Verint Systems (VRNT) 7 Jun 232024 Q1 Earnings call transcript

Good day, and thank you for standing by, and welcome to Verint Systems, Inc. Q1 Fiscal 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Relations, host and like Matthew today's now Investor Frankel, Corporate would introduce for your call, I Development Director. ahead. go Please

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

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

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

I'd of also These Private forward-looking Reform the management's Act call to this may those and are assumes them. could laws. the fact like to contain guarantees other on current as forward-looking federal obligation expectations results statements of of future forward-looking securities made XXXX Securities that Actual or not law, by required revise Litigation and forward-looking except the attention provisions The update no these call the this the certain statements of in are by statements date expressed matters or and statements. of on performance. from as draw to based discussed within are as materially Verint your differ meaning implied

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

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

should our between be a verint.com substitute of include to Investor today presentation, financial and reconciliation believe measures see in our periods release in believes supplemental website measures discussed among considered results comparative information to it comparing from investors as GAAP by at to measures and operating financial informational Non-GAAP in for assessing the investors focus our and measures when is GAAP non-GAAP today's Relations included financial we a meaningful peer slide our section limitations isolation on earnings Please superior for the information not differ from, useful purposes. The measures. used those measures companies. financial as for financial of may information regarding results because The non-GAAP business is companies. but other our management uses provides those or company non-GAAP have and

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

our in by Our open differentiated driven revenue by driven Today, with strong momentum I review gross of our strong margin will were expansion, our results QX our start including results, SaaS platform. growth. a SaaS

our platform deliver automation leverage review will significant customer we and AI open and how CX I the latest Next, innovations to ROI.

gross margins, for next our Finally, cash to revenue year, benefits growth, model year. and our benefits review expected incremental of These include discuss higher the we'll upon completion I will financial SaaS and guidance our transition accelerating generation. this

Non-GAAP in came first increase gross and strong XXX close me to with our a of QX quarter bps our reviewing ahead in guidance results. Let million $XXX margin came start XX%, at revenue year-over-year.

$X.XX, margin is revenue, diluted also Non-GAAP by on XX% key gross Last growth constant a came increased approximately which of to driven EPS Our basis. is SaaS. guidance. expansion year-over-year shift currency ongoing our our our being driver, ahead at in

progress our sources. made transition complete software next to our guidance very and In reaching we XX%, are comes we revenue as milestone SaaS pleased track are year profitability year. the and good which year. last define In revenue the with summary, of our significantly where goal this recurring for up XX% We this on reiterate QX our of from QX, towards with we metric in from QX

market like significant and wins discuss I to Next, would dynamics.

from orders world's provider, such company, received the Telekom. we Deutsche QX, Auto some and leading global of During Toyota brands telecom bank as Macquarie, the

terms QX, we in new Bank than General of to new logos, we XXX win continue customers England including new and many In of more again Stores. and retailer added Casey's logos, the

As discussed cycles, very are environment, call, last on elevated earnings current deals. the in sales seeing large with we the especially

elevate While and customers decisions, need very high. their to is make longer automation CX to may take increased

deals value the to customer ability environment winning current Our on demonstrate and we open clearly customer platform our based in delivers significant are ROI.

were open Let's Xand resulting wins for X-digit wins. and take significant our all at in CX SaaS These closer our by ROI innovation our recent platform large a driven customers. three look automation

a for This The works from company. our new with its order an financial order from customer leading by relationship open $XX million with adding services TCV X-digit U.S.-based platform. applications Verint expanded first

$X and decided TCV order with This entity. for was from company large another combined company million the across Verint's adopt The to telecom second Solution customer merged in a leading Europe.

to TCV for closing The third customer the Verint order automation timing was vary can deals of by expanded million open a large CX additional In the bank. opportunities. international address platform usage of from customer. its environment, This $X this

Looking types ACV we drive year. the at our double-digit to across SaaS growth all for of for deals, expect pipeline new

them Automation incremental efficiencies globally annual Customers trillion the sustainable CX Verint's cost. customer and not and that cost ROI. can adopt the open levels million Let improving employs reduce automation AI of CX with anymore. capabilities $X are at ready designed to estimate reporting CX to XX We become an hiring me strategic Verint's increase is increase platform been help workers elevate that to and that have now CF objective. has deliver already industry a turn significant to of

translates do of AI humans technology industry and and developed platform bots. the tangible outcomes. AI fingertips Verint's of placing needs AI the the that workforce Clearly, by We at the into business this

and Where workforce self-service planning and that coming contact accuracy. the automates reduce improve all inject to to Verint's agent reduce contact search customer the compliance AI calls focusing Verint the Here automates center it parts to number interaction across some adherence. center. process examples automates automates of are to Verint's the increasing explain responses all time. operations. how into efficiency by channels knowledge all ensure increase the Verint's of

And to coaching pace assessment available more automation of pace, in which Verint next. AI and innovation, workforce. many increase are of with will automate more are capabilities even effectiveness open the today quality I increased an the explain the There launching at Verint's And the faster we CX automation platform.

make open three are that highly attributes differentiated. There the platform key Verint

First, at of open our core is platform the the data hub. engagement

is and and is unique interactions been engagement key and Open them platform. critical make continuously comprehensive helping of train For data This capture a more AI across and accurate between all brands. to we've vast set the Data consumers differentiation two data channels customers than effective. types decades, Verint models and Hub of

Second, Da Vinci other available architected the latest AI Vinci unique any or innovations of advantage of platform, and remain we future-proof also commercially, completely Verint as for Verint models at to This AI. by open vendor. takes and the flexible Verint's and opened AI such generic core design the enables is Da the latest the quickly others. GPT embracing

of includes Data Hub, the that platform our the outcomes. leverages AI fingertips Vinci tangible and business third, the placing workforce at applications many to deliver Da best-of-breed And

increase CX increases, we is platform will the our purchase benefit their can AI model. as today our from this a customers customers both monetization, expect expected customers consumption, AI financial on based CX naturally adoption and open our well consumption automation results. Over Regarding automation as to as time,

for guidance our ‘XX. to fiscal Turning year the current

and than with We revenue, EBITDA margin and expect we are strong guidance. annual expansion SaaS of growing adjusted another year faster revenue maintaining our growth

we growth, model to the adjusted discuss next we the year. financial to As transition. towards business our would benefits expected manage SaaS this to EBITDA of I continue like to year completion And our progress X% the

completion transition top the in positively impact next We two of ways. the SaaS expect to line growth year our

headwinds First, guidance, when and year. the of the in at year's revenue each look nonrecurring have approximately results year's X% from decline this last you we

Next year, SaaS revenue And be headwinds eliminated. planned our expected completion with to next the largely is year. these to we translate growth this to incremental transition, expect of

SaaS and several focused the their SaaS over the time, have the on customers at same our Verint's own transition migration. we last focused Second, on years,

focus related their customers impact helping We positive have over to our automation. should This are growth driving our a beginning on customer objectives CX revenue achieve to shift increased time. our now strategic to expansion initiatives,

our also transition the financial improve. revenue. SaaS improve year to revenue. benefiting cash and should have flow is cash a we Completing rate margins similar positive faster expect our year, a nonrecurring expect to grow to This on generation not going to to most completing And We next tailwinds grow expected the to at transition, operations, a from cash only impact these Similar look to It forward companies SaaS growth and we next to to revenue we expect our through it generation. rate. overall items year, than transition model. excluding flow

transition taken has As several to nature given you SaaS our years customer our enterprise of large base. know, the

a is XXX labor people customer including nine top XX XX the hiring care the CX brands not sustainable. of top over and Automation and of annually XX% all health costs summary, eight of are reminder, insurance companies. Fortune strategic As In a $X to X customer banks, more on including the elevate trillion of spending is base, our experience the objective top XX companies as

Verint. Automation the is addressing cost their as in innovation, the architectured the of Verint We've now closed CX Open AI significant Hub Verint brands labor of faster the differentiation for gap Talking And leader capacity pace is and by this Da platform. engagement our core opportunity the automation. a at very Vinci CX increasing with long-term AI large Data with

and the position forward to operational the expect we a our previously finally, margins and and flexibility next strong to fast we we where journey, announced strong provides program. And stock year. buyback us Our as continue of balance is look end execute financial benefits which during sheet, the

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

afternoon, Good Thanks, Dan. everyone.

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

adjustments it For includes related also rates. to exchange certain foreign metrics,

in Starting basis. of our There our came constant revenue our $XXX are SaaS year-over-year XX% diluted $X.XX, of EPS ahead a came currency approximately on conversions. guidance. at results. and also QX revenue our increased drivers million deployments customer with growth, SaaS main ahead revenue of Non-GAAP at Non-GAAP two in guidance. new

split. evenly QX, the relatively growth both In from drivers was

around come basis recurring project to we year, of XX%, two-third conversions the to to approximately up increased of our XXX prior similar years. sources our points deployments from customer coming new percentage and For one-third software the year-over-year. growth from from And revenue

Turning margins. to gross

Our gross recurring margin than XXX nonrecurring growth expansion. In basis revenue, higher increased our has point margin more XX%, revenue that am been margins than driving revenue total to report QX, year-over-year. gross a gross to I generates recurring our pleased much and nearly increase

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

guidance. to Turning

our guidance profitability maintaining pleased in we for revenue our metrics and are with QX, We year. are the and

the see we how revenue X%, for expect On plus we in non-GAAP revenue, or discuss minus every sequential me million, progressing. increases with basis, year $XXX a Let quarter.

strong in quarter. We increase expect slight finish a fourth QX the to and a QX, with larger year usual our in increase

we revenue easier Looking year, of year, growth second the year-over-year expect be compares. at the in the given half higher to the

For year. growth expect ACV, new we double-digit SaaS this

in $XX period million to through year. far over million new in our new million in brings May This prior the and SaaS was year, $XX May. SaaS So reflecting ACV the same bookings $XXX the last QX XX-month ACV growth in X%

million the of of the $XX current the fiscal additional progression than in have to $XX the through respect second and projected $XX million half we an closed year. in With year, first the more the out of million May, half

of timing the I to significantly exact does revenue financial impact would in ratable note the not like that with recognition, revenue current period. bookings

and increase full-year to We XX gross points increase around margins the year-over-year. sequentially for our basis to expect

for manage increase modestly we levels and the to QX to QX OpEx expenses the the that environment. expect from expect year of We in spend we maintain of in current rest level economic as

XX we year-over-year. bit full-year, the margins for expect And expand operating our to more a basis points than

than more increase revenue controls. and million expense of $XXX for to a strong to growth, EBITDA year margin adjusted expect We the X% through bit gross a SaaS expansion combination

at $X.XX guidance we in And EPS, increases for diluted EPS, in revenue. with the with sequential our our increase consistent of revenue sequential midpoint expect

and of quarter. the about should average below-the-line expense Net interest interest on noncontrolling quarter. other Regarding we from assumptions, expect $XXX,XXX $XXX,XXX income be per per

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

discussed Looking Dan financial of have beyond this completion earlier, as our to SaaS will our the year. benefits next positive we year, believe transition model

you these Let details some on with additional me provide benefits.

revenue. with Starting

our As we have been nonrecurring declining. shifted to has SaaS, revenue steadily

Looking at total year's this and points and of largely this year's about headwind amount guidance, revenue behind represents will an us X a be last each to growth revenue results in we nonrecurring year. year, headwind next believe

and focus shifting earlier, adoption. mentioned platform SaaS we we as benefit will to believe our addition, from our In see AI migration a to line top from Dan

I'd to behind next we to few faster office double-digit companies And respect start faster. generated With to expect in faster grow investments This over cash generation revenue a transition spin operations, this SaaS year, through cash this free we from flow highlight in related similar going rate. that expect us most To cash cash of grow acceleration with should last our the perspective, we excluding to we than to grow even expect onetime our a $XXX the be to like year. revenue. to million to year, items. line be year, next the and our space nonrecurring last will put flow, years as at

balance Turning to sheet. our

be a very to position. financial continue We in good

and flow. debt net strong remains last further cash under supported is by well X EBITDA Our XX-month our times

stock laid We as expect flow. we our to stronger close regarding margins resulting repurchased $XX spin, million our of announced we going shares. previously even the worth improvement the we date, to balance continued sheet to get program, and in since $XXX forward foundation in And million benefit from buyback have cash

came our In guidance, of ahead summary, in our by non-GAAP revenue and platform. diluted open driven EPS differentiated

guidance our expect we margin and strong and platform full-year growth the year. to current for We our for maintaining SaaS drive the expansion are

Looking planned of our generation. gross from the accelerating higher cash revenue to and ahead benefits our SaaS expect transition. further include to next we completion model These financial growth, benefit year, margins, incremental

Finally, our for to innovative customer well and deliver long-term ability Automation ROI, drive position significant sustained CX us growth.

several I'd investor relations initiatives. Before like taking highlight questions, to

with on dashboard critical the we've investors website our updated First, the SaaS IR on of end to financial transition. help the our focus metrics associated

innovations. our be updating more analysts at discuss detail. our be AI fall, platform third, conference on where of our demonstrate sell-side the an completing for in in we'll our we'll sell-side ENGAGE and innovation we'll SaaS to week Second, AI-powered Investor next showcase And hosting investors both Day our the benefits and latest analysts transition

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

Ryan our & And thank first from MacDonald Company. you. And question from Instructions] comes [Operator Needham

Your line now is open.

Q - MacDonald Ryan

wanted that comes you will where In where Can a bit maybe from? of sort in. sort the of Can a questions you in the you of the bit acceleration on sort more? my taking the I benefits transition kind help of bit Verint. investors that SaaS talk the, about here AI that's revenue about for for about really talked And how what platform of, especially double-click that around bring the And coming SaaS Thanks the just think that and completion start, growth. adoption more of talk to second driver about further color, of a will should of post transition sort the you of acceleration world all particular, Dan. appreciate Or in?

you. Thank sure. Yes,

So midpoint approaching year. the we're almost the of

discussed to about before. and time excited cloud really good the as start to a transition year it's finish talk next to we So

immediate there start are year And that and is But why see are important benefits topic. So separately, we a of of I'll talk there more with about will transition this you AI time. very a next I over it's benefits kind review completion good. then such think

incremental even base, did And couple headwind coming And year, of to an we nonrecurring just result our is based this for performs way that the rest we points same decline it exactly is if analysis the a customer that the next of will detailed growth this believe business of for the in on end. year. the

one thing. So that's

also second to now, for in the they Verint an or running thing It but in see base -- Saas, in be could these And we the shifting the cloud. is increase already their Then customers solutions customer own host cloud bearing cloud. clouds. other are part

for we X of just to these of are to us them if can Verint have a of time. spend customers benefits AI XX and conversion, clear we for platform. expand don't the expanding, time and expand on customer like. there times especially And this of and for many they cloud great if course, minimum expect shift definitely innovation they the to and from over expect value. like these the times base. the So the conversion time they are to quick it's move up to uplift opportunity uplift faster at But And in to then customers But

more marketing that and discuss models, we'll the complete Finally, kind expand. customers I'll of early, And year, operational a the more campaigns helping maybe it's as base. on force next It's so operationalizing focus we're focusing we will this to on first pricing helping completion. So -- as starting the be shift We them the ready expansion. year. consumption doing transition, to to conversion that but fully you we actually focus be later asked going on we -- the this what obviously, little do? going we're It's the we are models. sales and the

customers conversion and as that very increase this of looking from comes a to these consumption ROI. course, drives of So Automation, there's strong some and uplift are CX that expanding

to margin definitely margin what to gross revenue high revenue accelerating, to higher expand. to We gross the we we that XXs. times Now in in mid- our recurring to expect discussed many continue expect has addition

to from also to gross expansion shift to continue is discussed very acceleration margin, the in also because to the cash also one-time recurring acceleration operation, but some cash we spin which and generation, So in benefit end. improvement after more cash investments in the free nice our flow come the to are going did QX. And flow, of we some saw Grant an

So free accelerate next year. cash flow is to faster going even

think than about perspective, innovation our deal they economic from very far So from and the you And economic slowly. value. a over time. moved perpetual and large from course, customers, higher a greater customers the transition, SaaS benefit benefit big picture this we SaaS value is SaaS cloud to when Verint we in of have because faster And of

Our transition from expect the opportunity Verint. took can platform they renew same customers for the that again, to several uplift. the in XX times continue expansion more a years, consume with we but as expand result we'll AI spend and these reason, with increase the And and

we see tangible so next over we and that benefits very So year time. more expect even

Appreciate I AI talk generative center over the you these think why to got get from we've it investments the are context But AI as can good then in of potential on a maybe a Verint with obviously, and disruption thing time? about, for lot the questions color investors, broadly. there. And have can about

Sure.

industries, times, brands on labor, role we plays many engagement. a $X discussed but it's clearly, plays it we spent very big estimate role that in not And in many sustainable. trillion the AI So customer a

tell some ROI, not included. to I make AI. are more of that much sure technology. by AI had the And our customers in are just we than want estimate deals also you excited, QX as it's But really that of QX, customers it's we as So already creating they and elements in can did excited half that

They do. does that Automation. ROI. don't we're business we -- the they on means is what business is outcomes. And buy Verint's And AI want customers the focused want exclusively outcomes That's So CX want that technology to we create that transform to into what because mission that's buy our really AI. what to

from benefit to going AI. we are why So

So a first, there's reason. simple

ability the AI open me and with best and place in also I can workforce. the how that's point, it's AI And innovation we in market the But monetize the model, the let good to -- the best a market we differentiated at and its Verint's. through have about fingertips for also consumption talk today. of an start why platform We for customers good have we platform in and our first and

platform So open dimensions. open, it's and is all our in

the Open our Vinci Vinci Open have models. Da We AI own advantage to of models proprietary commercial takes and addition Da in

can GPT, specifically I So with you in we have X.X GPT customers. already production with tell

introducing have new this larger comes imports in use additional GPT, not open X.X any capabilities around Da of GPT as if cases than will GPT Vinci for generative it have and because in that create we comps and -- AI our labs, I open have believe and when visual cases to and will and more research many that we that X basically will vendors is disruptive new there's specifically every be source that part it's significantly year some We equally, leveraging completely open. X we AI Verint commercialize. source use

So that platform, architecture. core vendor is of I'm and the actually at this the Da any aware architected have Vinci not market other in the

also it's platform it's proprietary on accuracy people, core the AI frustrating engagement work, have the third-party, -- And the real And it's critical data It's it And AI whether critical. because Data data to we and why that they of models, very undifferentiated. the can is platform, We and at So all or of effectiveness the doesn't the train that's Hub. is when XX/X. useless. for know important it's train AI.

for So component. a our key help And and is training data capture completely two data over decades, our is we open. customers

the and training. again, that diversified across data sets architecture available has other at the vendor a ecosystem. hub silos data no with vast core data AI for many from customer data together bring we So is And such

it's So Da we Vinci open. that see you have can

We have time. data all is that vast and the trained

start best-of-breed customers offers to outcomes. applications completely And open you platform component, transform technology last platform a But anywhere. many and to into allow then the business need the it's to

inject is fingertips can use obviously increased AI see they AI the follow-up and productivity. they piece of if their any questions. -- so work will it into want me workflow any here that workforce, bring And the and result let the it augment this and they And use workflow. you of that of and can So to stop the increased the

just helpful. that's then And No, maybe one from more Yes. me.

You for about mentioned on drive terms when you earlier going on year? a versus into hosted another incentivizing How Verint Thanks. is thinking sort shift moves the customer to next cloud. about of X sales a potential of the are Cloud strategy, in times uplift force, customers incentivizing that

Yes.

in So and we transition large make cloud. sure the the way But and the move time, they SaaS Verint realized wanted And our the they allows SaaS of new cloud that faster because transition. every part clouds our customers, run we X SaaS customers first preferences we running introduce to designed because run. in software just cloud they have have we which innovation that they over us our of regardless to And put different that in weeks. to was than when for

the quick AI innovation vehicle is obviously, to to pace the best and cloud drive So innovation the of faster value. and increased for

Da Verint today. cloud fact, only in the Vinci is available In

and our software XX% a again, will be now big year, Vinci Da leverage kick beyond it later models of consumption And focus think also be force and sub year latest increasing year the the getting recurring pricing revenue to next us we're and that's customers position to customers behind This offer we that. for So next that off capabilities. incentive but I the will incentives. the start in of programs we're will sales and, to of course, introduced really terms in internally that

the back queue. Excellent. I hop color. I'll the appreciate in

question And Inc. TD [Operator next Cowen. comes you. And Eyal thank Instructions] Shaul from from our

Your now open. line is

Thank noises you background Apologies for some afternoon, so much. guys. Good here.

heading asking So definitely is thinking e-mails Dan SaaS that at a whatever the to you, a year, there kind your the that of And you to appear -- run alluded all? growth team is don't front territory. we're in left the chance me double-digit Day as later and it transition. seeing that revenue again, about start that I'm want to guidance, year's this the Is possibility we be next to on I Analyst any going would Alan, Grant, getting but back

next And this to guidance we see to too growth why economic of year. also, discussed that's incremental It's the soon in year. next terms year because it discuss year this environment we that

that overall are economy targeting call growth and on improves, platform, for will margin XX% the already the goal it, if or whether we based the let's ROI on driving definitely after, of next foundational increase double-digit time. we of an the Da growth, Vinci and growth be top data stated faster at this a core course, year. over more customers revenue the year but it's We're open Of at EBITDA year

So we about talk expansion. continued margin

growth we So are margins. targeting expand time, to increase revenue and at the same

if if ROI the you customers, I I more XX best opportunity our across platform. the they think to an or the adopt to example. about thing think times the a -- is want here AI for for potential mentioned think maybe I TAM, before, And growth And discuss

XX,XXX spend employees. employees, on customer million example, customer will let's So X,XXX service $XXX that year. that's X,XXX times a year take, labor, a a employs for This customer

So it's agents, and of tens a of we big that have thousands have Verint spend. agents. have customers thousands And customers of

to We spend. so the labor of are very lots the customers strong have market, in high mid end of our

ACV. customer purchased million only bots, that Verint a this price the and now specialized of they But explain $X bots for three let's pursue three is. what assume specialized So I'll

here. they're $X million spend So to committing

the bots to specialized workforce productivity. can these increase three So help

specialized XX interaction. interaction wrap better therefore, they're up, but good wrap-up. expert The one than say is let's each in an from and really at humans, seconds interaction They're doing So automating They're one not bots not humans. replacing they thing. save

bot surfacing specialized an contextual Verint second from expert knowledge. The is in

where real-time XX special at the needed assessing on that assisting that And interaction. coaching real-time bot and coaching seconds saved good XX is from So seconds. agent, the another agent is only the another third and based saves

bots. And for So workforce the five interaction just savings. average a this now duration ROI increased specialized could XX% and productivity this million minutes, $XX three less, is customer, $XX million be XX by this second that's customer if using

And going to this is mission So create the TAM, up the that's bots, was help we with what's said creating workflow. bots and this customer the that's of have customers came to one focused by the our what we motivated think what Automation more. we specialist when engagement we what's and to after focus dozens when on customers we Verint about that CX consume did we specialized to the spin, each we're have productivity element potential, and of really

superhumans, customer superhuman to into useful but the to agent either something. improve now And decide you use are do we what because to they extra that to costs the So customers that not to very them free they're good a agent or are customer the to when or want many they time, our had sell time fact they make they service a thinking make leverage salespeople there people see them can experience the customer customers interaction into with want they and now for the help something. the cut

automation a That's about opportunity. the long-term there's of benefit customers. can ways think this lot different So that how I

Or back? issue already bit have handful and have you a just sales postponed. a maybe many bills maybe been Understood. canceled? pushed know But I were all reply. for that mentioned How timing elaborated cycle. some And of that might a of maybe by elongated quick deal that elongated Thank the come transactions any you also. just has are those question it that was little really

before, that's end. deals actually more that deal million majority the interesting quarter just few deals. QX closed was in $XX story couple and process a But I we and negotiated mentioned the months. $XX a came say shortly QX. and QX, than because sign year, I ready a we signatories the an way to some over of after so signature had ratable took in we can The cognition. end. So QX, deals ended it's many were the that it's shortly quarter some that mentioned after fully pushed million In expect before long a deal, And revenue and just slip

period which at -- And Other affect really to really the all. anything. it report it it, doesn't impact So doesn't the than revenue

when get a good CFO. they longer technology customers and deal they we it create they cannot money with line. to that goal final that’s the recognize them labor spend over on gets especially see and and to are can we the eventually, taking the ROI, help So But the approvals, need

Good Thank you job. so Understood. much.

And thank comes next you. [Operator Jefferies. Instructions] question Samad And our Samana from from

Your line open. is now

taking Thanks good one Hi, questions. first Dan, for my you. maybe for afternoon. the

on for number Da Can Just us, of current time? pricing model? are you on Is that we AI. you model evolving it it the based And remind plus seats, how platform are the should a about just model? about model fee you Vinci? over Is think some the interaction thinking pricing how currently

Yes.

bots, to or an they consumption. the customers give we specialist option the the by help purchase today, So either that users by

consumption they when many because called how only increase can small, they to So by they to automation really start consumption can customers make been times have some help. go it's say that like they sure that I working. to want and

appealing to automation. their some what's to to price that's customers because customers. Other of pay cost kind just cap of user, per want they fixed a prefer So

that things, different Searching up. the agent is do up right? a have think you The them four, is only user per user. this, agent, bot. that not different that bots, Coaching special XX different over helping will it's with one when that five wrap manually each we bot for different bots. three, about or wrap can have But doing does we completely knowledge time, I envision it's work a bots replaced

they use pay consumption. pay they for then prefer have can can to bot the they'll but or that So by each they user,

they to and customers many, that business to The workflows many run workflows, delivering into help them years We our way buy, their don't right? the for buy been actually processes workflow. the have actually bots. They are buy they bots injected

certain the task, I'm -- and the shows it come and if to they're they oh, work. the call doing do work they big So the to into a is they up what doesn't when bots bot. bots purchased that to automatically actually agent built customer, Well, way going have do was the by stop say, just Everything today.

So seconds, come see It next them the call, seconds, interaction. it. XX and the to summary, bots, continue minute, five, go the takes take instead this sometimes they a can of in, if purchase summarizing approve which they XX take to they the

want sure as So it’s but works that also to why our get very consumption this because like their we flexible more AI, And that's we're they make that increase -- customers in we see own they know environment. will they confident, over time.

as get of And half. have how much acceleration do in to required back today, order I SaaS for much there? the a get guidance. back target how variance guess to into of to you revenue you on is the the sit how -- the how new year easier question guess, business follow-up the here Great. just then, full-year I I much that's visibility Grant, you book that targets, maybe much that have those comps how you in and to much hit the half understand in

of new in so Sure. SaaS, -- in the to growth rates for related new a the to related that's and the it's is talked about see others an by the expansion One Thanks for do things really the and And and the uptick couple we driven conversions. bookings past. deals, second-half right? that we've

First quarter, of terms split XX-XX a driving those in growth. SaaS we revenue between saw that

for happened the Second full-year.

related more and to SaaS from expansions -- it one-third two-third revenue overall expect the the about come of will be activity. to new and closer from the closely conversion We second-half in that

some bookings have million to and we new right, terms more the related million that and good is first-half commentary greater a see, uplift -- $XX conversions of that gave It's uptick, getting the and have visibility slightly also portion we the pipeline, Dan that a to the of some and ACV mentioned. $XX $XX outside So some in of achieve new of visibility the in that. in of we than SaaS on on million the what coverage second-half, and the I

one those really rates years and related We driven and in this up a coming acceleration up volumes that that coming the a dynamic some have year. have at transition of in customer for drives We second-half number we time, transition. the renewal that little second-half the bit in that's we there's established other year, that's our of renewals we contracts nature our and three had to then ago. growth are faster the by And second-half of of that signed SaaS program the

that what of a So see of dynamics the is drives little you'll uptick combination first-half that bit to second-half.

Great, really it. helpful. taking Appreciate Thank questions. for my you

Thanks. bet. You

you. our Peter question thank [Operator from Evercore. comes And Levine from And Instructions] next

is Your open. line now

renewal where piggy of, Maybe, back give those of read you what take of, with -- in off contracts rates longer renewals. could us sense you you Maybe come Hey, to just taking said us seeing decrease? all, question give initial conversion in, percent to the the of are or here. my you think stay thanks you will guys contracts those for rates for Just steady, back renewals those just Grant, improved, an seeing kind close? the at What are you second-half? a that

Yes. much change contracts. Renewals, those we're seeing all on not at

to additional where I need we're think related because that's the what funding. go find really Dan cycle, newer the on are sales expansion the had seeing highlighted customers and or of where more elongated deals the and

and funding environment. On well for the in renewals, it's pretty baked the

over very we've steady So on time. seen good that progression

contract this getting they're others of heard we through like terms anymore. reported in from quarter, that terms years not Now

both and deals So seeing you're typically one-year is existing more new contracts from three-year seeing that maybe deals? what you're versus where it's

we that value customers, additional bit that with the from get to And and length highlighted starting we've has seen term a we've -- It's part opportunities it's many to three renewal is the really not little understanding then anything, standard tick the in messaging the have actually in cases, of year. our If that that seen platform. are longer. we there, Dan the for up slight deals renew so And have What a typically new a a ability three of Verint's mix. out years.

them So uplift locking without platform a they pricing benefits of our little get doing but more that have in a as of to in lot ability gives bit from much innovation so.

Perfect.

Sorry, ahead. Dan, go

see with realize application. We natural one going -- do can leverage open, that because they in and want is they and system. don't -- -- an CRM regard, way, to probably hand, issue. platform I locking is to they that don't whatever their on know actually that can we're But renew they any want said, as can Grant Telephony, longer buy as what's platform trend in don't because we in the they not once customer them happen. the see any I the What I have They

for that the really of for lock have and And a years. at they to the they three years, the inflation, same if guarantee want customers time, three price price because price lock we see

no impact from now. net-net, So yes, Verint on

one. a I I of just a on quick last macro think put one it kind but just And don't update. call, the

kind at your look where assuming today. it you what is worse, are full-year the you assumptions you in? environment If Are guide, baking stays gets of

you. think Just assumptions full-year about around your give impacting deals? you us a sense what of are ability Thank your guide, to close the the background

There's for make improvement reason assumption. economic Yes. that No in to assumption us no environment. of

shift good in said, addition, margin have But this gross is HX, because expect that ACV, in HX, assumptions as XX to recurring and just improvement we same. year deals, is SaaS we we So XX then shift growth, talked about the throughout continue in year. that Grant the the through we [Indiscernible] assume the we growth, we'll -- pipeline the which new we continue have margin higher the coverage. and We expansion, have May will margin. And with we gross to the the revenue to gross XX

OpEx level, environment. want in QX. sequential And very We XXX we we, this planned cautious in our again, increases be to had small because in

we the And adopt. is margin focus and we're doing to year, helping while growth. focus complete over That's and that's want this XX% net-net on that, SaaS the million transition $XXX X% EBITDA So really here. customers our EBITDA

those in year. things three main company the that this are So initiatives the are strategic driving

color. for the Great. you Thank

like would now over And you. the closing call to I no further I turn remarks. for thank And Frankel questions. back am showing Matthew to

today. you and thank Thanks, everyone Justin, us joining for to

we As reach always, with to look any Take to night. to questions, to care. good please out again me Have you and forward feel a soon. free speaking

you This concludes today's Thank for conference participating. call.

disconnect. now may You