Verint Systems' AI-Driven CX Automation To Curb Rising Labor Costs: Needham Analyst

Needham analyst Ryan MacDonald reiterated a Buy rating on Verint Systems Inc. VRNT with a price target of $50.

The analyst remains particularly upbeat on the company's initiatives in AI, headlined by CX Automation, with the new Open CCaaS offering.

Verint's strategy for CX automation is based upon the company's internally developed Da Vinci Analytics platform and Engagement Data Hub, which will be aided by the availability of bots that leverage AI to not only automate more customer interactions but to supplement live agent interactions, the analyst notes. 

With 50 million CX workers in the market, costing $2 trillion annually, the analyst believes these bots will drive incremental efficiency and curb rising labor costs.

Verint is monetizing these bots through a combination of a seat-based/named-user pricing model and a consumption pricing model, the analyst notes.

Going ahead, the analyst expects Verint's customer engagement business to support a near 30% EBITDA margin.

MacDonald also remains confident in the company's ability to accelerate revenue growth over the next three years.

Price Action: VRNT shares are trading lower by 1.72% to $36.77 on the last check Wednesday.