Analysts at Wedbush hailed Verint Systems Inc's (VRNT) first-quarter results for strong top and bottom line beats with revenue coming in at $216.6 million, compared to the Street’s $216.1 estimate.
Most pertinently, the Melville, New York-based analytics company’s software as a service (SaaS) 1Q revenue for fiscal year 2024 jumped 24% year-on-year as it continued to round out its SaaS transition.
“A solid step in the right direction; not Jokic level, but good enough,” said Wedbush analysts.
Serbian basketball player and Denver Nuggets star Nikola Jokić made history this week as the first-ever player to record a 30-20-10 stat line in the NBA Finals.
“We maintain our Outperform rating and our $45 price target,” added the analysts.
Verint shares traded around $37 on the Nasdaq in afternoon trade.
Wedbush noted that Verint’s earnings per share (EPS) came in at $0.53, compared to the Street’s $0.47 estimate as the company successfully navigated sales cycle elongation due to "strength in the CX platform."
“While recurring revenues came in at $166.4 million versus the Street’s $172 million during the quarter, recurring software revenue came in at 87% of the company’s total revenue up 400 bps y/y as the company remains on track towards its FY25 goal of 90% software revenue mix,” noted the analysts.
“While customer decision making for large deals slowed during the quarter, the company witnessed several large deals wins and an expanded pipeline as the company continues to deliver CX automation.”
Interestingly, Verint said "half of the deals" included some elements of artificial intelligence (AI) as it transforms AI technology into business outcomes while commercializing new use cases.
Verint sells software and hardware products for customer engagement management, security, surveillance, and business intelligence. Their products are designed to help clients with data analysis, targeted at specifically large data sets.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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