NICE Ltd 6-K, filed May 14, 2020

NICE Ltd. (NICE)

6-K 2020-05-14 For: 2020-05-14

View Original

Added on April 11, 2026

About this 6-K

NICE Ltd filed this 6-K on May 14, 2020.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

GAAP	Non-GAAP
Revenue of $410 million, growth of 9% year-over-year	Revenue of $411 million, growth of 9% year-over-year
Cloud revenue of $173 million, growth of 27% year-over-year	Cloud revenue of $173 million, growth of 27% year-over-year
Gross margin of 65.9% compared to 65.2% last year	Gross margin of 70.9% compared to 70.5% last year
Operating income of $59 million compared to $52 million last year, growth of 13%	Operating income of $111 million compared to $97 million last year, growth of 14%
Operating margin of 14.3% compared to 13.8% last year	Operating margin of 26.9% compared to 25.7% last year
Diluted EPS of $0.71 versus $0.58 last year, growth of 22%	Diluted EPS of $1.34 versus $1.18 last year, growth of 14%

	Quarter ended
	March 31,
	2020		2019
	Unaudited		Unaudited

Revenue:
Product	$	64,608	$	70,031
Services		173,192		170,918
Cloud		172,628		136,078
Total revenue		410,428		377,027

Cost of revenue:
Product		6,104		5,881
Services		53,513		55,123
Cloud		80,468		70,046
Total cost of revenue		140,085		131,050

Gross profit		270,343		245,977

Operating expenses:
Research and development, net		52,781		46,566
Selling and marketing		99,816		102,067
General and administrative		49,113		34,714
Amortization of acquired intangible assets		9,805		10,701
Total operating expenses		211,515		194,048

Operating income		58,828		51,929

Finance and other expense, net		1,650		3,418

Income before tax		57,178		48,511
Taxes on income		11,064		11,447
Net income		46,114		37,064

Less: net loss attributable to non-controlling interests		84		-

Net income attributable to Nice Ltd.'s shareholders		46,198		37,064

Earnings per share:
Basic	$	0.74	$	0.60
Diluted	$	0.71	$	0.58

Weighted average shares outstanding:
Basic		62,477		61,842
Diluted		65,335		63,759

	Quarter ended
	March 31,
	2020			2019

GAAP revenues	$	410,428		$	377,027
Valuation adjustment on acquired deferred product revenue		-			15
Valuation adjustment on acquired deferred services revenue		-			2
Valuation adjustment on acquired deferred cloud revenue		779			872
Non-GAAP revenues	$	411,207		$	377,916

GAAP cost of revenue	$	140,085		$	131,050
Amortization of acquired intangible assets on cost of product		(1,134	)		(870	)
Amortization of acquired intangible assets on cost of services		(1,522	)		(1,535	)
Amortization of acquired intangible assets on cost of cloud		(15,558	)		(14,805	)
Valuation adjustment on acquired deferred cost of cloud		293			686
Cost of product revenue adjustment (1)		(68	)		(105	)
Cost of services revenue adjustment (1)		(1,600	)		(2,144	)
Cost of cloud revenue adjustment (1,2)		(844	)		(907	)
Non-GAAP cost of revenue	$	119,652		$	111,370

GAAP gross profit	$	270,343		$	245,977
Gross profit adjustments		21,212			20,569
Non-GAAP gross profit	$	291,555		$	266,546

GAAP operating expenses	$	211,515		$	194,048
Research and development (1)		(2,615	)		(1,562	)
Sales and marketing (1,2)		(5,265	)		(5,676	)
General and administrative (1,2)		(12,834	)		(6,610	)
Amortization of acquired intangible assets		(9,805	)		(10,702	)
Valuation adjustment on acquired deferred commission		35			93
Non-GAAP operating expenses	$	181,031		$	169,591

GAAP finance & other expense (income), net	$	1,650		$	3,418
Amortization of discount on debt		(2,342	)		(2,308	)
Non-GAAP finance & other expense (income), net	$	(692	)	$	1,110

GAAP taxes on income	$	11,064		$	11,447
Tax adjustments re non-GAAP adjustments		12,291			8,882
Non-GAAP taxes on income	$	23,355		$	20,329

GAAP net income	$	46,114		$	37,064
Valuation adjustment on acquired deferred revenue		779			889
Valuation adjustment on acquired deferred cost of cloud revenue		(293	)		(686	)
Amortization of acquired intangible assets		28,019			27,912
Valuation adjustment on acquired deferred commission		(35	)		(93	)
Share-based compensation (1)		21,645			17,004
Acquisition related expenses (2)		1,581			-
Amortization of discount on long term debt		2,342			2,308
Tax adjustments re non-GAAP adjustments		(12,291	)		(8,882	)
Non-GAAP net income	$	87,861		$	75,516

GAAP diluted earnings per share	$	0.71		$	0.58

Non-GAAP diluted earnings per share	$	1.34		$	1.18

Shares used in computing GAAP diluted earnings per share		65,335			63,759

Shares used in computing non-GAAP diluted earnings per share		65,335			63,759

(1) Share-based Compensation

	Quarter ended
	March 31,
	2020		2019

Cost of product revenue	$	68	$	105
Cost of services revenue		1,600		2,144
Cost of cloud revenue		844		907
Research and development		2,615		1,562
Sales and marketing		5,177		5,676
General and administrative		11,341		6,610
	$	21,645	$	17,004

(2) Acquisition related expenses

	Quarter ended
	March 31,
	2020		2019

Sales and marketing	$	88	$	-
General and administrative		1,493		-
	$	1,581	$	-

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

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands

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

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

	March 31,		December 31,
	2020		2019
	Unaudited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	289,112	$	228,323
Short-term investments		192,525		210,772
Trade receivables		315,786		319,622
Prepaid expenses and other current assets		130,163		116,972

Total current assets		927,586		875,689

LONG-TERM ASSETS:
Long-term investments		553,732		542,389
Property and equipment, net		141,775		141,647
Deferred tax assets		30,626		30,513
Other intangible assets, net		405,710		411,019
Operating lease right-of-use assets		103,649		106,196
Goodwill		1,428,056		1,378,418
Other long-term assets		124,762		124,034

Total long-term assets		2,788,310		2,734,216

TOTAL ASSETS	$	3,715,896	$	3,609,905

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	40,979	$	30,376
Deferred revenues and advances from customers		274,793		245,792
Current maturities of operating leases		21,200		21,519
Exchangeable senior notes		253,616		251,583
Accrued expenses and other liabilities		407,391		391,685

Total current liabilities		997,979		940,955

LONG-TERM LIABILITIES:
Deferred revenues and advances from customers		31,199		26,045
Operating leases		99,780		103,490
Deferred tax liabilities		46,494		52,509
Loan		213,542		213,313
Other long-term liabilities		16,197		16,327

Total long-term liabilities		407,212		411,684

SHAREHOLDERS' EQUITY
Nice Ltd's equity		2,285,804		2,257,266
Non-controlling interests		24,901		-

Total shareholders' equity		2,310,705		2,257,266

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	3,715,896	$	3,609,905

	Quarter ended
	March 31,
	2020			2019
	Unaudited			Unaudited

Operating Activities

Net income	$	46,114			37,064
Depreciation and amortization		44,050			41,808
Stock based compensation		21,568			17,004
Amortization of premium and discount and accrued interest on marketable securities		748			(341	)
Deferred taxes, net		(9,192	)		(7,858	)
Changes in operating assets and liabilities:
Trade Receivables		659			30,723
Prepaid expenses and other assets		(14,091	)		(20,582	)
Trade payables		12,478			(825	)
Accrued expenses and other current liabilities		11,897			32,438
Operating lease right-of-use assets, net		4,149			4,117
Deferred revenue		38,513			53,407
Long term liabilities		-			123
Operating lease liabilities		(5,557	)		(5,505	)
Amortization of discount on long term debt		2,343			2,307
Other		1,143			(1,468	)
Net cash provided by operating activities		154,822			182,412

Investing Activities

Purchase of property and equipment		(9,633	)		(8,416	)
Purchase of Investments		(85,427	)		(191,308	)
Proceeds from Investments		85,885			76,950
Capitalization of software development costs		(9,287	)		(8,494	)
Payments for business acquisitions, net of cash acquired		(50,836	)		-
Net cash used in investing activities		(69,298	)		(131,268	)

Financing Activities

Proceeds from issuance of shares upon exercise of share options		1,484			1,617
Purchase of treasury shares		(24,070	)		(10,100	)
Capital Lease payments		(162	)		(253	)
Net cash used in financing activities		(22,748	)		(8,736	)