Q3 2025 Verint Systems Inc Earnings Call
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Speaker Change: Good day, and thank you for standing by. Welcome to the Vernice Systems 3rd Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session.
Speaker Change: To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.
Speaker Change: To withdraw your question, please press star 11 again. Also be advised that today's conference is being recorded. I would now like to turn the conference over to Matthew Frankel.
CFA Investor Relations and Corporate Development Director. Please go ahead.
Matthew Frankel: Thank you, operator. Good afternoon and thank you for joining our conference call today. I'm here with Dan Bodner, Verint's CEO, Grant Highlander, Verint's CFO, and Alan Roden, Verint's Chief Corporate Development Officer. Before getting started, I'd like to mention that accompanying our call today is a slide presentation. If you'd like to view these slides in real time during the call, please visit the IR section of our website at verint.com, click on the Investor Relations tab, then click on the webcast link and select today's conference call.
Matthew Frankel: I'd also like to draw your attention to the fact that certain matters discussed on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other provisions of the federal securities laws.
Matthew Frankel: These forward-looking statements are based on management's current expectations and are not guaranteed a future performance. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. The forward-looking statements are made as of the date of this call and, as accepted as required by law, fairness assumes no obligation to update or revise them.
Matthew Frankel: Investors are cautioned not to place undue reliance on these four different statements.
Matthew Frankel: For a more detailed discussion of how these and other risks and uncertainties could cause Dern's actual results to differ materially from those indicated in these four different statements, please see our Form 10-K for the fiscal year ended Jan 31, 2024, our Form 10-Q for the quarter ended April 30, 2024, and our Form 10-Q for the quarter ended July 31, 2024.
Matthew Frankel: and our Form 10-Q for the quarter ended October 31st, 2024 when filed and other filings we make with the SEC.
Matthew Frankel: 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. Please see today's slide presentation, our earnings release, and the investor relations section of our website at barron.com for a reconciliation of non-GAAP financial measures to GAAP measures.
Matthew Frankel: Non-gap financial information should not be considered in isolation from, as a substitute for, or superior to gap 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 comparative purposes.
Matthew Frankel: The non-GAAP financial measures the company uses have limitations and may differ from those used by other companies.
Dan Bodner: Now, I'd like to turn the call over to Dan. Dan?
Thank you, Max.
Dan Bodner: In Q3, Revenue and Non-Gap Diluted EPS came in ahead of our expectations.
and we continue to benefit from strong AI momentum.
Dan Bodner: Today I will start with a review of our third quarter results.
Dan Bodner: Then I will discuss key wins driven by our AI innovation.
and share some customer-reported AI business outcomes.
Dan Bodner: Finally, I will review the agenda for Invest Today on January 14th.
Dan Bodner: In Q3, revenue came in at $224 million, around $14 million ahead of our guidance.
representing approximately 5% year-over-year growth adjusted for last year's adventure.
Dan Bodner: A revenue overachievement was driven by unbundled SAS renewal revenue coming in in Q3.
that we previously expected coming in Q4.
We are pleased with the progress we have made year-to-date.
and we maintain our four-year guidance.
for 5% Adjusted Revenue Growth.
Dan Bodner: Revenue growth in Q3 was driven by strong SAS momentum across bundled and unbundled deals.
Bundle sales revenue increased 19% year-over-year.
Dan Bodner: and acceleration from both Q1 and Q2 driven by AI momentum.
and Battlesas Revenue also increased year-over-year.
Dan Bodner: driven by the timing of deals and the nature of the 606 accounting standards.
Dan Bodner: Gross margin expended year-over-year reflecting the ongoing mixed shift towards recurring revenue.
The Revenue Overachievement and Gross Margin Expansion
drove Q3 non-gap diluted EPS to 54 cents.
Approximately 11 cents ahead of our guidance.
Dan Bodner: In Q3, we continue to win large contracts driven by our AI innovation and our unique hybrid cloud model.
some of the large wings included
Dan Bodner: an $11 million order for a financial services company for a single box
to augment 6,500 contact center agents.
Dan Bodner: The customer conducted a long pilot before awarding the deal and is expecting the variant bot to provide agents with real-time coaching that will increase agent capacity and elevate their customer experience.
$7,000,000 in orders for an insurance company
for renewal and expansion of OneBot across 6,000 agents.
Dan Bodner: which is a good example of a customer taking advantage of Variant's hybrid cloud model by adding AI innovations quickly without converting its existing solutions to the Variant cloud today.
and $6 million in orders for a healthcare company
for Renewal and Expansion across Multiple Platform Applications.
including an expansion of two bots
across nearly 12,000 agents in hybrid cloud.
Dan Bodner: As a reminder, the Variant platform was designed with a completely open architecture.
Dan Bodner: and a hybrid cloud model which supports cloud-to-cloud integrations as well as cloud-to-on-prem integrations.
Dan Bodner: This differentiated open architecture enables customers and partners to quickly move forward with AI innovation without a prerequisite of long disruptive and expensive cloud infrastructure projects.
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enabling them to offer various AI powered bots
to their custodial days for the first time.
with respect to end customers.
Our hybrid cloud platform
Dan Bodner: We now offer on-prem customers the ability to maintain existing solutions on-prem and leap forward with a broad range of AI-powered bots.
Dan Bodner: So they can start to benefit without delay from strong, tangible AI business outcomes.
Dan Bodner: Let's look at some AI business outcomes reported by customers using the Variant platform.
The first example
is a top telecommunications company.
reporting annual savings of more than 10 million dollars.
by using the Variant Intelligence Virtual Assistant.
to power their contact center self-service.
The telecom company replaced their telephony-driven IVR technology.
with Variant's AI-powered IVA.
Dan Bodner: to deliver tangible business outcomes, including improving its self-service containment rates
and elevating the service experience for consumers.
Dan Bodner: The company responds to more than 7 million customer calls each year on a variety of topics
including billing, payments, appointment management, and tech support.
Dan Bodner: By using variants, they achieved more than 50% containment for all inquiries.
and 80% for billing specific inquiries.
The second example is for a financial services company.
reporting annual savings equivalent to nine million dollars
Dan Bodner: by using a variant AI-powered bot to automate agent access to enterprise knowledge.
with the VariantBot automating contextual knowledge delivery in real-time.
Their agents require fewer time-consuming searches.
Dan Bodner: We're very pleased with the strong outcomes our customers are reporting from their initial Variant AI deployments.
Dan Bodner: and believe that their AI consumption from variants will grow over time.
due to the dramatic benefits they are achieving.
Dan Bodner: The contact center market is in the early stages of AI adoption.
and customers have been navigating significant AI noise and hype.
More and more customers realize
that can quickly deliver tangible AI business outcomes.
in their existing ecosystems.
Dan Bodner: We continue to innovate and lead the market with new AI-powered bots.
The CX-EX scoring bot, which we announced earlier today,
Dan Bodner: is the latest addition to the Agent Co-Pilot Bot category of the Variant Open Platform.
Each of our agents co-pilot bots.
Dan Bodner: is designed to perform a specific task in real time, which augments human agents' ability
and make them more efficient.
Dan Bodner: The new scoring bots augment agents and managers with unique real-time insights into customer experience and employee experience.
which are not possible with traditional surveys.
Dan Bodner: We believe that using AI to accurately score each call in real-time is unique to Varian today.
Dan Bodner: And in the market, we'll be looking to augment surveys with AI-powered real-time scoring.
The technology behind the new scoring box goes beyond Gen-AI.
and include sophisticated AI models for acoustic analysis.
Dan Bodner: that came to Variant through a tech-tacking acquisition we closed during Q3.
Dan Bodner: We are pleased with our ability to quickly integrate acquired technology.
Dan Bodner: enabling rapid innovation in our platform and quickly offering new bots to our large customer base.
On January 14th, we will be holding our investor day.
Dan Bodner: Similar to last year's Investor's Day, we will provide our outlook for next year.
Dan Bodner: discuss a strong AI momentum, and explain how we will benefit from AI in the long term.
Key topics we'll cover...
include a showcase of our open platform and go-to-market differentiation
Dan Bodner: You will hear directly from customers about the strong AI business outcomes they are achieving with the Various Open Platform.
And we will review our financial model.
Dan Bodner: including fiscal 26 guidance as well as ARR and cash flow metrics
and a long-term strategy for monetizing AI.
To recap,
Dan Bodner: We are pleased with our Q3 results and expect to finish the year strong.
Dan Bodner: We expect bundles as revenue to continue to accelerate in Q4.
Dan Bodner: The key driver behind our self-momentum is the proven AI business outcomes reported by our customers.
Dan Bodner: We believe that our ability to deliver measurable AI business outcomes in a hybrid cloud model is a unique and sustainable differentiator.
Dan Bodner: With that, I'll turn it over to Grant to discuss our financial results in more detail.
Grant?
Thanks, Dan. Good afternoon, everyone.
Our discussion today will include non-GAAP financial measures.
Dan Bodner: A reconciliation between our GAAP and non-GAAP financial measures is available, as Matt mentioned, in our earnings release and in the IR section of our website.
Dan Bodner: Differences between our GAAP and non-GAAP financial measures include adjustments related to acquisitions and divestitures, including fair value revenue adjustments, amortization of acquisition-related intangibles,
Dan Bodner: certain other acquisition and divestiture related expenses, stock-based compensation expenses, accelerated lease costs, IT facilities and infrastructure realignment, as well as certain other items that can vary significantly in amount and frequency from period to period.
Dan Bodner: Now, let me start with an overview of our Q3 results.
Dan Bodner: Revenue increased approximately 5% year-over-year to $224 million adjusted for our divestiture.
Dan Bodner: This was around $14 million above our guidance, of approximately $210 million, and as Dan mentioned earlier, this was due to unbundled SAS revenue that we expected in Q4, shifting forward into Q3.
All other revenue streams came in as expected.
Dan Bodner: Gross margins came in strong, with non-gap margin at 72%, up approximately 70 basis points year-over-year.
Dan Bodner: We have expanded our gross margins in each of the last nine quarters on a year-over-year basis, reflecting the continued favorable mix shift to higher margin recurring revenue and the AI innovation we deliver to our customers.
Dan Bodner: Non-GAP diluted EPS came in at 54 cents, also ahead of our guidance of 43 cents.
Next.
Let's look at our SAS revenue streams in more detail.
Dan Bodner: Starting with Bundled SAS Revenue Stream, as we have discussed in past calls, 100% of our AI innovation is deployed only in Bundled SAS.
Dan Bodner: In Q3, bundled SAS revenue growth accelerated to 19% year-over-year, up nicely from 15% in Q2 and over 9% in Q1.
Dan Bodner: The technology tuck-in acquisition that Dan discussed earlier contributed about 1 million of bundled SAS revenue in Q3.
Dan Bodner: We expect an acceleration in Q4 to more than 20% year-over-year growth to around 80 million dollars of bundled SAS revenue.
Turning the unbundled SAS revenue stream
Dan Bodner: During Q3, we recorded $73 million of unbundled SAS revenue, ahead of our expectations, driven by renewal revenue coming in Q3 that we previously expected to come in during Q4.
Dan Bodner: In Q4, similar to last year, we expect our fourth quarter to be our largest unbundled SAS revenue quarter of the year, with around $100 million due to the large pool of renewals we have in our fourth quarter.
Dan Bodner: We are pleased with our bundled SAS growth acceleration throughout the year, driven by customer demand for AI innovation.
Dan Bodner: As Dan mentioned earlier through the customer examples he provided, our hybrid cloud model makes AI available in bundled SaaS to all our customers and partners, even when they maintain their existing solutions on-premise.
Dan Bodner: Turning to our guidance for fiscal year end 25, we are maintaining our revenue and non-GAAP diluted EPS guidance for the full year.
Dan Bodner: On a non-gap basis, our revenue outlook is $933 million, plus or minus 2%, reflecting a bit more than 5% growth compared to FY'24 adjusted revenue.
Dan Bodner: We can continue to expect our gross margin to increase this year and expect at least 150 basis points of expansion year over year.
Dan Bodner: And for diluted EPS, we expect $2.90 at the midpoint of our revenue guidance.
Dan Bodner: Regarding below-the-line assumptions for the full year, we now expect interest and other expense net of approximately seven million dollars. Net income from a non-controlling interest of around one million dollars.
A cash tax rate of around 10.5%
and approximately 72.2 million fully diluted shares.
Dan Bodner: I'd like to give you a bit more color on our revenue outlook for Q4.
for non-GAP modeling purposes.
Dan Bodner: You can assume $213 million of recurring revenue in Q4, resulting in approximately 8% recurring revenue growth for the full year, adjusted for the divestiture.
Dan Bodner: and for non-recurring revenue you can assume 64 million of revenue in Q4.
Dan Bodner: Let me provide you some additional color on our bookings and ARR trends.
Dan Bodner: Starting with new SAS ACV bookings, as discussed in our prior call, we see trends that are different between new deals and conversion deals.
Dan Bodner: As a reminder, new deals include expansions and new functionality in both unbundled SAS and bundled SAS solutions.
Dan Bodner: Conversion deals, on the other hand, include like-the-like conversions of existing on-premise deployments to the Verint cloud platform in bundled SAS.
Dan Bodner: Bookings for new deals in Q3 increased a strong 37% year-over-year.
Dan Bodner: We are pleased with our New Deal momentum year-to-date and expect to finish the year with another strong quarter.
Dan Bodner: Bookings from conversion deals were minimal due to the success of our hybrid cloud model.
Dan Bodner: Customers know they can add AI now and convert the rest of their Variant solutions later when they are ready. We expect this dynamic to continue in Q4.
Shifting the ARR.
Dan Bodner: For Q3, SAS ARR increased 11% year-over-year, driven by AI adoption, and we expect double-digit SAS ARR growth in Q4.
As we've discussed in the past,
Dan Bodner: We believe that SAS ARR is a useful metric as it provides a consistent and normalized view of our recurring SAS revenue streams on an annualized basis.
Dan Bodner: Turning to our balance sheet, we continue to be in a very good financial position.
Dan Bodner: Our net debt remains under one-time's last 12-month EBITDA and is further supported by our strong cash flow.
Dan Bodner: With regard to cash flow, year-to-date we've generated 25% more free cash flow than last year and we are targeting strong cash generation in the fourth quarter and more than 30% growth for the full of the year.
Dan Bodner: With regard to stock buybacks, we are executing on our previously announced $200 million share repurchase program, and we'll expand on our capital allocation strategy with more detail during our investor day.
In summary,
Dan Bodner: We are pleased with our Q3 results and expect to finish the year strong.
Dan Bodner: We delivered approximately 4.5% adjusted revenue growth year-to-date, and with a strong fourth quarter, we expect to deliver around 5% adjusted growth for the full year.
Dan Bodner: We are also pleased with new SAS ACV bookings from NewDeals growing 37% in Q3 and expect to finish the year strong.
Dan Bodner: We look forward to speaking with you at our upcoming Investor Day on January 14th, when we will showcase our differentiation. You will hear directly from our customers on AI business outcomes.
and we will review our financial model.
With that, Operator, please open the line for questions.
Speaker Change: Thank you. As a reminder, if you would like to ask a question, please press star 1-1 on your telephone. We also ask that you please wait for your name and company to be announced before you proceed with your question. One moment for the first question.
Thank you.
Thank you.
Speaker Change: And our first question is going to be coming from Saul Ewell of TD Cowan. Your line is open.
Thank you.
Speaker Change: Thank you. Good afternoon, gentlemen. Congrats on the healthy performance. Dan, I'm looking at the variance results, listening to your commentary, as well as looking at some of the industry participants' recent results and their market commentary.
Speaker Change: And I wanted to ask if you currently view Variant as gaining market share within the contact center arena, which you've indicated is ripe for this upcoming AI cycle.
Speaker Change: Yes, I think we do, but you know we have to be clear, we are leading the CX automation market, so there's all kinds of different...
Speaker Change: solutions that kind of sellers need and of course we're not delivering CRM we're not delivering communication platforms but we do deliver
CX Automation Platforms
Speaker Change: and we believe that we are the market leader and that we're taking share.
Speaker Change: We believe that because first we report, we see customer reported AI business outcomes that we don't hear from anyone else.
Speaker Change: And when we talk to customers, we see two types of competitors who are trying to sell into this CF transformation.
Speaker Change: needs. And, you know, clearly everybody thinks this is a market that has huge potential because...
Speaker Change: the dramatic outcomes that are being now generated in CX automation. It's not insignificant. These are tens of millions of dollars that companies can save in labor costs and also elevate the customer experience at the same time.
Speaker Change: The competition in CX Automation is coming from two directions. We have competitors with point solutions.
Speaker Change: where they have a specific bot that is automating a specific task.
Speaker Change: And that can come from, you know, small startups or large, more established companies, but they have a very specific AI for specific, automating a specific workflow.
Speaker Change: and we compete very well with anybody in the market, but at the same time, we are a CX automation platform.
Speaker Change: We have the DaVinci AI at the core, we have the behavioral data at the core, and we have all these bots working in one platform. And as customers start to think more strategically about CX automation, they're really looking for an open platform.
Speaker Change: where they can consume maybe initially just one bot and at the low level of consumption, but they want to be able to, as they see the results, to grow consumption and to expand into more bots. So we have clear differentiation from those point solution vendors.
Speaker Change: The other competitor is actually internal IT development. We see a lot of our enterprise customers...
Speaker Change: buying AI tools and trying to develop AI, of course many use cases across the enterprise, and they're reporting that they're not very successful in the Connick Center with the CX automation use case. It's not that simple.
Speaker Change: So, very often we see this kind of, we call them science projects, lab experiments that customers do, but we tell them, look, you can do a lot of things with AI yourself, but you can also buy from variants and we give you very strong outcomes.
Speaker Change: We also give you those strong items now because you can actually deploy it into your existing ecosystem.
Speaker Change: you know, they're going to achieve. So that's another very strong differentiator that we can actually deliver with an open platform into an existing ecosystem.
Speaker Change: Got it, thank you for that. Maybe just a housekeeping for Grant. I know you've mentioned that tiny tuck-in that you guys have made during the third quarter. Any light you can share with us, some info about whatever contribution you've seen from that little asset? Thank you.
Yeah, I'll take that.
Speaker Change: So, we talked about Takian Acquisition in Q3. It's a startup company that actually invested
$150 million dollars in developing AI technology.
Speaker Change: So they have a very strong AI team and very strong technology and we're very excited to welcome the the AI team into Variant.
Speaker Change: And also, as I mentioned earlier, we've already integrated some of their technology into a platform and this morning we introduced the new CXEX scoring bot.
Speaker Change: This is a very unique bot that doesn't exist in the market.
Speaker Change: You know, the ability to create real-time scoring of each call and understand what's the CX trend during the call, and of course the employee experience trend as well, we believe it's very important.
They have a very small customer base, about 10 customers.
Speaker Change: And like many other startups, their contracts give customers the right to terminate any time.
Speaker Change: So, while we have no indication that the customs will terminate...
Speaker Change: We will need to wait and see over time how much revenue these 10 customers will generate annually. For now, I'll tell you that we recognized about $1 million in Q3, so that's included in our results, and this could be several million dollars in Q4.
Thank you so much. Good luck.
Thank you and one moment for the next question please.
Speaker Change: Our next question will be coming from the line of Joshua Riley of Needham. Your line is open.
Joshua Riley: Yeah, if you look at customers renewing here, are you seeing any change in seat counts and what the customers are actually buying in terms of the net spend actually being higher, you know, as a result of, you know, everybody's concerns about what's going on with contact center seats in the market?
Joshua Riley: We started to see the change. We started to discuss this change at the beginning of the year. We talked about how AI is going to replace agents.
Joshua Riley: at least give the customers opportunity to replace agents and redirect agents into different tasks.
Joshua Riley: But since then, we do see every quarter more and more customers deploying AI and getting those very strong AI business outcomes that we are discussing.
Joshua Riley: We have about 50 different AI business outcomes use cases on our website.
Joshua Riley: So, as they prove that those outcomes are not just lab experiments, but they really work in the field, we do see customers...
leverage this increased energy capacity.
Joshua Riley: I would say that some customers choose to actually reduce the workforce, other customers choose to use agents to spend more time to build customer relationships and to upsell and cross-sell and increase revenue.
Joshua Riley: So, obviously, that's a choice that each company has. I spoke recently to a large executive from a large insurance company.
Joshua Riley: And while they are investing in self-service and they want to automate some very simple requests or questions for customers, they actually...
Joshua Riley: have a goal to have agents spend more time talking to customers.
Joshua Riley: In that specific instance, when you're in self-service, even after the bot will satisfy what you need, it will actually offer to transfer you to an agent so you can continue the conversation with a human being because they actually want to create more loyalty and deeper relationships.
Joshua Riley: I would say that, you know, we have about 4 million agents that we currently deploy software against. This is WFE software that we sold for many years. And across these 4 million agents, we generate about $200 per agent annually.
Joshua Riley: So, delivering AI business outcomes is actually very accretive for variants.
Joshua Riley: Because, for the customers to eliminate the SIP, the reduced agent, they will need to purchase bots.
Joshua Riley: and those bots to replace the agent, they will spend $1200.
Joshua Riley: for the AI. So that's a six X opportunity for variants to, we're gonna lose $200 per seat, but we're going to gain $1,200 by delivering the bots that will automate that function.
Speaker Change: And then I think, you know, if we look overall at the market for your questions, what I found over, you know, kind of the last year here talking to customers is with all the AI solutions that have come out from the various vendors, there's been a digestion period where they kind of need to understand what all the vendors in the space are doing. Do you think now that customers have had maybe over a year in terms of evaluating all the different solutions out there that sales cycles can actually improve and
Speaker Change: calendar 2025 with a better understanding of what AI is doing in the contact center. Thanks guys.
Speaker Change: So yes, I think you're referring to some sort of AI paralysis and that's clearly the result of the noise and hype that honestly mostly vendors create in the market.
Speaker Change: but also internal IT organizations that play around with AI tools and you know they are kind of experimenting for different type of automation with use cases across the enterprise. So AI created obviously lots of excitement about opportunity but also certain paralysis which is not unexpected in an early stage market.
Speaker Change: But again, the best tool we have, and it's working very effectively, is to...
Speaker Change: What about you? And the more we can point customers to, this is real and maybe it's time to invest. And you don't have to invest with variants in a big way because we're not... Again, we're hybrid cloud model, meaning...
You do not need to convert.
Speaker Change: anything you have to the clouds first. You know, you can use the existing ecosystem the way it is.
Speaker Change: And you can now start to deploy AI, and you can start at a very low consumption, because, again, it's very flexible.
Speaker Change: and the investment is not big. So when customers realize that they can do it in existing ecosystem with relatively small investment and now they can prove the results, not in the lab, but in real environment, that starts to undo the paralysis.
Speaker Change: It is getting better, I would say every quarter it is getting better.
Got it. Very helpful. Thanks, guys.
Speaker Change: Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. One moment for the next question.
Speaker Change: And our next question will be coming from the line of Samad Samama.
From Jaffray's, your line is open.
Speaker Change: Hey guys, this is Billy Fitzsimmons for Samad Samada. About a month ago you and RingCentral jointly announced a new partnership. Dan, it would be helpful if you could discuss how that deal came together and just help frame for us how we should think about that that partnership and opportunity going forward as we enter 2025.
Dan Bodner: Sure. So, well, it came together because, you know, Ring announced that...
Speaker Change: They have a plan to grow in the connect center market and that's their new initiative.
Speaker Change: They're not new to the connection market, but they have a new initiative to grow in that market. And as a result, both companies invested in cloud-to-cloud integrations.
Speaker Change: So that now Ring is able to offer their customers all the capabilities that we have in the Variant platform.
Thank you. Thank you.
Speaker Change: So, I think that when you look at the industry overall, you know, we believe that integrations between SICAS platforms and CX automation platforms such as we have.
Speaker Change: really provide customers a seamless way to purchase the communication infrastructure that they choose and also to benefit from the strong AI business outcomes that they need and they can get through a SICS automation platform.
Speaker Change: So it's, you know, in terms of the partnership, as you said, it was announced last month, so it's early. And we expect minimum contribution from that in Q4, but this will be another growth engine next year.
Speaker Change: Got it. And then intra-quarter, you hosted investors at your annual user conference there at Engage. Multiple new product announcements there. Your bot count expanded to 50-plus.
Speaker Change: But beyond the new products, it seems like there's a greater focus on bundling some of those spots together.
Speaker Change: It would be helpful if you could kind of recap some of the key announcements from Engage. And then, obviously it's early, but maybe speak to what customers' feedback has been like since the event.
Thank you.
Speaker Change: Yes, Engage was an amazing conference for us this year, again because it was not just about technology, it was about customers, talking to customers about the business outcomes that they actually already generated.
Speaker Change: And that's the best way we would like to see customers getting together. Not just to hear what the vendor has to say, but it's an open conference where there's a lot of sessions where customers actually speak.
Speaker Change: and other guests can hear and ask them questions about, you know, their experiences.
Speaker Change: So, as we gain more and more customer-reported AI business outcomes, obviously we leverage that for customers to hear from customers.
Speaker Change: I think it created more confidence that AI is not just noise, it's actually driving real dramatic business outcomes.
For me, obviously, for me...
Speaker Change: platform perspective, because we designed the platform with the behavioral data hub at the core and the ability to bring any AI, Gen AI, or other AI model into the platform quickly,
We're also able to innovate very quickly with new bots.
Speaker Change: And as we create more and more bots, you mentioned we have more than 50, obviously we are trying also to help customers to consume those bots in bundles.
Speaker Change: But I would say we're not, you know, getting away from every bot is designed to do just one single thing because a bot is basically just automating one workflow.
Speaker Change: And customers have a lot of different workflows that they run in their business.
Speaker Change: And they can choose to automate one workflow at a time, and especially at the early stage market, that gives them a lot of flexibility to start small and to prove the results.
but as they get more and more confident...
Speaker Change: Obviously bundling is another way to get them to increase consumption faster.
Speaker Change: and we started to offer some bundles, especially around the agent co-pilot bots.
There are five different bots that we...
Thank you.
Speaker Change: we cover under that co-pilot category, all of them have the same common benefits of working in real time and helping the agent in real time, but each one of them is doing...
Speaker Change: something different in real time. Like one is automating the knowledge search, so agents don't have to search for knowledge, and knowledge is just being delivered to them. That can save 30 seconds.
Speaker Change: Another copilot bot is helping the agent in terms of real-time coaching, reminding them of some compliance messages they have to say or suggesting next best action in terms of, you know, now it's a good time to sell something.
Speaker Change: So each of these co-pilot bots have a different function and they can be purchased separately but we are also providing more bundles for customers who want to move faster.
Speaker Change: And you will see that, you know, typically when you have a platform with many capabilities.
Speaker Change: that works. You know, you offer a la carte, but you also offer bundles for those who want to move faster.
Perfect. Thank you very much.
Speaker Change: Thank you and that does conclude today's Q&A session. I would like to go ahead and turn the call back over to Matthew Frankel for closing remarks. Please go ahead. Thanks, Lisa, and thanks everyone for joining us today. Of course, as usual, please feel free to reach out with any questions you have and we look forward to speaking with you on the 14th of January, Investor Day. Have a good night.
Speaker Change: Thank you for joining today's conference call. This concludes today's meeting. You may all disconnect.