NICE Ltd 6-K, filed Aug 18, 2022

NICE Ltd. (NICE)

6-K 2022-08-18 For: 2022-08-18

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Added on April 11, 2026

About this 6-K

NICE Ltd filed this 6-K on August 18, 2022.

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	NICE LTD.

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

	Dated: August 18, 2022

GAAP	Non-GAAP
Total revenue of $530.6 million, growth of 16.1% year-over-year	Total revenue of $530.6 million, growth of 15.6% year-over-year
Cloud revenue of $311.4 million, growth of 27.9% year-over-year	Cloud revenue of $311.4 million, growth of 26.8% year-over-year
Cloud gross margin of 63.6% compared to 59.3% last year	Cloud gross margin of 70.1% compared to 67.7% last year
Total gross margin of 68.9% compared to 67.1% last year	Total gross margin of 73.3% compared to 72.2% last year
Operating income of $84.7 million compared to $64.8 million last year, growth of 30.7% year-over-year	Operating income of $154.0 million compared to $129.6 million last year, growth of 18.8% year-over-year
Operating margin of 16.0% compared to 14.2% last year	Operating margin of 29.0%, compared to 28.2% last year
Diluted EPS of $0.99 versus $0.68 last year, growth of 45.6%	Diluted EPS of $1.86 versus $1.57 last year, growth of 18.5%

	June 30,		December 31,
	2022		2021
	Unaudited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	382,219	$	378,656
Short-term investments		1,052,391		1,046,095
Trade receivables		459,743		395,583
Debt hedge option		122,805		292,940
Prepaid expenses and other current assets		206,291		184,604

Total current assets		2,223,449		2,297,878

LONG-TERM ASSETS:
Property and equipment, net		153,894		145,654
Deferred tax assets		73,590		55,246
Other intangible assets, net		238,912		295,378
Operating lease right-of-use assets		108,714		85,055
Goodwill		1,589,729		1,606,756
Prepaid expenses and other long-term assets		234,475		224,445

Total long-term assets		2,399,314		2,412,534

TOTAL ASSETS	$	4,622,763	$	4,710,412

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	60,436	$	36,121
Deferred revenues and advances from customers		371,303		330,459
Current maturities of operating leases		15,866		19,514
Debt		208,355		395,946
Accrued expenses and other liabilities		458,810		487,547

Total current liabilities		1,114,770		1,269,587

LONG-TERM LIABILITIES:
Deferred revenues and advances from customers		55,874		66,606
Operating leases		104,368		81,185
Deferred tax liabilities		5,544		7,429
Debt		454,528		429,267
Other long-term liabilities		17,161		18,379

Total long-term liabilities		637,475		602,866

SHAREHOLDERS' EQUITY
Nice Ltd's equity		2,857,895		2,825,085
Non-controlling interests		12,623		12,874

Total shareholders' equity		2,870,518		2,837,959

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,622,763	$	4,710,412

	Quarter ended				Year to date
	June 30,				June 30,
	2022		2021		2022			2021
	Unaudited		Unaudited		Unaudited			Unaudited

Revenue:
Cloud	$	311,394	$	243,520	$	605,986		$	471,601
Services		166,733		167,133		323,707			328,924
Product		52,454		46,174		128,317			111,323
Total revenue		530,581		456,827		1,058,010			911,848

Cost of revenue:
Cloud		113,441		99,172		226,790			192,754
Services		44,994		46,882		91,902			95,816
Product		6,489		4,453		13,234			9,799
Total cost of revenue		164,924		150,507		331,926			298,369

Gross profit		365,657		306,320		726,084			613,479

Operating expenses:
Research and development, net		73,482		62,218		150,060			121,373
Selling and marketing		150,410		126,195		303,028			254,754
General and administrative		57,075		53,133		115,942			106,105
Total operating expenses		280,967		241,546		569,030			482,232

Operating income		84,690		64,774		157,054			131,247

Financial and other expense/(income), net		50		9,062		(436	)		12,456

Income before tax		84,640		55,712		157,490			118,791
Taxes on income		19,068		10,515		33,977			21,383
Net income	$	65,572	$	45,197	$	123,513		$	97,408

Earnings per share:
Basic	$	1.03	$	0.72	$	1.94		$	1.54
Diluted	$	0.99	$	0.68	$	1.86		$	1.46

Weighted average shares outstanding:
Basic		63,806		63,108		63,775			63,096
Diluted		66,274		66,512		66,563			66,618

	Quarter ended						Year to date
	June 30,						June 30,
	2022			2021			2022			2021
	Unaudited			Unaudited			Unaudited			Unaudited

Operating Activities

Net income	$	65,572		$	45,197		$	123,513		$	97,408
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		42,202			45,911			86,483			90,835
Stock based compensation		43,109			30,979			91,293			62,434
Amortization of premium and discount and accrued interest on marketable securities		1,254			2,066			5,072			5,997
Deferred taxes, net		(10,248	)		(16,207	)		(12,044	)		(17,065	)
Changes in operating assets and liabilities:
Trade Receivables		(49,596	)		(2,783	)		(70,855	)		(22,467	)
Prepaid expenses and other assets		(11,479	)		(14,103	)		(40,410	)		(24,963	)
Trade payables		15,354			(4,912	)		24,432			4,792
Accrued expenses and other current liabilities		(63,560	)		(11,064	)		(34,331	)		(12,429	)
Operating lease right-of-use assets		3,941			4,442			7,883			8,923
Deferred revenue		(15,718	)		(4,638	)		36,631			47,265
Operating lease liabilities		(6,997	)		(4,778	)		(11,994	)		(10,475	)
Amortization of discount on debt		1,151			3,513			2,288			7,612
Loss from extinguishment of debt		113			7,298			1,205			7,298
Other		933			519			(424	)		515
Net cash provided by operating activities		16,031			81,440			208,742			245,680

Investing Activities

Purchase of property and equipment		(5,301	)		(10,631	)		(14,885	)		(12,960	)
Purchase of Investments		(123,536	)		(70,442	)		(221,802	)		(223,748	)
Proceeds from Investments		79,924			112,527			181,590			167,104
Capitalization of software development costs		(13,073	)		(11,159	)		(23,744	)		(21,275	)
Other		276			-			276			444
Payments for business and asset acquisitions, net of cash acquired		-			(129,306	)		-			(129,306	)
Net cash used in investing activities		(61,710	)		(109,011	)		(78,565	)		(219,741	)

Financing Activities

Proceeds from issuance of shares upon exercise of share options		198			2,083			273			2,375
Purchase of treasury shares		(34,070	)		(340	)		(97,912	)		(44,562	)
Dividends paid to noncontrolling interest		(376	)		(801	)		(376	)		(801	)
Repayment of debt		(2,017	)		(82,814	)		(20,110	)		(82,814	)
Net cash provided by/(used in) financing activities		(36,265	)		(81,872	)		(118,125	)		(125,802	)

Effect of exchange rates on cash and cash equivalents		(5,702	)		1,767			(6,639	)		1,048

Net change in cash, cash equivalents and restricted cash		(87,646	)		(107,676	)		5,413			(98,815	)
Cash, cash equivalents and restricted cash, beginning of period	$	471,715		$	451,128		$	378,656		$	442,267

Cash, cash equivalents and restricted cash, end of period	$	384,069		$	343,452		$	384,069		$	343,452

	Quarter ended						Year to date
	June 30,						June 30,
	2022			2021			2022			2021
GAAP revenues	$	530,581		$	456,827		$	1,058,010		$	911,848
Valuation adjustment on acquired deferred cloud revenue		-			1,978			-			3,800
Valuation adjustment on acquired deferred services revenue		-			60			-			166
Non-GAAP revenues	$	530,581		$	458,865		$	1,058,010		$	915,814

GAAP cost of revenue	$	164,924		$	150,507		$	331,926		$	298,369
Amortization of acquired intangible assets on cost of cloud		(18,623	)		(18,211	)		(37,287	)		(35,726	)
Amortization of acquired intangible assets on cost of services		-			(1,226	)		(377	)		(2,451	)
Amortization of acquired intangible assets on cost of product		(258	)		(287	)		(534	)		(570	)
Valuation adjustment on acquired deferred cost of cloud		13			26			28			51
Cost of cloud revenue adjustment (1)		(1,741	)		(1,676	)		(4,070	)		(3,170	)
Cost of services revenue adjustment (1)		(2,519	)		(1,646	)		(5,486	)		(4,081	)
Cost of product revenue adjustment (1)		(134	)		(126	)		(266	)		(251	)
Non-GAAP cost of revenue	$	141,662		$	127,361		$	283,934		$	252,171

GAAP gross profit	$	365,657		$	306,320		$	726,084		$	613,479
Gross profit adjustments		23,262			25,184			47,992			50,164
Non-GAAP gross profit	$	388,919		$	331,504		$	774,076		$	663,643

GAAP operating expenses	$	280,967		$	241,546		$	569,030		$	482,232
Research and development (1)		(7,886	)		(4,111	)		(16,401	)		(8,168	)
Sales and marketing (1)		(13,129	)		(6,911	)		(29,398	)		(17,819	)
General and administrative (1)		(18,086	)		(18,688	)		(36,486	)		(31,375	)
Amortization of acquired intangible assets		(6,963	)		(9,952	)		(15,774	)		(19,660	)
Valuation adjustment on acquired deferred commission		52			55			105			108
Non-GAAP operating expenses	$	234,955		$	201,939		$	471,076		$	405,318

GAAP financial and other expense, net	$	50		$	9,062		$	(436	)	$	12,456
Amortization of discount on debt and loss from extinguishment of debt		(1,264	)		(10,813	)		(3,493	)		(14,937	)
Non-GAAP financial and other income, net	$	(1,214	)	$	(1,751	)	$	(3,929	)	$	(2,481	)

GAAP taxes on income	$	19,068		$	10,515		$	33,977		$	21,383
Tax adjustments re non-GAAP adjustments		12,911			16,529			29,262			32,344
Non-GAAP taxes on income	$	31,979		$	27,044		$	63,239		$	53,727

GAAP net income	$	65,572		$	45,197		$	123,513		$	97,408
Valuation adjustment on acquired deferred revenue		-			2,038			-			3,966

	Quarter ended				Year to date
	June 30,				June 30,
	2022		2021		2022		2021

Cost of cloud revenue	$	1,741	$	1,676	$	4,070	$	3,170
Cost of services revenue		2,519		1,646		5,486		4,081
Cost of product revenue		134		126		266		251
Research and development		7,886		4,111		16,401		8,168
Sales and marketing		13,129		6,911		29,398		17,819
General and administrative		18,086		16,781		36,486		29,468
	$	43,495	$	31,251	$	92,107	$	62,957