• |
17% growth in operating cash flow for full year 2023 totaling a record $561 million
|
• |
300% growth in number of AI deals for full year 2023
|
• |
Company expects to cross $2.7 billion in total revenue, exceed $2 billion in cloud revenue and significantly increase EPS for full year 2024
|
GAAP
|
Non-GAAP
|
Total revenue was $623.2 million and increased 10%
|
Total revenue was $623.2 million and increased 10%
|
Cloud revenue was $429.0 million and increased 20%
|
Cloud revenue was $429.0 million and increased 20%
|
Cloud gross margin was 65.8% compared to 64.5% last year
|
Cloud gross margin was 71.1% compared to 70.5% last year
|
Operating income was $122.7 million and increased 40%
|
Operating income was $186.9 million and increased 15%
|
Operating margin was 19.7% compared to 15.4% last year
|
Operating margin was 30.0% compared to 28.6% last year
|
Diluted EPS was $1.24 and increased 16%
|
Diluted EPS was $2.36 and increased 16%
|
Operating cash flow was $180.5 million and increased 2%
|
GAAP
|
Non-GAAP
|
Total revenue was $2,377.5 million and increased 9%
|
Total revenue was $2,377.5 million and increased 9%
|
Cloud revenue was $1,581.8 million and increased 22%
|
Cloud revenue was $1,581.8 million and increased 22%
|
Cloud gross margin was 65.0% compared to 63.5% last year
|
Cloud gross margin was 70.5% compared to 70.0% last year
|
Operating income was $435.2 million and increased 30%
|
Operating income was $703.8 million and increased 13%
|
Operating margin was 18.3% compared to 15.4% last year
|
Operating margin was 29.6% compared to 28.7% last year
|
Diluted EPS was $5.11 and increased 28%
|
Diluted EPS was $8.79 and increased 15%
|
Operating cash flow was $561.4 million and increased 17%
|
• |
Full-year 2024 cloud revenue growth of at least 18% year over year, exclusive of any contribution from the LiveVox acquisition.
|
• |
LiveVox is expected to contribute incrementally an approximate $142 million to cloud revenue for full-year 2024.
|
NICE LTD. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
December 31,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
511,795
|
$
|
529,596
|
||||
Short-term investments
|
896,044
|
1,041,943
|
||||||
Trade receivables
|
585,154
|
518,517
|
||||||
Debt hedge option
|
121,922
|
122,323
|
||||||
Prepaid expenses and other current assets
|
197,967
|
204,754
|
||||||
Total current assets
|
2,312,882
|
2,417,133
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
174,414
|
159,285
|
||||||
Deferred tax assets
|
178,971
|
116,889
|
||||||
Other intangible assets, net
|
305,501
|
209,605
|
||||||
Operating lease right-of-use assets
|
104,565
|
102,893
|
||||||
Goodwill
|
1,821,969
|
1,617,118
|
||||||
Prepaid expenses and other long-term assets
|
219,332
|
231,496
|
||||||
Total long-term assets
|
2,804,752
|
2,437,286
|
||||||
TOTAL ASSETS
|
$
|
5,117,634
|
$
|
4,854,419
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
66,036
|
$
|
56,019
|
||||
Deferred revenues and advances from customers
|
302,649
|
338,930
|
||||||
Current maturities of operating leases
|
13,747
|
13,525
|
||||||
Debt
|
209,229
|
209,292
|
||||||
Accrued expenses and other liabilities
|
528,660
|
523,451
|
||||||
Total current liabilities
|
1,120,321
|
1,141,217
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
52,458
|
57,211
|
||||||
Operating leases
|
102,909
|
99,262
|
||||||
Deferred tax liabilities
|
8,596
|
7,336
|
||||||
Debt
|
457,081
|
455,382
|
||||||
Other long-term liabilities
|
21,769
|
38,588
|
||||||
Total long-term liabilities
|
642,813
|
657,779
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
3,341,132
|
3,042,085
|
||||||
Non-controlling interests
|
13,368
|
13,338
|
||||||
Total shareholders' equity
|
3,354,500
|
3,055,423
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
5,117,634
|
$
|
4,854,419
|
NICE LTD. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Revenue:
|
||||||||||||||||
Cloud
|
$
|
428,986
|
$
|
358,850
|
$
|
1,581,825
|
$
|
1,295,323
|
||||||||
Services
|
162,365
|
161,208
|
641,387
|
650,116
|
||||||||||||
Product
|
31,841
|
48,502
|
154,296
|
235,855
|
||||||||||||
Total revenue
|
623,192
|
568,560
|
2,377,508
|
2,181,294
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Cloud
|
146,510
|
127,309
|
553,654
|
472,805
|
||||||||||||
Services
|
48,674
|
46,339
|
188,890
|
183,938
|
||||||||||||
Product
|
5,694
|
7,332
|
25,629
|
26,945
|
||||||||||||
Total cost of revenue
|
200,878
|
180,980
|
768,173
|
683,688
|
||||||||||||
Gross profit
|
422,314
|
387,580
|
1,609,335
|
1,497,606
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
81,119
|
81,964
|
322,708
|
306,073
|
||||||||||||
Selling and marketing
|
154,500
|
148,198
|
599,114
|
609,833
|
||||||||||||
General and administrative
|
64,030
|
69,594
|
252,286
|
246,527
|
||||||||||||
Total operating expenses
|
299,649
|
299,756
|
1,174,108
|
1,162,433
|
||||||||||||
Operating income
|
122,665
|
87,824
|
435,227
|
335,173
|
||||||||||||
Financial expenses (income) and other, net
|
2,635
|
(9,127
|
)
|
(22,473
|
)
|
(10,159
|
)
|
|||||||||
Income before tax
|
120,030
|
96,951
|
457,700
|
345,332
|
||||||||||||
Taxes on income
|
38,378
|
25,765
|
119,399
|
79,387
|
||||||||||||
Net income
|
$
|
81,652
|
$
|
71,186
|
$
|
338,301
|
$
|
265,945
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.29
|
$
|
1.11
|
$
|
5.32
|
$
|
4.17
|
||||||||
Diluted
|
$
|
1.24
|
$
|
1.07
|
$
|
5.11
|
$
|
4.00
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
63,283
|
63,961
|
63,590
|
63,790
|
||||||||||||
Diluted
|
65,749
|
66,285
|
66,265
|
66,465
|
NICE LTD. AND SUBSIDIARIES
|
CONSOLIDATED CASH FLOW STATEMENTS
|
U.S. dollars in thousands
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
81,652
|
$
|
71,186
|
$
|
338,301
|
$
|
265,945
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
41,212
|
47,469
|
167,360
|
176,546
|
||||||||||||
Share-based compensation
|
46,170
|
49,015
|
176,658
|
182,704
|
||||||||||||
Amortization of premium and discount and accrued interest on marketable securities
|
436
|
1,160
|
2,480
|
8,322
|
||||||||||||
Deferred taxes, net
|
(35,833
|
)
|
(28,992
|
)
|
(66,620
|
)
|
(52,618
|
)
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Trade Receivables, net
|
(16,572
|
)
|
(44,077
|
)
|
(34,292
|
)
|
(129,712
|
)
|
||||||||
Prepaid expenses and other current assets
|
95,413
|
8,600
|
73,052
|
(31,673
|
)
|
|||||||||||
Operating lease right-of-use assets
|
3,833
|
3,579
|
12,518
|
20,393
|
||||||||||||
Trade payables
|
2,642
|
18,280
|
3,426
|
19,923
|
||||||||||||
Accrued expenses and other current liabilities
|
(27,012
|
)
|
43,967
|
(55,703
|
)
|
33,684
|
||||||||||
Deferred revenue
|
(6,285
|
)
|
8,749
|
(45,947
|
)
|
6,417
|
||||||||||
Realized loss on marketable securities, net
|
12,271
|
-
|
12,271
|
-
|
||||||||||||
Operating lease liabilities
|
441
|
(3,703
|
)
|
(11,100
|
)
|
(26,191
|
)
|
|||||||||
Amortization of discount on long-term debt
|
1,166
|
1,151
|
4,615
|
4,582
|
||||||||||||
Loss from extinguishment of debt
|
16
|
-
|
53
|
1,206
|
||||||||||||
Change in fair value of contingent consideration
|
(18,258
|
)
|
-
|
(18,258
|
)
|
-
|
||||||||||
Other
|
(796
|
)
|
322
|
2,616
|
187
|
|||||||||||
Net cash provided by operating activities
|
180,496
|
176,706
|
561,430
|
479,715
|
||||||||||||
Investing Activities
|
||||||||||||||||
Purchase of property and equipment
|
(6,079
|
)
|
(10,941
|
)
|
(29,205
|
)
|
(31,893
|
)
|
||||||||
Purchase of Investments
|
(29,620
|
)
|
(30,840
|
)
|
(230,263
|
)
|
(396,297
|
)
|
||||||||
Proceeds from Investments
|
129,006
|
33,156
|
436,044
|
355,560
|
||||||||||||
Capitalization of internal use software costs
|
(13,868
|
)
|
(12,826
|
)
|
(54,974
|
)
|
(49,997
|
)
|
||||||||
Payments for business acquisitions, net of cash acquired
|
(396,780
|
)
|
(30,000
|
)
|
(415,185
|
)
|
(29,724
|
)
|
||||||||
Net cash provided used in investing activities
|
(317,341
|
)
|
(51,451
|
)
|
(293,583
|
)
|
(152,351
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
803
|
529
|
2,570
|
953
|
||||||||||||
Purchase of treasury shares
|
(69,026
|
)
|
(24,543
|
)
|
(288,443
|
)
|
(144,944
|
)
|
||||||||
Dividends paid to noncontrolling interest
|
(291
|
)
|
-
|
(1,771
|
)
|
(376
|
)
|
|||||||||
Repayment of debt
|
(1,071
|
)
|
(4
|
)
|
(2,628
|
)
|
(20,132
|
)
|
||||||||
Net cash used in financing activities
|
(69,585
|
)
|
(24,018
|
)
|
(290,272
|
)
|
(164,499
|
)
|
||||||||
Effect of exchange rates on cash and cash equivalents
|
3,754
|
3,877
|
2,643
|
(8,425
|
)
|
|||||||||||
Net change in cash, cash equivalents and restricted cash
|
(202,676
|
)
|
105,114
|
(19,782
|
)
|
154,440
|
||||||||||
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
715,990
|
$
|
427,982
|
$
|
533,096
|
$
|
378,656
|
||||||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
513,314
|
$
|
533,096
|
$
|
513,314
|
$
|
533,096
|
||||||||
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
511,795
|
$
|
529,596
|
$
|
511,795
|
$
|
529,596
|
||||||||
Restricted cash included in other current assets
|
$
|
1,519
|
$
|
3,500
|
$
|
1,519
|
$
|
3,500
|
||||||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
513,314
|
$
|
533,096
|
$
|
513,314
|
$
|
533,096
|
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
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
GAAP revenues
|
$
|
623,192
|
$
|
568,560
|
$
|
2,377,508
|
$
|
2,181,294
|
||||||||
Non-GAAP revenues
|
$
|
623,192
|
$
|
568,560
|
$
|
2,377,508
|
$
|
2,181,294
|
||||||||
GAAP cost of revenue
|
$
|
200,878
|
$
|
180,980
|
$
|
768,173
|
$
|
683,688
|
||||||||
Amortization of acquired intangible assets on cost of cloud
|
(17,935
|
)
|
(18,940
|
)
|
(75,667
|
)
|
(74,791
|
)
|
||||||||
Amortization of acquired intangible assets on cost of services
|
-
|
-
|
-
|
(377
|
)
|
|||||||||||
Amortization of acquired intangible assets on cost of product
|
(255
|
)
|
(241
|
)
|
(1,021
|
)
|
(1,017
|
)
|
||||||||
Valuation adjustment on acquired deferred cost of cloud
|
-
|
13
|
-
|
54
|
||||||||||||
Cost of cloud revenue adjustment (1)
|
(4,605
|
)
|
(2,451
|
)
|
(10,965
|
)
|
(8,840
|
)
|
||||||||
Cost of services revenue adjustment (1)
|
(3,142
|
)
|
(3,233
|
)
|
(11,906
|
)
|
(11,497
|
)
|
||||||||
Cost of product revenue adjustment (1)
|
15
|
(147
|
)
|
121
|
(548
|
)
|
||||||||||
Non-GAAP cost of revenue
|
$
|
174,956
|
$
|
155,981
|
$
|
668,735
|
$
|
586,672
|
||||||||
GAAP gross profit
|
$
|
422,314
|
$
|
387,580
|
$
|
1,609,335
|
$
|
1,497,606
|
||||||||
Gross profit adjustments
|
25,922
|
24,999
|
99,438
|
97,016
|
||||||||||||
Non-GAAP gross profit
|
$
|
448,236
|
$
|
412,579
|
$
|
1,708,773
|
$
|
1,594,622
|
||||||||
GAAP operating expenses
|
$
|
299,649
|
$
|
299,756
|
$
|
1,174,108
|
$
|
1,162,433
|
||||||||
Research and development (1)
|
(6,997
|
)
|
(9,736
|
)
|
(31,402
|
)
|
(33,561
|
)
|
||||||||
Sales and marketing (1,2)
|
(11,515
|
)
|
(13,993
|
)
|
(48,048
|
)
|
(57,114
|
)
|
||||||||
General and administrative (1,2)
|
(34,588
|
)
|
(20,549
|
)
|
(92,291
|
)
|
(73,540
|
)
|
||||||||
Amortization of acquired intangible assets
|
(3,506
|
)
|
(5,748
|
)
|
(15,757
|
)
|
(28,901
|
)
|
||||||||
Valuation adjustment on acquired deferred commission
|
22
|
43
|
128
|
196
|
||||||||||||
Change in fair value of contingent consideration
|
18,258
|
-
|
18,258
|
-
|
||||||||||||
Non-GAAP operating expenses
|
$
|
261,323
|
$
|
249,773
|
$
|
1,004,996
|
$
|
969,513
|
||||||||
GAAP financial and other income, net
|
$
|
2,635
|
$
|
(9,127
|
)
|
$
|
(22,473
|
)
|
$
|
(10,159
|
)
|
|||||
Amortization of discount and loss of extinguishment on debt
|
(1,182
|
)
|
(1,151
|
)
|
(4,668
|
)
|
(5,788
|
)
|
||||||||
Realized loss on marketable securities, net
|
(12,271
|
)
|
-
|
(12,271
|
)
|
-
|
||||||||||
Change in fair value of contingent consideration
|
-
|
-
|
(817
|
)
|
-
|
|||||||||||
Non-GAAP financial and other income, net
|
(10,818
|
)
|
(10,278
|
)
|
(40,229
|
)
|
(15,947
|
)
|
||||||||
GAAP taxes on income
|
$
|
38,378
|
$
|
25,765
|
$
|
119,399
|
$
|
79,387
|
||||||||
Tax adjustments re non-GAAP adjustments
|
4,464
|
12,037
|
41,937
|
54,897
|
||||||||||||
Non-GAAP taxes on income
|
$
|
42,842
|
$
|
37,802
|
$
|
161,336
|
$
|
134,284
|
||||||||
GAAP net income
|
$
|
81,652
|
$
|
71,186
|
$
|
338,301
|
$
|
265,945
|
||||||||
Valuation adjustment on acquired deferred cost of cloud revenue
|
-
|
(13
|
)
|
-
|
(54
|
)
|
||||||||||
Amortization of acquired intangible assets
|
21,696
|
24,929
|
92,445
|
105,086
|
||||||||||||
Valuation adjustment on acquired deferred commission
|
(22
|
)
|
(43
|
)
|
(128
|
)
|
(196
|
)
|
||||||||
Share-based compensation (1)
|
47,298
|
50,061
|
180,504
|
185,052
|
||||||||||||
Acquisition related expenses (2)
|
13,534
|
48
|
13,987
|
48
|
||||||||||||
Amortization of discount and loss of extinguishment on debt
|
1,182
|
1,151
|
4,668
|
5,788
|
||||||||||||
Realized loss on marketable securities, net
|
12,271
|
-
|
12,271
|
-
|
||||||||||||
Change in fair value of contingent consideration
|
(18,258
|
)
|
-
|
(17,441
|
)
|
-
|
||||||||||
Tax adjustments re non-GAAP adjustments
|
(4,464
|
)
|
(12,037
|
)
|
(41,937
|
)
|
(54,897
|
)
|
||||||||
Non-GAAP net income
|
$
|
154,889
|
$
|
135,282
|
$
|
582,670
|
$
|
506,772
|
||||||||
GAAP diluted earnings per share
|
$
|
1.24
|
$
|
1.07
|
$
|
5.11
|
$
|
4.00
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
2.36
|
$
|
2.04
|
$
|
8.79
|
$
|
7.62
|
||||||||
Shares used in computing GAAP diluted earnings per share
|
65,749
|
66,285
|
66,265
|
66,465
|
||||||||||||
Shares used in computing non-GAAP diluted earnings per share
|
65,749
|
66,285
|
66,265
|
66,465
|
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
|
|||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||
Cost of cloud revenue
|
$
|
4,605
|
$
|
2,451
|
$
|
10,965
|
$
|
8,840
|
||||||||||
Cost of services revenue
|
3,142
|
3,233
|
11,906
|
11,497
|
||||||||||||||
Cost of product revenue
|
(15
|
)
|
147
|
(121
|
)
|
548
|
||||||||||||
Research and development
|
6,997
|
9,736
|
31,402
|
33,561
|
||||||||||||||
Sales and marketing
|
11,515
|
13,993
|
48,023
|
57,114
|
||||||||||||||
General and administrative
|
21,054
|
20,501
|
78,329
|
73,492
|
||||||||||||||
$
|
47,298
|
$
|
50,061
|
$
|
180,504
|
$
|
185,052
|
(2
|
)
|
Acquisition related expenses
|
||||||||||||||||
Quarter ended
|
Year to date
|
|||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||
Sales and marketing
|
$
|
-
|
$
|
-
|
$
|
25
|
$
|
-
|
||||||||||
General and administrative
|
13,534
|
48
|
13,962
|
48
|
||||||||||||||
$
|
13,534
|
$
|
48
|
$
|
13,987
|
$
|
48
|
NICE LTD. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
|
U.S. dollars in thousands
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
GAAP net income
|
$
|
81,652
|
$
|
71,186
|
$
|
338,301
|
$
|
265,945
|
||||||||
Non-GAAP adjustments:
|
||||||||||||||||
Depreciation and amortization
|
41,212
|
47,469
|
167,360
|
176,546
|
||||||||||||
Share-based Compensation
|
46,170
|
49,015
|
176,658
|
182,704
|
||||||||||||
Financial and other expense/ (income), net
|
2,635
|
(9,127
|
)
|
(22,473
|
)
|
(10,159
|
)
|
|||||||||
Acquisition related expenses
|
13,534
|
48
|
13,987
|
48
|
||||||||||||
Change in fair value of contingent consideration
|
(18,258
|
)
|
-
|
(18,258
|
)
|
-
|
||||||||||
Valuation adjustment on acquired deferred commission
|
(22
|
)
|
(43
|
)
|
(128
|
)
|
(196
|
)
|
||||||||
Valuation adjustment on acquired deferred cost of cloud
|
-
|
(13
|
)
|
-
|
(54
|
)
|
||||||||||
Taxes on income
|
38,378
|
25,765
|
119,399
|
79,387
|
||||||||||||
Non-GAAP EBITDA
|
$
|
205,301
|
$
|
184,300
|
$
|
774,846
|
$
|
694,221
|
NICE LTD. AND SUBSIDIARIES
|
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
|
U.S. dollars in thousands
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Free cash flow (a)
|
||||||||||||||||
Net cash provided by operating activities
|
$
|
180,496
|
$
|
176,706
|
$
|
561,430
|
$
|
479,715
|
||||||||
Purchase of property and equipment
|
(6,079
|
)
|
(10,941
|
)
|
(29,205
|
)
|
(31,893
|
)
|
||||||||
Capitalization of internal use software costs
|
(13,868
|
)
|
(12,826
|
)
|
(54,974
|
)
|
(49,997
|
)
|
||||||||
Free Cash Flow
|
$
|
160,549
|
$
|
152,939
|
$
|
477,251
|
$
|
397,825
|