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Published: 2021-11-12 06:10:38 ET
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EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1



NICE Reports Accelerated Total Revenue Growth of 20% For the Third Quarter
of 2021 and 28% Growth in Cloud Revenue

Company Reports Double-Digit Revenue Growth Across All Regions and Business Segments

Company Raises Guidance for Total Revenue and EPS for Full Year 2021

Hoboken, New Jersey, November 11, 2021 - NICE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2021.

Third Quarter 2021 Financial Highlights

GAAP
Non-GAAP
Revenue of $490 million, growth of 20% year-over-year
Revenue of $494 million, growth of 20% year-over-year
Cloud revenue of $258 million, growth of 28% year-over-year
Cloud revenue of $262 million, growth of 29% year-over-year
Gross margin of 67.2% compared to 65.8% last year
Gross margin of 72.3% compared to 71.0% last year
Operating income of $64 million compared to $62 million last year, growth of 4% year-over-year
Operating income of $140.0 million compared to $116.8 million last year, growth of 20%
Operating margin of 13.1% compared to 15.1% last year
Operating margin of 28.3%, compared to 28.3% last year
Diluted EPS of $0.70 versus $0.76 last year
Diluted EPS of $1.68 versus $1.41 last year, growth of 19%
Operating cash flow increased 4% year-over-year to $103.5 million
  

“We are pleased to report another quarter of accelerated top line growth as total revenue increased 20% in the third quarter compared to the same period last year,” said Barak Eilam, CEO of NICE. “The excellent results across the board in Q3 reflect our leadership and the strategic, central role we play amid four key dynamics that are taking place in our industry – cloud, digital, AI and the shift to platforms.”

Mr. Eilam continued, “We are witnessing continued strong momentum in the cloud with 28% growth in cloud revenue in Q3, as well as clear market leadership with over 725,000 agents globally on CXone. Digital revenues grew 78% in the third quarter, we tripled the number of deals in Enlighten driven by demand for AI and we are continuing to see increasing competitive replacements of legacy incumbent providers as more customers are taking a platform approach to their CX.  Much of the platform success is happening at the high end of the market where we witnessed an increase of 46% in large enterprise deals.”

GAAP Financial Highlights for the Third Quarter Ended September 30:
 
Revenues: Third quarter 2021 total revenues increased 19.7% to $490.4 million compared to $409.8 million for the third quarter of 2020.

Gross Profit: Third quarter 2021 gross profit and gross margin increased to $329.6 million and 67.2%, respectively, compared to $269.7 million and 65.8%, respectively, for the third quarter of 2020.

Operating Income: Third quarter 2021 operating income increased 3.6% to $64.2 million compared to $62.0 million, for the third quarter of 2020. Third quarter operating margin decreased to 13.1% compared to 15.1%, for the third quarter of 2020.

Net Income: Third quarter 2021 net income totaled $47.2 million compared to $50.7 for the third quarter of 2020. Net income margin decreased to 9.6% compared to 12.4% for the third quarter of 2020.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the Third quarter of 2021 decreased to $0.70, compared to $0.76 in the third quarter of 2020.

Operating Cash Flow and Cash Balance: Third quarter 2021 operating cash flow was $103.5 million. In the third quarter, $4.3 million was used for share repurchases. As of September 30, 2021, total cash and cash equivalents, and short-term investments were $1,455.5 million, and total debt was $607.3 million.
 
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
 
Revenues: Third quarter 2021 Non-GAAP total revenues increased 19.9% to $494.4 million compared to $412.4 million for the third quarter of 2020.

Gross Profit: Third quarter 2021 Non-GAAP gross profit and gross margin increased to $357.5 million and 72.3%, respectively, compared to $292.9 million and 71.0%, respectively, for the third quarter of 2020.

Operating Income: Third quarter 2021 Non-GAAP operating income increased 19.9% to $140.0 million compared to $116.8 million for the third quarter of 2020. Non-GAAP operating margin was 28.3%, compared to 28.3% last year.

Net Income: Third quarter 2021 Non-GAAP net income increased 20.3% to $112.6 million from $93.6 million for the third quarter of 2020. Non-GAAP net income margin was 22.8%, compared to 22.7% last year.

Fully Diluted Earnings Per Share: Third quarter 2021 Non-GAAP fully diluted earnings per share increased 19.1% to $1.68, compared to $1.41 for the third quarter of 2020.
 
Raising Full Year 2021 Guidance:
 
Company raised full year 2021 Non-GAAP total revenue guidance, which is now expected to be in a range of $1,899 million to $1,909 million.

Company raised full year 2021 Non-GAAP fully diluted earnings per share guidance, which is now expected to be in a range of $6.43 to $6.53.
 

 
Quarterly Results Conference Call

NICE management will host its earnings conference call today November 11th, 2021 at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial into the following numbers: United States 1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429, Israel 1-809-406-247.

The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event.

Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments. Business combination accounting rules require the recognition of a legal performance obligation related to a revenue arrangement of an acquired entity as a liability. The amount assigned to such liability should be based on its fair value at the date of acquisition. The Non-GAAP adjustment for a revenue arrangement is intended to reflect the full amount of such revenue. The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Investors
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET

Media Contact
Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@nice.com          

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.


Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
 
Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapidly changing technology, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, uncertainty related to COVID-19 and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).
 
You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this presentation speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.
 
###
 


NICE LTD. AND SUBSIDIARIES
          
CONDENSED CONSOLIDATED BALANCE SHEETS
          
U.S. dollars in thousands
          

   
Sep 30,
    
December 31,
  
   
2021
    
2020
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
397,696
    
$
442,267
  
Short-term investments
    
1,057,790
      
1,021,613
  
Trade receivables
    
355,136
      
303,100
  
Prepaid expenses and other current assets
    
170,513
      
175,340
  
                 
Total current assets
    
1,981,135
      
1,942,320
  
                 
LONG-TERM ASSETS:
                
Property and equipment, net
    
147,263
      
137,785
  
Deferred tax assets
    
41,799
      
32,735
  
Other intangible assets, net
    
326,861
      
366,003
  
Operating lease right-of-use assets
    
87,800
      
97,162
  
Goodwill
    
1,597,411
      
1,503,252
  
Other long-term assets
    
191,147
      
153,660
  
                 
Total long-term assets
    
2,392,281
      
2,290,597
  
                 
TOTAL ASSETS
  
$
4,373,416
    
$
4,232,917
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Trade payables
  
$
27,053
    
$
33,132
  
Deferred revenues and advances from customers
    
326,673
      
311,851
  
Current maturities of operating leases
    
20,371
      
22,412
  
Debt
    
180,071
      
259,881
  
Accrued expenses and other liabilities
    
446,614
      
417,174
  
                 
Total current liabilities
    
1,000,782
      
1,044,450
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues and advances from customers
    
66,847
      
36,295
  
Operating leases
    
82,716
      
92,262
  
Deferred tax liabilities
    
6,960
      
32,109
  
Debt
    
427,271
      
421,337
  
Other long-term liabilities
    
17,504
      
17,980
  
                 
Total long-term liabilities
    
601,298
      
599,983
  
                 
SHAREHOLDERS' EQUITY
                
Nice Ltd's equity
    
2,747,802
      
2,563,910
  
Non-controlling interests
    
23,534
      
24,574
  
                 
Total shareholders' equity
    
2,771,336
      
2,588,484
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
4,373,416
    
$
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
  
   
Sep 30,
    
Sep 30,
  
   
2021
    
2020
    
2021
    
2020
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Revenue:
                        
Cloud
  
$
258,398
    
$
201,723
    
$
729,203
    
$
558,295
  
Services
    
164,783
      
169,358
      
493,707
      
513,529
  
Product
    
67,223
      
38,746
      
178,546
      
141,611
  
Total revenue
    
490,404
      
409,827
      
1,401,456
      
1,213,435
  
                                 
Cost of revenue:
                                
Cloud
    
105,790
      
87,637
      
298,544
      
248,628
  
Services
    
47,980
      
47,008
      
143,796
      
150,558
  
Product
    
7,073
      
5,434
      
16,872
      
16,711
  
Total cost of revenue
    
160,843
      
140,079
      
459,212
      
415,897
  
                                 
Gross profit
    
329,561
      
269,748
      
942,244
      
797,538
  
                                 
Operating expenses:
                                
Research and development, net
    
74,482
      
55,482
      
195,855
      
162,019
  
Selling and marketing
    
131,776
      
106,507
      
386,530
      
323,283
  
General and administrative
    
59,134
      
45,801
      
165,239
      
135,312
  
Total operating expenses
    
265,392
      
207,790
      
747,624
      
620,614
  
                                 
Operating income
    
64,169
      
61,958
      
194,620
      
176,924
  
                                 
Financial and other expense, net
    
3,138
      
1,032
      
15,594
      
2,259
  
                                 
Income before tax
    
61,031
      
60,926
      
179,026
      
174,665
  
Taxes on income
    
13,803
      
10,273
      
35,186
      
33,293
  
Net income
  
$
47,228
    
$
50,653
    
$
143,840
    
$
141,372
  
                                 
Less: net profit (loss) attributable to non-controlling interests
    
145
      
(112
)
    
(238
)
    
(378
)
                                 
Net income attributable to NICE Ltd.'s shareholders
  
$
47,083
    
$
50,765
    
$
144,078
    
$
141,750
  
                                 
Earnings per share:
                                
Basic
  
$
0.75
    
$
0.81
    
$
2.28
    
$
2.26
  
Diluted
  
$
0.70
    
$
0.76
    
$
2.15
    
$
2.15
  
                                 
Weighted average shares outstanding:
                                
Basic
    
63,182
      
62,756
      
63,125
      
62,624
  
Diluted
    
67,101
      
66,253
      
66,779
      
65,741
  



NICE LTD. AND SUBSIDIARIES
              
CONSOLIDATED CASH FLOW STATEMENTS
              
U.S. dollars in thousands
              

   
Quarter ended
    
Year to date
  
   
Sep 30,
    
Sep 30,
  
   
2021
    
2020
    
2021
    
2020
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
Operating Activities
                        
                         
Net income
  
$
47,228
    
$
50,653
    
$
143,840
    
$
141,372
  
Depreciation and amortization
    
45,907
      
45,482
      
136,742
      
135,133
  
Stock based compensation
    
40,628
      
22,207
      
103,062
      
68,839
  
Amortization of premium and discount and accrued interest on marketable securities
    
4,015
      
2,080
      
10,012
      
(790
)
Deferred taxes, net
    
(13,137
)
    
(6,783
)
    
(30,202
)
    
(16,653
)
Changes in operating assets and liabilities:
                                
Trade Receivables
    
(23,161
)
    
12,795
      
(45,628
)
    
27,588
  
Prepaid expenses and other assets
    
(11,255
)
    
3,131
      
(36,218
)
    
(31,637
)
Trade payables
    
(14,435
)
    
6,036
      
(9,643
)
    
5,231
  
Accrued expenses and other current liabilities
    
35,030
      
(15,124
)
    
22,601
      
(36,584
)
Operating lease right-of-use assets, net
    
3,394
      
4,414
      
12,317
      
12,926
  
Deferred revenue
    
(10,793
)
    
(23,481
)
    
37,267
      
14,617
  
Operating lease liabilities
    
(4,330
)
    
(4,608
)
    
(14,805
)
    
(14,297
)
Amortization of discount on debt
    
3,911
      
3,070
      
11,523
      
7,945
  
Loss in respect of extinguishment of debt
    
778
      
-
      
8,076
      
-
  
Other
    
(302
)
    
(839
)
    
214
      
(254
)
  Net cash provided by operating activities
    
103,478
      
99,033
      
349,158
      
313,436
  
                                 
Investing Activities
                                
                                 
Purchase of property and equipment
    
(8,153
)
    
(4,211
)
    
(21,113
)
    
(21,667
)
Purchase of Investments
    
(58,148
)
    
(151,589
)
    
(281,896
)
    
(306,077
)
Proceeds from Investments
    
58,860
      
118,284
      
225,964
      
283,149
  
Capitalization of software development costs
    
(10,712
)
    
(9,577
)
    
(31,987
)
    
(28,776
)
Payments for business and asset acquisitions, net of cash acquired
    
(14,302
)
    
(96,425
)
    
(143,164
)
    
(147,261
)
  Net cash used in investing activities
    
(32,455
)
    
(143,518
)
    
(252,196
)
    
(220,632
)
                                 
Financing Activities
                                
                                 
Proceeds from issuance of shares upon exercise of share options
    
1,109
      
828
      
3,484
      
8,177
  
Purchase of treasury shares
    
(4,346
)
    
-
      
(48,908
)
    
(27,601
)
Proceeds from issuance of exchangeable notes
    
-
      
451,469
      
-
      
451,469
  
Dividends paid to noncontrolling interest
    
-
      
-
      
(801
)
    
-
  
Capital Lease payments
    
-
      
-
      
-
      
(177
)
Repayment of debt
    
(10,501
)
    
-
      
(93,315
)
    
-
  
 Net cash provided by/(used in) financing activities
    
(13,738
)
    
452,297
      
(139,540
)
    
431,868
  
                                 
Effect of exchange rates on cash and cash equivalents
    
(3,041
)
    
1,206
      
(1,993
)
    
121
  
                                 
Net change in cash and cash equivalents
    
54,244
      
409,018
      
(44,571
)
    
524,793
  
Cash and cash equivalents, beginning of period
  
$
343,452
    
$
344,098
    
$
442,267
    
$
228,323
  
                                 
Cash and cash equivalents, end of period
  
$
397,696
    
$
753,116
    
$
397,696
    
$
753,116
  


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
  
   
Sep 30,
    
Sep 30,
  
   
2021
    
2020
    
2021
    
2020
  
GAAP revenues
  
$
490,404
    
$
409,827
    
$
1,401,456
    
$
1,213,435
  
Valuation adjustment on acquired deferred cloud revenue
    
3,996
      
2,458
      
8,593
      
5,187
  
Valuation adjustment on acquired deferred services revenue
    
9
      
81
      
175
      
81
  
Non-GAAP revenues
  
$
494,409
    
$
412,366
    
$
1,410,224
    
$
1,218,703
  
                                 
GAAP cost of revenue
  
$
160,843
    
$
140,079
    
$
459,212
    
$
415,897
  
Amortization of acquired intangible assets on cost of cloud
    
(17,493
)
    
(16,800
)
    
(53,220
)
    
(48,422
)
Amortization of acquired intangible assets on cost of services
    
(1,107
)
    
(322
)
    
(3,558
)
    
(3,341
)
Amortization of acquired intangible assets on cost of product
    
(283
)
    
(1,135
)
    
(853
)
    
(3,394
)
Valuation adjustment on acquired deferred cost of cloud
    
25
      
200
      
76
      
737
  
Cost of cloud revenue adjustment (1)
    
(2,117
)
    
(809
)
    
(5,287
)
    
(2,601
)
Cost of services revenue adjustment (1)
    
(2,835
)
    
(1,677
)
    
(6,916
)
    
(4,957
)
Cost of product revenue adjustment (1)
    
(159
)
    
(69
)
    
(410
)
    
(205
)
Non-GAAP cost of revenue
  
$
136,874
    
$
119,467
    
$
389,044
    
$
353,714
  
                                 
GAAP gross profit
  
$
329,561
    
$
269,748
    
$
942,244
    
$
797,538
  
Gross profit adjustments
    
27,974
      
23,151
      
78,936
      
67,451
  
Non-GAAP gross profit
  
$
357,535
    
$
292,899
    
$
1,021,180
    
$
864,989
  
                                 
GAAP operating expenses
  
$
265,392
    
$
207,790
    
$
747,624
    
$
620,614
  
Research and development (1)
    
(7,073
)
    
(2,565
)
    
(15,241
)
    
(7,553
)
Sales and marketing (1,2)
    
(9,707
)
    
(5,561
)
    
(27,526
)
    
(19,623
)
General and administrative (1,2)
    
(19,998
)
    
(14,065
)
    
(51,373
)
    
(38,239
)
Amortization of acquired intangible assets
    
(11,109
)
    
(9,496
)
    
(30,769
)
    
(28,951
)
Valuation adjustment on acquired deferred commission
    
53
      
35
      
161
      
106
  
Non-GAAP operating expenses
  
$
217,558
    
$
176,138
    
$
622,876
    
$
526,354
  




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
  
   
Sep 30,
    
Sep 30,
  
GAAP financial and other expense, net
  
$
3,138
    
$
1,032
    
$
15,594
    
$
2,259
  
Amortization of discount and loss of extinguishment on debt
    
(4,469
)
    
(3,070
)
    
(19,406
)
    
(7,944
)
Non-GAAP financial and other income, net
  
$
(1,331
)
  
$
(2,038
)
  
$
(3,812
)
  
$
(5,685
)
                                 
GAAP taxes on income
  
$
13,803
    
$
10,273
    
$
35,186
    
$
33,293
  
Tax adjustments re non-GAAP adjustments
    
14,916
      
14,911
      
47,259
      
39,701
  
Non-GAAP taxes on income
  
$
28,719
    
$
25,184
    
$
82,445
    
$
72,994
  
                                 
GAAP net income
  
$
47,228
    
$
50,653
    
$
143,840
    
$
141,372
  
Valuation adjustment on acquired deferred revenue
    
4,005
      
2,539
      
8,768
      
5,268
  
Valuation adjustment on acquired deferred cost of cloud revenue
    
(25
)
    
(200
)
    
(76
)
    
(737
)
Amortization of acquired intangible assets
    
29,992
      
27,753
      
88,400
      
84,108
  
Valuation adjustment on acquired deferred commission
    
(53
)
    
(35
)
    
(161
)
    
(106
)
Share-based compensation (1)
    
40,934
      
22,404
      
103,891
      
69,255
  
Acquisition related expenses (2)
    
955
      
2,342
      
2,862
      
3,923
  
Amortization of discount and loss of extinguishment on debt
    
4,469
      
3,070
      
19,406
      
7,944
  
Tax adjustments re non-GAAP adjustments
    
(14,916
)
    
(14,911
)
    
(47,259
)
    
(39,701
)
Non-GAAP net income
  
$
112,589
    
$
93,615
    
$
319,671
    
$
271,326
  
                                 
GAAP diluted earnings per share
  
$
0.70
    
$
0.76
    
$
2.15
    
$
2.15
  
                                 
Non-GAAP diluted earnings per share
  
$
1.68
    
$
1.41
    
$
4.79
    
$
4.13
  
                                 
Shares used in computing GAAP diluted earnings per share
    
67,101
      
66,253
      
66,779
      
65,741
  
                                 
Shares used in computing non-GAAP diluted earnings per share
    
67,101
      
66,253
      
66,779
      
65,741
  


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
  
       
Sep 30,
    
Sep 30,
  
         
2021
      
2020
      
2021
      
2020
  
                                     
   
Cost of cloud revenue
  
$
2,117
    
$
809
    
$
5,287
    
$
2,601
  
   
Cost of services revenue
    
2,835
      
1,677
      
6,916
      
4,957
  
   
Cost of product revenue
    
159
      
69
      
410
      
205
  
   
Research and development
    
7,073
      
2,565
      
15,241
      
7,553
  
   
Sales and marketing
    
9,707
      
5,519
      
27,526
      
19,493
  
   
General and administrative
    
19,043
      
11,765
      
48,511
      
34,446
  
        
$
40,934
    
$
22,404
    
$
103,891
    
$
69,255
  

(2
)
Acquisition related expenses
                                
                                     
        
Quarter ended
    
Year to date
  
       
Sep 30,
    
Sep 30,
  
         
2021
      
2020
      
2021
      
2020
  
                                     
   
Sales and marketing
  
$
-
    
$
42
    
$
-
    
$
130
  
   
General and administrative
    
955
      
2,300
      
2,862
      
3,793
  
        
$
955
    
$
2,342
    
$
2,862
    
$
3,923