• |
Full-year cloud revenue growth of 27% at constant currency
|
• |
Full-year total revenue growth of 14% at constant currency, exceeding high end of guidance range
|
• |
Non-GAAP full year earnings per share growth of 17%, exceeding high end of guidance range
|
GAAP
|
Non-GAAP
|
Total revenue was $568.6 million and increased 10%
|
Total revenue was $568.6 million and increased 10% ($575.8 million in constant currency, up 12%)
|
Cloud revenue was $358.9 million and increased 26%
|
Cloud revenue was $358.9 million and increased 26% ($361.4 million in constant currency, up 27%)
|
Cloud gross margin was 64.5% compared to 60.7% last year
|
Cloud gross margin was 70.5% compared to 68.2% last year
|
Total gross margin was 68.2% compared to 67.9% last year
|
Total gross margin was 72.6% compared to 73.0% last year
|
Operating income was $87.8 million and increased 35%
|
Operating income was $162.8 million and increased 12%
|
Operating margin was 15.4% compared to 12.6% last year
|
Operating margin was 28.6%, compared to 28.2% last year
|
Diluted EPS was $1.07 and increased 41%
|
Diluted EPS was $2.04 and increased 18%
|
Operating cash flow increased 57% to $176.7 million
|
GAAP
|
Non-GAAP
|
Total revenue was $2,181.3 million, and increased 14%
|
Total revenue was $2,181.3 million, and increased 13% ($2,204.1 million in constant currency, up 14%)
|
Cloud revenue was $1,295.3 million and increased 27%
|
Cloud revenue was $1,295.3 million and increased 27% ($1,303.0 million in constant currency, up 27%)
|
Cloud gross margin was 63.5% compared to 59.7% last year
|
Cloud gross margin was 70.0% compared to 67.7% last year
|
Total gross margin was 68.7% compared to 67.5% last year
|
Total gross margin was 73.1% compared to 72.6% last year
|
Operating income was $335.2 million and increased 27%
|
Operating income was $625.1 million and increased 15%
|
Operating margin was 15.4% compared to 13.7% last year
|
Operating margin was 28.7%, compared to 28.2% last year
|
Diluted EPS was $4.00 and increased 34%
|
Diluted EPS was $7.62 versus and increased 17%
|
Operating cash flow increased 4% to $479.7 million
|
NICE LTD. AND SUBSIDIARIES
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
U.S. dollars in thousands
|
December 31,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
529,596
|
$
|
378,656
|
||||
Short-term investments
|
1,041,943
|
1,046,095
|
||||||
Trade receivables
|
515,730
|
395,583
|
||||||
Debt hedge option
|
122,323
|
292,940
|
||||||
Prepaid expenses and other current assets
|
206,372
|
184,604
|
||||||
Total current assets
|
2,415,964
|
2,297,878
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
159,284
|
145,654
|
||||||
Deferred tax assets
|
119,821
|
55,246
|
||||||
Other intangible assets, net
|
209,605
|
295,378
|
||||||
Operating lease right-of-use assets
|
102,893
|
85,055
|
||||||
Goodwill
|
1,617,118
|
1,606,756
|
||||||
Prepaid expenses and other long-term assets
|
231,496
|
224,445
|
||||||
Total long-term assets
|
2,440,217
|
2,412,534
|
||||||
TOTAL ASSETS
|
$
|
4,856,181
|
$
|
4,710,412
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
56,019
|
$
|
36,121
|
||||
Deferred revenues and advances from customers
|
338,930
|
330,459
|
||||||
Current maturities of operating leases
|
13,525
|
19,514
|
||||||
Debt
|
209,292
|
395,946
|
||||||
Accrued expenses and other liabilities
|
526,527
|
487,547
|
||||||
Total current liabilities
|
1,144,293
|
1,269,587
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
57,211
|
66,606
|
||||||
Operating leases
|
99,261
|
81,185
|
||||||
Deferred tax liabilities
|
6,024
|
7,429
|
||||||
Debt
|
455,382
|
429,267
|
||||||
Other long-term liabilities
|
38,587
|
18,379
|
||||||
Total long-term liabilities
|
656,465
|
602,866
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
3,042,085
|
2,825,085
|
||||||
Non-controlling interests
|
13,338
|
12,874
|
||||||
Total shareholders' equity
|
3,055,423
|
2,837,959
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,856,181
|
$
|
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
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Revenue:
|
||||||||||||||||
Cloud
|
$
|
358,850
|
$
|
285,201
|
$
|
1,295,323
|
$
|
1,018,624
|
||||||||
Services
|
161,208
|
166,376
|
650,116
|
660,083
|
||||||||||||
Product
|
48,502
|
63,896
|
235,855
|
242,443
|
||||||||||||
Total revenue
|
568,560
|
515,473
|
2,181,294
|
1,921,150
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Cloud
|
127,309
|
112,127
|
472,805
|
410,671
|
||||||||||||
Services
|
46,339
|
47,341
|
183,938
|
191,137
|
||||||||||||
Product
|
7,332
|
5,777
|
26,945
|
22,648
|
||||||||||||
Total cost of revenue
|
180,980
|
165,245
|
683,688
|
624,456
|
||||||||||||
Gross profit
|
387,580
|
350,228
|
1,497,606
|
1,296,694
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
81,964
|
75,332
|
306,073
|
271,187
|
||||||||||||
Selling and marketing
|
148,198
|
149,662
|
609,833
|
536,192
|
||||||||||||
General and administrative
|
69,594
|
60,167
|
246,527
|
225,406
|
||||||||||||
Total operating expenses
|
299,756
|
285,161
|
1,162,433
|
1,032,785
|
||||||||||||
Operating income
|
87,824
|
65,067
|
335,173
|
263,909
|
||||||||||||
Financial and other expense (income), net
|
(9,127
|
)
|
7,696
|
(10,159
|
)
|
23,290
|
||||||||||
Income before tax
|
96,951
|
57,371
|
345,332
|
240,619
|
||||||||||||
Taxes on income
|
25,765
|
6,210
|
79,387
|
41,396
|
||||||||||||
Net income
|
$
|
71,186
|
$
|
51,161
|
$
|
265,945
|
$
|
199,223
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.11
|
$
|
0.81
|
$
|
4.17
|
$
|
3.15
|
||||||||
Diluted
|
$
|
1.07
|
$
|
0.76
|
$
|
4.00
|
$
|
2.98
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
63,961
|
63,382
|
63,790
|
63,189
|
||||||||||||
Diluted
|
66,285
|
67,245
|
66,465
|
66,896
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED CASH FLOW STATEMENTS
|
|||||||
U.S. dollars in thousands
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
71,186
|
$
|
51,161
|
$
|
265,945
|
$
|
199,223
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||
Depreciation and amortization
|
47,469
|
47,350
|
176,546
|
184,092
|
||||||||||||
Stock based compensation
|
49,015
|
49,968
|
182,704
|
153,030
|
||||||||||||
Amortization of premium and discount and accrued interest on marketable securities
|
1,160
|
1,855
|
8,322
|
11,867
|
||||||||||||
Deferred taxes, net
|
(33,236
|
)
|
(9,114
|
)
|
(56,862
|
)
|
(39,316
|
)
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Trade Receivables
|
(41,290
|
)
|
(40,149
|
)
|
(126,925
|
)
|
(85,778
|
)
|
||||||||
Prepaid expenses and other assets
|
6,983
|
(43,405
|
)
|
(33,290
|
)
|
(79,624
|
)
|
|||||||||
Trade payables
|
18,280
|
9,254
|
19,923
|
(389
|
)
|
|||||||||||
Accrued expenses and other liabilities
|
47,041
|
41,578
|
36,758
|
64,179
|
||||||||||||
Operating lease right-of-use assets
|
3,579
|
2,758
|
20,393
|
15,075
|
||||||||||||
Deferred revenues
|
8,749
|
(2,276
|
)
|
6,417
|
30,770
|
|||||||||||
Operating lease liabilities
|
(3,703
|
)
|
(3,206
|
)
|
(26,191
|
)
|
(18,011
|
)
|
||||||||
Amortization of discount on debt
|
1,151
|
2,946
|
4,582
|
14,469
|
||||||||||||
Loss in respect of debt extinguishment
|
-
|
5,893
|
1,206
|
13,969
|
||||||||||||
Other
|
322
|
(1,955
|
)
|
187
|
(1,740
|
)
|
||||||||||
Net cash provided by operating activities
|
176,706
|
112,658
|
479,715
|
461,816
|
||||||||||||
Investing Activities
|
||||||||||||||||
Purchase of property and equipment
|
(10,941
|
)
|
(3,658
|
)
|
(31,893
|
)
|
(24,771
|
)
|
||||||||
Purchase of Investments
|
(30,840
|
)
|
(40,233
|
)
|
(396,297
|
)
|
(322,129
|
)
|
||||||||
Proceeds from Investments
|
33,156
|
44,681
|
355,560
|
270,645
|
||||||||||||
Capitalization of internal use software costs
|
(12,826
|
)
|
(10,453
|
)
|
(49,997
|
)
|
(42,440
|
)
|
||||||||
Other
|
-
|
-
|
276
|
-
|
||||||||||||
Payments for business and asset acquisitions, net of cash acquired
|
(30,000
|
)
|
360
|
(30,000
|
)
|
(142,804
|
)
|
|||||||||
Net cash used in investing activities
|
(51,451
|
)
|
(9,303
|
)
|
(152,351
|
)
|
(261,499
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of options
|
529
|
942
|
953
|
4,426
|
||||||||||||
Purchase of treasury shares
|
(24,543
|
)
|
(24,272
|
)
|
(144,944
|
)
|
(73,180
|
)
|
||||||||
Dividends paid to noncontrolling interest
|
-
|
(953
|
)
|
(376
|
)
|
(1,754
|
)
|
|||||||||
Purchase of subsidiaries shares from non-controlling interest
|
-
|
(14,000
|
)
|
-
|
(14,000
|
)
|
||||||||||
Repayment of debt
|
(4
|
)
|
(83,993
|
)
|
(20,132
|
)
|
(177,308
|
)
|
||||||||
Net cash used in financing activities
|
(24,018
|
)
|
(122,276
|
)
|
(164,499
|
)
|
(261,816
|
)
|
||||||||
Effect of exchange rates on cash and cash equivalents
|
3,877
|
(119
|
)
|
(8,425
|
)
|
(2,112
|
)
|
|||||||||
Net change in cash, cash equivalents and restricted cash
|
105,114
|
(19,040
|
)
|
154,440
|
(63,611
|
)
|
||||||||||
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
427,982
|
$
|
397,696
|
$
|
378,656
|
$
|
442,267
|
||||||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
533,096
|
$
|
378,656
|
$
|
533,096
|
$
|
378,656
|
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,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
GAAP revenues
|
$
|
568,560
|
$
|
515,473
|
$
|
2,181,294
|
$
|
1,921,150
|
||||||||
Valuation adjustment on acquired deferred cloud revenue
|
-
|
-
|
-
|
4,372
|
||||||||||||
Valuation adjustment on acquired deferred services revenue
|
-
|
-
|
-
|
175
|
||||||||||||
Non-GAAP revenues
|
$
|
568,560
|
$
|
515,473
|
$
|
2,181,294
|
$
|
1,925,697
|
||||||||
GAAP cost of revenue
|
$
|
180,980
|
$
|
165,245
|
$
|
683,688
|
$
|
624,456
|
||||||||
Amortization of acquired intangible assets on cost of cloud
|
(18,940
|
)
|
(18,796
|
)
|
(74,791
|
)
|
(72,015
|
)
|
||||||||
Amortization of acquired intangible assets on cost of services
|
-
|
(669
|
)
|
(377
|
)
|
(4,228
|
)
|
|||||||||
Amortization of acquired intangible assets on cost of product
|
(241
|
)
|
(277
|
)
|
(1,017
|
)
|
(1,130
|
)
|
||||||||
Valuation adjustment on acquired deferred cost of cloud
|
13
|
21
|
54
|
97
|
||||||||||||
Cost of cloud revenue adjustment (1)
|
(2,451
|
)
|
(2,661
|
)
|
(8,840
|
)
|
(7,949
|
)
|
||||||||
Cost of services revenue adjustment (1)
|
(3,233
|
)
|
(3,597
|
)
|
(11,497
|
)
|
(10,513
|
)
|
||||||||
Cost of product revenue adjustment (1)
|
(147
|
)
|
(185
|
)
|
(548
|
)
|
(595
|
)
|
||||||||
Non-GAAP cost of revenue
|
$
|
155,981
|
$
|
139,081
|
$
|
586,672
|
$
|
528,123
|
||||||||
GAAP gross profit
|
$
|
387,580
|
$
|
350,228
|
$
|
1,497,606
|
$
|
1,296,694
|
||||||||
Gross profit adjustments
|
24,999
|
26,164
|
97,016
|
100,880
|
||||||||||||
Non-GAAP gross profit
|
$
|
412,579
|
$
|
376,392
|
$
|
1,594,622
|
$
|
1,397,574
|
||||||||
GAAP operating expenses
|
$
|
299,756
|
$
|
285,161
|
$
|
1,162,433
|
$
|
1,032,785
|
||||||||
Research and development (1)
|
(9,736
|
)
|
(9,980
|
)
|
(33,561
|
)
|
(25,221
|
)
|
||||||||
Sales and marketing (1)
|
(13,993
|
)
|
(14,495
|
)
|
(57,114
|
)
|
(42,021
|
)
|
||||||||
General and administrative (1)
|
(20,549
|
)
|
(19,403
|
)
|
(73,540
|
)
|
(70,776
|
)
|
||||||||
Amortization of acquired intangible assets
|
(5,748
|
)
|
(10,538
|
)
|
(28,901
|
)
|
(41,308
|
)
|
||||||||
Valuation adjustment on acquired deferred commission
|
43
|
54
|
196
|
215
|
||||||||||||
Non-GAAP operating expenses
|
$
|
249,773
|
$
|
230,799
|
$
|
969,513
|
$
|
853,674
|
||||||||
GAAP financial and other expense (income), net
|
$
|
(9,127
|
)
|
$
|
7,696
|
$
|
(10,159
|
)
|
$
|
23,290
|
||||||
Amortization of discount on debt and loss from extinguishment of debt
|
(1,151
|
)
|
(8,874
|
)
|
(5,788
|
)
|
(28,279
|
)
|
||||||||
Non-GAAP financial and other income, net
|
$
|
(10,278
|
)
|
$
|
(1,178
|
)
|
$
|
(15,947
|
)
|
$
|
(4,989
|
)
|
||||
GAAP taxes on income
|
$
|
25,765
|
$
|
6,210
|
$
|
79,387
|
$
|
41,396
|
||||||||
Tax adjustments re non-GAAP adjustments
|
12,037
|
23,898
|
54,897
|
71,157
|
||||||||||||
Non-GAAP taxes on income
|
$
|
37,802
|
$
|
30,108
|
$
|
134,284
|
$
|
112,553
|
||||||||
GAAP net income
|
$
|
71,186
|
$
|
51,161
|
$
|
265,945
|
$
|
199,223
|
||||||||
Valuation adjustment on acquired deferred revenue
|
-
|
-
|
-
|
4,547
|
||||||||||||
Valuation adjustment on acquired deferred cost of cloud revenue
|
(13
|
)
|
(21
|
)
|
(54
|
)
|
(97
|
)
|
||||||||
Amortization of acquired intangible assets
|
24,929
|
30,280
|
105,086
|
118,681
|
||||||||||||
Valuation adjustment on acquired deferred commission
|
(43
|
)
|
(54
|
)
|
(196
|
)
|
(215
|
)
|
||||||||
Share-based compensation (1)
|
50,061
|
50,321
|
185,052
|
154,213
|
||||||||||||
Acquisition related expenses (2)
|
48
|
-
|
48
|
2,862
|
||||||||||||
Amortization of discount on debt and loss from extinguishment of debt
|
1,151
|
8,874
|
5,788
|
28,279
|
||||||||||||
Tax adjustments re non-GAAP adjustments
|
(12,037
|
)
|
(23,898
|
)
|
(54,897
|
)
|
(71,157
|
)
|
||||||||
Non-GAAP net income
|
$
|
135,282
|
$
|
116,663
|
$
|
506,772
|
$
|
436,336
|
||||||||
GAAP diluted earnings per share
|
$
|
1.07
|
$
|
0.76
|
$
|
4.00
|
$
|
2.98
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
2.04
|
$
|
1.73
|
$
|
7.62
|
$
|
6.52
|
||||||||
Shares used in computing GAAP diluted earnings per share
|
66,285
|
67,245
|
66,465
|
66,896
|
||||||||||||
Shares used in computing non-GAAP diluted earnings per share
|
66,285
|
67,245
|
66,465
|
66,896
|
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,
|
||||||||||||||||
2022
|
2021
|
2022
|
2021
|
||||||||||||||
Cost of cloud revenue
|
$
|
2,451
|
$
|
2,661
|
$
|
8,840
|
$
|
7,949
|
|||||||||
Cost of services revenue
|
3,233
|
3,597
|
11,497
|
10,513
|
|||||||||||||
Cost of product revenue
|
147
|
185
|
548
|
595
|
|||||||||||||
Research and development
|
9,736
|
9,980
|
33,561
|
25,221
|
|||||||||||||
Sales and marketing
|
13,993
|
14,495
|
57,114
|
42,021
|
|||||||||||||
General and administrative
|
20,501
|
19,403
|
73,492
|
67,914
|
|||||||||||||
$
|
50,061
|
$
|
50,321
|
$
|
185,052
|
$
|
154,213
|
(2)
|
Acquisition related expenses
|
Quarter ended
|
Year to date
|
||||||||||||||||
December 31,
|
December 31,
|
||||||||||||||||
2022
|
2021
|
2022
|
2021
|
||||||||||||||
Research and development
|
-
|
-
|
-
|
-
|
|||||||||||||
Sales and marketing
|
-
|
-
|
-
|
-
|
|||||||||||||
General and administrative
|
48
|
-
|
48
|
2,862
|
|||||||||||||
48
|
-
|
48
|
2,862
|