NICE Ltd 6-K, filed Nov 14, 2024
NICE Ltd. (NICE)
6-K
2024-11-14
For: 2024-11-14
View Original
Added on
April 11, 2026
About this 6-K
NICE Ltd filed this 6-K on November 14, 2024.
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 November 2024 (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, 333-249186 and 333-270969), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED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 24% Year-Over-Year Cloud Revenue Growth, Exceeding High End of Guidance for Both Total Revenue and EPS, Dated November 14, 2024.
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: November 14, 2024 | |||
EXHIBIT INDEX
Exhibit 99.1
NICE Reports 24% Year-Over-Year Cloud Revenue Growth,
Exceeding High End of Guidance for Both Total Revenue and EPS
| • |
Total revenue growth of 15% year over year
|
| • |
Cloud ARR exceeds $2 billion
|
| • |
Company reiterates full-year total revenue guidance and raises EPS guidance
|
| • |
Record high operating margin driving operating cash flow of $159 million
|
Hoboken, New Jersey, November 14, 2024 - NICE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2024, as compared to the corresponding period of
the previous year.
Third Quarter 2024 Financial Highlights
|
GAAP
|
Non-GAAP
|
|
Total revenue was $690.0 million and increased 15%
|
Total revenue was $690.0 million and increased 15%
|
|
Cloud revenue was $500.1 million and increased 24%
|
Cloud revenue was $500.1 million and increased 24%
|
|
Operating income was $141.4 million and increased 24%
|
Operating income was $220.8 million and increased 20%
|
|
Operating margin was 20.5% compared to 18.9% last year
|
Operating margin was 32.0% compared to 30.6% last year
|
|
Diluted EPS was $1.86 and increased 34%
|
Diluted EPS was $2.88 and increased 27%
|
|
Operating cash flow was $159.0 million and increased 32%
|
“We are pleased to report another stellar quarter in which our financial performance and continued innovation are redefining our competitive edge, propelling us far ahead of the industry and solidifying NICE as the
go-to partner for enterprises across the globe,” said Barak Eilam, CEO of NICE. “Total revenue of $690 million increased 15% compared to the same period last year, and robust profitability, marked by a 140-basis point increase in non-GAAP operating
margin to a record 32%, an impressive 27% leap in non-GAAP EPS to $2.88, and another exceptional quarter of operating cash flow of $159 million, are setting new industry benchmarks.”
Mr. Eilam continued, “We owe these great results to the power of our cutting-edge AI innovation, where we delivered an outstanding quarter and an acceleration in deal signings and bookings for our CXone AI offerings,
including Copilot, Autopilot and Autosummary. Our strength in AI-powered automated customer service and our market leading CXone platform, are reshaping the industry landscape as we continue to displace multiple on-premises and cloud customer
service solution providers.”
GAAP Financial Highlights for the Third Quarter Ended September 30:
Revenues: Third quarter 2024 total revenues increased 15% to $690.0 million compared to $601.3 million for the third quarter of 2023.
Gross Profit: Third quarter 2024 gross profit was $460.3 million compared to $410.4 million for the third quarter of 2023. Third quarter 2024 gross margin was 66.7% compared to
68.2% for the third quarter of 2023.
Operating Income: Third quarter 2024 operating income increased 24% to $141.4 million compared to $113.6 million for the third quarter of 2023. Third quarter 2024 operating
margin was 20.5% compared to 18.9% for the third quarter of 2023.
Net Income: Third quarter 2024 net income increased 31% to $120.9 million compared to $92.4 million for the third quarter of 2023. Third quarter 2024 net income margin was 17.5%
compared to 15.4% for the third quarter of 2023.
Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2024 increased 34% to $1.86 compared to $1.39 in the third quarter of 2023.
Cash Flow and Cash Balance: Third quarter 2024 operating cash flow was $159.0 million. In the third quarter 2024, $86.4 million was used for share repurchases. As of September
30, 2024, total cash and cash equivalents, and short-term investments were $1,526.7 million. Our debt was $458.4 million, resulting in net cash and investments of $1,068.3 million.
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
Revenues: Third quarter 2024 total revenues increased 15% to $690.0 million compared to $601.3 million for the third quarter of 2023.
Gross Profit: Third quarter 2024 gross profit was $490.3 million compared to $434.4 million for the third quarter of 2023. Third quarter 2024 gross margin was 71.1% compared to
72.2% for the third quarter of 2023.
Operating Income: Third quarter 2024 operating income increased 20% to $220.8 million compared to $183.9 million for the third quarter of 2023. Third quarter 2024 operating
margin was 32.0% compared to 30.6% for the third quarter of 2023.
Net Income: Third quarter 2024 net income increased 24% to $186.9 million compared to $150.6 million for the third quarter of 2023. Third quarter 2024 net income margin was 27.1%
compared to 25.0% for the third quarter of 2023.
Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2024 increased 27% to $2.88 compared to $2.27 in the third quarter of 2023.
Full-Year 2024 Guidance:
The Company is reiterating its full-year 2024 non-GAAP total revenues to be in an expected range of $2,715 million to $2,735 million, representing 15% growth at the midpoint compared to full-year 2023.
The Company increased full-year 2024 non-GAAP fully diluted earnings per share which are expected to be in a range of $10.95 to $11.15, representing 26% growth at the midpoint compared to full-year 2023.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, November 14, 2024, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on
the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/investor-relations/upcoming-event.
Explanation of Non-GAAP measures
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 and other expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments.
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
With NICE (Nasdaq: NICE), it’s never been easier for organizations of all sizes around the globe to create extraordinary customer experiences while meeting key business metrics. Featuring the world’s #1 cloud native
customer experience platform, CXone, NICE is a worldwide leader in AI-powered self-service and agent-assisted CX software for the contact center – and beyond. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune
100 companies, partner with NICE to transform - and elevate - every customer interaction. www.nice.com
Investor Relations Contact
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET
Corporate Media Contact
Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET
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, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
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, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and 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 third-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, the effect of unexpected events or geo-political conditions,
such as the impact of conflicts in the Middle East, that may disrupt our business and the global economy and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).
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 press release 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
|
|
September 30,
|
December 31,
|
|||||||
|
2024
|
2023
|
|||||||
|
Unaudited
|
Audited
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
666,734
|
$
|
511,795
|
||||
|
Short-term investments
|
859,955
|
896,044
|
||||||
|
Trade receivables
|
629,850
|
585,154
|
||||||
|
Debt hedge option
|
-
|
121,922
|
||||||
|
Prepaid expenses and other current assets
|
213,560
|
197,967
|
||||||
|
Total current assets
|
2,370,099
|
2,312,882
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Property and equipment, net
|
187,447
|
174,414
|
||||||
|
Deferred tax assets
|
222,268
|
178,971
|
||||||
|
Other intangible assets, net
|
246,037
|
305,501
|
||||||
|
Operating lease right-of-use assets
|
96,743
|
104,565
|
||||||
|
Goodwill
|
1,853,115
|
1,821,969
|
||||||
|
Prepaid expenses and other long-term assets
|
212,904
|
219,332
|
||||||
|
Total long-term assets
|
2,818,514
|
2,804,752
|
||||||
|
TOTAL ASSETS
|
$
|
5,188,613
|
$
|
5,117,634
|
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
$
|
71,349
|
$
|
66,036
|
||||
|
Deferred revenues and advances from customers
|
333,968
|
302,649
|
||||||
|
Current maturities of operating leases
|
13,065
|
13,747
|
||||||
|
Debt
|
458,360
|
209,229
|
||||||
|
Accrued expenses and other liabilities
|
548,048
|
528,660
|
||||||
|
Total current liabilities
|
1,424,790
|
1,120,321
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Deferred revenues and advances from customers
|
55,223
|
52,458
|
||||||
|
Operating leases
|
95,206
|
102,909
|
||||||
|
Deferred tax liabilities
|
9,887
|
8,596
|
||||||
|
Debt
|
-
|
457,081
|
||||||
|
Other long-term liabilities
|
23,261
|
21,769
|
||||||
|
Total long-term liabilities
|
183,577
|
642,813
|
||||||
|
SHAREHOLDERS' EQUITY
|
||||||||
|
Nice Ltd's equity
|
3,567,727
|
3,341,132
|
||||||
|
Non-controlling interests
|
12,519
|
13,368
|
||||||
|
Total shareholders' equity
|
3,580,246
|
3,354,500
|
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
5,188,613
|
$
|
5,117,634
|
||||
|
NICE LTD. AND SUBSIDIARIES
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
U.S. dollars in thousands (except per share amounts)
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Cloud
|
$
|
500,114
|
$
|
403,324
|
$
|
1,450,213
|
$
|
1,152,839
|
||||||||
|
Services
|
149,857
|
160,220
|
446,381
|
479,022
|
||||||||||||
|
Product
|
39,992
|
37,800
|
117,078
|
122,455
|
||||||||||||
|
Total revenue
|
689,963
|
601,344
|
2,013,672
|
1,754,316
|
||||||||||||
|
Cost of revenue:
|
||||||||||||||||
|
Cloud
|
178,923
|
140,564
|
519,603
|
407,144
|
||||||||||||
|
Services
|
44,652
|
45,292
|
137,401
|
140,216
|
||||||||||||
|
Product
|
6,111
|
5,130
|
20,134
|
19,935
|
||||||||||||
|
Total cost of revenue
|
229,686
|
190,986
|
677,138
|
567,295
|
||||||||||||
|
Gross profit
|
460,277
|
410,358
|
1,336,534
|
1,187,021
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
91,500
|
84,848
|
265,854
|
241,589
|
||||||||||||
|
Selling and marketing
|
152,778
|
144,171
|
465,438
|
444,614
|
||||||||||||
|
General and administrative
|
74,620
|
67,713
|
213,600
|
188,256
|
||||||||||||
|
Total operating expenses
|
318,898
|
296,732
|
944,892
|
874,459
|
||||||||||||
|
Operating income
|
141,379
|
113,626
|
391,642
|
312,562
|
||||||||||||
|
Financial and other income, net
|
(12,280
|
)
|
(7,037
|
)
|
(41,934
|
)
|
(25,108
|
)
|
||||||||
|
Income before tax
|
153,659
|
120,663
|
433,576
|
337,670
|
||||||||||||
|
Taxes on income
|
32,738
|
28,310
|
90,497
|
81,021
|
||||||||||||
|
Net income
|
$
|
120,921
|
$
|
92,353
|
$
|
343,079
|
$
|
256,649
|
||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic
|
$
|
1.91
|
$
|
1.46
|
$
|
5.41
|
$
|
4.03
|
||||||||
|
Diluted
|
$
|
1.86
|
$
|
1.39
|
$
|
5.22
|
$
|
3.86
|
||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||
|
Basic
|
63,397
|
63,422
|
63,403
|
63,693
|
||||||||||||
|
Diluted
|
64,838
|
66,223
|
65,741
|
66,438
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Operating Activities
|
||||||||||||||||
|
Net income
|
$
|
120,921
|
$
|
92,353
|
$
|
343,079
|
$
|
256,649
|
||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
52,964
|
42,269
|
156,244
|
126,148
|
||||||||||||
|
Share-based compensation
|
47,252
|
46,213
|
133,882
|
130,488
|
||||||||||||
|
Amortization of premium and discount and accrued interest on marketable securities
|
(3,398
|
)
|
998
|
(6,726
|
)
|
2,044
|
||||||||||
|
Deferred taxes, net
|
(27,542
|
)
|
(13,915
|
)
|
(38,949
|
)
|
(30,787
|
)
|
||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||
|
Trade Receivables, net
|
(41,462
|
)
|
(25,807
|
)
|
(40,032
|
)
|
(17,720
|
)
|
||||||||
|
Prepaid expenses and other current assets
|
17,164
|
(315
|
)
|
27,665
|
(22,361
|
)
|
||||||||||
|
Operating lease right-of-use assets
|
3,273
|
3,182
|
9,926
|
8,685
|
||||||||||||
|
Trade payables
|
(2,293
|
)
|
11,632
|
4,646
|
784
|
|||||||||||
|
Accrued expenses and other current liabilities
|
22,149
|
20,835
|
(21,555
|
)
|
(28,691
|
)
|
||||||||||
|
Deferred revenue
|
(28,094
|
)
|
(54,485
|
)
|
22,187
|
(39,662
|
)
|
|||||||||
|
Operating lease liabilities
|
(2,748
|
)
|
(4,140
|
)
|
(10,524
|
)
|
(11,541
|
)
|
||||||||
|
Amortization of discount on long-term debt
|
430
|
1,166
|
1,404
|
3,449
|
||||||||||||
|
Loss from extinguishment of debt
|
-
|
-
|
-
|
37
|
||||||||||||
|
Other
|
345
|
624
|
1,872
|
3,412
|
||||||||||||
|
Net cash provided by operating activities
|
158,961
|
120,610
|
583,119
|
380,934
|
||||||||||||
|
Investing Activities
|
||||||||||||||||
|
Purchase of property and equipment
|
(10,419
|
)
|
(5,507
|
)
|
(27,395
|
)
|
(23,126
|
)
|
||||||||
|
Purchase of Investments
|
(138,219
|
)
|
(9,284
|
)
|
(575,332
|
)
|
(200,643
|
)
|
||||||||
|
Proceeds from sales of marketable investments
|
60,125
|
134,486
|
628,246
|
307,038
|
||||||||||||
|
Capitalization of internal use software costs
|
(16,812
|
)
|
(12,479
|
)
|
(47,986
|
)
|
(41,106
|
)
|
||||||||
|
Payments for business acquisitions, net of cash acquired
|
(44,507
|
)
|
(18,405
|
)
|
(44,507
|
)
|
(18,405
|
)
|
||||||||
|
Net cash provided by (used in) investing activities
|
(149,832
|
)
|
88,811
|
(66,974
|
)
|
23,758
|
||||||||||
|
Financing Activities
|
||||||||||||||||
|
Proceeds from issuance of shares upon exercise of options
|
28
|
43
|
2,340
|
1,767
|
||||||||||||
|
Purchase of treasury shares
|
(86,437
|
)
|
(89,506
|
)
|
(274,040
|
)
|
(219,417
|
)
|
||||||||
|
Dividends paid to noncontrolling interest
|
-
|
-
|
(2,681
|
)
|
(1,480
|
)
|
||||||||||
|
Repayment of debt
|
-
|
(23
|
)
|
(87,435
|
)
|
(1,557
|
)
|
|||||||||
|
Net cash used in financing activities
|
(86,409
|
)
|
(89,486
|
)
|
(361,816
|
)
|
(220,687
|
)
|
||||||||
|
Effect of exchange rates on cash and cash equivalents
|
4,508
|
(2,824
|
)
|
1,260
|
(1,111
|
)
|
||||||||||
|
Net change in cash, cash equivalents and restricted cash
|
(72,772
|
)
|
117,111
|
155,589
|
182,894
|
|||||||||||
|
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
741,675
|
$
|
598,879
|
$
|
513,314
|
$
|
533,096
|
||||||||
|
Cash, cash equivalents and restricted cash, end of period
|
$
|
668,903
|
$
|
715,990
|
$
|
668,903
|
$
|
715,990
|
||||||||
|
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
|
||||||||||||||||
|
Cash and cash equivalents
|
$
|
666,734
|
$
|
713,090
|
$
|
666,734
|
$
|
713,090
|
||||||||
|
Restricted cash included in other current assets
|
$
|
2,169
|
$
|
2,900
|
$
|
2,169
|
$
|
2,900
|
||||||||
|
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
668,903
|
$
|
715,990
|
$
|
668,903
|
$
|
715,990
|
||||||||
|
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
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
GAAP revenues
|
$
|
689,963
|
$
|
601,344
|
$
|
2,013,672
|
$
|
1,754,316
|
||||||||
|
Non-GAAP revenues
|
$
|
689,963
|
$
|
601,344
|
$
|
2,013,672
|
$
|
1,754,316
|
||||||||
|
GAAP cost of revenue
|
$
|
229,686
|
$
|
190,986
|
$
|
677,138
|
$
|
567,295
|
||||||||
|
Amortization of acquired intangible assets on cost of cloud
|
(24,278
|
)
|
(18,967
|
)
|
(73,778
|
)
|
(57,732
|
)
|
||||||||
|
Amortization of acquired intangible assets on cost of product
|
-
|
(260
|
)
|
(410
|
)
|
(766
|
)
|
|||||||||
|
Cost of cloud revenue adjustment (1,2)
|
(3,175
|
)
|
(2,160
|
)
|
(9,029
|
)
|
(6,360
|
)
|
||||||||
|
Cost of services revenue adjustment (1)
|
(2,511
|
)
|
(3,016
|
)
|
(7,506
|
)
|
(8,764
|
)
|
||||||||
|
Cost of product revenue adjustment (1)
|
(30
|
)
|
384
|
(90
|
)
|
106
|
||||||||||
|
Non-GAAP cost of revenue
|
$
|
199,692
|
$
|
166,967
|
$
|
586,325
|
$
|
493,779
|
||||||||
|
GAAP gross profit
|
$
|
460,277
|
$
|
410,358
|
$
|
1,336,534
|
$
|
1,187,021
|
||||||||
|
Gross profit adjustments
|
29,994
|
24,019
|
90,813
|
73,516
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
490,271
|
$
|
434,377
|
$
|
1,427,347
|
$
|
1,260,537
|
||||||||
|
GAAP operating expenses
|
$
|
318,898
|
$
|
296,732
|
$
|
944,892
|
$
|
874,459
|
||||||||
|
Research and development (1,2)
|
(6,734
|
)
|
(8,224
|
)
|
(22,361
|
)
|
(24,405
|
)
|
||||||||
|
Sales and marketing (1,2)
|
(14,944
|
)
|
(12,376
|
)
|
(42,326
|
)
|
(36,533
|
)
|
||||||||
|
General and administrative (1,2)
|
(22,154
|
)
|
(22,348
|
)
|
(59,414
|
)
|
(57,703
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(5,613
|
)
|
(3,308
|
)
|
(15,824
|
)
|
(12,251
|
)
|
||||||||
|
Valuation adjustment on acquired deferred commission
|
1
|
30
|
24
|
106
|
||||||||||||
|
Non-GAAP operating expenses
|
$
|
269,454
|
$
|
250,506
|
$
|
804,991
|
$
|
743,673
|
||||||||
|
GAAP financial and other income, net
|
$
|
(12,280
|
)
|
$
|
(7,037
|
)
|
$
|
(41,934
|
)
|
$
|
(25,108
|
)
|
||||
|
Amortization of discount and loss of extinguishment on debt
|
(430
|
)
|
(1,166
|
)
|
(1,404
|
)
|
(3,486
|
)
|
||||||||
|
Change in fair value of contingent consideration
|
(36
|
)
|
(239
|
)
|
(115
|
)
|
(817
|
)
|
||||||||
|
Non-GAAP financial and other income, net
|
$
|
(12,746
|
)
|
$
|
(8,442
|
)
|
$
|
(43,453
|
)
|
$
|
(29,411
|
)
|
||||
|
GAAP taxes on income
|
$
|
32,738
|
$
|
28,310
|
$
|
90,497
|
$
|
81,021
|
||||||||
|
Tax adjustments re non-GAAP adjustments
|
13,886
|
13,372
|
42,665
|
37,473
|
||||||||||||
|
Non-GAAP taxes on income
|
$
|
46,624
|
$
|
41,682
|
$
|
133,162
|
$
|
118,494
|
||||||||
|
GAAP net income
|
$
|
120,921
|
$
|
92,353
|
$
|
343,079
|
$
|
256,649
|
||||||||
|
Amortization of acquired intangible assets
|
29,891
|
22,535
|
90,012
|
70,749
|
||||||||||||
|
Valuation adjustment on acquired deferred commission
|
(1
|
)
|
(30
|
)
|
(24
|
)
|
(106
|
)
|
||||||||
|
Share-based compensation (1)
|
48,731
|
47,287
|
137,997
|
133,206
|
||||||||||||
|
Acquisition related and other expenses (2)
|
817
|
453
|
2,729
|
453
|
||||||||||||
|
Amortization of discount and loss of extinguishment on debt
|
430
|
1,166
|
1,404
|
3,486
|
||||||||||||
|
Change in fair value of contingent consideration
|
36
|
239
|
115
|
817
|
||||||||||||
|
Tax adjustments re non-GAAP adjustments
|
(13,886
|
)
|
(13,372
|
)
|
(42,665
|
)
|
(37,473
|
)
|
||||||||
|
Non-GAAP net income
|
$
|
186,939
|
$
|
150,631
|
$
|
532,647
|
$
|
427,781
|
||||||||
|
GAAP diluted earnings per share
|
$
|
1.86
|
$
|
1.39
|
$
|
5.22
|
$
|
3.86
|
||||||||
|
Non-GAAP diluted earnings per share
|
$
|
2.88
|
$
|
2.27
|
$
|
8.10
|
$
|
6.44
|
||||||||
|
Shares used in computing GAAP diluted earnings per share
|
64,838
|
66,223
|
65,741
|
66,438
|
||||||||||||
|
Shares used in computing non-GAAP diluted earnings per share
|
64,838
|
66,223
|
65,741
|
66,438
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
|
|
U.S. dollars in thousands
|
| (1) |
Share-based compensation
|
||||||||||||||||
|
Quarter ended
|
Year to date
|
||||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
||||||||||||||
|
Cost of cloud revenue
|
$
|
3,175
|
$
|
2,160
|
$
|
8,967
|
$
|
6,360
|
|||||||||
|
Cost of services revenue
|
2,511
|
3,016
|
7,506
|
8,764
|
|||||||||||||
|
Cost of product revenue
|
30
|
(384
|
)
|
90
|
(106
|
)
|
|||||||||||
|
Research and development
|
6,734
|
8,224
|
22,031
|
24,405
|
|||||||||||||
|
Sales and marketing
|
14,937
|
12,351
|
41,676
|
36,508
|
|||||||||||||
|
General and administrative
|
21,344
|
21,920
|
57,727
|
57,275
|
|||||||||||||
|
$
|
48,731
|
$
|
47,287
|
$
|
137,997
|
$
|
133,206
|
||||||||||
| (2) |
Acquisition related and other expenses
|
||||||||||||||||
|
Quarter ended
|
Year to date
|
||||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
||||||||||||||
|
Cost of cloud revenue
|
$
|
-
|
$
|
-
|
$
|
62
|
$
|
-
|
|||||||||
|
Research and development
|
-
|
-
|
330
|
-
|
|||||||||||||
|
Sales and marketing
|
7
|
25
|
650
|
25
|
|||||||||||||
|
General and administrative
|
810
|
428
|
1,687
|
428
|
|||||||||||||
|
$
|
817
|
$
|
453
|
$
|
2,729
|
$
|
453
|
||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
|
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
GAAP net income
|
$
|
120,921
|
$
|
92,353
|
$
|
343,079
|
$
|
256,649
|
||||||||
|
Non-GAAP adjustments:
|
||||||||||||||||
|
Depreciation and amortization
|
52,964
|
42,269
|
156,244
|
126,148
|
||||||||||||
|
Share-based compensation
|
47,252
|
46,213
|
133,882
|
130,488
|
||||||||||||
|
Financial and other income, net
|
(12,280
|
)
|
(7,037
|
)
|
(41,934
|
)
|
(25,108
|
)
|
||||||||
|
Acquisition related and other expenses
|
817
|
453
|
2,729
|
453
|
||||||||||||
|
Valuation adjustment on acquired deferred commission
|
(1
|
)
|
(30
|
)
|
(24
|
)
|
(106
|
)
|
||||||||
|
Taxes on income
|
32,738
|
28,310
|
90,497
|
81,021
|
||||||||||||
|
Non-GAAP EBITDA
|
$
|
242,411
|
$
|
202,531
|
$
|
684,473
|
$
|
569,545
|
||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
|
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2024
|
2023
|
2024
|
2023
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Net cash provided by operating activities
|
$
|
158,961
|
$
|
120,610
|
$
|
583,119
|
$
|
380,934
|
||||||||
|
Purchase of property and equipment
|
(10,419
|
)
|
(5,507
|
)
|
(27,395
|
)
|
(23,126
|
)
|
||||||||
|
Capitalization of internal use software costs
|
(16,812
|
)
|
(12,479
|
)
|
(47,986
|
)
|
(41,106
|
)
|
||||||||
|
Free Cash Flow (a)
|
$
|
131,730
|
$
|
102,624
|
$
|
507,738
|
$
|
316,702
|
||||||||
|
(a)
|
Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use
software costs.
|