Verint Systems adds 10% after earnings, upside credited to ‘rising adoption of AI and Bots’ By Investing.com

© Shutterstock Verint Systems surges 10% on Q3 beat & strong guidance

(Updated – December 7, 2023 6:40 AM EST)

Verint Systems (NASDAQ:) shares jumped more than 10% pre-market after the company reported strong Q3 results.

EPS of $0.65 came in better than the consensus estimate of $0.59. Revenue fell 3% year-over-year to $219 million, beating the consensus estimate of $215.9M. SaaS ARR increased 11% year-over-year driven by solid bookings and renewals.

“We are pleased to have overachieved our revenue and non-GAAP diluted EPS expectations in Q3 and believe we are on track to complete the year with strong 11% revenue growth in Q4. Our 12 month SaaS pipeline at the end of Q3 was up more than 20% year-over-year and we are pleased with the increase in customer AI adoption with the majority of our Q3 new SaaS ACV bookings including Verint AI-Powered Bots,” said CEO Dan Bodner.

For fiscal 2024, the company expects EPS of $2.65, compared to the consensus estimate of $2.62, and revenue of $910M (+/- 2%), compared to the consensus estimate of $907.31M.

“VRNT posted consensus-beating results, highlighted by 11% SaaS ARR growth, reflecting solid bookings and renewals, and by a 20% increase in SaaS pipeline,” analysts at TD Cowen said in a note.

Analysts at Oppenheimer highlighted the strong demand for AI bots. Still, they want “more confidence and tangible evidence of a durable growth inflection before moving to a more constructive stance.”

Additional reporting by Senad Karaahmetovic