VRNT - Earnings call transcript Q2 2025

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Operator

Good day, and thank you for standing by. Welcome to the Verint Q2 2025 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Matthew Frankel, Investor Relations and Corporate Development Director.

Matthew Frankel

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

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

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

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

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

Dan Bodner

strong AI to Thank report reported by business bookings quarter I'm customers. continued outcomes AI including pleased AI momentum, you, Matt. and of another

SaaS Bundled revenue by approximately year-over-year, in acceleration to bookings AI an driven compared XX% year-over-year. growth increased increased QX QX. over AI New in XX% XX%

expect and bookings growth half AI revenue and in We to AI SaaS the of the drive momentum our bundled continue year. second strong

a outcomes leading significant to customers, We ability our bots. AI our now. is many momentum now AI of is business have our some we strong deliver measurable from AI including brands, Beyond ability business AI-powered reporting differentiator. various outcomes business world's to Today, outcomes AI deliver the believe

for year, $XXX of guidance the our for our divestiture. growth on to we X% QX range. million, our we're came fiscal achieve revenue guidance adjusted year. guidance our to And outlook, Turning full for track at 'XX are the in within maintaining

$X.XX. also are we For EPS, non-GAAP diluted guidance our of maintaining year full

and expansion the outcomes. faster very XX% margin seeking deliver of the center The than contact growth revenue and in large. believe the market year adjusted another tangible labor on cost trillion can industry bot AI are EBITDA full AI-powered brands CX opportunity that expect with EBITDA year. We $X spending about annually is for growing We is business

are We to that that AI have AI increase capacity, and are our workflows and noise large a automate that in its many market can brands seek demonstrate platform significant differentiation. There in is agent differentiated is elevate very report proven this market ecosystems. their our competitive addressing points to CX the and capabilities delivering results within early our existing TAM stages, tangible open in customers. with data we adoption currently pleased vendors

Our AI to within business brands some demonstrate new continue is we based our customer leading outcome on large QX, AI world's In and the of tangible base win well for ability business our logos. now to contracts outcomes differentiation. resonating

vendor. latest As the transforms calls, discussed other center on Verint earnings AI technology prior business Behind is unique platform differentiation any our the AI quickly the contact outcomes tangible better than open into AI behavioral the and with DaVinci platform platform AI in our bots, latest for of core. a at today available leveraging market. data the is X technology DaVinci the Verint design our Verint factory

we customers from from emerged in to stronger embedded AI workflows platform benefit bot the is the Verint bot in bots the factory, very the business train they and day gym in deploy every outcomes. And outcomes continuously on critical quickly data Data building are another now. relevant available significant driving AI has bot, data. bots enabling the data use powerful bots Verint our to same believe is differentiator the and behavioral finally, As brands

and the require disruptive be competitors to to results. demonstrated. customer generally unable Our outcomes are proven before show can strong ecosystem any take long They changes

proven strong some very quickly for and we in into comes customer existing competitive the ecosystems Our business can deliver from the brands AI outcomes the largest advantage of that world.

business bots outcomes. starting open to can consumption that launched deliver. also are these share additional bot to Since we started X increase reminder, very AI typically AI with AI-powered the customers business of time, levels are business purchased year the and bot outcomes purchased outcomes. to consumption a already As have bots that to strong bots I'm with they've ago. that AR XX many pleased our customers platform of a low the They more generate reporting add now validate

We across customer our base. a are adoption tracking

the million we cohort largest ability business with pleased those progress our are our at purchased $X see strong than our we X demonstrate in of least ARR, base I'm have AI half already outcomes. customer more bot. very Looking at customers, generating to least and AI-powered at the making

many on find website. can business AI examples customer-reported our You of outcomes

$X.X $X fraud agent attempts examples. interactions BPO its XX% containing in of Here few A financial are XX capacity leading and created a million a by attrition self-service by a million A A seconds company of $X call top And insurance capacity services on agent in single created XX%. by in avoided company agent month. $XX saved by an million per bank reducing self-service. million cutting average.

in study at from care customer more health a detail. look the Let's case

One of U.S. providers the largest multiple in health deploying has the been care Verint bots.

bots. reduce Verint This AI one in ecosystem. bots the customer the automate quick January by in designed existing wrap-up me a on-prem cloud In their journey bus the you average connected Verint a with cloud XXX starting specific The agents walk to is coal core Let their for was the of of these and to XXXX, seconds. hybrid model. deployment duration customer deployed XX through the portion

validate their AI conversion expand cloud Our led enabled for deploy to specific this our the outcomes. Verint of cloud $XX annually. customer multiple need In the to these board XX a the capacity the a for XXX journey innovation levels months, tangible and reducing enables just the levels bots latest of ROI air outcomes customer strong to dramatically boss, business help and XX,XXX agents first. AI in this customer for July a to duration bot by increases AI without at million agents. To initial deployment architecture seconds consumption increase XXXX, them differentiated delivered outcomes. platform across agents understand you business quickly hybrid few equivalent And call AI XX,XXX deployment agent includes to consumption The they

from year, $XX.X the million year. QX last end year customer this of at ARR of our end last to the million at Over from QX the doubled $X.X this

at awarding a Fortune continue a including announce Our top company company of million awarding a million deal, utility their deal. we customers deals, leading to deal and are Verint QX, brands $XX $X public $X.X the large AI Verint awarding a stages in U.S. journey. XX insurance Verint XX And million different winning a

center their care we open goal customer to initially on purchased additional Now They approximately was capacity many one bots. let's first. with wanted to deploy level just using agents. bot capacity this journey platform look initial over in a bots agent customer business existing of business XXX they X Similar X,XXX they at specific growth X closer take of Verint this deal. which example, of AI-powered and there Verint insurance increase to to as X large contact is AI health started business XX% earlier the agents, expand other us insurance Verint outcomes achieve the chose opportunity a for licenses is cover Their consumption variant overall available They units. these believe over my their boss based unit boats this in time. of Verint This their with

models, AI stronger Verint AI you programs. they to data outcomes closely to domain represent long because cloud to and on examples, well and are expertise AI and the delivered than and by with for customers to disruptive business to to contact contact deliver see leading working companies. ROI customers positioned because important over existing are AI AI center design our AI stronger due AI need ecosystems center trends due AI due tangible leadership outcomes deep CX consumption competition. our world's costs open AI outcomes consumption ability labor the reduce [indiscernible] are higher outcomes and As their now. hybrid these enable faster We and that increase in is and our quickly designed delivered with the customers. at We core, from can elevate based anticipating for time early outcomes Faster important deploy faster platform which Stronger avoiding

the are across and effective than the faster Our more internal IT enterprise, we than not the AI purchase business departments technology see contact including In look use outcomes also development. stronger cost for companies, but center. cases and competition some GenAI only

entered strong bundled the bundle bundled to revenue SaaS We more strong momentum in ability cost-effective AI recap, expect second We to believe AI unique able Overall, our continue that IT are and in deliver solutions. a revenue we with faster a center, now we outcomes growth the year. our half and and and sales bookings is stronger, of SaaS and for AI a sustainable to platform demonstrate business had QX. bookings contact HX pipeline delivers the differentiator. To to

our adjusted revenue growth. maintaining are and We year guidance adjusted X% for XX% the for growth EBITDA

XX% target that, detail. adjusted we growth discussed, previously goal our in and in margin our discuss XX of fiscal XX% it revenue I'll 'XX. With to Rule over our with turn financial consistent more Finally, EBITDA Grant to Grant? results

Grant Highlander

afternoon, everyone. Thanks, Dan. Good

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

momentum. First, results QX I will AI our and strong review our

do Second, remainder and will of of progression discuss the a year. review I midyear the

discuss I will demand how longer for financial term. model our Finally, AI benefit will

results. as bit lower Bundled up revenue timing, adoption. Let strong me due year-over-year. Unbundled growth driven an Non-GAAP XX.X%, gross to not QX points came than margins in our for deal divestiture. to expected XXX market $XXX with sequential guidance. Non-GAAP X% QX does annual came a expectations with non-GAAP SaaS margins year-over-year change revenue revenue at and our AI came million start by basis which in in our with in of strong increased adjusted our overview year-over-year SaaS and

was We $X.XX, margin in ability the business EBITDA believe gross expansion. increase came to in and margins year-over-year up our EPS with to pleased year-over-year. with the up Non-GAAP and margin are of the we Adjusted reflects due revenue our at our X% quarter to outcomes deliver consistent diluted adjusted X% strength our expansion our AI gross customers.

let's AI Now at our closely. look more metrics growth

up revenue calls, past XX% in AI and X investors growth deployed discussed have innovations SaaS we QX. bundled from are to approximately As accelerated shared AI In SaaS of SaaS bundled following our growth. the to bundled XXX% metrics understand year-over-year, in QX, in help our XX%

trends from a discuss our XX% bookings moment. bundled and in detail bookings New will increased I positive ACV SaaS new more deals in year-over-year,

term AI adoption SaaS in a that Another longer-term on report SaaS ago. commitment in term customer to these renewal with that AI was pleased to relates length. confidence longer I metric than about to We is our believe our XX% length growing and lengths, journey platform year their QX, Verint. am reflect contracts

leading key bundled SaaS is our of AI a momentum Additionally, indicator our pipeline.

of with pipeline of for was that is early stage, advanced customers see As our to year we AI year-over-year, up its number the deployment would and stage of QX, growing end bots. like around in demand. I of of by the XX% market note also remainder driven the AI initial the a

bot than one our half from growth already with over low started with level customers Verint Many earlier, consumption, initial opportunity already which of looking than at large their of revenue an have ARR, at customers Verint, AI typically discussed our largest Verint. deployed time. million with greater a least As have represents for more $X Dan journey of

Given half. I we year through expectations year, second bookings is are comprised and the SaaS deals. types in would Bundled of bundled like SaaS trends booking of review X our our the halfway the half first to for of the

from we the include which increased include level growth deals, half expect deployments the Cloud. on-premise to deals, Verint and like-for-like New a new of XX% new Bookings of conversion functionality and the year-over-year, HX in second in deals which similar year. of conversions

year-over-year, majority our growth market of adoption. A more that bundled bookings included XX% expectations strong AI driven AI-powered bots from Bookings by would conversion new AI from the customers HX deals first conversion second. and deals bookings SaaS large bots in decreased than with do deals pleased consistent the and these new QX are adopt We increased with year-over-year. AI-powered of in

AI new Open are is without customers hybrid of innovation to a deployment our adoption of customers our added now to IR our differentiated, amount looking expect deployed applications Cloud having Near term, business highly prerequisite the existing of disrupting expect we platform dashboard therefore, bots. conversions customers they remain AI-powered believe Verint term, access our HX. on we their focused Longer of customers AI As without ecosystems. Verint to and number A small the we and convert on website. explained, get a AI to enabling Dan outcomes for existing in bookings after historical a breakdown to convert to cloud our been have first. will has

the I driven we we second Next, SaaS what unbundled would this bundled of bundled QX, trend in first review and like by QX, and half. QX continue strong we revenue, half to growth year in to expect and the SaaS revenue sequential in AI trends In expect in adoption. the and had

unbundled influenced have timing is revenue heavily we of past, in As discussed each renewals. the by quarter the

the And to around similar QX million may expected of up is in we possible QX to this dynamics renewed our of guidance. revenue that similar revenue amount year. I ship increase like SaaS our million, included renewal QX, QX and move time, in in QX. sequential in was mention expect this in QX $XX large and a large to that would as earlier. however, forward be SaaS for may unbundled contract left it At For to last a we expect as a QX, of $XXX revenue unbundled we saw about

our fiscal guidance to for 'XX. Turning

diluted fiscal bit X% EPS minus non-GAAP fiscal reflecting for adjusted revenue. revenue million, We guidance growth plus are $XXX is our year. X%, for revenue On compared maintaining and more 'XX non-GAAP our outlook basis, than a 'XX a to full the or

The to growth expansion to and XXX least again approximately continued basis increase and growth for We at of EBITDA expect is of revenue year. adjusted year-over-year. this expansion the points margin increase expect margin expected combination year gross XX% to

of For our diluted expect guidance. we EPS, $X.XX midpoint the at revenue

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

of the second increase approximate discuss in the first adjusted in progressing. X% X% increase year, of Let adjusted adjusted an XX% we second revenue growth X% year we adjusted divestiture, In the expect around we half the of half half how me In growth year-over-year. year-over-year. with the the year, also revenue EBITDA for with the see EBITDA delivered an

we by for outlook as Our growth that driven of a momentum renewals SaaS QX. expect our HX reflects revenue in continued growth revenue bundled amount AI driven well by SaaS unbundled as large

similar to due a in and like and For higher margin QX EPS for be expenses timing, QX will gross around QX little $X.XX. we be or diluted modeling in expect QX, X%, purposes, that operating $XXX million in plus coming QX, than will we mention expect revenue, QX. I'd to to lower minus than

SaaS adjusted sequential revenue the revenue reflecting $XX $XXX to which expect around like Overall, around and increase million that relates of recognized progression SaaS have million $XX gross last this bundled is contracts QX. from nonrecurring expected revenue be approximately to that step-up revenue EPS. To $X.XX year. year-over-year of to in year compared in of QX margins, year this throughout QX similar of is we revenue increase increase quarterly QX. is this component existing year. year. And increase the our million renewal Approximately will million better expenses the in from revenue to a the up to year for revenue QX contracts QX, similar reflecting $XX of renewal strong our year. operating QX, revenue, million growth from steady we QX in of last the I Approximately value unbundled range from coming For very $XX is QX help a last projected bridge revenue, expect of to in is of understand the Revenue this would of diluted to

balance to Turning our sheet.

continue a We position. be to in financial good very

well our full program. net flow. cash million announced year. Xx are free we targeting million further share Our regard With remains buyback to QX, previously approximately the by completed $XXX to flow last With to is $XXX strong debt about EBITDA and in in for XX% supported flow, our increase stock cash we a under XX-month cash regard buybacks,

Going back program around to cash of announcing use are half flow a million forward, X to buy we we $XXX buyback new our stock. today, years. And free plan over

is about our talk of achieve us adoption to like target. benefiting expect financial we I'd up, Rule will wrapping model how how help it market AI Before and XX our

their AI a ripe industries First, are has we center contact market, are automation significantly very increased capture as and the TAM. this opportunity. There as few positioned very to well for

its more Second, stages. in our we consumption driving and strong adoption for early bots Verint. revenue as the customers experience to opportunity is accelerating business increase, And outcomes, AI AI expect of

growth and 'XX. With we flows XX momentum expect value Overall, as for customers. the operating market journey operator, target from our and with already that, to AI leverage to and strong of Third, will gross our time, effort. by on market that revenue our as sales with questions. AI education towards expect work please deliver pleased Rule continue impact in to are fourth, fiscal high the innovation to open AI we positive largest sales started AI sales as expect and increased early Many adoption a have the more we have take we markets margin over stage expand the we cash a our line of and driven productivity customers margins our And matures. our increase rate, believe productivity we Verint

Operator

Instructions]. [Operator

from with Our Joshua question comes Needham. first Reilly

Joshua Reilly

renewals? need having try additional on the some the kind be what on to the considering starting that is or just would pushed unbundled driven they Maybe they quarter. just the renewal, of Just be Maybe on just helpful. may customers info and impact these deals them count figure additional right. how that on off Was there here in out competitive maybe seats macro All helpful. it the that's many seat issues would by AI some there information of that need

Dan Bodner

XX% Sure. growth bundled Happy came with where said, -- we we revenue and to were basically address expected exactly them. strong, Grant SaaS as the

bundled with is more pushed. a was SaaS in saw and -- to It's We Grant There in deal unbundled to SaaS we're growing million it's nothing it's linearly guiding that was we AI. AI actually -- QX is as quarter. deals. deal nicely there's quarter-to-quarter. can every bundled no there also but obviously, It's unbundled that may SaaS, in predictable in only SaaS, unbundled the do And So SaaS, that past, come $XX currently was mentioned a no one With there deal. move QX.

are deals from with be from deal there below money in timing. agent $X.X more nothing unbundled and also counts. -- much a with customers. do one AI. million This So It's has came we're in spending deal large And this some very that's These nothing one to expectations, movement large that could was with Verint. very large do to we customer, is

year discussed they're we AI platform As to and that before, we the outcomes are starting to we business And a see strong very some us. reporting get launched ago. customers back

That capacity. our strong then the overall increased the see strong the starting and had promised, count. last purchases. as customer the increase that was But the AI base. And in change end have like reporting at very with we more a we And outcomes, year, including summer validated agent think AI looked outcomes customers they they at business consumption. now initial do we aged more not we business customers in We of

a same. At opportunity same time, fairly have in that So early and of some in stage increased journey it's reducing agents. the already about agent achieving early number we and we are capacity are customers and their the of

the increased, are have reduce also from So it's customers counts. to that agent capacity. capacity they impacting very just choosing that the not of beginning AI the those It's interesting now

retention. agent customer Some choosing are to them dedicate of to improve

actually dedicating to agents increase of And some sales. are them

can service really from contact AI see we an a interesting the center trend. So center to turn site. revenue-generating

propose become bots how during also how identify right to to And we are salespeople in the the the today like coaching bots real time So capacity time call better the products this agent to coaching available. that some and more their upsell to customers. agents deliver

capacity, your see don't but question we're to to in very agent some reporting again, starting the customers see So capacity. we base, strong address increase about that across

Joshua Reilly

it. the ARR, new actually is at Got think I in SaaS because at the strong. actual pretty That's helpful look if quarter net super SaaS AR you the

million. the that, point So if data That here. tells in you're me up I that maybe focused you important And the that with look actually your sequentially, and if customer that's overall nearly couple I just retention million about here actually to $XX.X be seeing customer quarters. of you more it probably think improved SaaS the internally? can on on you're talk was new over seeing And renewals? the $XX Is was at, by quarter last what what ACV and retention look churn at

Dan Bodner

Yes, that's very true.

is booking converts -- strong, then the of booking to which a and and ARR better growth. that's that's started bundle more booking XX% then combination X. than we with XX%, improving, retention. result And booking flat of So SaaS in obviously revenue, the QX, very AI It's reported X%

as into only with but were really you like to So care we look other in center, course, metrics the are can improving ecosystem. company and AI also, future. And turn my we And the but are not that XXX in year, last of affected not the customers the any of that but now just started GenAI all agents, that we and that's promising over existing noise paying customers lot company those AI they started the contact prove health in of this told XX,XXX. obviously, AI have do, with are consumption initial market my with for what outcomes customers attention. There's promise actually just customers a report can actually outcomes the because business business GenAI, strong, by

So of case the stories customers the actually it expanded our we to And customers find you can on studies use getting But started to year website ago, of can year, sell we just bots bots until XXXx. And outcomes waited was we share those had nothing. now other that the the And outcomes, which real by reaction results. customers. consumption. we over variants to bookings. being we're better this attention. you the once can kind reported those their reported website, And That's of see on they continue and course, course, who of for And saw we and and customers, helps increasing of on XX created course, get references now AI retention we publicly. an helps are And so and were and of the just from business tell growth then our a much AI find to TAM that is -- new opportunity. as future a initial results, we they that

Operator

Our next Cowen. Eyal from question Shaul with comes TD

Shaul Eyal

on me or I'm end. getting then quick questions the Two seeing is my whether core investors asking any grant progressing the you're some as change on competitive landscape.

quarter, mix. probably fact that has guidance second timing a slightly been So on understand more the the one reiterated the annual totally hand,

reply your it, in quarter over might that so? prior the just changed anything You course analyst. to or addressed of the I think, But past recent the have

Dan Bodner

new strong. market, deals, a but growing XX% competitive it's Well, bookings on is the very

is approach to really now looking outcomes customers attractive their now and actually to than customer the to you to process, and can we're before business because there, say that our winning in even I cloud. the would the I I more the was and through AI Switzerland your don't they achieve demand if competitive about share. fair our for market. answer changed what's the working So wait it believe telephony to we're move that say our is are want question

we And able start whatever AI AI telephony to their deal They're being important. now. then have with they that later with journey not is will the they lead Switzerland, and on. Verint's infrastructure, are choose And to to with really they can So infrastructure later be disrupt comparable. for ensures going that them

ecosystem. first. rip-and-replace you for cloud deliver And There programs. your designed hybrid now to an think need wait we infrastructure change we to can that So existing no deliver or is no year need AI I AI that's make able There of are this changed. is to because course, X a into

well. million to AI $X So helped we that quickly. their year, -- that still cloud. sickest they that very, before, and million get And they the track, They're more resonates ARR company I change consuming to our where $XX telephony helped are very gave not again, example did increased X for from example, but still more on over

And their compatible going be infrastructure on budget and they that that focused know some cloud, the accelerating can they their to journey. convert at something turn that's point, choose will on internal energy, will Verint the they to be with all their to that and are teams do. rely So AI they whatever they can

great some And to the AI for the to that's tools. also true in the contact and on to a how basically of that companies of see model, outcomes then like working change we model contact embedded a it the looks TAM generic that change. And obviously, is companies real market deliver and for big difference into to there's market GenAI to But hyperscalers, companies one So center the between learn automation GenAI we model see in coming We're more have. real business there's market. GenAI. lot more growing based we GenAI. technology workflow smaller and there's opportunity that to train just then center create because the with want for world the are now but struggling really attracted based companies a a largest deliver is expertise existing that And I a as this with to a that on outcomes. And to take

what can for demonstrate is make It's is competitive do that huge, my is business I once to that this I now also between I think the able this to threat great but outcomes promise Verint So we in and can think that ecosystems, that the we for not it me difficult in existing distinction a deliver. customers differentiation regard. are a

Shaul Eyal

my use some so? your Got it. asking And think, coming you customers slightly the a perspective, of I new let's months follow-on product seen, course seen question, from about that outcomes, past over context the the in haven't X say, on new or AI have cases the business maybe portfolio, Dan, and more you of outcomes

Dan Bodner

to are the than time. my only are some self so today, agents are, customers there co customers in asking was age. a do. pilots real that I service And for bot to agent Yes, I that help talk will cases use want to we going And in improve buy common rather my my

and most differentiated are obviously these the outcomes cases, very all contact But use addition, X in So automate X we center. those in common areas. have around the the workflows we

our report at is because for great big has and for looking their are knowledge reducing at better knowledge And customers have to to we for very the search. We the so companies And a million knowledge AI in And in better month. coaching go lot agents fraud their more agent strong of knowledge right a training and see self-service attrition avoid struggle. of opportunity pushing one looking fraud. don't $X avoided fraud some agents, using just in AI they automated and see been we attempts a of company interested outcomes, X

realize now. with actually Customers more so of Verint the total areas. But we they you year, of agents contact have industry, shared what lot think customers we So of on see we a lot insurance into what help it and XXX centers, to And with of bots. and that [indiscernible] we're different of more need? with that mentioned we our that them to the decide. I company the share that started They X,XXX. and business last XX% X experience and has over We happy got their started depends are experience say, that a come potential, and AI focus the

can to those concluded want this different but see they where things, doing start. they You bots is are

is not they increased just deal. So them, increase ROI onetime And will they volume. laid out the total of that's they XX% the believe the And for them, of prove through AI And It's consumption the as they for a creates that for outcomes which with the go with as we that X TAM and journey but basis Verint. huge growth also outcomes, the we expand. and and validates journey. customers started only only

Operator

Instructions]. [Operator

comes Samana Our next with from Samad question Jefferies.

William Fitzsimmons

that bundled would grew for were has expected of Day. We the year-over-year. this what and at, This trying get but year, a SaaS the SaaS is talked magnitude December different talked Maybe second, year new Investor about power little on breakdown kind AI bots And XXXX adopting Obviously, mix expected is maybe ACV than in bundled going at given targets on Appreciate of quarters of about deals you very customers causing maybe how Billy those prepared color changes new are bit. from the conversion's the in the further, either relative couple the some is differed last and have deals conversion step ACV first of between to how from to And at strong year? of remarks, the revenue this of the ACV mix and XX% either Fitzsimmons conversions. of ago? would that any a grant when Samad. expectations you by have the extent, line doing fell line maybe start you disclosure what your in a

Dan Bodner

happy address correct. you because numbers got the be to Yes, I'd it

Investor actually relative booking, So SaaS deals the ahead from we to expectations. bundle our AI which what of new Day, discussed our is at is the

We we and HX we The expected growth, conversion, projecting in XX%, expected exceeding XX% are around but with flat. as be the are growth will well. booking we it

can expect So have to discussed don't like because the customers didn't AI convert. all growth go we They that first. reasons we

expect convert, So are unbundled year-over-year, will we be in they that SaaS. affecting don't revenue which unbundled expand not actually, in they they and if SaaS stay down flat because but is they

know is slow eye don't to give they and conversion. this down want opportunity. we we get that the to uplift convert opportunity there And when later. they'll what And they AI them to a So Xx want. But they convert, quickly, that's

we stay it There terms this net-net they where in because there. how if does But see convert, be don't in question, guidance, conversion impact year. do down our SaaS will coming it they that's of they we -- So doesn't and later. unbundled something

Samad Samana

And could more the I one, in second term. helpful. this long sneak is general Super it. just if in Got

is the how getting the we're of on through but bot flows your get kind to Just verse the of to about overages? trying total element of base relative impact revenue, as how billing, grows. model that of mechanics of for small that minimum we of today think the the model or in historic relative Just kind pretty obviously, consumption-based the revenue and terms a some kind to do questions it the pricing sense for pricing, floor consumption on

Dan Bodner

is volume important great on a and It's drive obviously, with very, work to And No, it's AI it's because Yes. Verint all that's we with time. not question very based over based. going for economics we way this The metric. large customers. relative a to AI, sit build AI consumption enterprise

pay increase term that a the always to they think of term, Grant pay commits X commit they that's just more they before will cloud. commit, for expensive a and just X there's committed go have by way prefer to increase the X commit So in is can minimum a paper year, years, they commit. them order They minimum whatever. average. going of a versus They that getting sign can great And a customers that on in mentioned X overage And commitment is piece longer to to more actually simple always purchase a certain up by the the giving be commit comfortable when options. because importantly, they longer consumer I get work XX%. will term. But want the them the and exceed it's sign step overage minimum to or us years,

commit, and a When to better higher a they get step to up the obviously, of out pricing. volume they level

plan. commit because the So to commit they them us outcomes actually purchase any term. order the to we not the we overage. validate business through not overage are is expected, consumption a and through for expect they that is customers during to opt AI giving they Once can opting just And important time

term extend term, need they model the a results deploy It It's doesn't just increase take can to they they all in customers prenegotiated. have require cloud. they can small, but extra obviously, to the so can the word really they within do as licenses for start So easily have we they easy just to Chris, pricing within don't term. designed quit to validate commit. And it first, and X those And things: this it. for make don't to we the to the so a same negotiation.

bots them easy doses pace, -- necessarily And they're for easy volume their customers us. are what the starting by increasing at and We've multiple all basically bots same own the the that's that's last at and it's targets So then time. and seen year. seen we've increasing initial over way, not for increasing

to one XXX So health from bot one bot for they other XX,XXX, this but at bots different increased levels. were consumption company, care

of each thing for and bots doing because flexibility bot one each value. total a there's So creating is the

the one make to For that are entire automate thing they that uniform. across don't have decisions and they platform

And on model pace. AI So the supported platform they open purposes, design can Does this different very, try at flexible It's for pricing really platform. different question? very based the and model. a that answer modular is obviously, designed the and

Samad Samana

helpful forward Verint No, weeks. few Engage looking That appreciate helpful. it, a Dan. Very to and was in no.

Operator

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

Matthew Frankel

Thanks, Josh, you, and joining today. thank us for everyone,

any you everyone. free talk out. to good And night, Have you if feel we'll course, to soon. have please questions, Of reach a

Operator

the for concludes your you This you. conference. Thank Thank participation.

You may now disconnect.

Verint Systems (VRNT) 4 Sep 242025 Q2 Earnings call transcript