Verint Systems Inc (VRNT) announced better-than-expected fiscal first quarter results. The company sells software and hardware products for customer engagement management, security, surveillance, and business intelligence.
Non-GAAP revenue generated in the quarter was $202 million, which grew 7% from the year-ago period and beat revenue expectations of $196.5 million.
Adjusted earnings came in at $0.44 per share, beating the consensus estimates of $0.35 per share and increased 10% year-over-year. Cloud revenue was up over 35% year-over-year.
Verint CEO Dan Bodner said, “We believe our open cloud platform is a true differentiator that helps brands connect work, data and experiences across the enterprise to support their digital transformation strategies.”
Bodner added, “Recent large multi-year cloud wins driven by our cloud platform include orders (total contract value) worth $17 million (healthcare), $10 million (financial services), $4 million (business services), $4 million (logistics) and $3 million (insurance).” (See Verint stock analysis on TipRanks)
For fiscal year 2022, the company expects revenues to come in the range of $860 million (+/- 2%). The consensus estimate sits at $861.68 million. Non-GAAP net earnings per share are expected at $2.23 versus the consensus estimate of $2.19 per share.
Following the fiscal Q1 earnings release, Oppenheimer analyst Timothy Horan reiterated a Buy rating on the stock and a price target of $60. This implies 29.7% upside potential from current levels.
Horan said, “VRNT reported a solid quarter driven by demand for cloud and is now a pure play AI driven customer engagement company. We think it can continue to sign large cloud deals across contact center and other verticals, non-contact center wins provide upside opportunity and represent only 20% of total revenue.”
Consensus among analysts is a Strong Buy based on 8 unanimous Buys. The VRNT average analyst price target of $62.38 implies 34.9% upside potential from the current levels. Shares have gained 106.4% over the past year.
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