Verint Stock Soars On AI-Fueled Q3 Beat: Retail Sentiment Brightens

Published : Dec 05, 2024, 10:32 PM IST
Verint Stock Soars On AI-Fueled Q3 Beat: Retail Sentiment Brightens

Synopsis

Verint highlighted the momentum in AI innovation and customers reporting strong, tangible AI business outcomes with its open platform.

Verint Systems, Inc. ($VRNT), a customer experience automation company, announced fiscal year 2025 third-quarter results that exceeded expectations, thanks to strong artificial intelligence (AI) momentum. The company maintained its full-year guidance, sending its shares sharply higher on Thursday.

The Melville, New York-based company reported third-quarter non-GAAP earnings per share (EPS) of $0.54, down from the $0.65 earned a year ago but exceeding the consensus estimate of $0.43.

Revenue climbed 3% year-over-year to $224 million, above the average analysts’ estimate of $210.13 million. The revenue growth was 5% on a non-GAAP basis, as adjusted for the divestiture of the quality managed services business.

Dan Bodner, Verint CEO, said, “We are pleased with our momentum in AI innovation and in customers reporting strong, tangible AI business outcomes with the Verint open platform.”

“In Q3, we saw strong demand for AI business outcomes and our bundled SaaS revenue growth accelerated to 19% year-over-year.”

Verint said its new software-as-a-service (SaaS) average contract value (ACV) bookings for new deals, excluding cloud conversions, increased 37% YoY in the third quarter.

Gross margins expanded 70 basis points YoY due to the mix shift toward recurring revenue.

The company maintained its 2025 revenue guidance of $933 million, +/- 2 percentage points and EPS outlook of $2.90. Analysts, on average, estimate the numbers to be $933.26 and $2.91, respectively.

Verint also announced its latest AI-powered bot on the Veint platform on Thursday. 

CFO Grant Highlander said the company will showcase its AI differentiation at the upcoming investor day on January 14. 

“Investors will hear directly from our customers on AI business outcomes and we will review our financial model, including FYE26 guidance and our long-term model for monetizing AI,” he added.

Stocktwits users are ‘extremely bullish’ (97/100) toward the stock, with sentiment improving from neutral a day ago. Message volume continues to be ‘extremely high.’

At last check, Verint shares climbed 24.53% to $32.34. The stock has lost about 4% this year but has traded in the $21-$38 range.

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