NICE Ltd 6-K, filed Feb 23, 2023

NICE Ltd. (NICE)

6-K 2023-02-23 For: 2023-02-23

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Added on April 11, 2026

About this 6-K

NICE Ltd filed this 6-K on February 23, 2023.

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	NICE LTD.

	By:	/s/ Tali Mirsky
	Name:	Tali Mirsky
	Title:	Corporate VP, General Counsel and Corporate Secretary

	Dated:	February 23, 2023

GAAP	Non-GAAP
Total revenue was $568.6 million and increased 10%	Total revenue was $568.6 million and increased 10% ($575.8 million in constant currency, up 12%)
Cloud revenue was $358.9 million and increased 26%	Cloud revenue was $358.9 million and increased 26% ($361.4 million in constant currency, up 27%)
Cloud gross margin was 64.5% compared to 60.7% last year	Cloud gross margin was 70.5% compared to 68.2% last year
Total gross margin was 68.2% compared to 67.9% last year	Total gross margin was 72.6% compared to 73.0% last year
Operating income was $87.8 million and increased 35%	Operating income was $162.8 million and increased 12%
Operating margin was 15.4% compared to 12.6% last year	Operating margin was 28.6%, compared to 28.2% last year
Diluted EPS was $1.07 and increased 41%	Diluted EPS was $2.04 and increased 18%
Operating cash flow increased 57% to $176.7 million

GAAP	Non-GAAP
Total revenue was $2,181.3 million, and increased 14%	Total revenue was $2,181.3 million, and increased 13% ($2,204.1 million in constant currency, up 14%)
Cloud revenue was $1,295.3 million and increased 27%	Cloud revenue was $1,295.3 million and increased 27% ($1,303.0 million in constant currency, up 27%)
Cloud gross margin was 63.5% compared to 59.7% last year	Cloud gross margin was 70.0% compared to 67.7% last year
Total gross margin was 68.7% compared to 67.5% last year	Total gross margin was 73.1% compared to 72.6% last year
Operating income was $335.2 million and increased 27%	Operating income was $625.1 million and increased 15%
Operating margin was 15.4% compared to 13.7% last year	Operating margin was 28.7%, compared to 28.2% last year
Diluted EPS was $4.00 and increased 34%	Diluted EPS was $7.62 versus and increased 17%
Operating cash flow increased 4% to $479.7 million

	December 31,		December 31,
	2022		2021
	Unaudited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	529,596	$	378,656
Short-term investments		1,041,943		1,046,095
Trade receivables		515,730		395,583
Debt hedge option		122,323		292,940
Prepaid expenses and other current assets		206,372		184,604

Total current assets		2,415,964		2,297,878

LONG-TERM ASSETS:
Property and equipment, net		159,284		145,654
Deferred tax assets		119,821		55,246
Other intangible assets, net		209,605		295,378
Operating lease right-of-use assets		102,893		85,055
Goodwill		1,617,118		1,606,756
Prepaid expenses and other long-term assets		231,496		224,445

Total long-term assets		2,440,217		2,412,534

TOTAL ASSETS	$	4,856,181	$	4,710,412

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	56,019	$	36,121
Deferred revenues and advances from customers		338,930		330,459
Current maturities of operating leases		13,525		19,514
Debt		209,292		395,946
Accrued expenses and other liabilities		526,527		487,547

Total current liabilities		1,144,293		1,269,587

LONG-TERM LIABILITIES:
Deferred revenues and advances from customers		57,211		66,606
Operating leases		99,261		81,185
Deferred tax liabilities		6,024		7,429
Debt		455,382		429,267
Other long-term liabilities		38,587		18,379

Total long-term liabilities		656,465		602,866

SHAREHOLDERS' EQUITY
Nice Ltd's equity		3,042,085		2,825,085
Non-controlling interests		13,338		12,874

Total shareholders' equity		3,055,423		2,837,959

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,856,181	$	4,710,412

	Quarter ended					Year to date
	December 31,					December 31,
	2022			2021		2022			2021
	Unaudited			Audited		Unaudited			Audited

Revenue:
Cloud	$	358,850		$	285,201	$	1,295,323		$	1,018,624
Services		161,208			166,376		650,116			660,083
Product		48,502			63,896		235,855			242,443
Total revenue		568,560			515,473		2,181,294			1,921,150

Cost of revenue:
Cloud		127,309			112,127		472,805			410,671
Services		46,339			47,341		183,938			191,137
Product		7,332			5,777		26,945			22,648
Total cost of revenue		180,980			165,245		683,688			624,456

Gross profit		387,580			350,228		1,497,606			1,296,694

Operating expenses:
Research and development, net		81,964			75,332		306,073			271,187
Selling and marketing		148,198			149,662		609,833			536,192
General and administrative		69,594			60,167		246,527			225,406
Total operating expenses		299,756			285,161		1,162,433			1,032,785

Operating income		87,824			65,067		335,173			263,909

Financial and other expense (income), net		(9,127	)		7,696		(10,159	)		23,290

Income before tax		96,951			57,371		345,332			240,619
Taxes on income		25,765			6,210		79,387			41,396
Net income	$	71,186		$	51,161	$	265,945		$	199,223

Earnings per share:
Basic	$	1.11		$	0.81	$	4.17		$	3.15
Diluted	$	1.07		$	0.76	$	4.00		$	2.98

Weighted average shares outstanding:
Basic		63,961			63,382		63,790			63,189
Diluted		66,285			67,245		66,465			66,896

NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

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

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

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
	December 31,						December 31,
	2022			2021			2022			2021
	Unaudited			Audited			Unaudited			Audited

Operating Activities

Net income	$	71,186		$	51,161		$	265,945		$	199,223
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		47,469			47,350			176,546			184,092
Stock based compensation		49,015			49,968			182,704			153,030
Amortization of premium and discount and accrued interest on marketable securities		1,160			1,855			8,322			11,867
Deferred taxes, net		(33,236	)		(9,114	)		(56,862	)		(39,316	)
Changes in operating assets and liabilities:
Trade Receivables		(41,290	)		(40,149	)		(126,925	)		(85,778	)
Prepaid expenses and other assets		6,983			(43,405	)		(33,290	)		(79,624	)
Trade payables		18,280			9,254			19,923			(389	)
Accrued expenses and other liabilities		47,041			41,578			36,758			64,179
Operating lease right-of-use assets		3,579			2,758			20,393			15,075
Deferred revenues		8,749			(2,276	)		6,417			30,770
Operating lease liabilities		(3,703	)		(3,206	)		(26,191	)		(18,011	)
Amortization of discount on debt		1,151			2,946			4,582			14,469
Loss in respect of debt extinguishment		-			5,893			1,206			13,969
Other		322			(1,955	)		187			(1,740	)
Net cash provided by operating activities		176,706			112,658			479,715			461,816

Investing Activities

Purchase of property and equipment		(10,941	)		(3,658	)		(31,893	)		(24,771	)
Purchase of Investments		(30,840	)		(40,233	)		(396,297	)		(322,129	)
Proceeds from Investments		33,156			44,681			355,560			270,645
Capitalization of internal use software costs		(12,826	)		(10,453	)		(49,997	)		(42,440	)
Other		-			-			276			-
Payments for business and asset acquisitions, net of cash acquired		(30,000	)		360			(30,000	)		(142,804	)
Net cash used in investing activities		(51,451	)		(9,303	)		(152,351	)		(261,499	)

Financing Activities

Proceeds from issuance of shares upon exercise of options		529			942			953			4,426
Purchase of treasury shares		(24,543	)		(24,272	)		(144,944	)		(73,180	)

	Quarter ended						Year to date
	December 31,						December 31,
	2022			2021			2022			2021
GAAP revenues	$	568,560		$	515,473		$	2,181,294		$	1,921,150
Valuation adjustment on acquired deferred cloud revenue		-			-			-			4,372
Valuation adjustment on acquired deferred services revenue		-			-			-			175
Non-GAAP revenues	$	568,560		$	515,473		$	2,181,294		$	1,925,697

GAAP cost of revenue	$	180,980		$	165,245		$	683,688		$	624,456
Amortization of acquired intangible assets on cost of cloud		(18,940	)		(18,796	)		(74,791	)		(72,015	)
Amortization of acquired intangible assets on cost of services		-			(669	)		(377	)		(4,228	)
Amortization of acquired intangible assets on cost of product		(241	)		(277	)		(1,017	)		(1,130	)
Valuation adjustment on acquired deferred cost of cloud		13			21			54			97
Cost of cloud revenue adjustment (1)		(2,451	)		(2,661	)		(8,840	)		(7,949	)
Cost of services revenue adjustment (1)		(3,233	)		(3,597	)		(11,497	)		(10,513	)
Cost of product revenue adjustment (1)		(147	)		(185	)		(548	)		(595	)
Non-GAAP cost of revenue	$	155,981		$	139,081		$	586,672		$	528,123

GAAP gross profit	$	387,580		$	350,228		$	1,497,606		$	1,296,694
Gross profit adjustments		24,999			26,164			97,016			100,880
Non-GAAP gross profit	$	412,579		$	376,392		$	1,594,622		$	1,397,574

GAAP operating expenses	$	299,756		$	285,161		$	1,162,433		$	1,032,785
Research and development (1)		(9,736	)		(9,980	)		(33,561	)		(25,221	)
Sales and marketing (1)		(13,993	)		(14,495	)		(57,114	)		(42,021	)
General and administrative (1)		(20,549	)		(19,403	)		(73,540	)		(70,776	)
Amortization of acquired intangible assets		(5,748	)		(10,538	)		(28,901	)		(41,308	)
Valuation adjustment on acquired deferred commission		43			54			196			215
Non-GAAP operating expenses	$	249,773		$	230,799		$	969,513		$	853,674

GAAP financial and other expense (income), net	$	(9,127	)	$	7,696		$	(10,159	)	$	23,290
Amortization of discount on debt and loss from extinguishment of debt		(1,151	)		(8,874	)		(5,788	)		(28,279	)
Non-GAAP financial and other income, net	$	(10,278	)	$	(1,178	)	$	(15,947	)	$	(4,989	)


GAAP taxes on income	$	25,765		$	6,210		$	79,387		$	41,396
Tax adjustments re non-GAAP adjustments		12,037			23,898			54,897			71,157
Non-GAAP taxes on income	$	37,802		$	30,108		$	134,284		$	112,553

GAAP net income	$	71,186		$	51,161		$	265,945		$	199,223

	Quarter ended				Year to date
	December 31,				December 31,
	2022		2021		2022		2021

Cost of cloud revenue	$	2,451	$	2,661	$	8,840	$	7,949
Cost of services revenue		3,233		3,597		11,497		10,513
Cost of product revenue		147		185		548		595
Research and development		9,736		9,980		33,561		25,221
Sales and marketing		13,993		14,495		57,114		42,021
General and administrative		20,501		19,403		73,492		67,914
	$	50,061	$	50,321	$	185,052	$	154,213