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Verint (VRNT) Q4 Earnings Miss Estimates, Revenues Up Y/Y

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Verint Systems (VRNT - Free Report) reported fourth-quarter fiscal 2022 non-GAAP earnings of 57 cents per share, which missed the Zacks Consensus Estimate by 1.7%. On a year-over-year basis, the bottom line deteriorated 12.3%.

Non-GAAP revenues increased 4.1% year over year to $236.2 million and beat the Zacks Consensus Estimate by 1.8%. GAAP revenues of $234.2 million also increased 4% year over year. The top line was driven by strength in the cloud business.

Following the earnings announcement, shares of Verint increased 1.8% in afer-market trading on Mar 29. In the past year, the stock has gained 13.5% against the industry’s growth of 19.8%.

Verint Systems Inc. Price, Consensus and EPS Surprise

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 (74.4% of total non-GAAP revenues) increased 10.6% year over year to $175.7 million.

Non-GAAP non-recurring revenues (25.6%), however, declined 11.1% year over year to $60.5 million.

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

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

New SaaS annual contract value increased 38.3% from the prior-year figure to $30.3 million.

Operating Details

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

Total operating expenses increased 11.4% year over year to $146.4 million.

As a percentage of non-GAAP revenues, non-GAAP research and development expenses as well as selling, general and administrative expenses were 12.4% and 33.7%, respectively, for the fiscal fourth quarter.

Adjusted EBITDA declined 9.2% year over year to $57.9 million. Adjusted EBIDTA margin contracted 360 bps to 24.5%.

Non-GAAP operating income fell 10.1% year over year to $51.3 million and operating margin contracted 340 bps to 21.7%.

Balance Sheet and Cash Flow

As of Jan 31, 2022, Verint had cash and cash equivalents of $358.8 million compared with $307.9 million on Oct 31, 2021. The company’s long-term debt was $406.9 million compared with $406.4 million as of the same date.

Guidance

For fiscal 2023 (ending Jan 31, 2023), the company now projects non-GAAP revenues of $940 million (+/-2%) compared with the earlier guidance of $935 million (+/-2%). Non-GAAP earnings per share are expected to be $2.50, calling for 10% year-over-year growth.

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

Zacks Rank & Stocks to Consider

Currently, Verint carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology sector include Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Arrow Electronics (ARW - Free Report) . Arrow Electronics sports a Zacks Rank #1 (Strong Buy), while Broadcom and Apple carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.49 per share up 7.4% over the past 60 days. The long-term earnings growth rate of AVGO is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 38.3% in the past year.

The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share, up 0.8% over the past 60 days. The long-term earnings growth rate is pegged at 12.5%.

Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 20.3%. Shares of AAPL have rallied 46.5% in the past year.

The Zacks Consensus Estimate for Arrow Electronics 2022 earnings is pegged at $18.48 per share, up 18.8% over the past 60 days. The long-term earnings growth rate is 3.1%.

Arrow Electronics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 19.1%. Shares of ARW have gained 11.2% in the past year.


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