When you call a customer service line and are greeted with an automated voice system that attempts to confirm your identity and inquire about your issue, you may be engaging with an artificial intelligence (AI) powered customer experience (CX) bot from Verint Systems Inc. NASDAQ: VRNT.
Verint Systems Today
$24.43 +0.59 (+2.47%) (As of 11/22/2024 ET)
- 52-Week Range
- $21.27
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$38.17 - P/E Ratio
- 36.46
- Price Target
- $34.67
Verint Systems calls itself "The CX Automation Company." Its services not only attempt to help call centers and customer service departments be more efficient and need less staff. It enables human customer service reps to be more effective with AI-powered coaching during the call. This computer and technology sector leader’s clients include Microsoft Co. NASDAQ: MSFT, Humana Inc. NYSE: HUM, and Alphabet Inc. NASDAQ: GOOGL.
How Verint AI Bots Automate the Customer Service Experience Sequence
Verint's platform provides any number of AI bots to automate the customer service journey. Here are some of their most commonly used AI Bots:
Verint Containment AI Bot
This bot focuses on solving the issue that a customer inquires about, thereby containing the call completely without having to transfer it to a human customer service agent.
Verint Risk Scoring and Transfer Bot
The Transfer bot greets and engages with the customer caller and routes the call to the right human agent. Simultaneously, the Da Vinci AI Risk Scoring Bot will authenticate the caller's identity and assess a Call Risk Score between green and dark red with a numerical value that quantifies the potential for fraud. The Transfer bot uses generative AI to summarize the call sequence and nature of the call to prep the human agent. The combination of the two bots can shed 30 seconds off the total time for a customer call, and the customer wouldn’t have to repeat their name, date of birth, password, and purpose of the call.
Verint Knowledge Suggestion Bot
This bot has already been listening to the call with a human agent and is already providing information on how to address the customer's concerns, even providing links and examples.
Verint Coaching Bot
This bot takes the data and offers more suggested actions for the agent to help the customer and offer potential upsell opportunities.
Verint Wrap-Up Bot
After the call ends, this bot uses generative AI to document and summarize the complete customer experience and outcome in seconds rather than the minute it may take a human agent to type up. Overall, the customer sequence saved around two minutes per call, which adds up when scaled to thousands of calls. Verint took the data to promote its measurable client AI outcomes.
Delivering Measurable AI Client Outcomes
Verint Systems’ marketing is focused on accentuating how its AI solutions deliver measurable outcomes for its clients. It publicizes many client examples where their AI Bots and solutions generated improved measurable outcomes.
- A banking client saved 10 million interactions through its AI-driven self-service with Verint IVA.
- A healthcare client achieved 90% transcription accuracy with its Exact Transcription Bot, leading to a $3 million sales boost.
- A bank client saved $9 million by reducing call time by 20 seconds and boosting agent capacity by 7% with its Knowledge Automation Bots.
- A financial services client saved $5 million by reducing firm call durations by 20 seconds by providing agent real-time coaching with the Verint Coaching Bots.
Verint Execution Was a Miss
Verint reported fiscal Q2 2025 EPS of 49 cents, which missed consensus analyst estimates by four cents. Revenues were unchanged at $210.17 million versus $212.81 million consensus estimates.
Verint Systems Inc. (VRNT) Price Chart for Sunday, November, 24, 2024
On the bright side, the company reported strong AI bookings growth of 40% YoY and bundled software as a service (SaaS) revenue growth accelerated by 15% YoY in the quarter. Its customers have reported strong AI outcomes. Nonetheless, investors weren't impressed when the stock dropped 11% the morning following the earnings report.
AI Momentum Continues to Accelerate
Verint Systems Stock Forecast Today
12-Month Stock Price Forecast:$34.6741.90% UpsideModerate BuyBased on 7 Analyst Ratings High Forecast | $40.00 |
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Average Forecast | $34.67 |
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Low Forecast | $28.00 |
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Verint Systems Stock Forecast Details
Verint Systems issued full-year 2025 EPS of $2.90 versus $2.91 consensus estimates. Revenues are expected to be in the range of $914.34 million to $951.66 million versus $936.31 million. The company expects its AI momentum to continue and drive strong AI bookings and bundled SaaS growth through the second half of the year. Verint initiated a $200 million stock buyback from on from Aug. 29, 2024, to Aug. 29, 2026.
CEO Dan Bodner was still upbeat. “We believe the AI opportunity in the contact center is very large and still in its early stages and that our ability to demonstrate measurable AI business outcomes positions us well for strong AI bookings growth in the second half of the year and accelerating revenue growth over time.”
Verint Systems competes with AI bot and automation developers and CX software companies Nice Inc. NASDAQ: NICE, Twilio Inc. NYSE: TWLO, and Five9 Inc. NASDAQ: FIVN.
VRNT Stock Forms a Descending Triangle Pattern Breakdown
A descending triangle is a bearish pattern formed by a descending (falling) upper trendline resistance meeting the flat-bottom horizontal lower trendline support at the apex point.
VRNT started forming the descending upper trendline at the $37.31 swing high, connecting lower highs towards its flat-bottom lower trendline support at $30.34. The daily anchored VWAP support hovered just beneath $29.90, holding into the earnings report. The fiscal Q2 2025 results triggered a gap down from the $29.26 to $27.47 gap fill level. The stock plunged to a low of $25.17 before attempting to stabilize above $25.96. The daily relative strength index (RSI) has fallen to the oversold 22-band. Fibonacci (Fib) pullback support levels are at $25.96, $22.64, $20.66, and $18.41.
Verint Systems stock’s average consensus price target is $34.17, and its highest analyst price target sits at $40.00.
Actionable Options Strategies
While VRNT stock was punished on its earnings, the valuation has gotten more compelling as it trades at just 13.17x forward earnings. This is low compared to peers like NICE at 18.72x, TWLO at 107.59x and FIVN has no profits. VRNT has a 5.51% short interest.
Seasoned options traders might consider using cash-secured puts at the Fib support pullback levels to buy on a pullback. Upside targets include the anchored VWAP and the analyst price targets. Writing covered calls after being assigned shares would implement a wheel strategy to collect income while waiting for upside targets to be reached.
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