Q4 ARR Ahead of Guidance; Raising ARR Guidance for FYE 2026

AI Momentum Drives Record Bookings; SaaS ACV Bookings from New Deals; Increases 30% Y-o-Y

Cash Generation and Cash Contribution Also Ahead of Guidance

Revenue and Non-GAAP Diluted EPS Impacted by Unbundled SaaS Revenue

MELVILLE, N.Y.: Verint® (Nasdaq: VRNT), The CX Automation Company™, today announced results for the three months and year ended January 31, 2025 (FYE 2025).

"We are pleased to finish the year with strong AI momentum, overachieving our Q4 FYE 2025 ARR guidance by $8 million, and are raising our Q4 FYE 2026 ARR guidance. We are also pleased with our record SaaS ACV bookings from new deals, representing 30% growth year-over-year, and better than expected Bundled SaaS Revenue, representing 23% growth year-over-year. Behind our momentum is the strong ROI we deliver to our customers with AI business outcomes that are faster and stronger than any other vendor in our market. During FYE 2025, some of the largest brands in the world began to deploy Verint's AI powered bots and we expect them to expand their usage over time. As of today, more than 90 of the Fortune 500 are using Verint's AI-powered bots to automate workflows and many are already reporting strong AI business outcomes and expanding with us,” said Dan Bodner, CEO and Chairman.

Grant Highlander, CFO added, “At our recent investor day, we discussed our plan to begin reporting subscription ARR, cash generation and cash contribution to help investors understand Verint’s growth on a ratable basis. I am pleased to report that in addition to overachieving ARR, we also overachieved our cash generation guidance by $8 million and our cash contribution guidance by $16 million. We believe a ratable view is a better way to understand the underlying growth trends in our business.”

Fourth Quarter Highlights

Key operating and financial highlights are set forth below. The definitions of our operating and non-GAAP financial measures, and a reconciliation of non-GAAP financial measures to comparable GAAP measures are included at the end of this press release.

Highlander continued, “In Q4, bundled SaaS revenue came in ahead of our guidance while unbundled SaaS revenue came in below. Looking back at unbundled SaaS dynamics, renewals came in line with our expectations and a few new unbundled deals did not materialize in the quarter. These deals were with existing customers and we expect these customers to continue to expand over time. As a result, revenue and non-GAAP diluted EPS came in below expectations and at the same time, ARR which represents a ratable view of the business, was strong and came in above expectations.

In FYE 2026, we will provide guidance two ways. First, guidance for a ratable view of the business, including subscription ARR, cash generation, and cash contribution. Our ratable guidance will be provided with a narrow range +/- 1%. Second, we will continue to provide guidance for revenue and non-GAAP diluted EPS as we always have, but revenue will be with a wider range of +/- 3%.

We expect the ARR momentum we experienced throughout last year to continue in our first quarter. Our outlook for Q1 is for another quarter of acceleration, with approximately 6% ARR growth year-over-year,” Highlander concluded.

FYE 2026 Outlook

Below is our guidance for the year ending January 31, 2026.

Our non-GAAP outlook for three months ending April 30, 2025 and year ending January 31, 2026 excludes the following GAAP measure which we are able to quantify with reasonable certainty:

• Amortization of intangible assets of approximately $6 million and $24 million, for the three months ending April 30, 2025 and year ending January 31, 2026, respectively.

Our non-GAAP outlook for the three months ending April 30, 2025 and year ending January 31, 2026 excludes the following GAAP measures for which we are able to provide a range of probable significance:

• Stock-based compensation expenses are expected to be between approximately $14 million and $17 million, and $64 million and $69 million, for the three months ending April 30, 2025 and year ending January 31, 2026, respectively, assuming market prices for our common stock approximately consistent with current levels.

Our non-GAAP outlook does not include the potential impact of any in-process business acquisitions that may close after the date hereof, and, unless otherwise specified, reflects foreign currency exchange rates approximately consistent with current rates.

We are unable, without unreasonable efforts, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items. For these same reasons, we are unable to assess the probable significance of these excluded items. While historical results may not be indicative of future results, actual amounts for the three months and year ended January 31, 2025 and 2024 for the GAAP measures excluded from our non-GAAP outlook appear in Tables 2, 3, 4 and 5 of this press release.

Q4 Conference Call Information

We will conduct a conference call today at 4:30 p.m. ET to discuss our results for the three months and year ended January 31, 2025 and outlook. An online, real-time webcast of the conference call and webcast slides will be available on our website at www.verint.com. Participants may register for the call here to receive the dial-in numbers and unique PIN to access the call. Please join the call 5-10 minutes prior to the scheduled start time.

About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of non-GAAP financial measures presented for completed periods to the most directly comparable financial measures prepared in accordance with GAAP, please see the tables below as well as "Supplemental Information About Non-GAAP Financial Measures and Operating Metrics" at the end of this press release.

About Verint Systems Inc.
Verint® (Nasdaq: VRNT) is a leader in customer experience ("CX") automation. The world’s most iconic brands – including more than 80 of the Fortune 100 companies – use the Verint Open Platform and our team of AI-powered bots to deliver tangible AI business outcomes across the enterprise.

Verint. The CX Automation Company™, is proud to be Certified™ by Great Place To Work®. Learn more at Verint.com.

Cautions About Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management's expectations that involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, any of which could cause our actual results or conditions to differ materially from those expressed in or implied by the forward-looking statements. Some of the factors that could cause our actual results or conditions to differ materially from current expectations include, among others: uncertainties regarding the impact of changes in macroeconomic and/or global conditions, including as a result of slowdowns, recessions, economic instability, elevated interest rates, tightening credit markets, inflation, instability in the banking sector, political unrest, actual or threatened tariffs or trade wars, armed conflicts, epidemics or pandemics, or natural disasters, as well as the resulting impact on spending by customers or partners, on our business; risks that our customers or partners delay, downsize, cancel, or refrain from placing orders or renewing subscriptions or contracts, or are unable to honor contractual commitments or payment obligations due to challenges or uncertainties in their budgets, headcount, liquidity, or businesses or operations; risks associated with our ability to keep pace with technological advances, such as the advancement and proliferation of artificial intelligence (“AI”) and evolving industry standards and challenges, including: achieving, demonstrating, and maintaining the competitive differentiation of our solution platform; adapting to changing market potential from area to area within our markets; and successfully developing, launching, executing and driving demand for new and enhanced, innovative, high-quality products and services, while simultaneously preserving our legacy businesses and migrating away from areas of commoditization; risks due to aggressive competition in all of our markets and our ability to keep pace with competitors, some of whom may be able to innovate or grow faster than us or may have greater resources than us, including in areas such as sales and marketing, brand recognition, technological innovation and development, and recruiting and retention; risks associated with our ability to properly execute on our software as a service ("SaaS") strategy, the increased importance of new subscriptions and renewals and associated term lengths, and risk of increased variability in our period-to-period results based on the mix, terms, and timing of our transactions; risks relating to our ability to properly identify and execute on growth or strategic initiatives, manage investments in our business and operations, and enhance our existing operations and infrastructure, including the proper prioritization and allocation of limited financial and other resources; risks associated with our ability to or costs to retain, recruit, and train qualified personnel and management in regions in which we operate either physically or remotely, including in areas of emerging technology such as AI, due to competition for talent, increased labor costs, applicable regulatory requirements, or otherwise; challenges associated with selling sophisticated solutions and cloud-based solutions, which may incorporate newer technologies, such as AI, whose adoption, value, and use-cases are still emerging (and may present risks of their own), including with respect to longer sales cycles, more complex sales processes and customer evaluation and approval processes, more complex contractual and information security requirements, and assisting customers in understanding and realizing the benefits of our solutions and technologies (including versus those of our competitors), as well as with developing, offering, implementing, and maintaining an enterprise-class, broad solution portfolio; risks that we may be unable to maintain, expand, or enable our relationships with partners as part of our growth strategy, including partners with whom we may overlap or compete, while avoiding excessive concentration with one or more partners; risks associated with our reliance on third-party suppliers, partners, or original equipment manufacturers (“OEMs”) for certain services, products, or components, including companies that may compete with us or work with our competitors; risks associated with our significant international operations, including exposure to regions subject to political or economic instability or hostilities, fluctuations in foreign exchange rates, inflation, increased financial accounting and reporting burdens and complexities, and challenges associated with a significant portion of our cash being held overseas; risks associated with a significant part of our business coming directly or indirectly from government contracts and associated procurement processes and regulatory requirements; risks associated with our ability to identify suitable targets for acquisition or investment or successfully compete for, consummate, and implement mergers and acquisitions, including risks associated with valuations, legacy liabilities, reputational considerations, capital constraints, costs and expenses, maintaining profitability levels, expansion into new areas, management distraction, post-acquisition integration activities, and potential asset impairments; risks associated with complex and changing domestic and foreign regulatory environments, including, among others, with respect to data privacy, AI, cyber/information security, government contracts, anti-corruption, trade compliance, climate change or other environmental, social and governance matters, tax, and labor matters, relating to our own operations, the products and services we offer, and/or the use of our solutions by our customers; risks associated with the development and use of AI, including regulatory, social, or ethical issues, as well as our ability to capitalize on and benefit from the advancement and proliferation of AI; risks associated with the mishandling or perceived mishandling of sensitive or confidential information and data, including personally identifiable information or other information that may belong to our customers or other third parties, including in connection with our SaaS or other hosted or managed services offerings or when we are asked to perform service or support; risks that our solutions or services, or those of third-party suppliers, partners, or OEMs which we use in or with our offerings or otherwise rely on, including third-party hosting platforms, may contain defects, develop operational problems, or be subject to security vulnerabilities or lapses, including cyber-attacks, information technology system breaches, failures, or disruptions; risks associated with our reliance on third parties to provide cloud hosting or certain other cloud-based services to us or our customers, including the risk of service disruptions, data breaches, or data loss or corruption; risks that our intellectual property ("IP") rights may not be adequate to protect our business or assets or that others may make claims on our IP, claim infringement on their IP rights, or claim a violation of their license rights, including relative to free or open source components we may use; risks associated with leverage resulting from our current debt position or our ability to incur additional debt, including with respect to liquidity considerations, covenant limitations and compliance, fluctuations in interest rates, dilution considerations (with respect to our convertible notes), and our ability to maintain our credit ratings; risks that we may experience liquidity or working capital issues and risks that financing or refinancing sources may be unavailable to us on reasonable terms or at all; risks associated with changing accounting principles or standards, tax laws and regulations, tax rates, and the continuing availability of expected tax benefits; risks relating to the adequacy of our existing infrastructure, systems, processes, policies, procedures, internal controls, and personnel, and our ability to successfully implement and maintain enhancements to the foregoing, for our current and future operations and reporting needs, including related risks of financial statement omissions, misstatements, restatements, or filing delays; risks associated with market volatility in the prices of our common stock and convertible notes based on our performance, third-party or market speculation or publications, or other factors, and risks associated with actions of activist stockholders; and risks associated with Apax Partners' significant ownership position and potential that its interests will not be aligned with those of our common stockholders. We assume no obligation to revise or update any forward-looking statement, except as otherwise required by law. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2025, when filed, and other filings we make with the SEC.

VERINT, VERINT DA VINCI, VERINT OPEN CCAAS, THE CX AUTOMATION COMPANY, THE CUSTOMER ENGAGEMENT COMPANY, and THE ENGAGEMENT CAPACITY GAP are trademarks of Verint Systems Inc. or its subsidiaries. Verint and other parties may also have trademark rights in other terms used herein.

Table 1 VERINT SYSTEMS INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited)
		Three Months Ended January 31,								Year Ended January 31,
(in thousands, except per share data)			2025				2024				2025				2024
Revenue:
Recurring		$	191,502			$	210,693			$	708,117			$	699,248
Nonrecurring perpetual			36,316				25,750				108,521				99,853
Nonrecurring professional services and other			25,728				28,666				92,548				111,286
Total revenue			253,546				265,109				909,186				910,387
Cost of revenue:
Recurring			39,124				44,775				150,092				162,868
Nonrecurring perpetual			9,886				8,566				35,976				32,142
Nonrecurring professional services and other			15,790				19,331				68,304				74,968
Amortization of acquired technology			2,265				1,623				6,764				7,134
Total cost of revenue			67,065				74,295				261,136				277,112
Gross profit			186,481				190,814				648,050				633,275
Operating expenses:
Research and development, net			39,481				35,881				149,305				133,804
Selling, general and administrative			97,143				108,383				379,584				405,915
Amortization of other acquired intangible assets			3,533				6,343				12,774				25,371
Total operating expenses			140,157				150,607				541,663		If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news Thesys Introduces C1 to Launch the Era of Generative UI YuJa Launches LMS-Integrated Accessibility Products Marketplace Kojo Launches AI Tool Suite to Help Contractors Combat Rising Material Costs Chloeta Achieves ISO 9001 Certification Informa TechTarget Announces Receipt of Nasdaq Notification of Non-Compliance Regarding Delayed 2024 Form 10-K Filing Faraday Future Timely Announces the Upcoming Annual General Meeting per Nasdaq Compliance Requirement, Enhances the Strategic Execution of FF and FX Through Key Proposals B2B E-Commerce Market, Marketplaces and Payments Trends Report 2024: AI, Blockchain, and SaaS are Reshaping B2B Operations, Virtual Cards Expected to Grow Over 250% by 2028 - ResearchAndMarkets.com ISG to Assess Workday Ecosystem Providers in the U.S., Europe and APAC Last News RSA at Cybertech Europe 2024 Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem grow Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practice Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most read New Poll: TechNet and Echelon Insights Survey Reveals Americans See Tech… TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, today released the results of a survey in partnership with… SMART Modular Expands CXL Offerings with Addition of E3.S 2T 128GB CMM… $PENG #AI--SMART Modular Technologies Inc. (“SMART”), a Penguin Solutions, Inc. brand (Nasdaq: PENG) and a global leader in integrated memory solutions,… Illumynt Announces Completion of Supercomputer Decommission Project CNE Direct, Inc., dba Illumynt, is pleased to announce we successfully completed a high-profile decommission project for one of the largest global supercomputer… Canoga Perkins' SyncMetra® Network Connectivity Solution Enables Enterprise… Network connectivity solutions provider, Canoga Perkins today announced that its SyncMetra ultra-low, guaranteed latency offering for enterprise AI at… Newsletter signup Join our mailing list to get weekly updates delivered to your inbox. Sign me up! G11 Media Networks BitCity ChannelCity ImpresaCity SecurityOpenLab GreenCity ImpresaGreen ItalianChannelAwards AgendaIct Home Newsletter Staff Copyright Contact us InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , n. 21/2007 del 11/10/2007- Registration ROC n. 15698 G11 MEDIA S.R.L. Registered office Via NUOVA VALASSINA, 4 22046 MERONE (CO) - P.IVA/C.F.03062910132 Como business register n. 03062910132 - REA n. 293834 CAPITALE SOCIALE Euro 30.000 i.v. Cookie Privacy