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  "documentTitle": "Verint Systems, Inc. (VRNT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-05-23 00:00:00",
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  "notes": "Uses a comparison table to show that Verint is the only company in the peer group not reporting key cloud metrics.",
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      "kind": "callout",
      "text": "Neuberger Berman Proxy Filing",
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      "text": "Why is Verint management reluctant to adopt the same performance metrics as its peer group?",
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      "text": "As Neuberger notes in its proxy filings, Verint's relative lack of transparency makes it difficult for investors to evaluate the performance of the business. In particular, Neuberger emphasizes that all of Verint's most comparable cloud-oriented software companies disclose both organic sales growth and the gross margin generated by their respective cloud businesses. Why is Verint management reluctant to adopt the same performance metrics as its peer group?",
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      "text": "It wasn't easy, but we managed to at least get the Company to talk with shareholders a bit more about its cloud business model. Now, shareholders need clear guidance and objective metrics both to know that the Company is truly committed to these plans and to be able to hold management accountable for the transition. Absent guidance and ongoing disclosure, shareholders cannot properly predict, model or value Verint's cloud business or the Company. Verint should adopt the same of metrics that other comparable cloud-based software companies have already implemented, including: cloud-only revenue and gross margins, the number of customers above $1 million in annual recurring revenue and cloud churn/expansion rate.",
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      "kind": "quote",
      "text": "…Verint’s revenue disclosures are lacking…it does not provide inorganic revenue, maintenance revenue, or cloud revenue, metrics we believe would help us better judge the quality of revenue, the contribution to growth of different revenue streams, and organic growth.",
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      "text": "“...Verint’s revenue disclosures are lacking...it does not provide inorganic revenue, maintenance revenue, or cloud revenue, metrics we believe would help us better judge the quality of revenue, the contribution to growth of different revenue streams, and organic growth.” — Samad Samana, Jefferies research analyst, Jefferies Research Report January 10, 2019",
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      "text": "Verint Financial Reporting vs. Comparable Software Companies",
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      "text": "Refusal To Adopt Industry-Standard Performance Metrics Complicates Investor Analysis",
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