NICE Ltd 6-K, filed Feb 18, 2021
NICE Ltd. (NICE)
6-K
2021-02-18
For: 2021-02-18
View Original
Added on
April 11, 2026
About this 6-K
NICE Ltd filed this 6-K on February 18, 2021.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2021 (Report No. 2)
Commission File Number: 0-27466
NICE LTD.
|
(Translation of Registrant's Name into English)
|
13 Zarchin Street, P.O. Box 690, Ra'anana 4310602, Israel
|
(Address of Principal Executive Offices)
|
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
THE GAAP FINANCIAL STATEMENTS ATTACHED TO THE PRESS RELEASE ATTACHED HERETO AS EXHIBIT 99.1 OF THIS REPORT ON FORM 6-K ARE HEREBY
INCORPORATED BY REFERENCE INTO NICE LTD.`S (“NICE”) REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-166364, 333-168100, 333-171165, 333-162795, 333-162110, 333-06784, 333-08146, 333-11842, 333-09350, 333-11154, 333-111112,
333-111113, 333-134355, 333-144589, 333-145981, 333-153230, 333-177510, 333-179408, 333-181375, 333-191176, 333-199904, 333-210341, 333-210343, 333-210344, 333-214584, 333-226930, 333-228911 and 333-249186), AND TO BE A PART THEREOF FROM THE DATE ON
WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
CONTENTS
This Report on Form 6-K of NICE consists of the following documents, which are attached hereto and incorporated by reference herein:
| 99.1 |
Press Release: NICE Reports Accelerated Cloud Revenue Growth for The Fourth Quarter and Full Year 2020, Dated February 18, 2021.
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.
|
|
NICE LTD.
By: /s/
Tali Mirsky
Name: Tali
Mirsky
Title: Corporate
VP, General Counsel and Corporate Secretary
Dated: February 18, 2021
|
EXHIBIT INDEX
| 99.1 |
Exhibit 99.1
NICE Reports Accelerated Cloud Revenue Growth for The Fourth Quarter and Full Year 2020
2020 Annual Cloud Revenue Growth Exceeds 30%
Company Exits 2020 with Greater than $900 Million Annualized Cloud Revenue Run Rate
Record Cash Flow from Operations of $480 Million for Full Year 2020
Hoboken, New Jersey, February 18, 2021 -
NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Financial Highlights
|
GAAP
|
Non-GAAP
|
|
Cloud revenue of $219 million, growth of 31% year-over-year
|
Cloud revenue of $223 million, growth of 33% year-over-year
|
|
Total revenue of $435 million, growth of 1% year-over-year
|
Total revenue of $438 million, growth of 2% year-over-year
|
|
Cloud gross margin of 58.3% compared to 54.2% last year
|
Cloud gross margin of 67.6% compared to 63.8% last year
|
|
Operating income of $65 million compared to $78 million last year
|
Operating income of $132 million compared to $130 million last year
|
|
Operating margin of 15.0% compared to 18.0% last year
|
Operating margin of 30.1% compared to 30.2% last year
|
|
Diluted EPS of $0.83 compared to $0.95 last year
|
Diluted EPS of $1.61 compared to $1.58 last year
|
|
Operating cash flow of $167 million compared to $91 million last year
|
Full Year 2020 Financial Highlights
|
GAAP
|
Non-GAAP
|
|
Cloud revenue of $777 million, growth of 30% year-over-year
|
Cloud revenue of $786 million, growth of 31% year-over-year
|
|
Total revenue of $1,648 million, growth of 5% year-over-year
|
Total revenue of $1,657 million, growth of 5% year-over-year
|
|
Cloud gross margin of 56.3% compared to 51.3% last year
|
Cloud gross margin of 65.6% compared to 61.8% last year
|
|
Operating income of $242 million compared to $239 million last year
|
Operating income of $470 million compared to $434 million last year
|
|
Operating margin of 14.7% compared to 15.2% last year
|
Operating margin of 28.4% compared to 27.5% last year
|
|
Diluted EPS of $2.98 versus $2.88 last year, 3% growth year-over-year
|
Diluted EPS of $5.73 versus $5.31 last year, 8% growth year-over-year
|
|
Record cash flow from operations of $480 million compared to $374 million last year
|
“We are pleased to report another exceptional year at NICE highlighted by groundbreaking innovation and speed of execution in cloud,
digital and artificial intelligence. We witnessed accelerated cloud growth, cloud exceeded more than 50% of our total revenue for the second half of the year, and we exited 2020 with more than $900 million in an annualized cloud revenue run rate
propelled by the tremendous success of our CXone cloud platform. We saw a 100% year-over-year increase in our customers’ digital interactions volume and 50% of our new deals were driven by digital initiatives. Our market leading AI solution,
Enlighten, experienced strong demand with many new deals and a fast growing pipeline,” said Barak Eilam, CEO of NICE.
Mr. Eilam continued, “2021 is shaping up to be a year of a changed reality, in which the events of 2020 have created a new normal, and at
the same time provided new opportunities in cloud and digital. Enterprises are seeking to rapidly accelerate their innovation cycles and leap forward much faster than before while continuously adapting to changes. We are well-positioned to capitalize
on this transition with our leading digital cloud platforms together with a large and fast growing total addressable market.”
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
Revenues: Fourth quarter 2020 total
revenues increased 1.0% to $434.6 million compared to $430.2 million for the fourth quarter of 2019.
Full year 2020 total revenues increased 4.7% to $1,648.0 million compared to $1,573.9 million for the full year 2019.
Gross Profit: Fourth quarter 2020
gross profit was $288.5 million compared to $292.9 million for the fourth quarter of 2019. Fourth quarter 2020 gross margin was 66.4% compared to 68.1% for the fourth quarter of 2019.
Full year 2020 gross profit increased to $1,086.1 million compared to $1,042.1 million for the full year 2019. Full year 2020 gross margin
was 65.9% compared to 66.2% for the full year 2019.
Operating Income: Fourth quarter
2020 operating income was $65.1 million compared to $77.6 million for the fourth quarter of 2019. Fourth quarter 2020 operating margin was 15.0% compared to 18.0% for the fourth quarter of 2019.
Full year 2020 operating income increased to $242.0 million compared to $238.7 million for the full year 2019. Full year 2020 operating
margin was 14.7% compared to 15.2% for the full year 2019.
Net Income: Fourth quarter 2020 net
income was $55.0 million compared to $61.7 million for the fourth quarter of 2019. Fourth quarter 2020 net income margin was 12.6% compared to 14.4% for the fourth quarter of 2019.
Full year 2020 net income and net income margin increased to $196.3 million and 11.9%, respectively, compared to $185.9 million and 11.8%,
respectively, for the full year 2019.
Fully Diluted Earnings Per Share:
Fully diluted earnings per share for the fourth quarter of 2020 was $0.83 compared to $0.95 in the fourth quarter of 2019.
Fully diluted earnings per share for the full year 2020 increased to $2.98 compared to $2.88 for the full year 2019.
Operating Cash Flow and Cash Balance:
Fourth quarter 2020 operating cash flow was $166.9 million and full year operating cash flow reached $480.3 million. In the fourth quarter, $20.7 million was used for share repurchases and $48.3 million was used for share repurchases for the full
year of 2020. As of December 31, 2020, total cash and cash equivalents, short and long term investments were $1,463.9 million, and total debt was $681.2 million.
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
Revenues: Fourth quarter 2020
Non-GAAP total revenues increased to $438.4 million, up 1.7% from $431.1 million for the fourth quarter of 2019.
Non-GAAP total revenues for the full year 2020 increased 5.0% to $1,657.1 million compared to $1,577.5 million for the full year 2019.
Gross Profit: Fourth quarter 2020
Non-GAAP gross profit increased to $316.7 million compared to $313.8 million for the fourth quarter of 2019. Fourth quarter 2020 Non-GAAP gross margin was 72.2% compared to 72.8% for the fourth quarter of 2019.
Full year 2020 Non-GAAP gross profit increased to $1,181.6 million compared to $1,125.3 million and full year 2020 Non-GAAP gross margin
was 71.3%, the same as Non-GAAP gross margin for full year 2019.
Operating Income: Fourth quarter
2020 Non-GAAP operating income increased to $131.7 million compared to $130.2 million for the fourth quarter of 2019. Fourth quarter 2020 Non-GAAP operating margin was 30.1% compared to 30.2% for the fourth quarter of 2019.
Full year 2020 Non-GAAP operating income and Non-GAAP operating margin increased to $470.4 million and 28.4%, respectively, from $434.3
million and 27.5%, respectively, for the full year 2019.
Net Income: Fourth quarter 2020
Non-GAAP net income and Non-GAAP net income margin increased to $106.9 million and 24.4%, respectively, from $102.6 million and 23.8%, respectively, for the fourth quarter of 2019.
Full year 2020 Non-GAAP net income and Non-GAAP net income margin increased to $378.2 million and 22.8%, respectively, from $343.4 million
and 21.8%, respectively, for the full year 2019.
Fully Diluted Earnings Per Share:
Fourth quarter 2020 Non-GAAP fully diluted earnings per share increased 1.9% to $1.61, compared to $1.58 for the fourth quarter of 2019.
Full year 2020 Non-GAAP fully diluted earnings per share increased 7.9% to $5.73 compared to $5.31 for the full year 2019.
First Quarter and Full Year 2021 Guidance:
First Quarter 2021: First quarter
2021 Non-GAAP total revenues are expected to be in a range of $445 million to $455 million. First quarter 2021 Non-GAAP fully diluted earnings per share are expected to be in a range of $1.42 to $1.52.
Full Year 2021: Full year 2021
Non-GAAP total revenues are expected to be in a range of $1,790 million to $1,810 million. Full year 2021 Non-GAAP fully diluted earnings per share are expected to be in a range of $6.12 to $6.32.
Quarterly Results Conference Call
NICE management will host its earnings conference call today February 18th, 2021 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.
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 the tax effect of the Non-GAAP adjustments. Business combination accounting rules require the recognition
of a legal performance obligation related to a revenue arrangement of an acquired entity as a liability. The amount assigned to such liability should be based on its fair value at the date of acquisition. The Non-GAAP adjustment for a revenue
arrangement is intended to reflect the full amount of such revenue. 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.
Investors
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Yisca Erez, +972 9 775-3798, 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 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 fourth-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 and various other factors and uncertainties
discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). In addition, COVID-19 is contributing to a general slowdown in the global economy. At this time, the extent and duration of the continued impact of the pandemic is
unknown, and therefore we cannot predict how it may affect the Company’s future business, results of operations, financial condition and strategic plans. Furthermore, due to our subscription based business model, the effect of COVID-19 may not be
fully reflected in our results of operations until future periods, if at all. 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 presentation 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
|
|
December 31,
|
December 31,
|
|||||||
|
2020
|
2019
|
|||||||
|
Audited
|
Audited
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
442,267
|
$
|
228,323
|
||||
|
Short-term investments
|
1,021,613
|
210,772
|
||||||
|
Trade receivables
|
303,100
|
319,622
|
||||||
|
Prepaid expenses and other current assets
|
175,340
|
116,972
|
||||||
|
Total current assets
|
1,942,320
|
875,689
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Long-term investments
|
-
|
542,389
|
||||||
|
Property and equipment, net
|
137,785
|
141,647
|
||||||
|
Deferred tax assets
|
32,735
|
30,513
|
||||||
|
Other intangible assets, net
|
366,003
|
411,019
|
||||||
|
Operating lease right-of-use assets
|
97,162
|
106,196
|
||||||
|
Goodwill
|
1,503,252
|
1,378,418
|
||||||
|
Other long-term assets
|
153,660
|
124,034
|
||||||
|
Total long-term assets
|
2,290,597
|
2,734,216
|
||||||
|
TOTAL ASSETS
|
$
|
4,232,917
|
$
|
3,609,905
|
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
$
|
33,132
|
$
|
30,376
|
||||
|
Deferred revenues and advances from customers
|
311,851
|
245,792
|
||||||
|
Current maturities of operating leases
|
22,412
|
21,519
|
||||||
|
Exchangeable senior notes
|
259,881
|
251,583
|
||||||
|
Accrued expenses and other liabilities
|
417,174
|
391,685
|
||||||
|
Total current liabilities
|
1,044,450
|
940,955
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Deferred revenues and advances from customers
|
36,295
|
26,045
|
||||||
|
Operating leases
|
92,262
|
103,490
|
||||||
|
Deferred tax liabilities
|
32,109
|
52,509
|
||||||
|
Long-term debt
|
421,337
|
213,313
|
||||||
|
Other long-term liabilities
|
17,980
|
16,327
|
||||||
|
Total long-term liabilities
|
599,983
|
411,684
|
||||||
|
SHAREHOLDERS' EQUITY
|
||||||||
|
NICE Ltd's equity
|
2,563,910
|
2,257,266
|
||||||
|
Non-controlling interests
|
24,574
|
-
|
||||||
|
Total shareholders' equity
|
2,588,484
|
2,257,266
|
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,232,917
|
$
|
3,609,905
|
||||
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
|
U.S. dollars in thousands (except per share amounts)
|
|
Quarter ended
|
Year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Audited
|
Audited
|
Audited
|
Audited
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Product
|
$
|
41,542
|
$
|
80,101
|
$
|
183,153
|
$
|
269,100
|
||||||||
|
Services
|
174,003
|
183,117
|
687,532
|
709,064
|
||||||||||||
|
Cloud
|
219,036
|
166,990
|
777,331
|
595,748
|
||||||||||||
|
Total revenue
|
434,581
|
430,208
|
1,648,016
|
1,573,912
|
||||||||||||
|
Cost of revenue:
|
||||||||||||||||
|
Product
|
5,453
|
6,076
|
22,164
|
22,926
|
||||||||||||
|
Services
|
49,245
|
54,772
|
199,803
|
218,990
|
||||||||||||
|
Cloud
|
91,357
|
76,434
|
339,985
|
289,852
|
||||||||||||
|
Total cost of revenue
|
146,055
|
137,282
|
561,952
|
531,768
|
||||||||||||
|
Gross profit
|
288,526
|
292,926
|
1,086,064
|
1,042,144
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
56,163
|
52,165
|
218,182
|
193,718
|
||||||||||||
|
Selling and marketing
|
112,104
|
106,221
|
406,436
|
399,304
|
||||||||||||
|
General and administrative
|
45,421
|
46,841
|
180,733
|
168,022
|
||||||||||||
|
Amortization of acquired intangible assets
|
9,715
|
10,107
|
38,666
|
42,383
|
||||||||||||
|
Total operating expenses
|
223,403
|
215,334
|
844,017
|
803,427
|
||||||||||||
|
Operating income
|
65,123
|
77,592
|
242,047
|
238,717
|
||||||||||||
|
Financial and other expense, net
|
2,600
|
554
|
4,859
|
4,444
|
||||||||||||
|
Income before tax
|
62,523
|
77,038
|
237,188
|
234,273
|
||||||||||||
|
Taxes on income
|
7,549
|
15,295
|
40,842
|
48,369
|
||||||||||||
|
Net income
|
$
|
54,974
|
$
|
61,743
|
$
|
196,346
|
$
|
185,904
|
||||||||
|
Less: net income/(loss) attributable to non-controlling interests
|
51
|
-
|
(327
|
)
|
-
|
|||||||||||
|
Net income attributable to NICE Ltd.'s shareholders
|
$
|
54,923
|
$
|
61,743
|
$
|
196,673
|
$
|
185,904
|
||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic
|
$
|
0.87
|
$
|
0.99
|
$
|
3.13
|
$
|
2.99
|
||||||||
|
Diluted
|
$
|
0.83
|
$
|
0.95
|
$
|
2.98
|
$
|
2.88
|
||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||
|
Basic
|
62,967
|
62,357
|
62,710
|
62,120
|
||||||||||||
|
Diluted
|
66,600
|
65,161
|
65,956
|
64,661
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|||||||
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Audited
|
Audited
|
Audited
|
Audited
|
|||||||||||||
|
Operating Activities
|
||||||||||||||||
|
Net income
|
$
|
54,974
|
$
|
61,743
|
$
|
196,346
|
$
|
185,904
|
||||||||
|
Depreciation and amortization
|
46,893
|
44,486
|
182,026
|
173,230
|
||||||||||||
|
Stock based compensation
|
32,828
|
24,275
|
101,667
|
80,864
|
||||||||||||
|
Amortization of premium and discount and accrued interest on marketable securities
|
157
|
134
|
(633
|
)
|
(53
|
)
|
||||||||||
|
Deferred taxes, net
|
(16,588
|
)
|
18,899
|
(33,241
|
)
|
(12,208
|
)
|
|||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||
|
Trade Receivables
|
(5,343
|
)
|
(56,763
|
)
|
22,245
|
(29,863
|
)
|
|||||||||
|
Prepaid expenses and other assets
|
(49,028
|
)
|
11,977
|
(80,665
|
)
|
(76,180
|
)
|
|||||||||
|
Trade payables
|
(1,137
|
)
|
5,850
|
4,094
|
777
|
|||||||||||
|
Accrued expenses and other current liabilities
|
51,459
|
(22,059
|
)
|
14,875
|
31,730
|
|||||||||||
|
Operating lease right-of-use assets, net
|
5,241
|
7,262
|
18,167
|
19,104
|
||||||||||||
|
Deferred revenue
|
48,585
|
499
|
63,202
|
13,810
|
||||||||||||
|
Long term liabilities
|
-
|
(11
|
)
|
-
|
(311
|
)
|
||||||||||
|
Operating lease liabilities
|
(5,272
|
)
|
(6,844
|
)
|
(19,569
|
)
|
(18,839
|
)
|
||||||||
|
Amortization of discount on long term debt
|
5,352
|
2,388
|
13,297
|
9,236
|
||||||||||||
|
Other
|
(1,251
|
)
|
(387
|
)
|
(1,505
|
)
|
(3,043
|
)
|
||||||||
|
Net cash provided by operating activities
|
166,870
|
91,449
|
480,306
|
374,158
|
||||||||||||
|
Investing Activities
|
||||||||||||||||
|
Purchase of property and equipment
|
(2,519
|
)
|
(5,767
|
)
|
(24,186
|
)
|
(27,294
|
)
|
||||||||
|
Purchase of Investments
|
(277,038
|
)
|
(125,165
|
)
|
(583,115
|
)
|
(619,060
|
)
|
||||||||
|
Proceeds from Investments
|
45,444
|
79,084
|
328,593
|
362,713
|
||||||||||||
|
Capitalization of software development costs
|
(10,322
|
)
|
(8,739
|
)
|
(39,098
|
)
|
(34,679
|
)
|
||||||||
|
Payments for business and asset acquisitions, net of cash acquired
|
-
|
-
|
(147,261
|
)
|
(25,972
|
)
|
||||||||||
|
Net cash used in investing activities
|
(244,435
|
)
|
(60,587
|
)
|
(465,067
|
)
|
(344,291
|
)
|
||||||||
|
Financing Activities
|
||||||||||||||||
|
Proceeds from issuance of shares upon exercise of share options
|
688
|
717
|
8,865
|
5,428
|
||||||||||||
|
Purchase of treasury shares
|
(20,671
|
)
|
(24,664
|
)
|
(48,272
|
)
|
(47,276
|
)
|
||||||||
|
Capital Lease payments
|
-
|
(185
|
)
|
(177
|
)
|
(816
|
)
|
|||||||||
|
Repayment of long term debt
|
(215,000
|
)
|
-
|
(215,000
|
)
|
-
|
||||||||||
|
Proceeds/(costs) from issuance of exchangeable notes
|
(48
|
)
|
-
|
451,421
|
-
|
|||||||||||
|
Net cash provided by/(used in) financing activities
|
(235,031
|
)
|
(24,132
|
)
|
196,837
|
(42,664
|
)
|
|||||||||
|
Effect of exchange rates on cash and cash equivalents
|
1,747
|
754
|
1,868
|
(979
|
)
|
|||||||||||
|
Net change in cash and cash equivalents
|
(310,849
|
)
|
7,484
|
213,944
|
(13,776
|
)
|
||||||||||
|
Cash and cash equivalents, beginning of period
|
$
|
753,116
|
$
|
220,839
|
$
|
228,323
|
$
|
242,099
|
||||||||
|
Cash and cash equivalents, end of period
|
$
|
442,267
|
$
|
228,323
|
$
|
442,267
|
$
|
228,323
|
||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|||||||
|
U.S. dollars in thousands (except per share amounts)
|
|
Quarter ended
|
Year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
GAAP revenues
|
$
|
434,581
|
$
|
430,208
|
$
|
1,648,016
|
$
|
1,573,912
|
||||||||
|
Valuation adjustment on acquired deferred product revenue
|
-
|
-
|
-
|
15
|
||||||||||||
|
Valuation adjustment on acquired deferred services revenue
|
149
|
-
|
230
|
5
|
||||||||||||
|
Valuation adjustment on acquired deferred cloud revenue
|
3,679
|
842
|
8,866
|
3,534
|
||||||||||||
|
Non-GAAP revenues
|
$
|
438,409
|
$
|
431,050
|
$
|
1,657,112
|
$
|
1,577,466
|
||||||||
|
GAAP cost of revenue
|
$
|
146,055
|
$
|
137,282
|
$
|
561,952
|
$
|
531,768
|
||||||||
|
Amortization of acquired intangible assets on cost of product
|
(1,073
|
)
|
(1,134
|
)
|
(4,467
|
)
|
(4,106
|
)
|
||||||||
|
Amortization of acquired intangible assets on cost of services
|
(1,225
|
)
|
(1,522
|
)
|
(4,566
|
)
|
(6,126
|
)
|
||||||||
|
Amortization of acquired intangible assets on cost of cloud
|
(18,012
|
)
|
(15,323
|
)
|
(66,434
|
)
|
(60,441
|
)
|
||||||||
|
Valuation adjustment on acquired deferred cost of cloud
|
194
|
532
|
931
|
2,425
|
||||||||||||
|
Cost of product revenue adjustment (1)
|
(131
|
)
|
131
|
(336
|
)
|
(173
|
)
|
|||||||||
|
Cost of services revenue adjustment (1)
|
(2,593
|
)
|
(1,941
|
)
|
(7,550
|
)
|
(8,192
|
)
|
||||||||
|
Cost of cloud revenue adjustment (1)
|
(1,457
|
)
|
(813
|
)
|
(4,058
|
)
|
(2,955
|
)
|
||||||||
|
Non-GAAP cost of revenue
|
$
|
121,758
|
$
|
117,212
|
$
|
475,472
|
$
|
452,200
|
||||||||
|
GAAP gross profit
|
$
|
288,526
|
$
|
292,926
|
$
|
1,086,064
|
$
|
1,042,144
|
||||||||
|
Gross profit adjustments
|
28,125
|
20,912
|
95,576
|
83,122
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
316,651
|
$
|
313,838
|
$
|
1,181,640
|
$
|
1,125,266
|
||||||||
|
GAAP operating expenses
|
$
|
223,403
|
$
|
215,334
|
$
|
844,017
|
$
|
803,427
|
||||||||
|
Research and development (1,2)
|
(4,324
|
)
|
(2,896
|
)
|
(11,877
|
)
|
(8,078
|
)
|
||||||||
|
Sales and marketing (1,2)
|
(10,769
|
)
|
(7,468
|
)
|
(30,392
|
)
|
(26,679
|
)
|
||||||||
|
General and administrative (1,2)
|
(13,775
|
)
|
(11,327
|
)
|
(52,014
|
)
|
(35,705
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(9,719
|
)
|
(10,107
|
)
|
(38,670
|
)
|
(42,383
|
)
|
||||||||
|
Valuation adjustment on acquired deferred commission
|
89
|
62
|
195
|
307
|
||||||||||||
|
Non-GAAP operating expenses
|
$
|
184,905
|
$
|
183,598
|
$
|
711,259
|
$
|
690,889
|
||||||||
|
GAAP financial and other expense, net
|
$
|
2,600
|
$
|
554
|
$
|
4,859
|
$
|
4,444
|
||||||||
|
Amortization of discount on debt
|
(5,353
|
)
|
(2,388
|
)
|
(13,297
|
)
|
(9,235
|
)
|
||||||||
|
Non-GAAP financial and other income, net
|
$
|
(2,753
|
)
|
$
|
(1,834
|
)
|
$
|
(8,438
|
)
|
$
|
(4,791
|
)
|
||||
|
GAAP taxes on income
|
$
|
7,549
|
$
|
15,295
|
$
|
40,842
|
$
|
48,369
|
||||||||
|
Tax adjustments re non-GAAP adjustments
|
20,056
|
14,142
|
59,757
|
47,400
|
||||||||||||
|
Non-GAAP taxes on income
|
$
|
27,605
|
$
|
29,437
|
$
|
100,599
|
$
|
95,769
|
||||||||
|
GAAP net income
|
$
|
54,974
|
$
|
61,743
|
$
|
196,346
|
$
|
185,904
|
||||||||
|
Valuation adjustment on acquired deferred revenue
|
3,828
|
842
|
9,096
|
3,554
|
||||||||||||
|
Valuation adjustment on acquired deferred cost of cloud revenue
|
(194
|
)
|
(532
|
)
|
(931
|
)
|
(2,425
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
30,029
|
28,086
|
114,137
|
113,056
|
||||||||||||
|
Valuation adjustment on acquired deferred commission
|
(89
|
)
|
(62
|
)
|
(195
|
)
|
(307
|
)
|
||||||||
|
Share-based compensation (1)
|
33,049
|
24,314
|
102,304
|
80,939
|
||||||||||||
|
Acquisition related expenses (2)
|
-
|
-
|
3,923
|
843
|
||||||||||||
|
Amortization of discount on long term debt
|
5,353
|
2,388
|
13,297
|
9,235
|
||||||||||||
|
Tax adjustments re non-GAAP adjustments
|
(20,056
|
)
|
(14,142
|
)
|
(59,757
|
)
|
(47,400
|
)
|
||||||||
|
Non-GAAP net income
|
$
|
106,894
|
$
|
102,637
|
$
|
378,220
|
$
|
343,399
|
||||||||
|
GAAP diluted earnings per share
|
$
|
0.83
|
$
|
0.95
|
$
|
2.98
|
$
|
2.88
|
||||||||
|
Non-GAAP diluted earnings per share
|
$
|
1.61
|
$
|
1.58
|
$
|
5.73
|
$
|
5.31
|
||||||||
|
Shares used in computing GAAP diluted earnings per share
|
66,600
|
65,161
|
65,956
|
64,661
|
||||||||||||
|
Shares used in computing non-GAAP diluted earnings per share
|
66,600
|
65,161
|
65,956
|
64,661
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
||||||||
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
||||||||
|
U.S. dollars in thousands
|
||||||||
|
(1) Share-based Compensation
|
||||||||||||||||
|
Quarter ended
|
Year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Cost of product revenue
|
$
|
131
|
$
|
(131
|
)
|
$
|
336
|
$
|
173
|
|||||||
|
Cost of services revenue
|
2,593
|
1,941
|
7,550
|
8,192
|
||||||||||||
|
Cost of cloud revenue
|
1,457
|
813
|
4,058
|
2,955
|
||||||||||||
|
Research and development
|
4,324
|
2,896
|
11,877
|
8,073
|
||||||||||||
|
Sales and marketing
|
10,769
|
7,468
|
30,262
|
26,649
|
||||||||||||
|
General and administrative
|
13,775
|
11,327
|
48,221
|
34,897
|
||||||||||||
|
$
|
33,049
|
$
|
24,314
|
$
|
102,304
|
$
|
80,939
|
|||||||||
| (2) Acquisition related expenses |
Quarter ended
|
Year ended
|
||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Research and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
5
|
||||||||
|
Sales and marketing
|
-
|
-
|
130
|
30
|
||||||||||||
|
General and administrative
|
-
|
-
|
3,793
|
808
|
||||||||||||
|
$
|
-
|
$
|
-
|
$
|
3,923
|
$
|
843
|
|||||||||