VRNT - Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Verint Systems Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to your speaker host, Matthew Frankel, Investor Relations and Corporate Development at Verint. ahead. go Please

Matthew Frankel

Verint’s and our operator, Bodner, and you Alan thank CEO; Officer. Thank call good today. joining Roden, and CFO; conference Robinson, Dan Corporate I’m for Development Doug you, Verint’s afternoon, Chief here Verint’s with

to I’d today that accompanying Before is like our WebEx a getting mention started, slides. call

call. draw Reform conference Litigation discussed your to the tab, meaning contain to those to the click of I’d based call forward-looking are to differ guarantees future forward-looking the performance. the Actual are by The on Securities these made of this revise as by of undue forward-looking our this management’s Private from section Act link matters view certain required like in as real-time on you’d of These attention securities today’s of could no also call, not Verint federal are cautioned expectations IR Investor as on and these slides date forward-looking of expressed assumes like the in on except during are within at the statements not to XXXX verint.com, then the Investors to reliance and fact and select If statements results law, update these statements. on or implied of may them. call, webcast forward-looking provisions the Relations obligation please or click laws. move statements. current materially and statements website place that other the

periods at statements. earnings in XX, measures other we we for when section Relations between to measures. of substitute meaningful not investors indicated with ended and the provides slides, in actual these the in as our companies. Form today’s assessing detailed a for could discussion believe results regarding risks investors is on those as non-GAAP financial differ from business companies. in informational Please cause because Non-GAAP to XXXX, These information, superior and from a information January should discussed from XX-K our The results differ about include year release it other and believes non-GAAP comparing is limitations SEC. purposes. those GAAP non-GAAP results comparative among isolation Please for more supplemental for to measures the our measures included see materially be and and our when financial WebEx measures For see operating verint.com, filings to or fiscal those our used focus useful financial financial filed uncertainties uses today by these considered peer reconciliation GAAP financial website forward-looking make other but measures the information management our have may Investor company of Verint’s and and

call turn Now, Dan. over to I’d to like Dan? the

Dan Bodner

cloud you, strong Thank year I’m fourth financial experienced key report our and Matt. all year momentum the across to quarter, the throughout continued we pleased finished the and metrics. we cloud in

delivered strong Here Non-GAAP QX revenue our significantly We cloud in of performance. are came some ahead our guidance. growth. highlights revenue of

mix shift our of coming in new with the booking SaaS. Our from guidance. of cloud non-GAAP came ahead EPS continued to XX% to also diluted PLE And bookings

the execution believe our XXXX, a to three. two and following ahead strength reflect diluted which this we and also cloud continue growth we guidance spinoff momentum outlook are in per improved the our results ahead, strong are year security XX% of open last year. our revenue earnings our spin-off, plan and platform pleased targeting performed differentiation cloud as our cloud to and plan. for of three-year our well At of outlined the time for targets growth CAGR Looking and our revenue year. one that the I’m raising that of of years tracking We the of I’m expect a the each business fiscal revenue, targeting we as and increase pleased for was we AI ahead current revenue year plan, share.

XX% to We’re growth. accelerating targeting faster X% this revenue year growth and driven year next to by cloud

Let and existing me we by review customers. expanded discussing many Throughout new start logos the footprint added QX many our our wins. with and customer momentum bookings our year, our

won are many cloud the the million we world TCV, XXX Avis, and in in deals of cloud Goldman And cloud in the included Group million up nearly segment Farmers industries, orders for enterprises. some larger year-over-year. strong with adoption $X SMB market different also and year, as the landed Sachs. large specifically, across brands $X We for QX leading approximately In seeing increasingly XX% such deals. over We

customers, Regarding new Overall, new new year more existing cloud as added the we logos, Gerber, believe Rolex booking XXX. Chipotle, new more the we in by the of logos, Verint AI-powered number of logos well This in finished driven open than Wayfair. strength total strong to partnerships. including the full and and our is our bookings across as both with year than and we QX, momentum brings by platform XXX added our

while Our the the key open the specifically Da automation infuses broad engagement is close to and across across need processes. the Vinci At open Because applications for are engagement helping the would customers customer three our examples cloud platform the operating ecosystem our our experience in customer platform workforce an well of design core differentiation. business like designed partners Da open gap business ingredients, AI reduce our leverage capacity further automate Vinci, enterprise. of platform and all engagement first platform our drive that of platform designed the demonstrate help elevating management, functionality resonating I in an discuss partner wins engagement is applications competitive create brands engagement, and to of brands AI-powered driver expansion and is Verint is customers. with our cloud to a that and Verint partner-friendly running experience differentiated strategy to to close world. of with our cloud The able across platform capacity ecosystem a strength our The the enterprise. brands set gap. innovate platform and the digital to designed value is a ongoing costs the their combination across architecture, includes is around

with order decided was an a our competitive company customer, products The $X expand a first several Verint additional existing platform. from for its order across in million displacement leading company. geographies the expansion by An transportation purchasing to relationship and

reasons AI Our platform partnership key were we opportunity. this approach, strategy differentiated and want open

customer for Verint This logo industry. The an out solution replace several After second from in multiple of legacy customer a order win new This vendors. Verint. RFP, is toward the healthcare platform. $X point competitive parts vendor decided million the our Cloud against the across and a of platform a with Verint was putting came customer

e-tailers. win and competitive ROI our platform the third platform. also approach, This approach, was our drivers of as AI demonstrate and scalable the one delivers due AI leading is to Verint million was the well to Analytics customer And significant for the displacement platform leading $X world’s open open our Vinci ability from from one key a and new as also of was Aside technology our our architecture a the win that included and strategy. Da the partnership of

as with strong execution the year by at the metrics of XXXX, full strategy our pleased are coming the board. we very back evidenced cloud fiscal across our Looking cloud in

our business and New XX% in indirect customers bookings saw at a cloud. in guidance both PLE at XX% solutions initial revenue existing as to initial expansions of on the strength logos. direct customers in strength compared our basis well came new booking in Non-GAAP of our growth cloud both and both to We cloud converting customer saw guidance XX%. and came growth to our buying compared XX%. as new We in maintenance

$XXX in SaaS and bookings both non-GAAP of diluted and at strong basis. of share New $X.XX delivered earnings growth ACV per a revenue million on XX%, came we

During of last initial year year, guidance. raised our times the and we ahead multiple significantly guidance ended

XXXX with discuss momentum We’re cloud visibility. to outlook. I next, and entering improved our would fiscal like And

fiscal for key and raising in across XXXX our later cloud financial guidance annual metrics. are new more detail. will Doug We our discuss guidance

our me is share factors. just driven several behind by increased that guidance visibility Let improved

and non-GAAP finished point we fiscal backlog, QX XXXX. of revenue $XXX XXXX providing starting for record strong with a million First, fiscal cloud

pipeline. we a strong Second, have

growing, is making targeting platform And partnerships another add easier Our it new and bookings PLE we’re year maintenance to third, are growth. of convert cloud customers double-digit cloud for new and applications. the to

greater our to XX back well company. is at drove During fiscal of fiscal pure-play XXXX single Last In The helping engagement cloud with a year. in multiple raised spin-off fiscal to close is to to are are expect times Today, a and year, we on revenue to revenue strategy customers gap. our million and contribute XXXX, continue growth focus cloud our market fiscal improved capacity XXX% and of focused months ago business our well. I beyond. outlook and our looking the be with believe resonating close for we pleased to growth brands partners. contributing summary, security a as XXXX, we on XXXX increasing execution. conversions And throughout and maintenance the engagement $XXX customer

as we accelerate transition, of to revenue. becoming are uniquely we from crossing bigger significant brands the the piece positioned over as help with growth benefit AI-powered of growth few is our gap revenue associated a our cloud have our engagement expect total as close opportunity tailwinds platform. cloud next we capacity We midpoint Long-term, with the to the years the our

Doug? Now our over discuss in me more detail. let to Doug call financial to turn the results

Doug Robinson

Yes. Thanks, Dan. Good afternoon, everyone.

adjustments and GAAP A in and Our as revenue of costs measures is expenses, GAAP our our financial well lease can Differences frequency measures. reconciliation our amount period. website. from as discussion to non-GAAP and will measures the expenses, adjustments, include that accelerated of release today earnings financial IR including vary our section period other between other value significantly non-GAAP fair non-GAAP certain acquisitions, Matt in acquisition-related between mentioned separation-related intangibles, and include amortization stock-based acquisition-related related available financial items in as expenses, certain to compensation

rates. related metrics, includes certain it also For adjustments foreign to exchange

in the we year continued As Dan finished QX million, at strong. experienced mentioned, X% year up $XXX revenue momentum we non-GAAP the the in and QX, came year-over-year. throughout

XX% X% full in the of For came XX% that in the $XXX The software from the and year. million, prior we increase at to for percentage non-GAAP of up is and continued QX recurring year. year, our generated revenue revenue

Our XX% growth, and year. the from came non-GAAP nearly year-over-year revenue one-third QX or revenue. to converting close and came orders in maintenance cloud two-thirds XX% revenue for new majority Of the to cloud increased XX% cloud the from

pleased $X.XX now PLE in comprised XX% overachievement, Analytics term the for convertible bookings are $XXX QX full non-GAAP in year. of QX our year. at new We fourth QX, AI driven full of we and was cash ended less our at of capabilities. balance year. in platform, with EPS of for notes. of $XXX our In increased $X.XX And than XX% PLE of for XX% and debt, million and Overall, QX to turning came year which and $XXX and the quarter And the New to came with bookings the last sheet. $XXX open compared cloud XX% diluted million the in our loan the differentiated million success million by SaaS

plan Regarding additional current discuss program, we our to we repurchase back and to tax-free that the mention now an our to nature ending this we guidance the to spin-off. I’d which maximum million million, our XXXX. the of $XX the permitted I’m I’d are to buyback, year stock to pleased existing January XX, completed for like like due year already that announce $XX buy is

Let me key start with metrics. three

transition X% like now $XXX We reflecting of X%, revenue We or year-over-year, growth guidance with up reflecting you expansion from $XXX of of we million Starting we million XX%, continue full And the XX% with growth to to $XXX million, coming for the revenue, expect plus XX% guidance to with $XXX diluted modeling bookings, from we additional respect some to respect the bookings in prior also purposes. approximately expect SaaS. to PLE growth. to gross growth new to I’d of range from compared expect information we XX% minus year. of expect some prior XX% margin expect to double-digit around for with perpetual With And our XX%, million. our margins, EPS non-GAAP cloud to we up decline year-over-year year. it XX%. to revenue cloud, operating modest of margin provide as last expect $X.XX, and

Now discuss let’s assumptions. some below-the-line

$X.X million per expect We other interest expense. of quarter around and

We small net expect per about non-controlling of income have our $XXX,XXX interest quarter from venture. in joint we a

stock And year. tax shares, our effect reflecting expect the of we for program. cash for fully and flat an quarter this rate expect of XX.X% each We around the with buyback XX diluted year, million

see how year me progressing. Let discuss the we also

approximately assume QX. revenue, of we purposes, in growth modeling For representing million $XXX X.X%

million OpEx expect QX drop sequentially EPS from driving We of couple of QX. levels, to a approximately in $X.XX

the XXXX, cloud our of $XX take million sequential revenue percentage revenue has For of the year, a half we QX from each our revenue. fiscal and and $XX the of journey. our while The to the coming and increased it cloud growth increased. our our came it million now QX finishing increasing XX%, minute cloud. year the QX. with sequentially total typically to XX% In rest strong QX expect revenue review like multiyear with between XXXX, of In fiscal non-GAAP steadily in from comprised to I’d quarter

XX% around XXXX. we the are in around For year, fiscal targeting XX%, and we’re current expecting

we As this expect cloud basis, year midpoint on of crossed we million. out, basis year it transition $XXX a last and to the of excess we a with our revenue previously cloud in bookings pointed revenue cross on

We revenue, adoption. have revenue over many Verint Shifting strong at three-year the recurring tracking beginning and clearly benefits more improved very are In visibility in our has the of we better out achieved strong are offerings the cloud customer momentum, to last cloud scale for laid and we our the lifetime. and with had mix market summary, are our we year. including economics pleased of ahead plan seeing cloud

Our revenue growth accelerating. is

and Most we we and balance differentiation growth. a long-term believe positions cloud us to margins importantly, strong sheet generation. our our expect cash AI We strong well for and expand gradually have

the place Before I’d that, at with be let’s Details discussing differentiation early will be we taking in to a And will Annual Investor Q&A, questions. like date. take June. up at for operator, that announced which mention our AI open our will Day, line later

Operator

line And of our with the Levine question Peter first [Operator Instructions] coming from Evercore.

is open. Your line

Peter Levine

Great. Thank you taking. for

your dollar midpoint. force, Like So But are cloud record think, a like the million dissect, guide cloud picking the assumptions customer seem now transition, you’re of of XX% the behind is maybe momentum seems everything can the number pipeline midpoint that of to healthy, guide? on-cloud in strong, growth I with be you you’re above cloud I prem net are full the saying up. think new at what well signings. transitions

has to the of cloud does Like growth, growth? – this to us Thanks. call happen cloud again X% why for in what north what XX% So decal see it year?

Dan Bodner

when guidance we XX%, recall, We versus for got this up some XX% we’ve guidance. the year we a did plan. good last through and guided as year to as we And guided year. we We with Yes. also XXXX three-year CAGR and of is traction, ended XX% you – initial last the our move fiscal

We’re the same taking approach.

quarter our we QX We’re on last gave we We year year for and – we starting for the based guidance. gave based what now. our on definitely – with see can increase ARR XX% We right this gave guidance.

up guidance between our XX% are moving we to XX%. Now and

able early continue raise and we to we’re accelerating, year. in again, see cloud be guidance we will hopefully adoption still to as the So

kind of the we give guidance. that’s how So behind logic

we what moving interesting. that think In already of that segment I adoption. there of the the half the cloud. to cloud report see terms it’s did we We Enterprise the SMB year also in last definitely market, second segment, in is saw the in is Because

think their them when but some having two a discussing time with ahead Verint ready to are what even the about are to that customers ready. they of be are need be they or ahead, larger planning customers many with and discussion help this engaged years or now we are from We line, customer three they so year

don’t some saying, we breaking told want our want another smooth to to help to should. also engaged in customers that they we very move that And do encouraging actually are the that customers way. maybe a large happy see these have we some now cloud. obviously very because, us here And to with we is news that very point customers that be data we we’re So reported

for whatever booking QX, customers will rather a the IT direction. in buy XX% a change people, have they data are, And from themselves. new big the chain fact you getting what the cloud see came for booking on be and year. to acceleration that a of they cloud, In reasons the some same from know, shortage our definitely centers, to we components by they – as pipeline our encouraged are have than company the faster see PLE-basis supply But nevertheless, a with is feel issues that of which like and cloud we

to I all cloud. us. conversion down, position XX% a goes contract key is to how momentum, came So When This hope metrics this revenue one third we at converting in the to look about continue guidance. cloud continue we’ll it’s cloud so the well, our from see you be a revenue, of broken raise of if to and for growth maintenance

rest, have growth because expansion, the growth accelerate maintenance an million about customers year, – than we’ll new I assuming dynamic the good. and maintenance which we For with obviously And we’re came logos as we growth, see we same able we revenue spoke conversion of and is not about; have actually new if of from more conversion. cloud XX% to maintenance well will now have momentum acceleration the this great conversion. conversion Right cloud to as contribute Obviously, acceleration well. of $XXX be

the So of the how we is for where kind and outlook are think about this we year.

Peter Levine

on use I maybe insightful. the that’s just No, one more could And macro side.

and can you relates longer any are your as see color is is European the environment, sales at let software, or exposure great? of there geopolitical what guide any disruption, into Europe, in us downturn ourselves baked of know Thank assumptions So churn Europe kind cycle, your concern would for be it specifically of think to a risk EMEA, segment, what economic deteriorating sales I the reinforcement when in? you. kind looking in any investors

Dan Bodner

to. happy yes, Yes,

So comment look our Russia. when for at we I’ll a separate EMEA make and EMEA business, for

$X year. sales any new from our backed in guidance. point, not We from already we that’s million generate last So Russia of at do revenue to expect generated this Russia and

the doesn’t to $XXX new Russia. and include million we any guidance that So raised to sales

now see For and the EMEA, right terms don’t of activity demand. change any of rest we in

concentrated And Europe. XX% about crisis, a don’t have take, is Europe, depends the you of disruption business we is at point this obviously rest We already define Europe. than how see heavily is any Russian of not of or the our our give more U.K. guidance. It’s on the into baked result into – and as Russia

Peter Levine

Thank very you much. Great.

Operator

of And line our the MacDonald next from coming question Company. Needham and Ryan from

line Your is open.

Ryan MacDonald

Hi congrats in and for quarter. lot environment, questions the and Doug excellent number of the whether those from thanks wins a logos. an the notable was quarter customers of on they it the your competitive starting a and logos Dan competitive were highlighted that maybe taking notable with fourth just my expansions or existing Dan, you were new in of within replacements the business

if sort creating here of whether it’s that’s with incremental or displacement opportunities, existing Just you’re within the curious Thanks. any changes seeing customers base? new

Dan Bodner

Yes. Yes.

currently about what very is think we This see and the the long-term. important and question. I differentiation varying

of address So it me let kind completely.

know today? believe is have and is and both I where important momentum for brands And thing. gap customers. but it before, we a It’s is And is with It’s I is first, is, a right big very engagement big are platform capacity mentioned gap. our issue. strategy this think cloud differentiation The now. a focus new market, is the growing that with what’s it’s times growing helping and our issue logos. But existing clearly the on one all it’s well the mission, we by laser-focused several the evidenced is which capacity I resonating that I So close behind

workforce And things. guide and our trillion see the spent they more also for we told customers asked solutions elevate they and the enterprise-wide many we in is them us being told can looking three already us used cannot brands remain for them spend is for effectively more must the on that the So cost a brands $X engagement world, They most told experience. to in customers and longer customer customer the us know, we and address it. And just silo, our you that more no can rapidly strategy. iconic are increasing, told disruptive years they let and have We they as many an They and must it chronics us hiring. expectations that that mission be labor years. and be and consumer

platform, which the capacity this this to it’s designed we our this have Da behind we an AI-powered Da the is is Cloud brands has the a close customers. we really engagement So for been focus mentioned Verint because as launched And to help – and platform Verint Cloud specifically platform, so listen Vinci differentiation. gap. competitive great I and many win And the before, it’s of Vinci

to So great future? because what is experience. starting this gap wider. a a more gap are more ourselves, we’re we And continue they we the demand capacity because widening now transformation to so is this it this address differentiate digital recent is differentiation we It’s but because customers that disconnected digital can have to strategic And only engagement realize about this have and also Where many customer challenge, and for more creates going? today, customer quite believe the asking interactions, elevating creating what’s and making this capacity and is it. journeys is

the address cannot We more in say any and can "Hey, customer make silos in before. early enterprise, I more more, need to to to we and elevate customers just, experience." are need automation brands we market. more more workforce efficient So like this and take like that we action. we have we the operate need So way we engaged they feel have say, did fact across the and in We with and start to that adopters

So many it’s for across industries. example,

connected have Verint care, of of across enterprise a we the one that solutions. deploying and different in is deploying across In our all-in-one platform, Costco example, number solutions Humana the platform. for retail, all enterprise in customers in Verint So one health is

already they So they CCaaS, need need they UCaaS we silos, and the Different that be that that, have applications communication to because across many to very automation holistically and also solutions. connect customers to the and that bring enterprise across infrastructure implemented also and workflows and can used to infrastructure. but realized the all to collaboration to why, platform

think So very we believe that it’s that the we win was be and the by focused the on more digital to as customers an we on this to created problem and based We today, this to more brands can strong for simple shift early-stage are engagement do look very gap. to gap, quite very, well strategy continue capacity recent market offering helping laser solve close them. and we a

Ryan MacDonald

Thanks with was week, follow-up in and my customers Enterprise we functionality event guess, the that and assist and AI-enhanced Last and maybe it I there the on vendors question. demand sounded attended like for color IVA really the then at a just lot at the a lot agent had Connect Excellent. of, of is event.

had assist the XXXX. agent You in late real-time launched

Just least well year? be Thanks. of into this given how the heading that buyers increased solution that of in market level curious resonating positions you sort is demand and next from how at

Dan Bodner

Yes.

life. is for I but are they so more in think that into demand and into real looking the infused for processes strong there is customers AI, in workflows AI that is can business actually use market our that importantly

to the customer a understand But to the not experience. understand kind intelligence the question means contextually say. respond of but more bot it make best AI, about answers, to the the the you what generic elevate bot the having not bot, what’s because more and bot the give is is intelligent to just the is way, also this important So of is

they what customers, knowledge do help while busy. IVAs we working them. be the agent trivial help connect and They this trying with can agents by So we because so on are not knowledge focus on to interaction. IVAs an to cannot with contextual to And understand they is need on, can how we and we are and distracted so management, infuse bots

many, infuse well ability part AI workforce I normal we to and time the for we’ve is a engagement that making our the how So is doing Verint think because them. agent where workflow in really it whole way understand years. And the been their operation really real in of helping into in in helps and many

It’s is customers very think a the to penetration efficient, agent better required into an in I one experience. today. this that reduce early assist few areas make stage penetration In elevate early mind, the of and give to my costs also is percentages, workforce it’s more is market. stage. real-time the all low workforce order answers But is the

Ryan MacDonald

Excellent. Congrats again a great quarter.

Operator

question next Our coming Samana with line Jefferies. from Samad of the

open. line is Your

Unidentified Analyst

Hi, our Marion [ph] Mason questions. this for Thanks is Samad. on for taking

unbundled the some quarter. staff? revenue and SaaS nicely you perhaps in reaccelerated So drivers? elaborate in Can is factors on of the Maybe bundled the discuss

Dan Bodner

sure. Yes,

growth, including SaaS expected is XX%, years, to should Amended or we business take. Managed a It low. and So managed cloud now Services of give is Services as services. for indicated grew our couple grow around XX%. be

it happened to what last be that’s So year, we expect this and year.

that as deploy overall of partner. with Within host indicated, can offering, SaaS any multi-cloud, then a And we software so choice, the is we in different cloud types choice, business unbundled and SaaS, grew there where hosting very SaaS how actually bundled cloud That’s cloud the environment we services we which XX% do the hosting order or support one customer basically it’s to into they SaaS the and but in prefer not deploy they with two order. And for stream, get hosted or we an of else. have bundle how more each their private what is allows that’s public And in obviously, accounting that we a somebody anywhere, on for host provide it a the hosted than single is So XX%. by the they which any any any report we call clouds. to revenues so the services. can customer case,

Unidentified Analyst

year. new full more I sales XXX then And it a the you. drivers Thank direct this we or the the coming behind quarter, added driven is deals in for these If new growth, of Okay. of logos partners? being think, by through leg you think about XXX effort

Dan Bodner

would new driven majority the logos by say the are I of Yes. partners.

many And We the it’s direct opportunities have partners. of several force hundred are with the either it’s it’s driven partners world. working by sales is a with or variant, we for Wayfair, larger, When we’ll smaller There which most and hope company logo around company. combination are partner. opportunities of the our which growing And are then time. the small grow companies a grow that the there and start is very over like new quickly,

new So we have very the centers to customers but excited I And in quickly. globally also about that cloud to particular, capable because any around scale we the in cloud before one scale. able Verint we companies have supporting of help we is world. the want to is logos, mention did – are of And we differentiations

grow they customers So of can go If quickly, they varying peace have the the mind. with solution.

the We as wearing have of largest – engagement customers. customers in the customer in have we one the probably world

or the it’s as retailer many as well store well solutions we center platform, important customer right our mobile in can connect different of type apps. or which know is customers have in we website the as also as And support scale. the So that or e-commerce engagement, in branch, whether to

sales many customer have new new customer logos. point different relationship we with. customer that So many base have have definition, for is to points are across engagement touch that force by partners these logos, we all across another our to direct on and are, that they is But important the hunting of focusing ability solutions

Unidentified Analyst

Got it. Thank you.

Operator

from with coming Capital. the Dan line Bergstrom Our RBC next question of

Your line open. is

Dan Bergstrom

taking Thank my you for questions.

those across larger pointing telecom? say, talked some services, verticals trends the As government, transportation, spending of of quarter. financial in some Anything to worth out the across you

Dan Bodner

coming We transportation is Yes. Well, back. see We we the as before – obvious. large mentioned That’s airlines coming do Avis back. of deals. see one

many customers. airlines as have We

So now coming definitely not the COVID given surprising back. that they’re pandemic

can right compliance that elevating for able spend you workforce experience, that be compliance, they important is sample. you very there’s because services for that to new they’re always – the customer conversations in customers strong on and will I things? to How policies to using in all compliance spending health think want saying to because to care. are Again, money And to small there your know looking continue listen Financial day have long. do a be talking going AI just the they is that’s automation. addition you

having AI, way to is ensuring listen conversation, automate all this So to compliance that your the entire a process. compliance great

I that’s on show But the side focused e-commerce there that think more across retailing. the So industries. with Retail strength. on is to financial strong continues They’re online services. strength

they market have on spend labor. I will think is spending XX more. technology $X is customer times trillion and that and otherwise, billion spending the and market be labor, generally, to The in because on engagement on So $XX technology

but extra no-brainer. a can that ROI. huge if obviously, something that’s technology, times a find It’s on they spend labor, be So more XX save

Dan Bergstrom

more I for plan Thanks, a guess, with Dan. us like the investing And in of correct? you kind maybe Doug. updating and and a model, leverage feel raising transition cycle the about earnings then some guidance this providing of level still with good companies, into then software sounds really opportunity, job done of the with Doug, here. presenting it and good again investment you’ve the us here lot you’re off

Doug Robinson

the sharing Clearly, we it’s investing very finding and invested and the mean feel gone cloud but we’ve through I back our about future we’ve lot platform in good a AI. with transition, lot shareholders right, right that we’re for analytics a all as this at, investing of where level Yes. in growth. trade-offs,

like kind we then cetera. run OpEx, always et terms see kind on sales and do. things invest around of level, that that kind that as prioritize within there’s of in of and to and use we of top and So R&D you XX% can of an But of

efficiencies, trying the so more in drive efficient to that invest it’s can to going we the get to areas future trying growth for us. So are produce

Dan Bodner

for of But Yes. guidance and growth expansion margin XX%. our EPS is

Dan Bergstrom

Thank you.

Dan Bodner

Sure.

Operator

with question next of coming Sachs. the from line Our Essex Goldman Brian

Your open. line is

Brian Essex

motion in and Thank the your that Hi, Dan, applications – How understand on how but you top adoption Da the outlook are speak, you’re if Da for there? for traction Da your Da go-to-market to of capability is the you of getting develop as as of – so good in Vinci to a years couple any the us And service, using question. a side. or Vinci a afternoon. next now for infused and just you what taking that SaaS is on on tell partners drive on develop better Vinci Vinci offering maybe that? of I to with question. could understand able service, kind kind it

Dan Bodner

about an focus. that’s Yes, Day Investor and I’ll talk And June, going have our be to it. going to happy to in we’re be

live exactly Customers the it AI for We’re where platform. Vinci, And right? processes It’s go because AI going discuss Automating it own is on again, automation, the automation. to and because with and is secret is looking are Vinci going Da Da really where quarter an ingredient. is are its bring to not we and sauce. the at

models So AI to is that’s we to running applications. But see and Da Vinci the so develop mentioned, recent can available in partners APIs open we SaaS also want that’s you platform, partners at partners a designed the last own that’s And announced just as how all I give they add and so looking to to quarter, their to for we them They various those leverage development and don’t value Vinci applications enough and their Da API it is that that resell can not the the Vinci services we started core. because to value. they own. develop create. And Da reason

that ecosystem something in partners marketplace. have it about our XXX developed now have and We put our around

those the marketplace. provide and development the big Verint a us make to to expand on and customers that’s push as to this well, develop definitely opportunities available everyone to marketplace So partners for but year

of So our part is of greater building around platform a platform partner is strategy. ecosystem part a our

exposed Vinci we to far, for – commercialized. So specifically, be so we services Da

it’s revenue, of terms minimal. In

users ecosystem. this of the to value partner, to we of be the mentioned, developing have around platform good R&D, variant. greater XX% – just important more and well not Vinci, get obviously for both spending platform, as for we our develop on expect our Da partners Doug that’s spent stream, of very some don’t value, top I customer our So our if overall revenue we adoption, on partners by it the a because revenue think as R&D. I But but major ecosystem end is

months much I what’s couple pretty of again, time will driving. a June, in have that’s And want long So in take too don’t here session to a we Vinci. on Da

Brian Essex

it. Look Got it. to forward

And for margins, in we gross operating a XXXX, and of Doug. kind what’s thank margin margins couple margins, And of fine-tune the maybe for the going drivers as were the forward? on of side, the primary some takes understand operating seasonally, of movement for margins quarter? we think for So just that. we then for that our you of how should some models movement then both puts about both gross and Could

Doug Robinson

Yes.

right? a gross there, some but efficiencies So both a in you perspective, to QX, the expand guidance, there’s the with and issues margin gross there, gross on at XXXX just sides, From a off both In XXXX margin fiscal our bit, timing for a popped So that looking operating see bit the and we’re of mix OpEx can of we’re some margins looking driving components. expansion little kind it’s little level. for expenses levels.

hosted the of only dragged down. high. about the margins is cloud XX, high is professional in The – of very very They’re kind are XXs. that the business services nonrecurring kind So

in professional will smaller the As become services a that help the future margin. piece overall gross

gross that, that’s we of And go as more little bit over time. forward we slowly. shift occurring to kind it’s the margins expand from a a and too So mix expect

Dan Bodner

Yes.

if and – margin take to was the want recurring model me XX%, on gross develop long-term XX%. was year – Let revenue your revenue margin, margin nonrecurring you the last

this because at with recurring high the XXs the to said, year gross long growth, going But it’s gross where in transition, revenue cloud becomes to And in improvement bigger Doug over as term, have modest aiming three, is much we obviously, margin mid- then the we’ll of accelerate start revenue years. next to So piece. this recurring revenue, are as margin. and a where we’re five

Brian Essex

you Thank Very helpful. very much.

Dan Bodner

Sure.

Operator

from [Operator Horan coming question of Instructions] Oppenheimer. next the with Our Tim line

Your open. line is

Tim Horan

hyperscale competitors? building are entering Or Or talk you Da Thanks they see Vinci little ultimately, you platform? guess, guys. as the CX relationship bit them about any And the they around guys? Could the because they like market? I with see or do most Are a competitors cloud seem them major thoughts they the Are a partners? kind Thanks. partners. of to do you be –

Dan Bodner

Yes.

a is engagement I innovative is customer the looking And market think that opportunity. for big the market solutions.

positive. So – it is

customer the new because they tech software the industry these that market the to for joining customer more positive engagement it’s large engagement. approach companies, enterprise-wide big bring think I

think it’s market I needs. – it’s the So what

Verint the at at Amazon a and our internally look and cloud hopefully, point. guys – we a partner. partner. if who is they’re Verint is is use Google a So so three a partner, products also also Microsoft not the this customer guys, also And is Verint a but customer, customer a

bring platform So all in more close as Because more enterprise together, see big what gap. bring the and to the to partner with they capabilities companies we enterprise-wide this they their where opportunities for the with tech show think three to are partners. Verint’s road this I I down interest the And market. with table capacity

adoption. actually we I more what can of create the can enterprise adoption we market We believe is strategy. think the together, accelerate

if very the – are think positively this friendly. seriously partner will think market, that we it I So Verint. into the more I impact growth And get they of

Tim Horan

much. very you Thank

Operator

further time. Thank showing you. Matthew call no like at back this turn to over questions would the I now Frankel. I’m to

Matthew Frankel

today. you, again hesitate good everyone, Thank night. a right. out soon. joining us with Have to reach All you, you look speaking me to and thank questions. Please to forward And for don’t any to

Operator

for conclude the gentlemen, conference today. does participation. and you Thank that your for Ladies

disconnect. You may now

Verint Systems (VRNT) 30 Mar 222022 Q4 Earnings call transcript