...We believe the shift in customer spending toward cloud-based solutions (a higher-margin business) supports performance improvement. As a result, we think Verint Systems Inc.'s earnings and cash flow visibility will strengthen in 2024 as it shifts its business, albeit on the back of modestly higher costs last year. During the first nine months of fiscal 2024 (ending January), Verint increased revenue from new cloud deployments and higher bundled software- as-a-service (SaaS) sales. This was largely offset by declines in support revenues, perpetual licenses revenue, and unbundled SaaS revenue. While we expect significant growth in unbundled SaaS in last quarter of 2024 due to timing of contract renewals, the headwinds from lower perpetual licenses revenue should be eliminated in the next year with the completion of its SaaS transition, as well as continued customer growth and conversions to cloud-based solutions. Thus, we expect overall solid revenue growth in the next two years, while the...
