIBLE PREFERRED STOCK - Voting Rights, Dividends and Liquidation Rights (Details) - USD ($) | 3 Months Ended | |||
May 07, 2020 | Apr. 30, 2024 | Apr. 30, 2023 | Dec. 04, 2019 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Holders of preferred stock voting rights, as percentage of voting power of common stock outstanding | 19.90% | |||
Preferred stock dividend payments | $ 10,400,000 | $ 10,400,000 | ||
Dividends payable | 0 | |||
Preferred stock dividends, unpaid and undeclared | 6,900,000 | |||
Dividends on preferred stock | $ 5,200,000 | $ 5,200,000 | ||
Preferred Stock | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | |||
Preferred Stock | Minimum | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock, dividend rate, increase percentage each year | 1% | |||
Preferred Stock | Maximum | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock, dividend rate, increase percentage each year | 10% | |||
Preferred Stock | Dividend for the first 48-month anniversary of closing date | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock, dividend rate | 5.20% | |||
Preferred Stock | Dividend after the first 48-month anniversary of closing date | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock, dividend rate | 4% | |||
Preferred Stock | Dividend increase term in the event | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Preferred stock, dividend rate | 6% |
CONVERTIBLE PREFERRED STOCK - C
CONVERTIBLE PREFERRED STOCK - Conversion And Future Tranche Right (Details) - USD ($) $ / shares in Units, $ in Thousands | May 07, 2023 | Apr. 06, 2021 | May 07, 2020 | Apr. 30, 2024 | Jan. 31, 2024 | Feb. 01, 2021 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Shares issuable upon conversion (in shares) | 9,600,000 | |||||
Common stock, trading days | 30 days | |||||
Convertible preferred stock, threshold percentage of conversion trigger | 175% | |||||
Preferred stock, redemption price in percentage | 100% | |||||
Internal rate of return | 8% | |||||
Preferred stock dividends, unpaid and undeclared | $ 6,900 | |||||
Future tranche right, fair value | $ 3,400 | |||||
Carrying value of preferred stock | $ 436,321 | $ 436,321 | ||||
Apax | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Percentage ownership of outstanding shares | 13.50% | |||||
Series A Preferred Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion price (in dollars per share) | $ 53.50 | $ 36.38 | ||||
Conversion premium | 17.10% | |||||
Common stock, consecutive trading days | 45 days | 45 days | ||||
Preferred stock, liquidation preference | $ 200,000 | |||||
Preferred stock dividends, unpaid and undeclared | 3,500 | |||||
Carrying value of preferred stock | $ 203,400 | 200,628 | 200,628 | |||
Series B Preferred Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion price (in dollars per share) | $ 50.25 | |||||
Conversion price, trading days | 20 days | |||||
Preferred stock, liquidation preference | 200,000 | |||||
Preferred stock dividends, unpaid and undeclared | 3,500 | |||||
Carrying value of preferred stock | $ 237,000 | $ 235,693 | $ 235,693 | |||
Future tranche right | $ 37,000 | |||||
Series B Preferred Stock | Series B Private Placement | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, number of shares issued (in shares) | 200,000 | |||||
Preferred Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Preferred stock, redemption price in percentage | 100% |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock Dividends (Details) - USD ($) | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Equity [Abstract] | ||
Dividends on common stock | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY - Treasury
STOCKHOLDERS' EQUITY - Treasury Stock (Details) - shares | Apr. 30, 2024 | Jan. 31, 2024 |
Equity [Abstract] | ||
Treasury stock outstanding (in shares) | 0 | 0 |
STOCKHOLDERS' EQUITY - Stock Re
STOCKHOLDERS' EQUITY - Stock Repurchase Programs (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | ||
May 30, 2024 | Apr. 30, 2024 | Apr. 30, 2023 | Dec. 07, 2022 | |
Class of Stock [Line Items] | ||||
Excise tax on share repurchases | $ 250,000 | $ 417,000 | ||
December 2022 Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||
Stock repurchased during period (in shares) | 1,233 | |||
Stock repurchased during period, value | $ 38,100,000 | |||
Excise tax on share repurchases | $ 300,000 | $ 400,000 | ||
Shares retired (in shares) | 1,234 | |||
December 2022 Repurchase Program | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock repurchased during period (in shares) | 270 | |||
Stock repurchased during period, value | $ 8,500,000 | |||
Prior Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Treasury stock repurchased (in shares) | 1,593 | |||
Treasury stock repurchased | $ 60,100,000 |
STOCKHOLDERS' EQUITY - Issuance
STOCKHOLDERS' EQUITY - Issuance of Convertible Preferred Stock (Details) - USD ($) | Apr. 06, 2021 | May 07, 2020 | Dec. 04, 2019 | Apr. 30, 2024 |
Apax | ||||
Class of Stock [Line Items] | ||||
Percentage ownership of outstanding shares | 13.50% | |||
Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 400,000,000 | |||
Series A Preferred Stock | Series A Private Placement | ||||
Class of Stock [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 200,000,000 | |||
Series B Preferred Stock | Series B Private Placement | ||||
Class of Stock [Line Items] | ||||
Sale of stock, consideration received on transaction | $ 200,000,000 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Activity in Accumulated Other Comprehensive Loss | ||
Beginning balances | $ 832,666 | $ 858,149 |
Other comprehensive loss before reclassifications | (7,252) | |
Amounts reclassified out of accumulated other comprehensive loss | 27 | |
Other comprehensive (loss) income | (7,279) | 8,510 |
Ending balances | 818,911 | 823,388 |
Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges | ||
Activity in Accumulated Other Comprehensive Loss | ||
Beginning balances | 141 | |
Other comprehensive loss before reclassifications | (192) | |
Amounts reclassified out of accumulated other comprehensive loss | 27 | |
Other comprehensive (loss) income | (219) | |
Ending balances | (78) | |
Foreign Currency Translation Adjustments | ||
Activity in Accumulated Other Comprehensive Loss | ||
Beginning balances | (143,103) | |
Other comprehensive loss before reclassifications | (7,060) | |
Amounts reclassified out of accumulated other comprehensive loss | 0 | |
Other comprehensive (loss) income | (7,060) | |
Ending balances | (150,163) | |
AOCI Attributable to Parent | ||
Activity in Accumulated Other Comprehensive Loss | ||
Beginning balances | (142,962) | (154,099) |
Other comprehensive (loss) income | (7,279) | 8,510 |
Ending balances | $ (150,241) | $ (145,589) |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||
Research and development, net | $ (36,730) | $ (31,782) |
Selling, general and administrative | (93,276) | (101,279) |
Total, before income taxes | 23,334 | 7,997 |
(Provision for) benefit from income taxes | (7,955) | (4,363) |
Net income | 15,379 | 3,634 |
Recurring | ||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||
Cost of revenue | (35,923) | (39,643) |
Nonrecurring | ||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||
Cost of revenue | (26,480) | (26,795) |
Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||
Research and development, net | 21 | (140) |
Selling, general and administrative | 9 | (65) |
Total, before income taxes | 33 | (227) |
(Provision for) benefit from income taxes | (6) | 39 |
Net income | 27 | (188) |
Foreign currency forward contracts | Recurring | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||
Cost of revenue | 0 | (2) |
Foreign currency forward contracts | Nonrecurring | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ||
Cost of revenue | $ 3 | $ (20) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2024 | Apr. 30, 2023 | Jan. 31, 2024 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 7,955 | $ 4,363 | |
Income (loss) before provision of income taxes | $ 23,334 | $ 7,997 | |
Effective income tax rate (as a percent) | 34.10% | 54.60% | |
Unrecognized tax benefits (excluding interest and penalties) | $ 82,500 | $ 83,300 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 7,200 | $ 6,400 | |
Decrease in unrecognized tax benefits is reasonably possible | $ 8,100 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Assets: | ||
Contingent consideration receivable | $ 2,300 | |
Liabilities: | ||
Contingent consideration — business combinations | 6,900 | |
Level 1 | ||
Assets: | ||
Money market funds | 52,053 | $ 85,647 |
U.S. Treasury bills, classified as cash and cash equivalents | 498 | 249 |
Foreign currency forward contracts | 0 | 0 |
Contingent consideration receivable | 0 | 0 |
Total assets | 52,551 | 85,896 |
Liabilities: | ||
Foreign currency forward contracts | 0 | 0 |
Contingent consideration — business combinations | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Money market funds | 0 | 0 |
U.S. Treasury bills, classified as cash and cash equivalents | 0 | 0 |
Foreign currency forward contracts | 23 | 183 |
Contingent consideration receivable | 0 | 0 |
Total assets | 23 | 183 |
Liabilities: | ||
Foreign currency forward contracts | 117 | 11 |
Contingent consideration — business combinations | 750 | 3,750 |
Total liabilities | 867 | 3,761 |
Level 3 | ||
Assets: | ||
Money market funds | 0 | 0 |
U.S. Treasury bills, classified as cash and cash equivalents | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Contingent consideration receivable | 2,345 | 2,685 |
Total assets | 2,345 | 2,685 |
Liabilities: | ||
Foreign currency forward contracts | 0 | 0 |
Contingent consideration — business combinations | 6,182 | 3,511 |
Total liabilities | $ 6,182 | $ 3,511 |
FAIR VALUE MEASUREMENTS - Conti
FAIR VALUE MEASUREMENTS - Contingent consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Changes in fair values, recorded in operating expenses | $ 400 | $ (200) |
Contingent consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value measurement at beginning of period | 3,511 | 12,717 |
Contingent consideration liabilities recorded for business combinations | 3,397 | 0 |
Changes in fair values, recorded in operating expenses | (433) | 220 |
Payments of contingent consideration | (277) | (250) |
Foreign currency translation and other | (16) | 197 |
Fair value measurement at end of period | $ 6,182 | $ 12,884 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) | 1 Months Ended | 3 Months Ended | ||||
Jan. 31, 2024 USD ($) | Jan. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Apr. 30, 2024 USD ($) | Apr. 30, 2023 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Sale of business agreement terms, period following transaction closing date | 6 years | |||||
Payments of contingent consideration | $ (3,300,000) | $ (300,000) | ||||
SAFE, investment during period | $ 100,000 | $ 500,000 | $ 1,100,000 | |||
SAFE investment | $ 1,700,000 | 1,700,000 | ||||
Noncontrollling equity investment in privately-held companies without readily determinable fair values | 5,100,000 | 5,100,000 | 5,100,000 | |||
Noncontrollling equity investment in privately-held companies, impairments | 0 | $ 0 | ||||
Recurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Contingent consideration receivable | 2,300,000 | |||||
Contingent consideration receivable, change in estimated fair value | (300,000) | |||||
Contingent consideration — business combinations | $ 6,900,000 | |||||
Disposed of by Sale | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Consideration from divestiture | $ 6,000,000 | $ 6,000,000 | ||||
Sale of business agreement terms, period following transaction closing date | 6 years | |||||
Discount Rate | Minimum | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Contingent consideration, liability, measurement input | 0.058 | 0.058 | 0.061 | |||
Contingent consideration, asset, measurement input | 0.075 | 0.075 | 0.096 | |||
Discount Rate | Maximum | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Contingent consideration, liability, measurement input | 0.064 | 0.064 | 0.070 | |||
Contingent consideration, asset, measurement input | 0.089 | 0.089 | 0.108 | |||
Discount Rate | Weighted Average | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Contingent consideration, liability, measurement input | 0.062 | 0.062 | 0.067 | |||
Contingent consideration, asset, measurement input | 0.078 | 0.078 | 0.097 | |||
Level 3 | Recurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Contingent consideration receivable | $ 2,685,000 | $ 2,685,000 | $ 2,345,000 | |||
Contingent consideration — business combinations | 3,511,000 | 3,511,000 | 6,182,000 | |||
Level 3 | Revolving Credit Facility | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Fair value of debt | 99,000,000 | 99,000,000 | 99,000,000 | |||
Level 2 | Recurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Contingent consideration receivable | 0 | 0 | 0 | |||
Contingent consideration — business combinations | 3,750,000 | 3,750,000 | 750,000 | |||
Payments of contingent consideration | (3,000,000) | |||||
Level 2 | 2021 Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Fair value of debt | $ 281,000,000 | $ 281,000,000 | $ 289,000,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - Unrealized Gains (Losses) on Foreign Exchange Contracts Designated as Hedges - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Jan. 31, 2024 | |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative, term (no longer than) | 12 months | |
Notional amounts of derivative financial instruments | $ 6.3 | $ 6.3 |
Maximum maturity of foreign currency derivatives | 12 months |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2024 |
Fair Values of Derivative Financial Instruments | ||
Assets, fair value | $ 23 | $ 183 |
Liabilities, fair value | 117 | 11 |
Prepaid expenses and other current assets | Foreign currency forward contracts | Designated as cash flow hedges | ||
Fair Values of Derivative Financial Instruments | ||
Assets, fair value | 23 | 183 |
Accrued expenses and other current liabilities | Foreign currency forward contracts | Designated as cash flow hedges | ||
Fair Values of Derivative Financial Instruments | ||
Liabilities, fair value | $ 117 | $ 11 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of the Effects of Derivative Financial Instruments Designated as Cash Flow Hedging Instruments (Details) - Foreign currency forward contracts - Cash flow hedging - Designated as cash flow hedges - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Net (losses) recognized in accumulated other comprehensive (loss) income | $ (233) | $ (350) |
Net gains (losses) reclassified from AOCL to the condensed consolidated statements of operations | $ 33 | $ (227) |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Plan (Details) - shares | Apr. 30, 2024 | Jun. 22, 2023 |
2023 Long-Term Stock Incentive Plan | ||
Stock-Based Compensation Plans | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 9,000,000 | |
Reduction of available plan capacity for each stock option or stock-settled stock appreciation right (in shares) | 1 | |
Reduction of available plan capacity for each other award (in shares) | 1.9 | |
2019 Long-Term Stock Incentive Plan | ||
Stock-Based Compensation Plans | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 3,982,168 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Stock-Based Compensation Plans | ||
Stock-based compensation | $ 18,021 | $ 14,979 |
Cost of revenue — recurring | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | 549 | 296 |
Cost of revenue — nonrecurring | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | 533 | 140 |
Research and development, net | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | 3,543 | 2,327 |
Selling, general and administrative | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | $ 13,396 | $ 12,216 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense by Type of Award (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Stock-Based Compensation Plans | ||
Stock-based compensation | $ 18,021 | $ 14,979 |
Equity Settled Awards | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | 18,009 | 14,814 |
Restricted stock units and restricted stock awards | Equity Settled Awards | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | 16,508 | 13,436 |
Stock bonus program and bonus share program | Equity Settled Awards | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | 1,501 | 1,378 |
Phantom stock units (cash-settled awards) | Cash Settled Awards | ||
Stock-Based Compensation Plans | ||
Stock-based compensation | $ 12 | $ 165 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Shares or Units | ||
Beginning balance (in shares) | 2,658 | 2,230 |
Granted (in shares) | 2,261 | 1,665 |
Released (in shares) | (410) | (475) |
Forfeited (in shares) | (111) | (32) |
Ending balance (in shares) | 4,398 | 3,388 |
Weighted-Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 43.29 | $ 52.42 |
Granted (in dollars per share) | 29.56 | 37.36 |
Released (in dollars per share) | 52.28 | 50.22 |
Forfeited (in dollars per share) | 55.71 | 50.63 |
Ending balance (in dollars per share) | $ 35.08 | $ 45.34 |
Additional disclosures | ||
Granted (in shares) | 2,261 | 1,665 |
Restricted Stock Units (RSUs) | ||
Shares or Units | ||
Granted (in shares) | 1,903 | |
Additional disclosures | ||
Granted (in shares) | 1,903 | |
Unrecognized compensation expense | $ 117.3 | |
Remaining weighted-average vesting period over which expense is expected to be recognized (in years) | 2 years 2 months 12 days |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of PSU Activity (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2024 | Apr. 30, 2023 | |
Shares or Units | ||
Beginning balance (in shares) | 2,658 | 2,230 |
Granted (in shares) | 2,261 | 1,665 |
Released (in shares) | (410) | (475) |
Forfeited (in shares) | (111) | (32) |
Ending balance (in shares) | 4,398 | 3,388 |
Performance- based RSUs | ||
Shares or Units | ||
Beginning balance (in shares) | 532 | 532 |
Granted (in shares) | 358 | 277 |
Released (in shares) | (160) | (230) |
Forfeited (in shares) | (81) | (10) |
Ending balance (in shares) | 649 | 569 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Bonus Program and Bonus Share Program (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Apr. 30, 2024 | Jan. 31, 2024 | |
Stock Bonus Program | |||
Stock-Based Compensation Plans | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||
Share-based compensation arrangement by share-based payment award, determination of shares issuable trailing period of average price of common stock | 5 days | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 200,000 | 200,000 | |
Discount from market price (as a percent) | 15% | 15% | |
Shares expected to issue (in shares) | 22,000 | ||
Stock bonus program and bonus share program | |||
Stock-Based Compensation Plans | |||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 300,000 | 300,000 | |
Accrued bonuses | $ 7.3 | $ 5.8 | |
Bonus Share Program | |||
Stock-Based Compensation Plans | |||
Shares expected to issue (in shares) | 178,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||||||||
Jul. 31, 2023 USD ($) | Jul. 10, 2022 USD ($) phase | Oct. 31, 2012 USD ($) | Jun. 07, 2012 defendant | Aug. 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Apr. 30, 2024 USD ($) claim | Jan. 31, 2024 USD ($) | Jan. 31, 2023 USD ($) | Jun. 30, 2019 round | Apr. 30, 2023 USD ($) | Sep. 05, 2019 claim | Oct. 24, 2018 trademark | |
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency, alleged trademarks infringed, number | trademark | 2 | ||||||||||||
Loss contingency, claims settled and dismissed | claim | 2 | ||||||||||||
Insurance recoveries collected | $ 12,500,000 | $ 2,000,000 | $ 14,500,000 | ||||||||||
CTI Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Litigation settlement, rounds of mediation, number | round | 2 | ||||||||||||
CTI Litigation | Settled Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of defendants | defendant | 3 | ||||||||||||
Loss contingency, damages sought, value | $ 150,000,000 | ||||||||||||
Litigation settlement, amount agreed to pay | $ 16,000,000 | ||||||||||||
Litigation settlement, number of payment phases | phase | 3 | ||||||||||||
Litigation settlement, income statement impact | $ 0 | ||||||||||||
DOJ False Claims Act Litigation | Settled Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Payments for legal settlements | $ 7,000,000 | ||||||||||||
Estimated litigation liability, current | 7,000,000 | ||||||||||||
DOJ False Claims Act Litigation | Pending Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Litigation settlement, income statement impact | 0 | ||||||||||||
ACSI And CFI Complaints | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency, pending claims, number | claim | 2 | ||||||||||||
ACSI And CFI Complaints | Settled Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Litigation settlement, amount agreed to pay | $ 9,000,000 | ||||||||||||
Estimated litigation liability, current | 3,500,000 | ||||||||||||
Estimated litigation liability, incremental settlement costs | $ 5,500,000 | ||||||||||||
ACSI And CFI Complaints | Pending Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Litigation settlement, income statement impact | $ 0 |