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NICE Reports 26% Year-Over-Year Cloud Revenue Growth Along With Continued Double-Digit Growth in Profitability for Q2 2024

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NICE (NASDAQ: NICE) reported strong Q2 2024 results with total revenue growth of 14% year-over-year to $664.4 million, driven by 26% cloud revenue growth to $481.7 million. The company's non-GAAP operating income increased 19% to $201.7 million, with a 30.4% operating margin. Non-GAAP diluted EPS grew 24% to $2.64.

Highlights include:

  • Operating cash flow of $170 million, up 160% year-over-year
  • Share repurchases of $146 million in Q2
  • Raised full-year 2024 EPS guidance
  • Record quarter for CXone bookings

NICE expects Q3 2024 non-GAAP revenues between $676-686 million and full-year 2024 revenues of $2,715-2,735 million, representing 15% growth at the midpoint.

NICE (NASDAQ: NICE) ha riportato risultati solidi per il secondo trimestre del 2024 con una Crescita del fatturato totale del 14% su base annua, raggiungendo $664,4 milioni, sostenuta da una Crescita del fatturato cloud del 26% che ha raggiunto $481,7 milioni. L'utile operativo non-GAAP dell'azienda è aumentato del 19% a $201,7 milioni, con un margine operativo del 30,4%. L'EPS diluito non-GAAP è cresciuto del 24% a $2,64.

Tra i punti salienti troviamo:

  • Flusso di cassa operativo di $170 milioni, in aumento del 160% su base annua
  • Riacquisti di azioni per $146 milioni nel secondo trimestre
  • Rialzo della guida EPS per il 2024
  • Risultato record per le prenotazioni di CXone

NICE prevede per il terzo trimestre del 2024 ricavi non-GAAP compresi tra $676 e $686 milioni e ricavi totali per il 2024 compresi tra $2.715 e $2.735 milioni, che rappresentano una crescita del 15% al punto medio.

NICE (NASDAQ: NICE) reportó resultados sólidos en el segundo trimestre de 2024 con un crecimiento de ingresos totales del 14% interanual alcanzando los $664.4 millones, impulsado por un crecimiento en ingresos en la nube del 26% hasta los $481.7 millones. La utilidad operativa no-GAAP de la compañía aumentó un 19% a $201.7 millones, con un margen operativo del 30.4%. El EPS diluido no-GAAP creció un 24% a $2.64.

Los aspectos destacados incluyen:

  • Flujo de efectivo operativo de $170 millones, un aumento del 160% interanual
  • Recompras de acciones por $146 millones en el segundo trimestre
  • Aumento de la guía de EPS para todo el año 2024
  • Un trimestre récord para las reservas de CXone

NICE espera que los ingresos no-GAAP del tercer trimestre de 2024 estén entre $676 y $686 millones y que los ingresos totales para 2024 estén entre $2,715 y $2,735 millones, representando un crecimiento del 15% en el punto medio.

NICE (NASDAQ: NICE)는 2024년 2분기 실적을 발표하며 전년 대비 14%의 총 수익 성장을 기록하여 6억 6644만 달러에 도달했고, 클라우드 수익은 26% 증가하여 4억 8170만 달러에 달했습니다. 회사의 비-GAAP 운영 수익은 19% 증가하여 2억 170만 달러를 기록했으며, 운영 마진은 30.4%입니다. 비-GAAP 희석 EPS는 24% 증가하여 2.64달러에 이르렀습니다.

주요 사항:

  • 운영 현금 흐름이 1억 7000만 달러로 전년 대비 160% 증가
  • 2분기 주식 재매입 1억 4600만 달러
  • 2024년 전체 EPS 가이던스 상향 조정
  • CXone 예약의 기록적인 분기

NICE는 2024년 3분기 비-GAAP 수익을 6억 7600만 달러에서 6억 8600만 달러로 예상하며, 2024년 전체 수익을 27억 1500만 달러에서 27억 3500만 달러로 예상하며, 중간값 기준으로 15% 성장을 나타냅니다.

NICE (NASDAQ: NICE) a annoncé de solides résultats pour le deuxième trimestre de 2024 avec une croissance des revenus totaux de 14% d'une année sur l'autre, atteignant 664,4 millions de dollars, soutenue par une croissance des revenus cloud de 26% à 481,7 millions de dollars. Le résultat opérationnel non-GAAP de l'entreprise a augmenté de 19% pour atteindre 201,7 millions de dollars, avec une marge opérationnelle de 30,4%. Le BPA dilué non-GAAP a progressé de 24% pour atteindre 2,64 dollars.

Parmi les faits saillants :

  • Flux de trésorerie opérationnel de 170 millions de dollars, en hausse de 160% d'une année sur l'autre
  • Rachats d'actions de 146 millions de dollars au deuxième trimestre
  • Augmentation des prévisions de BPA pour l'année entière 2024
  • Un trimestre record pour les réservations de CXone

NICE prévoit des revenus non-GAAP pour le troisième trimestre 2024 compris entre 676 et 686 millions de dollars et des revenus totaux pour 2024 compris entre 2,715 et 2,735 millions de dollars, représentant une croissance de 15% au point moyen.

NICE (NASDAQ: NICE) hat für das zweite Quartal 2024 starke Ergebnisse mit einem Umsatzwachstum von 14% im Vergleich zum Vorjahr und einem Gesamtumsatz von 664,4 Millionen USD gemeldet, angetrieben von einem Wachstum der Cloud-Umsätze von 26% auf 481,7 Millionen USD. Das Non-GAAP-Betriebsergebnis des Unternehmens stieg um 19% auf 201,7 Millionen USD, mit einer Betriebsrendite von 30,4%. Das verwässerte Non-GAAP-EPS wuchs um 24% auf 2,64 USD.

Wichtige Punkte sind:

  • Betrieblicher Cashflow von 170 Millionen USD, ein Anstieg von 160% im Vergleich zum Vorjahr
  • Aktienrückkäufe von 146 Millionen USD im 2. Quartal
  • Erhöhung der EPS-Prognose für das gesamte Jahr 2024
  • Rekordquartal für CXone-Buchungen

NICE erwartet für das 3. Quartal 2024 Non-GAAP-Umsätze zwischen 676 und 686 Millionen USD und Gesamteinnahmen für 2024 zwischen 2.715 und 2.735 Millionen USD, was einem Wachstum von 15% im Mittelwert entspricht.

Positive
  • Total revenue increased 14% year-over-year to $664.4 million
  • Cloud revenue grew 26% to $481.7 million
  • Non-GAAP operating income increased 19% to $201.7 million
  • Non-GAAP operating margin improved to 30.4% from 29.2% last year
  • Non-GAAP diluted EPS grew 24% to $2.64
  • Operating cash flow increased 160% to $169.7 million
  • Company raised full-year 2024 EPS guidance
  • Record quarter for CXone bookings
Negative
  • GAAP gross margin decreased to 66.2% from 67.4% in Q2 2023
  • Non-GAAP gross margin declined to 70.7% from 71.6% in Q2 2023

Insights

NICE's Q2 2024 results demonstrate robust financial performance, with 14% year-over-year total revenue growth to $664.4 million and an impressive 26% growth in cloud revenue to $481.7 million. The company's profitability metrics are equally strong, with non-GAAP operating income increasing by 19% and operating margin expanding to 30.4%. These figures indicate NICE's successful execution of its cloud-first strategy and ability to scale efficiently.

The 160% increase in operating cash flow to $170 million is particularly noteworthy, showcasing the company's improved cash generation capabilities. This, coupled with the accelerated share repurchases of $146 million, reflects management's confidence in the company's future prospects and commitment to shareholder returns.

NICE's raised full-year 2024 EPS guidance further underscores its positive outlook. With a solid balance sheet showing $1,503.6 million in cash and investments, NICE is well-positioned for continued growth and potential strategic investments.

NICE's stellar performance in Q2 2024 highlights the growing demand for AI-driven customer experience solutions. The all-time record quarter for CXone bookings indicates strong market traction for their comprehensive CX platform. This success can be attributed to NICE's focus on innovation and rapid AI adoption in enterprise environments.

The company's ability to maintain high growth rates in cloud revenue (26% year-over-year) suggests that businesses are increasingly migrating to cloud-based CX solutions. This trend is likely driven by the need for more flexible, scalable and AI-powered customer engagement tools in an increasingly digital-first world.

NICE's emphasis on AI innovation positions them well in the competitive CX market. As AI continues to transform customer service operations, NICE's investments in this area could lead to sustained growth and market leadership in the coming years.

NICE's Q2 2024 results indicate a strong market position in the customer experience (CX) and cloud solutions sector. The 26% growth in cloud revenue outpaces the industry average, suggesting NICE is gaining market share. This growth is likely driven by increased demand for AI-powered CX solutions as businesses prioritize digital transformation initiatives.

The company's ability to maintain high profitability (30.4% non-GAAP operating margin) while investing in innovation demonstrates effective cost management and a scalable business model. This financial strength provides NICE with a competitive advantage, allowing for continued R&D investments and potential strategic acquisitions.

Looking ahead, NICE's raised guidance and record CXone bookings suggest continued momentum. However, investors should monitor potential challenges such as increased competition in the AI space and any macroeconomic headwinds that could impact enterprise spending on CX solutions.

  • Total revenue growth of 14% year over year
  • Company raises its full-year 2024 EPS guidance
  • Operating cash flow of $170 million increased 160% year over year
  • Share repurchases accelerated to $146 million for Q2 2024

HOBOKEN, N.J.--(BUSINESS WIRE)-- NICE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2024, as compared to the corresponding period of the previous year.

Second Quarter 2024 Financial Highlights

GAAP

Non-GAAP

Total revenue was $664.4 million and increased 14%

Total revenue was $664.4 million and increased 14%

Cloud revenue was $481.7 million and increased 26%

Cloud revenue was $481.7 million and increased 26%

Operating income was $128.8 million and increased 22%

Operating income was $201.7 million and increased 19%

Operating margin was 19.4% compared to 18.1% last year

Operating margin was 30.4% compared to 29.2% last year

Diluted EPS was $1.76 and increased 34%

Diluted EPS was $2.64 and increased 24%

Operating cash flow was $169.7 million and increased 160%

 

“We are pleased to conclude the first half of 2024 with strong Q2 results across the board. Total revenue increased 14% to $664 million, once again driven by industry-leading cloud growth of 26%,” said Barak Eilam, CEO of NICE. “The growing adoption of our extensive and innovative portfolio of AI solutions fueled an all-time record quarter for CXone bookings.

“Our consistently robust top line results continue to drive top-tier software industry profitability. We reported our fourth consecutive quarter of non-GAAP operating margin of at least 30% and exceeded the high end our non-GAAP earnings per share guidance range with $2.64. Additionally, we generated $170 million in operating cash in Q2, and $725 million over the past 12 months.”

Mr. Eilam continued, “We continue to gain market share with the most comprehensive CX platform in CXone, rapid innovation in AI that is experiencing significant enterprise adoption and the flexibility afforded by our rock-solid financial position. We are positioned to further expand our market leadership and deliver long-term growth.”

GAAP Financial Highlights for the Second Quarter Ended June 30:

Revenues: Second quarter 2024 total revenues increased 14% to $664.4 million compared to $581.1 million for the second quarter of 2023.

Gross Profit: Second quarter 2024 gross profit was $439.6 million compared to $391.4 million for the second quarter of 2023. Second quarter 2024 gross margin was 66.2% compared to 67.4% for the second quarter of 2023.

Operating Income: Second quarter 2024 operating income increased 22% to $128.8 million compared to $105.4 million for the second quarter of 2023. Second quarter 2024 operating margin was 19.4% compared to 18.1% for the second quarter of 2023.

Net Income: Second quarter 2024 net income increased 33% to $115.8 million compared to $87.4 million for the second quarter of 2023. Second quarter 2024 net income margin was 17.4% compared to 15.0% for the second quarter of 2023.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2024 increased 34% to $1.76 compared to $1.31 in the second quarter of 2023.

Cash Flow and Cash Balance: Second quarter 2024 operating cash flow was $169.7 million. In the second quarter 2024, $146.1 million was used for share repurchases. As of June 30, 2024, total cash and cash equivalents, and short-term investments were $1,503.6 million. Our debt was $457.9 million, resulting in net cash and investments of $1,045.7 million.

Non-GAAP Financial Highlights for the Second Quarter Ended June 30:

Revenues: Second quarter 2024 total revenues increased 14% to $664.4 million compared to $581.1 million for the second quarter of 2023.

Gross Profit: Second quarter 2024 gross profit was $469.4 million compared to $416.3 million for the second quarter of 2023. Second quarter 2024 gross margin was 70.7% compared to 71.6% for the second quarter of 2023.

Operating Income: Second quarter 2024 operating income increased 19% to $201.7 million compared to $169.6 million for the second quarter of 2023. Second quarter 2024 operating margin was 30.4% compared to 29.2% for the second quarter of 2023.

Net Income: Second quarter 2024 net income increased 23% to $174.2 million compared to $141.5 million for the second quarter of 2023. Second quarter 2024 net income margin was 26.2% compared to 24.4% for the second quarter of 2023.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2024 increased 24% to $2.64 compared to $2.13 in the second quarter of 2023.

Third Quarter and Full Year 2024 Guidance:

Third-Quarter 2024:
Third-quarter 2024 non-GAAP total revenues are expected to be in a range of $676 million to $686 million, representing 13% growth year over year at the midpoint.

Third-quarter 2024 non-GAAP fully diluted earnings per share are expected to be in a range of $2.62 to $2.72, representing 18% growth year over year at the midpoint.

Full-Year 2024:
Full-year 2024 non-GAAP total revenues are expected to be in a range of $2,715 million to $2,735 million, representing 15% growth at the midpoint compared to full-year 2023.

The Company increased full-year 2024 non-GAAP fully diluted earnings per share which are expected to be in a range of $10.60 to $10.80, representing 22% growth at the midpoint compared to full-year 2023.

Quarterly Results Conference Call

NICE management will host its earnings conference call today August 15, 2024, 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.

Explanation of Non-GAAP measures
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 and other expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments.

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
With NICE (Nasdaq: NICE), it’s never been easier for organizations of all sizes around the globe to create extraordinary customer experiences while meeting key business metrics. Featuring the world’s #1 cloud native customer experience platform, CXone, NICE is a worldwide leader in AI-powered self-service and agent-assisted CX software for the contact center – and beyond. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, partner with NICE to transform - and elevate - every customer interaction. www.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, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, 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 uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and 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, the effect of unexpected events or geo-political conditions, such as the impact of conflicts in the Middle East, that may disrupt our business and the global economy 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 press release 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

 

June 30,

December 31,

2024

2023

Unaudited

Audited

 

ASSETS

 

CURRENT ASSETS:

Cash and cash equivalents

$

739,556

$

511,795

Short-term investments

 

764,042

 

896,044

Trade receivables

 

580,101

 

585,154

Debt hedge option

 

-

 

121,922

Prepaid expenses and other current assets

 

216,908

 

197,967

 

 

Total current assets

 

2,300,607

 

2,312,882

 

LONG-TERM ASSETS:

Property and equipment, net

 

181,689

 

174,414

Deferred tax assets

 

190,471

 

178,971

Other intangible assets, net

 

245,299

 

305,501

Operating lease right-of-use assets

 

98,957

 

104,565

Goodwill

 

1,820,746

 

1,821,969

Prepaid expenses and other long-term assets

 

214,050

 

219,332

 

 

Total long-term assets

 

2,751,212

 

2,804,752

 

TOTAL ASSETS

$

5,051,819

$

5,117,634

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES:

Trade payables

$

73,129

$

66,036

Deferred revenues and advances from customers

 

342,405

 

302,649

Current maturities of operating leases

 

13,057

 

13,747

Debt

 

-

 

209,229

Accrued expenses and other liabilities

 

509,779

 

528,660

 

Total current liabilities

 

938,370

 

1,120,321

 

LONG-TERM LIABILITIES:

Deferred revenues and advances from customers

 

60,839

 

52,458

Operating leases

 

96,861

 

102,909

Deferred tax liabilities

 

8,057

 

8,596

Debt

 

457,930

 

457,081

Other long-term liabilities

 

22,900

 

21,769

 

Total long-term liabilities

 

646,587

 

642,813

 

SHAREHOLDERS' EQUITY

Nice Ltd's equity

 

3,455,172

 

3,341,132

Non-controlling interests

 

11,690

 

13,368

 

Total shareholders' equity

 

3,466,862

 

3,354,500

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

5,051,819

$

5,117,634

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

 

Quarter ended

Year ended

June 30,

June 30,

2024

2023

2024

2023

Unaudited

Unaudited

Unaudited

Unaudited

 

Revenue:

Cloud

$

481,693

$

381,948

$

950,099

$

749,515

Services

 

147,611

 

158,945

 

296,524

 

318,802

Product

 

35,096

 

40,220

 

77,086

 

84,655

Total revenue

 

664,400

 

581,113

 

1,323,709

 

1,152,972

 

Cost of revenue:

Cloud

 

170,702

 

134,984

 

340,680

 

266,580

Services

 

46,663

 

47,019

 

92,749

 

94,924

Product

 

7,418

 

7,710

 

14,023

 

14,805

Total cost of revenue

 

224,783

 

189,713

 

447,452

 

376,309

 

Gross profit

 

439,617

 

391,400

 

876,257

 

776,663

 

Operating expenses:

Research and development, net

 

86,522

 

78,640

 

174,354

 

156,741

Selling and marketing

 

157,645

 

151,964

 

312,660

 

300,443

General and administrative

 

66,626

 

55,367

 

138,980

 

120,543

Total operating expenses

 

310,793

 

285,971

 

625,994

 

577,727

 

Operating income

 

128,824

 

105,429

 

250,263

 

198,936

 

Financial and other income, net

 

(15,645)

 

(9,350)

 

(29,654)

 

(18,071)

 

Income before tax

 

144,469

 

114,779

 

279,917

 

217,007

Taxes on income

 

28,684

 

27,424

 

57,759

 

52,711

Net income

$

115,785

$

87,355

$

222,158

$

164,296

 
 

Earnings per share:

Basic

$

1.82

$

1.37

$

3.50

$

2.57

Diluted

$

1.76

$

1.31

$

3.36

$

2.47

 

Weighted average shares outstanding:

Basic

 

63,534

 

63,723

 

63,406

 

63,831

Diluted

 

65,856

 

66,435

 

66,192

 

66,548

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands

Quarter ended

Year ended

June 30,

June 30,

2024

2023

2024

2023

Unaudited

Unaudited

Unaudited

Unaudited

 

Operating Activities

 

Net income

$

115,785

$

87,355

$

222,158

$

164,296

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

 

51,520

 

42,033

 

103,280

 

83,879

Share-based compensation

 

42,226

 

39,314

 

86,630

 

84,275

Amortization of premium and discount and accrued interest on marketable securities

 

(2,096)

 

(224)

 

(3,328)

 

1,046

Deferred taxes, net

 

(15,773)

 

(8,994)

 

(11,407)

 

(16,872)

Changes in operating assets and liabilities:

Trade Receivables, net

 

(6,707)

 

(8,665)

 

1,430

 

8,087

Prepaid expenses and other current assets

 

1,740

 

(10,674)

 

10,501

 

(22,046)

Operating lease right-of-use assets

 

3,372

 

2,435

 

6,653

 

5,503

Trade payables

 

17,702

 

(9,668)

 

6,939

 

(10,848)

Accrued expenses and other current liabilities

 

(40,836)

 

(48,832)

 

(43,704)

 

(49,526)

Deferred revenue

 

4,742

 

(18,424)

 

50,281

 

14,823

Operating lease liabilities

 

(3,976)

 

(3,494)

 

(7,776)

 

(7,401)

Amortization of discount on long-term debt

 

425

 

1,129

 

974

 

2,283

Loss from extinguishment of debt

 

-

 

37

 

-

 

37

Other

 

1,544

 

1,926

 

1,527

 

2,789

Net cash provided by operating activities

 

169,668

 

65,254

 

424,158

 

260,325

 

Investing Activities

 

Purchase of property and equipment

 

(6,455)

 

(4,513)

 

(16,976)

 

(17,619)

 

Purchase of Investments

 

(105,991)

 

(121,817)

 

(437,113)

 

(191,359)

Proceeds from sales of marketable investments

 

51,971

 

107,653

 

568,121

 

172,552

Capitalization of internal use software costs

 

(15,238)

 

(14,491)

 

(31,174)

 

(28,627)

Net cash provided by (used in) investing activities

 

(75,713)

 

(33,168)

 

82,858

 

(65,053)

 

Financing Activities

 

Proceeds from issuance of shares upon exercise of options

 

520

 

765

 

2,312

 

1,724

 

Purchase of treasury shares

 

(146,088)

 

(65,196)

 

(187,603)

 

(129,911)

Dividends paid to noncontrolling interest

 

-

 

-

 

(2,681)

 

(1,480)

Repayment of debt

 

-

 

(1,534)

 

(87,435)

 

(1,534)

 

Net cash used in financing activities

 

(145,568)

 

(65,965)

 

(275,407)

 

(131,201)

 

Effect of exchange rates on cash and cash equivalents

 

(1,309)

 

546

 

(3,248)

 

1,713

 

Net change in cash, cash equivalents and restricted cash

 

(52,922)

 

(33,333)

 

228,361

 

65,784

Cash, cash equivalents and restricted cash, beginning of period

$

794,597

$

632,212

$

513,314

$

533,095

 

Cash, cash equivalents and restricted cash, end of period

$

741,675

$

598,879

$

741,675

$

598,879

 

Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:

Cash and cash equivalents

$

739,556

$

598,079

$

739,556

$

598,079

Restricted cash included in other current assets

$

2,119

$

800

$

2,119

$

800

Total cash, cash equivalents and restricted cash shown in the statement of cash flows

$

741,675

$

598,879

$

741,675

$

598,879

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,

2024

2023

2024

2023

GAAP revenues

$

664,400

$

581,113

$

1,323,709

$

1,152,972

Non-GAAP revenues

$

664,400

$

581,113

$

1,323,709

$

1,152,972

 
 

GAAP cost of revenue

$

224,783

$

189,713

$

447,452

$

376,309

Amortization of acquired intangible assets on cost of cloud

 

(24,133)

 

(19,396)

 

(49,500)

 

(38,765)

Amortization of acquired intangible assets on cost of product

 

(150)

 

(257)

 

(410)

 

(506)

Cost of cloud revenue adjustment (1,2)

 

(2,852)

 

(2,253)

 

(5,854)

 

(4,200)

Cost of services revenue adjustment (1)

 

(2,617)

 

(2,864)

 

(4,995)

 

(5,748)

Cost of product revenue adjustment (1)

 

(30)

 

(140)

 

(60)

 

(278)

Non-GAAP cost of revenue

$

195,001

$

164,803

$

386,633

$

326,812

 
 

GAAP gross profit

$

439,617

$

391,400

$

876,257

$

776,663

Gross profit adjustments

 

29,782

 

24,910

 

60,819

 

49,497

Non-GAAP gross profit

$

469,399

$

416,310

$

937,076

$

826,160

 
 

GAAP operating expenses

$

310,793

$

285,971

$

625,994

$

577,727

Research and development (1,2)

 

(7,484)

 

(7,783)

 

(15,627)

 

(16,181)

Sales and marketing (1,2)

 

(13,210)

 

(13,055)

 

(27,382)

 

(24,157)

General and administrative (1,2)

 

(17,429)

 

(14,059)

 

(37,260)

 

(35,355)

Amortization of acquired intangible assets

 

(4,972)

 

(4,428)

 

(10,211)

 

(8,943)

Valuation adjustment on acquired deferred commission

 

8

 

36

 

23

 

76

Non-GAAP operating expenses

$

267,706

$

246,682

$

535,537

$

493,167

 
 

GAAP financial and other income, net

$

(15,645)

$

(9,350)

$

(29,654)

$

(18,071)

Amortization of discount and loss of extinguishment on debt

 

(425)

 

(1,166)

 

(974)

 

(2,320)

Change in fair value of contingent consideration

 

(35)

 

(578)

 

(79)

 

(578)

Non-GAAP financial and other income, net

$

(16,105)

$

(11,094)

$

(30,707)

$

(20,969)

 
 

GAAP taxes on income

$

28,684

$

27,424

$

57,759

$

52,711

Tax adjustments re non-GAAP adjustments

 

14,963

 

11,793

 

28,779

 

24,101

Non-GAAP taxes on income

$

43,647

$

39,217

$

86,538

$

76,812

 
 

GAAP net income

$

115,785

$

87,355

$

222,158

$

164,296

Amortization of acquired intangible assets

 

29,255

 

24,081

 

60,121

 

48,214

Valuation adjustment on acquired deferred commission

 

(8)

 

(36)

 

(23)

 

(76)

Share-based compensation (1)

 

43,622

 

40,154

 

89,266

 

85,919

Acquisition related and other expenses (2)

 

-

 

-

 

1,912

 

-

Amortization of discount and loss of extinguishment on debt

 

425

 

1,166

 

974

 

2,320

Change in fair value of contingent consideration

 

35

 

578

 

79

 

578

Tax adjustments re non-GAAP adjustments

 

(14,963)

 

(11,793)

 

(28,779)

 

(24,101)

Non-GAAP net income

$

174,151

$

141,505

$

345,708

$

277,150

 
 

GAAP diluted earnings per share

$

1.76

$

1.31

$

3.36

$

2.47

 

Non-GAAP diluted earnings per share

$

2.64

$

2.13

$

5.22

$

4.16

 

Shares used in computing GAAP diluted earnings per share

 

65,856

 

66,435

 

66,192

 

66,548

 

Shares used in computing non-GAAP diluted earnings per share

 

65,856

 

66,435

 

66,192

 

66,548

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,

2024

2023

2024

2023

 

Cost of cloud revenue

$

2,852

$

2,253

$

5,792

$

4,200

Cost of services revenue

 

2,617

 

2,864

 

4,995

 

5,748

Cost of product revenue

 

30

 

140

 

60

 

278

Research and development

 

7,484

 

7,783

 

15,297

 

16,181

Sales and marketing

 

13,210

 

13,055

 

26,739

 

24,157

General and administrative

 

17,429

 

14,059

 

36,383

 

35,355

$

43,622

$

40,154

$

89,266

$

85,919

 
 
 

(2)

Acquisition related and other expenses

Quarter ended

Year to date

June 30,

June 30,

2024

2023

2024

2023

 

Cost of cloud revenue

$

-

$

-

$

62

$

-

Research and development

 

-

 

-

 

330

 

-

Sales and marketing

 

-

 

-

 

643

 

-

General and administrative

 

-

 

-

 

877

 

-

$

-

$

-

$

1,912

$

-

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA

U.S. dollars in thousands

 
 

Quarter ended

Year to date

June 30,

June 30,

2024

2023

2024

2023

Unaudited

Unaudited

Unaudited

Unaudited

 

GAAP net income

$

115,785

$

87,355

$

222,158

$

164,296

Non-GAAP adjustments:

Depreciation and amortization

 

51,520

 

42,033

 

103,280

 

83,879

Share-based compensation

 

42,226

 

39,314

 

86,630

 

84,275

Financial and other expense/ (income), net

 

(15,645)

 

(9,350)

 

(29,654)

 

(18,071)

Acquisition related and other expenses

 

-

 

-

 

1,912

 

-

Valuation adjustment on acquired deferred commission

 

(8)

 

(36)

 

(23)

 

(76)

Taxes on income

 

28,684

 

27,424

 

57,759

 

52,711

Non-GAAP EBITDA

$

222,562

$

186,740

$

442,062

$

367,014

NICE LTD. AND SUBSIDIARIES

NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS

U.S. dollars in thousands

 
 

Quarter ended

Year to date

June 30,

June 30,

2024

2023

2024

2023

Unaudited

Unaudited

Unaudited

Unaudited

 

Net cash provided by operating activities

$

169,668

$

65,254

$

424,158

$

260,325

 
Purchase of property and equipment

 

(6,455)

 

(4,513)

 

(16,976)

 

(17,619)

Capitalization of internal use software costs

 

(15,238)

 

(14,491)

 

(31,174)

 

(28,627)

 

Free Cash Flow (a)

$

147,975

$

46,250

$

376,008

$

214,079

 
(a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.

 

Investor Relations

Marty Cohen, +1 551 256 5354, ir@nice.com, ET

Omri Arens, +972 3 763-0127, ir@nice.com, CET

Corporate Media

Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET

Source: NICE

FAQ

What was NICE's cloud revenue growth in Q2 2024?

NICE reported a 26% year-over-year growth in cloud revenue, reaching $481.7 million in Q2 2024.

How much did NICE's operating cash flow increase in Q2 2024?

NICE's operating cash flow increased by 160% year-over-year to $169.7 million in Q2 2024.

What is NICE's full-year 2024 revenue guidance?

NICE expects full-year 2024 non-GAAP total revenues to be in the range of $2,715 million to $2,735 million, representing 15% growth at the midpoint compared to full-year 2023.

How much did NICE spend on share repurchases in Q2 2024?

NICE accelerated its share repurchases to $146 million in Q2 2024.

What was NICE's non-GAAP operating margin in Q2 2024?

NICE reported a non-GAAP operating margin of 30.4% in Q2 2024, compared to 29.2% in the same quarter last year.

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