Verint (VRNT, $51.47) misses fiscal Q4 earnings expectations

Verint Systems reported fourth-quarter fiscal 2022 non-GAAP earnings of 57 cents per share, which fell short of the Zacks Consensus Estimate by 1.7%. The figure is -12.3% lower from the year-ago quarter.

Non-GAAP revenues rose +4.1% year over year to $236.2 million, and beat the Zacks Consensus Estimate by 1.8%. GAAP revenues of $234.2 million increased 4% year over year.

On a non-GAAP basis, Verint’s cloud revenues rose +35% from the prior-year quarter to $118.6 million. Non-GAAP software-as-a-service (SaaS) revenues climbed +43.7% from the year-ago quarter to $102.6 million.

The company’s new perpetual license equivalent (PLE) bookings rose +12.5% year over year to $92.6 million. The percentage of new PLE bookings from SaaS was 60.8% for the fiscal fourth quarter compared with 48.6% in the prior-year period.

New SaaS annual contract value surged +38.3% from the year-ago quarter to $30.3 million.

Non-GAAP gross profit rose 1.6% year over year to $160.1 million, while Non-GAAP gross margin contracted 170 basis points (bps) to 67.8%.

For fiscal 2023 (ending Jan 31, 2023), Verint  expects non-GAAP revenues of $940 million (+/-2%) compared with the prior outlook of $935 million (+/-2%). Non-GAAP earnings per share are expected to be $2.50, implying 10% year-over-year growth.

For fiscal 2023, cloud revenue growth is projected in the range of 30-32%.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.