Verint Systems (VRNT) 29 Mar 232023 Q4 Earnings call transcript

Hello, and thank you for standing by. Welcome to Verint Systems Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation there will be question-and-answer session. [Operator Instructions].

to conference like Frankel. to now would hand over the Matthew I you begin. Frankel, may

operator. thank Bodner, Thank our afternoon Officer. Alan Good you, and Corporate Chief today. Highlander, CFO; Development here Roden, Grant Verint's conference you I'm with CEO; Dan Verint's Verint's and call joining for

Before our today getting to a is accompanying I'd that like slide started, mention call presentation.

the these IR Investor the call, verint.com, to the section If on our link during click tab, the you'd please and conference Relations real-time on like and click select slides in to call. at of view website webcast go today's

I'd of also call that may your and the of XXXX Securities meaning Laws. to this certain statements forward-looking the Private within the other provisions like fact to Securities draw contain of Federal on Act matters Reform discussed the attention Litigation

These expressed required upon forward-looking and materially are of Verint and the date guarantees of as current could or as or this performance. statements. assumes call, as law, are of forward-looking in from revise forward-looking implied not to expectations differ statements update Actual these obligation The results them. except based future no by those made management's are statements by

reliance to not are forward-looking Investors cautioned on these statements. place undue

XX, our risks see discussion Form how detailed forward-looking those XX-K when from more with results the and a XXXX, For the to materially filed we please make could these for and year and of cause other uncertainties differ actual other these January SEC. ended Verint's indicated statements, filings fiscal in

to our today's release our comparing measures. results Relations peer and investors at non-GAAP and as section measures verint.com of believe in GAAP non-GAAP the on discussed earnings for companies. slide focus Investor those among include measures financial measures a periods today presentation, measures financial Please see website of The reconciliation between we

regarding supplemental results information believes or is considered the is provides because meaningful informational our purposes. to as useful should business for, companies. used management may and included not financial in and it investors uses other measures information, our limitations superior substitute company financial financial those operating be comparative and to information from, non-GAAP by from a when isolation GAAP assessing but Non-GAAP have for The differ

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

you, with and our ahead guidance. our Thank pleased I'm EPS Matt. coming revenue diluted non-GAAP of

Our results were by and automation. our delivering CX driven strong platform momentum SaaS differentiated cloud

multiyear discuss results, market our Today, of tracking environment will differentiated I ahead is X years which we will the at out plan of guidance. the I the our time the and laid platform, SaaS Verint's also ago report screen. our transition, on that

are we of metric, our As approaching introducing an additional operating ARR. the year, substantial SaaS are we SaaS completion next position today, SaaS

revenue, on with momentum constant start our SaaS non-GAAP our 'XX is non-GAAP revenue total came XX% our strong drove in key increased a results. which driver, reviewing This $X growth fiscal of me guidance. fiscal 'XX, million revenue ahead basis. currency recurring Let SaaS and in growth,

XXX revenue. bps revenue revenue As generates to improve, approximately 'XX. mix margin gross as higher our our margin continues And in non-recurring recurring than the you know, our expanded gross fiscal much

Consistent with a on revenue, increasing growing basis. model our prior I'm our and non-GAAP EPS financial with EPS XX% 'XX guidance calls, assumes on diluted fiscal faster pleased than

nearly a SaaS growth revenue pure-play company ago, going annual and quarterly Our Since with transition well. multi-year years doubling we've steady becoming is revenue delivered customer two sustain. engagement SaaS

transition several due is of factors. to success our SaaS The

broad a engagement applications, capacity CX portfolio customers close gap. offer providing to we First, them brands help best-of-breed automation their of

well our market, with customers and approach new Vinci a data Verint with in the and and is end partner-friendly open later. both open I the elaborate is Da platform AI cloud will resonating partners. core. little at differentiation third, on existing our our Second, platform And with and

growing faster revenue. steadily our with SaaS progress As we than our has total been transition, revenue recurring

crossed the we two from we full software reported recurring of SaaS currency constant we increased of our XX% year basis. have a close delivered two to midpoint XX% up as last non-GAAP that revenue the Last and recurring, XX%, years on year, year, for revenue Over ago. the years, has each our transition,

As completion our XX% software we discussed, when recurring is of transition SaaS previously as defined our substantial a revenue from derived of sources.

We the 'XX. SaaS year of completion reaching next are targeting our substantial fiscal transition in

later time. overall we accelerate free revenue will Grant our completing will how over our cash flow growth SaaS position and discuss expect growth

with we're We SaaS operating an disclosure SaaS and metric, continue ARR, introducing additional pure annual revenue. to evolve today, or our recurring

two year more we last factors years than over and There just XX% SaaS $XXX CAGR milestone at million ARR ARR growth. behind a approximately strong are completed. our been reached the of has growing the in four

The is first one expansion.

large with platform to our it add and to expand expect this as base continues and functionality. Our continue makes Verint, we customers trend for customer capacity easier cloud to

customer-based this trend is factor SaaS, maintenance conversions. Many converted we and expect second continue. The to already their to contracts customers have perpetual

a rates, further $X.X SaaS summary, of both ARR. our And ARR growth. new won milestone new In strong 'XX, renewal our 'XX contribute factor fiscal we which are mission-critical across strong is [ph] platform. [indiscernible] XXX quarter of in third SaaS logos. we innovation four our pleased nearly every fiscal and is our In than factors to The strong winning to due lastly, more logos and are solutions these scale momentum billion achieving with driving

in revenue SaaS strong growth, Verint a is the rapid innovation Behind the platform. we deliver

I providing platform differentiation. highlight like us market, and strong with Our unique several in competitive to is areas would the

many is platform and customers' our easily the open, the First, completely of ecosystems. into fits competitors unlike it existing

keep are bring and to can quickly choices solutions. customers customers to to choose to existing telephony benefits fact, from The purchase platform or customers of own approach for benefits new our many provides. vendors telephony CRM their solutions choose automation their can these platforms offer the or way, that easily clear. CX and is deploy Verint's connect own the this your In They on your bring CRM. our focused message Either

AI of the engagement core In and Da customers platform. addition to from Vinci the benefit the Openness, Verint at data hub

developed that costs. AI Vinci Today, and including are customers powers elevate with with their the achieving AI platform strategic models, Da core to to objectives Verint unique data lower state-of-the-art AI customer experience realize to operating in with Verint by QX, regard, AI a automation customer Da had Vinci achieve embedded first models. ChatGPT open we already as well In of as Verint models purchasing summary. that call

platform it and centers other clouds. a The system cloud Verint by applications cloud-to-cloud running partners Verint and capability Also, This for set and collecting is end of with solutions supports platform in the the deploy and can across for connectivity. enterprise. best-of-breed customer easy anywhere supports in makes broad value to CX add the their and capabilities the start partner-friendly automation resale integrators platform design customers contact

our Let's market recent turn results to QX and environment.

of close many our that with In earlier diluted and overachievement QX, before margin. expected in record competitive to was came came our customer the logos. in platform EPS revenue originally wins differentiation The new gross non-GAAP due including to primarily expansions year-end. of QX we expectations The revenue to ahead high several drive and deals continued

Barclays, we the had many large DIRECTV; SaaS including world, provider, easyJet. QX, and organizations more airline, financial In orders, services in as the company, some such media of recognizable

plus, XXX For $X a we up deals of SaaS year-over-year. than the had with more million year, than XX% more TCV

and telecom new Juniper many we Farmers In win company, the including continued Networks logos, to institution, Bank. & financial addition, Merchants

logos XXX logos, quarter. every more than including For new the than XXX year, new more added we

that new recently also platform. Google, partnerships Tech And Our open announced are reselling Mahindra. the partners reselling Carahsoft and new platform flexible with is and Verint attracting we

ecosystem approximately These X strength generate the XX% the continue due to of and we sales revenue and force Verint partner platform. of the annual sell reseller and We companies our to strategy. a partners from signed Verint Verint's agreement, platform their grow are partner-friendly to our to enabling expect our

wins QX. three, closer X-digit and SaaS a large in Let's X take look at

areas order to first healthcare leading scalability openness. platform of relationship applications is TCV a and Verint more million customer to for $XX The its with due enterprise and This to company. our expanding from its was additional

CX The the and second from third strong European $X industry. the large $X believe openness system was was our existing offers drivers key leading a million decided million order, customer's to SaaS cloud, for TCV, the company. for This chose platform platforms in given our leading insurance platform AI AI the ROI order, their customer company and first our transportation were differentiated the We keeping telephony of move with applications the decision. differentiation. capabilities from on-prem. our And to a company This TCV, while

we win buying to many new a we're environment As market seeing also continue large logos, the change orders behaviors. and and in

We we operations, Here plan time be few saw some conversion of continue examples they're but forward are down the us software with QX. to in is more and slowing buyers already deals. move to Verint given that deployed with to in engaged noticed conversion. convert They their taking a behaviors

we arrived deals guidance scope behavior in in that reduction a as with we Having expected underlying QX overachievement fiscal trends than awarded drove budgets said our in came that booking our customers deals anticipated. several smaller QX. 'XX. will for and noticed us booking out later also discuss some our the Grant noticed deal also revenue We push earlier the in assumptions opposite originally and as this, and

to Turning for our guidance fiscal 'XX.

growth. strong We to XX% expect revenue of momentum year another XX% with SaaS

of Overall, expect improving revenue is has EPS scale margin gross strong with growth and recurring Verint double-digit of we than business growth revenue XX%, driving another SaaS growth another of expansion, growth. around year year faster and diluted margins. We reached expect driving

well opportunity can annually positioned Verint's our labor $X customers, brands elevating address Looking tools costs trillion costs automation Verint to experience, long-term their important that Verint. fiscal years. is we workforce many the significant our automation delivers are customer to beyond for vendors seeking very we to are SaaS is to sustain automation brands helping automation platform believe large with we over CX believe labor a and solutions. that help introduce CX 'XX, spending their on are like momentum new while and

momentum with spin set and pleased In I'm sustain momentum the strong to this two many over the ago summary, years opportunity the years. since

call to the Now turn let me Grant in our more to financials Grant? over detail. discuss

afternoon, everyone. Thanks, Dan. Good

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

at in will metrics, For constant help million quarter, performance. past certain to million, year, certain QX basis U.S. you this the it operational $XXX adjustments related dollar a foreign discussing to of last I Non-GAAP the currency to given our our prior significant for better exchange results came rates. revenue Similar guidance. above be $X also includes appreciation on understand

was year, SaaS And currency growth the at X% it revenue on the increase recurring Non-GAAP a basis. $XXX came recurring constant was $XXX million, a XX% year currency currency an up a was for strong the basis. on year, million. non-GAAP it For our $XXX million, of constant year-over-year XX% in our on up growth, year-over-year Driving basis. revenue for constant revenue

like 'XX, a down I currency year-over-year last result new SaaS of on and basis. deals a deals. new growth as revenue constant In a to basis the XX% deals between currency grew break year fiscal SaaS conversion would constant sources our on of non-GAAP revenue XX%

also primarily deals from come new include logos. expansions New and

from a growth SaaS SaaS. us sequential sustain drivers believe margins these and revenue improvement deals migrating intact fiscal years we grew long-term. result growth constant last experienced In basis quarter. the year, a as will on in SaaS of perpetual to gross strong to converting many for We 'XX, a currency that Throughout each enable remain our XX% will customers

achieved Our margin generates In revenue, gross gross for has our than points higher expansion. margin our recurring non-GAAP much margins year, non-GAAP the revenue recurring of XXX we been driving gross a achieved XX%. and annual of our gross we nonrecurring reaching margin XX.X%, basis growth and revenue with QX, expansion

going continues our has towards already margin margin mix to to to the high the SaaS move mid- gross as And due shift of revenue we revenue higher. to our forward, expect range operations. recurring non-GAAP XX% to SaaS, improved total scale gross Our

EPS, diluted prior to in Turning non-GAAP of QX from the QX, earnings. of $X.XX In we $X.XX delivered year. up

earnings and margin revenue strong Our SaaS with expansion. QX gross combined by our driven operating growth was

than the faster XX% year, our EPS diluted revenue For grew growth. non-GAAP

margin goal faster our we the expansion proven forward, our to by SaaS to our non-GAAP transition natural grow hedge to EPS our foreign revenue is ability through Moving have. costs, continue and than including manage with currency driven

of today, SaaS our SaaS pivoting annual represents SaaS investors And recurring momentum our SaaS the contracts underlying from shift the mentioned value SaaS recurring period SaaS earlier, we are monitor to end to ARR period. metrics or the of contracts introducing at end of signed revenue, identify completion quarterly transitional as to the to we ARR recurring run use transition, understand the help As Dan annual We metrics the growth of customer the business. SaaS. business and rate we to as active as traditional are reporting operating we SaaS a of ARR. value approach better annualized our the of SaaS or of

the appropriate We SaaS. now SaaS majority an metric given believe of our revenue ARR comes this software is from at time

million the SaaS more were XX% CAGR QX, pleased Our at a last milestone achieve approximately of years. significant $XXX SaaS we ARR to has a over ARR. X in been And than growing of

SaaS 'XX ARR fiscal Looking in forward, in strong expect growth beyond. we and continued

bookings. SaaS delivered currency $XXX new We growth million 'XX, on in constant fiscal to ACV a XX% basis. Turning representing

ACV based SaaS of new quarter-to-quarter fluctuate and can the timing on conversions. New deals

fluctuations had about In quarter. bookings fiscal 'XX, we small million new averaged SaaS $XX per of and quarterly ACV

our strong before close to pipeline year-end. conversion earnings we were expansion the discussed deals we During that and expecting for last call,

'XX, back behavior experienced SaaS new in fiscal fiscal changes expecting at and now similar Looking ACV approximately 'XX. XX% to we are we growth noticed grow in to buying the QX, in

for now XXXX. year January fiscal guidance I'd XX, to current discuss the like our ending

well expected plus to in the year, we've reflect before are we closed the For to our we minus discussed in $XXX overachievement QX year-end from trends revenue as X%, as deals adjusting that guidance but today. million, originally QX the or

revenue a XX% non-recurring an the continued between about year. another expect of translates recurring is year recurring in into double-digit of for our non-recurring recurring decline revenue revenue. revenue expectation of of Behind growth SaaS with We revenue and and revenue million This growth $XXX in strong strong $XXX XX%. for million growth about

EPS, XX gross at expect to of $X.XX for expand our we faster. midpoint the earlier, margin by we discussed little points And we operating diluted As a and about basis margin guidance. revenue expect

we $XXX,XXX venture of below-the-line Regarding about quarter. Net average we $XXX,XXX per on and have interest non-controlling small a expect in expense a joint from should per quarter. assumptions, interest be other income

fully about XX%, and tax outstanding. million expect be Our cash should rate we around shares diluted XX

Let me we also discuss year the progressing. how see

For increase million expect strong year QX, $XXX with and recurring in of in with about to $XX million revenue, QX, another QX, sequential the typically we QX. about sequential in growth finish our

services, revenue, For year we $XX which includes to revenue perpetual and with expect quarterly be this professional non-recurring licenses around flat quarter. million each

last not in make had down in reminder, flat HX. a revenue non-recurring fact year down the middle the step was revenue we of stepped comparisons year of the for revenue nonrecurring in in a The last will that middle As as year. tough

million OpEx For growth in recurring of plan 'XX. of approximately million EPS of expect headcount OpEx, assumptions $XXX of non-recurring drive similar QX we level consisting to QX fiscal of this million and, expect QX not revenue, assumptions therefore, maintain and of of year. QX, to drive to reflecting that revenue of million $XXX These year do also to compared $X.XX full These We diluted for year. be QX. increase around the for in $XX revenue $XX total last X% year-over-year to

to our Turning sheet. balance

continue a We strong and good cash very balance be with to position generation. in flow a sheet financial

with items, as generated office of we 'XX, fiscal Workplace operations, part Reimagine our program. $XXX lease from associated excluding cash one-time million primarily of For terminations

announcing in QX. from so worth complete program. cash we have QX transition. shares, the $XX earnings our as $XX repurchased million and buyback announced grow we $XX flow expect $XXX We million million operations call, far of million in continue a program, last to SaaS On our we to Since

SaaS are our and we transition we very tracking spin. of summary, ago been laid out has ahead X going years plan our of well, at the time In the

SaaS been the $X.X in achieving ARR. the deployed last of approximately operations more our SaaS we years, in leading world, some ARR X Over scale our XX% have and the with growth, solutions SaaS of delivered than by brands billion SaaS

strong is metric, key Looking growth growth forward, getting for following we reasons. are long-term success the SaaS SaaS to and our revenue sustain

resonating both well end differentiated is customers highly in the our with and partners. platform market, First, with

continues a base we that large with Second, expand to have customer Verint.

are open to services opportunity our offerings. continue build our expand to our to provides resellers platform we attracted them because Third, an value-added ecosystem around it as

And our fiscal the of magnitude 'XX revenue order we opportunity Overall, finally, million growth SaaS converting us dollars. revenue from customer still significant and in uplift in platform. have sustain beyond. hundred a the several strong to our large conversion SaaS is base uplift estimate very of that expect to opportunities we of We ahead

line for open With questions. the please that, operator,

you. Instructions]. [Operator Thank

line the from with comes Timothy Oppenheimer. question of first Our Horan

line Your is open.

relatively we in that? and you to a bit quickly little AI? elaborate compares and to it of more more to and risks prepare just a maybe lot. maybe AI ChatGPT new an guys. legacy represents. sounds basically data it forms opportunities what legacy able Thanks your to like leverage existing AI detail? ChatGPT talk maybe And to maybe how Can operations able important and And being is about Can contrast customer. a Can your how and little you bit Thanks other on you're

the very approaching AI to very AI vendors question. you role for of But future the in Thank going engagement Okay. differently. customer play are Clearly, a industry. different is important

of course, vendors telephony a cloud Verint focus on bots, approach many So with is AI deploying and different.

taking automation, across point are use on broader focusing platform. CX And of much and critical, to AI view We we're is AI automation. how with a CX on the

their on enable are and to because and CX. and work we really productivity approach And elevate underlying customers looking that important sometimes that's that brands frustrate bots is help they to very own, people. together bots, believe don't to the that So achieve the for people tools

approach to want AI it. we and and workflows explain to work together, need you how I So

are engines Vinci to customers the when a platform. key providing ability successful core at our a is just it's that them built obviously, it's will AI the They AI technology. Verint the Da But ROI. the monetize is offer technology, but state-of-the-art strategy And of not AI our AI. pay for to So

applications is all bring at the right workflows why platform, with AI we So time. people working AI together this to are right the AI in have that we to in embedding offer the we the and

technology is asked From as me focus let first, the that because I'll core some focus of Da the platform standpoint, on Vinci an framework. open So on I'll the about a you technology. the technology and then just talk about architected at examples.

at does that Da we developed Verint open? mean that we're in architected platform, also touch provides running which the access this on such AI, embedding AI but Also what later, First, of So the commercially as unique includes developed, Da ChatGPT. it's on all it the and data, available the Vinci platform. because our models core I'll applications based generative Vinci data to

we So need of we different for models many, don't have separate we And the AI many design to applications. applications offer each customers.

embedded call that, And do. cases it's in at decided well people like initially, fact, apply to part and And it the for And of that Internet, customer we We've summaries. let's engagement evaluating but automating on core this worked for example we because for use the what case the use provides use ChatGPT. with cases. function can really not the added So very we the for technology Da platform. just been this is specifically that automating take we've And of capability last open, ChatGPT to year. because Vinci

solution not includes helping first So to example this working on a I own. And QX. that operationally company customers we are their believe obviously people, of offer sold this that the bots ChatGPT. we are use is are working how in a good

customers the and So at pace to of the of our it's core AI time a the can example Da quick Vinci provide value. platform good of innovation accelerate putting

unique want example, Another give Da is Vinci the machine I to architecture related so learning. about to

models So that as we've learning data. train machine AI I used irrelevant is things we data when as all data think And crazy happens seen are know are them. that the the good or now that on partial only some underlying to

customer to Verint So to use based many customers the different hub verticals provides AI And engagement we effectiveness includes languages different improve a in many, opportunity platform data. that machine many data have very in learning the geographies. comprehensive across real on us

So AI we use we data us training our competitive give big believe models that a advantage. for that this

the All center data connect So to the direct our the doubled is platform I engagement last capacity help of the to this reasons we differentiated the Vinci AI open the the SaaS nearly that help its one gap. brands platform, years, Da over makes close to combination effectively. unique of hub, in brands And drive AI ability automation and the of data use AI, with ability ability two to revenue flows. believe

comes Eyal question next Shaul Cowen. with Our of from line the

open. Your line is

in current afternoon, Good question 'XX on of have guys. the a what's you. fiscal environment? And the given My is your I you the Thank Dan. macro first follow-up. guidance level guidance. confidence have

Yes.

So give I a is our guidance. basically you which can answer short

[ph] you I think Our guidance is thinking. take answer, But given [SaaS] consistent detailed better to processes. just to with probably the a through give it's environment, our

So me this together. put just let

revenue guiding because turn growth the and, EPS And our SaaS XX% to SaaS year. recurring to margin metric So is the of than which driving growth, guidance grow revenue. expansion first, for that's in revenue opportunity growth we're revenue the gross compared course, in XX% the to it faster is last and drives critical XX%

current focus Verint. benefit early $XXX our So SaaS the the is of represents by to our at no SaaS revenue operations some very SaaS And customers achieved XX% in of first world to environment? in SaaS the with scale SaaS of me And in already about including to SaaS we large achieving first, the why that longer that achieve adoption moved let We it maturity. and offering on our So XX% in revenue stages. think midpoint do the how we guidance. plan million guidance

SaaS with the year ended million we ARR. So $XXX

is all think robust. that our us that confidence offering very I So SaaS gives very,

conversion few years, in growth. growth not and of the what very I we that's when current and changing And basically very over the the drove sources look fast source of the environment I are at back, strong and Second, this see and SaaS expansion. last look momentum

came and XX% So from as said Grant year, conversion growth came last XX% XX% before, growth from expansion.

ahead very pipeline So of we still us. large opportunities have conversion

have lot yet. that see also a of that we converted, customers have SaaS. that are We customers many that customers have we adopting trend But increasingly converted we but clear see not a

guidance dialing last compared year. the to growth year, XX% for to year we're XX% growth this So XX% this

And other deals then, new the source expansion is and logos. new

XX% a last that's So growth year.

the expect assumptions. this the that expected lower, base know will we've every quarter, be And new We And we lower in platform. to And with course, environment continue from to XX% new to grow year. consistent current X%, and they expansion comes needs. also, about the this are expand customer many logos company brought time. that of that's to Verint business continues the XXX a over have And very to large logos, those many

of kind focus year. very think an going quickly. that now environment that's changed because about obviously, the But is this So to I'm on we QX how

provided Grant that looking also important. color start the strong. the we're And to or guidance is year QX So

of relevant the one $XXX But time, it's we And which to revenue $XXX grow have of small. million, so hand, recurring also but cities. and growth, course. have expect of And for at SaaS over guidance was becoming of we're in XX% line SaaS more with million two recurring targeting XX%. we the based revenue non-recurring XX% growing revenue, is time QX And with our to revenue, good ACV the a we which Verint XX% same less grow it annual pipeline, also tale this We digits, in current in is the news predictable, the New expect because on double line very On result $XXX becomes guidance, million which declining. XX%. QX to strong is annual is year, our is of

we at almost a year-over-year. non-recurring compare million we this expect and quarter, a revenue, creates year, revenue this during that So tough is expect $XX but year, last in growth. HX. every in of QX, impact the revenue big versus almost total beginning perpetual favorable non-recurring But be drop drop on million flat $XX X% the later to more And year,

year So kind We drivers to summarize, was intact. last we growth growth. the see see XX%

to revenue believe guidance up and achievable. XX% XX% expansion, that's Our SaaS margin is we is with

reflects kind Our SaaS million a in metric, thinking of our introduced finally, that's strong with we and the $XXX of guidance. summary decline transition to complete up metric, SaaS of QX ARR perpetual. expect of next new guidance SaaS we year. our that's XX% continued year-over-year, And And growth

then, would that be, mentioned Got these contracts versus contracts that related? Why flush, phenomenon? at came of would earlier it. you would characterize that And it How is my slipped. But follow-up some budget ahead you some an discount it time is of timeframe? come specific

Yes. I at mostly don't it's because not so end think customer it's budget January, the of flush our with year-end aligning budgets.

are it's to our I customers they just that and needs these needs think have that have satisfy.

conversion. that's need feel don't tier direction. new. decide feel product, and the do because time the As take But customers do already to to convert case, they they and many opposed to operational, it's to something they have more in conversions conversion. Verint to working, actually they the We pretty it's much SaaS, saw of were the They their deals that keep want this slipped can urgency if

really smaller. out. somewhat conversions we that we pushing saw We So see, saw came some in expansions

earlier. customer expansion the there kind few the time, So And a well put and take as phases smaller strong At was of same logos to decided that expected. new in the were the very deals into awarded customer than QX. little originally

it's different So mix of behaviors. I think a

Evercore. Levine question the Peter Our of with line from next comes

Your line is open.

same a Maybe got conversion fiscal question, perhaps one, dollar number you out taking on-prem the side just prior then follow-up and the calendar from on into that my questions. that pulled the quantify can for Thanks QX Great. pushed got the forward 'XX? into

Yes.

deals the So came that million, we in there to something. that that was deals. And QX perpetual QX majority were $X expected X million of close of $X in

the SaaS million $XX the for in So number. quarter. don't ACV new at came ACV see you them This

these were deals on expected got delayed expansions I that pushed deals conversions on none would was $XX is more or is $XX of based the that smaller that of million million, competitors. to half lost million these our We of scope. either and $XX about pipeline. None And say half

also it's all confidence came definitely but we already timing. of So the not And some QX, it. have of deals that in

the of follow-ups. And just like, or is they like Is back on they the conversations pulling that it smaller then forward can having they that then, give the having, Are curious with scope, seat kind to hey, of is conversation? the detail then of 'XX? the contract. count? a One of back is to of are just second explain customers Or their table appetite just are to know, kind on a, what come like what And a full back kind us curious or in little go it pulling and one back what on. are to more workforce you half on? come two Just I'm engagement? you're more going bit calendar now us a it is more

I'll example. give you Sure. an

So as they have very large divisions you have and large many customers, know, we very and workforces.

people can one-third. expand awarded know and still is it's $X.X divisions are million. happy they to So other standard fast very our how do, the don't but management And but more the have and the to deal They license, specific divisions. and that the know more of $XXX,XXX, who's us bots table priority up, I one about product. later. want they deploy the customers they deal are I to to ended I looking add a on The that it, the just product, has balance and do that customer of into matter so to our a we something confident knowledge at said a their want product I timeline be that and was into

one just last one. Maybe

you kind can And you then who are Thank have minimums contract was you. like of Is tell an them with us for announcement, the maybe that deal? this in bake-off exclusive Google with? the place hit? Google, to any there On just guys

Yes.

customers for So One our on number for that I has think while story is Google fact Google is the the now of the Verint interesting levels. a been obviously platform. a

contact the we a to center Then As that decided for AI Google and in play a strength they think bring. of years, to the were a able has player they've see I in number been bigger. customer,

So expanded of a think Google they terms Verint. a reselling I relationship our partner And to resell. being were now looking in to vendor for

with strategy. many we've think, great way many, do to we force. many an them obviously And technology and collaborate same the in continue sales resell to their partners their deal-by-deal, have and providing vigilant, expecting support customers our And been going are helping as we said but we on as to and times, helping many open other specific we're successful. partners, part but own, on Google, not not because and deals we have We it's have. to partner-friendly be with other only just side-by-side, I be helping will salespeople also them enabling the with good we're success And our experts we presales of

Instructions]. [Operator

comes next Ryan Our & MacDonald question of the from line with Company. Needham

Your line is open.

about seeing seeing or the for the appetite to Thanks Yes. color And any great sort all remaining maybe detail for the some of Dan, to starting you in outlook just delayed Can going Thanks. delays pricing there? talk 'XX change deals elongation instances you're SaaS? on then, taking and the on reevaluation you any there's question where my convert or the where of are for the on and there. competitive on or over maybe conversions for here. dynamics customers maybe and willingness conversion thanks a

a right thing a the see The tire you I'll give and we kick tells example only to that an desire again. again story, is because now, just and

customer was large been that to of Got stages, decided that We've companies end our completed for QX. the don't conversion many that ago. we banks at which already security. to time they our of have But financial converting in planned to have security. final that security SaaS. address think one And we the long how first the time for security because was a review, cloud the a they this do been of not had review, I be have And is the made SaaS, they issues. and to security want we were review has customer, this to years decision, to know their and So going services many another great

months. another SaaS, first they vendors were decided want we going that they're will which take the in operations, review, more of take few So they to a and one their to

customer faster the innovate on-prem. that can ability desire believe to also we this based SaaS the the is Now to SaaS in environment go than and TCO on for better they

to to time. didn't to change. trying with So cloud that in environment, the think take But change. to And decision given everything the think right they don't they're now move I Verint I the accelerate going are didn't else that's trying on their

When to the SaaS, decision the year it's prior in to at this year and whole think time. I it's industry that moving take was at the I for of versus because But in customers interested Verint how to are of conversion, time was a is growing matter actually just don't pipelines all. this related before year many terms look and the

color. is that's for any that, about And you. No, sort challenges? I obviously, partner I'm importance result curious, a on the from consistently the a if an or maybe been appreciate at about one, a from going customer that's of then, helpful acceleration just as big start conversely, you how in another to that. that partner partner given about a ecosystem. and you see situation of maybe the talked And move to curious, those Avaya, of Thanks. negative impacts maybe customers reevaluation to routing concerns of potential

Yes.

Google integrator. system -- I system It's and think integrator and federal a generally, Tech growing. government we they We partner see is a Mahindra. the our are Carahsoft, ecosystem announced system

helping our which faster is year, to direct it's like So compensate with vigilant. part direct. like last to partners And is We looked our sorry, revenue, they customers, year, neutral, grew XX:XX direct win, we're they're our the sales and revenue of but grew whether ecosystem. force, fine. indirect, And sales partners then they sell successful. partners expanding we definitely is or being force between We helping last when our see which

partner. us that have It's and the have one don't many but In account, with XX% many Verint. have some many, partners terms it's course, years not of in we grown concentrated concentration, And any been of accounts. large customer base with

don't faster concentration. of years platform our growing. two for putting continue see to spending over the in last grow to I part leverage platform is we SaaS just direct OpEx believe will terms our because our many And some strategy ecosystem and than that also of see the So with and will that business better I the be our started also indirect it's creating any sales partners cost.

last reselling our a marketplace. also just have into And put functionality we partner I'd it's developing and about available platform our many they our that our open partners training partners, and not than ecosystem marketplace to the And thing, but say in customers. is

we from So benefit will benefits also relationship, reselling and our from the but ecosystem platform partner approach. platform see

you. Instructions]. Thank [Operator

Marion comes question next from with the Jefferies. Our Mason of line

is line open. Your

the taking for Thanks Hi. question.

So from of direct if you from expect SaaS your of more model or partners? your sales future about do your think to growth, we more more this come CCaaS

and that look, growth, SaaS they want is many, for many scale. partners -- to are CCaaS I respond but I CX CCaaS we say sell partners. revenue from And have not well. it's as you our many, correctly, direct, necessarily call automation that's SaaS resellers, we expect sure CCaaS that from sell Verint. I But are have more make CCaaS And vendor they that when than business because we what partners vendors. now to true SaaS partners

CCaaS to of CX lot value So with a ability we're to giving not just partners the add the but resell CCaaS automation.

what Da many existing They the can platform, don't our industry. was new AI our not customers don't the transformation leave capabilities is about exist at you that's they some we they we of and to the But prepared see no think capabilities. to my on-prem because and Vinci in on-prem. they interesting a And new many, you conversion don't step not gave converting cloud. still the SaaS. And cloud. around decision why telephony, Verint change back because cloud, convert applications there that cloud, And that's into can of to remarks, are you think then, we because very legacy, and in next without have with they designed the have in contact telephony many convert customers think the contact to But I only to everything but example they strategic. center. telephony centers, look and And yet the things way when to AI actually the Verint big force that's ahead buy because buying the the the cloud first to in the When customers, to they looking many we is us AI, yet earlier dynamic the But from digital it. want pretty that's that's are I move the an are for looking that opportunity actually buy buy

prefer I for open There we're And and customers cloud-to-cloud some open when with who all to direct platform to put So have what connect Verint. to to represent to many think augment we are Verint else's they cloud. actually all looking three the And partners, the multiple see with CCaaS we that vendors into think vendors with scenarios. somebody also then, have continue are opportunity context, they everything capabilities. but they about their journey are not that vendors, additional we platform design resellers

Matthew turn to now I to back I'm in questions showing for further Thank the no the remarks. you. like call would queue. closing

Matthew Frankel

us thank and Loretta, joining you, for everyone, today. Thanks,

usual, if you feel any with free questions, As good have Have night. to soon. and a reach you out, we'll speak

Ladies concludes and conference gentlemen, Thank your today's this you for call. participation.

You now disconnect. may