GAAP
|
Non-GAAP
|
Total revenue of $530.6 million, growth of 16.1% year-over-year
|
Total revenue of $530.6 million, growth of 15.6% year-over-year
|
Cloud revenue of $311.4 million, growth of 27.9% year-over-year
|
Cloud revenue of $311.4 million, growth of 26.8% year-over-year
|
Cloud gross margin of 63.6% compared to 59.3% last year
|
Cloud gross margin of 70.1% compared to 67.7% last year
|
Total gross margin of 68.9% compared to 67.1% last year
|
Total gross margin of 73.3% compared to 72.2% last year
|
Operating income of $84.7 million compared to $64.8 million last year, growth of 30.7% year-over-year
|
Operating income of $154.0 million compared to $129.6 million last year, growth of 18.8% year-over-year
|
Operating margin of 16.0% compared to 14.2% last year
|
Operating margin of 29.0%, compared to 28.2% last year
|
Diluted EPS of $0.99 versus $0.68 last year, growth of 45.6%
|
Diluted EPS of $1.86 versus $1.57 last year, growth of 18.5%
|
NICE LTD. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
June 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
382,219
|
$
|
378,656
|
||||
Short-term investments
|
1,052,391
|
1,046,095
|
||||||
Trade receivables
|
459,743
|
395,583
|
||||||
Debt hedge option
|
122,805
|
292,940
|
||||||
Prepaid expenses and other current assets
|
206,291
|
184,604
|
||||||
Total current assets
|
2,223,449
|
2,297,878
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
153,894
|
145,654
|
||||||
Deferred tax assets
|
73,590
|
55,246
|
||||||
Other intangible assets, net
|
238,912
|
295,378
|
||||||
Operating lease right-of-use assets
|
108,714
|
85,055
|
||||||
Goodwill
|
1,589,729
|
1,606,756
|
||||||
Prepaid expenses and other long-term assets
|
234,475
|
224,445
|
||||||
Total long-term assets
|
2,399,314
|
2,412,534
|
||||||
TOTAL ASSETS
|
$
|
4,622,763
|
$
|
4,710,412
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
60,436
|
$
|
36,121
|
||||
Deferred revenues and advances from customers
|
371,303
|
330,459
|
||||||
Current maturities of operating leases
|
15,866
|
19,514
|
||||||
Debt
|
208,355
|
395,946
|
||||||
Accrued expenses and other liabilities
|
458,810
|
487,547
|
||||||
Total current liabilities
|
1,114,770
|
1,269,587
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
55,874
|
66,606
|
||||||
Operating leases
|
104,368
|
81,185
|
||||||
Deferred tax liabilities
|
5,544
|
7,429
|
||||||
Debt
|
454,528
|
429,267
|
||||||
Other long-term liabilities
|
17,161
|
18,379
|
||||||
Total long-term liabilities
|
637,475
|
602,866
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
2,857,895
|
2,825,085
|
||||||
Non-controlling interests
|
12,623
|
12,874
|
||||||
Total shareholders' equity
|
2,870,518
|
2,837,959
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,622,763
|
$
|
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
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Revenue:
|
||||||||||||||||
Cloud
|
$
|
311,394
|
$
|
243,520
|
$
|
605,986
|
$
|
471,601
|
||||||||
Services
|
166,733
|
167,133
|
323,707
|
328,924
|
||||||||||||
Product
|
52,454
|
46,174
|
128,317
|
111,323
|
||||||||||||
Total revenue
|
530,581
|
456,827
|
1,058,010
|
911,848
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Cloud
|
113,441
|
99,172
|
226,790
|
192,754
|
||||||||||||
Services
|
44,994
|
46,882
|
91,902
|
95,816
|
||||||||||||
Product
|
6,489
|
4,453
|
13,234
|
9,799
|
||||||||||||
Total cost of revenue
|
164,924
|
150,507
|
331,926
|
298,369
|
||||||||||||
Gross profit
|
365,657
|
306,320
|
726,084
|
613,479
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
73,482
|
62,218
|
150,060
|
121,373
|
||||||||||||
Selling and marketing
|
150,410
|
126,195
|
303,028
|
254,754
|
||||||||||||
General and administrative
|
57,075
|
53,133
|
115,942
|
106,105
|
||||||||||||
Total operating expenses
|
280,967
|
241,546
|
569,030
|
482,232
|
||||||||||||
Operating income
|
84,690
|
64,774
|
157,054
|
131,247
|
||||||||||||
Financial and other expense/(income), net
|
50
|
9,062
|
(436
|
)
|
12,456
|
|||||||||||
Income before tax
|
84,640
|
55,712
|
157,490
|
118,791
|
||||||||||||
Taxes on income
|
19,068
|
10,515
|
33,977
|
21,383
|
||||||||||||
Net income
|
$
|
65,572
|
$
|
45,197
|
$
|
123,513
|
$
|
97,408
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.03
|
$
|
0.72
|
$
|
1.94
|
$
|
1.54
|
||||||||
Diluted
|
$
|
0.99
|
$
|
0.68
|
$
|
1.86
|
$
|
1.46
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
63,806
|
63,108
|
63,775
|
63,096
|
||||||||||||
Diluted
|
66,274
|
66,512
|
66,563
|
66,618
|
NICE LTD. AND SUBSIDIARIES
|
CONSOLIDATED CASH FLOW STATEMENTS
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
65,572
|
$
|
45,197
|
$
|
123,513
|
$
|
97,408
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||
Depreciation and amortization
|
42,202
|
45,911
|
86,483
|
90,835
|
||||||||||||
Stock based compensation
|
43,109
|
30,979
|
91,293
|
62,434
|
||||||||||||
Amortization of premium and discount and accrued interest on marketable securities
|
1,254
|
2,066
|
5,072
|
5,997
|
||||||||||||
Deferred taxes, net
|
(10,248
|
)
|
(16,207
|
)
|
(12,044
|
)
|
(17,065
|
)
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Trade Receivables
|
(49,596
|
)
|
(2,783
|
)
|
(70,855
|
)
|
(22,467
|
)
|
||||||||
Prepaid expenses and other assets
|
(11,479
|
)
|
(14,103
|
)
|
(40,410
|
)
|
(24,963
|
)
|
||||||||
Trade payables
|
15,354
|
(4,912
|
)
|
24,432
|
4,792
|
|||||||||||
Accrued expenses and other current liabilities
|
(63,560
|
)
|
(11,064
|
)
|
(34,331
|
)
|
(12,429
|
)
|
||||||||
Operating lease right-of-use assets
|
3,941
|
4,442
|
7,883
|
8,923
|
||||||||||||
Deferred revenue
|
(15,718
|
)
|
(4,638
|
)
|
36,631
|
47,265
|
||||||||||
Operating lease liabilities
|
(6,997
|
)
|
(4,778
|
)
|
(11,994
|
)
|
(10,475
|
)
|
||||||||
Amortization of discount on debt
|
1,151
|
3,513
|
2,288
|
7,612
|
||||||||||||
Loss from extinguishment of debt
|
113
|
7,298
|
1,205
|
7,298
|
||||||||||||
Other
|
933
|
519
|
(424
|
)
|
515
|
|||||||||||
Net cash provided by operating activities
|
16,031
|
81,440
|
208,742
|
245,680
|
||||||||||||
Investing Activities
|
||||||||||||||||
Purchase of property and equipment
|
(5,301
|
)
|
(10,631
|
)
|
(14,885
|
)
|
(12,960
|
)
|
||||||||
Purchase of Investments
|
(123,536
|
)
|
(70,442
|
)
|
(221,802
|
)
|
(223,748
|
)
|
||||||||
Proceeds from Investments
|
79,924
|
112,527
|
181,590
|
167,104
|
||||||||||||
Capitalization of software development costs
|
(13,073
|
)
|
(11,159
|
)
|
(23,744
|
)
|
(21,275
|
)
|
||||||||
Other
|
276
|
-
|
276
|
444
|
||||||||||||
Payments for business and asset acquisitions, net of cash acquired
|
-
|
(129,306
|
)
|
-
|
(129,306
|
)
|
||||||||||
Net cash used in investing activities
|
(61,710
|
)
|
(109,011
|
)
|
(78,565
|
)
|
(219,741
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of share options
|
198
|
2,083
|
273
|
2,375
|
||||||||||||
Purchase of treasury shares
|
(34,070
|
)
|
(340
|
)
|
(97,912
|
)
|
(44,562
|
)
|
||||||||
Dividends paid to noncontrolling interest
|
(376
|
)
|
(801
|
)
|
(376
|
)
|
(801
|
)
|
||||||||
Repayment of debt
|
(2,017
|
)
|
(82,814
|
)
|
(20,110
|
)
|
(82,814
|
)
|
||||||||
Net cash provided by/(used in) financing activities
|
(36,265
|
)
|
(81,872
|
)
|
(118,125
|
)
|
(125,802
|
)
|
||||||||
Effect of exchange rates on cash and cash equivalents
|
(5,702
|
)
|
1,767
|
(6,639
|
)
|
1,048
|
||||||||||
Net change in cash, cash equivalents and restricted cash
|
(87,646
|
)
|
(107,676
|
)
|
5,413
|
(98,815
|
)
|
|||||||||
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
471,715
|
$
|
451,128
|
$
|
378,656
|
$
|
442,267
|
||||||||
Cash, cash equivalents and restricted cash, end of period
|
$
|
384,069
|
$
|
343,452
|
$
|
384,069
|
$
|
343,452
|
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
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
GAAP revenues
|
$
|
530,581
|
$
|
456,827
|
$
|
1,058,010
|
$
|
911,848
|
||||||||
Valuation adjustment on acquired deferred cloud revenue
|
-
|
1,978
|
-
|
3,800
|
||||||||||||
Valuation adjustment on acquired deferred services revenue
|
-
|
60
|
-
|
166
|
||||||||||||
Non-GAAP revenues
|
$
|
530,581
|
$
|
458,865
|
$
|
1,058,010
|
$
|
915,814
|
||||||||
GAAP cost of revenue
|
$
|
164,924
|
$
|
150,507
|
$
|
331,926
|
$
|
298,369
|
||||||||
Amortization of acquired intangible assets on cost of cloud
|
(18,623
|
)
|
(18,211
|
)
|
(37,287
|
)
|
(35,726
|
)
|
||||||||
Amortization of acquired intangible assets on cost of services
|
-
|
(1,226
|
)
|
(377
|
)
|
(2,451
|
)
|
|||||||||
Amortization of acquired intangible assets on cost of product
|
(258
|
)
|
(287
|
)
|
(534
|
)
|
(570
|
)
|
||||||||
Valuation adjustment on acquired deferred cost of cloud
|
13
|
26
|
28
|
51
|
||||||||||||
Cost of cloud revenue adjustment (1)
|
(1,741
|
)
|
(1,676
|
)
|
(4,070
|
)
|
(3,170
|
)
|
||||||||
Cost of services revenue adjustment (1)
|
(2,519
|
)
|
(1,646
|
)
|
(5,486
|
)
|
(4,081
|
)
|
||||||||
Cost of product revenue adjustment (1)
|
(134
|
)
|
(126
|
)
|
(266
|
)
|
(251
|
)
|
||||||||
Non-GAAP cost of revenue
|
$
|
141,662
|
$
|
127,361
|
$
|
283,934
|
$
|
252,171
|
||||||||
GAAP gross profit
|
$
|
365,657
|
$
|
306,320
|
$
|
726,084
|
$
|
613,479
|
||||||||
Gross profit adjustments
|
23,262
|
25,184
|
47,992
|
50,164
|
||||||||||||
Non-GAAP gross profit
|
$
|
388,919
|
$
|
331,504
|
$
|
774,076
|
$
|
663,643
|
||||||||
GAAP operating expenses
|
$
|
280,967
|
$
|
241,546
|
$
|
569,030
|
$
|
482,232
|
||||||||
Research and development (1)
|
(7,886
|
)
|
(4,111
|
)
|
(16,401
|
)
|
(8,168
|
)
|
||||||||
Sales and marketing (1)
|
(13,129
|
)
|
(6,911
|
)
|
(29,398
|
)
|
(17,819
|
)
|
||||||||
General and administrative (1)
|
(18,086
|
)
|
(18,688
|
)
|
(36,486
|
)
|
(31,375
|
)
|
||||||||
Amortization of acquired intangible assets
|
(6,963
|
)
|
(9,952
|
)
|
(15,774
|
)
|
(19,660
|
)
|
||||||||
Valuation adjustment on acquired deferred commission
|
52
|
55
|
105
|
108
|
||||||||||||
Non-GAAP operating expenses
|
$
|
234,955
|
$
|
201,939
|
$
|
471,076
|
$
|
405,318
|
||||||||
GAAP financial and other expense, net
|
$
|
50
|
$
|
9,062
|
$
|
(436
|
)
|
$
|
12,456
|
|||||||
Amortization of discount on debt and loss from extinguishment of debt
|
(1,264
|
)
|
(10,813
|
)
|
(3,493
|
)
|
(14,937
|
)
|
||||||||
Non-GAAP financial and other income, net
|
$
|
(1,214
|
)
|
$
|
(1,751
|
)
|
$
|
(3,929
|
)
|
$
|
(2,481
|
)
|
||||
GAAP taxes on income
|
$
|
19,068
|
$
|
10,515
|
$
|
33,977
|
$
|
21,383
|
||||||||
Tax adjustments re non-GAAP adjustments
|
12,911
|
16,529
|
29,262
|
32,344
|
||||||||||||
Non-GAAP taxes on income
|
$
|
31,979
|
$
|
27,044
|
$
|
63,239
|
$
|
53,727
|
||||||||
GAAP net income
|
$
|
65,572
|
$
|
45,197
|
$
|
123,513
|
$
|
97,408
|
||||||||
Valuation adjustment on acquired deferred revenue
|
-
|
2,038
|
-
|
3,966
|
||||||||||||
Valuation adjustment on acquired deferred cost of cloud revenue
|
(13
|
)
|
(26
|
)
|
(28
|
)
|
(51
|
)
|
||||||||
Amortization of acquired intangible assets
|
25,844
|
29,676
|
53,972
|
58,407
|
||||||||||||
Valuation adjustment on acquired deferred commission
|
(52
|
)
|
(55
|
)
|
(105
|
)
|
(108
|
)
|
||||||||
Share-based compensation (1)
|
43,495
|
31,251
|
92,107
|
62,957
|
||||||||||||
Acquisition related expenses (2)
|
-
|
1,907
|
-
|
1,907
|
||||||||||||
Amortization of discount on debt and loss from extinguishment of debt
|
1,264
|
10,813
|
3,493
|
14,937
|
||||||||||||
Tax adjustments re non-GAAP adjustments
|
(12,911
|
)
|
(16,529
|
)
|
(29,262
|
)
|
(32,344
|
)
|
||||||||
Non-GAAP net income
|
$
|
123,199
|
$
|
104,272
|
$
|
243,690
|
$
|
207,079
|
||||||||
GAAP diluted earnings per share
|
$
|
0.99
|
$
|
0.68
|
$
|
1.86
|
$
|
1.46
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
1.86
|
$
|
1.57
|
$
|
3.66
|
$
|
3.11
|
||||||||
Shares used in computing GAAP diluted earnings per share
|
66,274
|
66,512
|
66,563
|
66,618
|
||||||||||||
Shares used in computing non-GAAP diluted earnings per share
|
66,274
|
66,512
|
66,563
|
66,618
|
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
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Cost of cloud revenue
|
$
|
1,741
|
$
|
1,676
|
$
|
4,070
|
$
|
3,170
|
||||||||
Cost of services revenue
|
2,519
|
1,646
|
5,486
|
4,081
|
||||||||||||
Cost of product revenue
|
134
|
126
|
266
|
251
|
||||||||||||
Research and development
|
7,886
|
4,111
|
16,401
|
8,168
|
||||||||||||
Sales and marketing
|
13,129
|
6,911
|
29,398
|
17,819
|
||||||||||||
General and administrative
|
18,086
|
16,781
|
36,486
|
29,468
|
||||||||||||
$
|
43,495
|
$
|
31,251
|
$
|
92,107
|
$
|
62,957
|
(2)
|
Acquisition related expenses
|
Quarter ended
|
Year to date
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
Research and development
|
-
|
-
|
-
|
-
|
||||||||||||
Sales and marketing
|
-
|
-
|
-
|
-
|
||||||||||||
General and administrative
|
-
|
1,907
|
-
|
1,907
|
||||||||||||
-
|
1,907
|
-
|
1,907
|