0001166388-22-000091 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Apr. 30, 2022	May 16, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2022
Document Transition Report	false
Entity File Number	001-34807
Entity Registrant Name	Verint Systems Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3200514
Entity Address, Address Line One	175 Broadhollow Road
Entity Address, City or Town	Melville,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11747
City Area Code	(631)
Local Phone Number	962-9600
Title of 12(b) Security	Common Stock, $.001 par value per share
Trading Symbol	VRNT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		64,676,525
Entity Central Index Key	0001166388
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Current Assets:
Cash and cash equivalents	$ 285,046	$ 358,805
Short-term investments	745	765
Accounts receivable, net of allowance for credit losses of $1.3 million and $1.3 million, respectively	149,758	193,831
Contract assets, net	37,993	42,688
Inventories	5,225	5,337
Prepaid expenses and other current assets	56,433	53,752
Total current assets	535,200	655,178
Property and equipment, net	61,577	64,090
Operating lease right-of-use assets	32,724	35,433
Goodwill	1,327,444	1,353,421
Intangible assets, net	104,838	118,254
Other assets	139,258	134,729
Total assets	2,201,041	2,361,105
Current Liabilities:
Accounts payable	35,482	39,501
Accrued expenses and other current liabilities	146,327	168,694
Contract liabilities	258,065	271,271
Total current liabilities	439,874	479,466
Long-term debt	407,402	406,954
Long-term contract liabilities	15,704	15,872
Operating lease liabilities	29,096	28,457
Other liabilities	37,191	39,456
Total liabilities	929,267	970,205
Commitments and Contingencies
Temporary Equity:
Preferred Stock	436,321	436,321
Stockholders' Equity:
Common stock — $0.001 par value; authorized 120,000,000 shares. Issued 66,677,000 and 66,211,000 shares; outstanding 64,677,000 and 66,211,000 shares at April 30, 2022 and January 31, 2022, respectively.	67	66
Additional paid-in capital	1,141,162	1,125,152
Treasury stock, at cost — 2,000,000 shares at April 30, 2022; No shares at January 31, 2022.	(105,666)	0
Accumulated deficit	(54,223)	(54,509)
Accumulated other comprehensive loss	(148,560)	(118,515)
Total Verint Systems Inc. stockholders' equity	832,780	952,194
Noncontrolling interests	2,673	2,385
Total stockholders' equity	835,453	954,579
Total liabilities, temporary equity, and stockholders' equity	2,201,041	2,361,105
Series A Preferred Stock
Temporary Equity:
Preferred Stock	200,628	200,628
Series B Preferred Stock
Temporary Equity:
Preferred Stock	$ 235,693	$ 235,693

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Allowance for credit losses	$ 1,300	$ 1,300
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	2,207,000	2,207,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	120,000,000	120,000,000
Common stock, issued (in shares)	66,677,000	66,211,000
Common Stock, outstanding (in shares)	64,677,000	66,211,000
Treasury stock, at cost (in shares)	2,000,000	0
Series A Preferred Stock
Preferred stock, issued (in shares)	200,000	200,000
Preferred stock, outstanding (in shares)	200,000	200,000
Preferred stock, liquidation preference value	$ 203,467	$ 206,067
Preferred stock, redemption value	$ 203,467	$ 206,067
Series B Preferred Stock
Preferred stock, issued (in shares)	200,000	200,000
Preferred stock, outstanding (in shares)	200,000	200,000
Preferred stock, liquidation preference value	$ 203,467	$ 206,067
Preferred stock, redemption value	$ 203,467	$ 206,067

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Revenue:
Revenue	$ 217,906	$ 200,904
Cost of revenue:
Amortization of acquired technology	3,639	4,384
Total cost of revenue	76,735	72,340
Gross profit	141,171	128,564
Operating expenses:
Research and development, net	30,947	29,148
Selling, general and administrative	102,882	87,646
Amortization of other acquired intangible assets	6,844	7,328
Total operating expenses	140,673	124,122
Operating income	498	4,442
Other income (expense), net:
Interest income	199	23
Interest expense	(1,501)	(5,019)
Losses on early retirements of debt	0	(2,474)
Other income, net	1,674	4,050
Total other income (expense), net	372	(3,420)
Income before provision for (benefit from) income taxes	870	1,022
Provision for (benefit from) income taxes	296	(72)
Net income	574	1,094
Net income attributable to noncontrolling interests	288	295
Net income attributable to Verint Systems Inc.	286	799
Dividends on preferred stock	(5,200)	(3,322)
Net loss attributable to Verint Systems Inc. common shares	$ (4,914)	$ (2,523)
Net loss per common share attributable to Verint Systems Inc.:
Basic (in dollars per share)	$ (0.08)	$ (0.04)
Diluted (in dollars per share)	$ (0.08)	$ (0.04)
Weighted-average common shares outstanding:
Basic (in shares)	64,947	65,661
Diluted (in shares)	64,947	65,661
Recurring
Revenue:
Revenue	$ 159,367	$ 144,453
Cost of revenue:
Cost of revenue	41,028	38,076
Nonrecurring
Revenue:
Revenue	58,539	56,451
Cost of revenue:
Cost of revenue	$ 32,068	$ 29,880

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 574	$ 1,094
Other comprehensive (loss) income, net of reclassification adjustments:
Foreign currency translation adjustments	(29,890)	2,608
Distribution of Cognyte Software Ltd.	0	17,123
Net decrease from foreign exchange contracts designated as hedges	(188)	(66)
Net increase from interest rate swap prior to dedesignation as a hedge	0	1,014
Net increase from settlement of interest rate swap due to partial early retirement of Term Loan	0	12,017
Benefit from income taxes on net (decrease) increase from foreign exchange contracts and interest rate swap designated as hedges	33	11
Other comprehensive (loss) income	(30,045)	32,707
Comprehensive (loss) income	(29,471)	33,801
Comprehensive income attributable to noncontrolling interests	288	295
Comprehensive (loss) income attributable to Verint Systems Inc.	$ (29,759)	$ 33,506

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Total Verint Systems Inc. Stockholders’ Equity	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss	Non-controlling Interests	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjustment Total Verint Systems Inc. Stockholders’ Equity	Cumulative Effect, Period of Adoption, Adjustment Additional Paid-in Capital	Cumulative Effect, Period of Adoption, Adjustment Accumulated Deficit
Beginning balances (in shares) at Jan. 31, 2021			65,773
Beginning balances at Jan. 31, 2021	$ 1,282,564	$ 1,267,437	$ 70	$ 1,726,166	$ (208,124)	$ (113,797)	$ (136,878)	$ 15,127	$ 1,430	$ 1,430	$ (43,445)	$ 44,875
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,094	799				799		295
Other comprehensive loss	32,707
Stock-based compensation — equity-classified awards	14,253	14,253		14,253
Common stock issued, or to be issued, for stock awards and stock bonuses (in shares)			827
Common stock issued for stock awards and stock bonuses	0		$ 1	(1)
Treasury stock acquired (in shares)			(543)
Treasury stock acquired	(25,868)	(25,868)			(25,868)
Other comprehensive income, excluding the distribution of Cognyte Software Ltd.	15,584	15,584					15,584
Distribution of Cognyte Software Ltd.	(277,412)	(264,542)		(281,665)			17,123	(12,870)
Common stock repurchased and retired (in shares)			(1,058)
Common stock repurchased and retired	(49,581)	(49,581)	$ (1)	(49,580)
Purchases of capped calls, net of taxes	(32,416)	(32,416)		(32,416)
Ending balances (in shares) at Apr. 30, 2021			64,999
Ending balances at Apr. 30, 2021	929,648	927,096	$ 70	1,333,312	(233,992)	(68,123)	(104,171)	2,552
Beginning balances (in shares) at Jan. 31, 2022			66,211
Beginning balances at Jan. 31, 2022	954,579	952,194	$ 66	1,125,152	0	(54,509)	(118,515)	2,385
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	574	286				286		288
Other comprehensive loss	(30,045)	(30,045)					(30,045)	0
Stock-based compensation — equity-classified awards	16,011	16,011		16,011
Common stock issued, or to be issued, for stock awards and stock bonuses (in shares)			466
Common stock issued for stock awards and stock bonuses	$ 0		$ 1	(1)
Treasury stock acquired (in shares)	(2,000)		(2,000)
Treasury stock acquired	$ (105,666)	(105,666)			(105,666)
Ending balances (in shares) at Apr. 30, 2022			64,677
Ending balances at Apr. 30, 2022	$ 835,453	$ 832,780	$ 67	$ 1,141,162	$ (105,666)	$ (54,223)	$ (148,560)	$ 2,673

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Cash flows from operating activities:
Net income	$ 574	$ 1,094
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,048	19,049
Stock-based compensation, excluding cash-settled awards	18,364	16,405
Change in fair value of future tranche right	0	(15,810)
Non-cash losses on derivative financial instruments, net	0	14,374
Losses on early retirements of debt	0	2,474
Other, net	2,163	(2,317)
Changes in operating assets and liabilities:
Accounts receivable	41,766	58,026
Contract assets	4,024	(2,184)
Inventories	68	(350)
Prepaid expenses and other assets	(8,686)	(18,781)
Accounts payable and accrued expenses	(5,694)	(1,510)
Contract liabilities	(9,645)	(15,524)
Deferred income taxes	(1,074)	(16,977)
Other, net	(5,982)	(260)
Net cash provided by operating activities — continuing operations	53,926	37,709
Net cash used in operating activities — discontinued operations	0	(8,007)
Net cash provided by operating activities	53,926	29,702
Cash flows from investing activities:
Purchases of property and equipment	(5,224)	(4,369)
Maturities and sales of investments	250	45,640
Purchases of investments	(250)	0
Cash paid for capitalized software development costs	(2,003)	(1,966)
Change in restricted bank time deposits, and other investing activities, net	20	(32)
Net cash (used in) provided by investing activities	(7,207)	39,273
Cash flows from financing activities:
Proceeds from issuance of preferred stock	0	200,000
Proceeds from borrowings	0	315,000
Repayments of borrowings and other financing obligations	(775)	(310,633)
Purchases of capped calls	0	(40,950)
Payments of debt-related costs	(93)	(9,422)
Purchases of treasury stock and common stock for retirement	(105,213)	(75,014)
Preferred stock dividend payments	(10,400)	(5,200)
Payment for termination of interest rate swap	0	(16,502)
Net cash transferred to Cognyte Software Ltd.	0	(114,657)
Dividend and other settlements received from Cognyte Software Ltd.	0	40,164
Payments of contingent consideration for business combinations (financing portion), and other financing activities	(1,549)	(2,842)
Net cash used in financing activities	(118,030)	(20,056)
Foreign currency effects on cash, cash equivalents, restricted cash, and restricted cash equivalents	(2,431)	218
Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents	(73,742)	49,137
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period	358,868	700,133
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period	$ 285,126	$ 749,270

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2022	Apr. 30, 2021
Cash and cash equivalents	$ 285,046	$ 359,418
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	285,126	749,270
Restricted cash and cash equivalents, and restricted bank time deposits
Restricted cash and cash equivalents	0	389,795
Prepaid expenses and other current assets
Restricted cash and cash equivalents	23	0
Other assets
Restricted cash and cash equivalents	$ 57	$ 57

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Unless the context otherwise requires, the terms “Verint”, “we”, “us”, and “our” in these notes to condensed consolidated financial statements refer to Verint Systems Inc. and its consolidated subsidiaries. Verint helps brands provide Boundless Customer Engagement™. For more than two decades, the world’s most iconic brands – including more than 85 of the Fortune 100 companies – have trusted Verint to provide the technology and domain expertise they require to effectively build enduring customer relationships. Through the Verint Customer Engagement Cloud Platform, we offer our customers and partners solutions that are based on artificial intelligence (“AI”) and are developed specifically for customer engagement. These solutions automate workflows across enterprise silos to optimize the workforce expense and at the same time drive an elevated consumer experience. These solutions are used by approximately 10,000 organizations in over 175 countries across a diverse set of verticals, including financial services, healthcare, utilities, technology, and government. Our customers include large enterprises with thousands of employees, as well as small to medium sized business (“SMB”) organizations. Verint is headquartered in Melville, New York, and has approximately 30 offices worldwide. We have approximately 4,400 passionate professionals around the globe exclusively focused on helping brands provide Boundless Customer Engagement™. Spin-Off of Cognyte Software Ltd. On February 1, 2021, we completed the previously announced spin-off (the “Spin-Off”) of Cognyte Software Ltd. (“Cognyte”), a company limited by shares incorporated under the laws of the State of Israel whose business and operations consist of our former Cyber Intelligence Solutions business. The Spin-Off of Cognyte was completed by way of a pro rata distribution in which holders of Verint’s common stock, par value $0.001 per share, received one ordinary share of Cognyte, no par value, for every share of common stock of Verint held of record as of the close of business on January 25, 2021. After the distribution, we do not beneficially own any ordinary shares of Cognyte and no longer consolidate Cognyte into our financial results for periods ending after January 31, 2021. The Spin-Off was intended to be generally tax-free to our stockholders for U.S. federal income tax purposes. In connection with the Spin-Off, we and Cognyte entered into a separation and distribution agreement as well as various other agreements that provide a framework for the relationships between the parties going forward, including among others an employee matters agreement, a tax matters agreement, and a transition services agreement, pursuant to which we and Cognyte agreed to provide and/or make available various administrative services and assets to each other for a given period based on each individual service. The performance of services under the transition services agreement was substantially concluded as of January 31, 2022, with only minimal advisory services continuing as of April 30, 2022. Apax Convertible Preferred Stock Investment On December 4, 2019, we announced that an affiliate (the “Apax Investor”) of Apax Partners (“Apax”) would make an investment in us in an amount of up to $400.0 million. Under the terms of the Investment Agreement, dated as of December 4, 2019 (the “Investment Agreement”), on May 7, 2020, the Apax Investor purchased $200.0 million of our Series A convertible preferred stock (“Series A Preferred Stock”). In connection with the completion of the Spin-Off, on April 6, 2021, the Apax Investor purchased $200.0 million of our Series B convertible preferred stock (the “Series B Preferred Stock” and together with the Series A Preferred Stock, the “Preferred Stock”). As of April 30, 2022, Apax’s ownership in us on an as-converted basis was approximately 13.0%. Please refer to Note 9, “Convertible Preferred Stock” for a more detailed discussion of the Apax investment. Preparation of Condensed Consolidated Financial Statements The condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”), except for the recently adopted accounting pronouncements described below. The condensed consolidated statements of operations, comprehensive (loss) income, stockholders’ equity, and cash flows for the periods ended April 30, 2022 and 2021, and the condensed consolidated balance sheet as of April 30, 2022, are not audited but reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown. The condensed consolidated balance sheet as of January 31, 2022 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2022. Certain information and disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and disclosures required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2022 filed with the SEC. The results for interim periods are not necessarily indicative of a full year’s results. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Verint Systems Inc., and our wholly owned or otherwise controlled subsidiaries. Noncontrolling interests in less than wholly owned subsidiaries are reflected within stockholders’ equity on our condensed consolidated balance sheet, but separately from our stockholders’ equity. Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment. We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. In light of the currently unknown extent and duration of the COVID-19 pandemic, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply to certain of our significant accounting policies. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of April 30, 2022 and through the date of this report. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Significant Accounting Policies There have been no material changes in our significant accounting policies during the three months ended April 30, 2022, as compared to the significant accounting policies described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2022. Recently Adopted Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. We adopted this standard as of February 1, 2022, and the adoption did not have any impact on our condensed consolidated financial statements, as the effect will largely depend on the terms of written call options or financings issued or modified in the future. New Accounting Pronouncements Not Yet Effective In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU No. 2020-04 provides optional expedients and exceptions for applying GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB issued Update 2021-01, Reference Rate Reform (Topic 848): Scope. The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. A portion of our indebtedness bears interest at variable interest rates, primarily based on euro-dollar LIBOR. We continue to monitor the impact of the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. We are currently assessing the impact of this standard on our condensed consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which will require companies to apply the definition of a performance obligation under ASC Topic 606, Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. ASU No. 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements but the ultimate impact is dependent on the size and frequency of future acquisitions and does not affect contract assets or contract liabilities related to acquisitions completed prior to the adoption date.

REVENUE RECOGNITION

3 Months Ended

Apr. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

We derive our revenue primarily from providing customers the right to access our cloud-based solutions, the right to use our software for an indefinite or specified period of time, and related services and support based on when access or control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transactions, including mandatory government charges that are passed through to our customers.

We determine revenue recognition through the following five steps:

•Identification of the contract, or contracts, with a customer

•Identification of the performance obligations in the contract

•Determination of the transaction price

•Allocation of the transaction price to the performance obligations in the contract

•Recognition of revenue when, or as, performance obligations are satisfied.

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

Disaggregation of Revenue

The following table provides a disaggregation of our recurring and nonrecurring revenue. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions.

•Recurring revenue primarily consists of:

◦Cloud revenue, which consists primarily of software as a service (“SaaS”) revenue and optional managed services revenue.

▪SaaS revenue consists predominately of bundled SaaS (software access rights with standard managed services) and unbundled SaaS (software licensing rights accounted for as term-based licenses whereby customers have a license to our software with related support for a specific period).

▪Bundled SaaS revenue is recognized over time.

▪Unbundled SaaS revenue is recognized at a point in time, except for the related support which is recognized over time. Unbundled SaaS contracts are eligible for renewal after the initial fixed term, which in most cases is between a one- and three-year time frame. Unbundled SaaS can be deployed in the cloud either by us or a cloud partner.

◦Support revenue, which consists of initial and renewal support.

•Nonrecurring revenue primarily consists of our perpetual licenses, hardware, installation services, and business advisory consulting and training services.


	Three Months Ended April 30,
(in thousands)	2022		2021
Recurring revenue:
Bundled SaaS revenue	$	49,285	$	39,309
Unbundled SaaS revenue	45,445		24,283
Optional managed services revenue	15,913		16,458
Total cloud revenue	110,643		80,050
Support revenue	48,724		64,403
Total recurring revenue	159,367		144,453
Nonrecurring revenue:
Perpetual revenue	33,258		29,323
Professional services revenue	25,281		27,128
Total nonrecurring revenue	58,539		56,451
Total revenue	$	217,906	$	200,904

Contract Balances

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:


(in thousands)	April 30, 2022		January 31, 2022
Accounts receivable, net	$	149,758	$	193,831
Contract assets, net	$	37,993	$	42,688
Long-term contract assets, net (included in other assets)	$	36,549	$	30,510
Contract liabilities	$	258,065	$	271,271
Long-term contract liabilities	$	15,704	$	15,872

We receive payments from customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time. The majority of our contract assets represent unbilled amounts related to multi-year unbundled SaaS contracts and arrangements where our right to consideration is subject to the contractually agreed upon billing schedule. We expect billing and collection of a majority of our contract assets to occur within the next twelve months and asset impairment charges related to contract assets were immaterial in the three months ended April 30, 2022 and 2021. As of April 30, 2022, two partners, both authorized global resellers of our solutions, accounted for more than 10% of our aggregated accounts receivable and contract assets; Partner A was approximately 20% and Partner B was approximately 11%. As of January 31, 2022, Partner A accounted for approximately 14% and Partner B accounted for less than 10% of our aggregated accounts receivable and contract assets. Credit losses relating to these customers have historically been immaterial.

Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract. Revenue recognized during the three months ended April 30, 2022 and 2021 from amounts included in contract liabilities at the beginning of each period was $96.9 million and $97.6 million, respectively.

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less.

We elected to exclude amounts of variable consideration attributable to sales- or usage-based royalties in exchange for a license of our IP from the remaining performance obligations. The timing and amount of revenue recognition for our remaining performance obligations is influenced by several factors, including seasonality, the timing of renewals, the timing of delivery of software licenses, the average length of the contract terms, and foreign currency exchange rates.

The following table provides information about when we expect to recognize our remaining performance obligations:


(in thousands)	April 30, 2022		January 31, 2022
RPO:
Expected to be recognized within 1 year	$	433,052	$	447,428
Expected to be recognized in more than 1 year	278,208		274,404
Total RPO	$	711,260	$	721,832

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

3 Months Ended

Apr. 30, 2022

Earnings Per Share [Abstract]

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

The following table summarizes the calculation of basic and diluted net loss per common share attributable to Verint Systems Inc. for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands, except per share amounts)	2022		2021
Net income	$	574	$	1,094
Net income attributable to noncontrolling interests	288		295
Net income attributable to Verint Systems Inc.	286		799
Dividends on preferred stock	(5,200)		(3,322)
Net loss attributable to Verint Systems Inc. for basic net loss per common share	(4,914)		(2,523)
Dilutive effect of dividends on preferred stock	—		—
Net loss attributable to Verint Systems Inc. for diluted net loss per common share	$	(4,914)	$	(2,523)

Weighted-average shares outstanding:
Basic	64,947		65,661
Dilutive effect of employee equity award plans	—		—
Dilutive effect of 2021 Notes	—		—
Dilutive effect of 2014 Notes	—		—
Dilutive effect of warrants	—		—
Dilutive effect of assumed conversion of preferred stock	—		—
Diluted	64,947		65,661

Net loss per common share attributable to Verint Systems Inc.:
Basic	$	(0.08)	$	(0.04)
Diluted	$	(0.08)	$	(0.04)

We excluded the following weighted-average potential common shares from the calculations of diluted net loss per common share during the applicable periods because their inclusion would have been anti-dilutive:


	Three Months Ended April 30,
(in thousands)	2022	2021
Common shares excluded from calculation:
Stock options and restricted stock-based awards	1,571	1,859
2021 Notes	—	1,254
2014 Notes	—	9,541
Warrants	—	9,865
Series A Preferred Stock	5,498	5,498
Series B Preferred Stock	3,980	1,118

In periods for which we report a net loss attributable to Verint Systems Inc., basic net loss per common share and diluted net loss per common share are identical since the effect of all potential common shares is anti-dilutive and therefore excluded.

For the three months ended April 30, 2022, the average price of our common stock did not exceed the $62.08 per share conversion price of our 2021 Notes (as defined in Note 7, “Long-Term Debt”), and other requirements for the 2021 Notes to be convertible were not met. The 2021 Notes will have a dilutive impact on net income per common share at any time when the average market price of our common stock for a quarterly reporting period exceeds the conversion price.

The Capped Calls (as defined in Note 7, “Long-Term Debt”) do not impact our diluted earnings per common share calculations as their effect would be anti-dilutive. The Capped Calls are generally intended to reduce the potential dilution to our common stock upon any conversion of the 2021 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2021 Notes, in the event that at the time of conversion our common stock price exceeds the $62.08 conversion price, with such reduction and/or offset subject to a cap of $100.00.

Following the completion of the Spin-Off on February 1, 2021, the strike prices of the conversion features of our 2014 Notes and Warrants (each as defined in Note 7, “Long-Term Debt”) were reduced to $40.55 per share and $47.18 per share, respectively, which increased the equivalent number of underlying common shares to 9,541,000 and 9,865,000, respectively.

Our Note Hedges (as defined in Note 7, “Long-Term Debt”) did not impact our diluted earnings per common share calculation because their effect would be anti-dilutive. However, in connection with the maturity of the 2014 Notes, the common shares delivered to us under the Note Hedges neutralized the dilutive effect of the common shares that we issued under the 2014 Notes to settle the conversion premium. As a result, the settlement of the outstanding 2014 Notes did not increase our outstanding common stock.

Our Warrants had a dilutive impact on net income per common share to the extent that we reported net income for the applicable period and the average market value of our common stock exceeded the strike price of the Warrants. The Warrants expired incrementally on a series of expiration dates between August 30, 2021 and January 21, 2022. At each expiration date the Warrants were exercised when the market price per share of our common stock exceeded the strike price of the Warrants, and we issued an aggregate of 293,143 shares of our common stock as part of the cashless exercise of approximately 5,031,000 Warrants. All outstanding Warrants were exercised or expired as of January 31, 2022.

Further details regarding the 2021 Notes, Capped Calls, 2014 Notes, Note Hedges, and the Warrants appear in Note 7, “Long-Term Debt”.

On December 4, 2019, we announced that the Apax Investor would invest up to $400.0 million in us in the form of convertible preferred stock. On May 7, 2020, the purchase of $200.0 million of our Series A Preferred Stock closed. On April 6, 2021, in connection with the completion of the Spin-Off, the Apax Investor purchased $200.0 million of our Series B Preferred Stock. The weighted-average common shares underlying the assumed conversion of the Preferred Stock, on an as-converted basis, were excluded from the calculations of diluted net loss per common share for the three months ended April 30, 2022 and 2021, as their effect would have been anti-dilutive. Further details regarding the Preferred Stock investment appear in Note 9, “Convertible Preferred Stock”.

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS

3 Months Ended

Apr. 30, 2022

Cash, Cash Equivalents, and Short-term Investments [Abstract]

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTSThe following tables summarize our cash, cash equivalents, and short-term investments as of April 30, 2022 and January 31, 2022:


	April 30, 2022
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	184,944	$	—	$	—	$	184,944
Money market funds	25,135		—		—		25,135
Commercial paper	74,967		—		—		74,967
Total cash and cash equivalents	$	285,046	$	—	$	—	$	285,046

Short-term investments:
Bank time deposits	$	745	$	—	$	—	$	745
Total short-term investments	$	745	$	—	$	—	$	745


	January 31, 2022
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	201,769	$	—	$	—	$	201,769
Money market funds	127,041		—		—		127,041
Commercial paper	29,995		—		—		29,995
Total cash and cash equivalents	$	358,805	$	—	$	—	$	358,805

Short-term investments:
Bank time deposits	$	765	$	—	$	—	$	765
Total short-term investments	$	765	$	—	$	—	$	765

Bank time deposits which are reported within short-term investments consist of deposits held outside of the United States with maturities of greater than 90 days, or without specified maturity dates which we intend to hold for periods in excess of 90 days. All other bank deposits are included within cash and cash equivalents.

During the three months ended April 30, 2022 and 2021, proceeds from maturities and sales of short-term investments were $0.3 million and $45.6 million, respectively.

BUSINESS COMBINATIONS

3 Months Ended

Apr. 30, 2022

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATIONS

Three Months Ended April 30, 2022

We did not complete any business combinations during the three months ended April 30, 2022.

Year Ended January 31, 2022

Conversocial Limited

On August 23, 2021, we completed the acquisition of all of the outstanding shares of Conversocial Limited (together with its subsidiaries, “Conversocial”), a leading messaging platform that enables brands to deliver superior customer experiences. Conversocial has offices in London, United Kingdom and New York, New York.

The purchase price consisted of (i) $53.4 million of cash paid at closing, funded from cash on hand, partially offset by $3.2 million of Conversocial’s cash received in the acquisition, resulting in net cash consideration at closing of $50.2 million; and (ii) $0.2 million of other purchase price adjustments. The purchase price for Conversocial was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date, with the remaining unallocated purchase price recorded as goodwill. The fair values assigned to identifiable intangible assets acquired were

determined primarily by using the income approach, which discounts the expected future cash flows to present value using estimates and assumptions determined by management.

Among the factors contributing to the recognition of goodwill as a component of the Conversocial purchase price allocation were synergies in products and technologies, and the addition of a skilled, assembled workforce. The acquisition resulted in the recognition of $31.6 million of goodwill, of which $0.5 million is deductible for income tax purposes and $31.1 million is not deductible.

In connection with the purchase price allocation for Conversocial, the estimated fair value of undelivered performance obligations under customer contracts assumed in the acquisition was determined utilizing a cost build-up approach. The cost build-up approach calculated fair value by estimating the costs required to fulfill the obligations plus a reasonable profit margin, which approximates the amount that we believe would be required to pay a third party to assume the performance obligations. The estimated costs to fulfill the performance obligations were based on the historical direct costs for delivering similar services. As a result, in allocating the purchase price, we recorded $3.4 million of current and long-term contract liabilities, representing the estimated fair value of undelivered performance obligations for which payment had been received, which will be recognized as revenue as the underlying performance obligations are delivered. For undelivered performance obligations for which payment had not been received, we recorded a $1.2 million asset as a component of the purchase price allocation, representing the estimated fair value of these obligations, $0.7 million of which is included within prepaid expenses and other current assets and $0.5 million of which is included in other assets. We are amortizing this asset over the underlying delivery periods, which adjusts the revenue we recognize for providing these services to its estimated fair value.

Transaction and related costs directly attributable to the acquisition of Conversocial, consisting primarily of professional fees and integration expenses, were $0.9 million for the three months ended April 30, 2022, and were expensed as incurred and are included in selling, general and administrative expenses.

Revenue and net income (loss) attributable to Conversocial included in our consolidated statement of operations for the three months ended April 30, 2022 was not material.

The purchase price allocation for Conversocial has been prepared on a preliminary basis and changes to the allocation may occur as additional information becomes available during the measurement period (up to one year from the acquisition date). Fair values still under review include values assigned to identifiable intangible assets, deferred income taxes, and reserves for uncertain income tax positions.

The following table sets forth the components and the allocation of the purchase price for our acquisition of Conversocial, including adjustments identified subsequent to the valuation date, none of which were material:


(in thousands)	Amount
Components of Purchase Price:
Cash	$	53,409
Other purchase price adjustments	(190)
Total purchase price	$	53,219

Allocation of Purchase Price:
Net tangible assets (liabilities):
Accounts receivable	$	1,694
Other current assets, including cash acquired	5,302
Other assets	511
Current and other liabilities	(1,945)
Contract liabilities — current and long-term	(3,410)
Deferred income taxes	(407)
Net tangible assets	1,745
Identifiable intangible assets:
Customer relationships	9,800
Developed technology	9,900
Trademarks and trade names	200
Total identifiable intangible assets	19,900
Goodwill	31,574
Total purchase price allocation	$	53,219

The acquired customer relationships, developed technology, and trademarks and trade names were assigned estimated useful lives of seven years, five years, and one year, respectively, the weighted average of which is approximately 5.9 years. The acquired identifiable intangible assets are being amortized on a straight-line basis, which we believe approximates the pattern in which the assets are utilized, over their estimated useful lives.

Other Business Combinations

Year Ended January 31, 2022

During the three months ended July 31, 2021, we completed the acquisition of certain assets from a leader in contact center hiring automation that qualified as a business combination. This transaction resulted in increases to goodwill, customer relationships, and acquired technology intangible assets, but was not material to our condensed consolidated financial statements, and as a result, additional business combination disclosures for this acquisition have been omitted. There were no other business combinations during the year ended January 31, 2022.

Other Business Combination Information

For the three months ended April 30, 2022 and 2021, we recorded a benefit of $0.2 million and a charge of $0.2 million, respectively, within selling, general and administrative expenses for changes in the fair values of contingent consideration obligations associated with business combinations, which was based on our historical business combinations achieving certain objectives and milestones. The aggregate fair values of the remaining contingent consideration obligations associated with business combinations was $4.8 million at April 30, 2022, which was recorded within accrued expenses and other current liabilities.

Payments of contingent consideration earned under these agreements were $2.7 million and $7.6 million for the three months ended April 30, 2022 and 2021, respectively.

INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Apr. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

Acquisition-related intangible assets, excluding certain intangible assets previously acquired that were fully amortized and removed from our condensed consolidated balance sheets, consisted of the following as of April 30, 2022 and January 31, 2022:


	April 30, 2022
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	456,247	$	(373,221)	$	83,026
Acquired technology	224,284		(203,193)		21,091
Trade names	5,146		(4,425)		721
Distribution network	2,440		(2,440)		—
Total intangible assets	$	688,117	$	(583,279)	$	104,838


	January 31, 2022
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	467,408	$	(375,827)	$	91,581
Acquired technology	229,501		(203,895)		25,606
Trade names	5,677		(4,610)		1,067
Distribution network	2,440		(2,440)		—
Total intangible assets	$	705,026	$	(586,772)	$	118,254

Total amortization expense recorded for acquisition-related intangible assets was $10.5 million and $11.7 million for the three months ended April 30, 2022 and 2021, respectively. The reported amount of net acquisition-related intangible assets can fluctuate from the impact of changes in foreign currency exchange rates on intangible assets not denominated in U.S. dollars.

Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows:


(in thousands)
Years Ending January 31,	Amount
2023 (remainder of year)	$	29,189
2024	30,476
2025	14,586
2026	13,360
2027	9,466
2028 and thereafter	7,761
Total	$	104,838

There were no impairments of acquired intangible assets during the three months ended April 30, 2022 and 2021.

Goodwill activity for the three months ended April 30, 2022 was as follows:


(in thousands)	Amount
Three Months Ended April 30, 2022:
Goodwill, gross, at January 31, 2022	$	1,409,464
Accumulated impairment losses through January 31, 2022	(56,043)
Goodwill, net, at January 31, 2022	1,353,421
Foreign currency translation and other	(25,977)
Goodwill, net, at April 30, 2022	$	1,327,444

Balance at April 30, 2022
Goodwill, gross, at April 30, 2022	$	1,383,487
Accumulated impairment losses through April 30, 2022	(56,043)
Goodwill, net, at April 30, 2022	$	1,327,444

LONG-TERM DEBT

3 Months Ended

Apr. 30, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT

The following table summarizes our long-term debt at April 30, 2022 and January 31, 2022:


	April 30,		January 31,
(in thousands)	2022		2022
2021 Notes	$	315,000	$	315,000
Term Loan	100,000		100,000
Less: unamortized debt discounts and issuance costs	(7,598)		(8,046)
Total debt	407,402		406,954
Less: current maturities	—		—
Long-term debt	$	407,402	$	406,954

2021 Notes

On April 9, 2021, we issued $315.0 million in aggregate principal amount of 0.25% convertible senior notes due April 15, 2026 (the “2021 Notes”), unless earlier converted by the holders pursuant to their terms. The 2021 Notes are unsecured and pay interest in cash semiannually in arrears at a rate of 0.25% per annum.

We used a portion of the net proceeds from the issuance of the 2021 Notes to pay the costs of the capped call transactions described below. We also used a portion of the net proceeds from the issuance of the 2021 Notes, together with the net proceeds from the April 6, 2021 issuance of $200.0 million of Series B Preferred Stock, to repay a portion of the outstanding indebtedness under our Credit Agreement described below, to terminate an interest rate swap agreement, and to repurchase shares of our common stock. The remainder is being used for working capital and other general corporate purposes.

The 2021 Notes are convertible into shares of our common stock at an initial conversion rate of 16.1092 shares per $1,000 principal amount of 2021 Notes, which represents an initial conversion price of approximately $62.08 per share, subject to adjustment upon the occurrence of certain events, and subject to customary anti-dilution adjustments. Prior to January 15, 2026, the 2021 Notes will be convertible only upon the occurrence of certain events and during certain periods, and will be convertible thereafter at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2021 Notes. Upon conversion of the 2021 Notes, holders will receive cash up to the aggregate principal amount, with any remainder to be settled with cash or common stock, or a combination thereof, at our election. As of April 30, 2022, the 2021 Notes were not convertible.

We incurred approximately $8.9 million of issuance costs in connection with the 2021 Notes, which were deferred and are presented as a reduction of long-term debt, and which are being amortized as interest expense over the term of the 2021 Notes. Including the impact of the deferred debt issuance costs, the effective interest rate on the 2021 Notes was approximately 0.83% at April 30, 2022.

Based on the closing market price of our common stock on April 30, 2022, the if-converted value of the 2021 Notes was less than their aggregate principal amount.

2014 Notes

On June 18, 2014, we issued $400.0 million in aggregate principal amount of 1.50% convertible senior notes, with a maturity date of June 1, 2021 (the “2014 Notes”). Net proceeds from the 2014 Notes after underwriting discounts were $391.9 million. The 2014 Notes were unsecured and paid interest in cash semiannually in arrears at a rate of 1.50% per annum.

During the three months ended July 31, 2020, we repurchased $13.1 million principal amount of the 2014 Notes (the “Repurchased 2014 Notes”) in open market transactions for an aggregate of $13.0 million in cash, resulting in a debt extinguishment loss of $0.1 million, and a $0.2 million charge to additional paid-in-capital.

In connection with the maturity of the 2014 Notes on June 1, 2021, we paid an aggregate of $389.8 million in cash for the settlement of the 2014 Notes, which included $386.9 million in satisfaction of the outstanding principal of the 2014 Notes and $2.9 million related to the final interest payment on the 2014 Notes. We funded the repayment of the outstanding principal amount of the 2014 Notes and accrued interest thereon using cash we had placed in escrow on February 26, 2021. Additionally, the 2014 Notes had an incremental conversion value of $57.7 million as the market value per share of our common stock, as measured under the terms of the 2014 Notes, was greater than the conversion price of the 2014 Notes. We issued approximately

1,250,000 shares of common stock to the holders of the 2014 Notes as payment of the conversion premium, which we issued from treasury stock.

Capped Calls, Note Hedges and Warrants

Capped Calls

In connection with the issuance of the 2021 Notes, on April 6, 2021 and April 8, 2021, we entered into capped call transactions (the “Capped Calls”) with certain counterparties. The Capped Calls are generally intended to reduce the potential dilution to our common stock upon any conversion of the 2021 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2021 Notes, in the event that at the time of conversion our common stock price exceeds the conversion price, with such reduction and/or offset subject to a cap.

The Capped Calls exercise price is equal to the $62.08 initial conversion price of each of the 2021 Notes, and the cap price is $100.00, each subject to certain adjustments under the terms of the Capped Calls. Our exercise rights under the Capped Calls generally trigger upon conversion of the 2021 Notes, and the Capped Calls terminate upon maturity of the 2021 Notes, or the first day the 2021 Notes are no longer outstanding. As of April 30, 2022, no Capped Calls have been exercised.

Pursuant to their terms, the Capped Calls qualify for classification within stockholders’ equity, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $41.1 million for the Capped Calls, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital.

Note Hedges and Warrants

Concurrently with the issuance of the 2014 Notes, we entered into convertible note hedge transactions (the “Note Hedges”) and sold warrants (the “Warrants”). The combination of the Note Hedges and the Warrants served to increase the effective initial conversion price for the 2014 Notes to $75.00 per share. Subsequent to the Spin-Off, as a result of conversion rate adjustments, the Note Hedges and the Warrants served to increase the effective conversion price for the 2014 Notes to $47.18 per share. The Note Hedges and Warrants were each separate instruments from the 2014 Notes.

Note Hedges

Pursuant to the Note Hedges, we purchased call options on our common stock, under which we had the right to acquire from the counterparties up to approximately 6,205,000 shares of our common stock, subject to customary anti-dilution adjustments, at a price of $64.46, which equaled the initial conversion price of the 2014 Notes. As a result of the Spin-Off, on February 1, 2021, the call options on our stock were adjusted to allow us to purchase up to 9,865,000 shares of our common stock at a price of $40.55, which was equal to the adjusted conversion price of the 2014 Notes. We were permitted to settle the Note Hedges in cash, shares of our common stock, or a combination thereof, at our option, and the Note Hedges were intended to reduce our exposure to potential dilution upon conversion of the 2014 Notes. We paid $60.8 million for the Note Hedges, which was recorded as a charge to additional paid-in capital. Our exercise rights under the Note Hedges were automatically triggered upon conversion of any 2014 Notes and the Note Hedges otherwise terminated upon maturity of the 2014 Notes on June 1, 2021. In connection with the maturity of the 2014 Notes on June 1, 2021, we received approximately 1,250,000 shares of our common stock from the counterparties under the Note Hedges, which offset the dilution resulting from the stock settlement of the conversion premium on the 2014 Notes as the market value per share of our common stock, as measured under the terms of the Note Hedges, was greater than the strike price of the Note Hedges.

The Repurchased 2014 Notes acquired during the three months ended July 31, 2020 as described above did not change the number of common shares subject to the Note Hedges as the counterparties agreed that the options under the Note Hedges remained outstanding notwithstanding such repurchase. Upon maturity of the 2014 Notes, we received approximately 42,000 shares of our common stock from the counterparties to the Note Hedges as reimbursement for the in-the-money portion of the Repurchased 2014 Notes.

Warrants

We sold the Warrants to several counterparties. The Warrants initially provided the counterparties rights to acquire from us up to approximately 6,205,000 shares of our common stock at a price of $75.00 per share. As a result of the Spin-Off, the terms of the Warrants were adjusted to provide the counterparties the rights to acquire from us up to approximately 9,865,000 shares of our common stock at a price of $47.18 per share. Proceeds from the sale of the Warrants were $45.2 million and were recorded

as additional paid-in capital. The Warrants expired incrementally on a series of expiration dates between August 30, 2021 and January 21, 2022. At each expiration date, the Warrants were exercised when the market price per share of our common stock exceeded the strike price of the Warrants, and we issued an aggregate of 293,143 shares of our common stock as part of the cashless exercise of approximately 5,031,000 Warrants. The Warrants had a dilutive effect on net income per share to the extent that the average market value of our common stock, as measured under the terms of the Warrants, exceeded the strike price of the Warrants. All outstanding Warrants were exercised or expired as of January 31, 2022.

The Note Hedges and Warrants both qualified for classification within stockholders’ equity, and therefore no changes to their respective fair values were recorded in our condensed consolidated statements of operations for any period.

Credit Agreement

On June 29, 2017, we entered into a credit agreement with certain lenders and terminated a prior credit agreement. The credit agreement was amended in 2018, 2020, and 2021, as further described below (as amended, the “Credit Agreement”).

The Credit Agreement provides for $725.0 million of senior secured credit facilities, comprised of a $425.0 million term loan maturing on June 29, 2024 (the “Term Loan”), of which $100.0 million was outstanding at April 30, 2022 and January 31, 2022, and a $300.0 million revolving credit facility maturing on April 9, 2026 (the “Revolving Credit Facility”), none of which was drawn as of April 30, 2022 and January 31, 2022. The Revolving Credit Facility replaced our prior $300.0 million revolving credit facility (the “Prior Revolving Credit Facility”) and is subject to increase and reduction from time to time according to the terms of the Credit Agreement. The majority of the proceeds from the Term Loan were used to repay all outstanding term loans under our prior credit agreement.

The Term Loan was subject to an original issuance discount of approximately $0.5 million, which is being amortized as interest expense over the term of the Term Loan using the effective interest method.

Interest rates on loans under the Credit Agreement are periodically reset, at our option, at either a Eurodollar Rate or an ABR Rate (each as defined in the Credit Agreement), plus in each case a margin. On January 31, 2018, we entered into an amendment to the Credit Agreement (the “2018 Amendment”) providing for, among other things, a reduction of the interest rate margins on the Term Loan from 2.25% to 2.00% for Eurodollar loans, and from 1.25% to 1.00% for ABR loans.

During the three months ended April 30, 2021, in addition to our regular quarterly $1.1 million principal payment, we repaid $309.0 million of our Term Loan, reducing the outstanding balance to $100.0 million. As a result, $1.8 million of deferred debt issuance costs and $0.2 million of unamortized discount associated with the Term Loan were written off, and are included within losses on early retirements of debt on our condensed consolidated statement of operations for the three months ended April 30, 2021. Optional prepayments of loans under the Credit Agreement are generally permitted without premium or penalty.

On April 9, 2021, we amended the Credit Agreement (the “2021 Amendment”), pursuant to which we replaced the Prior Revolving Credit Facility, which would otherwise have matured on June 29, 2022, with the current $300.0 million Revolving Credit Facility maturing on April 9, 2026.

The maturity dates of the Term Loan and Prior Revolving Credit Facility would have been accelerated to March 1, 2021 if on such date any 2014 Notes remained outstanding, unless such outstanding 2014 Notes were cash collateralized pursuant to a second amendment to the Credit Agreement (the “2020 Amendment”), entered into on June 8, 2020. Pursuant to the 2020 Amendment, we were permitted to effect the Spin-Off within the parameters set forth in the Credit Agreement, as amended.

As of April 30, 2022, the interest rate on the Term Loan was 2.46%. Taking into account the impact of the original issuance discount and related deferred debt issuance costs, the effective interest rate on the Term Loan was approximately 2.66% at April 30, 2022. As of January 31, 2022, the interest rate on the Term Loan was 2.10%.

For borrowings under the Revolving Credit Facility, the margin is determined by reference to our Consolidated Total Debt to Consolidated EBITDA (each as defined in the Credit Agreement) leverage ratio (the "Leverage Ratio"). In addition, under the Revolving Credit Facility, we are required to pay a commitment fee with respect to unused availability at rates per annum determined by reference to our Leverage Ratio.

Our obligations under the Credit Agreement are guaranteed by each of our direct and indirect existing and future material domestic wholly owned restricted subsidiaries, and are secured by a security interest in substantially all of our assets and the assets of the guarantor subsidiaries, subject to certain exceptions.

The Credit Agreement contains certain customary affirmative and negative covenants for credit facilities of this type. The Credit Agreement also contains a financial covenant that, solely with respect to the Revolving Credit Facility, requires us to maintain a Leverage Ratio of no greater than 4.50 to 1. The limitations imposed by the covenants are subject to certain exceptions as detailed in the Credit Agreement.

The Credit Agreement provides for events of default with corresponding grace periods that we believe are customary for credit facilities of this type. Upon an event of default, all of our obligations owed under the Credit Agreement may be declared immediately due and payable, and the lenders’ commitments to make loans under the Credit Agreement may be terminated.

Credit Agreement Issuance and Amendment Costs

We incurred debt issuance costs of approximately $6.8 million in connection with the Credit Agreement, of which $4.1 million were associated with the Term Loan, and $2.7 million were associated with the Prior Revolving Credit Facility, which were deferred and are being amortized as interest expense over the terms of the facilities. During the year ended January 31, 2018, we wrote off $0.2 million of deferred debt issuance costs associated with the Term Loan as a result of the 2018 Amendment. During the year ended January 31, 2021, we incurred $2.1 million of debt modification costs related to the 2020 Amendment, $1.2 million of which were expensed, and $0.9 million of which were deferred (comprised of $0.5 million associated with the Term Loan, and $0.4 million associated with the Prior Revolving Credit Facility), and which are being amortized along with the previously deferred debt issuance costs.

At the time of the 2021 Amendment, there were $1.3 million of unamortized deferred debt issuance costs associated with the Prior Revolving Credit Facility, of which $0.8 million were associated with commitments under the Prior Revolving Credit Facility provided by lenders that are continuing to provide commitments under the current Revolving Credit Facility and therefore continued to be deferred, and which are now being amortized over the term of the Revolving Credit Facility. The remaining $0.5 million of unamortized deferred debt issuance costs associated with the Prior Revolving Credit Facility were written off and are included within losses on early retirements of debt on our condensed consolidated statement of operations for the three months ended April 30, 2021. We incurred $1.5 million of debt modification costs related to the 2021 Amendment, all of which are associated with the Revolving Credit Facility, which have been deferred and are being amortized along with the previously deferred debt issuance costs over the term of the Revolving Credit Facility.

Deferred debt issuance costs associated with the Term Loan are being amortized using the effective interest rate method, and deferred debt issuance costs associated with the Revolving Credit Facility are being amortized on a straight-line basis.

Future Principal Payments on the Term Loan

As a result of the significant Term Loan principal payments made during the three months ended April 30, 2021, no further principal payments are required prior to the maturity of the Term Loan on June 29, 2024.

Interest Expense

The following table presents the components of interest expense incurred on the 2021 Notes, the 2014 Notes, and on borrowings under our Credit Agreement, for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
2021 Notes:
Interest expense at 0.25% coupon rate	$	195	$	48
Amortization of deferred debt issuance costs	439		105
Total Interest Expense - 2021 Notes	$	634	$	153

2014 Notes:
Interest expense at 1.50% coupon rate	$	—	$	1,451
Amortization of deferred debt issuance costs	—		391
Total Interest Expense - 2014 Notes	$	—	$	1,842

Borrowings under Credit Agreement:
Interest expense at contractual rates	$	560	$	1,760
Impact of interest rate swap reclassified from accumulated other comprehensive loss	—		1,014
Amortization of debt discounts	5		3
Amortization of deferred debt issuance costs	211		272
Total Interest Expense - Borrowings under Credit Agreement	$	776	$	3,049

On May 1, 2020, our interest rate swap agreement no longer qualified as a cash flow hedge for accounting purposes and as such, accumulated deferred losses on our interest rate swap that were previously recorded as a component of accumulated other comprehensive loss were being reclassified to the condensed consolidated statement of operations as interest expense over the remaining term of the interest rate swap, as the previously hedged interest payments occurred. On April 13, 2021, we paid $16.5 million to settle the 2018 Swap (as defined in Note 13, “Derivative Financial Instruments”) prior to its June 2024 maturity, and reclassified the remaining $15.7 million of pretax accumulated deferred losses from accumulated other comprehensive loss within stockholders’ equity to other income (expense) on our condensed consolidated statement of operations for the three months ended April 30, 2021. The associated $3.7 million deferred tax asset was reclassified from accumulated other comprehensive loss and netted against income taxes receivable during the year ended January 31, 2022.

Please refer to Note 13, “Derivative Financial Instruments” for further information regarding our interest rate swap agreement.

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION

3 Months Ended

Apr. 30, 2022

Condensed Financial Information Disclosure [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Condensed Consolidated Balance Sheets

Inventories consisted of the following as of April 30, 2022 and January 31, 2022:


	April 30,		January 31,
(in thousands)	2022		2022
Raw materials	$	3,508	$	3,001
Work-in-process	115		150
Finished goods	1,602		2,186
Total inventories	$	5,225	$	5,337

Condensed Consolidated Statements of Operations

Other income, net consisted of the following for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Foreign currency gains (losses), net	$	1,713	$	(541)
Losses on derivative financial instruments, net	—		(14,374)
Change in fair value of future tranche right	—		15,810
Other, net	(39)		3,155
Total other income, net	$	1,674	$	4,050

Please refer to Note 9, “Convertible Preferred Stock” for additional information regarding the future tranche right.

Condensed Consolidated Statements of Cash Flows

The following table provides supplemental information regarding our condensed consolidated cash flows for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Cash paid for interest	$	930	$	4,583
Cash payments of income taxes, net	$	2,238	$	23,035
Cash payments for operating leases	$	12,195	$	4,878
Non-cash investing and financing transactions:
Finance leases of property and equipment	$	12	$	1,678
Accrued but unpaid purchases of property and equipment	$	988	$	2,406
Settlement of Future Tranche Right upon issuance of Series B Preferred Stock	$	—	$	36,962
Retirement of treasury stock	$	—	$	434
Accrued but unpaid purchases of treasury stock	$	453	$	—

CONVERTIBLE PREFERRED STOCK	3 Months Ended
CONVERTIBLE PREFERRED STOCK	Apr. 30, 2022
Equity [Abstract]
CONVERTIBLE PREFERRED STOCK	CONVERTIBLE PREFERRED STOCK On December 4, 2019, we entered into an Investment Agreement with the Apax Investor whereby, subject to certain closing conditions, the Apax Investor agreed to make an investment in us in an amount up to $400.0 million as follows: •On May 7, 2020 (the “Series A Closing Date”), we issued a total of 200,000 shares of our Series A Preferred Stock for an aggregate purchase price of $200.0 million, or $1,000 per share, to the Apax Investor. In connection therewith, we incurred direct and incremental costs of $2.7 million, including financial advisory fees, closing costs, legal fees, and other offering-related costs. These direct and incremental costs reduced the carrying amount of the Series A Preferred Stock. •In connection with the completion of the Spin-Off, on April 6, 2021 (the “Series B Closing Date” and together with the Series A Closing Date, as applicable, the “Applicable Closing Date”), we issued a total of 200,000 shares of our Series B Preferred Stock for an aggregate purchase price of $200.0 million, or $1,000 per share, to the Apax Investor. In connection therewith, we incurred direct and incremental costs of $1.3 million, including financial advisory fees, closing costs, legal fees, and other offering-related costs. These direct and incremental costs reduced the carrying amount of the Series B Preferred Stock. Each of the rights, preferences, and privileges of the Series A Preferred Stock and Series B Preferred Stock are set forth in separate certificates of designation filed with the Secretary of State of the State of Delaware on the Applicable Closing Date. Voting Rights Holders of the Preferred Stock have the right to vote on matters submitted to a vote of the holders of our common stock, on an as-converted basis; however, in no event will the holders of Preferred Stock have the right to vote shares of the Preferred Stock on an as-converted basis in excess of 19.9% of the voting power of the common stock outstanding immediately prior to December 4, 2019. Dividends and Liquidation Rights The Preferred Stock ranks senior to the shares of our common stock with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of our affairs. Shares of Preferred Stock have a liquidation preference of the greater of $1,000 per share or the amount that would be received if the shares are converted at the then applicable conversion price at the time of such liquidation. Each series of Preferred Stock pays dividends at an annual rate of 5.2% until the 48-month anniversary of the Series A Closing Date, and thereafter at a rate of 4.0%, subject to adjustment under certain circumstances. Dividends on the Preferred Stock are cumulative and payable semi-annually in arrears in cash. All dividends that are not paid in cash will remain accumulated dividends with respect to each share of Preferred Stock. The dividend rate is subject to increase (i) to 6.0% per annum in the event the number of shares of common stock into which the Preferred Stock could be converted exceeds 19.9% of the voting power of outstanding common stock on the Series A Closing Date (unless we obtain shareholder approval of the issuance of common stock upon conversion of the Preferred Stock) and (ii) by 1.0% each year, up to a maximum dividend rate of 10.0% per annum, in the event we fail to satisfy our obligations to redeem the Preferred Stock in specified circumstances. For the three months ended April 30, 2022, we paid $10.4 million of preferred stock dividends, all of which was accrued as of January 31, 2022, and there were $6.9 million of cumulative undeclared and unpaid preferred stock dividends at April 30, 2022. There were no accrued dividends as of April 30, 2022. We reflected $5.2 million and $3.3 million of preferred stock dividends in our condensed consolidated results of operations, for purposes of computing net loss attributable to Verint Systems Inc. common shares, for the three months ended April 30, 2022 and 2021, respectively. Conversion The Series A Preferred Stock was initially convertible into common stock at the election of the holder, subject to certain conditions, at an initial conversion price of $53.50 per share. The initial conversion price represented a conversion premium of 17.1% over the volume-weighted average price per share of our common stock over the 45 consecutive trading days immediately prior to the date of the Investment Agreement. In accordance with the Investment Agreement, the Series A Preferred Stock did not participate in the Spin-Off distribution of the Cognyte shares, which occurred on February 1, 2021, and the Series A Preferred Stock conversion price was instead adjusted to $36.38 per share based on the ratio of the relative trading prices of Verint and Cognyte following the Spin-Off. The Series B Preferred Stock is convertible at a conversion price of $50.25, based in part on our trading price over the 20 day trading period following the Spin-Off. As of April 30, 2022, the maximum number of shares of common stock that could be required to be issued upon conversion of the outstanding shares of Preferred Stock was approximately 9.6 million shares and Apax’s ownership in us on an as-converted basis was approximately 13.0%. At any time after 36 months following the Applicable Closing Date, we will have the option to require that all (but not less than all) of the then-outstanding shares of Preferred Stock of the series convert into common stock if the volume-weighted average price per share of the common stock for at least 30 trading days in any 45 consecutive trading day period exceeds 175% of the then-applicable conversion price of such series (a “Mandatory Conversion”). We may redeem any or all of the Preferred Stock of a series for cash at any time after the 72-month anniversary of the Applicable Closing Date at a redemption price equal to 100% of the liquidation preference of the shares of the Preferred Stock, plus any accrued and unpaid dividends to, but excluding, the redemption date, plus a make-whole amount designed to allow the Apax Investor to earn a total 8.0% internal rate of return on such shares. The Apax Investor has agreed to restrictions on its ability to dispose of shares of the Preferred Stock until the earlier of (1) the 36-month anniversary of the Series A Closing Date or (2) the 24-month anniversary of the consummation of the Spin-Off (the “Preferred Stock Restricted Period”). Following the Preferred Stock Restricted Period, the Preferred Stock may not be sold or transferred without our prior written consent. The Apax Investor had also agreed to restrictions on its ability to dispose of the common stock issued upon conversion of the Preferred Stock. The common stock could not be disposed of until the earlier of (1) the 12-month anniversary of consummation of the Spin-Off or (2) the 24-month anniversary of the Series A Closing Date. These restrictions did not apply to certain transfers to one or more permitted co-investors or transfers or pledges of the Preferred Stock or common stock pursuant to the terms of specified margin loans to be entered into by the Apax Investor as well as transfers effected pursuant to a merger, consolidation, or similar transaction consummated by us and transfers that are approved by our board of directors. At any time after the 102-month anniversary of the Applicable Closing Date or upon the occurrence of a change of control triggering event (as defined in the certificates of designation), the holders of the applicable series of Preferred Stock will have the right to cause us to redeem all of the outstanding shares of Preferred Stock for cash at a redemption price equal to 100% of the liquidation preference of the shares of such series, plus any accrued and unpaid dividends to, but excluding, the redemption date. Therefore, the Preferred Stock has been classified as temporary equity on our condensed consolidated balance sheets as of April 30, 2022 and January 31, 2022, separate from permanent equity, as the potential required repurchase of the Preferred Stock, however remote in likelihood, is not solely under our control. As of April 30, 2022, the Preferred Stock was not redeemable, and we have concluded that it is currently not probable of becoming redeemable, including from the occurrence of a change in control triggering event. The holders’ redemption rights which occur at the 102-month anniversary of the Applicable Closing Date are not considered probable because there is a more than remote likelihood that the Mandatory Conversion may occur prior to such redemption rights. We therefore did not adjust the carrying amount of the Preferred Stock to its current redemption amount, which was its liquidation preference at April 30, 2022 plus accrued and unpaid dividends. As of April 30, 2022, the stated value of the liquidation preference for each series of Preferred Stock was $200.0 million and cumulative, unpaid dividends on each series of Preferred Stock was $3.5 million. Future Tranche Right We determined that our obligation to issue and the Apax Investor’s obligation to purchase 200,000 shares of the Series B Preferred Stock in connection with the completion of the Spin-Off and the satisfaction of other customary closing conditions (the “Future Tranche Right”) met the definition of a freestanding financial instrument as the Future Tranche Right is legally detachable and separately exercisable from the Series A Preferred Stock. At issuance, we allocated a portion of the proceeds from the issuance of the Series A Preferred Stock to the Future Tranche Right based upon its fair value at such time, with the remaining proceeds being allocated to the Series A Preferred Stock. The Future Tranche Right was remeasured at fair value each reporting period until the settlement of the right (at the time of the issuance of the Series B Preferred Stock), and changes in its fair value were recognized as a non-cash charge or benefit within other income (expense), net on the condensed consolidated statement of operations. At the Series A Closing Date, the Future Tranche Right was recorded as an asset of $3.4 million, as the purchase price of the Series B Preferred Stock was greater than its estimated fair value at the expected settlement date. This resulted in a $203.4 million carrying value, before direct and incremental issuance costs, for the Series A Preferred Stock. Immediately prior to the issuance of the Series B Preferred Stock the Future Tranche Right was remeasured to fair value and as a result we recorded a non-cash benefit of $15.8 million related to the change in fair value of the Future Tranche Right for the three months ended April 30, 2021, within other income (expense), net. Upon the issuance of the Series B Preferred Stock in April 2021, the Future Tranche Right was settled, resulting in a reclassification of the $37.0 million fair value of the Future Tranche Right liability at that time to the carrying value of the Series B Preferred Stock. This resulted in a $237.0 million carrying value, before direct and incremental issuance costs, for the Series B Preferred Stock. As a result of the issuance of the Series B Preferred Stock, we no longer recognize changes in the fair value of the Future Tranche Right in our condensed consolidated statements of operations.

STOCKHOLDERS' EQUITY

3 Months Ended

Apr. 30, 2022

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Common Stock Dividends

We did not declare or pay any cash dividends on our common stock during the three months ended April 30, 2022 and 2021. Under the terms of our Credit Agreement, we are subject to certain restrictions on declaring and paying cash dividends on our common stock.

In connection with the Spin-Off, each holder of Verint’s common stock received one ordinary share of Cognyte for every share of common stock of Verint held of record as of the close of business on January 25, 2021.

Stock Repurchase Programs

On March 31, 2021, we announced that our board of directors had authorized a stock repurchase program whereby we were authorized to repurchase up to a number of shares of common stock approximately equal to the number of shares to be issued as equity compensation during the fiscal year ending January 31, 2022. During the three months ended April 30, 2021, we repurchased 1,600,000 shares of our common stock at a cost of $75.4 million under this program. There were no repurchases under this program subsequent to April 30, 2021, and this program expired on January 31, 2022.

On December 2, 2021, we announced that our board of directors had authorized a new stock repurchase program for the fiscal year ending January 31, 2023 whereby we may repurchase up to 1,500,000 shares of common stock to offset dilution from our equity compensation program for such fiscal year. To further offset such dilution as well as other dilutive transactions, on March 22, 2022, our board of directors authorized an additional 500,000 shares of common stock to be repurchased under this program. During the three months ended April 30, 2022, we repurchased 2,000,000 shares of our common stock at a cost of $105.7 million under this program, with $0.5 million of these repurchases settled in cash in early May 2022. Repurchases were financed with available cash in the United States.

Treasury Stock

Repurchased shares of common stock are typically recorded as treasury stock, at cost, but may from time to time be retired. From time to time, we have purchased common stock from our directors, officers, and other employees to facilitate income tax withholding by us or the payment of income taxes by such holders upon vesting of equity awards occurring during a Company-imposed trading blackout or lockup period. When treasury shares are reissued, they are recorded at the average cost of the treasury shares acquired.

During the three months ended April 30, 2022, we repurchased 2,000,000 shares of our common stock for a cost of $105.7 million under the 2022 stock repurchase program described above.

During the three months ended April 30, 2021, we repurchased approximately 1,601,000 shares of our common stock for a cost of $75.5 million, which included $75.4 million of stock repurchases under the 2021 stock repurchase program described above and other repurchases to facilitate income tax withholding or payments as described above. On March 30, 2021, our board of directors approved the retirement of such repurchased shares of common stock and any other shares held as treasury stock, at management’s discretion. During the three months ended April 30, 2021, we retired 1,058,300 shares that had been repurchased under the 2021 stock repurchase program described above with a cost of $49.6 million, which was recorded as a reduction of common stock and additional paid-in capital. These shares were returned to the status of authorized and unissued shares.

At April 30, 2022, we held 2,000,000 shares of treasury stock with a cost of $105.7 million.

Issuance of Convertible Preferred Stock

On December 4, 2019, in conjunction with the planned separation of our businesses into two independent publicly traded companies, we announced that an affiliate of Apax Partners would invest up to $400.0 million in us, in the form of convertible preferred stock. Under the terms of the Investment Agreement, the Apax Investor purchased $200.0 million of our Series A Preferred Stock, which closed on May 7, 2020. In connection with the completion of the Spin-Off, the Apax Investor purchased $200.0 million of our Series B Preferred Stock, which closed on April 6, 2021. As of April 30, 2022, Apax’s ownership in us on an as-converted basis was approximately 13.0%. Please refer to Note 9, “Convertible Preferred Stock” for a more detailed discussion of the Apax investment.

Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income includes items such as foreign currency translation adjustments and unrealized gains and losses on certain marketable securities and derivative financial instruments designated as hedges. Accumulated other comprehensive (loss) income is presented as a separate line item in the stockholders’ equity section of our condensed consolidated balance sheets. Accumulated other comprehensive (loss) income items have no impact on our net income (loss) as presented in our condensed consolidated statements of operations.

The following table summarizes changes in the components of our accumulated other comprehensive loss for the three months ended April 30, 2022:


(in thousands)	Unrealized Losses on Foreign Exchange Contracts Designated as Hedges		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive loss at January 31, 2022	$	(48)	$	(118,467)	$	(118,515)
Other comprehensive loss before reclassifications	(188)		(29,890)		(30,078)
Amounts reclassified out of accumulated other comprehensive loss	(33)		—		(33)
Net other comprehensive loss	(155)		(29,890)		(30,045)
Accumulated other comprehensive loss at April 30, 2022	$	(203)	$	(148,357)	$	(148,560)

All amounts presented in the table above are net of income taxes, if applicable. The accumulated net losses in foreign currency translation adjustments primarily reflect the strengthening of the U.S. dollar against the British pound sterling, which has resulted in lower U.S. dollar-translated balances of British pound sterling-denominated goodwill and intangible assets.

On April 13, 2021, we paid $16.5 million to settle our interest rate swap agreement prior to its June 2024 maturity, and reclassified the remaining $15.7 million of pretax accumulated deferred losses from accumulated other comprehensive loss within stockholders’ equity to other income (expense) on our consolidated statement of operations for the three months ended April 30, 2021. The associated $3.7 million deferred tax asset was reclassified from accumulated other comprehensive loss and netted against income taxes receivable during the year ended January 31, 2022. Please refer to Note 13, “Derivative Financial Instruments” for further information regarding our interest rate swap agreement.

The amounts reclassified out of accumulated other comprehensive (loss) income into the condensed consolidated statements of operations, with presentation location, for the three months ended April 30, 2022 and 2021 were as follows:


	Three Months Ended April 30,
(in thousands)	2022		2021		Financial Statement Location
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	—	$	1	Cost of recurring revenue
	(9)		12		Cost of nonrecurring revenue
	(49)		65		Research and development, net
	(24)		28		Selling, general and administrative
	(82)		106		Total, before income taxes
	14		(19)		Benefit from (provision for) income taxes
	$	(68)	$	87	Total, net of income taxes

Interest rate swap agreement	$	—	$	(1,014)	Interest expense
	—		(15,655)		Other income (expense), net
	—		(16,669)		Total, before income taxes
	—		3,638		Benefit from income taxes
	$	—	$	(13,031)	Total, net of income taxes

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 18
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 505
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

INCOME TAXES	3 Months Ended
INCOME TAXES	Apr. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our interim provision for (benefit from) income taxes is measured using an estimated annual effective income tax rate, adjusted for discrete items that occur within the periods presented. For the three months ended April 30, 2022, we recorded an income tax provision of $0.3 million on pretax income of $0.9 million, which represented an effective income tax rate of 34.0%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the U.S. taxation of certain foreign activities, offset by lower statutory rates in certain foreign jurisdictions. For the three months ended April 30, 2021, we recorded an income tax benefit of $0.1 million on pretax income of $1.0 million, which represented a negative effective income tax rate of 7.0%. The effective tax rate differs from the U.S. federal statutory rate of 21% primarily due to the impact of U.S. taxation of certain foreign activities and the adjustment of certain unrecognized tax benefits, offset by a change in the fair value of the Future Tranche Right associated with the Preferred stock issuance and by lower statutory rates in several foreign jurisdictions. As required by the authoritative guidance on accounting for income taxes, we evaluate the realizability of deferred income tax assets on a jurisdictional basis at each reporting date. Accounting guidance for income taxes requires that a valuation allowance be established when it is more-likely-than-not that all or a portion of the deferred income tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred income tax assets are not more-likely-than-not realizable, we establish a valuation allowance. We determined that there is sufficient negative evidence to maintain the valuation allowances against certain state and foreign deferred income tax assets as a result of historical losses in the most recent three-year period in certain state and foreign jurisdictions. We intend to maintain valuation allowances until sufficient positive evidence exists to support a reversal. We had unrecognized income tax benefits of $84.1 million and $84.2 million (excluding interest and penalties) as of April 30, 2022 and January 31, 2022, respectively, that if recognized, would impact our effective income tax rate. The accrued liability for interest and penalties was $3.6 million and $3.4 million at April 30, 2022 and January 31, 2022, respectively. Interest and penalties are recorded as a component of the provision for income taxes in our condensed consolidated statements of operations. We regularly assess the adequacy of our provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes. As a result, we may adjust the reserves for unrecognized income tax benefits for the impact of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities, and lapses of statutes of limitation. Further, we believe that it is reasonably possible that the total amount of unrecognized income tax benefits at April 30, 2022 could decrease by approximately $0.4 million in the next twelve months as a result of settlement of certain tax audits or lapses of statutes of limitation. Such decreases may involve the payment of additional income taxes, the adjustment of deferred income taxes including the need for additional valuation allowances, and the recognition of income tax benefits. Our income tax returns are subject to ongoing tax examinations in several jurisdictions in which we operate. We also believe that it is reasonably possible that new issues may be raised by tax authorities or developments in tax audits may occur, which would require increases or decreases to the balance of reserves for unrecognized income tax benefits; however, an estimate of such changes cannot reasonably be made. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. The income tax provisions of the CARES Act do not have a significant impact on our current taxes, deferred taxes, or uncertain tax positions. However, we have deferred the timing of employer payroll taxes and accelerated the refund of AMT credits as permitted by the CARES Act.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

FAIR VALUE MEASUREMENTS

3 Months Ended

Apr. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of April 30, 2022 and January 31, 2022:


	April 30, 2022
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	25,135	$	—	$	—
Commercial paper, classified as cash and cash equivalents	—		74,967		—
Contingent consideration receivable	—		—		204
Total assets	$	25,135	$	74,967	$	204
Liabilities:
Foreign currency forward contracts	$	—	$	246	$	—
Contingent consideration — business combinations	—		4,830		—
Total liabilities	$	—	$	5,076	$	—


	January 31, 2022
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	127,041	$	—	$	—
Commercial paper, classified as cash and cash equivalents	—		29,995		—
Foreign currency forward contracts	—		33		—
Contingent consideration receivable	—		—		271
Total assets	$	127,041	$	30,028	$	271
Liabilities:
Foreign currency forward contracts	$	—	$	91	$	—
Contingent consideration — business combinations	—		7,776		—
Total liabilities	$	—	$	7,867	$	—

In January 2020, we completed the sale of an insignificant subsidiary. In accordance with the terms of the sale agreement, 100% of the aggregate purchase price is contingent in nature based on a percentage of net sales of the former subsidiary’s products during the thirty-six month period following the transaction closing. We include the fair value of the contingent consideration receivable within prepaid expenses and other current assets and other assets on our condensed consolidated balance sheets. The estimated fair value of this asset as of April 30, 2022 and 2021, which is measured using Level 3 inputs, was $0.2 million and $0.5 million, respectively. We received payments of $0.1 million during each of the three months ended April 30, 2022 and 2021. The change in the estimated fair value of this contingent receivable was not material during the three months ended April 30, 2022 and 2021.

The following table presents the changes in the estimated fair values of our liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 30, 2021:



	Three Months Ended April 30,
(in thousands)	2021
Fair value measurement at beginning of period	$	15,704
Changes in fair values, recorded in operating expenses	241
Payments of contingent consideration	(7,609)
Foreign currency translation and other	(25)
Fair value measurement at end of period	$	8,311

Our estimated liability for contingent consideration represents potential payments of additional consideration for business combinations, payable if certain defined performance goals are achieved. Changes in fair value of contingent consideration are recorded in the condensed consolidated statements of operations within selling, general and administrative expenses.

As of January 31, 2022, the $7.8 million fair value of the contingent consideration liability was based on actual achievement through the performance periods ended January 31, 2022, and was transferred to Level 2 of the fair value hierarchy as the fair

value was determined based on other significant observable inputs. Payments of contingent consideration earned under these agreements were $2.7 million and we recorded a benefit of $0.2 million for changes in the fair values of contingent consideration obligations associated with business combinations for the three months ended April 30, 2022.

There were no transfers between levels of the fair value measurement hierarchy during the three months ended April 30, 2022 and 2021.

Fair Value Measurements

Money Market Funds — We value our money market funds using quoted active market prices for such funds.

Short-term Investments, Corporate Debt Securities, and Commercial Paper — The fair values of short-term investments, as well as corporate debt securities and commercial paper classified as cash equivalents, are estimated using observable market prices for identical securities that are traded in less-active markets, if available. When observable market prices for identical securities are not available, we value these short-term investments using non-binding market price quotes from brokers which we review for reasonableness using observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model.

Foreign Currency Forward Contracts — The estimated fair value of foreign currency forward contracts is based on quotes received from the counterparties thereto. These quotes are reviewed for reasonableness by discounting the future estimated cash flows under the contracts, considering the terms and maturities of the contracts and market foreign currency exchange rates using readily observable market prices for similar contracts.

Contingent Consideration Assets and Liabilities — Business Combinations and Divestitures — The fair value of the contingent consideration related to business combinations and divestitures is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. We remeasure the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within selling, general, and administrative expenses. Increases or decreases in discount rates would have inverse impacts on the related fair value measurements, while favorable or unfavorable changes in expectations of achieving performance targets would result in corresponding increases or decreases in the related fair value measurements. We utilized discount rates ranging from 5.2% to 5.4%, with a weighted average discount rate of 5.3%, in our calculation of the estimated fair value of our contingent consideration asset as of April 30, 2022. We utilized discount rates ranging from 3.5% to 3.9%, with a weighted average discount rate of 3.7% in our calculation of the estimated fair value of our contingent consideration asset as of January 31, 2022.

Other Financial Instruments

The carrying amounts of accounts receivable, contract assets, accounts payable, and accrued liabilities and other current liabilities approximate fair value due to their short maturities.

The estimated fair values of our term loan borrowings were approximately $99 million and $100 million at April 30, 2022 and January 31, 2022, respectively. The estimated fair values of the term loans are based upon indicative bid and ask prices as determined by the agent responsible for the syndication of our term loans. We consider these inputs to be within Level 3 of the fair value hierarchy because we cannot reasonably observe activity in the limited market in which participation in our term loans are traded. The indicative prices provided to us as at each of April 30, 2022 and January 31, 2022 did not significantly differ from par value. The estimated fair value of our revolving credit borrowings, if any, is based upon indicative market values provided by one of our lenders.

The estimated fair value of our 2021 Notes was approximately $332 million and $330 million at April 30, 2022 and January 31, 2022, respectively. The estimated fair value of the 2021 Notes was determined based on quoted bid and ask prices in the over-the-counter market in which the 2021 Notes traded. We consider these inputs to be within Level 2 of the fair value hierarchy.

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including goodwill, intangible assets, operating lease right-of-use assets, and property, plant and equipment, are measured at fair value when there is an indication of impairment and

the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized.

As of April 30, 2022, the carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $5.1 million. These investments are included within other assets on the condensed consolidated balance sheets. As of January 31, 2022, the carrying amount of our noncontrolling equity investments in privately-held companies without readily determinable fair values was $5.1 million, of which $4.4 million was remeasured to fair value based on an observable transaction during the year ended January 31, 2022. These investments were included within other assets on the consolidated balance sheet as of January 31, 2022. An unrealized gain of $3.1 million, which adjusted the carrying value of a noncontrolling equity investment based on an observable transaction, was recorded in other income (expense), net on the consolidated statement of operations for the three months ended April 30, 2021. There were no observable price changes in our investments in privately-held companies during the three months ended April 30, 2022. We did not recognize any impairments during the three months ended April 30, 2022 and 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Apr. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Our primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk, when deemed appropriate. We enter into these contracts in the normal course of business to mitigate risks and not for speculative purposes.

Foreign Currency Forward Contracts

Under our risk management strategy, we periodically use foreign currency forward contracts to manage our short-term exposures to fluctuations in operational cash flows resulting from changes in foreign currency exchange rates. These cash flow exposures result from portions of our forecasted operating expenses, primarily compensation and related expenses, which are transacted in currencies other than the U.S. dollar, most notably the Israeli shekel. We also periodically utilize foreign currency forward contracts to manage exposures resulting from forecasted customer collections to be remitted in currencies other than the applicable functional currency, and exposures from cash, cash equivalents and short-term investments denominated in currencies other than the applicable functional currency. These foreign currency forward contracts generally have maturities of no longer than twelve months, although occasionally we will execute a contract that extends beyond twelve months, depending upon the nature of the underlying risk.

We held outstanding foreign currency forward contracts with notional amounts of $7.3 million and $7.4 million as of April 30, 2022 and January 31, 2022, respectively.

Interest Rate Swap Agreement

In April 2018, we executed a pay-fixed, receive-variable interest rate swap agreement with a multinational financial institution to partially mitigate risks associated with the variable interest rate on our Term Loan. Pursuant to the agreement, we paid interest at a fixed rate of 2.949% and received variable interest of three-month LIBOR (subject to a minimum of 0.00%), on a notional amount of $200.0 million (the “2018 Swap”). The effective date of the 2018 Swap was September 6, 2019, and settlements with the counterparty began on November 1, 2019, and occurred on a quarterly basis. The 2018 Swap had a termination date of June 29, 2024.

Prior to May 1, 2020, the 2018 Swap was designated as a cash flow hedge for accounting purposes and as such, changes in its fair value were recognized in accumulated other comprehensive (loss) income in the condensed consolidated balance sheet and were reclassified into the condensed consolidated statement of operations within interest expense in the periods in which the hedged transactions affected earnings.

On May 1, 2020, which was an interest rate reset date on our Term Loan, we selected an interest rate other than three-month LIBOR. As a result, the 2018 Swap, which was designated specifically to hedge three-month LIBOR interest payments, no longer qualified as a cash flow hedge. Subsequent to May 1, 2020, changes in the fair value of the 2018 Swap were accounted for as a component of other income (expense), net. Accumulated deferred losses on the 2018 Swap of $20.4 million, or $16.0 million after taxes, at May 1, 2020 that were previously recorded as a component of accumulated other comprehensive loss, were being reclassified to the condensed consolidated statement of operations as interest expense over the remaining term of the 2018 Swap, as the previously hedged interest payments occurred.

On April 13, 2021, we paid $16.5 million to settle the 2018 Swap agreement prior to its June 2024 maturity. Upon settlement, we recorded an unrealized gain of $1.3 million in other income (expense) to adjust the 2018 Swap to its fair value at settlement date and reclassified the remaining $15.7 million of pretax accumulated deferred losses from accumulated other comprehensive loss within stockholders’ equity to other income (expense), net on our condensed consolidated statement of operations for the three months ended April 30, 2021. The associated $3.7 million deferred tax asset was reclassified from accumulated other comprehensive loss and netted against income taxes receivable during the year ended January 31, 2022.

Fair Values of Derivative Financial Instruments

The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of April 30, 2022 and January 31, 2022 were as follows:


		Fair Value at
		April 30,		January 31,
(in thousands)	Balance Sheet Classification	2022		2022
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	—	$	33
Total derivative assets		$	—	$	33

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	246	$	91
Total derivative liabilities		$	246	$	91

Derivative Financial Instruments in Cash Flow Hedging Relationships

The effects of derivative financial instruments designated as cash flow hedges on accumulated other comprehensive (loss) income (“AOCL”) and on the condensed consolidated statement of operations for the three months ended April 30, 2022 and 2021 were as follows:


	Three Months Ended April 30,
(in thousands)	2022		2021
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	(270)	$	40
	$	(270)	$	40

Net (losses) gains reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	(82)	$	106
Interest rate swap agreement	—		(16,669)
	$	(82)	$	(16,563)

For information regarding the line item locations of the net (losses) gains on derivative financial instruments reclassified out of AOCL into the condensed consolidated statements of operations, see Note 10, “Stockholders’ Equity”.

All of the foreign currency forward contracts underlying the net unrealized losses recorded in our accumulated other comprehensive loss at April 30, 2022 mature within twelve months, and therefore we expect all such losses to be reclassified into earnings within the next twelve months.

Derivative Financial Instruments Not Designated as Hedging Instruments

Losses recognized on derivative financial instruments not designated as hedging instruments in our condensed consolidated statements of operations for the three months ended April 30, 2022 and 2021 were as follows:


	Classification in Condensed Consolidated Statements of Operations	Three Months Ended April 30,
(in thousands)		2022		2021
Interest rate swap agreement	Other income (expense), net	$	—	$	(14,374)

STOCK-BASED COMPENSATION

3 Months Ended

Apr. 30, 2022

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Stock-Based Compensation Plan

On June 20, 2019, our stockholders approved the Verint Systems Inc. 2019 Long-Term Stock Incentive Plan (the “2019 Plan”). Upon approval of the 2019 Plan, new awards are no longer permitted under our prior stock-based compensation plan (the “2017 Amended Plan”). Awards outstanding at June 20, 2019 under the 2017 Amended Plan or other previous stock-based compensation plans were not impacted by the approval of the 2019 Plan. Collectively, our stock-based compensation plans are referred to herein as the “Plans”.

The 2019 Plan authorizes our board of directors to provide equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance awards, other stock-based awards, and performance compensation awards. Subject to adjustment as provided in the 2019 Plan, up to an aggregate of (i) 9,475,000 shares of our common stock plus (ii) the number of shares of our common stock available for issuance under the 2017 Amended Plan as of June 20, 2019, plus (iii) the number of shares of our common stock that become available for issuance as a result of awards made under the 2017 Amended Plan or the 2019 Plan that are forfeited, cancelled, exchanged, or that terminate or expire, may be issued or transferred in connection with awards under the 2019 Plan. Each stock option or stock-settled stock appreciation right granted under the 2019 Plan will reduce the available plan capacity by one share and each other award denominated in shares that is granted under the 2019 Plan will reduce the available plan capacity by 2.38 shares.

In March 2021, our board of directors approved an adjustment of the available plan capacity to the 2019 Plan to 14,239,656 shares based on an adjustment ratio of approximately 1.45 as a result of the Spin-Off.

Stock-Based Compensation Expense

We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Cost of revenue — recurring	$	525	$	429
Cost of revenue — nonrecurring	640		833
Research and development, net	2,419		1,773
Selling, general and administrative	14,785		13,366
Total stock-based compensation expense	$	18,369	$	16,401

The following table summarizes stock-based compensation expense by type of award for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Restricted stock units and restricted stock awards	$	16,011	$	14,253
Stock bonus program and bonus share program	2,353		2,152
Total equity-settled awards	18,364		16,405
Phantom stock units (cash-settled awards)	5		(4)
Total stock-based compensation expense	$	18,369	$	16,401

Awards are generally subject to multi-year vesting periods. We recognize compensation expense for awards on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods, reduced by estimated forfeitures.

Awards under our stock bonus and bonus share programs are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, to be settled with a variable number of shares of our common stock, which for awards under our stock bonus program is determined using a discounted average price of our common stock.

Restricted Stock Units and Performance Stock Units

We periodically award RSUs to our directors, officers, and other employees. These awards contain various vesting conditions and are subject to certain restrictions and forfeiture provisions prior to vesting. Some of these awards to executive officers and certain employees vest upon the achievement of specified performance goals or market conditions (performance stock units or “PSUs”).

The following table (“Award Activity Table”) summarizes activity for RSUs, PSUs, and other stock awards that reduce available Plan capacity under the Plans for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
	2022			2021
(in thousands, except per share data)	Shares or Units	Weighted-Average Grant Date Fair Value		Shares or Units	Weighted-Average Grant Date Fair Value
Beginning balance	2,454	$	42.99	2,950	$	35.97
Granted	1,557	$	56.42	1,262	$	48.62
Released	(465)	$	42.20	(827)	$	35.33
Forfeited	(47)	$	43.13	(41)	$	35.61
Ending balance	3,499	$	49.07	3,344	$	40.91

The beginning balance of the outstanding shares for the three months ended April 30, 2021 reflects the adjusted shares based on an adjustment ratio of approximately 1.45 as a result of the Spin-Off on February 1, 2021. The related weighted-average grant date fair value for the beginning outstanding shares reflects the adjusted fair value of the awards on the Spin-Off Date. The adjusted shares preserve the same terms and conditions and vesting schedules as the original awards.

With respect to our stock bonus program, activity presented in the table above only includes shares earned and released in consideration of the discount provided under that program. Consistent with the provisions of the Plans under which such shares are issued, other shares issued under the stock bonus program are not included in the table above because they do not reduce available plan capacity (since such shares are deemed to be purchased by the grantee at fair value in lieu of receiving an earned cash bonus). Activity presented in the table above includes all shares awarded and released under the bonus share program. Further details appear below under “Stock Bonus Program” and “Bonus Share Program”.

Our RSU and PSU awards may include a provision which allows the awards to be settled with cash payments upon vesting, rather than with delivery of common stock, at the discretion of our board of directors. As of April 30, 2022, for such awards that are outstanding, settlement with cash payments was not considered probable, and therefore these awards have been accounted for as equity-classified awards and are included in the table above.

In order to achieve an equitable modification of the existing awards following the Spin-Off, we converted unvested awards as of February 1, 2021 by a factor of approximately 1.45, resulting in additional awards being granted to remaining employees denominated solely in Verint common stock. As noted above, a corresponding adjustment was also made to the available capacity under the 2019 Plan.

The following table summarizes PSU activity in isolation under the Plans for the three months ended April 30, 2022 and 2021 (these amounts are also included in the Award Activity Table above for 2022 and 2021):


	Three Months Ended April 30,
(in thousands)	2022	2021
Beginning balance	547	635
Granted	278	212
Released	(89)	(270)
Forfeited	—	(5)
Ending balance	736	572

Consistent with the table above, the beginning balance of the outstanding shares for the three months ended April 30, 2021 reflects the adjusted shares based on an adjustment ratio of approximately 1.45 as a result of the Spin-Off on February 1, 2021.

Excluding PSUs, we granted 1,279,000 RSUs during the three months ended April 30, 2022.

As of April 30, 2022, there was approximately $129.0 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.0 years.

Stock Bonus Program and Bonus Share Program

Our stock bonus program permits eligible employees to receive a portion of their earned bonuses, otherwise payable in cash, in the form of discounted shares of our common stock. Executive officers are eligible to participate in this program to the extent that shares remain available for awards following the enrollment of all other participants. Shares awarded to executive officers with respect to the discount feature of the program are subject to a one-year vesting period. This program is subject to annual funding approval by our board of directors and an annual cap on the number of shares that can be issued. Subject to these limitations, the number of shares to be issued under the program for a given year is determined using a five-day trailing average price of our common stock when the awards are calculated, reduced by a discount determined by the board of directors each year (the “discount”). To the extent that this program is not funded in a given year or the number of shares of common stock needed to fully satisfy employee enrollment exceeds the annual cap, the applicable portion of the employee bonuses will generally revert to being paid in cash.

Under our bonus share program, we may provide discretionary bonuses to employees or pay earned bonuses that are outside the stock bonus program in the form of shares of common stock. Unlike the stock bonus program, there is no enrollment for this program and no discount feature.

For bonuses in respect of the year ended January 31, 2022, our board of directors approved the use of up to 300,000 shares of common stock in the aggregate for awards under these two programs, with up to 300,000 shares of common stock, and a discount of 15% approved for awards under our stock bonus program. We currently expect to issue no more than 125,000 shares under the stock bonus program, which are expected to be issued during the first half of the year ending January 31, 2023. The bonus share program was not used, and no shares will be issued under this program, in respect of the performance period ended January 31, 2022.

In March 2022, our board of directors approved the use of up to 300,000 shares of common stock in the aggregate under these two programs, with up to 200,000 shares of common stock, and a discount of 15%, approved for awards under our stock bonus program for the performance period ending January 31, 2023. Any shares earned under these programs for the performance period ending January 31, 2023 will be issued during the year ended January 31, 2024.

The combined accrued liabilities for these two programs were $8.9 million and $6.5 million at April 30, 2022 and January 31, 2022, respectively.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Apr. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings CTI Litigation In March 2009, one of our former employees, Ms. Orit Deutsch, commenced legal actions in Israel against our former primary Israeli subsidiary, Cognyte Technologies Ltd. (formerly known as Verint Systems Limited or “VSL”) (Case Number 4186/09) and against our former affiliate CTI (Case Number 1335/09). Also, in March 2009, a former employee of Comverse Limited (CTI’s primary Israeli subsidiary at the time), Ms. Roni Katriel, commenced similar legal actions in Israel against Comverse Limited (Case Number 3444/09). In these actions, the plaintiffs generally sought to certify class action suits against the defendants on behalf of current and former employees of VSL and Comverse Limited who had been granted stock options in Verint and/or CTI and who were allegedly damaged as a result of a suspension on option exercises during an extended filing delay period that is discussed in our and CTI’s historical public filings. On June 7, 2012, the Tel Aviv District Court, where the cases had been filed or transferred, allowed the plaintiffs to consolidate and amend their complaints against the three defendants: VSL, CTI, and Comverse Limited. On October 31, 2012, CTI distributed all of the outstanding shares of common stock of Comverse, Inc., its principal operating subsidiary and parent company of Comverse Limited, to CTI’s shareholders (the “Comverse Share Distribution”). In the period leading up to the Comverse Share Distribution, CTI either sold or transferred substantially all of its business operations and assets (other than its equity ownership interests in Verint and in its then-subsidiary, Comverse, Inc.) to Comverse, Inc. or to unaffiliated third parties. As the result of these transactions, Comverse, Inc. became an independent company and ceased to be affiliated with CTI, and CTI ceased to have any material assets other than its equity interests in Verint. Prior to the completion of the Comverse Share Distribution, the plaintiffs sought to compel CTI to set aside up to $150.0 million in assets to secure any future judgment, but the District Court did not rule on this motion. In February 2017, Mavenir Inc. became successor-in-interest to Comverse, Inc. On February 4, 2013, Verint acquired the remaining CTI shell company in a merger transaction (the “CTI Merger”). As a result of the CTI Merger, Verint assumed certain rights and liabilities of CTI, including any liability of CTI arising out of the foregoing legal actions. However, under the terms of a Distribution Agreement entered into in connection with the Comverse Share Distribution, we, as successor to CTI, are entitled to indemnification from Comverse, Inc. (now Mavenir) for any losses we may suffer in our capacity as successor to CTI related to the foregoing legal actions. Following an unsuccessful mediation process, on August 28, 2016, the District Court (i) denied the plaintiffs’ motion to certify the suit as a class action with respect to all claims relating to Verint stock options, (ii) dismissed the motion to certify the suit against VSL and Comverse Limited, and (iii) approved the plaintiffs’ motion to certify the suit as a class action against CTI with respect to claims of current or former employees of Comverse Limited (now part of Mavenir) or of VSL who held unexercised CTI stock options at the time CTI suspended option exercises. The court also ruled that the merits of the case would be evaluated under New York law. As a result of this ruling (which excluded claims related to Verint stock options from the case), one of the original plaintiffs in the case, Ms. Deutsch, was replaced by a new representative plaintiff, Mr. David Vaaknin. CTI appealed portions of the District Court’s ruling to the Israeli Supreme Court. On August 8, 2017, the Israeli Supreme Court partially allowed CTI’s appeal and ordered the case to be returned to the District Court to determine whether a cause of action exists under New York law based on the parties’ expert opinions. Following two unsuccessful rounds of mediation in mid to late 2018 and in mid-2019, the proceedings resumed. On April 16, 2020, the District Court accepted plaintiffs’ application to amend the motion to certify a class action and set deadlines for filing amended pleadings by the parties. CTI submitted a motion to appeal the District Court’s decision to the Israeli Supreme Court, as well as a motion to stay the proceedings in the District Court pending the resolution of the appeal. On July 6, 2020, the Israeli Supreme Court granted the motion for a stay. On July 27, 2020, the plaintiffs filed their response on the merits of the motion for leave to appeal. On December 15, 2021, the Israeli Supreme Court rejected CTI’s motion to appeal and the proceedings in the District Court resumed. At the recommendation of the District Court, the parties recently agreed to conduct another round of mediation, which is currently scheduled for the end of June 2022, in parallel with the proceedings in the District Court. On February 1, 2021, we completed the Spin-Off. As a result of the Spin-Off, Cognyte is now an independent, publicly traded company. Under the terms of the Separation and Distribution Agreement entered into between Verint and Cognyte, Cognyte has agreed to indemnify Verint for Cognyte’s share of any losses that Verint may suffer related to the foregoing legal actions either in its capacity as successor to CTI, to the extent not indemnified by Mavenir, or due to its former ownership of Cognyte and VSL. Unfair Competition Litigation and Related Investigation On February 14, 2022, Verint Americas Inc., as successor to ForeSee Results, Inc. (“ForeSee”), received negative partial summary judgment decisions in two cases pending against it in the United States District Court for the Eastern District of Michigan. As discussed below, we believe that the court’s decisions were wrongly decided and are contrary to the facts and the law. We are seeking reconsideration of the rulings and will ultimately appeal the rulings if necessary. We believe that the claims asserted by the plaintiffs are without merit. In addition, as explained in our affirmative Delaware litigation, we also believe that by bringing the claims, plaintiffs breached an agreement not to pursue such claims in an improper attempt by them and their founder, Claes Fornell, to extract additional monies from ForeSee. The two Eastern District of Michigan cases are captioned ACSI LLC v. ForeSee Results, Inc. and CFI Group USA LLC v. Verint Americas Inc. The former case was filed on October 24, 2018 against ForeSee Results, Inc. by American Customer Satisfaction Index, LLC (“ACSI LLC”). Case No. 2:18-cv-13319. Verint completed its acquisition of ForeSee on December 19, 2018. In its complaint, ACSI LLC alleged infringement of two federally registered trademarks and common law unfair competition under federal and state law. ACSI LLC asserts that ForeSee, despite cancelling its license to use ACSI LLC’s alleged trademarks in 2013, has continued to use ACSI LLC’s trademarks. The trademark infringement claim was subsequently dismissed, but the common law unfair competition claims have proceeded. The latter case was filed on September 5, 2019 against Verint Americas Inc. (as successor in interest to ForeSee) by CFI Group USA LLC (“CFI”). Case No. 2:19-cv-12602. In its complaint, CFI alleges unfair competition and false advertising under federal and state law, as well as tortious interference with contract. CFI asserts that ForeSee engaged in unfair competition by using ACSI LLC’s trademarks without a license, and that ForeSee engaged in false advertising by mis-describing its customer satisfaction products. ACSI LLC’s and CFI’s complaints seek unspecified damages on their claims. Following discovery, on June 3, 2021, ACSI LLC and CFI moved for partial summary judgment on their claims and ForeSee moved for summary judgment against their claims. On February 14, 2022, the Eastern District of Michigan generally granted ACSI LLC’s and CFI’s motions for partial summary judgment and generally denied ForeSee’s motions for summary judgment. As noted above, ForeSee believes that the court’s decisions were wrongly decided, ignore substantial factual evidence in the record, and are contrary to applicable law. On February 28, 2022, ForeSee moved for reconsideration, and that motion is pending before the court. ForeSee continues to believe that there are substantial defenses to the claims in the ACSI LLC and CFI litigations and intends to continue to defend them vigorously. Verint has also been informed that the U.S. Attorney’s Office for the Eastern District of Michigan’s Civil Division (“USAO”) is conducting a False Claims Act investigation concerning allegations ForeSee and/or Verint failed to provide the federal government the services described in certain government contracts. Verint received a Civil Investigation Demand (“CID”) in connection with this investigation and has provided responses. The False Claims Act contains provisions that allow for private persons to initiate actions by filing claims under seal. We believe that this investigation was initiated in coordination with the Eastern District of Michigan litigation discussed above. Verint continues to work cooperatively with the USAO in its review of this matter. At this point, Verint has not determined that there were any deficiencies in ForeSee’s and/or Verint’s performance of the government contracts. ForeSee also filed affirmative litigation in the Northern District of Georgia (Case No. 1:19-cv-02892, Complaint filed on June 25, 2019) against ACSI LLC’s predecessor in interest. ACSI LLC has now been substituted as the named defendant. In that action, ForeSee seeks cancellation of ACSI LLC’s federally registered trademarks. In response to ASCI LLC’s motion to dismiss the action, on March 15, 2022, the Georgia court issued an order transferring that action to the Eastern District of Michigan. Verint subsequently withdrew the action without prejudice and continues to consider any next actions it may take with respect to this matter. ForeSee has also filed affirmative litigation in the United States District Court for the District of Delaware (Case No. 1:21-cv-00674, Complaint filed on May 7, 2021) against ACSI LLC, CFI, Claes Fornell, and CFI Software LLC. Claes Fornell founded both ACSI LLC and CFI, and previously co-founded ForeSee before selling it in December 2013 for a significant gain. The Delaware action asserts claims against ACSI LLC, CFI, Fornell, and CFI Software for their breach of a “Joinder and Waiver Agreement” entered into in connection with the December 2013 sale in which they represented that they had no claims against ForeSee and in which they released any such claims. The Delaware action alleges that the Eastern District of Michigan litigations effectively represent an improper attempt by Fornell and his affiliates to profit off of ForeSee a second time (first by selling it in 2013 as a law-abiding company, only to sue it in 2018 and 2019 claiming violations of law for business practices that began while Fornell owned a significant position in ForeSee (via CFI Software) and during the time that Fornell served as chairman of ForeSee’s board). The Delaware action also asserts fraud claims against Fornell and CFI Software for affirmative statements they made in the December 2013 merger agreement which effectuated the sale and in other contemporaneous materials that ForeSee was not engaging in unfair competition or other violations of law. The Delaware litigation seeks as damages any amounts recovered by ACSI LLC, CFI or the USAO in the proceedings discussed above, as well as attorneys’ fees. Defendants moved to dismiss, stay or transfer the Delaware litigation, and the magistrate judge assigned to the case denied the motions to dismiss and transfer but recommended temporarily staying the case pending decisions on the motions for summary judgment in the Eastern District of Michigan. ForeSee objected to the recommended stay, and those objections are currently pending before the Delaware court. No amounts have been recognized in our consolidated financial statements for these loss contingencies as it is not probable a loss has been incurred and the range of a possible loss is not yet estimable. However, in light of the recent rulings by the court in the Eastern District of Michigan, we consider the potential exposure reasonably possible. An estimate of a reasonably possible loss (or a range of loss) cannot be made in either the commercial litigation or False Claims Act investigation at this time. As these matters are ongoing it is at least reasonably possible that our estimates will change in the near term and the effect may be material. We are a party to other various litigation matters and claims that arise from time to time in the ordinary course of our business. While we believe that the ultimate outcome of any such current matters will not have a material adverse effect on us, their outcomes are not determinable and negative outcomes may adversely affect our financial position, liquidity, or results of operations.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Preparation of Condensed Consolidated Financial Statements	Preparation of Condensed Consolidated Financial Statements The condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and on the same basis as the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended January 31, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”), except for the recently adopted accounting pronouncements described below. The condensed consolidated statements of operations, comprehensive (loss) income, stockholders’ equity, and cash flows for the periods ended April 30, 2022 and 2021, and the condensed consolidated balance sheet as of April 30, 2022, are not audited but reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown. The condensed consolidated balance sheet as of January 31, 2022 is derived from the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended January 31, 2022. Certain information and disclosures normally included in annual consolidated financial statements have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and disclosures required by GAAP for a complete set of financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended January 31, 2022 filed with the SEC. The results for interim periods are not necessarily indicative of a full year’s results.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Verint Systems Inc., and our wholly owned or otherwise controlled subsidiaries. Noncontrolling interests in less than wholly owned subsidiaries are reflected within stockholders’ equity on our condensed consolidated balance sheet, but separately from our stockholders’ equity. Equity investments in companies in which we have less than a 20% ownership interest and cannot exercise significant influence, and which do not have readily determinable fair values, are accounted for at cost, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer, less any impairment. We include the results of operations of acquired companies from the date of acquisition. All significant intercompany transactions and balances are eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions, which may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. In light of the currently unknown extent and duration of the COVID-19 pandemic, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply to certain of our significant accounting policies. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of April 30, 2022 and through the date of this report. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Effective	Recently Adopted Accounting Pronouncements In May 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. We adopted this standard as of February 1, 2022, and the adoption did not have any impact on our condensed consolidated financial statements, as the effect will largely depend on the terms of written call options or financings issued or modified in the future. New Accounting Pronouncements Not Yet Effective In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU No. 2020-04 provides optional expedients and exceptions for applying GAAP if certain criteria are met to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB issued Update 2021-01, Reference Rate Reform (Topic 848): Scope. The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting, or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. A portion of our indebtedness bears interest at variable interest rates, primarily based on euro-dollar LIBOR. We continue to monitor the impact of the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. We are currently assessing the impact of this standard on our condensed consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which will require companies to apply the definition of a performance obligation under ASC Topic 606, Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination. Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. ASU No. 2021-08 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. We are currently evaluating the impact of this standard on our condensed consolidated financial statements but the ultimate impact is dependent on the size and frequency of future acquisitions and does not affect contract assets or contract liabilities related to acquisitions completed prior to the adoption date.
Revenue Recognition	We derive our revenue primarily from providing customers the right to access our cloud-based solutions, the right to use our software for an indefinite or specified period of time, and related services and support based on when access or control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transactions, including mandatory government charges that are passed through to our customers. We determine revenue recognition through the following five steps: •Identification of the contract, or contracts, with a customer •Identification of the performance obligations in the contract •Determination of the transaction price •Allocation of the transaction price to the performance obligations in the contract •Recognition of revenue when, or as, performance obligations are satisfied. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

REVENUE RECOGNITION (Tables)

3 Months Ended

Apr. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

•Recurring revenue primarily consists of:

◦Cloud revenue, which consists primarily of software as a service (“SaaS”) revenue and optional managed services revenue.

▪Bundled SaaS revenue is recognized over time.

◦Support revenue, which consists of initial and renewal support.

•Nonrecurring revenue primarily consists of our perpetual licenses, hardware, installation services, and business advisory consulting and training services.


	Three Months Ended April 30,
(in thousands)	2022		2021
Recurring revenue:
Bundled SaaS revenue	$	49,285	$	39,309
Unbundled SaaS revenue	45,445		24,283
Optional managed services revenue	15,913		16,458
Total cloud revenue	110,643		80,050
Support revenue	48,724		64,403
Total recurring revenue	159,367		144,453
Nonrecurring revenue:
Perpetual revenue	33,258		29,323
Professional services revenue	25,281		27,128
Total nonrecurring revenue	58,539		56,451
Total revenue	$	217,906	$	200,904

Schedule of Contracts with Customers - Assets and Liabilities

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:


(in thousands)	April 30, 2022		January 31, 2022
Accounts receivable, net	$	149,758	$	193,831
Contract assets, net	$	37,993	$	42,688
Long-term contract assets, net (included in other assets)	$	36,549	$	30,510
Contract liabilities	$	258,065	$	271,271
Long-term contract liabilities	$	15,704	$	15,872

Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table provides information about when we expect to recognize our remaining performance obligations:


(in thousands)	April 30, 2022		January 31, 2022
RPO:
Expected to be recognized within 1 year	$	433,052	$	447,428
Expected to be recognized in more than 1 year	278,208		274,404
Total RPO	$	711,260	$	721,832

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. (Tables)

3 Months Ended

Apr. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Income Per Common Share Attributable To Verint Systems Inc.

The following table summarizes the calculation of basic and diluted net loss per common share attributable to Verint Systems Inc. for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands, except per share amounts)	2022		2021
Net income	$	574	$	1,094
Net income attributable to noncontrolling interests	288		295
Net income attributable to Verint Systems Inc.	286		799
Dividends on preferred stock	(5,200)		(3,322)
Net loss attributable to Verint Systems Inc. for basic net loss per common share	(4,914)		(2,523)
Dilutive effect of dividends on preferred stock	—		—
Net loss attributable to Verint Systems Inc. for diluted net loss per common share	$	(4,914)	$	(2,523)

Weighted-average shares outstanding:
Basic	64,947		65,661
Dilutive effect of employee equity award plans	—		—
Dilutive effect of 2021 Notes	—		—
Dilutive effect of 2014 Notes	—		—
Dilutive effect of warrants	—		—
Dilutive effect of assumed conversion of preferred stock	—		—
Diluted	64,947		65,661

Net loss per common share attributable to Verint Systems Inc.:
Basic	$	(0.08)	$	(0.04)
Diluted	$	(0.08)	$	(0.04)

Schedule of Anti-dilutive Securities


	Three Months Ended April 30,
(in thousands)	2022	2021
Common shares excluded from calculation:
Stock options and restricted stock-based awards	1,571	1,859
2021 Notes	—	1,254
2014 Notes	—	9,541
Warrants	—	9,865
Series A Preferred Stock	5,498	5,498
Series B Preferred Stock	3,980	1,118

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Tables)

3 Months Ended

Apr. 30, 2022

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Schedule of Cash, Cash Equivalents and Short-term Investments

The following tables summarize our cash, cash equivalents, and short-term investments as of April 30, 2022 and January 31, 2022:


	April 30, 2022
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	184,944	$	—	$	—	$	184,944
Money market funds	25,135		—		—		25,135
Commercial paper	74,967		—		—		74,967
Total cash and cash equivalents	$	285,046	$	—	$	—	$	285,046

Short-term investments:
Bank time deposits	$	745	$	—	$	—	$	745
Total short-term investments	$	745	$	—	$	—	$	745


	January 31, 2022
(in thousands)	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and bank time deposits	$	201,769	$	—	$	—	$	201,769
Money market funds	127,041		—		—		127,041
Commercial paper	29,995		—		—		29,995
Total cash and cash equivalents	$	358,805	$	—	$	—	$	358,805

Short-term investments:
Bank time deposits	$	765	$	—	$	—	$	765
Total short-term investments	$	765	$	—	$	—	$	765

BUSINESS COMBINATIONS (Tables)

3 Months Ended

Apr. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Purchase Price Allocations


(in thousands)	Amount
Components of Purchase Price:
Cash	$	53,409
Other purchase price adjustments	(190)
Total purchase price	$	53,219

Allocation of Purchase Price:
Net tangible assets (liabilities):
Accounts receivable	$	1,694
Other current assets, including cash acquired	5,302
Other assets	511
Current and other liabilities	(1,945)
Contract liabilities — current and long-term	(3,410)
Deferred income taxes	(407)
Net tangible assets	1,745
Identifiable intangible assets:
Customer relationships	9,800
Developed technology	9,900
Trademarks and trade names	200
Total identifiable intangible assets	19,900
Goodwill	31,574
Total purchase price allocation	$	53,219

INTANGIBLE ASSETS AND GOODWILL (Tables)

3 Months Ended

Apr. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquisition-Related Intangible Assets


	April 30, 2022
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	456,247	$	(373,221)	$	83,026
Acquired technology	224,284		(203,193)		21,091
Trade names	5,146		(4,425)		721
Distribution network	2,440		(2,440)		—
Total intangible assets	$	688,117	$	(583,279)	$	104,838


	January 31, 2022
(in thousands)	Cost		Accumulated Amortization		Net
Intangible assets with finite lives:
Customer relationships	$	467,408	$	(375,827)	$	91,581
Acquired technology	229,501		(203,895)		25,606
Trade names	5,677		(4,610)		1,067
Distribution network	2,440		(2,440)		—
Total intangible assets	$	705,026	$	(586,772)	$	118,254

Schedule of Estimated Future Amortization Expense on Finite-lived Acquisition-related Intangible Assets

Estimated future amortization expense on finite-lived acquisition-related intangible assets is as follows:


(in thousands)
Years Ending January 31,	Amount
2023 (remainder of year)	$	29,189
2024	30,476
2025	14,586
2026	13,360
2027	9,466
2028 and thereafter	7,761
Total	$	104,838

Schedule of Goodwill Activity

Goodwill activity for the three months ended April 30, 2022 was as follows:


(in thousands)	Amount
Three Months Ended April 30, 2022:
Goodwill, gross, at January 31, 2022	$	1,409,464
Accumulated impairment losses through January 31, 2022	(56,043)
Goodwill, net, at January 31, 2022	1,353,421
Foreign currency translation and other	(25,977)
Goodwill, net, at April 30, 2022	$	1,327,444

Balance at April 30, 2022
Goodwill, gross, at April 30, 2022	$	1,383,487
Accumulated impairment losses through April 30, 2022	(56,043)
Goodwill, net, at April 30, 2022	$	1,327,444

LONG-TERM DEBT (Tables)

3 Months Ended

Apr. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The following table summarizes our long-term debt at April 30, 2022 and January 31, 2022:


	April 30,		January 31,
(in thousands)	2022		2022
2021 Notes	$	315,000	$	315,000
Term Loan	100,000		100,000
Less: unamortized debt discounts and issuance costs	(7,598)		(8,046)
Total debt	407,402		406,954
Less: current maturities	—		—
Long-term debt	$	407,402	$	406,954

Schedule of Components of Interest Expense


	Three Months Ended April 30,
(in thousands)	2022		2021
2021 Notes:
Interest expense at 0.25% coupon rate	$	195	$	48
Amortization of deferred debt issuance costs	439		105
Total Interest Expense - 2021 Notes	$	634	$	153

2014 Notes:
Interest expense at 1.50% coupon rate	$	—	$	1,451
Amortization of deferred debt issuance costs	—		391
Total Interest Expense - 2014 Notes	$	—	$	1,842

Borrowings under Credit Agreement:
Interest expense at contractual rates	$	560	$	1,760
Impact of interest rate swap reclassified from accumulated other comprehensive loss	—		1,014
Amortization of debt discounts	5		3
Amortization of deferred debt issuance costs	211		272
Total Interest Expense - Borrowings under Credit Agreement	$	776	$	3,049

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

3 Months Ended

Apr. 30, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following as of April 30, 2022 and January 31, 2022:


	April 30,		January 31,
(in thousands)	2022		2022
Raw materials	$	3,508	$	3,001
Work-in-process	115		150
Finished goods	1,602		2,186
Total inventories	$	5,225	$	5,337

Schedule of Other (Expense) Income, Net

Other income, net consisted of the following for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Foreign currency gains (losses), net	$	1,713	$	(541)
Losses on derivative financial instruments, net	—		(14,374)
Change in fair value of future tranche right	—		15,810
Other, net	(39)		3,155
Total other income, net	$	1,674	$	4,050

Schedule of Supplemental Information Regarding Condensed Consolidated Cash Flows

The following table provides supplemental information regarding our condensed consolidated cash flows for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Cash paid for interest	$	930	$	4,583
Cash payments of income taxes, net	$	2,238	$	23,035
Cash payments for operating leases	$	12,195	$	4,878
Non-cash investing and financing transactions:
Finance leases of property and equipment	$	12	$	1,678
Accrued but unpaid purchases of property and equipment	$	988	$	2,406
Settlement of Future Tranche Right upon issuance of Series B Preferred Stock	$	—	$	36,962
Retirement of treasury stock	$	—	$	434
Accrued but unpaid purchases of treasury stock	$	453	$	—

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Apr. 30, 2022

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive (Loss) Income

The following table summarizes changes in the components of our accumulated other comprehensive loss for the three months ended April 30, 2022:


(in thousands)	Unrealized Losses on Foreign Exchange Contracts Designated as Hedges		Foreign Currency Translation Adjustments		Total
Accumulated other comprehensive loss at January 31, 2022	$	(48)	$	(118,467)	$	(118,515)
Other comprehensive loss before reclassifications	(188)		(29,890)		(30,078)
Amounts reclassified out of accumulated other comprehensive loss	(33)		—		(33)
Net other comprehensive loss	(155)		(29,890)		(30,045)
Accumulated other comprehensive loss at April 30, 2022	$	(203)	$	(148,357)	$	(148,560)

Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income


	Three Months Ended April 30,
(in thousands)	2022		2021		Financial Statement Location
Unrealized (losses) gains on derivative financial instruments:
Foreign currency forward contracts	$	—	$	1	Cost of recurring revenue
	(9)		12		Cost of nonrecurring revenue
	(49)		65		Research and development, net
	(24)		28		Selling, general and administrative
	(82)		106		Total, before income taxes
	14		(19)		Benefit from (provision for) income taxes
	$	(68)	$	87	Total, net of income taxes

Interest rate swap agreement	$	—	$	(1,014)	Interest expense
	—		(15,655)		Other income (expense), net
	—		(16,669)		Total, before income taxes
	—		3,638		Benefit from income taxes
	$	—	$	(13,031)	Total, net of income taxes

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Apr. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

Our assets and liabilities measured at fair value on a recurring basis consisted of the following as of April 30, 2022 and January 31, 2022:


	April 30, 2022
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	25,135	$	—	$	—
Commercial paper, classified as cash and cash equivalents	—		74,967		—
Contingent consideration receivable	—		—		204
Total assets	$	25,135	$	74,967	$	204
Liabilities:
Foreign currency forward contracts	$	—	$	246	$	—
Contingent consideration — business combinations	—		4,830		—
Total liabilities	$	—	$	5,076	$	—


	January 31, 2022
	Fair Value Hierarchy Category
(in thousands)	Level 1		Level 2		Level 3
Assets:
Money market funds	$	127,041	$	—	$	—
Commercial paper, classified as cash and cash equivalents	—		29,995		—
Foreign currency forward contracts	—		33		—
Contingent consideration receivable	—		—		271
Total assets	$	127,041	$	30,028	$	271
Liabilities:
Foreign currency forward contracts	$	—	$	91	$	—
Contingent consideration — business combinations	—		7,776		—
Total liabilities	$	—	$	7,867	$	—

Schedule of Changes in the Estimated Fair Value Using Significant Unobservable Inputs (Level 3)



	Three Months Ended April 30,
(in thousands)	2021
Fair value measurement at beginning of period	$	15,704
Changes in fair values, recorded in operating expenses	241
Payments of contingent consideration	(7,609)
Foreign currency translation and other	(25)
Fair value measurement at end of period	$	8,311

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Apr. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Values of Derivative Financial Instruments

The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of April 30, 2022 and January 31, 2022 were as follows:


		Fair Value at
		April 30,		January 31,
(in thousands)	Balance Sheet Classification	2022		2022
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Prepaid expenses and other current assets	$	—	$	33
Total derivative assets		$	—	$	33

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Accrued expenses and other current liabilities	$	246	$	91
Total derivative liabilities		$	246	$	91

Schedule of the Effects of Derivative Financial Instruments Designated as Cash Flow Hedging Instruments


	Three Months Ended April 30,
(in thousands)	2022		2021
Net (losses) gains recognized in AOCL:
Foreign currency forward contracts	$	(270)	$	40
	$	(270)	$	40

Net (losses) gains reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	(82)	$	106
Interest rate swap agreement	—		(16,669)
	$	(82)	$	(16,563)

Schedule of Gains (Losses) Recognized on Derivative Financial Instruments Not Designated As Hedging Instruments


	Classification in Condensed Consolidated Statements of Operations	Three Months Ended April 30,
(in thousands)		2022		2021
Interest rate swap agreement	Other income (expense), net	$	—	$	(14,374)

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Apr. 30, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

We recognized stock-based compensation expense in the following line items on the condensed consolidated statements of operations for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Cost of revenue — recurring	$	525	$	429
Cost of revenue — nonrecurring	640		833
Research and development, net	2,419		1,773
Selling, general and administrative	14,785		13,366
Total stock-based compensation expense	$	18,369	$	16,401

Schedule of Stock-Based Compensation Expense by Type of Award

The following table summarizes stock-based compensation expense by type of award for the three months ended April 30, 2022 and 2021:


	Three Months Ended April 30,
(in thousands)	2022		2021
Restricted stock units and restricted stock awards	$	16,011	$	14,253
Stock bonus program and bonus share program	2,353		2,152
Total equity-settled awards	18,364		16,405
Phantom stock units (cash-settled awards)	5		(4)
Total stock-based compensation expense	$	18,369	$	16,401

Schedule of RSU Activity


	Three Months Ended April 30,
	2022			2021
(in thousands, except per share data)	Shares or Units	Weighted-Average Grant Date Fair Value		Shares or Units	Weighted-Average Grant Date Fair Value
Beginning balance	2,454	$	42.99	2,950	$	35.97
Granted	1,557	$	56.42	1,262	$	48.62
Released	(465)	$	42.20	(827)	$	35.33
Forfeited	(47)	$	43.13	(41)	$	35.61
Ending balance	3,499	$	49.07	3,344	$	40.91

Schedule of Performance Share Activity


	Three Months Ended April 30,
(in thousands)	2022	2021
Beginning balance	547	635
Granted	278	212
Released	(89)	(270)
Forfeited	—	(5)
Ending balance	736	572

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ / shares in Units, organization in Thousands					3 Months Ended
	Apr. 06, 2021 USD ($)	Feb. 01, 2021 $ / shares shares	May 07, 2020 USD ($)	Dec. 04, 2019 USD ($)	Apr. 30, 2022 professional organization country office $ / shares	Jan. 31, 2022 $ / shares
Description of Business [Line Items]
Percentage of fortune 100 companies as customers					85.00%
Number of organizations as customer \| organization					10
Number of countries customers located \| country					175
Number of offices \| office					30
Entity number of employees \| professional					4,400
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001			$ 0.001	$ 0.001
Spin-off transaction, number of shares received (in shares) \| shares		1
Apax
Description of Business [Line Items]
Percentage ownership of outstanding shares					13.00%
Convertible Preferred Stock
Description of Business [Line Items]
Sale of stock, consideration received on transaction				$ 400,000,000
Series A Preferred Stock \| Series A Private Placement
Description of Business [Line Items]
Sale of stock, consideration received on transaction			$ 200,000,000
Series B Preferred Stock \| Series B Private Placement
Description of Business [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000

REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Disaggregation of Revenue [Line Items]
Current period revenue recognized from beginning balance of contract liabilities	$ 96.9	$ 97.6
Accounts Receivable \| Customer Concentration Risk \| Partner A
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	20.00%		14.00%
Accounts Receivable \| Customer Concentration Risk \| Partner B
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	11.00%
Contract assets \| Customer Concentration Risk \| Partner A
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	20.00%		14.00%
Contract assets \| Customer Concentration Risk \| Partner B
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	11.00%
Minimum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	1 year
Maximum
Disaggregation of Revenue [Line Items]
Unbundled contracts renewal term	3 years

REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 217,906	$ 200,904
Bundled SaaS revenue
Disaggregation of Revenue [Line Items]
Revenue	49,285	39,309
Unbundled SaaS revenue
Disaggregation of Revenue [Line Items]
Revenue	45,445	24,283
Optional managed services revenue
Disaggregation of Revenue [Line Items]
Revenue	15,913	16,458
Total cloud revenue
Disaggregation of Revenue [Line Items]
Revenue	110,643	80,050
Support revenue
Disaggregation of Revenue [Line Items]
Revenue	48,724	64,403
Total recurring revenue
Disaggregation of Revenue [Line Items]
Revenue	159,367	144,453
Perpetual revenue
Disaggregation of Revenue [Line Items]
Revenue	33,258	29,323
Professional services revenue
Disaggregation of Revenue [Line Items]
Revenue	25,281	27,128
Total nonrecurring revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 58,539	$ 56,451

REVENUE RECOGNITION - Contract Balances (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 149,758	$ 193,831
Contract assets, net	37,993	42,688
Long-term contract assets, net (included in other assets)	36,549	30,510
Contract liabilities	258,065	271,271
Long-term contract liabilities	$ 15,704	$ 15,872

REVENUE RECOGNITION - Remaining Performance Obligations (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 711,260	$ 721,832
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation, period (up to)		1 year
Remaining performance obligations		$ 447,428
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation, period (up to)	1 year
Remaining performance obligations	$ 433,052
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-01 \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation, period (up to)	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation, period (up to)
Remaining performance obligations		$ 274,404
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue performance obligation, period (up to)
Remaining performance obligations	$ 278,208

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - Calculation of Basic And Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Net Income Attributable to Verint Systems Inc. [Abstract]
Net income	$ 574	$ 1,094
Net income attributable to noncontrolling interests	288	295
Net income attributable to Verint Systems Inc.	286	799
Dividends on preferred stock	(5,200)	(3,322)
Net loss attributable to Verint Systems Inc. for basic net loss per common share	(4,914)	(2,523)
Dilutive effect of dividends on preferred stock	0	0
Net loss attributable to Verint Systems Inc. for diluted net loss per common share	$ (4,914)	$ (2,523)
Weighted-average shares outstanding:
Basic (in shares)	64,947	65,661
Dilutive effect of employee equity award plans (in shares)	0	0
Dilutive effect of warrants (in shares)	0	0
Dilutive effect of assumed conversion of preferred stock (in shares)	0	0
Diluted (in shares)	64,947	65,661
Net loss per common share attributable to Verint Systems Inc.:
Basic (in dollars per share)	$ (0.08)	$ (0.04)
Diluted (in dollars per share)	$ (0.08)	$ (0.04)
2021 Notes
Weighted-average shares outstanding:
Dilutive effect of convertible senior notes (in shares)	0	0
2014 Notes
Weighted-average shares outstanding:
Dilutive effect of convertible senior notes (in shares)	0	0

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - Schedule of Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Stock options and restricted stock-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	1,571	1,859
2021 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	0	1,254
2014 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	0	9,541
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	0	9,865
Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	5,498	5,498
Series B Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share
Antidilutive securities excluded from computation of earnings per share, (in shares)	3,980	1,118

NET LOSS PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC. - Additional Information (Details) - USD ($)				5 Months Ended
	Apr. 06, 2021	May 07, 2020	Dec. 04, 2019	Jan. 21, 2022	Apr. 09, 2021	Feb. 01, 2021	Jun. 18, 2014
Convertible Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction			$ 400,000,000
Series A Preferred Stock \| Series A Private Placement
Class of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000
Series B Preferred Stock \| Series B Private Placement
Class of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000
2021 Notes
Class of Stock [Line Items]
Conversion price (in dollars per share)					$ 62.08
Capped calls, initial cap price (in dollars per share)	$ 100.00
2014 Notes
Class of Stock [Line Items]
Conversion price (in dollars per share)						$ 40.55
Exercise price of warrants (in dollars per share)						$ 47.18	$ 75.00
Number of shares of common stock upon conversion						9,541,000
Warrants, number of underlying common shares (in shares)						9,865,000	6,205,000
Warrants issued (in shares)				293,143
Warrants exercised on a cashless basis (in shares)				5,031,000

CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	$ 285,046	$ 359,418	$ 358,805
Cash and cash equivalents, fair value	285,046		358,805
Maturities and sales of investments	300	$ 45,600
Bank time deposits
Schedule of Available-for-sale Securities
Cost Basis	745		765
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Estimated Fair Value	745		765
Total short-term investments
Schedule of Available-for-sale Securities
Cost Basis	745		765
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Estimated Fair Value	745		765
Cash and bank time deposits
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	184,944		201,769
Cash and cash equivalents, fair value	184,944		201,769
Money market funds
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	25,135		127,041
Cash and cash equivalents, fair value	25,135		127,041
Commercial paper
Schedule of Available-for-sale Securities
Cash and cash equivalents, cost basis	74,967		29,995
Cash and cash equivalents, fair value	$ 74,967		$ 29,995

BUSINESS COMBINATIONS - Conversocial Limited Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Aug. 23, 2021	Apr. 30, 2022	Jan. 31, 2022
Business Acquisition
Cash paid for business combinations, including adjustments, net of cash acquired	$ 50,200
Goodwill		$ 1,327,444	$ 1,353,421
Conversocial Limited
Business Acquisition
Cash	53,409
Cash acquired from acquisition	3,200
Other purchase price adjustments	(190)
Goodwill	31,574
Business acquisition, goodwill deductible for income tax purposes	500
Business acquisition, goodwill not deductible for income tax purposes	31,100
Current and long-term contract liabilities	3,410
Component of the purchase price allocation	$ 1,200
Business acquisition related costs		$ 900
Weighted-average estimated useful life of all finite-lived identifiable intangible assets (in years)	5 years 10 months 24 days
Conversocial Limited \| Customer relationships
Business Acquisition
Finite-lived intangible asset, useful life (in years)	7 years
Conversocial Limited \| Developed technology
Business Acquisition
Finite-lived intangible asset, useful life (in years)	5 years
Conversocial Limited \| Trademarks and trade names
Business Acquisition
Finite-lived intangible asset, useful life (in years)	1 year
Conversocial Limited \| Prepaid expenses and other current assets
Business Acquisition
Component of the purchase price allocation	$ 700
Conversocial Limited \| Other assets
Business Acquisition
Component of the purchase price allocation	$ 500

BUSINESS COMBINATIONS - Schedule of Purchase Price allocation (Details) - USD ($) $ in Thousands	Aug. 23, 2021	Apr. 30, 2022	Jan. 31, 2022
Business Acquisition
Goodwill		$ 1,327,444	$ 1,353,421
Conversocial Limited
Business Acquisition
Cash	$ 53,409
Other purchase price adjustments	190
Total purchase price	53,219
Accounts receivable	1,694
Other current assets, including cash acquired	5,302
Other assets	511
Current and other liabilities	(1,945)
Contract liabilities — current and long-term	(3,410)
Deferred income taxes	(407)
Net tangible assets	1,745
Total identifiable intangible assets	19,900
Goodwill	31,574
Total purchase price allocation	53,219
Conversocial Limited \| Customer relationships
Business Acquisition
Total identifiable intangible assets	9,800
Conversocial Limited \| Developed technology
Business Acquisition
Total identifiable intangible assets	9,900
Conversocial Limited \| Trademarks and trade names
Business Acquisition
Total identifiable intangible assets	$ 200

BUSINESS COMBINATIONS - Other Business Combination Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Other Business Combination
Business Acquisition
Changes in fair values of contingent consideration obligations associated with business combinations	$ (200)	$ 200
Payments of contingent consideration earned	2,700	$ 7,600
Recurring \| Level 3
Business Acquisition
Contingent consideration — business combinations	0		$ 0
Recurring \| Level 3 \| Other Business Combination
Business Acquisition
Contingent consideration — business combinations	$ 4,800

INTANGIBLE ASSETS AND GOODWILL - Schedule of Acquisition-Related Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 688,117	$ 705,026
Accumulated Amortization	(583,279)	(586,772)
Net	104,838	118,254
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	456,247	467,408
Accumulated Amortization	(373,221)	(375,827)
Net	83,026	91,581
Acquired technology
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	224,284	229,501
Accumulated Amortization	(203,193)	(203,895)
Net	21,091	25,606
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	5,146	5,677
Accumulated Amortization	(4,425)	(4,610)
Net	721	1,067
Distribution network
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	2,440	2,440
Accumulated Amortization	(2,440)	(2,440)
Net	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWILL - Additional Information (Details) - USD ($)	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 10,500,000	$ 11,700,000
Impairment of intangible assets, finite-lived	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWILL - Schedule of Estimated Future Amortization Expense on Finite-lived Acquisition-related Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remainder of year)	$ 29,189
2024	30,476
2025	14,586
2026	13,360
2027	9,466
2028 and thereafter	7,761
Net	$ 104,838	$ 118,254

INTANGIBLE ASSETS AND GOODWILL - Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Jan. 31, 2022
Goodwill [Roll Forward]
Goodwill, gross at the beginning of the period	$ 1,383,487	$ 1,409,464
Accumulated impairment losses	(56,043)	$ (56,043)
Goodwill, net at the beginning of the period	1,353,421
Foreign currency translation and other	(25,977)
Goodwill, net, at the end of the period	$ 1,327,444

LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022	Apr. 30, 2021
Debt Instrument [Line Items]
Less: unamortized debt discounts and issuance costs	$ (7,598)	$ (8,046)
Total debt	407,402	406,954
Less: current maturities	0	0
Long-term debt	407,402	406,954
2021 Notes
Debt Instrument [Line Items]
Long-term debt outstanding	315,000	315,000
Term Loan
Debt Instrument [Line Items]
Long-term debt outstanding	$ 100,000	$ 100,000	$ 100,000

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

LONG-TERM DEBT - 2021 Notes (Details)			3 Months Ended
LONG-TERM DEBT - 2021 Notes (Details)	Apr. 09, 2021 USD ($) $ / shares	Apr. 06, 2021 USD ($)	Apr. 30, 2022 USD ($)	Apr. 30, 2021 USD ($)
Debt Instrument [Line Items]
Payments of debt-related costs			$ 93,000	$ 9,422,000
Series B Preferred Stock \| Series B Private Placement
Debt Instrument [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000
2021 Notes
Debt Instrument [Line Items]
Debt principal amount	$ 315,000,000
Coupon interest rate	0.25%
Convertible debt, conversion ratio		0.0161092
Convertible debt, conversion price (in dollars per share) \| $ / shares	$ 62.08
Payments of debt-related costs	$ 8,900,000
Effective interest rate (as a percent)			0.83%

LONG-TERM DEBT - 2014 Notes (Details) - USD ($) shares in Thousands			3 Months Ended
	Jun. 01, 2021	Jun. 18, 2014	Apr. 30, 2022	Apr. 30, 2021	Jul. 31, 2020
Debt Instrument [Line Items]
Losses on early retirements of debt			$ 0	$ 2,474,000
2014 Notes
Debt Instrument [Line Items]
Debt principal amount		$ 400,000,000
Coupon interest rate		1.50%
Proceeds from issuance of convertible notes, net of underwriting discounts		$ 391,900,000
Repurchased amount in cash					$ 13,100,000
Principal amount - repurchased notes					13,000,000
Losses on early retirements of debt					100,000
Reacquisition of equity component from convertible notes repurchases, net of taxes					$ 200,000
Payment for debt extinguishment	$ 389,800,000
Payment for debt extinguishment, principal	386,900,000
Payment for debt extinguishment, interest	2,900,000
Incremental conversion value	$ 57,700,000
Treasury stock reissued (in shares)	1,250

LONG-TERM DEBT - Capped Calls, Note Hedges and Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended		5 Months Ended
	Jun. 01, 2021	Apr. 06, 2021	Feb. 01, 2021	Jun. 18, 2014	Apr. 30, 2022	Apr. 30, 2021	Jan. 21, 2022
Debt Instrument [Line Items]
Cumulative effect of adoption of ASU No. 2020-06, net of taxes		$ 41,100			$ 0	$ 40,950
2021 Notes
Debt Instrument [Line Items]
Capped calls, initial conversion price (in dollars per share)		$ 62.08
Capped calls, initial cap price (in dollars per share)		$ 100.00
2014 Notes
Debt Instrument [Line Items]
Exercise price of warrants (in dollars per share)			$ 47.18	$ 75.00
Note Hedges, number of shares with right to acquire from counterparties			9,865,000	6,205,000
Option indexed to issuer's equity, strike price (in dollars per share)			$ 40.55	$ 64.46
Payment for note hedges				$ 60,800
Note hedges, shares received upon settlement (in shares)	1,250,000
Note hedges, number of shares received pertaining to reimbursement	42,000
Warrants, number of underlying common shares (in shares)			9,865,000	6,205,000
Proceeds from issuance of warrants				$ 45,200
Warrants issued (in shares)							293,143
Warrants exercised on a cashless basis (in shares)							5,031,000

LONG-TERM DEBT - Credit Agreement (Details) - USD ($)	3 Months Ended
LONG-TERM DEBT - Credit Agreement (Details) - USD ($)	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022	Apr. 09, 2021	Jun. 29, 2017
Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 725,000,000
Term Loan
Debt Instrument [Line Items]
Debt face amount					425,000,000
Long-term debt outstanding	$ 100,000,000	$ 100,000,000	$ 100,000,000
Unamortized debt discount		200,000			$ 500,000
Required quarterly principal payment		1,100,000
Repayments of lines of credit		309,000,000
Deferred debt issuance costs		$ 1,800,000
Interest rate at end of period (as a percent)	2.46%		2.10%
Effective interest rate (as a percent)	2.66%
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 300,000,000
Deferred debt issuance costs				$ 1,300,000
Consolidated total debt to consolidated EBITDA ratio	4.50
Eurodollar Loans \| Variable Rate Based on Eurodollar Rate \| Term Loan
Debt Instrument [Line Items]
Interest rate margin (as a percent)	2.25%
Eurodollar Loans \| Variable Rate Based on Eurodollar Rate \| 2017 Term Loan - Following January 2018 Amendment
Debt Instrument [Line Items]
Interest rate margin (as a percent)	2.00%
ABR Rate Loans \| Variable Rate Based on ABR Rate \| Term Loan
Debt Instrument [Line Items]
Interest rate margin (as a percent)	1.25%
ABR Rate Loans \| Variable Rate Based on ABR Rate \| 2017 Term Loan - Following January 2018 Amendment
Debt Instrument [Line Items]
Interest rate margin (as a percent)	1.00%

LONG-TERM DEBT - Credit Agreement Issuance and Amendment Costs (Details) - USD ($) $ in Thousands			3 Months Ended		12 Months Ended
	Apr. 09, 2021	Jun. 29, 2017	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2021	Jan. 31, 2018	Apr. 06, 2021
Debt Instrument [Line Items]
Payments of debt-related costs			$ 93	$ 9,422
Credit Agreement
Debt Instrument [Line Items]
Payments of debt-related costs		$ 6,800
Debt restructuring costs incurred during period					$ 2,100
Payments of debt restructuring costs					1,200
Deferred debt restructuring costs					900
Term Loan
Debt Instrument [Line Items]
Payments of debt-related costs		4,100
Write off of deferred debt issuance cost						$ 200
Deferred debt restructuring costs					500
Deferred debt issuance costs				1,800
Revolving Credit Facility
Debt Instrument [Line Items]
Payments of debt-related costs		$ 2,700
Write off of deferred debt issuance cost				$ 500
Debt restructuring costs incurred during period	$ 1,500
Deferred debt restructuring costs					$ 400
Deferred debt issuance costs	$ 1,300
Deferred debt issuance costs, associated with commitments							$ 800

LONG-TERM DEBT - Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Apr. 09, 2021	Jun. 18, 2014
2021 Notes
Debt Instrument [Line Items]
Interest expense at coupon or contractual rate	$ 195	$ 48
Amortization of deferred debt issuance costs	439	105
Total interest expense	634	153
Coupon interest rate			0.25%
2014 Notes
Debt Instrument [Line Items]
Interest expense at coupon or contractual rate	0	1,451
Amortization of deferred debt issuance costs	0	391
Total interest expense	0	1,842
Coupon interest rate				1.50%
Credit Agreement
Debt Instrument [Line Items]
Interest expense at coupon or contractual rate	560	1,760
Impact of interest rate swap reclassified from accumulated other comprehensive loss	0	1,014
Amortization of debt discounts	5	3
Amortization of deferred debt issuance costs	211	272
Total interest expense	$ 776	$ 3,049

LONG-TERM DEBT - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended
	Apr. 13, 2021	May 01, 2020	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Debt Instrument [Line Items]
Payment for termination of interest rate swap			$ 0	$ 16,502
Deferred tax asset reclassified upon derivative settlement					$ 3,700
2018 Swap
Debt Instrument [Line Items]
Payment for termination of interest rate swap	$ 16,500
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	$ 15,700	$ 20,400

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Inventories (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Raw materials	$ 3,508	$ 3,001
Work-in-process	115	150
Finished goods	1,602	2,186
Total inventories	$ 5,225	$ 5,337

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Other Income, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Condensed Financial Information Disclosure [Abstract]
Foreign currency gains (losses), net	$ 1,713	$ (541)
Losses on derivative financial instruments, net	0	(14,374)
Change in fair value of future tranche right	0	15,810
Other, net	(39)	3,155
Total other income, net	$ 1,674	$ 4,050

SUPPLEMENTAL CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Supplemental Information Regarding Condensed Consolidated Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Condensed Financial Information Disclosure [Abstract]
Cash paid for interest	$ 930	$ 4,583
Cash payments of income taxes, net	2,238	23,035
Cash payments for operating leases	12,195	4,878
Non-cash investing and financing transactions:
Finance leases of property and equipment	12	1,678
Accrued but unpaid purchases of property and equipment	988	2,406
Settlement of Future Tranche Right upon issuance of Series B Preferred Stock	0	36,962
Retirement of treasury stock	0	434
Accrued but unpaid purchases of treasury stock	$ 453	$ 0

CONVERTIBLE PREFERRED STOCK - Additional Information (Details) - USD ($)	Apr. 06, 2021	May 07, 2020	Dec. 04, 2019
Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction			$ 400,000,000
Series A Preferred Stock \| Series A Private Placement
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000
Sale of stock, number of shares issued (in shares)		200,000
Sale of stock, price per share (in dollars per share)		$ 1,000
Sale of stock, direct and indirect costs		$ 2,700,000
Series B Preferred Stock \| Series B Private Placement
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000
Sale of stock, number of shares issued (in shares)	200,000
Sale of stock, price per share (in dollars per share)	$ 1,000
Sale of stock, direct and indirect costs	$ 1,300,000

CONVERTIBLE PREFERRED STOCK - Voting Rights (Details)	Dec. 04, 2019
Equity [Abstract]
Holders of preferred stock voting rights, as percentage of voting power of common stock outstanding	19.90%

CONVERTIBLE PREFERRED STOCK - Dividends and Liquidation Rights (Details) - USD ($)		3 Months Ended
	Dec. 04, 2019	Apr. 30, 2022	Apr. 30, 2021
Subsidiary, Sale of Stock [Line Items]
Holders of preferred stock voting rights, as percentage of voting power of common stock outstanding	19.90%
Preferred stock dividend payments		$ 10,400,000	$ 5,200,000
Preferred stock dividends, unpaid and undeclared		6,900,000
Accrued dividends on preferred stock		0
Dividends on preferred stock		5,200,000	$ 3,322,000
Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Preferred stock, liquidation preference (in dollars per share)	$ 1,000
Preferred stock, dividend payment terms, period	48 months
Preferred stock dividends, unpaid and undeclared		$ 3,500,000
Preferred Stock \| Minimum
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate, increase percentage each year	1.00%
Preferred Stock \| Maximum
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate, increase percentage each year	10.00%
Preferred Stock \| Dividend for the first 48-month anniversary of closing date
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	5.20%
Preferred Stock \| Dividend after the first 48-month anniversary of closing date
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	4.00%
Preferred Stock \| Dividend increase term in the event
Subsidiary, Sale of Stock [Line Items]
Preferred stock, dividend rate	6.00%

CONVERTIBLE PREFERRED STOCK - Conversion (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Apr. 06, 2021	May 07, 2020	Apr. 30, 2022	Feb. 01, 2021
Subsidiary, Sale of Stock [Line Items]
Shares issuable upon conversion (in shares)			9.6
Convertible preferred stock, mandatory conversion term, period following close date with option to require all outstanding shares		36 months
Common stock, trading days		30 days
Convertible preferred stock, threshold percentage of conversion trigger		175.00%
Convertible preferred stock, period following closing date for redemption		72 months
Preferred stock, redemption price in percentage		100.00%
Internal rate of return		8.00%
Preferred stock dividends, unpaid and undeclared			$ 6.9
Apax
Subsidiary, Sale of Stock [Line Items]
Percentage ownership of outstanding shares			13.00%
Series A Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Conversion price (in dollars per share)		$ 53.50		$ 36.38
Conversion premium		17.10%
Common stock, consecutive trading days		45 days
Convertible preferred stock, disposition term, number of months anniversary of closing date		36 months
Convertible preferred stock, disposition term, number of months anniversary of consummation of Spin-Off		24 months
Series B Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Conversion price (in dollars per share)	$ 50.25
Conversion price, trading days	20 days
Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Preferred stock, redemption price in percentage		100.00%
Convertible preferred stock, redemption term		102 months
Preferred stock, liquidation preference			$ 200.0
Preferred stock dividends, unpaid and undeclared			$ 3.5
Common Stock
Subsidiary, Sale of Stock [Line Items]
Convertible preferred stock, disposition term, number of months anniversary of closing date		24 months
Convertible preferred stock, disposition term, number of months anniversary of consummation of Spin-Off		12 months

CONVERTIBLE PREFERRED STOCK - Future Tranche Right (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 06, 2021	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022	May 07, 2020
Subsidiary, Sale of Stock [Line Items]
Future tranche right, fair value					$ 3,400
Temporary equity		$ 436,321		$ 436,321
Change in fair value of future tranche right		0	$ (15,810)
Series A Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Temporary equity		200,628		200,628	$ 203,400
Series B Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Temporary equity	$ 237,000	$ 235,693		$ 235,693
Change in fair value of future tranche right			$ 15,800
Future tranche right	$ 37,000
Series B Preferred Stock \| Series B Private Placement
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued (in shares)	200,000

- Definition

Carrying amount, attributable to parent and noncontrolling interests, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.

+ References + Details

STOCKHOLDERS' EQUITY - Common Stock Dividends (Details) - USD ($)		3 Months Ended
	Feb. 01, 2021	Apr. 30, 2022	Apr. 30, 2021
Equity [Abstract]
Dividends on common stock		$ 0	$ 0
Spin-off transaction, number of shares received (in shares)	1

STOCKHOLDERS' EQUITY - Stock Repurchase Programs (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2022	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022	Mar. 22, 2022	Dec. 02, 2021
Class of Stock [Line Items]
Number of common stock acquired (in shares)			1,601,000
Cost of common stock repurchased			$ 75,500
Common stock repurchased settled in cash		$ 105,213	$ 75,014
March 2021 Share Repurchase Program
Class of Stock [Line Items]
Number of common stock acquired (in shares)			1,600,000	0
Cost of common stock repurchased			$ 75,400
December 2021 Share Repurchase Program
Class of Stock [Line Items]
Stock repurchase program, number of shares authorized (up to) (in shares)					500,000	1,500,000
Stock repurchased during period (in shares)		2,000,000
Stock repurchased during period, value		$ 105,700
December 2021 Share Repurchase Program \| Subsequent Event
Class of Stock [Line Items]
Common stock repurchased settled in cash	$ 500

STOCKHOLDERS' EQUITY - Treasury Stock (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Class of Stock [Line Items]
Treasury stock repurchased (in shares)	2,000,000
Treasury stock repurchased	$ 105,666	$ 25,868
Number of common stock acquired (in shares)		1,601,000
Cost of common stock repurchased		$ 75,500
Common stock repurchased and retired		49,581
Treasury stock, at cost (in shares)	2,000,000		0
Treasury stock cost	$ 105,666		$ 0
2021 Share Repurchase Program
Class of Stock [Line Items]
Cost of common stock repurchased		$ 75,400
Common stock repurchased and retired (in shares)		1,058,300
Common stock repurchased and retired		$ 49,600

STOCKHOLDERS' EQUITY - Issuance of Convertible Preferred Stock (Details) - USD ($)	Apr. 06, 2021	May 07, 2020	Dec. 04, 2019	Apr. 30, 2022
Apax
Class of Stock [Line Items]
Percentage ownership of outstanding shares				13.00%
Convertible Preferred Stock
Class of Stock [Line Items]
Sale of stock, consideration received on transaction			$ 400,000,000
Series A Preferred Stock \| Series A Private Placement
Class of Stock [Line Items]
Sale of stock, consideration received on transaction		$ 200,000,000
Series B Preferred Stock \| Series B Private Placement
Class of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 200,000,000

STOCKHOLDERS' EQUITY - Summary of Components of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Activity in Accumulated Other Comprehensive Loss
Beginning balances	$ 954,579	$ 1,282,564
Other comprehensive loss before reclassifications	(30,078)
Amounts reclassified out of accumulated other comprehensive loss	(33)
Other comprehensive (loss) income	(30,045)	32,707
Ending balances	835,453	929,648
Unrealized Losses on Foreign Exchange Contracts Designated as Hedges
Activity in Accumulated Other Comprehensive Loss
Beginning balances	(48)
Other comprehensive loss before reclassifications	(188)
Amounts reclassified out of accumulated other comprehensive loss	(33)
Other comprehensive (loss) income	(155)
Ending balances	(203)
Foreign Currency Translation Adjustments
Activity in Accumulated Other Comprehensive Loss
Beginning balances	(118,467)
Other comprehensive loss before reclassifications	(29,890)
Amounts reclassified out of accumulated other comprehensive loss	0
Other comprehensive (loss) income	(29,890)
Ending balances	(148,357)
AOCI Attributable to Parent
Activity in Accumulated Other Comprehensive Loss
Beginning balances	(118,515)	(136,878)
Other comprehensive (loss) income	(30,045)
Ending balances	$ (148,560)	$ (104,171)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124442407-227067

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21463-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-Section 55
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
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-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124442411-227067

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 45
-Paragraph 1B
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-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669625-108580

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Subparagraph (a)(3)(iii)(03)

+ Details

STOCKHOLDERS' EQUITY - Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands			3 Months Ended
	Apr. 13, 2021	May 01, 2020	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Class of Stock [Line Items]
Payment for termination of interest rate swap			$ 0	$ 16,502
Deferred tax asset reclassified upon derivative settlement					$ 3,700
2018 Swap
Class of Stock [Line Items]
Payment for termination of interest rate swap	$ 16,500
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	$ 15,700	$ 20,400

STOCKHOLDERS' EQUITY - Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Research and development, net	$ (30,947)	$ (29,148)
Selling, general and administrative	(102,882)	(87,646)
Interest expense	(1,501)	(5,019)
Total, before income taxes	870	1,022
Benefit from (provision for) income taxes	(296)	72
Net income	574	1,094
Recurring
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	(41,028)	(38,076)
Nonrecurring
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	(32,068)	(29,880)
Foreign currency forward contracts \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Research and development, net	(49)	65
Selling, general and administrative	(24)	28
Total, before income taxes	(82)	106
Benefit from (provision for) income taxes	14	(19)
Net income	(68)	87
Foreign currency forward contracts \| Recurring \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	0	1
Foreign currency forward contracts \| Nonrecurring \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Cost of revenue	(9)	12
Interest rate swap agreement \| Reclassification out of Accumulated Other Comprehensive Income
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Interest expense	0	(1,014)
Other income (expense), net	0	(15,655)
Total, before income taxes	0	(16,669)
Benefit from (provision for) income taxes	0	3,638
Net income	$ 0	$ (13,031)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022
Income Tax Disclosure [Abstract]
(Benefit from) provision for income taxes	$ 296	$ (72)
Income (loss) before provision of income taxes	$ 870	$ 1,022
Effective income tax rate (as a percent)	34.00%	(7.00%)
Unrecognized tax benefits (excluding interest and penalties)	$ 84,100		$ 84,200
Unrecognized tax benefits, income tax penalties and interest accrued	3,600		$ 3,400
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit	$ 400

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

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+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022	Apr. 30, 2021
Level 1
Assets:
Money market funds	$ 25,135	$ 127,041
Commercial paper, classified as cash and cash equivalents	0	0
Foreign currency forward contracts		0
Contingent consideration receivable	0	0
Total assets	25,135	127,041
Liabilities:
Foreign currency forward contracts	0	0
Contingent consideration — business combinations	0	0
Total liabilities	0	0
Level 2
Assets:
Money market funds	0	0
Commercial paper, classified as cash and cash equivalents	74,967	29,995
Foreign currency forward contracts		33
Contingent consideration receivable	0	0
Total assets	74,967	30,028
Liabilities:
Foreign currency forward contracts	246	91
Contingent consideration — business combinations	4,830	7,776
Total liabilities	5,076	7,867
Level 3
Assets:
Money market funds	0	0
Commercial paper, classified as cash and cash equivalents	0	0
Foreign currency forward contracts		0
Contingent consideration receivable	204	271	$ 500
Total assets	204	271
Liabilities:
Foreign currency forward contracts	0	0
Contingent consideration — business combinations	0	0
Total liabilities	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Additional Information (Details)	1 Months Ended	3 Months Ended
	Jan. 31, 2020	Apr. 30, 2022 USD ($)	Apr. 30, 2021 USD ($)	Jan. 31, 2022 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, measurement period	36 months
Noncontrollling equity investment in privately-held companies without readily determinable fair values		$ 5,100,000		$ 5,100,000
Noncontrolling equity investment in privately-held companies without readily determinable fair values, remeasured to fair value				$ 4,400,000
Unrealized gain on noncontrolling equity investment			$ 3,100,000
Noncontrollling equity investment in privately-held companies, impairments		0	0
Other Business Combination
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Payments of contingent consideration earned		2,700,000	7,600,000
Change in fair value, recorded in other income (expense), net		$ 200,000	(200,000)
Minimum \| Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, asset, measurement input		0.052		0.035
Maximum \| Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, asset, measurement input		0.054		0.039
Weighted Average \| Discount Rate
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration, asset, measurement input		0.053		0.037
Level 3 \| 2017 Term Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair value of term loans		$ 99,000,000		$ 100,000,000
Level 2 \| 2021 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair values of notes		332,000,000		330,000,000
Recurring \| Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration receivable		204,000	500,000	271,000
Contingent consideration payments received		100,000	$ 100,000
Contingent consideration — business combinations		0		0
Recurring \| Level 3 \| Other Business Combination
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration — business combinations		4,800,000
Recurring \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Contingent consideration receivable		0		0
Contingent consideration — business combinations		$ 4,830,000		$ 7,776,000

FAIR VALUE MEASUREMENTS - Schedule of Changes in the Estimated Fair Value of Contingent Consideration (Details) - Contingent consideration $ in Thousands	3 Months Ended
	Apr. 30, 2021 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value measurement at the beginning of the period	$ 15,704
Change in fair value, recorded in other income (expense), net	241
Payments of contingent consideration	(7,609)
Foreign currency translation and other	(25)
Fair value measurement at the end of the period	$ 8,311

DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended
	Apr. 13, 2021	May 01, 2020	Apr. 30, 2022	Apr. 30, 2021	Jan. 31, 2022	Sep. 06, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Payment for termination of interest rate swap			$ 0	$ 16,502
Unrealized gain on derivatives			$ 0	$ (14,374)
Deferred tax asset reclassified upon derivative settlement					$ 3,700
Foreign currency forward contracts
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative, term (no longer than)			12 months
Derivative - notional amount			$ 7,300		$ 7,400
Maximum maturity of foreign currency derivatives			12 months
2018 Swap
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative - notional amount						$ 200,000
Derivative - fixed interest rate						2.949%
Derivative - index interest rate floor						0.00%
Reclassification of cash flow hedge loss, before tax	$ 15,700	$ 20,400
Reclassification of cash flow hedge loss, after tax		$ 16,000
Payment for termination of interest rate swap	16,500
Unrealized gain on derivatives	$ 1,300

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 31, 2022
Fair Values of Derivative Financial Instruments
Assets, fair value	$ 0	$ 33
Liabilities, fair value	246	91
Prepaid expenses and other current assets \| Foreign currency forward contracts \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Assets, fair value	0	33
Accrued expenses and other current liabilities \| Foreign currency forward contracts \| Designated as cash flow hedges
Fair Values of Derivative Financial Instruments
Liabilities, fair value	$ 246	$ 91

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of the Effects of Derivative Financial Instruments Designated as Cash Flow Hedging Instruments (Details) - Cash flow hedging - Designated as cash flow hedges - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in Accumulated other comprehensive (loss) income	$ (270)	$ 40
Net (losses) gains reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations	(82)	(16,563)
Foreign currency forward contracts
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses) recognized in Accumulated other comprehensive (loss) income	(270)	40
Net (losses) gains reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations	(82)	106
Interest rate swap agreement
DERIVATIVE FINANCIAL INSTRUMENTS
Net (losses) gains reclassified from Accumulated other comprehensive (loss) income to the consolidated statements of operations	$ 0	$ (16,669)

DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Gains (Losses) Recognized on Derivative Financial Instruments Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	$ 0	$ (14,374)
Not designated as hedging instruments \| Interest rate swap agreement
DERIVATIVE FINANCIAL INSTRUMENTS
Gains (losses) on derivative financial instruments, net	$ 0	$ (14,374)

STOCK-BASED COMPENSATION - Stock-Based Compensation Plan (Details)	Apr. 30, 2022 shares	Mar. 31, 2022 shares	Mar. 31, 2021 shares	Feb. 01, 2021
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized		300,000
2019 Long-Term Stock Incentive Plan
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized	9,475,000		14,239,656
Reduction of available plan capacity for each stock option or stock-settled stock appreciation right (in shares)	1
Reduction of available plan capacity for each other award (in shares)	2.38
Unvested awards conversion factor				1.45

STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Stock-Based Compensation Plans
Stock-based compensation	$ 18,369	$ 16,401
Cost of revenue — recurring
Stock-Based Compensation Plans
Stock-based compensation	525	429
Cost of revenue — nonrecurring
Stock-Based Compensation Plans
Stock-based compensation	640	833
Research and development, net
Stock-Based Compensation Plans
Stock-based compensation	2,419	1,773
Selling, general and administrative
Stock-Based Compensation Plans
Stock-based compensation	$ 14,785	$ 13,366

STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense by Type of Award (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Stock-Based Compensation Plans
Stock-based compensation	$ 18,369	$ 16,401
Equity Settled Awards
Stock-Based Compensation Plans
Stock-based compensation	18,364	16,405
Equity Settled Awards \| Restricted stock units and restricted stock awards
Stock-Based Compensation Plans
Stock-based compensation	16,011	14,253
Equity Settled Awards \| Stock bonus program and bonus share program
Stock-Based Compensation Plans
Stock-based compensation	2,353	2,152
Cash Settled Awards \| Phantom stock units (cash-settled awards)
Stock-Based Compensation Plans
Stock-based compensation	$ 5	$ (4)

STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Summary of award activity
Beginning balance (in shares)	2,454	2,950
Granted (in shares)	1,557	1,262
Released (in shares)	(465)	(827)
Forfeited (in shares)	(47)	(41)
Ending balance (in shares)	3,499	3,344
Weighted-Average Grant-Date Fair Value
Beginning balance (in dollars per share)	$ 42.99	$ 35.97
Granted (in dollars per share)	56.42	48.62
Released (in dollars per share)	42.20	35.33
Forfeited (in dollars per share)	43.13	35.61
Ending balance (in dollars per share)	$ 49.07	$ 40.91
Restricted Stock Units (RSUs)
Summary of award activity
Granted (in shares)	1,279
Additional disclosures
Unrecognized compensation expense	$ 129.0
Remaining weighted-average vesting period over which expense is expected to be recognized (in years)	2 years

STOCK-BASED COMPENSATION - Schedule of PSU Activity (Details) - shares shares in Thousands	3 Months Ended
	Apr. 30, 2022	Apr. 30, 2021
Summary of award activity
Beginning balance (in shares)	2,454	2,950
Granted (in shares)	1,557	1,262
Released (in shares)	(465)	(827)
Forfeited (in shares)	(47)	(41)
Ending balance (in shares)	3,499	3,344
Performance- based RSUs
Summary of award activity
Beginning balance (in shares)	547	635
Granted (in shares)	278	212
Released (in shares)	(89)	(270)
Forfeited (in shares)	0	(5)
Ending balance (in shares)	736	572

STOCK-BASED COMPENSATION - Stock Bonus Program and Bonus Share Program (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Apr. 30, 2022	Apr. 30, 2021	Jul. 31, 2022	Jan. 31, 2023	Jan. 31, 2022	Mar. 31, 2022
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized						300,000
Shares issued (in shares)	1,557,000	1,262,000
Stock Bonus Program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, award vesting period	1 year
Share-based compensation arrangement by share-based payment award, determination of shares issuable trailing period of average price of common stock	5 days
Share-based compensation arrangement by share-based payment award, number of shares authorized					300,000
Stock Bonus Program \| Forecast
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized				200,000
Discount from market price (as a percent)				15.00%
Shares issued (in shares)			125,000
Combined Stock Bonus Program and Bonus Share Program
Stock-Based Compensation Plans
Share-based compensation arrangement by share-based payment award, number of shares authorized					300,000
Discount from market price (as a percent)					15.00%
Accrued bonuses	$ 8.9				$ 6.5

COMMITMENTS AND CONTINGENCIES (Details)		3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Jun. 07, 2012 defendant	Apr. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of defendants \| defendant	3
Loss contingency, damages sought, value \| $		$ 150,000,000.0

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]

- Definition

Indicates amendment to accounting standards.

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+ Details