Verint Systems Inc. (NASDAQ:VRNT) Raises Cloud Revenue Guidance

Verint Systems Inc. (NASDAQ:VRNT) stock fell 5.76% (As on June 8, 12:40:28 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the first quarter of FY 22 and raises cloud revenue guidance. Cloud revenue increased 38% year-over-year. 58% of New PLE bookings came from SaaS (up from 51% in Q1 of the prior year). Operating cash flow is up 43% year-over-year to $54 million. The first quarter showed strength across all key metrics including New Perpetual License Equivalent (PLE) Bookings growth and mix, with the bookings continuing to shift to SaaS.

VRNT in the first quarter of FY 22 has reported the adjusted earnings per share of 52 cents, beating the analysts’ estimates for the adjusted earnings per share of 48 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 8.6 percent to $219.2 million in the first quarter of FY 22, beating the analysts’ estimates for revenue of $215.2 million.

For fiscal 2023, the company expects revenue is expected to be $940 million +/- 2%, reflecting 7% year-over-year growth, Cloud Revenue Growth is expected to be in the range 32% to 34% year-over-year and Diluted EPS is expected to be $2.50 at the midpoint of the revenue guidance, reflecting 10% year-over-year growth.

The non-GAAP outlook for the three months ending July 31, 2022, the revenue adjustments are expected to be between approximately $0 million and $1 million, and $2 million and $3 million, for the three months ending July 31, 2022 and year ending January 31, 2023, respectively. Stock-based compensation expenses are expected to be between approximately $25 million and $29 million, and $81 million and $87 million, for the three months ending July 31, 2022 and year ending January 31, 2023, respectively, assuming market prices for the common stock approximately consistent with current levels. Costs associated with modifying the workplace following the spin-off of our former cyber intelligence business and in response to the decision to move to a hybrid work environment, including assumed lease terminations and abandonments, IT infrastructure costs, and other charges are expected to be between approximately $7 million and $9 million, and $21 million and $25 million, for the three months ending July 31, 2022 and year ending January 31, 2023, respectively.

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