© Shutterstock Verint Systems (VRNT) sinks 18% on weak results, guidance; Earns 2 downgrades
Verint Systems (NASDAQ:) shares fell more than 17% in early Thursday trade after the company offered a weaker-than-expected full-year sales outlook.
Adjusted came in at $0.48 on revenue of $210.4 million, which compares to the consensus for EPS of $0.57 on revenue of $225.1 million. The company’s adjusted gross margin was 69.5%, slightly lower than the estimated margin of 69.8%.
“In Q2, SaaS ARR increased 17% year-over-year driven by solid New SaaS ACV bookings combined with strong SaaS renewals and we remain on track to complete our perpetual to SaaS transition this year,” said Dan Bodner, Verint CEO.
Verint sees FY2024 revenue of $910 million, lower than the consensus of $934.58 million.
In the aftermath of the Q2 results, analysts at Oppenheimer and Evercore ISI downgraded their rating on VRNT stock.
“While we continue to view Verint as an interesting value idea for those looking for a contact center derivative, our thesis unfortunately hasn’t played out. With shares now trading below 2x sales on CY24 numbers, valuation would appear to be washed out but given the lack of N/T visibility we do not see any catalyst on the horizon that would act as a potential a re-rate,” Evercore ISI analysts wrote in a note.
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