NICE Ltd 6-K, filed Nov 16, 2023

NICE Ltd. (NICE)

6-K 2023-11-16 For: 2023-11-16

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Added on April 11, 2026

About this 6-K

NICE Ltd filed this 6-K on November 16, 2023.

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GAAP	Non-GAAP
Total revenue was $601.3 million and increased 8%	Total revenue was $601.3 million and increased 8%
Cloud revenue was $403.3 million and increased 22%	Cloud revenue was $403.3 million and increased 22%
Cloud gross margin was 65.1% compared to 64.1% last year	Cloud gross margin was 70.4% compared to 70.4% last year
Operating income was $113.6 million and increased 26%	Operating income was $183.9 million and increased 15%
Operating margin was 18.9% compared to 16.3% last year	Operating margin was 30.6% compared to 28.7% last year
Diluted EPS was $1.39 and increased 30%	Diluted EPS was $2.27 and increased 18%
Operating cash flow was $120.6 million and increased 28%


	September 30,		December 31,
	2023		2022
	Unaudited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	713,090	$	529,596
Short-term investments		938,500		1,041,943
Trade receivables		537,951		518,517
Debt hedge option		93,505		122,323
Prepaid expenses and other current assets		205,564		204,754

Total current assets		2,488,610		2,417,133

LONG-TERM ASSETS:
Property and equipment, net		170,619		159,285
Deferred tax assets		145,404		116,889
Other intangible assets, net		150,708		209,605
Operating lease right-of-use assets		97,814		102,893
Goodwill		1,627,186		1,617,118
Prepaid expenses and other long-term assets		215,650		231,496

Total long-term assets		2,407,381		2,437,286

TOTAL ASSETS	$	4,895,991	$	4,854,419

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	56,998	$	56,019
Deferred revenues and advances from customers		304,968		338,930
Current maturities of operating leases		12,569		13,525
Debt		181,131		209,292
Accrued expenses and other liabilities		460,910		523,451

Total current liabilities		1,016,576		1,141,217

LONG-TERM LIABILITIES:
Deferred revenues and advances from customers		51,502		57,211
Operating leases		92,270		99,262
Deferred tax liabilities		8,760		7,336
Debt		456,652		455,382
Other long-term liabilities		38,535		38,588

Total long-term liabilities		647,719		657,779

SHAREHOLDERS' EQUITY
Nice Ltd's equity		3,218,880		3,042,085
Non-controlling interests		12,816		13,338

Total shareholders' equity		3,231,696		3,055,423

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,895,991	$	4,854,419

	Quarter ended						Year to date
	September 30,						September 30,
	2023			2022			2023			2022
	Unaudited			Unaudited			Unaudited			Unaudited

Revenue:
Cloud	$	403,324		$	330,487		$	1,152,839		$	936,472
Services		160,220			165,202			479,022			488,909
Product		37,800			59,035			122,455			187,353
Total revenue		601,344			554,724			1,754,316			1,612,734

Cost of revenue:
Cloud		140,564			118,706			407,144			345,497
Services		45,292			45,697			140,216			137,598
Product		5,130			6,379			19,935			19,613
Total cost of revenue		190,986			170,782			567,295			502,708

Gross profit		410,358			383,942			1,187,021			1,110,026

Operating expenses:
Research and development, net		84,848			74,048			241,589			224,108
Selling and marketing		144,171			158,608			444,614			461,636
General and administrative		67,713			60,991			188,256			176,933
Total operating expenses		296,732			293,647			874,459			862,677

Operating income		113,626			90,295			312,562			247,349

Financial and other income, net		(7,037	)		(596	)		(25,108	)		(1,032	)

Income before tax		120,663			90,891			337,670			248,381
Taxes on income		28,310			19,645			81,021			53,622
Net income	$	92,353		$	71,246		$	256,649		$	194,759

Earnings per share:
Basic	$	1.46		$	1.12		$	4.03		$	3.05
Diluted	$	1.39		$	1.07		$	3.86		$	2.93

Weighted average shares outstanding:
Basic		63,422			63,739			63,693			63,763
Diluted		66,223			66,446			66,438			66,524

	Quarter ended						Year to date
	September 30,						September 30,
	2023			2022			2023			2022
	Unaudited			Unaudited			Unaudited			Unaudited

Operating Activities

Net income	$	92,353		$	71,246		$	256,649		$	194,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		42,269			42,594			126,148			129,077
Share-based compensation		46,213			42,396			130,488			133,689
Amortization of premium and discount and accrued interest on marketable securities		998			2,090			2,044			7,162
Deferred taxes, net		(13,915	)		(11,582	)		(30,787	)		(23,626	)
Changes in operating assets and liabilities:
Trade Receivables, net		(25,807	)		(14,780	)		(17,720	)		(85,635	)
Prepaid expenses and other current assets		(315	)		137			(22,361	)		(40,273	)
Operating lease right-of-use assets		3,182			3,494			8,685			16,814
Trade payables		11,632			(22,789	)		784			1,643
Accrued expenses and other current liabilities		20,835			24,048			(28,691	)		(10,283	)
Deferred revenue		(54,485	)		(38,963	)		(39,662	)		(2,332	)
Operating lease liabilities		(4,140	)		(5,057	)		(11,541	)		(22,488	)
Amortization of discount on long-term debt		1,166			1,143			3,449			3,431
Loss from extinguishment of debt		-			1			37			1,206
Other		624			289			3,412			(135	)
Net cash provided by operating activities		120,610			94,267			380,934			303,009

Investing Activities

Purchase of property and equipment		(5,507	)		(6,067	)		(23,126	)		(20,952	)
Purchase of Investments		(9,284	)		(143,655	)		(200,643	)		(365,457	)
Proceeds from Investments		134,486			140,814			307,038			322,404
Capitalization of internal use software costs		(12,479	)		(13,427	)		(41,106	)		(37,171	)
Payments for business acquisitions, net of cash acquired		(18,405	)		-			(18,405	)		-
Other		-			-			-			276
Net cash provided by (used in) investing activities		88,811			(22,335	)		23,758			(100,900	)

Financing Activities

Proceeds from issuance of shares upon exercise of options		43			151			1,767			424
Purchase of treasury shares		(89,506	)		(22,489	)		(219,417	)		(120,401	)
Dividends paid to noncontrolling interest		-			-			(1,480	)		(376	)
Repayment of debt		(23	)		(18	)		(1,557	)		(20,128	)
Net cash used in financing activities		(89,486	)		(22,356	)		(220,687	)		(140,481	)

Effect of exchange rates on cash and cash equivalents		(2,824	)		(5,663	)		(1,111	)		(12,302	)

Net change in cash, cash equivalents and restricted cash		117,111			43,913			182,894			49,326
Cash, cash equivalents and restricted cash, beginning of period	$	598,879		$	384,069		$	533,096		$	378,656

Cash, cash equivalents and restricted cash, end of period	$	715,990		$	427,982		$	715,990		$	427,982

Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
Cash and cash equivalents	$	713,090		$	423,032		$	713,090		$	423,032
Restricted cash included in other current assets	$	2,900		$	4,950		$	2,900		$	4,950
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	715,990		$	427,982		$	715,990		$	427,982

	Quarter ended						Year to date
	September 30,						September 30,
	2023			2022			2023			2022
GAAP revenues	$	601,344		$	554,724		$	1,754,316		$	1,612,734
Non-GAAP revenues	$	601,344		$	554,724		$	1,754,316		$	1,612,734

GAAP cost of revenue	$	190,986		$	170,782		$	567,295		$	502,708
Amortization of acquired intangible assets on cost of cloud		(18,967	)		(18,564	)		(57,732	)		(55,851	)
Amortization of acquired intangible assets on cost of services		-			-			-			(377	)
Amortization of acquired intangible assets on cost of product		(260	)		(242	)		(766	)		(776	)
Valuation adjustment on acquired deferred cost of cloud		-			13			-			41
Cost of cloud revenue adjustment (1)		(2,160	)		(2,319	)		(6,360	)		(6,389	)
Cost of services revenue adjustment (1)		(3,016	)		(2,778	)		(8,764	)		(8,264	)
Cost of product revenue adjustment (1)		384			(135	)		106			(401	)
Non-GAAP cost of revenue	$	166,967		$	146,757		$	493,779		$	430,691

GAAP gross profit	$	410,358		$	383,942		$	1,187,021		$	1,110,026
Gross profit adjustments		24,019			24,025			73,516			72,017
Non-GAAP gross profit	$	434,377		$	407,967		$	1,260,537		$	1,182,043

GAAP operating expenses	$	296,732		$	293,647		$	874,459		$	862,677
Research and development (1)		(8,224	)		(7,424	)		(24,405	)		(23,825	)
Sales and marketing (1,2)		(12,376	)		(13,723	)		(36,533	)		(43,121	)
General and administrative (1,2)		(22,348	)		(16,505	)		(57,703	)		(52,991	)
Amortization of acquired intangible assets		(3,308	)		(7,379	)		(12,251	)		(23,153	)
Valuation adjustment on acquired deferred commission		30			48			106			153
Non-GAAP operating expenses	$	250,506		$	248,664		$	743,673		$	719,740

GAAP financial and other income, net	$	(7,037	)	$	(596	)	$	(25,108	)	$	(1,032	)
Amortization of discount and loss of extinguishment on debt		(1,166	)		(1,144	)		(3,486	)		(4,637	)
Change in fair value of contingent consideration		(239	)		-			(817	)		-
Non-GAAP financial and other income, net		(8,442	)		(1,740	)		(29,411	)		(5,669	)

GAAP taxes on income	$	28,310		$	19,645		$	81,021		$	53,622
Tax adjustments re non-GAAP adjustments		13,372			13,598			37,473			42,860
Non-GAAP taxes on income	$	41,682		$	33,243		$	118,494		$	96,482

GAAP net income	$	92,353		$	71,246		$	256,649		$	194,759
Valuation adjustment on acquired deferred cost of cloud revenue		-			(13	)		-			(41	)
Amortization of acquired intangible assets		22,535			26,185			70,749			80,157
Valuation adjustment on acquired deferred commission		(30	)		(48	)		(106	)		(153	)
Share-based compensation (1)		47,287			42,884			133,206			134,991
Acquisition related expenses (2)		453			-			453			-
Amortization of discount and loss of extinguishment on debt		1,166			1,144			3,486			4,637
Change in fair value of contingent consideration		239			-			817			-
Tax adjustments re non-GAAP adjustments		(13,372	)		(13,598	)		(37,473	)		(42,860	)
Non-GAAP net income	$	150,631		$	127,800		$	427,781		$	371,490

GAAP diluted earnings per share	$	1.39		$	1.07		$	3.86		$	2.93

Non-GAAP diluted earnings per share	$	2.27		$	1.92		$	6.44		$	5.58

Shares used in computing GAAP diluted earnings per share		66,223			66,446			66,438			66,524

Shares used in computing non-GAAP diluted earnings per share		66,223			66,446			66,438			66,524

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

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)