VRNT - Earnings call 3 2024 | Verint Systems Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Verint Systems Third Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] . Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Matthew Frankel, Investor Relations and Corporate Development Director. ahead go Please

Matthew Frankel

Chief Good conference operator. Verint's thank for Roden, you Grant Thank today. afternoon, I'm our Verint's Alan and call Verint's Bodner, Development here joining Officer. Highlander, you, CFO; and Corporate with CEO; Dan

to started, our call that getting a Before mention presentation. is slide accompanying like I'd today

click IR link these the website our at select click on If view real-time call. the of slides you'd like webcast call, section during Relations on tab today's conference and Investor in and to please the visit the verint.com,

as also attention on securities of I'd Act this to fact These laws. current that the statements forward-looking like management's contain update this required to by Verint on performance. them. forward-looking statements Actual within or of are in are no and expectations federal by results Reform implied may statements. made Litigation the cautioned XXXX of are on forward-looking statements undue could Investors these expressed revise place discussed and differ statements. not the Private to reliance except obligation as to The draw Securities guarantees meaning those assumes and the as from other of date these your certain or law, materially provisions future based call forward-looking the not are forward-looking matters call, of of

filed for indicated filings the ended materially Form year those our other XX, uncertainties our XX-Q we the could and the from fiscal with these these cause please risks other when more SEC. results October XX, a ended and of make actual to discussion quarter XXXX, for XXXX, For differ how detailed forward-looking Form and XX-K Verint's January see in statements,

of as release at our of include companies. on GAAP to Please reconciliation slide today's measures non-GAAP non-GAAP Investor for measures. investors among results earnings comparing see Relations and verint.com we financial our focus The presentation, peer website between financial periods the and measures section today believe discussed a measures our these measures

or should regarding GAAP believes isolation information be is information for but our superior to considered information a substitute meaningful management operating financial our financial purposes. in financial supplemental because company Non-GAAP limitations not it provides from, results as by from the and those to used and non-GAAP and The assessing business other investors is companies. comparative measures may informational have for when differ useful used included

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

Dan Bodner

with in a variance discuss you, I next preview of review differentiation. on we ahead to pleased quarter week. in and results. report revenue the will our AI start with our non-GAAP expectations, Then our of platform finish of trends I'm Thank wins, that key track quarter. Investor and QX are and will diluted Today, fourth I growth provide EPS double-digit our revenue year strong to Matt. the will finally, our for And third Day a agenda our I came

revenue $X.XX. $XXX at QX in million diluted and in non-GAAP came came In EPS at

In our our addition positive our we results by several coming innovation. trends driven expectations, ahead of AI in saw platform to

significant a SaaS more of bot is prior included than First, in our from increase AI-powered QX, which XX% the bookings year.

bookings AI Verint's new cloud. demand reflects in the which vast is the last only from came SaaS Verint majority of improvement bundled year ACB our significant This for as Second, offered SaaS. in

the automation we'll bots of our how growth. people and our various Investor and discuss to week, enables working next We build impact in AI customer platform on is AI to leverage to are pleased bookings much a more expected detail to that from brands the workforce SaaS AI to more more positive the Verint's together adoption seek brands have and see adopt At as platform. shifting CX to our bundle increase Day

logos. new expand more significant have adopt wins continue turn orders large QX in QX, customers In globe to across wins and for to we to growth. and as the million continue than $X enterprises and excess of received applications TCV me our We more million from $X across services Europe, a XX pipeline AI care Let existing entertainment in TCV excess million leading $XX platform. TCV leading order TCV included a large company the U.S. North and in a a of a telecom order in These from in from order America, company $X leading million company a orders and health

pleased included each AI-powered that orders these X bot.. large of I'm

Vuitton included respect Louis again than QX such In more in fact, brands to bundled logos, Sky. XX including CarMax, deals X our With added new SaaS QX, large as of largest XXX Verint we and in bots. logos new

platform new expand have logos objective over bots more with is and them time. to cloud Our purchase in our

In addition of QX, to that increased our than the report to end these XX% pipeline orders, SaaS year-over-year. of as XX-month I'm more pleased

While interest macroeconomic Automation we've pipeline. cycles AI year this due elongated strong CX customers the growing in to environment, reflected for and sales seen the is by SaaS our demand expanding is

and the -- and Grant discuss with growth QX revenue finish in year detail. Regarding in fiscal to our 'XX, double-digit we later, more outlook will expect QX

the with transition Investor chapter and week Day, our CX Automation on acceleration. focused last our completion review and the next at Next discuss next growth we the leadership years, over X of will SaaS X years

Investor preview Here is a plan Day. we the to quick cover agenda the of at

our following business. of will years the cybersecurity First, we review the last spin X

of we Automation in with increased SaaS large CX transition During this a as customers. earlier every our differentiated transition, and year, to this a SaaS total now platform our building shift year part which was revenue Also, while highly launched we complex this can chapter. execute period, our focus enterprise executing invested next

our X the next AI will the agenda years. The next second topic of opportunity driving on the over chapter focus

the deep our today. platform review platform a AI-powered bots in into available Automation the our including dive XX and CX provide AI will differentiation, We

with We will go-to-market discuss our base. AI customer opportunity the and our large

agent our and customers, process bots. in we worldwide, a million agents platform annually. to billion X workforce to Verint we base them and positioned augment has this enterprise with are customer interactions X We large AI-powered of support helping base XX our million believe well open

a logos. we people working large together, of and shifts our bots and the a to workforce As opportunity significant have with in customer base market new

AI is agenda impact economic adoption. positive of increased The on the third the topic

Going forward, Verint shift agent overall the deploying fewer fewer market will us to with people. SaaS bots our revenue and for and the licenses provide licenses accelerate well is TAM opportunity more to both increase Verint positioned growth. more

To the bring model. we AI to specific this our and how to positive we long-term will examples provide capabilities impact of life, monetize financial our resulting

Investor in to pleased also -- strong QX encouraged non-GAAP revenue we're double-digit We're diluted to are revenue bots. in chapter next of by QX. you look and about Verint summary, adoption logos growth our our customer Day. In and the adoption forward increase We're increase the and excited year and new of addition EPS finish at the overachieved pipeline, by track of on driven growth seeing AI the in to our have and customer with in

call Grant. now Grant? me to the And let over hand

Grant Highlander

everyone. Thanks, Dan. Good afternoon,

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

QX. slightly let XX%, me gross results. $XXX above in came at at $X start XXX came strong the of an our Revenue of Non-GAAP with year QX million up Now overview margins in prior and from our points ahead million, basis guidance.

be continue expectations. with margins ahead expansion pleased diluted of this The overachievement our year. of non-GAAP $X.XX, EPS progress strong gross of revenue gross We to combination margin our $X.XX and drove

about the EPS. annual of of $X.XX quarter XX% gross around $XXX margin guidance, sequential at year-over-year midpoint expansion growth, QX, our of non-GAAP diluted For expect of revenue, representing another we million and

As large quarter, by sequential revenue revenue in our stream. increase is QX significant of unbundled and driven we growth last SaaS our expected discussed

minus the for our diluted midpoint plus is and year and guidance. For of $XXX our $X.XX revenue revenue 'XX, fiscal guidance non-GAAP million, at full EPS for or X%,

discuss leading in metrics, with more our I later. provide But on came additional like color detail very will important positive. I SaaS first, our to Starting performance. guidance several indicators in would QX

is The mix. indicator first bookings

New $XX around or of million million, rate annual at in bookings $XXX SaaS run an expectations. came consistent ACV with our

XX% of increase bots, year. representing at mix nearly in from bookings Looking SaaS bundled SaaS of QX, SaaS AI new adoption bookings in more the our prior for than ACV SaaS XX% to prior year. large in the included our new a were the ACV bookings compared customer Also, XX%

forward. bundled bundled growth bot are today, the Since we innovation SaaS revenue, Cloud, report Verint in drive SaaS offered as which our our in stream we expect revenue going our bots to only

pipeline. is indicator second The

growth was strength by of to mix platform more has XX% now to SaaS driven XX% continue bundled open trend, our SaaS also bookings up pipeline We than the pipeline, XX-month and AI reflects see our which and SaaS bots. the nearly of our trended bots. and strong which our our AI pipeline year-over-year represents platform SaaS, Similar to in

revenue. to Turning SaaS

for Bundled ratably have we is in SaaS revenue recognition discussed cast quarter-to-quarter. fluctuate revenue difference rates the accounting year-to-year under As SaaS as the this the well revenue revenue very past, upfront. bundled over recognized are term as recognized of unbundled contract, unbundled is predominantly can to SaaS treatment, different. whereas the the SaaS XXX Due ASC in growth and from significantly unbundled

I normalizes discuss accounting and revenue SaaS will stream these Therefore, differences. that the bundled separately share and unbundled ARR also

the been growth quarterly, As revenue table had on SaaS you bundled left, we has QX. see and trending of revenue can up another sequential quarter in from the

bundled growth for again sequentially We we the revenue bundled revenue SaaS. in expect the expect SaaS quarter year, fourth to increase and in double-digit

has around see right, on significant and we million increase our the SaaS and $XXX From revenue you in quarter-to-quarter, QX table to the unbundled a expect of can fluctuated revenue.

for we expect in for year, growth growth quarterly, unbundled the can SaaS fluctuate year-over-year revenue full double-digit SaaS. unbundled While revenue also

This unbundled is part in provide program these a customers revenue. contracts which that detail and come predominantly the what our increase me value contracts We of on renewed. were upfront is SaaS recognized the some is for started in driving we sequential the as ongoing up ago, unbundled recognized years when we which the is more -- large contract revenue SaaS SaaS quarter in offered program new Three under renewal, in multiyear QX. Let our

significant for a up unbundled we amount respect QX, have SaaS With renewal. coming contracts of to

fact, QX million the fluctuations analyzing drives in unbundled sequential revenue. Overall, renewals. increase by In SaaS our million $XX in note to driven quarterly important the these unbundled also it's is fluctuations increase revenue, SaaS quarterly SaaS when $XX that total revenue of $XX million of

XX% growth. year-over-year to XX% SaaS which brings our to expect about Looking in year QX and around forward, we total increase revenue full

turn the now unbundled is me SaaS fluctuations. which to Let through ARR, look to quarterly way a

XX% reflect to to to trends view consistent contracts at SaaS. rates. As SaaS in revenue I'd and our now came becoming bundled and year-over-year, understand other reflecting an streams, SaaS Verint and like our revenue annualized growth We support. is a unbundled product-related briefly to important ratable the the bundled a shift SaaS QX shifts ARR SaaS our renewal customers And ARR the just X covered to and revenue SaaS metric discuss software ACV reminder, SaaS new streams. normalizes all and and Cloud solid growth as perpetual bookings

decline we base around perpetual gradually Our perpetual In and QX support SaaS remain in QX, as over QX, we at our $XX revenue to time. in to license in expect have support forward. transition, it million to as came SaaS million completed revenue going shifts our continued at to our $XX and

million. expect Investor streams trends For years. decrease the revenue we for will X Day next next $X week, discuss of over X we product-related At software approximately QX, a our

continued Year-to-date, report margins points Turning to in year. the at XX.X%, that our to both same last non-GAAP to and our am XXX gross non-GAAP margin gross period the came basis to to up profit. XX.X%. sequentially gross quarter, I year-over-year pleased in compared expand

basis For margin to expect gross more QX, year-over-year. up than we around non-GAAP also XX%, points be XXX

our the same capture portion We believe for them innovation. it to costs our a brands ability experience. reduce ROI strength Automation way enables of to in our solutions, increase CX the these time, benefits AI as able is we while elevating creates savings the Verint customer margins. price significant of to our which gross gross margins customer at reflects

Day will to adoption discuss economics Investor improved our week. further our We also due at next AI

$XXX guidance. On basis, non-GAAP minus million, guidance for midpoint revenue. the we our $XXX QX, million plus or Turning to in At annual of expect X%. we of expect revenue, our a

margin increase gross points $X.XX expect revenue We XXX basis diluted around the EPS, And midpoint both margin year-over-year. and to guidance. we for of operating our at expect

cash Net expect around income for X.X% around we around outstanding. diluted expect interest $X.X million expense we fully rate around assumptions and noncontrolling a QX, XX million. full And of from a and $XXX,XXX. shares for of Regarding below-the-line tax other the year, interest

Turning to our balance sheet.

be a good continue We in to position. very financial

well EBITDA year-over-year remains XX-month months. I'm through to strong Xx our up XX% supported last report Our further pleased cash net flow. GAAP cash that the is debt under and X first is from by operations

Regarding our X-year And QX of $XXX close a shares. previously announced one completed. to we date, we expect last stock new program, year announce but program, million buyback the repurchased is as was to worth than once expect complete to $XXX in announced million faster we current to a program This program now planned. it looking forward, have

pipeline indicators leading expectations SaaS revenue growth bundled fourth to QX. to year double-digit pleased our quarter. and We are in are track on -- bookings we summary, In SaaS finish in overachieved the by diluted the non-GAAP and mix and strong positive EPS we encouraged are have in the with revenue

we Next AI our and financial week, dive Investor differentiation, our model our adoption. growth a will next Day, of review at into AI discuss driven chapter by deep provide our

operator, that, . please open line With for the questions.

Operator

Needham. will first Reilly question from line Joshua from Instructions] the come . And [Operator our of

Unknown Analyst

the noticed here. in you All quarter out macro and release, the to a elongated terms front couple just that last ACV? sense better the job I off or there remarks that with of cycles to give macro the . Can Nice the new call maybe the been shift a us anything sales degree Maybe press the on didn't quarters. you starting bit on prepared question. a in in led cycles sales little a has just the you right. net had of of in

Dan Bodner

Yes.

is no seeing I think we're what that change. that

expectations that sales have the today. cycle we So our adjusted at market dynamics of to focus reported the and our changed, the elevated we year, but not beginning have

shift driving economic this next that But in is shift are happening the all bundled better revenue we of because year. it's the year. AI. see So hope more that growth driven the lot that by booking. the environment the we change year and SaaS really a QX, we'll next what's that important is lagging reporting is is And

explained, on Grant I touched As that.

the bots the Verint drives in which are revenue SaaS the all innovation, Our in Cloud, conditions. the platform offered only bundled

because platform was SaaS we our and deals SaaS QX. in QX, in in out And the So of announced that customers very bots adopting the came if are quarter our a open CCaaS with full important of was first XX by quarter, with -- actually the motion in largest way, our middle bundled X we QX market customers. And the bots.

they came will our Verint. AI customers way from bundled obviously, SaaS that's the in the because So consume

growth reported much And course, bundled and year. now pipeline AI-driven. So is we're pipeline shift. which, And a that the is -- booking revenue other the SaaS of of is the next again, we is very all and in thing, it's QX, XX%

customers and therefore, shifting more change SaaS. bundled no our from to So but in to environment more shifting so on, economic behavioral and definitely change AI

Unknown Analyst

head agent And already if this And discussed at something and of this you it. kind That's their being they forward, fewer contact going concept more are bots is licenses look helpful. of customers with Got center today? planning then shift count? center accordingly is vendors? products think with your only for head few count contact technology a from something still agent but out the impacting that years is this other not you AI Or

Dan Bodner

only many it's same that's happen. discussing reduce happen this CIOs in experience time, elevate and not comes definitely over personally fast to CX. going discussion the and the this and to way We how desire cannot Automation question. just it's is elevate going costs. definitely every hire met they up and the can are to I question whether with quarter, continue to the customers CX increase our that at The They the customer have because is to

definitely is our with the so the that of customers. discussion And center

kind and many And and customers to to the we together. up in people it workforce, differentiated. provide our that's they platform our want platform down call is dial how way in have do actually for very working a -- we mechanism orchestrate X bots that why want many people, also bots orchestration their workforce. to an we Because of of how And to

it's going they of So from when growth to people also shift a examples and what And TAM next tangible spend again, bots of and happened you time with to the of will lot the and very that bots examples spend to to week demonstrating in customer then the power Investor the variant what opportunity. Day, a the we're see technology, giving happened win-win.

bigger They decrease spend decrease the a much net spend. are customers the lot because will they Our the labor technology increase will be to of money. will more but save going

-- they is license. expect than these license, agent expected impact on loss gain increase we far that the is bot licenses as as buying from bots a greater vendor So from Verint the more spend we on technology the the the

again, impact X And phenomenon into the bring can we'll the and provide that for a you model that model years. economic next so all

we before where And answer, X As look to mentioned agents. our we rates complete we million just when now, again, -- at renewal QX. rates, support are I and good the in renewal currently that

-- not product. loyal base, very them. X have like rate the this value trended that, bring they renewal the But sticky see when down because like we that million to we the customer yet. number We has they're that They

we So as avoid while see to more are headcount. are their don't more they customers reducing mostly hiring, buying bots, and agent it's

also happen. and the bots this experience. opportunity expecting customer going to used to going not expecting again, we reducing customers. to be going to time, increasing going that only for increased It's with are only bring revenue used same that is We're the labor to workforce is increasing not At it's costs. capacity be for

to next it We're about and bring again, partner customers talk and demonstrate to week. discuss will all some We going that.

[indiscernible] So Verint our growing we that's opportunity going more center to because to have how discussion and . in is TAM SaaS, our the shifting larger be to industry is to bundled AI much AI, more the shifting future. a

Operator

question Hugh the Cowen. Cunningham Our come of line next from from . will

Unknown Analyst

we very to is From say the that are the Israel. on want and also of members our let's are Verint everyone family minds here. the side, of still say, our That in thoughts you prayers much with

really them you so many reducing not and on terms by just asked, Dan, center end do customers In service focused their are the on focused of that improving sense of cost for their a question customer your reducing competitive was have how headcount? position contact enhancing by

Dan Bodner

for kind Yes. today, Thank would that on to hiring customer labor can't your same reducing you cost. and they the environment customers better note. are, for their their all, in I say the current introduce focused at But cost, experience. keep time, first

a to to to they -- The money. hire agents. lot that they're of They reporting elevate know set people customers our important CX them. to elevate So to very of they it's a hire on need lot spending retain a already and that's CX. strategically But because want are hard

to is actually with they're labor first looking which So increasing stop cost. living,

executive had I increasing better that with generation understand customer from and the thinking revenue customer beyond that level loyalty personally, are time, discussions again, over and of power sentiment.

think to think But labor cost. is now buying personally, -- I the I reduce my report that see reason that I the they're currently is typically if it's in market, So what help me have coming. I

way have they you consumption. you can a if is ROI -- consumption the volume-based center, connect to the you we and a because very agent quick are the have provide bot don't is And also deploy XX,XXX

to we're bot it's own And if So just that what want more in billing look you expand, only agents. really just entitlement. with proven your to at capacity. now changing Verint and start for you've consumption. and that that them XXX it's Cloud, environment, you increase does can

it's look bleeding for the keep and may So start bots them to I for to to it's now I going with do of can't freeing okay, start. in up to I'm need but want relationship terms think more bots. those customers bring increasing very I use easy I coming, at, people I'm But in it's going yet. service building more to not customer the people as volume, to stop hire personally personal to

Unknown Analyst

the isn't one Cloud unbundled. bots this or that's then question side? enter motivation renewal would other the It bundled, and this into strength Verint And I going Why given to in is to the Okay. Why to strong unbundled access QX everyone bundle? What's on the there's Verint only to mix. and AI. What and compelling, for switch keeping particularly expected that am unbundled agreement the to the the missing in quarter still way a is on there side? seem bundled me

Dan Bodner

Yes.

industry So the customers. remember enterprise has our the a at Verint while moved very that under or and of so the look And in cloud. you XX% large you high end mid first, the kind revenue the at of cloud, market, to majority much is have XX% of only if that to of the perspective. of segment Verint customers the market from will report,

when So we large we -- of you them that know did multiple. people, Many in is deal be thousands countries, different they to customers X did with different be center, not have disrupted. the have not our connect it's may may technologies. They it's way want of that

customers cloud. everything X really to transformation the do into we large -- can these replace big and have the just do not desire So

working we legacy solution way to need only the bot is Verint Verint Cloud. the platform a don't Verint designed So but in to bring our you your Cloud

So our or many with on-prem our are the have work bots software. we cloud your in hosting partners that

can can partner Cloud a the a with work Verint bot in with customer So the work cloud. cloud,

not bundled when in at puts and that comes of is to we lot unbundled a look booking And from need did they're gave results have SaaS transformation. because the a time them what's in consume unbundled rip and What working. big in that go Cloud we to us customers. when to booking QX without we AI SaaS it to it through ready a position path replace a the Verint But renew they renew the

pace. as their and get it we from going transition to at we point, do know the in cloud They're some only point Now legacy to we're they And that well. at take the own some that when but move buy also to dependent to Verint at the that bots. it they not cloud, uplift, they're that going on move time, customers

see So things why X the it we designed and renewals. in that many we QX we that's unbundled decoupled will

something these renewals we As the we've customers discussing to last we renewal they're from been them, when those in that add when in for AI process, new X now SaaS. that's -- renew new unbundled Grant capabilities renew going going some know said and to they that months, the typically of -- and they're start an bundled unbundle, they're capabilities,

Operator

line come from Levine Our question will Evercore. next from Peter the of

Peter Levine

Great. Maybe, margin. Grant, I interesting me gross think was your to comment on

You leverage you're talked coming seeing is the the savings. from about you cost guys

through us talk just then thinking about that . how getting that's next maybe for calculated year? as you're plan you and So how

Grant Highlander

I the ROI very was customers because capture price, of the to right, What Peter, the savings AI, our the way Yes. that mentioned, our is more that we high. realize cost that, able we're business, SaaS

we and scale we're see And did next some at we this as we we back we mentioned, the that, the accelerated look a the of SaaS, on growth really next what and year. as path that continue the bookings future. margins year with to see that's the year, driving even Dan and expanded the into on So on, trajectory why this bundled driven

Peter Levine

XX%, coming for meaning closed? derisked us expecting up million $XXX where cycle, are QX, Maybe in the the talk of think, renewal. that of Meaning ever? how guidance XX%, are Your that, number XX% I of dependent are you unbundled on is we that that? said still Or you SaaS in deals those have deals through the that of

Grant Highlander

point of million, this up new. million $XX QX, It of Yes. reasons of we $XXX have? growth where that of that's And why number, here $XX wanted like big whereas share million I the do from of important and What volume renewal kind right? you're from additional growth asking we sequentially, one that have. is a to comes from the that visibility that's comes what million the right, seems and $X

renewals is to less to the tends because renewal advance. business The risk. funding customers on months We discussions that We with X typically already tend have software see know in them the began We deployed. have secured.

it's of this a volume renewals. dynamic different for sales So

just them of the that that's renewals of up, ARR at really of dynamic a that natural we're in little fourth with drives along here the quarter, more SaaS these year, that dynamic, has It's right, but and are revenue it bit have the more what a seeing. across when come the timing looking bit

Peter Levine

I of If just that last We pushed from question. earlier one could a deals squeeze some a us? can maybe it one Is talked you the of for and that about an way quantify follow-up out the the the first got half into what's you QX? pushed it, second you perhaps into And of it Can next QX, into, perhaps pushed call half. like quantify what saw first getting half in then year?

Dan Bodner

Yes.

to our QX is the there the going right? was QX year deal longer. said -- then for our again, when the We we're in came to slip reality of QX and I think the just -- guidance we push just on deal we after adjusted what cycle we did we saw, focus, that lower QX, based

saw we to that QX, we and into apply pretty much where were be. in we we expected QX, what So

think and before, think question better, I we So getting not getting adjusted was market. There -- our I No, but we that's are we're getting things reading don't is expecting $XX they're a range. worse. view. And think ACV we why already. in think QX, to and sequential $XX year-over-year kind the a of my And the increase this million to million got elongated adjusting the is million have worse. I $XX they're cycles QX. increase sale in We're

Peter Levine

any fiscal 'XX next fiscal week? into color we numbers will or guidance And 'XX get for Okay. your

Dan Bodner

right? next Day. the why discuss will we That's next we Investor So X years have week,

years. to for we're of think opportunity that variants think model about you information how the to I going the X a about has how Verint next So and to give lot

say grow first, that, next revenue and booking SaaS this to bundled we I rates year the cost would expect year. improve of the because

in revenue increase drive So increase next bundled year this year. will in that SaaS

discussed we obviously, that. So

early the most but and the is, automation. still right important stage. industry year very this, now and We that's to but rates we growth. the in as drive intensive, course, are And of think the think it's next detail, going at know And of we'll year, is acceleration in the that labor beyond, very stage bots, are growth we of ripe for next our thing buying discuss we're for early I us the and about that customers trends we it's

in because has to innovating our it's innovation So not software driver and they to updates, the that going our unbundled, that moved is We're SaaS, still year are biggest giving growth them into see from that -- bundled next unbundled. Verint you'll customers everything be is that we week on beyond absolutely all legacy. we're next bundled away for we move updates And in have telling SaaS.

if and Verint buy to to from and no be buy want what's Verint unbundled. is But there main in AI that's have the AI, that's Cloud, SaaS in All the to driver. AI they available bundled the the going

of week. So next let's wait kind for

going for for said kind take the of before, revenue the last SaaS, unbundled that today, streams. all these support, streams review X of And we'll -- You'll them see next them mentioned we Grant years. SaaS, years, the as and bundled we're we to each review one X perpetual, we

Peter Levine

guys. SPX you color the for very Thank much

Operator

Instructions]. [Operator

next Our the Samana question come Jefferies. from line from Samad will of

Samad Samana

but the I side. the cloud basis to trying the of versus million the revenue in guess to how majority I agents, actual just those the continue million using is daily X of it you the opportunity said to on that the via I software the agents an cloud users are many X on are I'm like a maybe on-premise maybe today, deployment? think that see cloud, what -- one, -- pushing deployment the just there is accessing the Dan,

if couple curious was just So I follow-ups. . a have of

Dan Bodner

Yes. question. very No, good

So when at we more SaaS -- you the look more that once, that completed we transition. than have -- actually, mentioned

be is. So about -- clear let's that what

revenue, this next million of going rate we as So quarter, perpetual we it in we terms forward. said, are new run quarter, we it a $XX expect license expect

of about are million and and So will we amount annually. going that certain customers of have remain to be a that's on-prem $XXX on-prem, revenue

and soon. for to cloud services of financial are a way, anytime reasons, the the variety are by customers, these they of not Most moving

perpetual that that's of of X customers license. kind buying So are okay? still class in

Everyone support yet still maintenance, support have else support stream about are license, license. therefore, these -- to not buying perpetual a anything $XXX are converted right? on-prem. not new still we buying model, a that still They and our customers have they SaaS million in they're they're business SaaS but is paying but in And

$XXX that's million. So

or partner cloud, our And SaaS in SaaS, in Cloud, that's of choice they and running but unbundled Cloud. Verint why are a then on-prem approximately provider. bundled hosting some you so other Verint their at in there is are it's is at whether can running you half running half in unbundled, in customer the choice, when all half cloud about not Verint say unbundled the partner the it's a roughly, cloud, of look And

in math. cloud. the that in parter that sort Cloud SaaS to model running you but or either you in walk But I and in the in see the than or in are numbers, more half Verint of So are somewhere that exactly our remaining you the than happy these yet help can't XX%, have cloud And customers or see on-prem numbers, but the you through cloud. Did you are we're more not tell you if add that partner subscription some Verint multi-tenant if a numbers, can Cloud you? Verint they of either

Samad Samana

should about change and that. seeing Yes. sales talked cycles with? demand the larger And from your with kind you maybe of partners do end elongated. different aware their to that or them anything that from Verint we the by Appreciate you that's fourth that we I to how for of that WFO Are you provide partners into customers? also had about partners in be that's some just use visibility that -- that work Definitely. customers work that have of a idiosyncratic the much is those kind you And then quarter? something thinking of know

Dan Bodner

to want resell partners our bots. All change. Verint a definitely see We Yes.

no being the this I Verint "Hey, the is they longer WFO. get and mean, can they asked it's it? WFO I but still Cloud. buy all to So selling saw need it our are end I they're Verint customer, legacy -- thing in So product, by which has

or exceptions, have the themselves partners of So almost but are the the I can it's AI. they would to to Verint but Cloud process Verint resell any, now vast on-boarding all our all in always Cloud say, Verint without majority in in so reselling access

new enhanced an as that product see we bots. products, But are the WFO fully created legacy We again additive they're in available We've platform. business, not legacy we're with bots. -- we supporting our all have products,

bots We to that's And the have platform. next offering. partners Verint our chapter and want their differentiate XX obviously, of the in

And So announced can open what they we are back June. Verint CCaaS an offer. platform, we want Open in to leverage because

in allow can our booking ecosystem. We want to process and unbundled so And our that, also free that partners onboarding we're they booking choose basically they access is and the them platform anything bundle of definitely shift to see resell. from we'll in all partner happen going to

Operator

to would And I'm the showing turn further now back questions any the remarks. Matthew closing over this now call for Frankel I at like -- to time. back

Matthew Frankel

Thanks, you We at hope Day. Victor, and Have can -- today. good everyone us you join thank joining our us to on day. Investor next a for

Operator

Thank your conclude you in program. conference. This today's participation does for the

disconnect. You have now great Everyone, a day. may

Verint Systems (VRNT) 6 Dec 232024 Q3 Earnings call transcript