NICE Ltd 6-K, filed Aug 17, 2023

NICE Ltd. (NICE)

6-K 2023-08-17 For: 2023-08-17

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Added on April 11, 2026

About this 6-K

NICE Ltd filed this 6-K on August 17, 2023.

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GAAP	Non-GAAP
Total revenue was $581.1 million and increased 10%	Total revenue was $581.1 million and increased 10%
Cloud revenue was $381.9 million and increased 23%	Cloud revenue was $381.9 million and increased 23%
Cloud gross margin was 64.7% compared to 63.6% last year	Cloud gross margin was 70.3% compared to 70.1% last year
Operating income was $105.4 million and increased 24%	Operating income was $169.6 million and increased 10%
Operating margin was 18.1% compared to 16.0% last year	Operating margin was 29.2% compared to 29.0% last year
Diluted EPS was $1.31 and increased 33%	Diluted EPS was $2.13 and increased 15%
Operating cash flow was $65.3 million

	June 30,		December 31,
	2023		2022
	Unaudited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	598,079	$	529,596
Short-term investments		1,064,304		1,041,943
Trade receivables		513,881		518,517
Debt hedge option		133,517		122,323
Prepaid expenses and other current assets		204,080		204,754

Total current assets		2,513,861		2,417,133

LONG-TERM ASSETS:
Property and equipment, net		171,203		159,285
Deferred tax assets		132,264		116,889
Other intangible assets, net		162,044		209,605
Operating lease right-of-use assets		100,022		102,893
Goodwill		1,623,549		1,617,118
Prepaid expenses and other long-term assets		226,395		231,496

Total long-term assets		2,415,477		2,437,286

TOTAL ASSETS	$	4,929,338	$	4,854,419

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	45,269	$	56,019
Deferred revenues and advances from customers		361,764		338,930
Current maturities of operating leases		12,911		13,525
Debt		220,427		209,292
Accrued expenses and other liabilities		446,299		523,451

Total current liabilities		1,086,670		1,141,217

LONG-TERM LIABILITIES:
Deferred revenues and advances from customers		50,946		57,211
Operating leases		95,100		99,262
Deferred tax liabilities		6,709		7,336
Debt		456,223		455,382
Other long-term liabilities		38,888		38,588

Total long-term liabilities		647,866		657,779

SHAREHOLDERS' EQUITY
Nice Ltd's equity		3,182,461		3,042,085
Non-controlling interests		12,341		13,338

Total shareholders' equity		3,194,802		3,055,423

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,929,338	$	4,854,419

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

Revenue:
Cloud	$	381,948		$	311,394	$	749,515		$	605,986
Services		158,945			166,733		318,802			323,707
Product		40,220			52,454		84,655			128,317
Total revenue		581,113			530,581		1,152,972			1,058,010

Cost of revenue:
Cloud		134,984			113,441		266,580			226,790
Services		47,019			44,994		94,924			91,902
Product		7,710			6,489		14,805			13,234
Total cost of revenue		189,713			164,924		376,309			331,926

Gross profit		391,400			365,657		776,663			726,084

Operating expenses:
Research and development, net		78,640			73,482		156,741			150,060
Selling and marketing		151,964			150,410		300,443			303,028
General and administrative		55,367			57,075		120,543			115,942
Total operating expenses		285,971			280,967		577,727			569,030

Operating income		105,429			84,690		198,936			157,054

Financial and other expense/(income), net		(9,350	)		50		(18,071	)		(436	)

Income before tax		114,779			84,640		217,007			157,490
Taxes on income		27,424			19,068		52,711			33,977
Net income	$	87,355		$	65,572	$	164,296		$	123,513

Earnings per share:
Basic	$	1.37		$	1.03	$	2.57		$	1.94
Diluted	$	1.31		$	0.99	$	2.47		$	1.86

Weighted average shares outstanding:
Basic		63,723			63,806		63,831			63,775
Diluted		66,435			66,274		66,548			66,563

	Quarter ended						Year to date
	June 30,						June 30,
	2023			2022			2023			2022
	Unaudited			Unaudited			Unaudited			Unaudited
Operating Activities
Net income	$	87,355		$	65,572		$	164,296		$	123,513
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		42,033			42,202			83,879			86,483
Share-based compensation		39,314			43,109			84,275			91,293
Amortization of premium and discount and accrued interest on marketable securities		(224	)		1,254			1,046			5,072
Deferred taxes, net		(8,994	)		(10,248	)		(16,872	)		(12,044	)
Changes in operating assets and liabilities:
Trade Receivables, net		(8,665	)		(49,596	)		8,087			(70,855	)
Prepaid expenses and other current assets		(10,674	)		(11,479	)		(22,046	)		(40,410	)
Operating lease right-of-use assets		2,435			3,941			5,503			7,883
Trade payables		(9,668	)		15,354			(10,848	)		24,432
Accrued expenses and other current liabilities		(48,832	)		(63,560	)		(49,526	)		(34,331	)
Deferred revenue		(18,424	)		(15,718	)		14,823			36,631
Operating lease liabilities		(3,494	)		(6,997	)		(7,401	)		(11,994	)
Amortization of discount on long-term debt		1,129			1,151			2,283			2,288
Loss from extinguishment of debt		37			113			37			1,205
Other		1,926			933			2,789			(424	)
Net cash provided by operating activities		65,254			16,031			260,325			208,742

Investing Activities
Purchase of property and equipment		(4,513	)		(5,301	)		(17,619	)		(14,885	)
Purchase of Investments		(121,817	)		(123,536	)		(191,359	)		(221,802	)
Proceeds from Investments		107,653			79,924			172,552			181,590
Capitalization of internal use software costs		(14,491	)		(13,073	)		(28,627	)		(23,744	)
Other		-			276			-			276
Net cash used in investing activities		(33,168	)		(61,710	)		(65,053	)		(78,565	)

Financing Activities
Proceeds from issuance of shares upon exercise of options		765			198			1,724			273
Purchase of treasury shares		(65,196	)		(34,070	)		(129,911	)		(97,912	)
Dividends paid to noncontrolling interest		-			(376	)		(1,480	)		(376	)
Repayment of debt		(1,534	)		(2,017	)		(1,534	)		(20,110	)
Net cash used in financing activities		(65,965	)		(36,265	)		(131,201	)		(118,125	)

Effect of exchange rates on cash and cash equivalents		546			(5,702	)		1,713			(6,639	)

Net change in cash, cash equivalents and restricted cash		(33,333	)		(87,646	)		65,784			5,413
Cash, cash equivalents and restricted cash, beginning of period	$	632,212		$	471,715		$	533,095		$	378,656

Cash, cash equivalents and restricted cash, end of period	$	598,879		$	384,069		$	598,879		$	384,069

Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
Cash and cash equivalents	$	598,079		$	382,219		$	598,079		$	382,219
Restricted cash included in other current assets	$	800		$	1,850		$	800		$	1,850
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	598,879		$	384,069		$	598,879		$	384,069

	Quarter ended						Year to date
	June 30,						June 30,
	2023			2022			2023			2022
GAAP revenues	$	581,113		$	530,581		$	1,152,972		$	1,058,010
Non-GAAP revenues	$	581,113		$	530,581		$	1,152,972		$	1,058,010

GAAP cost of revenue	$	189,713		$	164,924		$	376,309		$	331,926
Amortization of acquired intangible assets on cost of cloud		(19,396	)		(18,623	)		(38,765	)		(37,287	)
Amortization of acquired intangible assets on cost of services		-			-			-			(377	)
Amortization of acquired intangible assets on cost of product		(257	)		(258	)		(506	)		(534	)
Valuation adjustment on acquired deferred cost of cloud		-			13			-			28
Cost of cloud revenue adjustment (1)		(2,253	)		(1,741	)		(4,200	)		(4,070	)
Cost of services revenue adjustment (1)		(2,864	)		(2,519	)		(5,748	)		(5,486	)
Cost of product revenue adjustment (1)		(140	)		(134	)		(278	)		(266	)
Non-GAAP cost of revenue	$	164,803		$	141,662		$	326,812		$	283,934

GAAP gross profit	$	391,400		$	365,657		$	776,663		$	726,084
Gross profit adjustments		24,910			23,262			49,497			47,992
Non-GAAP gross profit	$	416,310		$	388,919		$	826,160		$	774,076

GAAP operating expenses	$	285,971		$	280,967		$	577,727		$	569,030
Research and development (1)		(7,783	)		(7,886	)		(16,181	)		(16,401	)
Sales and marketing (1)		(13,055	)		(13,129	)		(24,157	)		(29,398	)
General and administrative (1)		(14,059	)		(18,086	)		(35,355	)		(36,486	)
Amortization of acquired intangible assets		(4,428	)		(6,963	)		(8,943	)		(15,774	)
Valuation adjustment on acquired deferred commission		36			52			76			105
Non-GAAP operating expenses	$	246,682		$	234,955		$	493,167		$	471,076

GAAP financial and other income, net	$	(9,350	)	$	50		$	(18,071	)	$	(436	)
Amortization of discount and loss of extinguishment on debt		(1,166	)		(1,264	)		(2,320	)		(3,493	)
Change in fair value of contingent consideration		(578	)		-			(578	)		-
Non-GAAP financial and other income, net		(11,094	)		(1,214	)		(20,969	)		(3,929	)

GAAP taxes on income	$	27,424		$	19,068		$	52,711		$	33,977
Tax adjustments re non-GAAP adjustments		11,793			12,911			24,101			29,262
Non-GAAP taxes on income	$	39,217		$	31,979		$	76,812		$	63,239

GAAP net income	$	87,355		$	65,572		$	164,296		$	123,513
Valuation adjustment on acquired deferred cost of cloud revenue		-			(13	)		-			(28	)
Amortization of acquired intangible assets		24,081			25,844			48,214			53,972
Valuation adjustment on acquired deferred commission		(36	)		(52	)		(76	)		(105	)
Share-based compensation (1)		40,154			43,495			85,919			92,109
Amortization of discount and loss of extinguishment on debt		1,166			1,264			2,320			3,493
Change in fair value of contingent consideration		578			-			578			-
Tax adjustments re non-GAAP adjustments		(11,793	)		(12,911	)		(24,101	)		(29,262	)
Non-GAAP net income	$	141,505		$	123,199		$	277,150		$	243,692

GAAP diluted earnings per share	$	1.31		$	0.99		$	2.47		$	1.86

Non-GAAP diluted earnings per share	$	2.13		$	1.86		$	4.16		$	3.66

Shares used in computing GAAP diluted earnings per share		66,435			66,274			66,548			66,563

Shares used in computing non-GAAP diluted earnings per share		66,435			66,274			66,548			66,563

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

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

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)