Verint Systems (VRNT) 4 Sep 24 2025 Q2 Earnings call transcript
2min read Verint's Q2 2025 earnings call painted a picture of a company on the brink of significant growth and innovation, with a strategic focus on artificial intelligence (AI) as a cornerstone of its growth strategy. The call, led by CEO Dan Bodner, CFO Grant Highlander, and Investor Relations and Corporate Development Director Matthew Frankel, highlighted a number of key themes and trends that underscore Verint's commitment to delivering tangible AI business outcomes and driving growth in the contact center market.
Strong AI Momentum and Business Outcomes
Verint reported strong AI momentum in Q2, with new AI bookings increasing by over 40% year-over-year and bundled SaaS revenue driven by AI growing by 15%. This growth is expected to continue, with the company anticipating strong AI bookings and bundled SaaS revenue growth in the second half of the year. The company's ability to deliver measurable AI business outcomes has been a significant differentiator, with many customers reporting strong outcomes from AI-powered bots. For instance, a leading bank was able to create $10 million in agent capacity by containing 80% of its interactions and self-service, while a top BPO avoided $6 million of self-service fraud attempts in a single month. These outcomes demonstrate the potential for AI to significantly impact labor costs and elevate customer experience (CX) in the contact center industry.
Financial Performance and Outlook
Verint's financial performance was solid, with Q2 revenue coming in at $210 million, within guidance. For the full year, the company is maintaining its guidance of 5% growth adjusted for divestiture. The company expects another year of margin expansion and 10% EBITDA growth for the full year, driven by the significant AI opportunity in the contact center market. The CX industry is estimated to spend about $2 trillion annually on labor costs, and brands are seeking AI-powered bots that can deliver tangible business outcomes. Verint's ability to address this large total addressable market (TAM) with a differentiated open platform is a key strength.
Competitive Advantage and Differentiators
Verint's competitive advantage lies in its ability to deliver tangible AI business outcomes quickly and effectively into existing customer ecosystems. The company's hybrid cloud design and AI consumption models enable customers to deploy AI without disruptive changes to their existing infrastructure. This is a significant differentiator, as competitors generally require more time and resources to demonstrate strong AI business outcomes. Verint's focus on delivering strong and faster outcomes, combined with its ability to showcase tangible outcomes for some of the world's leading brands, is resonating well with its customer base and new logos.
Looking Ahead
Verint's Q2 earnings call provided a glimpse into a company that is well-positioned for contact center AI leadership. The company's strong AI momentum, differentiated business outcomes, and strategic focus on delivering value to customers are key drivers of its growth prospects. With a clear vision and a solid execution strategy, Verint is poised to capitalize on the significant opportunities in the contact center AI market and create value for its shareholders and customers alike. As the company continues to innovate and deliver on its promise, it will undoubtedly remain a key player in the evolving AI landscape.