- Total revenue growth of 14% year over year
- Company raises its full-year 2024 EPS guidance
- Operating cash flow of $170 million increased 160% year over
year
- Share repurchases accelerated to $146 million for Q2 2024
NICE (NASDAQ: NICE) today announced results for the
second quarter ended June 30, 2024, as compared to the
corresponding period of the previous year.
Second Quarter 2024 Financial Highlights
GAAP
Non-GAAP
Total revenue was $664.4 million and
increased 14%
Total revenue was $664.4 million and
increased 14%
Cloud revenue was $481.7 million and
increased 26%
Cloud revenue was $481.7 million and
increased 26%
Operating income was $128.8 million and
increased 22%
Operating income was $201.7 million and
increased 19%
Operating margin was 19.4% compared to
18.1% last year
Operating margin was 30.4% compared to
29.2% last year
Diluted EPS was $1.76 and increased
34%
Diluted EPS was $2.64 and increased
24%
Operating cash flow was $169.7 million and
increased 160%
“We are pleased to conclude the first half of 2024 with strong
Q2 results across the board. Total revenue increased 14% to $664
million, once again driven by industry-leading cloud growth of
26%,” said Barak Eilam, CEO of NICE. “The growing adoption of our
extensive and innovative portfolio of AI solutions fueled an
all-time record quarter for CXone bookings.
“Our consistently robust top line results continue to drive
top-tier software industry profitability. We reported our fourth
consecutive quarter of non-GAAP operating margin of at least 30%
and exceeded the high end our non-GAAP earnings per share guidance
range with $2.64. Additionally, we generated $170 million in
operating cash in Q2, and $725 million over the past 12
months.”
Mr. Eilam continued, “We continue to gain market share with the
most comprehensive CX platform in CXone, rapid innovation in AI
that is experiencing significant enterprise adoption and the
flexibility afforded by our rock-solid financial position. We are
positioned to further expand our market leadership and deliver
long-term growth.”
GAAP Financial Highlights for the
Second Quarter Ended June 30:
Revenues: Second quarter 2024 total revenues increased
14% to $664.4 million compared to $581.1 million for the second
quarter of 2023.
Gross Profit: Second quarter 2024 gross profit was $439.6
million compared to $391.4 million for the second quarter of 2023.
Second quarter 2024 gross margin was 66.2% compared to 67.4% for
the second quarter of 2023.
Operating Income: Second quarter 2024 operating income
increased 22% to $128.8 million compared to $105.4 million for the
second quarter of 2023. Second quarter 2024 operating margin was
19.4% compared to 18.1% for the second quarter of 2023.
Net Income: Second quarter 2024 net income increased 33%
to $115.8 million compared to $87.4 million for the second quarter
of 2023. Second quarter 2024 net income margin was 17.4% compared
to 15.0% for the second quarter of 2023.
Fully Diluted Earnings Per Share: Fully diluted earnings
per share for the second quarter of 2024 increased 34% to $1.76
compared to $1.31 in the second quarter of 2023.
Cash Flow and Cash Balance: Second quarter 2024 operating
cash flow was $169.7 million. In the second quarter 2024, $146.1
million was used for share repurchases. As of June 30, 2024, total
cash and cash equivalents, and short-term investments were $1,503.6
million. Our debt was $457.9 million, resulting in net cash and
investments of $1,045.7 million.
Non-GAAP Financial Highlights for the
Second Quarter Ended June 30:
Revenues: Second quarter 2024 total revenues increased
14% to $664.4 million compared to $581.1 million for the second
quarter of 2023.
Gross Profit: Second quarter 2024 gross profit was $469.4
million compared to $416.3 million for the second quarter of 2023.
Second quarter 2024 gross margin was 70.7% compared to 71.6% for
the second quarter of 2023.
Operating Income: Second quarter 2024 operating income
increased 19% to $201.7 million compared to $169.6 million for the
second quarter of 2023. Second quarter 2024 operating margin was
30.4% compared to 29.2% for the second quarter of 2023.
Net Income: Second quarter 2024 net income increased 23%
to $174.2 million compared to $141.5 million for the second quarter
of 2023. Second quarter 2024 net income margin was 26.2% compared
to 24.4% for the second quarter of 2023.
Fully Diluted Earnings Per Share: Fully diluted earnings
per share for the second quarter of 2024 increased 24% to $2.64
compared to $2.13 in the second quarter of 2023.
Third Quarter and Full Year 2024
Guidance:
Third-Quarter 2024: Third-quarter 2024 non-GAAP total
revenues are expected to be in a range of $676 million to $686
million, representing 13% growth year over year at the
midpoint.
Third-quarter 2024 non-GAAP fully diluted earnings per share are
expected to be in a range of $2.62 to $2.72, representing 18%
growth year over year at the midpoint.
Full-Year 2024: Full-year 2024 non-GAAP total revenues
are expected to be in a range of $2,715 million to $2,735 million,
representing 15% growth at the midpoint compared to full-year
2023.
The Company increased full-year 2024 non-GAAP fully diluted
earnings per share which are expected to be in a range of $10.60 to
$10.80, representing 22% growth at the midpoint compared to
full-year 2023.
Quarterly Results Conference Call
NICE management will host its earnings conference call today
August 15, 2024, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss
the results and the company's outlook. To participate in the call,
please dial into the following numbers: United States
1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429,
Israel 1-809-406-247. The call will be webcast live on the
Company’s website at
https://www.nice.com/investor-relations/upcoming-event.
Explanation of Non-GAAP measures Non-GAAP financial
measures are included in this press release. Non-GAAP financial
measures consist of GAAP financial measures adjusted to exclude
share-based compensation, amortization of acquired intangible
assets, acquisition related and other expenses, amortization of
discount on debt and loss from extinguishment of debt and the tax
effect of the Non-GAAP adjustments.
The Company believes that these Non-GAAP financial measures,
used in conjunction with the corresponding GAAP measures, provide
investors with useful supplemental information about the financial
performance of our business. We believe Non-GAAP financial measures
are useful to investors as a measure of the ongoing performance of
our business. Our management regularly uses our supplemental
Non-GAAP financial measures internally to understand, manage and
evaluate our business and to make financial, strategic and
operating decisions. These Non-GAAP measures are among the primary
factors management uses in planning for and forecasting future
periods. Our Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
These Non-GAAP financial measures may differ materially from the
Non-GAAP financial measures used by other companies. Reconciliation
between results on a GAAP and Non-GAAP basis is provided in a table
immediately following the Consolidated Statements of Income. The
Company provides guidance only on a Non-GAAP basis. A
reconciliation of guidance from a GAAP to Non-GAAP basis is not
available due to the unpredictability and uncertainty associated
with future events that would be reported in GAAP results and would
require adjustments between GAAP and Non-GAAP financial measures,
including the impact of future possible business acquisitions.
Accordingly, a reconciliation of the guidance based on Non-GAAP
financial measures to corresponding GAAP financial measures for
future periods is not available without unreasonable effort.
About NICE With NICE (Nasdaq: NICE), it’s never been
easier for organizations of all sizes around the globe to create
extraordinary customer experiences while meeting key business
metrics. Featuring the world’s #1 cloud native customer experience
platform, CXone, NICE is a worldwide leader in AI-powered
self-service and agent-assisted CX software for the contact center
– and beyond. Over 25,000 organizations in more than 150 countries,
including over 85 of the Fortune 100 companies, partner with NICE
to transform - and elevate - every customer interaction.
www.nice.com
Trademark Note: NICE and the NICE logo are trademarks or
registered trademarks of NICE. All other marks are trademarks of
their respective owners. For a full list of NICE' marks, please
see: http://www.nice.com/nice-trademarks.
Forward-Looking Statements This press release contains
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. In some cases,
forward-looking statements may be identified by words such as
“believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,”
“project,” “anticipate,” “plan,” and similar expressions.
Forward-looking statements are based on the current beliefs,
expectations and assumptions of the Company’s management regarding
the future of the Company’s business, performance, future plans and
strategies, projections, anticipated events and trends, the
economic environment, and other future conditions. Examples of
forward-looking statements include guidance regarding the Company’s
revenue and earnings and the growth of our cloud, analytics and
artificial intelligence business.
Forward looking statements are inherently subject to significant
uncertainties, contingencies, and risks, including, economic,
competitive and other factors, which are difficult to predict and
many of which are beyond the control of management. The Company
cautions that these statements are not guarantees of future
performance, and investors should not place undue reliance on them.
There are or will be important known and unknown factors and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
These factors, include, but are not limited to, risks associated
with changes in economic and business conditions, competition,
successful execution of the Company’s growth strategy, success and
growth of the Company’s cloud Software-as-a-Service business,
difficulties in making additional acquisitions or effectively
integrating acquired operations, products, technologies and
personnel, the Company’s dependency on third-party cloud computing
platform providers, hosting facilities and service partners,
rapidly changing technology, cyber security attacks or other
security breaches against the Company, privacy concerns and
legislation impacting the Company’s business, changes in currency
exchange rates and interest rates, the effects of additional tax
liabilities resulting from our global operations, the effect of
unexpected events or geo-political conditions, such as the impact
of conflicts in the Middle East, that may disrupt our business and
the global economy and various other factors and uncertainties
discussed in our filings with the U.S. Securities and Exchange
Commission (the “SEC”).
You are encouraged to carefully review the section entitled
“Risk Factors” in our latest Annual Report on Form 20-F and our
other filings with the SEC for additional information regarding
these and other factors and uncertainties that could affect our
future performance. The forward-looking statements contained in
this press release speak only as of the date hereof, and the
Company undertakes no obligation to update or revise them, whether
as a result of new information, future developments or otherwise,
except as required by law.
NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
U.S. dollars in thousands
June 30,
December 31,
2024
2023
Unaudited
Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
739,556
$
511,795
Short-term investments
764,042
896,044
Trade receivables
580,101
585,154
Debt hedge option
-
121,922
Prepaid expenses and other current
assets
216,908
197,967
Total current assets
2,300,607
2,312,882
LONG-TERM ASSETS:
Property and equipment, net
181,689
174,414
Deferred tax assets
190,471
178,971
Other intangible assets, net
245,299
305,501
Operating lease right-of-use assets
98,957
104,565
Goodwill
1,820,746
1,821,969
Prepaid expenses and other long-term
assets
214,050
219,332
Total long-term assets
2,751,212
2,804,752
TOTAL ASSETS
$
5,051,819
$
5,117,634
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
Trade payables
$
73,129
$
66,036
Deferred revenues and advances from
customers
342,405
302,649
Current maturities of operating leases
13,057
13,747
Debt
-
209,229
Accrued expenses and other liabilities
509,779
528,660
Total current liabilities
938,370
1,120,321
LONG-TERM LIABILITIES:
Deferred revenues and advances from
customers
60,839
52,458
Operating leases
96,861
102,909
Deferred tax liabilities
8,057
8,596
Debt
457,930
457,081
Other long-term liabilities
22,900
21,769
Total long-term liabilities
646,587
642,813
SHAREHOLDERS' EQUITY
Nice Ltd's equity
3,455,172
3,341,132
Non-controlling interests
11,690
13,368
Total shareholders' equity
3,466,862
3,354,500
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
$
5,051,819
$
5,117,634
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
U.S. dollars in thousands (except per
share amounts)
Quarter ended
Year ended
June 30,
June 30,
2024
2023
2024
2023
Unaudited
Unaudited
Unaudited
Unaudited
Revenue:
Cloud
$
481,693
$
381,948
$
950,099
$
749,515
Services
147,611
158,945
296,524
318,802
Product
35,096
40,220
77,086
84,655
Total revenue
664,400
581,113
1,323,709
1,152,972
Cost of revenue:
Cloud
170,702
134,984
340,680
266,580
Services
46,663
47,019
92,749
94,924
Product
7,418
7,710
14,023
14,805
Total cost of revenue
224,783
189,713
447,452
376,309
Gross profit
439,617
391,400
876,257
776,663
Operating expenses:
Research and development, net
86,522
78,640
174,354
156,741
Selling and marketing
157,645
151,964
312,660
300,443
General and administrative
66,626
55,367
138,980
120,543
Total operating expenses
310,793
285,971
625,994
577,727
Operating income
128,824
105,429
250,263
198,936
Financial and other income, net
(15,645)
(9,350)
(29,654)
(18,071)
Income before tax
144,469
114,779
279,917
217,007
Taxes on income
28,684
27,424
57,759
52,711
Net income
$
115,785
$
87,355
$
222,158
$
164,296
Earnings per share:
Basic
$
1.82
$
1.37
$
3.50
$
2.57
Diluted
$
1.76
$
1.31
$
3.36
$
2.47
Weighted average shares outstanding:
Basic
63,534
63,723
63,406
63,831
Diluted
65,856
66,435
66,192
66,548
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW
STATEMENTS
U.S. dollars in thousands
Quarter ended
Year ended
June 30,
June 30,
2024
2023
2024
2023
Unaudited
Unaudited
Unaudited
Unaudited
Operating
Activities
Net income
$
115,785
$
87,355
$
222,158
$
164,296
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
51,520
42,033
103,280
83,879
Share-based compensation
42,226
39,314
86,630
84,275
Amortization of premium and discount and
accrued interest on marketable securities
(2,096)
(224)
(3,328)
1,046
Deferred taxes, net
(15,773)
(8,994)
(11,407)
(16,872)
Changes in operating assets and
liabilities:
Trade Receivables, net
(6,707)
(8,665)
1,430
8,087
Prepaid expenses and other current
assets
1,740
(10,674)
10,501
(22,046)
Operating lease right-of-use assets
3,372
2,435
6,653
5,503
Trade payables
17,702
(9,668)
6,939
(10,848)
Accrued expenses and other current
liabilities
(40,836)
(48,832)
(43,704)
(49,526)
Deferred revenue
4,742
(18,424)
50,281
14,823
Operating lease liabilities
(3,976)
(3,494)
(7,776)
(7,401)
Amortization of discount on long-term
debt
425
1,129
974
2,283
Loss from extinguishment of debt
-
37
-
37
Other
1,544
1,926
1,527
2,789
Net cash provided by operating
activities
169,668
65,254
424,158
260,325
Investing
Activities
Purchase of property and equipment
(6,455)
(4,513)
(16,976)
(17,619)
Purchase of Investments
(105,991)
(121,817)
(437,113)
(191,359)
Proceeds from sales of marketable
investments
51,971
107,653
568,121
172,552
Capitalization of internal use software
costs
(15,238)
(14,491)
(31,174)
(28,627)
Net cash provided by (used in) investing
activities
(75,713)
(33,168)
82,858
(65,053)
Financing
Activities
Proceeds from issuance of shares upon
exercise of options
520
765
2,312
1,724
Purchase of treasury shares
(146,088)
(65,196)
(187,603)
(129,911)
Dividends paid to noncontrolling
interest
-
-
(2,681)
(1,480)
Repayment of debt
-
(1,534)
(87,435)
(1,534)
Net cash used in financing activities
(145,568)
(65,965)
(275,407)
(131,201)
Effect of exchange rates on cash and cash
equivalents
(1,309)
546
(3,248)
1,713
Net change in cash, cash equivalents and
restricted cash
(52,922)
(33,333)
228,361
65,784
Cash, cash equivalents and restricted
cash, beginning of period
$
794,597
$
632,212
$
513,314
$
533,095
Cash, cash equivalents and restricted
cash, end of period
$
741,675
$
598,879
$
741,675
$
598,879
Reconciliation of cash, cash equivalents
and restricted cash reported in the consolidated balance sheet:
Cash and cash equivalents
$
739,556
$
598,079
$
739,556
$
598,079
Restricted cash included in other current
assets
$
2,119
$
800
$
2,119
$
800
Total cash, cash equivalents and
restricted cash shown in the statement of cash flows
$
741,675
$
598,879
$
741,675
$
598,879
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
U.S. dollars in thousands (except per
share amounts)
Quarter ended
Year to date
June 30,
June 30,
2024
2023
2024
2023
GAAP revenues
$
664,400
$
581,113
$
1,323,709
$
1,152,972
Non-GAAP revenues
$
664,400
$
581,113
$
1,323,709
$
1,152,972
GAAP cost of revenue
$
224,783
$
189,713
$
447,452
$
376,309
Amortization of acquired intangible assets
on cost of cloud
(24,133)
(19,396)
(49,500)
(38,765)
Amortization of acquired intangible assets
on cost of product
(150)
(257)
(410)
(506)
Cost of cloud revenue adjustment (1,2)
(2,852)
(2,253)
(5,854)
(4,200)
Cost of services revenue adjustment
(1)
(2,617)
(2,864)
(4,995)
(5,748)
Cost of product revenue adjustment (1)
(30)
(140)
(60)
(278)
Non-GAAP cost of revenue
$
195,001
$
164,803
$
386,633
$
326,812
GAAP gross profit
$
439,617
$
391,400
$
876,257
$
776,663
Gross profit adjustments
29,782
24,910
60,819
49,497
Non-GAAP gross profit
$
469,399
$
416,310
$
937,076
$
826,160
GAAP operating expenses
$
310,793
$
285,971
$
625,994
$
577,727
Research and development (1,2)
(7,484)
(7,783)
(15,627)
(16,181)
Sales and marketing (1,2)
(13,210)
(13,055)
(27,382)
(24,157)
General and administrative (1,2)
(17,429)
(14,059)
(37,260)
(35,355)
Amortization of acquired intangible
assets
(4,972)
(4,428)
(10,211)
(8,943)
Valuation adjustment on acquired deferred
commission
8
36
23
76
Non-GAAP operating expenses
$
267,706
$
246,682
$
535,537
$
493,167
GAAP financial and other income, net
$
(15,645)
$
(9,350)
$
(29,654)
$
(18,071)
Amortization of discount and loss of
extinguishment on debt
(425)
(1,166)
(974)
(2,320)
Change in fair value of contingent
consideration
(35)
(578)
(79)
(578)
Non-GAAP financial and other income,
net
$
(16,105)
$
(11,094)
$
(30,707)
$
(20,969)
GAAP taxes on income
$
28,684
$
27,424
$
57,759
$
52,711
Tax adjustments re non-GAAP
adjustments
14,963
11,793
28,779
24,101
Non-GAAP taxes on income
$
43,647
$
39,217
$
86,538
$
76,812
GAAP net income
$
115,785
$
87,355
$
222,158
$
164,296
Amortization of acquired intangible
assets
29,255
24,081
60,121
48,214
Valuation adjustment on acquired deferred
commission
(8)
(36)
(23)
(76)
Share-based compensation (1)
43,622
40,154
89,266
85,919
Acquisition related and other expenses
(2)
-
-
1,912
-
Amortization of discount and loss of
extinguishment on debt
425
1,166
974
2,320
Change in fair value of contingent
consideration
35
578
79
578
Tax adjustments re non-GAAP
adjustments
(14,963)
(11,793)
(28,779)
(24,101)
Non-GAAP net income
$
174,151
$
141,505
$
345,708
$
277,150
GAAP diluted earnings per share
$
1.76
$
1.31
$
3.36
$
2.47
Non-GAAP diluted earnings per share
$
2.64
$
2.13
$
5.22
$
4.16
Shares used in computing GAAP diluted
earnings per share
65,856
66,435
66,192
66,548
Shares used in computing non-GAAP diluted
earnings per share
65,856
66,435
66,192
66,548
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS (continued)
U.S. dollars in thousands
(1)
Share-based
compensation
Quarter ended
Year to date
June 30,
June 30,
2024
2023
2024
2023
Cost of cloud revenue
$
2,852
$
2,253
$
5,792
$
4,200
Cost of services revenue
2,617
2,864
4,995
5,748
Cost of product revenue
30
140
60
278
Research and development
7,484
7,783
15,297
16,181
Sales and marketing
13,210
13,055
26,739
24,157
General and administrative
17,429
14,059
36,383
35,355
$
43,622
$
40,154
$
89,266
$
85,919
(2)
Acquisition
related and other expenses
Quarter ended
Year to date
June 30,
June 30,
2024
2023
2024
2023
Cost of cloud revenue
$
-
$
-
$
62
$
-
Research and development
-
-
330
-
Sales and marketing
-
-
643
-
General and administrative
-
-
877
-
$
-
$
-
$
1,912
$
-
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO
NON-GAAP EBITDA
U.S. dollars in thousands
Quarter ended
Year to date
June 30,
June 30,
2024
2023
2024
2023
Unaudited
Unaudited
Unaudited
Unaudited
GAAP net income
$
115,785
$
87,355
$
222,158
$
164,296
Non-GAAP adjustments:
Depreciation and amortization
51,520
42,033
103,280
83,879
Share-based compensation
42,226
39,314
86,630
84,275
Financial and other expense/ (income),
net
(15,645)
(9,350)
(29,654)
(18,071)
Acquisition related and other expenses
-
-
1,912
-
Valuation adjustment on acquired deferred
commission
(8)
(36)
(23)
(76)
Taxes on income
28,684
27,424
57,759
52,711
Non-GAAP EBITDA
$
222,562
$
186,740
$
442,062
$
367,014
NICE LTD. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - FREE CASH
FLOW FROM CONTINUING OPERATIONS
U.S. dollars in thousands
Quarter ended
Year to date
June 30,
June 30,
2024
2023
2024
2023
Unaudited
Unaudited
Unaudited
Unaudited
Net cash provided by operating
activities
$
169,668
$
65,254
$
424,158
$
260,325
Purchase of property and equipment
(6,455)
(4,513)
(16,976)
(17,619)
Capitalization of internal use software costs
(15,238)
(14,491)
(31,174)
(28,627)
Free Cash Flow (a)
$
147,975
$
46,250
$
376,008
$
214,079
(a) Free cash flow from continuing operations is defined as
operating cash flows from continuing operations less capital
expenditures of the continuing operations and less capitalization
of internal use software costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240815570615/en/
Investor Relations Marty Cohen, +1 551 256 5354,
ir@nice.com, ET Omri Arens, +972 3 763-0127, ir@nice.com, CET
Corporate Media Christopher Irwin-Dudek, +1 201 561 4442,
media@nice.com, ET
NICE (NASDAQ:NICE)
Historical Stock Chart
From Oct 2024 to Nov 2024
NICE (NASDAQ:NICE)
Historical Stock Chart
From Nov 2023 to Nov 2024
