Key Stats for Verint Systems Stock
- Today’s Price Change: 19%
- Current Share Price: $22
- 52-Week High: $38
- VRNT Stock Price Target: $27
What Happened?
Verint Systems (VRNT) stock jumped 19% after the customer experience automation company delivered stronger-than-expected first-quarter revenue and showcased impressive momentum in its artificial intelligence business.
It posted Q1 revenue of $208.1 million, beating analyst estimates of $194.2 million by 7.15%. Moreover, adjusted earnings per share of $0.29 surpassed the consensus forecast of $0.23 by almost 25%.
The standout metric was Verint’s AI-related annual recurring revenue (ARR), which surged 24.1% year-over-year to $354 million, now representing nearly 50% of the company’s total ARR. Overall subscription ARR increased 6.3% to $710 million, demonstrating acceleration from the previous quarters.
CEO Dan Bodner highlighted two key differentiators driving the company’s AI momentum: “First, our ability to transform the latest AI technology into strong, tangible AI business outcomes, delivering customer value better than any other CX vendor. And second, our ability to deploy AI in a hybrid cloud model.”
The company maintained its outlook for 8% annual recurring revenue (ARR) growth and 12% free cash flow growth for the full year.
See Verint’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us
Investors are focused on Verint’s accelerating AI business and strong revenue performance. The 24% growth in AI-related ARR demonstrates that Verint is successfully monetizing the AI trend in customer experience automation, with AI now representing half of its subscription revenue base.
The revenue beat suggests strong demand for Verint’s AI-powered customer engagement solutions, as enterprises invest in automation to improve efficiency and reduce costs.
The company’s hybrid cloud deployment model enables customers to integrate AI solutions seamlessly, without disrupting their existing infrastructure, thereby providing a competitive advantage in enterprise sales cycles.
With over 90 Fortune 500 companies now utilizing Verint’s AI-powered bots and a pipeline that has grown by more than 30% year-over-year, it appears well-positioned to continue capitalizing on the growing demand for CX automation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
