VRNT - Earnings call transcript Q3 2025

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Operator

Good day, and thank you for standing by. Welcome to the Verint Systems Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Also be advised that today's conference is being recorded. I would now like to turn the conference over to Matthew Frankel, CFA, Investor Relations and Corporate Development Director. Please go ahead.

Matthew Frankel

Thank you, operator. you our thank call and afternoon, for conference joining today. Good CEO; with Chief Verint's Dan 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

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

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

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

Dan Bodner

share business by results. our Matt. with start and I outcomes. AI we review you, innovation ahead in revenue driven to customer our Thank a continue wins diluted AI QX, of from our Today, will AI some of discuss expectations In third came momentum. reported EPS I strong non-GAAP benefit quarter will key and and Then

of our X% review representing $XX our January million Revenue for Investor will growth adjusted divestiture. ahead million, approximately the XX. In in agenda I Finally, for QX, $XXX guidance, at came on year-over-year last around Day year's

QX. we previously coming revenue unbundled coming expected in revenue was a by driven Our overachievement in SaaS that renewal

the margin continued and shift momentum in QX across we've guidance EPS bundled driven are revenue from the expanded gross strong the AI of We deals Unbundled SaaS the or X% adjusted maintained an QX QX revenue unique of year-over-year, The and deals. non-GAAP ongoing AI hybrid growth. Revenue expansion by large overachievement mix our accounting driven reflecting by cloud model. standard. Gross XXX with progress driven innovation acceleration win and year-to-date, contracts, full QX, QX, of our unbundled year guidance. In both year-over-year, revenue. our revenue increased $X.XX approximately made margin by and drove momentum. nature pleased towards Bundle growth timing SaaS year-over-year, $X.XX, the to by increased SaaS we driven also XX% and diluted recurring we ahead and our to was revenue

XX,XXX $X cloud renewal orders company in for Some X,XXX in across the services million which single AI deal, pilot box contact capacity health is a a of and increase quickly elevate long bot expecting care expansion in customer center an hybrid a for before conducted an hybrid awarding applications, is coaching X solutions bot of provide of across converting will taking to by of good and without insurance to real-time cloud. bots that and X,XXX augment existing across platform for of X agents its million a the a expansion today. expansion to very a $XX experience. $X example model with wins and The for adding company customer agents customer included the various order orders advantage their innovations including agent nearly financial renewal multiple agents And million cloud for the an large company for agents. very

prerequisite a with long This to well had partners to enables was completely cloud in on-prem designed now on-prem AI-powered solutions customers, so to with hybrid existing we tangible supports with to in can as of As respect bots, with innovation integration projects. With of forward and outcomes. base them hybrid first expensive of platform forward infrastructure business QX, which integrations. our a bots strong a a partners maintain offer respect broad architecture the platform, to open from to look various architecture start to customers their end move cloud-to-cloud integration our our partners, delay AI quickly we without cloud they range open model, customer Sika's reminder, benefit disruptive enabling with X Verint very, and AI and time. AI-powered ability on-prem cloud an the for differentiated customers the announcing cloud With a to offer cloud-to-cloud as

Let's look at reported Varian customers using some the by platform. AI business outcomes

experience self-service Verint, The consumers. The each first deliver to IVA Intelligent responds X than variety tangible for billing, telecom self-service. for contact company on top specific tech IVR of reporting a management XX% containment more company, savings driven including their million company more business annual Verint cards more using appointment The achieved example its replaced customer than inquiries. power including support. outcomes, the $XX rates their million service payments, is they center Verint's to Assistant a by to telecommunication AI-powered than and using Virtual billing telephony with technology of containment and all elevating inquiries XX% By and year the for topics improving

is example annual a $X bots second to Verint's company, services equivalent million AI-powered knowledge. access using for savings reporting to by financial to agent The enterprise automate

XX With financial searches to require real average their duration able seconds. agents the by company the services time, knowledge automating Verint's reduce delivery was and fewer cll time-consuming in contextual

outcomes grow Verint reporting believe are they from dramatic AI AI initial is over significant that business customers We and customers due deliver platform deployments of AI are strong they market and and stages achieving. The AI quickly tangible noise early customers existing with benefits Verint CX such the very our time their consumption are center automation pleased need Verint contact their that AI height. have will in and more ecosystem. can adoption to in the outcomes from been realize More a mitigating as their

task time scoring. The possible continue traditional Each using are is to box, perform And employee the the surveys. insights which believe is of agents experience, real to today. agent we real market which make new and co-pilot bots. to The We AI-powered AI, copilot behind technology latest bots, a score to real-time AI and new beyond acquisition earlier be we category unique the Verint today, customer accurately tuck-in not human in is unique acoustic agents efficient. The open lead with market during the will augments for specific experience and We analysis AI-powered managers platform. models more addition and scoring bot with and to AI the innovate designed new real-time EX Gen announced into both includes that scoring of closed them each time, in looking Verint through CX scoring call with boss variant our Asian which that to goes QX. with sophisticated augment a surveys the augment to came

we our provide benefit from XX, quickly to discussed open we in offering Day. integrate outlook and cover will our We ability include quickly next our explain strong we our we'll Similar technology, customer differentiation. are be in base. On for momentum large last platform January with platform year's how acquired our our our of holding year pleased will boats to Day, new and topics the term. Key Investor enabling rapid showcase Investor go-to-market will long a AI innovation to and

strong. the business metrics, including expect ARR are with will platform, financial for monetizing with directly and QX pleased and recap, open the flow year strategy review You the a hear results will we Verint our as they strong finish AI. To from and fiscal customers well guidance model, as AI 'XX about long-term outcomes to and achieving are cash we our

sustainable that, sub We outcomes Grant? our proven We I'll in a AI more and over to business expect our key momentum to measurable results hybrid behind AI a to driver outcomes by the revenue continue our is in Grant The believe with reported that Bundle business detail. staff QX. turn differentiator. And in financial to cloud deliver ability accelerate is unique it our customers. model discuss to

Grant Highlander

Thanks, Dan. Good afternoon, everyone.

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

we this year-over-year. due to year-over-year that million, increased basis revenue X% in our divestiture. in up Dan XX%, revenue expected. came streams margins million million. Now let XX came points as overview at This approximately strong earlier, around our as results. with me Revenue unbundled And of for start Gross was approximately adjusted to guidance into above margin $XXX our of mentioned QX was with an shifting non-GAAP forward SaaS expected other $XXX approximately in QX. All $XX QX

on guidance a $X.XX, revenue continued quarters expanded basis, ahead AI have EPS came margins to shift X reflecting Non-GAAP mix each in innovation higher-margin year-over-year our the customers. of also and of of to at deliver our in recurring We our gross $X.XX. the last the diluted favorable we

Next, at in SaaS let's look streams with more detail. bundled Starting our revenue stream. SaaS revenue

only XXX% SaaS technology deployed discussed we In have contributed to of we earlier AI growth in in million QX year-over-year, As task over revenue about Dan is from bundled QX. The that innovation revenue in QX. accelerated SaaS. of our XX% XX% in up tuck-in past acquisition in calls, bundled discussed bundled and $X nicely X% QX,

more acceleration $XX around revenue. of We XX% than to million to QX growth SaaS expect an bundled in year-over-year

unbundled to stream. SaaS revenue Turning

previously in be large coming of expect the QX. in we revenue to quarter QX, by QX, we revenue quarter to to quarter. of SaaS fourth QX pool unbundled come expected around of year, fourth ahead driven in of reported during our our similar year, In have million last million our During our $XXX revenue renewals renewal SaaS we $XX that largest with unbundled we due to the expectations

AI pleased We year bundled driven acceleration for customer innovation. demand throughout growth are SaaS our the by with

the customer all partners model AI on-premise. our examples in hybrid even cloud bundled when As provided, customers through available maintain SaaS their existing our to solutions Dan he mentioned and earlier, makes they

non-GAAP and at 'XX adjusted a outlook for least maintaining reflecting our expect guidance guidance. diluted EPS midpoint continue fiscal And X% EPS year-over-year. a more FY non-GAAP our revenue. We and our points year-end basis we is X% are revenue and margin to expect the diluted we full for compared year. year to guidance our can to at $X.XX this for of increase basis, revenue plus/minus On revenue than the million, $XXX of 'XX, gross XXX bit expect Turning our to expansion growth

and cash's we Regarding approximately to around bit assumptions XX.X QX. now income tax below-the-line on around year, expense full approximately more $X of revenue shares. I'd for XX.X% a rate our for noncontrolling you million, diluted color net a expect outlook and interest the $X like million, of million interest other of from a give net fully

$XXX growth modeling full for revenue recurring $XX you can and revenue, purposes, for in assume assume in non-GAAP in For resulting for QX. divestiture. revenue X% And of the you adjusted can million the recurring revenue million nonrecurring approximately QX of year

you ARR and provide SaaS some me trends. additional Let on Starting ACV bookings. new bookings with color our

new different As discussed on deals. see our we conversion trends deals prior between that call, are and

new and Verint on-premise functionality in QX Cloud bundled bundled both strong As of and increased for include the SaaS SaaS new include deployments deals expansions a deals conversions other a hand, the reminder, to new SaaS XX% in in platform Bookings like-to-like solutions. Conversion deals unbundled existing year-over-year. on

conversion were of hybrid from momentum to know Verint add and solutions deal We another rest when their year-to-date they later are and to our with of success the the finish convert they the with can year cloud quarter. Bookings due model. Customers ready. AI minimal our expect are strong pleased deals now new

We to expect to QX. Shifting this ARR. in dynamic continue

For driven in year-over-year, QX. increased ARR and ARR QX, SaaS by expect SaaS we growth double-digit XX% adoption AI

discussed our basis. recurring we metric useful a we it consistent normalized revenue streams annualized have SaaS of ARR as in is a SaaS the believe and on view As that provides an past,

Turning to our balance sheet.

continue good in a position. We financial to be very

more cash fourth Xx Our targeting to our XX-month further growth the more we XX% and supported generated and flow than full in quarter strong remains year-to-date, by cash under year, regard last last flow. With for year. net than we've cash free cash debt and is the XX% flow, strong are generation EBITDA

our our to stock executing we'll on Day. and, regard $XXX during are Investor repurchase capital With program, our on announced we allocation strategy million previously buybacks, more share expand with detail

are quarter, growth around with QX deliver fourth results with And year-to-date. to X% revenue We we the and strong adjusted we X.X% the adjusted summary, delivered pleased strong. In full to expect approximately our finish growth a for expect year. year

on SaaS growing at QX, year our you with We the new ACV Investor bookings to deals and are from to our line on January forward that, new directly review from finish look with model. With We our also XX, questions. please pleased expect AI we you XX% business outcomes upcoming differentiation, in strong. showcase will Day the will speaking our customers hear and we financial for when will operator, open

Operator

TD Cowen. be [Operator coming from Instructions] Eyal And is question Shaul our let first of

Shaul Eyal

well market listening Congrats at to participants I'm their performance. industry upcoming Dan, your results some as ripe of on wanted to you indicated within arena, cycle? at which the looking view looking and for recent the as is the healthy market results, Verint's I the contact gaining currently AI commentary, center share as you've commentary. And ask if Verint

Dan Bodner

Yes.

do, leading we market. we to have we clear, think are automation I CX be but the

and first, tens experience automation platforms, can not And kinds are is X also not dramatic We're CX are of we to time. And we X market at we of from anyone that platforms. And believe has of we're a and CX are potential labor this companies same that generated this send of in competitors really These outcomes and automation are And elevate insignificant. are that the coming deliver CX all because being types save customers, because from the talk automation. millions customer that delivering sell needs. Clearly, It's there's is we different that huge competition dollars business So we formation of course, in everybody of CX see solutions market that directions. don't report coming, costs we else. the us see We believe the is who trying delivering customer reported the need. kind now a -- CRM. communication when hear that we into outcomes share. leader thinks that not we to do but taking we

-- a for is have have and we specific startups our competitors automating on where market. specific AI large, all test. same solutions, very have specific course, come with best-of-breed bots the but port And in workflow. And very we from established platform. automating we of they are that small CX well they that compete -- a We bots can anybody at a time, But in more with or specific have performance specific the companies,

the open maybe be to to platforms into initially mobile. we more We in low ports to, at and we where consumption, to see about have data these for they the automation, CX all but platform. And as have level can consume start Da the consumption just they working bot of X to and Vinci, strategically the really want looking as customers core, they behavioral on grow have at a results, core, and think they're able an expand

vendors. have we solution clear differentiation So point from those

The IT of And the to was AI lot they're case. a as see they We buying enterprise the other reporting enterprise. not are across customers development. develop the tools very competitor our AI, not course, of cases is many simple. actually center in automation internal FX that It's trying use and use successful contact

would X, they now take a strong ecosystem. And your they've require outcomes other and lab we deploy kind customer So you kind call outcomes. because can love very you with can but projects we that of we what it we long things do. But lot you give give of into been science look, Verint, we those who knows you often, experiments lot a projects, message customers disruptive actually options year it of that And existing them, a see do this and outcomes and the can they because tell or yourself, strong buy have we can also you that also very from achieved. of --

ecosystem. very So with platform that that's deliver existing we an into can strong open actually differentiator another an

Shaul Eyal

Grant. some from seen about for quarter. third whatever Any you housekeeping tuck-in have light made know that I share with contribution you've asset? you that a that guys tiny info little the can just us Maybe it. mentioned during Got you've

Grant Highlander

Yes, that. I'll take

So technology. about a actually tuck-in we that $XXX It's AI invested acquisition a million in developing company talked QX. start-up in

So technology, but It's AI this AI very scoring the trend into they the exist create and team during important. employee earlier, call integrated ability call. it's very market each we're course, and and platform. strong very technology and introduced what new understand experience welcome strong some I our already of in doesn't we've the scoring team into CX morning, trends Variant. And of the have bot, the this as unique mentioned a the excited very believe as well. to real-time also, to their of CXEX And a very that the is And -- we and we

So we're the revenue have acquisition. Relative is contracts give right base, start-ups, company like any to terminate a about very other excited the about the They the customer and very perspective, focused small And on customers XX customers. time. small to their many technology.

we XX customers will no while time generate -- will we wait that to indications these over customers much and the So terminate annually. how revenue will have see need

For million results. you Good now, I'll dollars about $X in QX. so so several in could recognized you luck. Thank that's tell And million included -- much. that we our this in be

Operator

Instructions] the from coming line Needham. of of be Reilly Joshua [Operator will next Our question

Joshua Reilly

Yes.

higher of you are are If seeing actually what being the terms going of market? net look seats what's in at and spend customers about in actually renewing concerns center customers as on change a here, the with the contact result counts everybody's any in you buying sea

Dan Bodner

agents more going We to replace year. on give agents the the and how talked discussing. very different are quarter we different actually see the outcomes direct outcomes, our XX least cases we to customers beginning since AI and to those deploying we in about tasks. But business is then, at have to we give and And getting change this started see of into every We the agents strong AI website. change. customers business Yes, opportunity discuss started use more AI they replace about do that

and work build workforce. revenue. Other the edge spend pool some as that use just see customers We increased cross-sell agents time and relationship are to the would not but those upsell to So this capacity. I customer customers more outcomes that and field. actually they really to say the lab experiments, customers leverage increase choose reduce to do choose in to

choice that's very a and in more have more obviously, large talking recently So agent to self-service large they company get a from to to that an want questions to have. I automate spend a time, they while are simple some spoke actually from investing customers, time spend request executive And insurance of a they each goal customers. company.

will to specific what you to you're actually that in instance, agent. the will you satisfy box So in when you it after even self-service, an offer need, transfer

So loyalty because want conversation continue human can relationships. actually the and create deeper they to with you more being a

we is against that we software many the reduce WFE $XXX generate So across million to will X agents, customers to count. would say sales about question X starting years. agent see we million do agent currently actually choice these sold I And vary, we that but your that than or This have are agents for about annually. deploy per And software these. we

agent, business variant actually those eliminate they spend for bots. purchase to the to very So will bots they $X,XXX agent, is need accretive outcomes the the to delivering the And they replace reduce for would the AI. because seats, AI for customers

that lose by that function. Verint that's automate to Xx bots gain opportunity per we're will we're going a to delivering $XXX to going So the but $X,XXX seat, -- for

Joshua Reilly

period to is they there's of market then the XXXX the now are think have the center? all with the think a all improve? the in that of at space evaluating in look understanding where what last there the of And with customers cycles out year, solutions you're a overall kind all understand is doing come what AI contact that kind from if been terms the what And had of I in out year over to can talking calendar better sales maybe that different , need a have vendors found AI we actually digestion various solutions over I vendors customers doing. Do you the

Dan Bodner

tools the honestly, of hikes IT some in market, also that the to paralysis. the vendors play organizations of but for across sort enterprise. that's clearly noise different of around with type use yes, you're internal automation that most the are I think AI result referring AI and cases create So of they kind experimenting and And with

AI tool effectively largest market. is stage we but now. -- What we have go a an with and real, the to about excitement which point peers. anything it's customers in outcomes [indiscernible], meaning policies, look we is big already So have, created to you? And But obviously you cloud way the do to more They to it's to invest this again, hrdly insurance convert first. have unexpected time company again, the certain at an maybe not the because very is and and are early generating AI -- not about also cloud opportunity in can don't -- working not to say, your invest. business And to we're we're you best you need Verint

consumption can now very big. You not the deploy flexible. at very And low AI, a is. it's it is way existing the again, the use you ecosystem start can start And because, and you investment can to

customers it better. they is results ecosystem can in paralysis. lab, that realize So relatively better. with the existing is to an undo small And a the prove do not every and real starts the they getting investment when say I in that can getting but would now environment, quarter it in

Operator

from Samana coming will next line our [Operator Instructions] from And of Jeffries. Samad be question the

William Fitzsimmons

a how And that announced Billy together? would that discuss Samana. think about came just how if could help forward Samad as This enter opportunity for partnership should we be on jointly About new month Dan, deal it Fitzsimmons partnership, RingCentral going and frame you ago, and helpful for is we a us XXXX. you

Dan Bodner

Sure.

contact not new the have in but They're grow companies new announced grow cloud result, because a as the to market. And to center So a have they well, cloud it invested in together came that in initiative. integration. market, that's initiative invested market, that center to we both they and plan the new Ring contact to a

now we the that is to the their offer in So platform. Verint all have capabilities customers Ring able that

provide we a strong they platform. seamless industry business infrastructure you that the communication from need [indiscernible] also when and have CX choose think to AI and automation such benefit between purchase that believe way I the get they at and integrations a they as overall, that can the really automation So we through platforms platforms that outcomes to X look customers

So it's in you it was announced -- terms last as said, the of partnership, month.

this and will we engine year. expect be next another So from that but early, contribution growth minimal QX, it's in

William Fitzsimmons

intra-quarter, to then you engage And new your there product at annual hosted announcements conference investors it. Got user multiple there.

Your bot the XX products, those it count together. there plus. bundling to bots on beyond like new seems a focus expanded of greater some is But

announcements kind like the So And the feedback be would helpful event. of maybe you but could recap if obviously, to of what Dan, some speak Engage. customers' key from been then early, it's since has

Dan Bodner

can just actually already actually to the their way an together, that's when customers about say, sessions where some us what open [indiscernible] see for conference year, the outcomes speak. Yes. a customers there's technology, not business ask to generated. And questions of amazing conference vendor experiences. lot Engage hear and talking customers, customers hear was was to it's is best the getting to but And because that an again, this it not we about just about like about it was

and we gain leverage obviously, dramatic just AI for business as that So hear we driving AI it actually think more more business is that reported outcomes, more from outcomes. noise, confidence customers real customer created I customers, it's to not and

they bots AI AI, quickly. platform into because at obviously, automating a For basically the business, faster. other prove any bring ability or in customers And we run of mentioned X the also designed that platform just gives get way we're bots, increase do we to thing they different trying a as CoPilot from the to of them There they AI me, can bots. and different and to under lot that would around say agent help that bot getting have choose cover and results. But we start model the with and consumption to customers And than to small more confident, core get single innovate because the And is is a more more time, also as we X bots. XX. them hub we you we designed started from obviously, more everybody data to to early-stage just bundles. But is have workflow. the bundling workflow more very offer and CoPilot flexibility are behavioral their new able create platform to at We're bots the some to consume category. a X another a Gen lot the away in perspective, X with are I Obviously, that bundles, not to workflows especially especially market and quickly those to automate

of common in them real real different the knowledge benefits the in is time. Like the them of time in each helping of is real doing time, one and something All have one automating but agent same search. working

have don't agents just for and them. search save XX seconds. delivered being So That to can knowledge, to is knowledge

-- Another sell next terms of terms is a have messages the coaching. something. in CoPilot say good some time of in or to of bot real-time now to suggesting agent they action it's helping Reminding best them compliance

platform you want also can function So CoPilot to you bots be these each many and when see we're move of for And but will a have different that more works. capabilities bundles purchased faster. typically, customers have providing who they separately, a that with

carte, la a who bundles to want also offer for those move offer faster. You but you

Operator

call ahead Q&A closing to ahead. turn Matthew back like go does that and today's would I session. remarks. over conclude to for Please Frankel And the you. Thank go

Matthew Frankel

us for today. thanks, and Lisa, Thanks, everyone, joining

the XXth a any feel speaking questions have. Of to as night. at of delease you Day. with free And out you forward we course, look with on Investor Have to good the reach January

Operator

meeting. This conference for today's you concludes joining call. Thank today's

all may disconnect. You

Verint Systems (VRNT) 4 Dec 242025 Q3 Earnings call transcript