Verint Systems Inc. (NASDAQ:VRNT) Q3 2018 Earnings Conference Call Transcript

Dec 06, 2018 • 08:30 am ET


Verint Systems Inc. (NASDAQ:VRNT) Q3 2018 Earnings Conference Call Transcript


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Good morning, ladies and gentlemen, and welcome to Verint Systems Third Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call maybe recorded.

I would now like to introduce your host for today's conference Mr. Alan Roden, SVP of Corporate Development, you may began.

Alan Roden

Thank you, operator and good morning everyone, and thank you for joining our conference call today. I'm here with Dan Bodner, Verint's CEO; and Doug Robinson, Verint's CFO.

Prior to this call, we issued a press release that includes financial information for our third fiscal quarter ended October 31, 2018. Our Form 10-Q will be filed shortly. Each of our SEC filings and earnings press releases is available under the IR link on our website at and also on the SEC website.

(Forward-Looking Cautionary Statements)

The financial measures discussed today include non-GAAP measures as we believe investors focus on those measures in comparing results between periods and among our peer companies. Our financial outlook is provided only on a non-GAAP basis. Please see today's earnings release in the IR section of our website at for a reconciliation of non-GAAP financial measures to GAAP measures.

Non-GAAP financial information should not be considered in isolation from, as a substitute or superior to GAAP financial information but is included because management believes it provides meaningful supplemental information regarding our operating results when assessing our business and is useful to investors for informational and comparative purposes. The non-GAAP financial measures the company uses have limitations and may be differ from those used by other companies.

Now I'd like to turn the call over to Dan. Dan?

Dan Bodner

Thank you, Alan. Good morning, everyone, and thank you for joining us to review our third quarter results. In Q3, we continued our positive momentum and delivered high single digit revenue growth, strong margin expansion and double digit earning growth. We are very pleased with our Q3 results which reflect our strategy to accelerate our business through innovation, with the current focus on automation. We're also pleased to report strong results for the first nine months, including double-digit earning growth, as well as more than 30% growth in cash from operations. This strong results improved our linearity across the quarters this year and establish a solid foundation for initial guidance for next year.

We believe that behind our positive momentum is demand for Actionable Intelligence solutions, that help customers capture and analyze massive amounts of data and derive insights that are actionable. Our market leadership and competitive differentiation are supported by innovative automation technologies across many Actionable Intelligence use cases and I will provide examples later in the call.

Now I'd like to review our third quarter results by segment. Starting with Customer Engagement, our non-GAAP revenue increased 9% year-over-year to $201 million. As we've discussed from our past calls, our Customer Engagement strategy is resonating well in