EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

NICE Reports 24% Year-Over-Year Cloud Revenue Growth,
 Exceeding High End of Guidance for Both Total Revenue and EPS


 •
Total revenue growth of 15% year over year

•
Cloud ARR exceeds $2 billion

•
Company reiterates full-year total revenue guidance and raises EPS guidance

•
Record high operating margin driving operating cash flow of $159 million

Hoboken, New Jersey, November 14, 2024 - NICE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2024, as compared to the corresponding period of the previous year.

Third Quarter 2024 Financial Highlights

GAAP
Non-GAAP
Total revenue was $690.0 million and increased 15%
Total revenue was $690.0 million and increased 15%
Cloud revenue was $500.1 million and increased 24%
Cloud revenue was $500.1 million and increased 24%
Operating income was $141.4 million and increased 24%
Operating income was $220.8 million and increased 20%
Operating margin was 20.5% compared to 18.9% last year
Operating margin was 32.0% compared to 30.6% last year
Diluted EPS was $1.86 and increased 34%
Diluted EPS was $2.88 and increased 27%
Operating cash flow was $159.0 million and increased 32%
  

“We are pleased to report another stellar quarter in which our financial performance and continued innovation are redefining our competitive edge, propelling us far ahead of the industry and solidifying NICE as the go-to partner for enterprises across the globe,” said Barak Eilam, CEO of NICE. “Total revenue of $690 million increased 15% compared to the same period last year, and robust profitability, marked by a 140-basis point increase in non-GAAP operating margin to a record 32%, an impressive 27% leap in non-GAAP EPS to $2.88, and another exceptional quarter of operating cash flow of $159 million, are setting new industry benchmarks.”

Mr. Eilam continued, “We owe these great results to the power of our cutting-edge AI innovation, where we delivered an outstanding quarter and an acceleration in deal signings and bookings for our CXone AI offerings, including Copilot, Autopilot and Autosummary. Our strength in AI-powered automated customer service and our market leading CXone platform, are reshaping the industry landscape as we continue to displace multiple on-premises and cloud customer service solution providers.”

GAAP Financial Highlights for the Third Quarter Ended September 30:

Revenues: Third quarter 2024 total revenues increased 15% to $690.0 million compared to $601.3 million for the third quarter of 2023.

Gross Profit: Third quarter 2024 gross profit was $460.3 million compared to $410.4 million for the third quarter of 2023. Third quarter 2024 gross margin was 66.7% compared to 68.2% for the third quarter of 2023.

Operating Income: Third quarter 2024 operating income increased 24% to $141.4 million compared to $113.6 million for the third quarter of 2023. Third quarter 2024 operating margin was 20.5% compared to 18.9% for the third quarter of 2023.

Net Income: Third quarter 2024 net income increased 31% to $120.9 million compared to $92.4 million for the third quarter of 2023. Third quarter 2024 net income margin was 17.5% compared to 15.4% for the third quarter of 2023.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2024 increased 34% to $1.86 compared to $1.39 in the third quarter of 2023.

Cash Flow and Cash Balance: Third quarter 2024 operating cash flow was $159.0 million. In the third quarter 2024, $86.4 million was used for share repurchases. As of September 30, 2024, total cash and cash equivalents, and short-term investments were $1,526.7 million. Our debt was $458.4 million, resulting in net cash and investments of $1,068.3 million.

Non-GAAP Financial Highlights for the Third Quarter Ended September 30:

Revenues: Third quarter 2024 total revenues increased 15% to $690.0 million compared to $601.3 million for the third quarter of 2023.

Gross Profit: Third quarter 2024 gross profit was $490.3 million compared to $434.4 million for the third quarter of 2023. Third quarter 2024 gross margin was 71.1% compared to 72.2% for the third quarter of 2023.

Operating Income: Third quarter 2024 operating income increased 20% to $220.8 million compared to $183.9 million for the third quarter of 2023. Third quarter 2024 operating margin was 32.0% compared to 30.6% for the third quarter of 2023.

Net Income: Third quarter 2024 net income increased 24% to $186.9 million compared to $150.6 million for the third quarter of 2023. Third quarter 2024 net income margin was 27.1% compared to 25.0% for the third quarter of 2023.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2024 increased 27% to $2.88 compared to $2.27 in the third quarter of 2023.

Full-Year 2024 Guidance:
 
The Company is reiterating its full-year 2024 non-GAAP total revenues to be in an expected 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 $10.95 to $11.15, representing 26% growth at the midpoint compared to full-year 2023.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, November 14, 2024, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: 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

Investor Relations Contact
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET

Corporate Media Contact
Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET

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


   
September 30,
    
December 31,
  
   
2024
    
2023
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
666,734
    
$
511,795
  
Short-term investments
    
859,955
      
896,044
  
Trade receivables
    
629,850
      
585,154
  
Debt hedge option
    
-
      
121,922
  
Prepaid expenses and other current assets
    
213,560
      
197,967
  
                 
Total current assets
    
2,370,099
      
2,312,882
  
                 
LONG-TERM ASSETS:
                
Property and equipment, net
    
187,447
      
174,414
  
Deferred tax assets
    
222,268
      
178,971
  
Other intangible assets, net
    
246,037
      
305,501
  
Operating lease right-of-use assets
    
96,743
      
104,565
  
Goodwill
    
1,853,115
      
1,821,969
  
Prepaid expenses and other long-term assets
    
212,904
      
219,332
  
                 
Total long-term assets
    
2,818,514
      
2,804,752
  
                 
TOTAL ASSETS
  
$
5,188,613
    
$
5,117,634
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Trade payables
  
$
71,349
    
$
66,036
  
Deferred revenues and advances from customers
    
333,968
      
302,649
  
Current maturities of operating leases
    
13,065
      
13,747
  
Debt
    
458,360
      
209,229
  
Accrued expenses and other liabilities
    
548,048
      
528,660
  
                 
Total current liabilities
    
1,424,790
      
1,120,321
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues and advances from customers
    
55,223
      
52,458
  
Operating leases
    
95,206
      
102,909
  
Deferred tax liabilities
    
9,887
      
8,596
  
Debt
    
-
      
457,081
  
Other long-term liabilities
    
23,261
      
21,769
  
                 
Total long-term liabilities
    
183,577
      
642,813
  
                 
SHAREHOLDERS' EQUITY
                
Nice Ltd's equity
    
3,567,727
      
3,341,132
  
Non-controlling interests
    
12,519
      
13,368
  
                 
Total shareholders' equity
    
3,580,246
      
3,354,500
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
5,188,613
    
$
5,117,634
  

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)

   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Revenue:
                        
Cloud
  
$
500,114
    
$
403,324
    
$
1,450,213
    
$
1,152,839
  
Services
    
149,857
      
160,220
      
446,381
      
479,022
  
Product
    
39,992
      
37,800
      
117,078
      
122,455
  
Total revenue
    
689,963
      
601,344
      
2,013,672
      
1,754,316
  
                                 
Cost of revenue:
                                
Cloud
    
178,923
      
140,564
      
519,603
      
407,144
  
Services
    
44,652
      
45,292
      
137,401
      
140,216
  
Product
    
6,111
      
5,130
      
20,134
      
19,935
  
Total cost of revenue
    
229,686
      
190,986
      
677,138
      
567,295
  
                                 
Gross profit
    
460,277
      
410,358
      
1,336,534
      
1,187,021
  
                                 
Operating expenses:
                                
Research and development, net
    
91,500
      
84,848
      
265,854
      
241,589
  
Selling and marketing
    
152,778
      
144,171
      
465,438
      
444,614
  
General and administrative
    
74,620
      
67,713
      
213,600
      
188,256
  
Total operating expenses
    
318,898
      
296,732
      
944,892
      
874,459
  
                                 
Operating income
    
141,379
      
113,626
      
391,642
      
312,562
  
                                 
Financial and other income, net
    
(12,280
)
    
(7,037
)
    
(41,934
)
    
(25,108
)
                                 
Income before tax
    
153,659
      
120,663
      
433,576
      
337,670
  
Taxes on income
    
32,738
      
28,310
      
90,497
      
81,021
  
Net income
  
$
120,921
    
$
92,353
    
$
343,079
    
$
256,649
  
                                 
                                 
Earnings per share:
                                
Basic
  
$
1.91
    
$
1.46
    
$
5.41
    
$
4.03
  
Diluted
  
$
1.86
    
$
1.39
    
$
5.22
    
$
3.86
  
                                 
Weighted average shares outstanding:
                                
Basic
    
63,397
      
63,422
      
63,403
      
63,693
  
Diluted
    
64,838
      
66,223
      
65,741
      
66,438
  

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands

   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Operating Activities
                        
                         
Net income
  
$
120,921
    
$
92,353
    
$
343,079
    
$
256,649
  
Adjustments to reconcile net income to net cash provided by operating activities:
                                
Depreciation and amortization
    
52,964
      
42,269
      
156,244
      
126,148
  
Share-based compensation
    
47,252
      
46,213
      
133,882
      
130,488
  
Amortization of premium and discount and accrued interest on marketable securities
    
(3,398
)
    
998
      
(6,726
)
    
2,044
  
Deferred taxes, net
    
(27,542
)
    
(13,915
)
    
(38,949
)
    
(30,787
)
Changes in operating assets and liabilities:
                                
Trade Receivables, net
    
(41,462
)
    
(25,807
)
    
(40,032
)
    
(17,720
)
Prepaid expenses and other current assets
    
17,164
      
(315
)
    
27,665
      
(22,361
)
Operating lease right-of-use assets
    
3,273
      
3,182
      
9,926
      
8,685
  
Trade payables
    
(2,293
)
    
11,632
      
4,646
      
784
  
Accrued expenses and other current liabilities
    
22,149
      
20,835
      
(21,555
)
    
(28,691
)
Deferred revenue
    
(28,094
)
    
(54,485
)
    
22,187
      
(39,662
)
Operating lease liabilities
    
(2,748
)
    
(4,140
)
    
(10,524
)
    
(11,541
)
Amortization of discount on long-term debt
    
430
      
1,166
      
1,404
      
3,449
  
Loss from extinguishment of debt
    
-
      
-
      
-
      
37
  
Other
    
345
      
624
      
1,872
      
3,412
  
  Net cash provided by operating activities
    
158,961
      
120,610
      
583,119
      
380,934
  
                                 
Investing Activities
                                
                                 
Purchase of property and equipment
    
(10,419
)
    
(5,507
)
    
(27,395
)
    
(23,126
)
Purchase of Investments
    
(138,219
)
    
(9,284
)
    
(575,332
)
    
(200,643
)
Proceeds from sales of marketable investments
    
60,125
      
134,486
      
628,246
      
307,038
  
Capitalization of internal use software costs
    
(16,812
)
    
(12,479
)
    
(47,986
)
    
(41,106
)
Payments for business acquisitions, net of cash acquired
    
(44,507
)
    
(18,405
)
    
(44,507
)
    
(18,405
)
Net cash provided by (used in) investing activities
    
(149,832
)
    
88,811
      
(66,974
)
    
23,758
  
                                 
Financing Activities
                                
                                 
Proceeds from issuance of shares upon exercise of options
    
28
      
43
      
2,340
      
1,767
  
Purchase of treasury shares
    
(86,437
)
    
(89,506
)
    
(274,040
)
    
(219,417
)
Dividends paid to noncontrolling interest
    
-
      
-
      
(2,681
)
    
(1,480
)
Repayment of debt
    
-
      
(23
)
    
(87,435
)
    
(1,557
)
 Net cash used in financing activities
    
(86,409
)
    
(89,486
)
    
(361,816
)
    
(220,687
)
                                 
Effect of exchange rates on cash and cash equivalents
    
4,508
      
(2,824
)
    
1,260
      
(1,111
)
                                 
Net change in cash, cash equivalents and restricted cash
    
(72,772
)
    
117,111
      
155,589
      
182,894
  
Cash, cash equivalents and restricted cash, beginning of period
  
$
741,675
    
$
598,879
    
$
513,314
    
$
533,096
  
                                 
Cash, cash equivalents and restricted cash, end of period
  
$
668,903
    
$
715,990
    
$
668,903
    
$
715,990
  
                                 
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
                          
Cash and cash equivalents
  
$
666,734
    
$
713,090
    
$
666,734
    
$
713,090
  
Restricted cash included in other current assets
  
$
2,169
    
$
2,900
    
$
2,169
    
$
2,900
  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
  
$
668,903
    
$
715,990
    
$
668,903
    
$
715,990
  

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
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
GAAP revenues
  
$
689,963
    
$
601,344
    
$
2,013,672
    
$
1,754,316
  
Non-GAAP revenues
  
$
689,963
    
$
601,344
    
$
2,013,672
    
$
1,754,316
  
                                 
GAAP cost of revenue
  
$
229,686
    
$
190,986
    
$
677,138
    
$
567,295
  
Amortization of acquired intangible assets on cost of cloud
    
(24,278
)
    
(18,967
)
    
(73,778
)
    
(57,732
)
Amortization of acquired intangible assets on cost of product
    
-
      
(260
)
    
(410
)
    
(766
)
Cost of cloud revenue adjustment (1,2)
    
(3,175
)
    
(2,160
)
    
(9,029
)
    
(6,360
)
Cost of services revenue adjustment (1)
    
(2,511
)
    
(3,016
)
    
(7,506
)
    
(8,764
)
Cost of product revenue adjustment (1)
    
(30
)
    
384
      
(90
)
    
106
  
Non-GAAP cost of revenue
  
$
199,692
    
$
166,967
    
$
586,325
    
$
493,779
  
                                 
GAAP gross profit
  
$
460,277
    
$
410,358
    
$
1,336,534
    
$
1,187,021
  
Gross profit adjustments
    
29,994
      
24,019
      
90,813
      
73,516
  
Non-GAAP gross profit
  
$
490,271
    
$
434,377
    
$
1,427,347
    
$
1,260,537
  
                                 
GAAP operating expenses
  
$
318,898
    
$
296,732
    
$
944,892
    
$
874,459
  
Research and development (1,2)
    
(6,734
)
    
(8,224
)
    
(22,361
)
    
(24,405
)
Sales and marketing (1,2)
    
(14,944
)
    
(12,376
)
    
(42,326
)
    
(36,533
)
General and administrative (1,2)
    
(22,154
)
    
(22,348
)
    
(59,414
)
    
(57,703
)
Amortization of acquired intangible assets
    
(5,613
)
    
(3,308
)
    
(15,824
)
    
(12,251
)
Valuation adjustment on acquired deferred commission
    
1
      
30
      
24
      
106
  
Non-GAAP operating expenses
  
$
269,454
    
$
250,506
    
$
804,991
    
$
743,673
  
                                 
GAAP financial and other income, net
  
$
(12,280
)
  
$
(7,037
)
  
$
(41,934
)
  
$
(25,108
)
Amortization of discount and loss of extinguishment on debt
    
(430
)
    
(1,166
)
    
(1,404
)
    
(3,486
)
Change in fair value of contingent consideration
    
(36
)
    
(239
)
    
(115
)
    
(817
)
Non-GAAP financial and other income, net
  
$
(12,746
)
  
$
(8,442
)
  
$
(43,453
)
  
$
(29,411
)
                                 
GAAP taxes on income
  
$
32,738
    
$
28,310
    
$
90,497
    
$
81,021
  
Tax adjustments re non-GAAP adjustments
    
13,886
      
13,372
      
42,665
      
37,473
  
Non-GAAP taxes on income
  
$
46,624
    
$
41,682
    
$
133,162
    
$
118,494
  
                                 
GAAP net income
  
$
120,921
    
$
92,353
    
$
343,079
    
$
256,649
  
Amortization of acquired intangible assets
    
29,891
      
22,535
      
90,012
      
70,749
  
Valuation adjustment on acquired deferred commission
    
(1
)
    
(30
)
    
(24
)
    
(106
)
Share-based compensation (1)
    
48,731
      
47,287
      
137,997
      
133,206
  
Acquisition related and other expenses (2)
    
817
      
453
      
2,729
      
453
  
Amortization of discount and loss of extinguishment on debt
    
430
      
1,166
      
1,404
      
3,486
  
Change in fair value of contingent consideration
    
36
      
239
      
115
      
817
  
Tax adjustments re non-GAAP adjustments
    
(13,886
)
    
(13,372
)
    
(42,665
)
    
(37,473
)
Non-GAAP net income
  
$
186,939
    
$
150,631
    
$
532,647
    
$
427,781
  
                                 
GAAP diluted earnings per share
  
$
1.86
    
$
1.39
    
$
5.22
    
$
3.86
  
                                 
Non-GAAP diluted earnings per share
  
$
2.88
    
$
2.27
    
$
8.10
    
$
6.44
  
                                 
Shares used in computing GAAP diluted earnings per share
    
64,838
      
66,223
      
65,741
      
66,438
  
                                 
Shares used in computing non-GAAP diluted earnings per share
    
64,838
      
66,223
      
65,741
      
66,438
  

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
  
     
September 30,
    
September 30,
  
     
2024
    
2023
    
2024
    
2023
  
                           
 
Cost of cloud revenue
  
$
3,175
    
$
2,160
    
$
8,967
    
$
6,360
  
 
Cost of services revenue
    
2,511
      
3,016
      
7,506
      
8,764
  
 
Cost of product revenue
    
30
      
(384
)
    
90
      
(106
)
 
Research and development
    
6,734
      
8,224
      
22,031
      
24,405
  
 
Sales and marketing
    
14,937
      
12,351
      
41,676
      
36,508
  
 
General and administrative
    
21,344
      
21,920
      
57,727
      
57,275
  
     
$
48,731
    
$
47,287
    
$
137,997
    
$
133,206
  

(2)
Acquisition related and other expenses
                        
     
Quarter ended
    
Year to date
  
     
September 30,
    
September 30,
  
     
2024
    
2023
    
2024
    
2023
  
                           
 
Cost of cloud revenue
  
$
-
    
$
-
    
$
62
    
$
-
  
 
Research and development
    
-
      
-
      
330
      
-
  
 
Sales and marketing
    
7
      
25
      
650
      
25
  
 
General and administrative
    
810
      
428
      
1,687
      
428
  
     
$
817
    
$
453
    
$
2,729
    
$
453
  

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
U.S. dollars in thousands

   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
GAAP net income
  
$
120,921
    
$
92,353
    
$
343,079
    
$
256,649
  
Non-GAAP adjustments:
                                
Depreciation and amortization
    
52,964
      
42,269
      
156,244
      
126,148
  
Share-based compensation
    
47,252
      
46,213
      
133,882
      
130,488
  
Financial and other income, net
    
(12,280
)
    
(7,037
)
    
(41,934
)
    
(25,108
)
Acquisition related and other expenses
    
817
      
453
      
2,729
      
453
  
Valuation adjustment on acquired deferred commission
    
(1
)
    
(30
)
    
(24
)
    
(106
)
Taxes on income
    
32,738
      
28,310
      
90,497
      
81,021
  
Non-GAAP EBITDA
  
$
242,411
    
$
202,531
    
$
684,473
    
$
569,545
  

NICE LTD. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
U.S. dollars in thousands

   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
  Net cash provided by operating activities
  
$
158,961
    
$
120,610
    
$
583,119
    
$
380,934
  
                                 
Purchase of property and equipment
    
(10,419
)
    
(5,507
)
    
(27,395
)
    
(23,126
)
Capitalization of internal use software costs
    
(16,812
)
    
(12,479
)
    
(47,986
)
    
(41,106
)
                                 
  Free Cash Flow (a)
  
$
131,730
    
$
102,624
    
$
507,738
    
$
316,702
  

(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.