Verint Systems Reports Revenue Decline and Net Loss for Quarter Ended April 30, 2025

Verint Systems Inc. reported a decline in financial performance for the three months ended April 30, 2025, with total revenue of $208.1 million, down from $221.3 million in the same period last year. The decrease was primarily driven by a 32% drop in nonrecurring perpetual revenue, which fell to $17.0 million, and a 24% decline in nonrecurring professional services and other revenue, which decreased to $17.5 million. In contrast, recurring revenue remained relatively stable, increasing slightly to $173.6 million from $173.5 million, with bundled SaaS revenue rising by 24% to $81.3 million, while unbundled SaaS revenue decreased by 12% to $66.2 million.

The company's operating income also saw a significant decline, dropping to $5.1 million from $24.4 million year-over-year. This decline was attributed to a decrease in gross profit, which fell from $157.5 million to $138.9 million, alongside a slight increase in operating expenses. Net loss attributable to Verint Systems Inc. common shares was reported at $2.4 million, translating to a diluted net loss per share of $0.04, compared to a net income of $10.0 million and earnings per share of $0.16 in the prior year.

In terms of strategic developments, Verint did not complete any business combinations during the reported quarter. However, the company continues to focus on enhancing its product offerings, particularly in AI-powered customer experience automation. As of April 30, 2025, Verint's workforce comprised approximately 3,700 employees, consistent with the previous year, indicating stability in its operational capacity.

Geographically, revenue distribution showed a shift, with the Americas contributing approximately 69% of total revenue, down from 73% in the prior year. The EMEA region accounted for 21%, up from 18%, while the APAC region remained stable at 10%. The company noted that macroeconomic conditions, including inflation and geopolitical tensions, have influenced customer spending and may continue to impact future performance.

Looking ahead, Verint anticipates ongoing challenges due to market conditions but remains committed to its cloud-first strategy and the expansion of its AI capabilities. The company is focused on maintaining its subscription revenue growth and adapting to changing customer needs, particularly in the context of increasing demand for AI-driven solutions.