Verint Systems Inc. reported a slight decline in revenue for the fiscal year ending January 31, 2025, totaling $909.2 million, down from $910.4 million in the previous year. The decrease was primarily attributed to an $18.7 million drop in nonrecurring professional services revenue, which was partially offset by an increase in recurring revenue, particularly from its subscription services. Operating income rose significantly to $106.4 million, compared to $68.2 million in the prior year, driven by a reduction in operating expenses and an increase in gross profit. Net income attributable to common shareholders was $65.0 million, or $1.04 per diluted share, a notable increase from $17.8 million, or $0.28 per diluted share, in the previous fiscal year.
The company experienced a shift in its revenue mix, with approximately 80% of total revenue derived from subscription services, reflecting a strategic focus on its AI-powered Open Platform. This platform, launched in 2023, aims to enhance customer experience automation across various touchpoints. Verint's customer base includes over 80 of the Fortune 100 companies, and the company continues to expand its geographic footprint, with 72% of revenue coming from the Americas, 18% from EMEA, and 10% from the Asia-Pacific region.
In terms of operational metrics, Verint's employee count increased to approximately 3,800, up from 3,700 the previous year. The company has also made significant investments in research and development, with R&D expenses rising to $149.3 million, a 12% increase from the prior year. This investment is aimed at enhancing its product offerings and maintaining competitive differentiation in a rapidly evolving market characterized by technological advancements, particularly in artificial intelligence.
Verint's outlook remains cautiously optimistic, with management highlighting the ongoing demand for AI-driven solutions in customer engagement. However, the company acknowledges potential risks stemming from macroeconomic conditions, including inflation and geopolitical tensions, which could impact customer spending and operational costs. The company is also focused on managing its debt, with total outstanding debt reported at approximately $412.8 million as of January 31, 2025, and plans to refinance its convertible senior notes due in 2026.