Next-generation customer experience specialist Verint Systems (NASDAQ: VRNT) wasn't feeling like the future on Thursday. The company published an earnings report that displeased investors, who pushed its share price down by more than 11% during the trading session. That was a notably steeper decline than the relatively light 0.3% dip of the S&P 500 index on the day.

Only flat top-line growth but meaningful profitability improvement

Verint published said results from its second quarter of fiscal 2025 just after market hours on Thursday. The figures reveal that the company's headline revenue was essentially flat on a year-over-year basis, at $210 million. In a more encouraging development, non- GAAP (adjusted) net income climbed to nearly $35.6 million, or $0.49 per share, from the year-ago profit of just under $31 million.

Both line items landed under the consensus analyst estimates. On average, pundits tracking the stock were expecting nearly $213 million on the top line and $0.53 per share for adjusted net income.

Verint has been very assertive in the artificial intelligence (AI) sphere, having launched its AI business software platform in calendar 2023. It quoted CEO Dan Bodner as saying, "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."

Guidance was not particularly inspiring

Verint's guidance, however, doesn't quite jibe with the very bullish words of its leader. For the entirety of the current fiscal year, the company is anticipating revenue will increase or decrease as much as 2% compared to the previous year, while it's forecasting $2.90 per share net income at the midpoint of its revenue guidance. That figure, if realized, would represent a 6% year-over-year improvement.

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