(Translation of Registrant’s Name into English)
|
(Address of Principal Executive Offices)
|
|
NICE LTD.
By: /s/ Tali Mirsky
Name: Tali Mirsky
Title: Corporate VP, General Counsel and Corporate Secretary
Dated: May 16, 2024
|
● |
Total revenue growth of 15% year over year
|
● |
Double-digit growth in gross profit, operating income and net income
|
● |
Non-GAAP EPS exceeds high end of guidance range
|
● |
Record high operating cash flow of $254 million increased 30% year over year
|
GAAP
|
Non-GAAP
|
Total revenue was $659.3 million and increased 15%
|
Total revenue was $659.3 million and increased 15%
|
Cloud revenue was $468.4 million and increased 27%
|
Cloud revenue was $468.4 million and increased 27%
|
Operating income was $121.4 million and increased 30%
|
Operating income was $199.8 million and increased 22%
|
Operating margin was 18.4% compared to 16.4% last year
|
Operating margin was 30.3% compared to 28.6% last year
|
Diluted EPS was $1.60 and increased 39%
|
Diluted EPS was $2.58 and increased 27%
|
Operating cash flow was $254.5 million and increased 30%
|
NICE LTD. AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
U.S. dollars in thousands
|
March 31,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
793,078
|
$
|
511,795
|
||||
Short-term investments
|
709,766
|
896,044
|
||||||
Trade receivables
|
574,987
|
585,154
|
||||||
Debt hedge option
|
-
|
121,922
|
||||||
Prepaid expenses and other current assets
|
206,238
|
197,967
|
||||||
Total current assets
|
2,284,069
|
2,312,882
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
181,136
|
174,414
|
||||||
Deferred tax assets
|
174,755
|
178,971
|
||||||
Other intangible assets, net
|
274,541
|
305,501
|
||||||
Operating lease right-of-use assets
|
101,577
|
104,565
|
||||||
Goodwill
|
1,820,469
|
1,821,969
|
||||||
Prepaid expenses and other long-term assets
|
210,031
|
219,332
|
||||||
Total long-term assets
|
2,762,509
|
2,804,752
|
||||||
TOTAL ASSETS
|
$
|
5,046,578
|
$
|
5,117,634
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
55,238
|
$
|
66,036
|
||||
Deferred revenues and advances from customers
|
340,366
|
302,649
|
||||||
Current maturities of operating leases
|
13,324
|
13,747
|
||||||
Debt
|
-
|
209,229
|
||||||
Accrued expenses and other liabilities
|
532,451
|
528,660
|
||||||
Total current liabilities
|
941,379
|
1,120,321
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
58,907
|
52,458
|
||||||
Operating leases
|
99,818
|
102,909
|
||||||
Deferred tax liabilities
|
8,489
|
8,596
|
||||||
Debt
|
457,505
|
457,081
|
||||||
Other long-term liabilities
|
22,179
|
21,769
|
||||||
Total long-term liabilities
|
646,898
|
642,813
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
3,447,085
|
3,341,132
|
||||||
Non-controlling interests
|
11,216
|
13,368
|
||||||
Total shareholders' equity
|
3,458,301
|
3,354,500
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
5,046,578
|
$
|
5,117,634
|
NICE LTD. AND SUBSIDIARIES
|
|||
CONSOLIDATED STATEMENTS OF INCOME
|
|||
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Revenue:
|
||||||||
Cloud
|
$
|
468,406
|
$
|
367,567
|
||||
Services
|
148,913
|
159,858
|
||||||
Product
|
41,990
|
44,435
|
||||||
Total revenue
|
659,309
|
571,860
|
||||||
Cost of revenue:
|
||||||||
Cloud
|
169,978
|
131,596
|
||||||
Services
|
46,086
|
47,905
|
||||||
Product
|
6,605
|
7,095
|
||||||
Total cost of revenue
|
222,669
|
186,596
|
||||||
Gross profit
|
436,640
|
385,264
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
87,832
|
78,102
|
||||||
Selling and marketing
|
155,015
|
148,479
|
||||||
General and administrative
|
72,354
|
65,176
|
||||||
Total operating expenses
|
315,201
|
291,757
|
||||||
Operating income
|
121,439
|
93,507
|
||||||
Financial and other income, net
|
(14,009
|
)
|
(8,721
|
)
|
||||
Income before tax
|
135,448
|
102,228
|
||||||
Taxes on income
|
29,075
|
25,286
|
||||||
Net income
|
$
|
106,373
|
$
|
76,942
|
||||
Earnings per share:
|
||||||||
Basic
|
$
|
1.68
|
$
|
1.20
|
||||
Diluted
|
$
|
1.60
|
$
|
1.15
|
||||
Weighted average shares outstanding:
|
||||||||
Basic
|
63,278
|
63,941
|
||||||
Diluted
|
66,528
|
66,662
|
NICE LTD. AND SUBSIDIARIES
|
|||
CONSOLIDATED CASH FLOW STATEMENTS
|
|||
U.S. dollars in thousands
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
106,373
|
$
|
76,942
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
51,760
|
41,846
|
||||||
Share-based compensation
|
44,404
|
44,961
|
||||||
Amortization of premium and discount and accrued interest on marketable securities
|
(1,232
|
)
|
1,270
|
|||||
Deferred taxes, net
|
4,366
|
(7,878
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Trade Receivables, net
|
8,137
|
16,752
|
||||||
Prepaid expenses and other current assets
|
8,761
|
(11,372
|
)
|
|||||
Operating lease right-of-use assets
|
3,281
|
3,068
|
||||||
Trade payables
|
(10,763
|
)
|
(1,180
|
)
|
||||
Accrued expenses and other current liabilities
|
(2,868
|
)
|
(694
|
)
|
||||
Deferred revenue
|
45,539
|
33,247
|
||||||
Operating lease liabilities
|
(3,800
|
)
|
(3,907
|
)
|
||||
Amortization of discount on long-term debt
|
549
|
1,154
|
||||||
Other
|
(17
|
)
|
862
|
|||||
Net cash provided by operating activities
|
254,490
|
195,071
|
||||||
Investing Activities
|
||||||||
Purchase of property and equipment
|
(10,521
|
)
|
(13,106
|
)
|
||||
Purchase of Investments
|
(331,122
|
)
|
(69,542
|
)
|
||||
Proceeds from sales of marketable investments
|
516,150
|
64,899
|
||||||
Capitalization of internal use software costs
|
(15,936
|
)
|
(14,136
|
)
|
||||
Net cash provided by (used in) investing activities
|
158,571
|
(31,885
|
)
|
|||||
Financing Activities
|
||||||||
Proceeds from issuance of shares upon exercise of options
|
1,792
|
959
|
||||||
Purchase of treasury shares
|
(41,515
|
)
|
(64,715
|
)
|
||||
Dividends paid to noncontrolling interest
|
(2,681
|
)
|
(1,480
|
)
|
||||
Repayment of debt
|
(87,435
|
)
|
-
|
|||||
Net cash used in financing activities
|
(129,839
|
)
|
(65,236
|
)
|
||||
Effect of exchange rates on cash and cash equivalents
|
(1,939
|
)
|
1,167
|
|||||
Net change in cash, cash equivalents and restricted cash
|
281,283
|
99,117
|
||||||
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
513,314
|
$
|
533,095
|
||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
794,597
|
$
|
632,212
|
||||
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
|
||||||||
Cash and cash equivalents
|
$
|
793,078
|
$
|
630,661
|
||||
Restricted cash included in other current assets
|
$
|
1,519
|
$
|
1,551
|
||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
794,597
|
$
|
632,212
|
NICE LTD. AND SUBSIDIARIES
|
|||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|||
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
GAAP revenues
|
$
|
659,309
|
$
|
571,860
|
||||
Non-GAAP revenues
|
$
|
659,309
|
$
|
571,860
|
||||
GAAP cost of revenue
|
$
|
222,669
|
$
|
186,596
|
||||
Amortization of acquired intangible assets on cost of cloud
|
(25,367
|
)
|
(19,369
|
)
|
||||
Amortization of acquired intangible assets on cost of product
|
(260
|
)
|
(249
|
)
|
||||
Cost of cloud revenue adjustment (1,2)
|
(3,002
|
)
|
(1,947
|
)
|
||||
Cost of services revenue adjustment (1)
|
(2,378
|
)
|
(2,885
|
)
|
||||
Cost of product revenue adjustment (1)
|
(30
|
)
|
(138
|
)
|
||||
Non-GAAP cost of revenue
|
$
|
191,632
|
$
|
162,008
|
||||
GAAP gross profit
|
$
|
436,640
|
$
|
385,264
|
||||
Gross profit adjustments
|
31,037
|
24,588
|
||||||
Non-GAAP gross profit
|
$
|
467,677
|
$
|
409,852
|
||||
GAAP operating expenses
|
$
|
315,201
|
$
|
291,757
|
||||
Research and development (1,2)
|
(8,143
|
)
|
(8,398
|
)
|
||||
Sales and marketing (1,2)
|
(14,172
|
)
|
(11,102
|
)
|
||||
General and administrative (1,2)
|
(19,831
|
)
|
(21,296
|
)
|
||||
Amortization of acquired intangible assets
|
(5,239
|
)
|
(4,515
|
)
|
||||
Valuation adjustment on acquired deferred commission
|
15
|
40
|
||||||
Non-GAAP operating expenses
|
$
|
267,831
|
$
|
246,486
|
||||
GAAP financial and other income, net
|
$
|
(14,009
|
)
|
$
|
(8,721
|
)
|
||
Amortization of discount and loss of extinguishment on debt
|
(549
|
)
|
(1,154
|
)
|
||||
Change in fair value of contingent consideration
|
(44
|
)
|
-
|
|||||
Non-GAAP financial and other income, net
|
(14,602
|
)
|
(9,875
|
)
|
||||
GAAP taxes on income
|
$
|
29,075
|
$
|
25,286
|
||||
Tax adjustments re non-GAAP adjustments
|
13,816
|
12,308
|
||||||
Non-GAAP taxes on income
|
$
|
42,891
|
$
|
37,594
|
||||
GAAP net income
|
$
|
106,373
|
$
|
76,942
|
||||
Amortization of acquired intangible assets
|
30,866
|
24,133
|
||||||
Valuation adjustment on acquired deferred commission
|
(15
|
)
|
(40
|
)
|
||||
Share-based compensation (1)
|
45,644
|
45,766
|
||||||
Acquisition related and other expenses (2)
|
1,912
|
-
|
||||||
Amortization of discount and loss of extinguishment on debt
|
549
|
1,154
|
||||||
Change in fair value of contingent consideration
|
44
|
-
|
||||||
Tax adjustments re non-GAAP adjustments
|
(13,816
|
)
|
(12,308
|
)
|
||||
Non-GAAP net income
|
$
|
171,557
|
$
|
135,647
|
||||
GAAP diluted earnings per share
|
$
|
1.60
|
$
|
1.15
|
||||
Non-GAAP diluted earnings per share
|
$
|
2.58
|
$
|
2.03
|
||||
Shares used in computing GAAP diluted earnings per share
|
66,528
|
66,662
|
||||||
Shares used in computing non-GAAP diluted earnings per share
|
66,528
|
66,662
|
NICE LTD. AND SUBSIDIARIES
|
|||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
|||
U.S. dollars in thousands
|
(1)
|
|
Share-based compensation
|
||||||||
Quarter ended
|
||||||||||
March 31,
|
||||||||||
2024
|
2023
|
|||||||||
Cost of cloud revenue
|
$
|
2,940
|
$
|
1,947
|
||||||
Cost of services revenue
|
2,378
|
2,885
|
||||||||
Cost of product revenue
|
30
|
138
|
||||||||
Research and development
|
7,813
|
8,398
|
||||||||
Sales and marketing
|
13,529
|
11,102
|
||||||||
General and administrative
|
18,954
|
21,296
|
||||||||
$
|
45,644
|
$
|
45,766
|
(2)
|
|
Acquisition related and other expenses
|
||||||||
Quarter ended
|
||||||||||
March 31,
|
||||||||||
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
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
Unaudited
|
|||||||
GAAP net income
|
$
|
106,373
|
$
|
76,942
|
||||
Non-GAAP adjustments:
|
||||||||
Depreciation and amortization
|
51,760
|
41,846
|
||||||
Share-based compensation
|
44,404
|
44,961
|
||||||
Financial and other expense/ (income), net
|
(14,009
|
)
|
(8,721
|
)
|
||||
Acquisition related and other expenses
|
1,912
|
-
|
||||||
Valuation adjustment on acquired deferred commission
|
(15
|
)
|
(40
|
)
|
||||
Taxes on income
|
29,075
|
25,286
|
||||||
Non-GAAP EBITDA
|
$
|
219,500
|
$
|
180,274
|
NICE LTD. AND SUBSIDIARIES
|
|||
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
|
|||
U.S. dollars in thousands
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Free cash flow (a)
|
||||||||
Net cash provided by operating activities
|
$
|
254,490
|
$
|
195,071
|
||||
Purchase of property and equipment
|
(10,521
|
)
|
(13,106
|
)
|
||||
Capitalization of internal use software costs
|
(15,936
|
)
|
(14,136
|
)
|
||||
Free Cash Flow
|
$
|
228,033
|
$
|
167,829
|