GAAP
|
Non-GAAP
|
Revenue of $527 million, growth of 15.9% year-over-year
|
Revenue of $527 million, growth of 15.4% year-over-year
|
Cloud revenue of $295 million, growth of 29.2% year-over-year
|
Cloud revenue of $295 million, growth of 28.1% year-over-year
|
Gross margin of 68.3% compared to 67.5% last year
|
Gross margin of 73.0% compared to 72.7% last year
|
Operating income of $72 million compared to $66 million last year, growth of 8.9% year-over-year
|
Operating income of $149 million compared to $129 million last year, growth of 15.7% year-over-year
|
Operating margin of 13.7% compared to 14.6% last year
|
Operating margin of 28.3%, compared to 28.2% last year
|
Diluted EPS of $0.87 versus $0.78 last year
|
Diluted EPS of $1.80 versus $1.54 last year, growth of 16.9%
|
Operating cash flow increased 17.3% to $193 million compared to last year
|
NICE LTD. AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
U.S. dollars in thousands
|
March 31,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
471,715
|
$
|
378,656
|
||||
Short-term investments
|
1,019,092
|
1,046,095
|
||||||
Trade receivables
|
416,716
|
395,583
|
||||||
Debt hedge option
|
154,464
|
292,940
|
||||||
Prepaid expenses and other current assets
|
205,248
|
184,604
|
||||||
Total current assets
|
2,267,235
|
2,297,878
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
151,455
|
145,654
|
||||||
Deferred tax assets
|
62,300
|
55,246
|
||||||
Other intangible assets, net
|
266,542
|
295,378
|
||||||
Operating lease right-of-use assets
|
81,031
|
85,055
|
||||||
Goodwill
|
1,602,493
|
1,606,756
|
||||||
Prepaid expenses and other long-term assets
|
229,573
|
224,445
|
||||||
Total long-term assets
|
2,393,394
|
2,412,534
|
||||||
TOTAL ASSETS
|
$
|
4,660,629
|
$
|
4,710,412
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
45,197
|
$
|
36,121
|
||||
Deferred revenues and advances from customers
|
384,344
|
330,459
|
||||||
Current maturities of operating leases
|
19,028
|
19,514
|
||||||
Debt
|
241,190
|
395,946
|
||||||
Accrued expenses and other liabilities
|
516,630
|
487,547
|
||||||
Total current liabilities
|
1,206,389
|
1,269,587
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
63,981
|
66,606
|
||||||
Operating leases
|
76,616
|
81,185
|
||||||
Deferred tax liabilities
|
6,865
|
7,429
|
||||||
Debt
|
454,106
|
429,267
|
||||||
Other long-term liabilities
|
17,958
|
18,379
|
||||||
Total long-term liabilities
|
619,526
|
602,866
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
2,821,750
|
2,825,085
|
||||||
Non-controlling interests
|
12,964
|
12,874
|
||||||
Total equity
|
2,834,714
|
2,837,959
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,660,629
|
$
|
4,710,412
|
NICE LTD. AND SUBSIDIARIES
|
|||
CONSOLIDATED STATEMENTS OF INCOME
|
|||
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Revenue:
|
||||||||
Cloud
|
$
|
294,592
|
$
|
228,081
|
||||
Services
|
156,974
|
161,791
|
||||||
Product
|
75,863
|
65,149
|
||||||
Total revenue
|
527,429
|
455,021
|
||||||
Cost of revenue:
|
||||||||
Cloud
|
113,349
|
93,582
|
||||||
Services
|
46,908
|
48,934
|
||||||
Product
|
6,745
|
5,346
|
||||||
Total cost of revenue
|
167,002
|
147,862
|
||||||
Gross profit
|
360,427
|
307,159
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
76,578
|
59,155
|
||||||
Selling and marketing
|
152,618
|
128,559
|
||||||
General and administrative
|
58,867
|
52,972
|
||||||
Total operating expenses
|
288,063
|
240,686
|
||||||
Operating income
|
72,364
|
66,473
|
||||||
Financial and other expense/(income), net
|
(486
|
)
|
3,394
|
|||||
Income before tax
|
72,850
|
63,079
|
||||||
Taxes on income
|
14,909
|
10,868
|
||||||
Net income
|
$
|
57,941
|
$
|
52,211
|
||||
Basic
|
$
|
0.91
|
$
|
0.83
|
||||
Diluted
|
$
|
0.87
|
$
|
0.78
|
||||
Weighted average shares outstanding:
|
||||||||
Basic
|
63,736
|
63,085
|
||||||
Diluted
|
66,853
|
66,723
|
NICE LTD. AND SUBSIDIARIES
|
|||
CONSOLIDATED CASH FLOW STATEMENTS
|
|||
U.S. dollars in thousands
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
57,941
|
$
|
52,211
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
44,281
|
44,924
|
||||||
Stock based compensation
|
48,184
|
31,455
|
||||||
Amortization of premium and discount and accrued interest on marketable securities
|
3,818
|
3,931
|
||||||
Deferred taxes, net
|
(1,796
|
)
|
(858
|
)
|
||||
Changes in operating assets and liabilities:
|
||||||||
Trade Receivables, net
|
(21,259
|
)
|
(19,684
|
)
|
||||
Prepaid expenses and other current assets
|
(28,931
|
)
|
(10,860
|
)
|
||||
Operating lease right-of-use assets
|
3,942
|
4,481
|
||||||
Trade payables
|
9,078
|
9,704
|
||||||
Accrued expenses and other current liabilities
|
29,229
|
(1,365
|
)
|
|||||
Deferred revenue
|
52,349
|
51,903
|
||||||
Operating lease liabilities
|
(4,997
|
)
|
(5,697
|
)
|
||||
Amortization of discount on long term debt
|
1,137
|
4,099
|
||||||
Loss from extinguishment of debt
|
1,092
|
(5
|
)
|
|||||
Other
|
(1,357
|
)
|
-
|
|||||
Net cash provided by operating activities
|
192,711
|
164,239
|
||||||
Investing Activities
|
||||||||
Purchase of property and equipment
|
(9,584
|
)
|
(2,329
|
)
|
||||
Purchase of Investments
|
(98,266
|
)
|
(153,306
|
)
|
||||
Proceeds from Investments
|
101,666
|
54,577
|
||||||
Capitalization of software development costs
|
(10,671
|
)
|
(10,116
|
)
|
||||
Proceeds from business and asset acquisitions adjustments
|
-
|
444
|
||||||
Net cash used in investing activities
|
(16,855
|
)
|
(110,730
|
)
|
||||
Financing Activities
|
||||||||
Proceeds from issuance of shares upon exercise of share options
|
75
|
292
|
||||||
Purchase of treasury shares
|
(63,842
|
)
|
(44,222
|
)
|
||||
Repayment of debt
|
(18,093
|
)
|
-
|
|||||
Net cash provided by/(used in) financing activities
|
(81,860
|
)
|
(43,930
|
)
|
||||
Effect of exchange rates on cash and cash equivalents
|
(937
|
)
|
(718
|
)
|
||||
Net change in cash and cash equivalents
|
93,059
|
8,861
|
||||||
Cash and cash equivalents, beginning of period
|
$
|
378,656
|
$
|
442,267
|
||||
Cash and cash equivalents, end of period
|
$
|
471,715
|
$
|
451,128
|
NICE LTD. AND SUBSIDIARIES
|
|||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|||
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
GAAP revenues
|
$
|
527,429
|
$
|
455,021
|
||||
Valuation adjustment on acquired deferred cloud revenue
|
-
|
1,823
|
||||||
Valuation adjustment on acquired deferred services revenue
|
-
|
106
|
||||||
Non-GAAP revenues
|
$
|
527,429
|
$
|
456,950
|
||||
GAAP cost of revenue
|
$
|
167,002
|
$
|
147,862
|
||||
Amortization of acquired intangible assets on cost of cloud
|
(18,665
|
)
|
(17,515
|
)
|
||||
Amortization of acquired intangible assets on cost of services
|
(377
|
)
|
(1,225
|
)
|
||||
Amortization of acquired intangible assets on cost of product
|
(276
|
)
|
(283
|
)
|
||||
Valuation adjustment on acquired deferred cost of cloud
|
15
|
25
|
||||||
Cost of cloud revenue adjustment (1)
|
(2,324
|
)
|
(1,494
|
)
|
||||
Cost of services revenue adjustment (1)
|
(2,967
|
)
|
(2,435
|
)
|
||||
Cost of product revenue adjustment (1)
|
(132
|
)
|
(125
|
)
|
||||
Non-GAAP cost of revenue
|
$
|
142,276
|
$
|
124,810
|
||||
GAAP gross profit
|
$
|
360,427
|
$
|
307,159
|
||||
Gross profit adjustments
|
24,726
|
24,981
|
||||||
Non-GAAP gross profit
|
$
|
385,153
|
$
|
332,140
|
||||
GAAP operating expenses
|
$
|
288,063
|
$
|
240,686
|
||||
Research and development (1)
|
(8,515
|
)
|
(4,057
|
)
|
||||
Sales and marketing (1)
|
(16,269
|
)
|
(10,908
|
)
|
||||
General and administrative (1)
|
(18,400
|
)
|
(12,687
|
)
|
||||
Amortization of acquired intangible assets
|
(8,811
|
)
|
(9,709
|
)
|
||||
Valuation adjustment on acquired deferred commission
|
53
|
53
|
||||||
Non-GAAP operating expenses
|
$
|
236,121
|
$
|
203,378
|
||||
GAAP financial and other (income)/expense, net
|
$
|
(486
|
)
|
$
|
3,394
|
|||
Amortization of discount and loss of extinguishment on debt
|
(2,229
|
)
|
(4,125
|
)
|
||||
Non-GAAP financial and other income, net
|
$
|
(2,715
|
)
|
$
|
(731
|
)
|
||
GAAP taxes on income
|
$
|
14,909
|
$
|
10,868
|
||||
Tax adjustments re non-GAAP adjustments
|
16,351
|
15,814
|
||||||
Non-GAAP taxes on income
|
$
|
31,260
|
$
|
26,682
|
NICE LTD. AND SUBSIDIARIES
|
|||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
|||
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
GAAP net income
|
$
|
57,941
|
$
|
52,211
|
||||
Valuation adjustment on acquired deferred revenue
|
-
|
1,929
|
||||||
Valuation adjustment on acquired deferred cost of cloud revenue
|
(15
|
)
|
(25
|
)
|
||||
Amortization of acquired intangible assets
|
28,129
|
28,732
|
||||||
Valuation adjustment on acquired deferred commission
|
(53
|
)
|
(53
|
)
|
||||
Share-based compensation (1)
|
48,607
|
31,706
|
||||||
Amortization of discount and loss of extinguishment on debt
|
2,229
|
4,125
|
||||||
Tax adjustments re non-GAAP adjustments
|
(16,351
|
)
|
(15,814
|
)
|
||||
Non-GAAP net income
|
$
|
120,487
|
$
|
102,811
|
||||
GAAP diluted earnings per share
|
$
|
0.87
|
$
|
0.78
|
||||
Non-GAAP diluted earnings per share
|
$
|
1.80
|
$
|
1.54
|
||||
Shares used in computing GAAP diluted earnings per share
|
66,853
|
66,723
|
||||||
Shares used in computing non-GAAP diluted earnings per share
|
66,853
|
66,723
|
NICE LTD. AND SUBSIDIARIES
|
||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
||||||
U.S. dollars in thousands
|
(1)
|
Share-based Compensation
|
|||||||||
Quarter ended
|
||||||||||
March 31,
|
||||||||||
2022
|
2021
|
|||||||||
Cost of cloud revenue
|
$
|
2,324
|
$
|
1,494
|
||||||
Cost of services revenue
|
2,967
|
2,435
|
||||||||
Cost of product revenue
|
132
|
125
|
||||||||
Research and development
|
8,515
|
4,057
|
||||||||
Sales and marketing
|
16,269
|
10,908
|
||||||||
General and administrative
|
18,400
|
12,687
|
||||||||
$
|
48,607
|
$
|
31,706
|