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Verint (VRNT) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
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Verint Systems (VRNT - Free Report) reported first-quarter fiscal 2020 adjusted earnings of 73 cents per share, which increased 38% year over year and surpassed the Zacks Consensus Estimate of 62 cents.
GAAP revenues increased 9% year over year to $315.3 million. Non-GAAP revenues of $324.2 million increased 11% year over year and beat the Zacks Consensus Estimate of $317 million.
Verint Systems Inc. Price, Consensus and EPS Surprise
Product revenues (33.1% of total GAAP revenues) declined 1.5% year over year to $104.2 million. Service and support revenues (66.9% of total GAAP revenues) increased 15.1% year over year to $211 million.
Segment wise, non-GAAP Customer Engagement revenues (68.5% of total non-GAAP revenues) increased 14.1% year over year to $215.9 million.
Non-GAAP Customer Engagement cloud revenues increased 72.2% year over year to $55.7 million. Additionally, non-GAAP Customer Engagement recurring revenues increased 22.8% year over year to $132 million. Non-GAAP Customer Engagement non-recurring revenues increased 2.6% year over year to $83.7million.
Notably Verint won new orders from existing customers, including an order from a leading telecommunications company (worth more than $10 million). Additionally, the company was successful in attracting new customers.
Moreover, Verint received cloud orders such as a $9 million order from a technology company, a $3 million order from a bank and a $2 million order from a healthcare company.
Non-GAAP Cyber Intelligence revenues (34.3% of total non-GAAP revenues) grew 5.3% year over year to $108.3 million. In the reported quarter, the company won orders worth approximately $55 million owing to continued demand for its products.
Operating Details
Non-GAAP gross profit increased 17.2% year over year to $218.5 million. Gross margin expanded 350 basis points (bps) to 67.4% owing to growth at both Customer Engagement and Cyber Intelligence segments.
GAAP research and development expenses increased 9.6% year over year to $57.2 million. Also, GAAP selling, general and administrative expenses increased 13.2% year over year to $121.7 million. Total GAAP operating expenses increased 11.5% year over year to $186.6 million.
Adjusted EBITDA increased 29.1% year over year to $70 million. Adjusted EBIDTA margin expanded 300 bps to 21.6%.
Non-GAAP operating income increased 35% year over year to $62.3 million and operating margin expanded 340 bps to 19.2%.
Balance Sheet and Cash Flow
Verint had $412 million of cash and cash equivalents as of Apr 30, 2019 compared with $369.9 million in the prior quarter.
Cash flow from operations was $93.1 million compared with $60.2 million in the year-ago period.
Guidance
Fiscal 2020
Non-GAAP revenue guidance has been revised to $1.375 billion (+/-2%) from $1.37 billion guided earlier, indicating year-over-year growth of 10.5%. Additionally, non-GAAP earnings per share are expected to be $3.65 compared with the earlier projection of $3.60, indicating year-over-year growth of 14%.
Non-GAAP Customer Engagement revenues are anticipated to grow 11% year over year. Non-GAAP Cyber Intelligence revenues are expected to grow 10% year over year.
Fiscal 2022
Non-GAAP revenues are expected to be $1.65 billion, indicating CAGR of 10%. Additionally, non-GAAP earnings are anticipated to be $4.70, indicating CAGR of 14%.
Long-term earnings growth rate for Microsoft, Cadence and ServiceNow is pegged at 12.4%, 11% and 28% respectively.
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Verint (VRNT) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Verint Systems (VRNT - Free Report) reported first-quarter fiscal 2020 adjusted earnings of 73 cents per share, which increased 38% year over year and surpassed the Zacks Consensus Estimate of 62 cents.
GAAP revenues increased 9% year over year to $315.3 million. Non-GAAP revenues of $324.2 million increased 11% year over year and beat the Zacks Consensus Estimate of $317 million.
Verint Systems Inc. Price, Consensus and EPS Surprise
Verint Systems Inc. price-consensus-eps-surprise-chart | Verint Systems Inc. Quote
Quarter Details
Product revenues (33.1% of total GAAP revenues) declined 1.5% year over year to $104.2 million. Service and support revenues (66.9% of total GAAP revenues) increased 15.1% year over year to $211 million.
Segment wise, non-GAAP Customer Engagement revenues (68.5% of total non-GAAP revenues) increased 14.1% year over year to $215.9 million.
Non-GAAP Customer Engagement cloud revenues increased 72.2% year over year to $55.7 million. Additionally, non-GAAP Customer Engagement recurring revenues increased 22.8% year over year to $132 million. Non-GAAP Customer Engagement non-recurring revenues increased 2.6% year over year to $83.7million.
Notably Verint won new orders from existing customers, including an order from a leading telecommunications company (worth more than $10 million). Additionally, the company was successful in attracting new customers.
Moreover, Verint received cloud orders such as a $9 million order from a technology company, a $3 million order from a bank and a $2 million order from a healthcare company.
Non-GAAP Cyber Intelligence revenues (34.3% of total non-GAAP revenues) grew 5.3% year over year to $108.3 million. In the reported quarter, the company won orders worth approximately $55 million owing to continued demand for its products.
Operating Details
Non-GAAP gross profit increased 17.2% year over year to $218.5 million. Gross margin expanded 350 basis points (bps) to 67.4% owing to growth at both Customer Engagement and Cyber Intelligence segments.
GAAP research and development expenses increased 9.6% year over year to $57.2 million. Also, GAAP selling, general and administrative expenses increased 13.2% year over year to $121.7 million. Total GAAP operating expenses increased 11.5% year over year to $186.6 million.
Adjusted EBITDA increased 29.1% year over year to $70 million. Adjusted EBIDTA margin expanded 300 bps to 21.6%.
Non-GAAP operating income increased 35% year over year to $62.3 million and operating margin expanded 340 bps to 19.2%.
Balance Sheet and Cash Flow
Verint had $412 million of cash and cash equivalents as of Apr 30, 2019 compared with $369.9 million in the prior quarter.
Cash flow from operations was $93.1 million compared with $60.2 million in the year-ago period.
Guidance
Fiscal 2020
Non-GAAP revenue guidance has been revised to $1.375 billion (+/-2%) from $1.37 billion guided earlier, indicating year-over-year growth of 10.5%. Additionally, non-GAAP earnings per share are expected to be $3.65 compared with the earlier projection of $3.60, indicating year-over-year growth of 14%.
Non-GAAP Customer Engagement revenues are anticipated to grow 11% year over year. Non-GAAP Cyber Intelligence revenues are expected to grow 10% year over year.
Fiscal 2022
Non-GAAP revenues are expected to be $1.65 billion, indicating CAGR of 10%. Additionally, non-GAAP earnings are anticipated to be $4.70, indicating CAGR of 14%.
Zacks Rank & Stocks to Consider
Currently, Verint carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Computer Technology sector include Microsoft Corporation (MSFT - Free Report) , Cadence Design Systems, Inc. (CDNS - Free Report) and ServiceNow, Inc. (NOW - Free Report) . All the three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for Microsoft, Cadence and ServiceNow is pegged at 12.4%, 11% and 28% respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>