Verint Systems Inc. (NASDAQ:VRNT) Q3 2023 Earnings Call Transcript

Dan Bodner: Yes. So there are several drivers to the buyback. One is obviously our confidence in our long-term outlook that’s reflected in the decision for the buyback. And the second is, as you remember, following the tax-free spinoff, we have some restrictions on the size of the buyback. And we’re still obviously limited by the tax-free structure, but we’re able to enhance this program within the limitation of the taxi spin-off. In terms of the overall capital structure, we expect this program to be more than 50%, somewhat more than 50% of our free cash flow that we generate in that period. So we think it’s a good balance of using our free cash flow for buyback and the rest for other usage, M&A could become more attractive, we’ll see, and we can obviously make adjustments over time.

But this is the way we think about it now. We’re generating a lot of cash. We expect to grow cash flow next year and the year after faster than EBITDA, because we are in the second half of our cloud transition and the cash flow is accelerating. So we’re expecting very healthy cash flow the next two years, and we think it’s prudent to put more than 50% of that to — back to investors.

Samad Samana: Great. Appreciate taking my questions.

Operator: Thank you. And I’m not showing any further questions in the queue. So I’d like to turn the call over back to the speakers for any closing remarks.

Matthew Frankel: Great. Thank you for joining our call today. If you have any questions, feel free to reach out, and we look forward to speaking to you soon. Have a good night, everybody.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.