GAAP
|
Non-GAAP
|
Revenue of $515 million, growth of 18.6% year-over-year
|
Revenue of $515 million, growth of 17.6% year-over-year
|
Cloud revenue of $285 million, growth of 30.2% year-over-year
|
Cloud revenue of $285 million, growth of 28.1% year-over-year
|
Gross margin of 67.9% compared to 66.4% last year
|
Gross margin of 73.0% compared to 72.2% last year
|
Operating income of $65 million compared to $65 million last year
|
Operating income of $146 million compared to $132 million last year, growth of 10.5% year-over-year
|
Operating margin of 12.6% compared to 15.0% last year
|
Operating margin of 28.2%, compared to 30.1% last year
|
Diluted EPS of $0.76 versus $0.83 last year
|
Diluted EPS of $1.73 versus $1.61 last year, growth of 7.5%
|
GAAP
|
Non-GAAP
|
Revenue of $1,921 million, growth of 16.6% year-over-year
|
Revenue of $1,926 million, growth of 16.2% year-over-year
|
Cloud revenue of $1,019 million, growth of 31.0% year-over-year
|
Cloud revenue of $1,023 million, growth of 30.1% year-over-year
|
Gross margin of 67.5% compared to 65.9% last year
|
Gross margin of 72.6% compared to 71.3% last year
|
Operating income of $264 million compared to $242 million last year
|
Operating income of $544 million compared to $470 million last year, growth of 15.6% year-over-year
|
Operating margin of 13.7% compared to 14.7% last year
|
Operating margin of 28.2% compared to 28.4% last year
|
Diluted EPS of $2.98 versus $2.98 last year
|
Diluted EPS of $6.52 versus $5.73 last year, 13.8% growth year-over-year
|
NICE LTD. AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
U.S. dollars in thousands
|
December 31,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
378,656
|
$
|
442,267
|
||||
Short-term investments
|
1,046,095
|
1,021,613
|
||||||
Trade receivables
|
395,583
|
303,100
|
||||||
Prepaid expenses and other current assets
|
436,495
|
175,340
|
||||||
Total current assets
|
2,256,829
|
1,942,320
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
145,654
|
137,785
|
||||||
Deferred tax assets
|
48,900
|
32,735
|
||||||
Other intangible assets, net
|
295,378
|
366,003
|
||||||
Operating lease right-of-use assets
|
85,055
|
97,162
|
||||||
Goodwill
|
1,606,756
|
1,503,252
|
||||||
Other long-term assets
|
224,445
|
153,660
|
||||||
Total long-term assets
|
2,406,188
|
2,290,597
|
||||||
TOTAL ASSETS
|
$
|
4,663,017
|
$
|
4,232,917
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
36,121
|
$
|
33,132
|
||||
Deferred revenues and advances from customers
|
330,459
|
311,851
|
||||||
Current maturities of operating leases
|
19,514
|
22,412
|
||||||
Debt
|
348,551
|
259,881
|
||||||
Accrued expenses and other liabilities
|
487,547
|
417,174
|
||||||
Total current liabilities
|
1,222,192
|
1,044,450
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
66,606
|
36,295
|
||||||
Operating leases
|
81,185
|
92,262
|
||||||
Deferred tax liabilities
|
7,429
|
32,109
|
||||||
Debt
|
429,267
|
421,337
|
||||||
Other long-term liabilities
|
18,379
|
17,980
|
||||||
Total long-term liabilities
|
602,866
|
599,983
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
2,825,085
|
2,563,910
|
||||||
Non-controlling interests
|
12,874
|
24,574
|
||||||
Total shareholders' equity
|
2,837,959
|
2,588,484
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,663,017
|
$
|
4,232,917
|
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,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Audited
|
|||||||||||||
Revenue:
|
||||||||||||||||
Cloud
|
$
|
285,201
|
$
|
219,036
|
$
|
1,018,624
|
$
|
777,331
|
||||||||
Services
|
166,376
|
174,003
|
660,083
|
687,532
|
||||||||||||
Product
|
63,896
|
41,542
|
242,443
|
183,153
|
||||||||||||
Total revenue
|
515,473
|
434,581
|
1,921,150
|
1,648,016
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Cloud
|
112,127
|
91,357
|
410,671
|
339,985
|
||||||||||||
Services
|
47,341
|
49,245
|
191,137
|
199,803
|
||||||||||||
Product
|
5,777
|
5,453
|
22,648
|
22,164
|
||||||||||||
Total cost of revenue
|
165,245
|
146,055
|
624,456
|
561,952
|
||||||||||||
Gross profit
|
350,228
|
288,526
|
1,296,694
|
1,086,064
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
75,332
|
56,163
|
271,187
|
218,182
|
||||||||||||
Selling and marketing
|
149,662
|
121,819
|
536,192
|
445,102
|
||||||||||||
General and administrative
|
60,167
|
45,421
|
225,406
|
180,733
|
||||||||||||
Total operating expenses
|
285,161
|
223,403
|
1,032,785
|
844,017
|
||||||||||||
Operating income
|
65,067
|
65,123
|
263,909
|
242,047
|
||||||||||||
Financial and other expense, net
|
7,696
|
2,600
|
23,290
|
4,859
|
||||||||||||
Income before tax
|
57,371
|
62,523
|
240,619
|
237,188
|
||||||||||||
Taxes on income
|
6,210
|
7,549
|
41,396
|
40,842
|
||||||||||||
Net income
|
$
|
51,161
|
$
|
54,974
|
$
|
199,223
|
$
|
196,346
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.81
|
$
|
0.87
|
$
|
3.15
|
$
|
3.13
|
||||||||
Diluted
|
$
|
0.76
|
$
|
0.83
|
$
|
2.98
|
$
|
2.98
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
63,382
|
62,967
|
63,189
|
62,710
|
||||||||||||
Diluted
|
67,245
|
66,600
|
66,896
|
65,956
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
CONSOLIDATED CASH FLOW STATEMENTS
|
|||||||
U.S. dollars in thousands
|
Quarter ended
|
Year to date
|
|||||||||||||||
Dec 31,
|
Dec 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Audited
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
51,161
|
$
|
54,974
|
$
|
199,223
|
$
|
196,346
|
||||||||
Depreciation and amortization
|
47,350
|
46,893
|
184,092
|
182,026
|
||||||||||||
Stock based compensation
|
49,968
|
32,828
|
153,030
|
101,667
|
||||||||||||
Amortization of premium and discount and accrued interest on marketable securities
|
1,855
|
157
|
11,867
|
(633
|
)
|
|||||||||||
Deferred taxes, net
|
(2,768
|
)
|
(16,588
|
)
|
(32,970
|
)
|
(33,241
|
)
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Trade Receivables
|
(40,149
|
)
|
(5,343
|
)
|
(85,778
|
)
|
22,245
|
|||||||||
Prepaid expenses and other assets
|
(49,751
|
)
|
(49,028
|
)
|
(85,970
|
)
|
(80,665
|
)
|
||||||||
Trade payables
|
9,254
|
(1,137
|
)
|
(389
|
)
|
4,094
|
||||||||||
Accrued expenses and other current liabilities
|
41,578
|
51,459
|
64,179
|
14,875
|
||||||||||||
Operating lease right-of-use assets, net
|
2,758
|
5,241
|
15,075
|
18,167
|
||||||||||||
Deferred revenue
|
(2,276
|
)
|
48,585
|
30,770
|
63,202
|
|||||||||||
Operating lease liabilities
|
(3,206
|
)
|
(5,272
|
)
|
(18,011
|
)
|
(19,569
|
)
|
||||||||
Amortization of discount on debt
|
2,946
|
5,352
|
14,469
|
13,297
|
||||||||||||
Loss in respect of extinguishment of debt
|
5,893
|
-
|
13,969
|
-
|
||||||||||||
Other
|
(1,955
|
)
|
(1,251
|
)
|
(1,740
|
)
|
(1,505
|
)
|
||||||||
Net cash provided by operating activities
|
112,658
|
166,870
|
461,816
|
480,306
|
||||||||||||
Investing Activities
|
||||||||||||||||
Purchase of property and equipment
|
(3,658
|
)
|
(2,519
|
)
|
(24,771
|
)
|
(24,186
|
)
|
||||||||
Purchase of Investments
|
(40,233
|
)
|
(277,038
|
)
|
(322,129
|
)
|
(583,115
|
)
|
||||||||
Proceeds from Investments
|
44,681
|
45,444
|
270,645
|
328,593
|
||||||||||||
Capitalization of software development costs
|
(10,453
|
)
|
(10,322
|
)
|
(42,440
|
)
|
(39,098
|
)
|
||||||||
Payments for business and asset acquisitions, net of cash acquired
|
360
|
-
|
(142,804
|
)
|
(147,261
|
)
|
||||||||||
Net cash used in investing activities
|
(9,303
|
)
|
(244,435
|
)
|
(261,499
|
)
|
(465,067
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of share options
|
942
|
688
|
4,426
|
8,865
|
||||||||||||
Purchase of treasury shares
|
(24,272
|
)
|
(20,671
|
)
|
(73,180
|
)
|
(48,272
|
)
|
||||||||
Dividends paid to noncontrolling interest
|
(953
|
)
|
-
|
(1,754
|
)
|
-
|
||||||||||
Capital Lease payments
|
-
|
-
|
-
|
(177
|
)
|
|||||||||||
Purchase of subsidiaries shares from non-controlling interest
|
(14,000
|
)
|
-
|
(14,000
|
)
|
-
|
||||||||||
Proceeds from issuance of exchangeable notes
|
-
|
(48
|
)
|
-
|
451,421
|
|||||||||||
Repayment of debt
|
(83,993
|
)
|
(215,000
|
)
|
(177,308
|
)
|
(215,000
|
)
|
||||||||
Net cash provided by/(used in) financing activities
|
(122,276
|
)
|
(235,031
|
)
|
(261,816
|
)
|
196,837
|
|||||||||
Effect of exchange rates on cash and cash equivalents
|
(119
|
)
|
1,747
|
(2,112
|
)
|
1,868
|
||||||||||
Net change in cash and cash equivalents
|
(19,040
|
)
|
(310,849
|
)
|
(63,611
|
)
|
213,944
|
|||||||||
Cash and cash equivalents, beginning of period
|
$
|
397,696
|
$
|
753,116
|
$
|
442,267
|
$
|
228,323
|
||||||||
Cash and cash equivalents, end of period
|
$
|
378,656
|
$
|
442,267
|
$
|
378,656
|
$
|
442,267
|
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,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
GAAP revenues
|
$
|
515,473
|
$
|
434,581
|
$
|
1,921,150
|
$
|
1,648,016
|
||||||||
Valuation adjustment on acquired deferred cloud revenue
|
-
|
3,679
|
4,372
|
8,866
|
||||||||||||
Valuation adjustment on acquired deferred services revenue
|
-
|
149
|
175
|
230
|
||||||||||||
Non-GAAP revenues
|
$
|
515,473
|
$
|
438,409
|
$
|
1,925,697
|
$
|
1,657,112
|
||||||||
GAAP cost of revenue
|
$
|
165,245
|
$
|
146,055
|
$
|
624,456
|
$
|
561,952
|
||||||||
Amortization of acquired intangible assets on cost of cloud
|
(18,796
|
)
|
(18,012
|
)
|
(72,015
|
)
|
(66,434
|
)
|
||||||||
Amortization of acquired intangible assets on cost of services
|
(669
|
)
|
(1,225
|
)
|
(4,228
|
)
|
(4,566
|
)
|
||||||||
Amortization of acquired intangible assets on cost of product
|
(277
|
)
|
(1,073
|
)
|
(1,130
|
)
|
(4,467
|
)
|
||||||||
Valuation adjustment on acquired deferred cost of cloud
|
21
|
194
|
97
|
931
|
||||||||||||
Cost of cloud revenue adjustment (1)
|
(2,661
|
)
|
(1,457
|
)
|
(7,949
|
)
|
(4,058
|
)
|
||||||||
Cost of services revenue adjustment (1)
|
(3,597
|
)
|
(2,593
|
)
|
(10,513
|
)
|
(7,550
|
)
|
||||||||
Cost of product revenue adjustment (1)
|
(185
|
)
|
(131
|
)
|
(595
|
)
|
(336
|
)
|
||||||||
Non-GAAP cost of revenue
|
$
|
139,081
|
$
|
121,758
|
$
|
528,123
|
$
|
475,472
|
||||||||
GAAP gross profit
|
$
|
350,228
|
$
|
288,526
|
$
|
1,296,694
|
$
|
1,086,064
|
||||||||
Gross profit adjustments
|
26,164
|
28,125
|
100,880
|
95,576
|
||||||||||||
Non-GAAP gross profit
|
$
|
376,392
|
$
|
316,651
|
$
|
1,397,574
|
$
|
1,181,640
|
||||||||
GAAP operating expenses
|
$
|
285,161
|
$
|
223,403
|
$
|
1,032,785
|
$
|
844,017
|
||||||||
Research and development (1)
|
(9,980
|
)
|
(4,324
|
)
|
(25,221
|
)
|
(11,877
|
)
|
||||||||
Sales and marketing (1,2)
|
(14,495
|
)
|
(10,769
|
)
|
(42,021
|
)
|
(30,392
|
)
|
||||||||
General and administrative (1,2)
|
(19,403
|
)
|
(13,775
|
)
|
(70,776
|
)
|
(52,014
|
)
|
||||||||
Amortization of acquired intangible assets
|
(10,538
|
)
|
(9,719
|
)
|
(41,308
|
)
|
(38,670
|
)
|
||||||||
Valuation adjustment on acquired deferred commission
|
54
|
89
|
215
|
195
|
||||||||||||
Non-GAAP operating expenses
|
$
|
230,799
|
$
|
184,905
|
$
|
853,674
|
$
|
711,259
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
|||||||
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
GAAP financial and other expense, net
|
$
|
(7,696
|
)
|
$
|
(2,600
|
)
|
$
|
(23,290
|
)
|
$
|
(4,859
|
)
|
||||
Amortization of discount and loss of extinguishment on debt
|
8,874
|
5,353
|
28,279
|
13,297
|
||||||||||||
Non-GAAP financial and other income, net
|
$
|
1,178
|
$
|
2,753
|
$
|
4,989
|
$
|
8,438
|
||||||||
GAAP taxes on income
|
$
|
6,210
|
$
|
7,549
|
$
|
41,396
|
$
|
40,842
|
||||||||
Tax adjustments re non-GAAP adjustments
|
23,898
|
20,056
|
71,157
|
59,757
|
||||||||||||
Non-GAAP taxes on income
|
$
|
30,108
|
$
|
27,605
|
$
|
112,553
|
$
|
100,599
|
||||||||
GAAP net income
|
$
|
51,161
|
$
|
54,974
|
$
|
199,223
|
$
|
196,346
|
||||||||
Valuation adjustment on acquired deferred revenue
|
-
|
3,828
|
4,547
|
9,096
|
||||||||||||
Valuation adjustment on acquired deferred cost of cloud revenue
|
(21
|
)
|
(194
|
)
|
(97
|
)
|
(931
|
)
|
||||||||
Amortization of acquired intangible assets
|
30,280
|
30,029
|
118,681
|
114,137
|
||||||||||||
Valuation adjustment on acquired deferred commission
|
(54
|
)
|
(89
|
)
|
(215
|
)
|
(195
|
)
|
||||||||
Share-based compensation (1)
|
50,321
|
33,049
|
154,213
|
102,304
|
||||||||||||
Acquisition related expenses (2)
|
-
|
-
|
2,862
|
3,923
|
||||||||||||
Amortization of discount and loss of extinguishment on debt
|
8,874
|
5,353
|
28,279
|
13,297
|
||||||||||||
Tax adjustments re non-GAAP adjustments
|
(23,898
|
)
|
(20,056
|
)
|
(71,157
|
)
|
(59,757
|
)
|
||||||||
Non-GAAP net income
|
$
|
116,663
|
$
|
106,894
|
$
|
436,336
|
$
|
378,220
|
||||||||
GAAP diluted earnings per share
|
$
|
0.76
|
$
|
0.83
|
$
|
2.98
|
$
|
2.98
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
1.73
|
$
|
1.61
|
$
|
6.52
|
$
|
5.73
|
||||||||
Shares used in computing GAAP diluted earnings per share
|
67,245
|
66,600
|
66,895
|
65,956
|
||||||||||||
Shares used in computing non-GAAP diluted earnings per share
|
67,245
|
66,600
|
66,895
|
65,956
|
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,
|
||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
||||||||||||||||
Cost of cloud revenue
|
2,661
|
1,457
|
7,949
|
4,058
|
|||||||||||||||
Cost of services revenue
|
3,597
|
2,593
|
10,513
|
7,550
|
|||||||||||||||
Cost of product revenue
|
185
|
131
|
595
|
336
|
|||||||||||||||
Research and development
|
9,980
|
4,324
|
25,221
|
11,877
|
|||||||||||||||
Sales and marketing
|
14,495
|
10,769
|
42,021
|
30,262
|
|||||||||||||||
General and administrative
|
19,403
|
13,775
|
67,914
|
48,221
|
|||||||||||||||
$
|
50,321
|
$
|
33,049
|
$
|
154,213
|
$
|
102,304
|
||||||||||||
(2)
|
Acquisition related expenses
|
||||||||||||||||||
Quarter ended
|
Year to date
|
||||||||||||||||||
December 31,
|
December 31,
|
||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
||||||||||||||||
Sales and marketing
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
130
|
|||||||||||
General and administrative
|
-
|
-
|
2,862
|
3,793
|
|||||||||||||||
$
|
-
|
$
|
-
|
$
|
2,862
|
$
|
3,923
|