VRNT - Earnings call transcript Q4 2024

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

Operator

Good day, and thank you for standing by. And welcome to the Verint Systems Inc. Q4 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

to Frankel, conference Development Investor like speaker to Director. now Matthew today, Relations would hand over the your I and Corporate Please go ahead.

Matthew Frankel

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

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

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

laws. could current management's future of I'd forward-looking forward-looking the also Private Reform Act expectations call to this performance. may materially fact like guarantees or contain other federal of by forward-looking differ XXXX Actual Securities that in Litigation and from not the and securities attention based provisions statements the the expressed certain statements matters implied of of in are draw on to discussed results within statements. These your are these meaning those

The place except required are forward-looking law, as of obligation the forward-looking them. no revise update statements. undue to as reliance to or on cautioned by and call, not statements Investors are this made as date these

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

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

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

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

Dan Bodner

Thank vendor you, platform that year to Verint and AI Behind other year, business deliver market Throughout a today we the any raising non-GAAP finish in driven ahead Verint by with is outcomes built EPS in Matt. pleased Verint's last leading I'm way. the such last coming to report CX our market we tangible enables to year is QX outlook which for revenue for demand our diluted increase better open current of market. than differentiation, year, reflect is and ex-automation introduced AI-powered strong expectations. we are momentum, the The our automation. AI to looking and the momentum the

and Verint Today, revenue platform by Investor ahead Day, strong will margin diluted quarter the X-year at our fiscal up and team At overachievement came discussed and QX year-over-year by we a driven Non-GAAP $X.XX, XX% guidance, drive bots will strong SaaS targets. million And open growth. how start $X.XX couple differentiation. our XX%. of EPS I above driven trends. of outlook I growth with QX, revenue finally, our AI-powered guidance, I XX% platform Then open 'XX discuss will SaaS in grew review year-over-year, our our dollars revenue expansion. In bundled fourth of of our our

increased months over pleased SaaS ACV to SaaS metric. in bookings XX% XX and AI I'm year-over-year. using demand bundled for booking tracking discussed year-over-year new XX% increased bundled QX, the We also how that we SaaS report are the bundled pipeline

We only for AI not cash expect free but flow acceleration. bundled demand growth, SaaS drive also to

number for engagement XX% current cash the next flow X Today, challenged hiring industry customer many that faster over customer years more flow and been a than revenue. will with cash to has grow and free a years, the longer free sustainable interactions year, of is as expenses The labor in workers solution. increasing growing and realize over brands higher growth expectations. drive in we SaaS, growth no expect bundled For AI continues

at and addressable automation CX for brands market the economic with increases significant provides Verint. the time, benefits same

come the due loyalty. lower cost customer productivity the increased brands, For benefit the economic and from to higher workforce

amount as over a time Verint, platform. large saving the AI the market addressable shift by to the labor purchasing of portion that For increases will brands

emerging world Today, AI X business factors. outcomes. due millions CX We contact the involved of across can and in office the and is of CX that we ripe centers, tens to estimate customer automation category lead Verint for deliver to the engagement there back uniquely industry automation around platforms positioned people is branches are believe

large many AI-powered to our and geographies, consists across First, and add Verint customer currently of agents industries million platform the X base which bots. looking using

market. data in the than platform our other third, outcomes is designed Second, business open have platform And we is any the the deliver better to bots. customer train vendor in critical AI to our

and XX proprietary business It just the outcomes customer clean enterprise. AI of AI requires the and help deliver models. than team relevant workflows. Gen tangible and Verint the of AI-powered AI business latest ingredients, commercial bots AI requires delivering across outcomes open brands our business platform data technology, The Successfully combination more much

what AI Verint's bots. the measurable of us deliver open AI at commercial it look from DaVinci outcomes. with and acts differentiated our all business open Verint Let's allows the starts the a source latest It which as to to proprietary turn and into bots Verint's DaVinci, platform the factory combine for highly ability AI the Verint platform. makes to core in technology its

hub. emerge they available data training continuously platform Verint data, on behavioral the the from As factory, are bots real-time in

roles. the day, is specific innovating our but AI pace bots workflows team may analysts World augments now. fast business a Each of ROI. open also a of AI-powered not a to Verint's customers from team and growing. other The large leverages at platform is enabling every delivers AI or the to and Finally, outcomes customers and bot benefit Verint use the just supervisor, greater drive purchase outcome business one bot agents, the Verint bots brands

AI, the of The change of Gen business the bot to boards agents AI flex models, example automation. the Some bots using that of workforce problem customer is we CX bots, models dynamically last Verint this Verint their proprietary schedules. time and use where are announced designed which data An use inability and week. for specifically is workflows bots proprietary solves other

often, is to suitable request scheduling agents supervisors with AI get process Today, Agents too provide with In limited to will this solve and find the can other to words, of or TimeFlex shift their replacement. real denied agents Bot make balance business resources expect. because child if work-life soccer delivers modify out just be this needed. the additional no the unlimited manual time changes problem. need doctor outcome the increasingly The to to the in they a schedule of a to watch supervisory game, very schedule to take

by supervisors automating The the augments change existing their of bot requests. schedule approval

Bots employee Like other customer reduced Verint's Bots experience. using operating can the annual millions employee Verint bots, TimeFlex existing higher elevating example, costs a Verint ecosystems, the deployed customer attrition, employee be TimeFlex savings. into reported and and and engagement of For quickly customer reducing in dollars

I Instacart UPS. new such We logos including for customers. had highly by QX Let and our had XX-month XX% of over quarter innovation. Goldman pipeline now We wins. for HSBC, continue Christian discussed new earlier, our me we we to bundled the driven grew orders Dior our customers the Sachs, and the with our across existing year-over-year, results world's in some have XX reflecting TCV more XXX and logos AT&T, and And each, from QX, SaaS leading ROI platform in $X SanCor. to company, demand differentiated AI million turn over In quick significant quarter, brands, including as to approximately wins deliver than the as open

on company. like AI customer large premises and announced on came $XX from from approach hybrid enabled a to QX was open platform, term that one the deploy Verint customer January, they existing large an forward Verint's time, would the In TCV what Cloud. million order. now. cloud add to same had the keep This at leap Verint a innovation double-click X-year so looking innovation contract to a they care in AI could I health order with a we leading with

me share in in bots be bundled of of the some Verint than Let this the XX% more hosted revenue order. XX SaaS will including Cloud. additional Verint details

platform the of investments. SaaS. unbundled the language of the own the models will future-proof enables the openness their platform leverage revenue in The customer their other to and AI XX% into Verint The large to order import be

unbundled at order a to solutions Also, and the approach this outcomes hybrid order bundled term. anytime great pace, enables X-digit the AI customer cloud migrate deliver their SaaS of their business believe example SaaS now. the open is platform We during X-year our own to

with finish AI going forward, driving revenue license current and to a transition 'XX acceleration. overall the SaaS strong the growing tailwinds are raising to headwinds are And are behind the SaaS We perpetual bundled us. we from the now believe We pleased fiscal year. the provide to demand for outlook expect growth growth

demand increasing a AI, is of our CX beyond with for for 'XX. open automation create Rule a our category Looking company leader targets platform, coupled map Verint in fiscal a we believe this differentiated and to achieve road year, XX

over And the more now Grant? financials I turn call to in Grant discuss like would to to detail. the

Grant Highlander

Good afternoon, Dan. everyone. Thanks,

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

as The a Let business overview during as in by results. $XXX QX with new approximately an QX year-over-year our driven well XX% from to the XX% our couple was increase SaaS a guidance. our discussed a of very million, Revenue unbundled conference increase renewals that increased call. large revenue million me of ahead combination SaaS start we of of dollars strong

XX.X%, strong Non-GAAP gross margins up came year-over-year. points XXX at basis in

customers. margins drove gross ahead innovation strong EPS overachievement of deliver outcomes AI $X.XX, the and we The and has We non-GAAP to pleased which margin, increase expanded of business believe to X ability years strength gross We our our with of the since are margins the reflects spin our gross steadily combination $X.XX our business our security ago. diluted revenue our expectations. of of

we report in During how Investor a am our very growth SaaS offerings, in driver bookings end SaaS I'm bundled bundled increased pipeline QX, be bundled main SaaS by new Day, forward. XX-month more and our that our fast for I we pleased expect discussed to pace innovating increased are going report XX% driven also our pleased AI that to SaaS year-over-year. to innovation. we at of our as than year-over-year, QX, of demand bundled that the ACV XX%

indicator, expected acceleration free Our growth is discuss flow cash will to leading SaaS a ACV flow the also acceleration I SaaS year and outlook. we cash new pipeline this accelerate later, free expect our of bookings bundled bundled and to drive and is bookings

we related road highlights investments Before becoming support like QX to company. a discuss I turning of to XX the for making Rule our AI guidance, would map are to to

continued First, and with year the X,XXX R&D in investment ending our in cloud operations. AI we engineers

we to team divesting catalog to third, managed services our manual we additional success expanding resources Second, And realization with our services drive offering. aligned our offerings and AI value our customer AI expanded service offerings, a adoption.

service on our of our you breakdown our managed million XX, on the press fiscal can year. alignment by last our bot. Regarding QX, and divest the January the replaced revenue being decided The AI, quarterly to To services offering, assist of which to website. $XX find transaction day release last modeling, year, closed offering in the we generated an is AI-powered in manual you in and quality your

revenue Turning faster growth momentum we to We drivers the year There accelerate for our experienced will X revenue continue this primary last our outlook. year. and expect our growth. believe to are AI we

to ripe bundled AI ACV and for accelerate our engagement customer SaaS for adoption growth driving QX market XX% we is strong in we is the automation. bundled XX% to the SaaS delivered solutions, new expect demand this year. from bookings First,

prior our headwinds Second, transition we in and perpetual to to have 'XX, completed from eliminating transition. perpetual be fiscal this flat revenue expect SaaS

approximately is adjusted just as to discussed. divestiture 'XX million, outlook X% the revenue 'XX Our fiscal $XXX fiscal for reflecting growth we compared for

million, a overall expect 'XX. minus guidance approximately fiscal we for X%. for again, or revenue, On our $XXX to non-GAAP basis, Turning plus

expansion of approximately We we operating our year-over-year. increase and had expansion basis to EPS, expect we margin midpoint operating revenue at year. guidance. gross diluted to strong continued approximately growth X% is last And up following XXX revenue drive $X.XX points margin the expect expected The of combination income for

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

specifically, quarter the and we each of we bundled year also fluctuate SaaS me expect grow revenue of SaaS similar see X year discuss how divestiture, unbundled Let throughout to the last revenue renewals. to More revenue for in the to single-digit double-digit Similar we QX, year year, by and to again, year. last steadily driven the growth expect first quarters the the growth of level the progressing. adjusted timing in low revenue

we QX up million, At last million revenue expect an $XXX the from a $XXX be of expect to $X.XX. of we in $XXX the revenue year. midpoint QX, range range, For EPS million diluted to of in adjusted

flow. free equipment is our am this accelerating. SaaS property software GAAP CapEx, journey, and purchases our flow in and pleased of cash flow cash as cash capitalized less define to which our free development I that At report to operations free includes We costs. Turning from our cash growth point

'XX, to a $XXX free increase cash million. targeting flow are XX% to in Looking fiscal than we approximately greater

sheet. balance our to Turning

We continue position. to be financial in a very good

supported cash flow. our net under further Our last by debt Xx well EBITDA is remains strong XX-month and

million Over years, share we reduced pace few X the have shares. count at repurchased by and steadily increasing our last have shares an

further to our free Over share which X generate and buybacks, flow years, of expect reduce we cash of about the count. use million will next be $XXX largest share expect to cash

a summary, overachieved QX are pleased have current in revenue in to guidance and and raise position In diluted to we EPS be the non-GAAP for year. to

become These discussed in please we for that, economic open deliver map bots company Verint along benefits today, the and acceleration As of revenue Verint's to a our years benefits road and X both economic drive to line operator, questions. AI-powered the Rule margin brands. expansion with With XX way.

Operator

question Eyal And Instructions] [Operator first Shaul our comes from from TD Cowen.

Shaul Eyal

follow-up and think year revenue it's ask guidance. successful I if to has congrats. serves recent any competitive while since a raised and a Dan, the so And me wrong, recollect seems Correct light completing drive on continue environment? me Congrats been as be is to my of guidance what wanted been you've changing raising driving the to demand well, the what I'm momentum trends? especially and I your what again, if likely question, within I landscape, also healthy AI in changes and

Dan Bodner

Sure. completed Thank transition. you, Eyal. We the

you give AI, So one I'll but more word. answer momentum one now our in is what's an is is than word driving that

continued QX QX the had is automation. by believe market we momentum in we the CX in the in and strong that driven demand for So

was announced year, -- open that Now the now in see platform we we engaged the last that summer. it

is with we And see is very across It renewals. and new well customers. also expansions success resonating logos, now customer the

in as move $XX more primarily adding bots customers had we health some Cloud QX, in was the driving million into more resulted XXX projects starting big large and AI were XX Verint that are expansion in by differentiation. care and we they and So We're the provider a driven logos than discussed than our new approximately. that to of AI,

growth SaaS strong what's driving see in revenue renewal QX. and in also activity QX, really had we a that's very XX% the that we And

you is look now. AI outcomes. kind because our And drive reason outcomes deliver into any And vendor our competitor, is we question we better is other to in automation what differentiation than CX we better market. behind it do and platform demand that as believe it the also your the do can the designed of So AI about we that business is business

to So the we year. leading good in in we indicators it saw current some expect continue and QX, really

mentioned XX%. XX% bookings the drives AI we SaaS now ACV -- are So growth. And of which basically way where drive QX, our at driven at we'll have what has XX% drive next XX%, been booking for we based booking, year, we believe do months for growing XX and and the And the going in the AI bundled we QX, expect -- in on SaaS we is it bundled rest the AI. that that pipeline up by -- growth SaaS at growth is over the

your to is answer differentiation, way best it think examples. So I to X the do

if give vendors this me few, customer a million have large order, other And this huge let customers, thousands same "Hey, take move employees. tens risky that with and market would forward, these of you to " them this told all order realized first. disruption, to And entire several your They a start the customer cloud basically want infrastructure our the of $XX in move are you it's you and to So I'll project. have the and having story. years

are them, business now, will really Verint something deploy can avoiding investing projects. very they have deploying they long, And bots are risky AI outcomes and XX they and rip the now. result in more bots. AI, told They're than that is and And replace now this disruptive that you XX they

that So sense. we differentiated in are very

customer to but we they pace. they can their they have their it application at now it cloud, telephony will will do own aware, that on move other the premises, The and move

everything platform, it. so cloud originally they They So And was AI moving the Verint working. several anything one contact customers, the outcomes workforce. AI But another market. in can have what's innovation with at is because see pretty AI have is the our hybrid do people business to from many don't idea and EMEA. the innovation open we Verint, to large love for with but thousand other it's like their bit after and cloud. to center about very cloud, is -- RFP was urgency connected This much hybrid little look now, to contract a so outcomes and several the forward business invited AI example, they now. And is Verint the cloud, They now, working our the but they a new from a really thousands they're entire this smaller, for in of in logo canceled fell with basically support they RFP Verint. an learn and the beginning in awarded ability RSP issued this vendors to approach the end Again, the they

-- I'll third give you customer, process Australia. X,XXX has maybe one And people competitive to from the a this against This X,XXX about the QX competitors, suspects. win close other example And people. usual again, one

again, customer was a So their about this customers. part service is personal interesting smaller, of little to to their that but what's priority provide business customer

cost have not their believe they many they but employees. to to bots than did people that in phones want really not because bots, more really answering the know offshoring want business to too and they definitely of things So cost part XXX% also people. them was which offshore They model. terms of automate them this should talk They did than their employees, more Australian

costs. automation it employees, pay to Australian reduce they realize it those need So they more them. And was They to looking do urgent for to for have were now. they but CX for

became this competitive it in process. the key requirements So

was the the I in face-to-face. it didn't were they talking chose because outcome that that bots met me Verint. Australia I to the they about And interesting And they so purchase. customer QX, was in was

right they what that but one, quite next were purchased before on the and do outcome can is and few, and the why through excited What kind their portfolio more deploying even for a business is bots should we that more about so has so they already this deliver? of bot one so what discussed on. each in of business Verint consumption bots and level this the their large went So priority, they of platform is

another Verint outcomes when on think really example customers business differentiated. I AI So focusing is very now,

Operator

question next Evercore Peter Our comes from ISI. Levine from

Peter Levine

these the Grant, or help us understand Dan Maybe of monetization bots. maybe

of have charging? give per I bots. some from XX-plus uplift the bots? usage? through you ACV think it what of seat? to can Is it us And Is adoption us you're you if these Walk like kind

Dan Bodner

Yes.

start, deployed. that miss. So free it's anything I where how very feel I'll AI And add concept is Grant, But especially to all about typical business being to outcomes. the is AI

the We pricing are is that customer the to of the bot aligning outcomes expecting. the

ROI can see that they measure they So increase can ROI results they can the on measure. usage actually and based they their the the

entirely the our of bots in with we customers all got can many QX SaaS ACV the ACV, that AI about that logos, logos new say AI So I bundled have from SaaS and that and new was bots. almost

to resonating with deal, consumption they customers win is we that you a don't going about definitely the any our deploy your cases, $XX,XXX new bother that dictating customer initial right to the So had to our those because begin it's business this for logos. Verint, with also not to but to well applying bots and customers to can for are volume how expand We're In small do with start level. with. also we're model you but not to It's consumption is trying all want minimum some we projects. what

it of to really your doing. the depends do how the is question, So on what's bots, for unit bots measure we the what --

to So that discussed in it's able I the engagement. Employees biggest not is problem schedules. employee TimeFlex the the change the case of right, Bot are before,

do some relations have employees see don't approval. approval don't and change they go for so sometimes is they urgent see up. because they attrition. show things difficult with up their but They just asked -- schedule, So that denied, it life, this show in customers personal. to can the The something Customer

measurement. this in kind So avoiding there's a loss measure of lot one that's can -- they of of attrition, so so issues attrition

to how measure that are can trying customers cost. they in more they that, these supervisors do can do to and how measure schedule many and try supervisors if really to changes real there bit also who flexible is a The practical, are to all this want hire time, not avoid hire they but thing other they

that decide, going Bot, employees, they to it's TimeFlex I give X,XXX they ROI. just the to And can say like, Verint have, employees, the if I'm and they in compare I'm to And increase will to if many say, measure weren't, through as TimeFlex so that the they what XXX if just let's grow as as Cloud employees entitlement and I I the I need. going

But everybody own has its business outcome.

of deliver business the sometimes trying course, together. we bots several to problem Of solve, a because team bots that customer working requires

way will -- the it's measure So we on platform ROI. the obviously importantly, But basis, is granular that customer the bigger. can be very design the a there more

AI buzzword. So customers, big now is our to very a is message differentiated. which And

buying not AI technology. from Verint You're

You are measure and to buying the from Verint AI you ROI. business be outcome, able should

Peter Levine

look the you're But it, from number? jumped on about last I question, in was year discussed bookings mid-single the, to bookings growth the at million it. talked you the growth uptick the year. Sorry, XX% if $XX revenue headwind. growth, think, ACV growth a there your full you what's between, Then seeing throughout disconnect late, digits I call Obviously, guide.

Dan Bodner

Yes.

at because in declines the booking SaaS bundled we AI and the SaaS only at the But discussed look is what customers in that last growth. Investor well, because available year we what unbundled to bundled So SaaS. AI SaaS, because to way the look into best is are shifting is our had of AI momentum bundled is Day

we're XX% result to the SaaS basically bundles booking So growth in guiding QX XX%. is and

which XX% we from we include expect in full do But expect expect the not So AI, SaaS, does QX, go year. in we and XX% not QX for growth. XX% in unbundled we

and it of the There expected part a there. all grow. before, can AI have to so customers of no SaaS AI our that booking of on it's platform. SaaS booking, not is involved booking, unbundled our small they bundle top is So unbundled But working explained in can as as SaaS unbundled one about but it, SaaS, and add became XX% I renew solutions it's our hybrid

in don't going migration order we to they drive in that to SaaS is So but do bundled SaaS, AI bundled have to expansions. any expand expect

Peter Levine

Okay.

So bookings bundled a percentage test said? how as is XX%, you much, of

Dan Bodner

of Rule based that's SaaS AI XX%, more the company, the growth and pipeline, Day bots bundled yes. it's on than our at actually rates. SaaS best explained about Investor is journey also growth, and the bundled we where in that of to the It's is [indiscernible] translated And the growth production that metric SaaS growth. bundled and attachment into XX All measure is to

SaaS in success success that bundled of will demonstrate AI the also that is booking toward metric So target and Rule have. we XX that

Operator

our next Needham. Reilly question from from And Joshua comes

Joshua Reilly

year bots the landscape a for in the workforce more Nice the little at that and doing if make are some complex when is job than right. of anything, fiscal within historically solution different market? All competitive finishing out you dominated force direct the bots What, management these sales to enterprise here. AI them core you've the successful selling the

Dan Bodner

topic. Yes. That's interesting very

year now the platform with bots, XX had we we launched have the last So and mid the time, we XX. bots at

very a innovate innovating bots pace. increasing, bots customer an because in more open bots Number are I expect we'll this platform. is and throughout with fast we having continue and to the and more of at So that platform is many year differentiating

is, time any the did given so the at platform can approach of any the in a open benefits time. we this so buy open one direct compelling they that force last choose can with expand given at what they year we But the any can for can on. on first, modular -- is of flexibility and being explain sales them them you enabled and bots most bots, so and Customers

we selling always good is technology have sales the to from And is But force pretty been not enterprise applications, did an infrastructure. discussions sales because business other we force that they outcomes. thing the shifted

business at solving issues very and understanding they're problems. good So

Gen So I'll investment a about outcomes big platform. in made customer example business their an give engaged again, AI just but now, we AI wanted IT a you that with, they

basically kind were AI interested of in IT other to the any AI. So they standardize not and wanted really very in company,

They just made big investment. a

center to with can they So problems did importantly, open develop, into we explained models open in that to really LLMs LLM. platform you totally and then the large proprietary why And have if we will as to customer the for users, you realized are be IT if doing explain approach business Verint but what our contact that have them take open, more commercial your they LLMs we when import DaVinci some Verint in really will now, have engaged the provided LLMs, explain because their well again, any as is, business develop language business IT platform outcomes, solve [indiscernible] source that, the hey, you platform. that can don't because

it data, to LLMs leveraged with so at we with fresh and can discussion all is it's technology discussion. whose by a the workflows, the win, right? no and better, it all because our disruption Verint them embedding XX/X Verint, And that train providing they so from away was and We mutualized developed was this agents provided about whatever can being their fingertips. a let's is our be combining really their This compare ROI just now into IP LLM data AI thrilled went their

they the So saving that in platform and now. all value were definitely we're bring providing time these the them we expecting things that

issues can experience. issues could There's that for of now. the prioritize need and be capacity they box we'll employee at that have, I something agents, not solve find experience, think you how supervisors, focusing each But lot better. for really customer really increasing it is different but capacity the a So what priorities these that are the companies elevating could the AI this do increasing those company look a elevating is be do whose business and Salesforce issues on

Joshua Reilly

I That's Recurring it. think we gross than modeled on margin give we was margin. and And there what's helpful. what we improvement nonrecurring XXX the gross mentioned this recurring And on you do year. margin? mix the basis you in between about gross just Got margin -- in higher point how think the about do think the How the the that some more then Maybe color gross driving stronger margin? can us quarter.

Dan Bodner

for you. that's Grant,

Grant Highlander

Yes.

renewals. the And that on of the the back obviously recurring volume margin, fourth was gross the of So SaaS, unbundled in the quarter, strong. specifically, the

So again that have the revenue your fourth strong of for models a obviously, this, once I the didn't fiscal you -- combination have that the SaaS bundled 'XX. clear. a in forward, to it's obviously coming and different growing it gross going we fourth expansion that steady overall. similar contracts strong drove the It's set weighted make will of the expansion are once have, mentioned But providing this up of will again and different maybe that a And throughout volume that the margin again the quarter. right, in once and the quarter again be sequentially large quarters should

within see it SaaS. expansion kind driving going the this we the operational 'XX revenue the and for some will is, is drive seeing year. looking again, given but that think expecting that basis points once you'll operational are we're again, year-to-year, revenue So that driving XXX all and will expansion driving once the of the I bundled what's in SaaS, bookings bundled 'XX be, similar, growth it And improvements over be help of to the again, that, in or once the

Joshua Reilly

much that as into that. all... quick Is then a How of that Or it. factored the Got XXX Services follow-up basis on point that And well? business? Managed just improvement did

Grant Highlander

it's a is SaaS bundled but operational -- portion good driving in, improvement factored is of obviously the that. of It

Operator

comes And question our next Timothy Horan. from

Timothy Horan

that of can Secondly, are happen you in revenue couple is? or mean like It a and maybe out Can XX the there how of think bookings in growth you bundled guidance like XX% that sounds see you lot so? better. SaaS years. for more I what give us have months a of going a I sense is big percentage a

third, then of how customers -- total? labor you from or other on And when much them. these saving you're bots chat Do expenses in in sense a you have $X,XXX spend

Dan Bodner

Yes.

give Let and me the percentage later. Grant you start can SaaS

they them I the can drive buy So just but outcomes. to first, right? need not ROI, ability give the best the it's solution AI, I that they're customers that bot for looking when think business to are AI, it's So best looking for

margin result I and really that steady, of it think innovation. the is it's have -- expansion we now the gross

ROI innovation get to for the not pricing, from are we labor delivering strong ROI pressuring between the so what your really So when benefits the customers, of in they customer savings bundled of kind sharing we're you're what SaaS. get from

much ROI. Now how

So different Day some savings. that examples in I different gave the Investor create bots

containment We successful to reduce replaced is measure versus calls, where then of terms not cost basis in back. is what trying the This This And calls of the customer bot ratio to we on are full the with the $X.XX, a a just that cost this so answer that deflection do. $X.XX containment. [ ] return. low. bots can the really So just person is to one gave talk interaction from a a never and coal bot X to customers XX where that's of to

day can ratio. But are change. but today this but forward just So once if of them. meaning, have IVAs But customer customers that. can't about also schedule that X ratio many to day, important. to bot TimeFlex on that again, employees depends change how not the companies very quality containment, Bot, have on of do the today, flexibility, is XX fire you lower of investing not to X much some want is a self-service XX to how shift bots the the want They lot their it the than When in and a self-service, they see successful There's to we they they basis, deflection. adhering the look just every ROI, customers talk at successful generating that employee

they else. are for X they later changing day. and reporting coffee schedule XX have break. in their customer TimeFlex take of minutes times want employees the somewhere schedule we a take themselves a And break. schedule coffee XX They With that minutes They Bots,

the again, business ROI do so pretty and their helping be So their generate ROI can models But we big. customized, customers to internal is going always little to bit they it's own justification. a are

the shift huge, market Definitely X automation. We're just is why possible wasn't exciting. because possible. let's ROI the cloud It from shifted no, ago. talking so about increase has This to AI a is AI and is the not now. but I makes years ago, need to the completely year to This is just telephony it CX move possible because it is my

whole to platform this. the We do architected

AI and the core. it's things making all business And actually the data So these open ROI... with And these are DaVinci outcomes possible now.

Matthew Frankel

lost like it Justin, we sounds Dan.

think, I please can this. you Grant, finish

Grant Highlander

Yes.

ahead Let and second bundled part address me go SaaS. the

of SaaS exactly right, growth XX% Day, what laid then mid-single-digit you're then at out we bundled right. the revenue the time. accelerating in that's the and the acceleration and the So in I was modestly Investor which highlighted, bookings, is XX% driving 'XX. on of there growth SaaS over bundled the growth, drives getting back And

the to modeled 'XX. that of $XXX in on roughly question in SaaS going managed by the up expect be $XXX million had and X points again, of It of that and million, you for right, And back to XX% little bundled increase adjust again, and we perspective, SaaS just this ballpark. revenue, our to driving that continue about I'll revenue line. XX%, revenue XX% have XX% 'XX our excluding bundled of as it is overall [indiscernible], the continue pace divestiture. towards And a to services was fiscal we the for overall that And make for grow it we of will around answer the it fiscal XX% of at million growth look would revenue, on what $XXX Just the again, divestiture. made over the up trajectory, XX%

don't AI of of of we we over the unbundled magnitude see. without have So migrate well. get converged we time still as that will that's or licenses. the migration, mentioned, They can and that come give that the unbundled as SaaS to Dan We'll disruption term kind customers all expect flexibility. have They SaaS, any

hopefully, So question. answers that the

Operator

And I back for Frankel over to call Matthew closing turn now remarks. to like would the

Matthew Frankel

Thank today. for thank Great. and you, you, everyone, Justin, joining us

again feel a free good to to have, forward reach to night. any out course, we Of and you look you speaking with Have questions soon.

Operator

Thanks This concludes participating. today's conference call. for

disconnect. now may You

Verint Systems (VRNT) 27 Mar 242024 Q4 Earnings call transcript