Verint Systems Inc. is a technology company specializing in customer experience (CX) automation. It provides AI-driven solutions for businesses, including chatbots and other tools to enhance customer interactions. Following its fourth-quarter earnings report for the fiscal year ended January 31, 2025, Verint is experiencing growth. The company’s annual recurring revenue (ARR) reached $712 million, a 5% increase from the previous year, beating the guidance of 4%.

Verint reported record SaaS annual contract value (ACV) bookings of $32 million in Q4, representing a 30% increase year-over-year. This continues a strong performance streak, with quarterly SaaS ACV bookings growing over the past year. The company achieved a cash contribution of $228 million, an increase of 2% year-over-year, and cash generation was reported at $913 million, exceeding prior guidance by $8 million.

For the current fiscal year, Verint has raised its ARR outlook from $760 million to $768 million, which reflects an 8% growth forecast. Bundled SaaS ARR showed substantial growth, increasing by 16.5% to $328 million. In contrast, revenue for the fourth quarter came in at $254 million, slightly below the guidance of $277 million due to fewer than expected unbundled SaaS deals, which did not materialize during the quarter. Nevertheless, all other revenue streams met expectations.

Verint’s adjustments for the impact of ASC 606 resulted in affected revenue, but the company emphasized that ARR continues to present a better view of its ongoing business performance. The average diluted earnings per share (EPS) on a non-GAAP basis stood at $0.99 for Q4, while cash contribution for the year ended January 31, 2025, is anticipated to be around $246 million at the midpoint of cash generation guidance.

Moving forward, Verint anticipates ARR growth to accelerate to 6% in the first quarter of the current fiscal year. For the full year, the company guided revenue at approximately $960 million, with a wider band of plus or minus 3%, taking into account fluctuating unbundled SaaS sales. Gross margins are projected at around 73%, accompanied by continued operating margin expansion.

Verint’s strategic shift toward a hybrid cloud model continues to resonate with customers, allowing smooth integration of AI applications without major disruptions. The company maintains a strong balance sheet, with net debt remaining under 1x its last 12 months EBITDA, enabling potential investments including stock buybacks.

In terms of guidance for fiscal year 2026, Verint has outlined subscription ARR targets, cash generation estimates, and revenue projections, adjusted for the ongoing dynamic customer contracts. Through this approach, Verint continues to focus on delivering consistent growth metrics through its AI-driven customer experience automation solutions.