We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Verint (VRNT) Q2 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Verint Systems (VRNT - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of 58 cents per share, which beat the Zacks Consensus Estimate by 31.8%. On a year-over-year basis, the bottom line deteriorated 25.6%.
Non-GAAP revenues increased 4% year over year to $216 million and beat the Zacks Consensus Estimate by 3.2%. GAAP revenues of $215 million increased 5% year over year. The top line was driven by strength in the cloud business.
Following the earnings announcement, shares of Verint dropped 1.9% and closed at $43.25 on Sep 10. In the past year, shares have declined 12.4% compared with the industry’s growth of 36.7%.
Verint Systems Inc. Price, Consensus and EPS Surprise
Non-GAAP recurring revenues (72.9% of total non-GAAP revenues) increased 10.4% year over year to $157.2 million.
Non-GAAP nonrecurring revenues (27.1%) declined 9.8% year over year to $58.4 million.
On a non-GAAP basis, the company’s cloud revenues were up 43.7% to $94.3 million. Non-GAAP software-as-a-service (SaaS) revenue increased 51.5% to $77.3 million.
The company’s new perpetual license equivalent (PLE) bookings soared 17.4% year over year to $73.1 million. Percentage of new perpetual license equivalent bookings from SaaS stood at 52.6% in the fiscal second quarter compared with 43.1% reported in the prior-year quarter.
New SaaS annual contract value (or ACV) increased 59.1% to $26.6 million
Operating Details
Non-GAAP gross profit increased 1.9% year over year to $149 million. Non-GAAP gross margin contracted 150 basis points (bps) to 69.1%.
Total operating expenses increased 12.9% year over year to $130.5 million.
As a percentage of non-GAAP revenues, non-GAAP research and development expenses as well as non-GAAP selling, general and administrative expenses stood at 13.7% and 31.4%, respectively in the fiscal second quarter.
Adjusted EBITDA declined 18% year over year to $57.8 million. Adjusted EBIDTA margin contracted 730 bps to 26.8%.
Non-GAAP operating income fell 18.6% year over year to $51.8 million and operating margin contracted 670 bps to 24%.
Balance Sheet and Cash Flow
As of Jul 31, 2021, Verint had cash and cash equivalents of $320.4 million compared with $359.4 million as of Apr 30, 2021. The company’s long-term debt stood at $405.9 million as of Jul 31, 2021 compared with $405.6 million as of Apr 30, 2021.
Remaining performance obligations were $627 million, up 29% on a year over year basis.
Guidance
For fiscal 2022 (ending on Jan 31, 2022), the company now expects cloud revenues to increase 35% compared with the earlier projected range of 30-35% rise. New PLE bookings growth is now expected to be 15% compared with the earlier guidance of 10% growth.
Non-GAAP revenue guidance has been revised to $872 (+/-2%) from $860 million projected earlier.
Additionally, non-GAAP earnings per share are expected to be $2.25 compared with the earlier projection of $2.23.
For the fiscal third quarter (ending on Oct 31, 2021), the company projects non-GAAP revenues in the range of $215-$220 million. Non-GAAP earnings per share are expected to be 53 cents.
Image: Bigstock
Verint (VRNT) Q2 Earnings and Revenues Surpass Estimates
Verint Systems (VRNT - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of 58 cents per share, which beat the Zacks Consensus Estimate by 31.8%. On a year-over-year basis, the bottom line deteriorated 25.6%.
Non-GAAP revenues increased 4% year over year to $216 million and beat the Zacks Consensus Estimate by 3.2%. GAAP revenues of $215 million increased 5% year over year. The top line was driven by strength in the cloud business.
Following the earnings announcement, shares of Verint dropped 1.9% and closed at $43.25 on Sep 10. In the past year, shares have declined 12.4% compared with the industry’s growth of 36.7%.
Verint Systems Inc. Price, Consensus and EPS Surprise
Verint Systems Inc. price-consensus-eps-surprise-chart | Verint Systems Inc. Quote
Quarter Details
Non-GAAP recurring revenues (72.9% of total non-GAAP revenues) increased 10.4% year over year to $157.2 million.
Non-GAAP nonrecurring revenues (27.1%) declined 9.8% year over year to $58.4 million.
On a non-GAAP basis, the company’s cloud revenues were up 43.7% to $94.3 million. Non-GAAP software-as-a-service (SaaS) revenue increased 51.5% to $77.3 million.
The company’s new perpetual license equivalent (PLE) bookings soared 17.4% year over year to $73.1 million. Percentage of new perpetual license equivalent bookings from SaaS stood at 52.6% in the fiscal second quarter compared with 43.1% reported in the prior-year quarter.
New SaaS annual contract value (or ACV) increased 59.1% to $26.6 million
Operating Details
Non-GAAP gross profit increased 1.9% year over year to $149 million. Non-GAAP gross margin contracted 150 basis points (bps) to 69.1%.
Total operating expenses increased 12.9% year over year to $130.5 million.
As a percentage of non-GAAP revenues, non-GAAP research and development expenses as well as non-GAAP selling, general and administrative expenses stood at 13.7% and 31.4%, respectively in the fiscal second quarter.
Adjusted EBITDA declined 18% year over year to $57.8 million. Adjusted EBIDTA margin contracted 730 bps to 26.8%.
Non-GAAP operating income fell 18.6% year over year to $51.8 million and operating margin contracted 670 bps to 24%.
Balance Sheet and Cash Flow
As of Jul 31, 2021, Verint had cash and cash equivalents of $320.4 million compared with $359.4 million as of Apr 30, 2021. The company’s long-term debt stood at $405.9 million as of Jul 31, 2021 compared with $405.6 million as of Apr 30, 2021.
Remaining performance obligations were $627 million, up 29% on a year over year basis.
Guidance
For fiscal 2022 (ending on Jan 31, 2022), the company now expects cloud revenues to increase 35% compared with the earlier projected range of 30-35% rise. New PLE bookings growth is now expected to be 15% compared with the earlier guidance of 10% growth.
Non-GAAP revenue guidance has been revised to $872 (+/-2%) from $860 million projected earlier.
Additionally, non-GAAP earnings per share are expected to be $2.25 compared with the earlier projection of $2.23.
For the fiscal third quarter (ending on Oct 31, 2021), the company projects non-GAAP revenues in the range of $215-$220 million. Non-GAAP earnings per share are expected to be 53 cents.
Zacks Rank & Stocks to Consider
Currently, Verint carries a Zacks Rank #3 (Hold).
Some other better-ranked stocks in the Computer Technology sector include Microsoft (MSFT - Free Report) , Cadence Design Systems (CDNS - Free Report) and PTC (PTC - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings growth rate for Microsoft, Cadence and PTC is pegged at 11.1%, 11.7% and 23.2%, respectively.