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

NICE Reports 23% Year-Over-Year Cloud Revenue Growth in Second Quarter 2023


 •
Double Digit Growth in Revenue, Operating Income and EPS

•
Company Raises Full Year 2023 Guidance for Revenue and EPS

Hoboken, New Jersey, August 17, 2023 - NICE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2023, as compared to the corresponding period of the previous year.

Second Quarter 2023 Financial Highlights

GAAP
Non-GAAP
Total revenue was $581.1 million and increased 10%
Total revenue was $581.1 million and increased 10%
Cloud revenue was $381.9 million and increased 23%
Cloud revenue was $381.9 million and increased 23%
Cloud gross margin was 64.7% compared to 63.6% last year
Cloud gross margin was 70.3% compared to 70.1% last year
Operating income was $105.4 million and increased 24%
Operating income was $169.6 million and increased 10%
Operating margin was 18.1% compared to 16.0% last year
Operating margin was 29.2% compared to 29.0% last year
Diluted EPS was $1.31 and increased 33%
Diluted EPS was $2.13 and increased 15%
Operating cash flow was $65.3 million
  

“Our second quarter results were marked by a strong financial performance across the board with 10% total revenue growth driven by a 23% increase in cloud revenue. Additionally, our industry-leading profitability continued unabated with further expansion in our cloud gross margin along with double-digit growth in operating income and earnings per share,” said Barak Eilam, CEO of NICE.

Mr. Eilam continued, “The market is characterized by a fast-moving transition to the cloud by large enterprises coupled with strong demand to incorporate AI into their customer service organizations. NICE is well positioned to leverage these dynamics as we have been smartly investing over the past several years in both the cloud and AI to deliver the industry-leading, AI powered cloud platform in CXone. Supported by a robust capital structure and industry-best profitability, our investments continue to deliver results highlighted by 70% growth in digital bookings and a record bookings quarter for Enlighten, our AI foundation, that underlies the entire CXone platform.”

GAAP Financial Highlights for the Second Quarter Ended June 30:

Revenues: Second quarter 2023 total revenues increased 10% to $581.1 million compared to $530.6 million for the second quarter of 2022.

Gross Profit: Second quarter 2023 gross profit was $391.4 million compared to $365.7 million for the second quarter of 2022. Second quarter 2023 gross margin was 67.4% compared to 68.9% for the second quarter of 2022.

Operating Income: Second quarter 2023 operating income increased 24% to $105.4 million compared to $84.7 million for the second quarter of 2022. Second quarter 2023 operating margin was 18.1% compared to 16.0% for the second quarter of 2022.

Net Income: Second quarter 2023 net income increased 33% to $87.4 million compared to $65.6 million for the second quarter of 2022. Second quarter 2023 net income margin was 15.0% compared to 12.4% for the second quarter of 2022.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2023 increased 33% to $1.31 compared to $0.99 in the second quarter of 2022.

Operating Cash Flow and Cash Balance: Second quarter 2023 operating cash flow was $65.3 million. In the second quarter 2023, $65.2 million was used for share repurchases. As of June 30, 2023, total cash and cash equivalents, and short-term investments were $1,662.4 million. Our debt, net of a hedge instrument, was $543.1 million, resulting in net cash and investments of $1,119.3 million.
 
Non-GAAP Financial Highlights for the Second Quarter Ended June 30:
 
Revenues: Second quarter 2023 total revenues increased 10% to $581.1 million compared to $530.6 million for the second quarter of 2022.

Gross Profit: Second quarter 2023 Non-GAAP gross profit increased to $416.3 million compared to $388.9 million for the second quarter of 2022. Second quarter 2023 Non-GAAP gross margin was 71.6% compared to 73.3% for the second quarter of 2022.

Operating Income: Second quarter 2023 Non-GAAP operating income increased 10% to $169.6 million compared to $154.0 million for the second quarter of 2022. Second quarter 2023 Non-GAAP operating margin was 29.2% compared to 29.0% for the second quarter of 2022.

Net Income: Second quarter 2023 Non-GAAP net income increased 15% to $141.5 million compared to $123.2 million for the second quarter of 2022. Second quarter 2023 Non-GAAP net income margin totaled 24.4% compared to 23.2% for the second quarter of 2022.

Fully Diluted Earnings Per Share: Second quarter 2023 Non-GAAP fully diluted earnings per share increased 15% to $2.13 compared to $1.86 for the second quarter of 2022.

Third Quarter and Full Year 2023 Guidance:
 
Third Quarter 2023:
Third quarter 2023 Non-GAAP total revenues are expected to be in a range of $590 million to $600 million, representing 7% growth year over year at the midpoint.

Third quarter 2023 Non-GAAP fully diluted earnings per share are expected to be in a range of $2.10 to $2.20, representing 12% growth year over year at the midpoint.

Raising Full Year 2023 Guidance:
The Company increased full-year 2023 Non-GAAP total revenues to an expected range of $2,353 million to $2,373 million, representing 8% growth at the midpoint compared to full year 2022.

The Company increased full-year 2023 Non-GAAP fully diluted earnings per share to an expected range of $8.40 to $8.60, representing 12% growth at the midpoint compared to full year 2022.


Quarterly Results Conference Call

NICE management will host its earnings conference call today August 17, 2023, 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 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
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. 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

Media Contact
Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@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, future plans and strategies, projections, anticipated events and trends, the economy 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 economic, competitive and other uncertainties and contingencies, 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 COVID-19 pandemic, 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,
  
   
2023
    
2022
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
598,079
    
$
529,596
  
Short-term investments
    
1,064,304
      
1,041,943
  
Trade receivables
    
513,881
      
518,517
  
Debt hedge option
    
133,517
      
122,323
  
Prepaid expenses and other current assets
    
204,080
      
204,754
  
                 
Total current assets
    
2,513,861
      
2,417,133
  
                 
LONG-TERM ASSETS:
                
Property and equipment, net
    
171,203
      
159,285
  
Deferred tax assets
    
132,264
      
116,889
  
Other intangible assets, net
    
162,044
      
209,605
  
Operating lease right-of-use assets
    
100,022
      
102,893
  
Goodwill
    
1,623,549
      
1,617,118
  
Prepaid expenses and other long-term assets
    
226,395
      
231,496
  
                 
Total long-term assets
    
2,415,477
      
2,437,286
  
                 
TOTAL ASSETS
  
$
4,929,338
    
$
4,854,419
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Trade payables
  
$
45,269
    
$
56,019
  
Deferred revenues and advances from customers
    
361,764
      
338,930
  
Current maturities of operating leases
    
12,911
      
13,525
  
Debt
    
220,427
      
209,292
  
Accrued expenses and other liabilities
    
446,299
      
523,451
  
                 
Total current liabilities
    
1,086,670
      
1,141,217
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues and advances from customers
    
50,946
      
57,211
  
Operating leases
    
95,100
      
99,262
  
Deferred tax liabilities
    
6,709
      
7,336
  
Debt
    
456,223
      
455,382
  
Other long-term liabilities
    
38,888
      
38,588
  
                 
Total long-term liabilities
    
647,866
      
657,779
  
                 
SHAREHOLDERS' EQUITY
                
Nice Ltd's equity
    
3,182,461
      
3,042,085
  
Non-controlling interests
    
12,341
      
13,338
  
                 
Total shareholders' equity
    
3,194,802
      
3,055,423
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
4,929,338
    
$
4,854,419
  


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

   
Quarter ended
    
Year to date
  
   
June 30,
    
June 30,
  
   
2023
    
2022
    
2023
    
2022
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Revenue:
                        
Cloud
  
$
381,948
    
$
311,394
    
$
749,515
    
$
605,986
  
Services
    
158,945
      
166,733
      
318,802
      
323,707
  
Product
    
40,220
      
52,454
      
84,655
      
128,317
  
Total revenue
    
581,113
      
530,581
      
1,152,972
      
1,058,010
  
                                 
Cost of revenue:
                                
Cloud
    
134,984
      
113,441
      
266,580
      
226,790
  
Services
    
47,019
      
44,994
      
94,924
      
91,902
  
Product
    
7,710
      
6,489
      
14,805
      
13,234
  
Total cost of revenue
    
189,713
      
164,924
      
376,309
      
331,926
  
                                 
Gross profit
    
391,400
      
365,657
      
776,663
      
726,084
  
                                 
Operating expenses:
                                
Research and development, net
    
78,640
      
73,482
      
156,741
      
150,060
  
Selling and marketing
    
151,964
      
150,410
      
300,443
      
303,028
  
General and administrative
    
55,367
      
57,075
      
120,543
      
115,942
  
Total operating expenses
    
285,971
      
280,967
      
577,727
      
569,030
  
                                 
Operating income
    
105,429
      
84,690
      
198,936
      
157,054
  
                                 
Financial and other expense/(income), net
    
(9,350
)
    
50
      
(18,071
)
    
(436
)
                                 
Income before tax
    
114,779
      
84,640
      
217,007
      
157,490
  
Taxes on income
    
27,424
      
19,068
      
52,711
      
33,977
  
Net income
  
$
87,355
    
$
65,572
    
$
164,296
    
$
123,513
  
                                 
Earnings per share:
                                
Basic
  
$
1.37
    
$
1.03
    
$
2.57
    
$
1.94
  
Diluted
  
$
1.31
    
$
0.99
    
$
2.47
    
$
1.86
  
                                 
Weighted average shares outstanding:
                                
Basic
    
63,723
      
63,806
      
63,831
      
63,775
  
Diluted
    
66,435
      
66,274
      
66,548
      
66,563
  


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

   
Quarter ended
    
Year to date
  
   
June 30,
    
June 30,
  
   
2023
    
2022
    
2023
    
2022
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
Operating Activities
                        
Net income
  
$
87,355
    
$
65,572
    
$
164,296
    
$
123,513
  
Adjustments to reconcile net income to net cash provided by operating activities:
                  
Depreciation and amortization
    
42,033
      
42,202
      
83,879
      
86,483
  
Share-based compensation
    
39,314
      
43,109
      
84,275
      
91,293
  
Amortization of premium and discount and accrued interest on marketable securities
    
(224
)
    
1,254
      
1,046
      
5,072
  
Deferred taxes, net
    
(8,994
)
    
(10,248
)
    
(16,872
)
    
(12,044
)
Changes in operating assets and liabilities:
                                
Trade Receivables, net
    
(8,665
)
    
(49,596
)
    
8,087
      
(70,855
)
Prepaid expenses and other current assets
    
(10,674
)
    
(11,479
)
    
(22,046
)
    
(40,410
)
Operating lease right-of-use assets
    
2,435
      
3,941
      
5,503
      
7,883
  
Trade payables
    
(9,668
)
    
15,354
      
(10,848
)
    
24,432
  
Accrued expenses and other current liabilities
    
(48,832
)
    
(63,560
)
    
(49,526
)
    
(34,331
)
Deferred revenue
    
(18,424
)
    
(15,718
)
    
14,823
      
36,631
  
Operating lease liabilities
    
(3,494
)
    
(6,997
)
    
(7,401
)
    
(11,994
)
Amortization of discount on long-term debt
    
1,129
      
1,151
      
2,283
      
2,288
  
Loss from extinguishment of debt
    
37
      
113
      
37
      
1,205
  
Other
    
1,926
      
933
      
2,789
      
(424
)
  Net cash provided by operating activities
    
65,254
      
16,031
      
260,325
      
208,742
  
                                 
Investing Activities
                                
Purchase of property and equipment
    
(4,513
)
    
(5,301
)
    
(17,619
)
    
(14,885
)
Purchase of Investments
    
(121,817
)
    
(123,536
)
    
(191,359
)
    
(221,802
)
Proceeds from Investments
    
107,653
      
79,924
      
172,552
      
181,590
  
Capitalization of internal use software costs
    
(14,491
)
    
(13,073
)
    
(28,627
)
    
(23,744
)
Other
    
-
      
276
      
-
      
276
  
  Net cash used in investing activities
    
(33,168
)
    
(61,710
)
    
(65,053
)
    
(78,565
)
                                 
Financing Activities
                                
Proceeds from issuance of shares upon exercise of options
    
765
      
198
      
1,724
      
273
  
Purchase of treasury shares
    
(65,196
)
    
(34,070
)
    
(129,911
)
    
(97,912
)
Dividends paid to noncontrolling interest
    
-
      
(376
)
    
(1,480
)
    
(376
)
Repayment of debt
    
(1,534
)
    
(2,017
)
    
(1,534
)
    
(20,110
)
 Net cash used in financing activities
    
(65,965
)
    
(36,265
)
    
(131,201
)
    
(118,125
)
                                 
Effect of exchange rates on cash and cash equivalents
    
546
      
(5,702
)
    
1,713
      
(6,639
)
                                 
Net change in cash, cash equivalents and restricted cash
    
(33,333
)
    
(87,646
)
    
65,784
      
5,413
  
Cash, cash equivalents and restricted cash, beginning of period
  
$
632,212
    
$
471,715
    
$
533,095
    
$
378,656
  
                                 
Cash, cash equivalents and restricted cash, end of period
  
$
598,879
    
$
384,069
    
$
598,879
    
$
384,069
  
                                 
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
          
Cash and cash equivalents
  
$
598,079
    
$
382,219
    
$
598,079
    
$
382,219
  
Restricted cash included in other current assets
  
$
800
    
$
1,850
    
$
800
    
$
1,850
  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
  
$
598,879
    
$
384,069
    
$
598,879
    
$
384,069
  


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,
  
   
2023
    
2022
    
2023
    
2022
  
GAAP revenues
  
$
581,113
    
$
530,581
    
$
1,152,972
    
$
1,058,010
  
Non-GAAP revenues
  
$
581,113
    
$
530,581
    
$
1,152,972
    
$
1,058,010
  
                                 
GAAP cost of revenue
  
$
189,713
    
$
164,924
    
$
376,309
    
$
331,926
  
Amortization of acquired intangible assets on cost of cloud
    
(19,396
)
    
(18,623
)
    
(38,765
)
    
(37,287
)
Amortization of acquired intangible assets on cost of services
    
-
      
-
      
-
      
(377
)
Amortization of acquired intangible assets on cost of product
    
(257
)
    
(258
)
    
(506
)
    
(534
)
Valuation adjustment on acquired deferred cost of cloud
    
-
      
13
      
-
      
28
  
Cost of cloud revenue adjustment (1)
    
(2,253
)
    
(1,741
)
    
(4,200
)
    
(4,070
)
Cost of services revenue adjustment (1)
    
(2,864
)
    
(2,519
)
    
(5,748
)
    
(5,486
)
Cost of product revenue adjustment (1)
    
(140
)
    
(134
)
    
(278
)
    
(266
)
Non-GAAP cost of revenue
  
$
164,803
    
$
141,662
    
$
326,812
    
$
283,934
  
                                 
GAAP gross profit
  
$
391,400
    
$
365,657
    
$
776,663
    
$
726,084
  
Gross profit adjustments
    
24,910
      
23,262
      
49,497
      
47,992
  
Non-GAAP gross profit
  
$
416,310
    
$
388,919
    
$
826,160
    
$
774,076
  
                                 
GAAP operating expenses
  
$
285,971
    
$
280,967
    
$
577,727
    
$
569,030
  
Research and development (1)
    
(7,783
)
    
(7,886
)
    
(16,181
)
    
(16,401
)
Sales and marketing (1)
    
(13,055
)
    
(13,129
)
    
(24,157
)
    
(29,398
)
General and administrative (1)
    
(14,059
)
    
(18,086
)
    
(35,355
)
    
(36,486
)
Amortization of acquired intangible assets
    
(4,428
)
    
(6,963
)
    
(8,943
)
    
(15,774
)
Valuation adjustment on acquired deferred commission
    
36
      
52
      
76
      
105
  
Non-GAAP operating expenses
  
$
246,682
    
$
234,955
    
$
493,167
    
$
471,076
  
                                 
GAAP financial and other income, net
  
$
(9,350
)
  
$
50
    
$
(18,071
)
  
$
(436
)
Amortization of discount and loss of extinguishment on debt
    
(1,166
)
    
(1,264
)
    
(2,320
)
    
(3,493
)
Change in fair value of contingent consideration
    
(578
)
    
-
      
(578
)
    
-
  
Non-GAAP financial and other income, net
    
(11,094
)
    
(1,214
)
    
(20,969
)
    
(3,929
)
                                 
GAAP taxes on income
  
$
27,424
    
$
19,068
    
$
52,711
    
$
33,977
  
Tax adjustments re non-GAAP adjustments
    
11,793
      
12,911
      
24,101
      
29,262
  
Non-GAAP taxes on income
  
$
39,217
    
$
31,979
    
$
76,812
    
$
63,239
  
                                 
GAAP net income
  
$
87,355
    
$
65,572
    
$
164,296
    
$
123,513
  
Valuation adjustment on acquired deferred cost of cloud revenue
    
-
      
(13
)
    
-
      
(28
)
Amortization of acquired intangible assets
    
24,081
      
25,844
      
48,214
      
53,972
  
Valuation adjustment on acquired deferred commission
    
(36
)
    
(52
)
    
(76
)
    
(105
)
Share-based compensation (1)
    
40,154
      
43,495
      
85,919
      
92,109
  
Amortization of discount and loss of extinguishment on debt
    
1,166
      
1,264
      
2,320
      
3,493
  
Change in fair value of contingent consideration
    
578
      
-
      
578
      
-
  
Tax adjustments re non-GAAP adjustments
    
(11,793
)
    
(12,911
)
    
(24,101
)
    
(29,262
)
Non-GAAP net income
  
$
141,505
    
$
123,199
    
$
277,150
    
$
243,692
  
                                 
GAAP diluted earnings per share
  
$
1.31
    
$
0.99
    
$
2.47
    
$
1.86
  
                                 
Non-GAAP diluted earnings per share
  
$
2.13
    
$
1.86
    
$
4.16
    
$
3.66
  
                                 
Shares used in computing GAAP diluted earnings per share
    
66,435
      
66,274
      
66,548
      
66,563
  
                                 
Shares used in computing non-GAAP diluted earnings per share
    
66,435
      
66,274
      
66,548
      
66,563
  


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,
  
   
2023
    
2022
    
2023
    
2022
  
                         
Cost of cloud revenue
  
$
2,253
    
$
1,741
    
$
4,200
    
$
4,070
  
Cost of services revenue
    
2,864
      
2,519
      
5,748
      
5,486
  
Cost of product revenue
    
140
      
134
      
278
      
266
  
Research and development
    
7,783
      
7,886
      
16,181
      
16,401
  
Sales and marketing
    
13,055
      
13,129
      
24,157
      
29,398
  
General and administrative
    
14,059
      
18,086
      
35,355
      
36,486
  
    
$
40,154
    
$
43,495
    
$
85,919
    
$
92,107