Verint Records a 30 Percent Increase in Cloud Revenue, Defying the Economic Downturn

Zac Wang
Senior Reporter

The company said customers are turning to automation to save money on wages

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Verint Records a 30 Percent Increase in Cloud Revenue, Defying the Economic Downturn

Verint released its latest revenue figures for Q2, and they once again proved that the CX industry is particularly resilient even amid a historic cost of living crisis, with companies looking to save costs switching to cloud-based automation. 

The company recorded a six percent increase in overall revenue, and said it is on track to deliver annual revenue growth of seven percent by the end of the year. 

Revenue from cloud products saw a 30 percent increase from the previous quarter, buoyed by strong SaaS adoption across industries and geographies, said Dan Bodner, Verint’s CEO, in an earnings call. 

“I think that clearly, with new logos, they are SaaS deals,” said Bodner. “We still have a large base of customers that are in the process of converting to SaaS. So that will be a mix of on-prem and sometimes hybrid deals. But SaaS is clearly where we land the new customers.” 

“Our strategy has been to help customers transition to the cloud when they are ready and to offer a hybrid cloud platform for maximum customer flexibility. We believe that many customers who have not yet moved to the cloud are in the process of planning a transition over the next few years.” 

Verint bagged some marquee brands last quarter, including Ford, FedEx, and Citigroup, as they shifted their contact center operations to the cloud. It also brought in more than 28 cloud orders in excess of $1 million TCV, among a total of more than 100 new customers. 

Bodner said Verint’s Da Vinci AI product helped secure both a $6 million and a $3 million order in the last quarter. The AI solution powers Verint’s One Workforce, which is designed to help companies unify their workforce of both people and bots. 

One Workforce was recently updated with a channel automation offering that allocates agent capacity across channels based on real-time demand.  

The solution can also “follow” a customer if they decide to move their support chat session from a social channel to a webchat, retaining the chat history. 

Elsewhere, Bodner said many of Verint’s customers are concerned about wage inflation, and some are turning to a consumption-based pricing model instead of the traditional per-seat model. 

“With automation, they want to consume more because the more they consume, the fewer people they need,” said Bodner. He added that while it still makes up a small part of Verint’s revenue, he sees the consumption-based model as a win-win that “motivates customers to consume more automation and offset the cost of the consumption with much larger ROI.” 

Verint recently announced several partnerships that expanded its footprint in the industry, most notably joining forces with Zoom last month. 

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