NICE Ltd 6-K, filed Nov 10, 2022
NICE Ltd. (NICE)
6-K
2022-11-10
For: 2022-11-10
View Original
Added on
April 11, 2026
About this 6-K
NICE Ltd filed this 6-K on November 10, 2022.
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 2022 (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333-228911 and 333-249186), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 Growth of 12% in Total Revenue and 26% in Cloud Revenue for the Third Quarter of 2022, Dated November 10, 2022.
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 10, 2022
|
EXHIBIT INDEX
99.1 Press Release: NICE Reports Growth of 12% in Total Revenue and 26%
in Cloud Revenue for the Third Quarter of 2022, Dated November 10, 2022.
Exhibit 99.1
NICE Reports Growth of 12% in Total Revenue and 26% in Cloud Revenue for
the Third Quarter of 2022
| • |
Double-Digit Growth in Operating Income and EPS Driven by Further Significant Expansion in Cloud Gross Margin
|
| • |
Constant Currency Year-over-Year Total Revenue Growth of 14% and 27% in Cloud Revenue
|
| • |
Company Announces New Share Buyback Program of $250 million
|
Hoboken, New Jersey, November 10, 2022 -
NICE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
|
GAAP
|
Non-GAAP
|
|
Total revenue of $554.7 million, growth of 12.3% year-over-year
|
Total revenue of $554.7 million, growth of 12.2% year-over-year
|
|
Cloud revenue of $330.5 million, growth of 26.2% year-over-year
|
Cloud revenue of $330.5 million, growth of 26.0% year-over-year
|
|
Cloud gross margin of 64.1% compared to 59.6% last year
|
Cloud gross margin of 70.4% compared to 67.1% last year
|
|
Total gross margin of 69.2% compared to 67.4% last year
|
Total gross margin of 73.5% compared to 72.3% last year
|
|
Operating income of $90.3 million compared to $67.6 million last year, growth of 33.6% year-over-year
|
Operating income of $159.3 million compared to $140.0 million last year, growth of 13.8% year-over-year
|
|
Operating margin of 16.3% compared to 13.7% last year
|
Operating margin of 28.7%, compared to 28.3% last year
|
|
Diluted EPS of $1.07 versus $0.75 last year, growth of 42.7%
|
Diluted EPS of $1.92 versus $1.68 last year, growth of 14.3%
|
“We continue to thrive and are pushing full steam ahead as evidenced by another quarter of solid results across the board,” said Barak
Eilam, CEO NICE. “We reported double-digit growth in total revenue driven by another excellent quarter in cloud revenue, which grew 27% at constant currency. We delivered another quarter of strong profitability, and we expect to continue to deliver
profitable growth with operating income and earnings per share growing at double-digits moving forward.”
Mr. Eilam continued, “We are witnessing a dramatic shift in the enterprise software landscape that is creating massive opportunities for
some, and unbridgeable gaps for others. At NICE, we see great opportunities accentuated by the mission critical nature of our solutions used by thousands of customers, and by being the go-to market leader for AI driven automation solutions that are
critical for enterprises to overcome shortages and costs of labor in the current environment. Moreover, we have, by far, the strongest financial profile in our space, including a substantial net cash position. Our long-standing investment in
innovation, which continues to deliver the most complete and highly differentiated platforms in our industry, along with our seasoned and committed leadership team, empowers us to continue to outpace the market.”
GAAP Financial Highlights for the Third Quarter Ended September 30:
Revenues: Third quarter 2022 total
revenues increased 12.3% to $554.7 million compared to $493.8 million for the third quarter of 2021.
Gross Profit: Third quarter 2022
gross profit was $383.9 million compared to $333.0 million for the third quarter of 2021. Third quarter 2022 gross margin was 69.2% compared to 67.4% for the third quarter of 2021.
Operating Income: Third quarter 2022
operating income was $90.3 million compared to $67.6 million for the third quarter of 2021. Third quarter 2022 operating margin was 16.3% compared to 13.7% for the third quarter of 2021.
Net Income: Third quarter 2022 net
income was $71.2 million compared to $50.7 million for the third quarter of 2021. Third quarter 2022 net income margin was 12.8% compared to 10.3% for the third quarter of 2021.
Fully Diluted Earnings Per Share:
Fully diluted earnings per share for the third quarter of 2022 increased 42.7% to $1.07 compared to $0.75 in the third quarter of 2021.
Operating Cash Flow and Cash Balance:
Third quarter 2022 operating cash flow was $94.3 million.
In the third quarter, $22.5 million was used for share repurchases. As of September 30, 2022, total cash and cash equivalents, and
short-term investments were $1,461.2 million. Our debt, net of a hedge instrument, was $541.2 million, resulting in net cash and investments of $920.0 million.
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
Revenues: Third quarter 2022 total
revenues increased 12.2% (13.8% at constant currency) to $554.7 million compared to $494.4 million for the third quarter of 2021.
Gross Profit: Third quarter 2022
Non-GAAP gross profit increased to $408.0 million compared to $357.5 million for the third quarter of 2021. Third quarter 2022 Non-GAAP gross margin was 73.5% compared to 72.3% for the third quarter of 2021.
Operating Income: Third quarter 2022
Non-GAAP operating income increased to $159.3 million compared to $140.0 million for the third quarter of 2021. Third quarter 2022 Non-GAAP operating margin was 28.7% compared to 28.3% for the third quarter of 2021.
Net Income: Third quarter 2022
Non-GAAP net income increased to $127.8 million compared to $112.6 million for the third quarter of 2021. Third quarter 2022 Non-GAAP net income margin totaled 23.0% compared to 22.8% for the third quarter of 2021.
Fully Diluted Earnings Per Share:
Third quarter 2022 Non-GAAP fully diluted earnings per share increased 14.3% (16.7% at constant currency) to $1.92 compared to $1.68 for the third quarter of 2021.
Full Year 2022 Guidance:
The Company is raising its 2022 Non-GAAP full year total revenue and fully diluted earnings per share guidance based on constant currency.
The Company is providing additional disclosure of full year guidance in constant currency resulting from stronger than expected foreign exchange headwinds.
Excluding these headwinds, full year 2022 Non-GAAP total revenue guidance would be $15 million higher and 2022 Non-GAAP fully diluted
earnings per share would be $0.04 higher.
The following table summarizes our guidance for the full-year 2022:
|
Full-Year 2022 Non-GAAP Guidance*
|
|||
|
Range Amount
|
Year/Year Growth at Midpoint
|
Constant Currency
Year/Year Growth at Midpoint
|
|
|
Revenue ($ in millions)
|
$2,168 - $2,188
|
13.1%
|
13.8%
|
|
EPS
|
$7.40 - $7.60
|
15.0%
|
15.6%
|
*The impact of foreign exchange for the fourth quarter is based on September 2022 foreign exchange rates in comparison with average
exchange rates in Q4/2021.
Quarterly Results Conference Call
NICE management will host its earnings conference call today November 10, 2022, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the
results and the company's outlook. To participate in the call, please dial into the following numbers: United States 1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429, Israel 1-809-406-247.
The call will be webcast live on the Company’s website at 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 expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments. FASB issued an
accounting update, ASU2021-08, Business Combinations, in the fourth quarter of 2021. The amendments in ASU 2021-08 require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business
combination. Before this guidance and through December 31, 2020, business combination accounting rules required recognizing a legal performance obligation related to a revenue arrangement of an acquired entity as a liability. The amount assigned to
such liability was based on its fair value at the date of acquisition. Effective January 1, 2021, the Company early adopted the new guidance retroactively to the start of the year. The Company has applied the new guidance retrospectively to all
business combinations for which the acquisition date occurred on or after January 1, 2021, and therefore comparative financials for periods during 2021 have been adjusted accordingly to recognize the full amount of revenue associated with
acquisitions.
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.
Explanation of Constant Currency
NICE presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the
effect of foreign currency rate fluctuations. To present this information, current results for transactions in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative
period rather than the actual exchange rates in effect during the current period.
Future expected results for transactions in currencies other than United States dollars are converted into United States dollars using the
exchange rates in effect in the last month of the reporting period. NICE has provided this financial information to aid investors in better understanding our performance. These constant currency financial measures presented in this release should not
be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower
organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000
organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.
Investors
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET
Media Contact
Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@nice.com
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, future plans and strategies, projections, anticipated events and trends, the economy 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, future plans and strategies, projections, anticipated events and trends, the economy 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 economic, competitive and other uncertainties and contingencies, 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, uncertainty related to COVID-19 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,
|
|||||||
|
2022
|
2021
|
|||||||
|
Unaudited
|
Audited
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
423,032
|
$
|
378,656
|
||||
|
Short-term investments
|
1,038,160
|
1,046,095
|
||||||
|
Trade receivables
|
469,230
|
395,583
|
||||||
|
Debt hedge option
|
118,694
|
292,940
|
||||||
|
Prepaid expenses and other current assets
|
192,105
|
184,604
|
||||||
|
Total current assets
|
2,241,221
|
2,297,878
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Property and equipment, net
|
157,992
|
145,654
|
||||||
|
Deferred tax assets
|
83,457
|
55,246
|
||||||
|
Other intangible assets, net
|
211,200
|
295,378
|
||||||
|
Operating lease right-of-use assets
|
105,317
|
85,055
|
||||||
|
Goodwill
|
1,577,871
|
1,606,756
|
||||||
|
Prepaid expenses and other long-term assets
|
246,110
|
224,445
|
||||||
|
Total long-term assets
|
2,381,947
|
2,412,534
|
||||||
|
TOTAL ASSETS
|
$
|
4,623,168
|
$
|
4,710,412
|
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
$
|
37,373
|
$
|
36,121
|
||||
|
Deferred revenues and advances from customers
|
329,203
|
330,459
|
||||||
|
Current maturities of operating leases
|
14,531
|
19,514
|
||||||
|
Debt
|
204,943
|
395,946
|
||||||
|
Accrued expenses and other liabilities
|
477,033
|
487,547
|
||||||
|
Total current liabilities
|
1,063,083
|
1,269,587
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Deferred revenues and advances from customers
|
55,142
|
66,606
|
||||||
|
Operating leases
|
100,757
|
81,185
|
||||||
|
Deferred tax liabilities
|
4,165
|
7,429
|
||||||
|
Debt
|
454,954
|
429,267
|
||||||
|
Other long-term liabilities
|
17,067
|
18,379
|
||||||
|
Total long-term liabilities
|
632,085
|
602,866
|
||||||
|
SHAREHOLDERS' EQUITY
|
||||||||
|
Nice Ltd's equity
|
2,915,076
|
2,825,085
|
||||||
|
Non-controlling interests
|
12,924
|
12,874
|
||||||
|
Total shareholders' equity
|
2,928,000
|
2,837,959
|
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,623,168
|
$
|
4,710,412
|
||||
|
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,
|
|||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Cloud
|
$
|
330,487
|
$
|
261,823
|
$
|
936,472
|
$
|
733,424
|
||||||||
|
Services
|
165,202
|
164,783
|
488,909
|
493,707
|
||||||||||||
|
Product
|
59,035
|
67,223
|
187,353
|
178,546
|
||||||||||||
|
Total revenue
|
554,724
|
493,829
|
1,612,734
|
1,405,677
|
||||||||||||
|
Cost of revenue:
|
||||||||||||||||
|
Cloud
|
118,706
|
105,790
|
345,497
|
298,544
|
||||||||||||
|
Services
|
45,697
|
47,980
|
137,598
|
143,796
|
||||||||||||
|
Product
|
6,379
|
7,073
|
19,613
|
16,872
|
||||||||||||
|
Total cost of revenue
|
170,782
|
160,843
|
502,708
|
459,212
|
||||||||||||
|
Gross profit
|
383,942
|
332,986
|
1,110,026
|
946,465
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
74,048
|
74,482
|
224,108
|
195,855
|
||||||||||||
|
Selling and marketing
|
158,608
|
131,776
|
461,636
|
386,530
|
||||||||||||
|
General and administrative
|
60,991
|
59,134
|
176,933
|
165,239
|
||||||||||||
|
Total operating expenses
|
293,647
|
265,392
|
862,677
|
747,624
|
||||||||||||
|
Operating income
|
90,295
|
67,594
|
247,349
|
198,841
|
||||||||||||
|
Financial and other expense/(income), net
|
(596
|
)
|
3,138
|
(1,032
|
)
|
15,594
|
||||||||||
|
Income before tax
|
90,891
|
64,456
|
248,381
|
183,247
|
||||||||||||
|
Taxes on income
|
19,645
|
13,803
|
53,622
|
35,186
|
||||||||||||
|
Net income
|
$
|
71,246
|
$
|
50,653
|
$
|
194,759
|
$
|
148,061
|
||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic
|
$
|
1.12
|
$
|
0.80
|
$
|
3.05
|
$
|
2.35
|
||||||||
|
Diluted
|
$
|
1.07
|
$
|
0.75
|
$
|
2.93
|
$
|
2.22
|
||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||
|
Basic
|
63,739
|
63,182
|
63,763
|
63,125
|
||||||||||||
|
Diluted
|
66,446
|
67,101
|
66,524
|
66,779
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
||||||||||||
|
CONSOLIDATED CASH FLOW STATEMENTS
|
||||||||||||
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Operating Activities
|
||||||||||||||||
|
Net income
|
$
|
71,246
|
$
|
50,653
|
$
|
194,759
|
$
|
148,061
|
||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||
|
Depreciation and amortization
|
42,594
|
45,907
|
129,077
|
136,742
|
||||||||||||
|
Stock based compensation
|
42,396
|
40,628
|
133,689
|
103,062
|
||||||||||||
|
Amortization of premium and discount and accrued interest on marketable securities
|
2,090
|
4,015
|
7,162
|
10,012
|
||||||||||||
|
Deferred taxes, net
|
(11,582
|
)
|
(13,137
|
)
|
(23,626
|
)
|
(30,202
|
)
|
||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||
|
Trade Receivables
|
(14,780
|
)
|
(23,161
|
)
|
(85,635
|
)
|
(45,628
|
)
|
||||||||
|
Prepaid expenses and other assets
|
137
|
(11,255
|
)
|
(40,273
|
)
|
(36,218
|
)
|
|||||||||
|
Trade payables
|
(22,789
|
)
|
(14,435
|
)
|
1,643
|
(9,643
|
)
|
|||||||||
|
Accrued expenses and other current liabilities
|
24,048
|
35,030
|
(10,283
|
)
|
22,601
|
|||||||||||
|
Operating lease right-of-use assets
|
3,494
|
3,394
|
16,814
|
12,317
|
||||||||||||
|
Deferred revenue
|
(38,963
|
)
|
(14,218
|
)
|
(2,332
|
)
|
33,046
|
|||||||||
|
Operating lease liabilities
|
(5,057
|
)
|
(4,330
|
)
|
(22,488
|
)
|
(14,805
|
)
|
||||||||
|
Amortization of discount on debt
|
1,143
|
3,911
|
3,431
|
11,523
|
||||||||||||
|
Loss from extinguishment of debt
|
1
|
778
|
1,206
|
8,076
|
||||||||||||
|
Other
|
289
|
(302
|
)
|
(135
|
)
|
214
|
||||||||||
|
Net cash provided by operating activities
|
94,267
|
103,478
|
303,009
|
349,158
|
||||||||||||
|
Investing Activities
|
||||||||||||||||
|
Purchase of property and equipment
|
(6,067
|
)
|
(8,153
|
)
|
(20,952
|
)
|
(21,113
|
)
|
||||||||
|
Purchase of Investments
|
(143,655
|
)
|
(58,148
|
)
|
(365,457
|
)
|
(281,896
|
)
|
||||||||
|
Proceeds from Investments
|
140,814
|
58,860
|
322,404
|
225,964
|
||||||||||||
|
Capitalization of software development costs
|
(13,427
|
)
|
(10,712
|
)
|
(37,171
|
)
|
(31,987
|
)
|
||||||||
|
Other
|
-
|
-
|
276
|
-
|
||||||||||||
|
Payments for business and asset acquisitions, net of cash acquired
|
-
|
(14,302
|
)
|
-
|
(143,164
|
)
|
||||||||||
|
Net cash used in investing activities
|
(22,335
|
)
|
(32,455
|
)
|
(100,900
|
)
|
(252,196
|
)
|
||||||||
|
Financing Activities
|
||||||||||||||||
|
Proceeds from issuance of shares upon exercise of share options
|
151
|
1,109
|
424
|
3,484
|
||||||||||||
|
Purchase of treasury shares
|
(22,489
|
)
|
(4,346
|
)
|
(120,401
|
)
|
(48,908
|
)
|
||||||||
|
Dividends paid to noncontrolling interest
|
-
|
-
|
(376
|
)
|
(801
|
)
|
||||||||||
|
Repayment of debt
|
(18
|
)
|
(10,501
|
)
|
(20,128
|
)
|
(93,315
|
)
|
||||||||
|
Net cash provided by/(used in) financing activities
|
(22,356
|
)
|
(13,738
|
)
|
(140,481
|
)
|
(139,540
|
)
|
||||||||
|
Effect of exchange rates on cash and cash equivalents
|
(5,663
|
)
|
(3,041
|
)
|
(12,302
|
)
|
(1,993
|
)
|
||||||||
|
Net change in cash, cash equivalents and restricted cash
|
43,913
|
54,244
|
49,326
|
(44,571
|
)
|
|||||||||||
|
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
384,069
|
$
|
343,452
|
$
|
378,656
|
$
|
442,267
|
||||||||
|
Cash, cash equivalents and restricted cash, end of period
|
$
|
427,982
|
$
|
397,696
|
$
|
427,982
|
$
|
397,696
|
||||||||
|
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,
|
|||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
|||||||||||||
|
GAAP revenues
|
$
|
554,724
|
$
|
493,829
|
$
|
1,612,734
|
$
|
1,405,677
|
||||||||
|
Valuation adjustment on acquired deferred cloud revenue
|
-
|
570
|
-
|
4,372
|
||||||||||||
|
Valuation adjustment on acquired deferred services revenue
|
-
|
10
|
-
|
175
|
||||||||||||
|
Non-GAAP revenues
|
$
|
554,724
|
$
|
494,409
|
$
|
1,612,734
|
$
|
1,410,224
|
||||||||
|
GAAP cost of revenue
|
$
|
170,782
|
$
|
160,843
|
$
|
502,708
|
$
|
459,212
|
||||||||
|
Amortization of acquired intangible assets on cost of cloud
|
(18,564
|
)
|
(17,493
|
)
|
(55,851
|
)
|
(53,220
|
)
|
||||||||
|
Amortization of acquired intangible assets on cost of services
|
-
|
(1,107
|
)
|
(377
|
)
|
(3,558
|
)
|
|||||||||
|
Amortization of acquired intangible assets on cost of product
|
(242
|
)
|
(283
|
)
|
(776
|
)
|
(853
|
)
|
||||||||
|
Valuation adjustment on acquired deferred cost of cloud
|
13
|
25
|
41
|
76
|
||||||||||||
|
Cost of cloud revenue adjustment (1)
|
(2,319
|
)
|
(2,117
|
)
|
(6,389
|
)
|
(5,287
|
)
|
||||||||
|
Cost of services revenue adjustment (1)
|
(2,778
|
)
|
(2,835
|
)
|
(8,264
|
)
|
(6,916
|
)
|
||||||||
|
Cost of product revenue adjustment (1)
|
(135
|
)
|
(159
|
)
|
(401
|
)
|
(410
|
)
|
||||||||
|
Non-GAAP cost of revenue
|
$
|
146,757
|
$
|
136,874
|
$
|
430,691
|
$
|
389,044
|
||||||||
|
GAAP gross profit
|
$
|
383,942
|
$
|
332,986
|
$
|
1,110,026
|
$
|
946,465
|
||||||||
|
Gross profit adjustments
|
24,025
|
24,549
|
72,017
|
74,715
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
407,967
|
$
|
357,535
|
$
|
1,182,043
|
$
|
1,021,180
|
||||||||
|
GAAP operating expenses
|
$
|
293,647
|
$
|
265,392
|
$
|
862,677
|
$
|
747,624
|
||||||||
|
Research and development (1)
|
(7,424
|
)
|
(7,073
|
)
|
(23,825
|
)
|
(15,241
|
)
|
||||||||
|
Sales and marketing (1)
|
(13,723
|
)
|
(9,707
|
)
|
(43,121
|
)
|
(27,526
|
)
|
||||||||
|
General and administrative (1)
|
(16,505
|
)
|
(19,998
|
)
|
(52,991
|
)
|
(51,373
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(7,379
|
)
|
(11,109
|
)
|
(23,153
|
)
|
(30,769
|
)
|
||||||||
|
Valuation adjustment on acquired deferred commission
|
48
|
53
|
153
|
161
|
||||||||||||
|
Non-GAAP operating expenses
|
$
|
248,664
|
$
|
217,558
|
$
|
719,740
|
$
|
622,876
|
||||||||
|
GAAP financial and other expense (income), net
|
$
|
(596
|
)
|
$
|
3,138
|
$
|
(1,032
|
)
|
$
|
15,594
|
||||||
|
Amortization of discount on debt and loss from extinguishment of debt
|
(1,144
|
)
|
(4,469
|
)
|
(4,637
|
)
|
(19,406
|
)
|
||||||||
|
Non-GAAP financial and other income, net
|
$
|
(1,740
|
)
|
$
|
(1,331
|
)
|
$
|
(5,669
|
)
|
$
|
(3,812
|
)
|
||||
|
GAAP taxes on income
|
$
|
19,645
|
$
|
13,803
|
$
|
53,622
|
$
|
35,186
|
||||||||
|
Tax adjustments re non-GAAP adjustments
|
13,598
|
14,916
|
42,860
|
47,259
|
||||||||||||
|
Non-GAAP taxes on income
|
$
|
33,243
|
$
|
28,719
|
$
|
96,482
|
$
|
82,445
|
||||||||
|
GAAP net income
|
$
|
71,246
|
$
|
50,653
|
$
|
194,759
|
$
|
148,061
|
||||||||
|
Valuation adjustment on acquired deferred revenue
|
-
|
580
|
-
|
4,547
|
||||||||||||
|
Valuation adjustment on acquired deferred cost of cloud revenue
|
(13
|
)
|
(25
|
)
|
(41
|
)
|
(76
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
26,185
|
29,992
|
80,157
|
88,400
|
||||||||||||
|
Valuation adjustment on acquired deferred commission
|
(48
|
)
|
(53
|
)
|
(153
|
)
|
(161
|
)
|
||||||||
|
Share-based compensation (1)
|
42,884
|
40,934
|
134,991
|
103,891
|
||||||||||||
|
Acquisition related expenses (2)
|
-
|
955
|
-
|
2,862
|
||||||||||||
|
Amortization of discount on debt and loss from extinguishment of debt
|
1,144
|
4,469
|
4,637
|
19,406
|
||||||||||||
|
Tax adjustments re non-GAAP adjustments
|
(13,598
|
)
|
(14,916
|
)
|
(42,860
|
)
|
(47,259
|
)
|
||||||||
|
Non-GAAP net income
|
$
|
127,800
|
$
|
112,589
|
$
|
371,490
|
$
|
319,671
|
||||||||
|
GAAP diluted earnings per share
|
$
|
1.07
|
$
|
0.75
|
$
|
2.93
|
$
|
2.22
|
||||||||
|
Non-GAAP diluted earnings per share
|
$
|
1.92
|
$
|
1.68
|
$
|
5.58
|
$
|
4.79
|
||||||||
|
Shares used in computing GAAP diluted earnings per share
|
66,446
|
67,101
|
66,524
|
66,779
|
||||||||||||
|
Shares used in computing non-GAAP diluted earnings per share
|
66,446
|
67,101
|
66,524
|
66,779
|
||||||||||||
|
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,
|
||||||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||
|
Cost of cloud revenue
|
$
|
2,319
|
$
|
2,117
|
$
|
6,389
|
$
|
5,287
|
|||||||||||
|
Cost of services revenue
|
2,778
|
2,835
|
8,264
|
6,916
|
|||||||||||||||
|
Cost of product revenue
|
135
|
159
|
401
|
410
|
|||||||||||||||
|
Research and development
|
7,424
|
7,073
|
23,825
|
15,241
|
|||||||||||||||
|
Sales and marketing
|
13,723
|
9,707
|
43,121
|
27,526
|
|||||||||||||||
|
General and administrative
|
16,505
|
19,043
|
52,991
|
48,511
|
|||||||||||||||
|
$
|
42,884
|
$
|
40,934
|
$
|
134,991
|
$
|
103,891
|
||||||||||||
|
(2
|
)
|
Acquisition related expenses
|
|||||||||||||||||
|
Quarter ended
|
Year to date
|
||||||||||||||||||
|
September 30,
|
September 30,
|
||||||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||
|
Research and development
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Sales and marketing
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
General and administrative
|
-
|
955
|
-
|
2,862
|
|||||||||||||||
|
-
|
955
|
-
|
2,862
|
||||||||||||||||