Verint Systems Inc. (NASDAQ: VRNT) stock lost over 12.8% on 1st April, 2020 (as of 10:58 am GMT-4 ; Source: Google finance) as the company posted lower than expected results for the fourth quarter of FY 20. The company’s net income fell to $4.9 million in the fourth-quarter, from $27.3 million, in the year-ago period. In Q4, Verint reached a milestone with the total assets exceeding $3 billion. The company now has more than $550 million of cash and short-term investments and less than $450 million of net debt. Overall, the net debt to adjusted EBITDA ratio is approximately 1.4 times, excluding the $200 million of proceeds the company anticipate to receive from the first tranche of the Apax investment once closed.
VRNT in the fourth quarter of FY 20 has reported the adjusted earnings per share of $1.11, missing the analysts’ estimates for the adjusted earnings per share of $1.16, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $349.46 million in the fourth quarter of FY 20, missing the analysts’ estimates for revenue by 6.42%.
Moreover, in Customer Engagement segment during Q4, the company has received many large cloud orders consistent with this trend, including an $18 million cloud renewal from a leading technology company and $8 million cloud order from a new healthcare customer, where the company displaced an on-premise solution from another vendor, a $5 million order from an existing insurance customer that is migrating from Verint’s on-premises solution to Verint’s cloud solution, and multiple $3 million plus orders from customers that are expanding their cloud deployments. Customer Engagement revenue last year rose 8.7% on a non-GAAP constant-currency basis, compared to the double-digit growth the company had expected without delay of the large project.
In FY 20, non-GAAP cloud revenue grew 46%, SaaS ACV grew by 70% and the new perpetual license equivalent bookings, achieved 7% growth compared to the 10% the company had expected with the large project. The percentage of software revenue that is recurring increased approximately 400 basis points to around 75% in FY 20.
In Cyber Intelligence segment, the company had ended the year strong with multiple large orders in Q4, including an order for approximately $15 million, an order for $10 million, and five orders for approximately $5 million dollars each. The company believe these large orders reflect ongoing demand for data mining solutions and strong competitive position with a global set of customers across more than 100 countries around the world.