- Total annual revenue growth of 15% year over year to $2.7 billion
- Record high annual operating margin drives record EPS and 48% year over year growth in cash flow from operations to $833 million
NICE (NASDAQ: NICE) today announced results for the fourth quarter and the full year ended December 31, 2024, as compared to the corresponding periods of the previous year.
Fourth Quarter 2024 Financial Highlights
GAAP |
Non-GAAP |
Total revenue was $721.6 million and increased 16% |
Total revenue was $721.6 million and increased 16% |
Cloud revenue was $533.9 million and increased 24% |
Cloud revenue was $533.9 million and increased 24% |
Operating income was $154.3 million and increased 26% |
Operating income was $227.3 million and increased 22% |
Operating margin was 21.4% compared to 19.7% last year |
Operating margin was 31.5% compared to 30.0% last year |
Diluted EPS was $1.54 and increased 24% |
Diluted EPS was $3.02 and increased 28% |
Operating cash flow was $249.5 million and increased 38% |
|
Full Year 2024 Financial Highlights
GAAP |
Non-GAAP |
Total revenue was $2,735.3 million and increased 15% |
Total revenue was $2,735.3 million and increased 15% |
Cloud revenue was $1,984.2 million and increased 25% |
Cloud revenue was $1,984.2 million and increased 25% |
Operating income was $546.0 million and increased 25% |
Operating income was $849.6 million and increased 21% |
Operating margin was 20.0% compared to 18.3% last year |
Operating margin was 31.1% compared to 29.6% last year |
Diluted EPS was $6.76 and increased 32% |
Diluted EPS was $11.12 and increased 27% |
Operating cash flow was $832.6 million and increased 48% |
|
“We’re pleased to report a strong finish to 2024 capped off by an exceptional fourth quarter with double digit growth in total revenue, cloud revenue and further acceleration of our industry leading profitability,” said Scott Russell, CEO of NICE. “Our full-year 2024 strong top line results were fueled by a 25% year-over-year growth in cloud revenue, which reached $2 billion. Further, our leadership in CX AI was exemplified by the strong adoption of our advanced AI solutions which were included in 97% of our large enterprise CXone Mpower deals over $1 million ARR. Our profitability reached new heights with a 150-basis point increase in our non-GAAP operating margin, climbing to 31.1%. Additionally, our outstanding operating cash flow growth in 2024, which increased 48% year-over-year to $833 million, positions us with a significant competitive advantage to drive future organic and inorganic expansion.”
Mr. Russell continued, “AI is revolutionizing the CX industry, and CXone Mpower’s agentic AI is unlocking new levels of growth by delivering further efficiency and exceptional customer experiences. I joined NICE for its undisputed leadership and its unique ability to seize this growth opportunity. We will put our industry-leading platforms front and center, we will lead the CX-AI revolution and we will further scale through expansion of our ecosystem. Our decades of deep CX domain expertise, industry-leading AI platform, relentless innovation and great financial strength strongly positions us to capitalize on the opportunities ahead and accelerate into the future.”
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
Revenues:
Fourth quarter 2024 total revenues increased 16% year over year to $721.6 million compared to $623.2 million for the fourth quarter of 2023.
Full year 2024 total revenues increased 15% to $2,735.3 million compared to $2,377.5 million for the full year 2023.
Gross Profit:
Fourth quarter 2024 gross profit was $489.2 million compared to $422.3 million for the fourth quarter of 2023. Fourth quarter 2024 gross margin was 67.8% compared to 67.8% for the fourth quarter of 2023.
Full year 2024 gross profit was $1,825.7 million compared to $1,609.3 million for the full year 2023. Full year 2024 gross margin was 66.7% compared to 67.7% for the full year 2023.
Operating Income:
Fourth quarter 2024 operating income increased 26% to $154.3 million compared to $122.7 million for the fourth quarter of 2023. Fourth quarter 2024 operating margin was 21.4% compared to 19.7% for the fourth quarter of 2023.
Full year 2024 operating income was $546.0 million compared to $435.2 million for the full year 2023. Full year 2024 operating margin was 20.0% compared to 18.3% for the full year 2023.
Net Income:
Fourth quarter 2024 net income increased 22% to $99.5 million compared to $81.7 million for the fourth quarter of 2023. Fourth quarter 2024 net income margin was 13.8% compared to 13.1% for the fourth quarter of 2023.
Full year 2024 net income was $442.6 million compared to $338.3 million for the full year 2023. Full year 2024 net income margin was 16.2% compared to 14.2% for the full year 2023.
Fully Diluted Earnings Per Share:
Fully diluted earnings per share for the fourth quarter of 2024 increased 24% to $1.54 compared to $1.24 in the fourth quarter of 2023.
Fully diluted earnings per share for the full year 2024 increased 32% to $6.76 compared to $5.11 for the full year 2023.
Cash Flow and Cash Balance:
Fourth quarter 2024 operating cash flow was $249.5 million and full year 2024 operating cash flow was $832.6 million.
In the fourth quarter 2024, $95.2 million was used for share repurchases and for the full year 2024, $369.2 million were used for share repurchases.
As of December 31, 2024, total cash and cash equivalents, and short-term investments were $1,621.7 million. Our debt, was $458.8 million, resulting in net cash and investments of $1,162.9 million.
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
Revenues:
Fourth quarter 2024 non-GAAP total revenues increased 16% to $721.6 million compared to $623.2 million for the fourth quarter of 2023.
Full year 2024 non-GAAP total revenues increased 15% to $2,735.3 million compared to $2,377.5 million for the full year 2023.
Gross Profit:
Fourth quarter 2024 non-GAAP gross profit increased to $515.3 million compared to $448.2 million for the fourth quarter of 2023. Fourth quarter 2024 non-GAAP gross margin was 71.4% compared to 71.9% for the fourth quarter of 2023.
Full year 2024 gross profit was $1,942.7 million compared to $1,708.8 million for the full year 2023. Full year 2024 non-GAAP gross margin was 71.0% compared to 71.9% for the full year 2023.
Operating Income:
Fourth quarter 2024 non-GAAP operating income increased 22% to $227.3 million compared to $186.9 million for the fourth quarter of 2023. Fourth quarter 2024 non-GAAP operating margin was 31.5% compared to 30.0% for the fourth quarter of 2023.
Full year 2024 non-GAAP operating income increased 21% to $849.6 million compared to $703.8 million for the full year 2023. Full year 2024 non-GAAP operating margin was 31.1% compared to 29.6% for the full year 2023.
Net Income:
Fourth quarter 2024 non-GAAP net income increased 26% to $195.8 million compared to $154.9 million for the fourth quarter of 2023. Fourth quarter 2024 non-GAAP net income margin totaled 27.1% compared to 24.9% for the fourth quarter of 2023.
Full year 2024 non-GAAP net income increased 25% to $728.4 million compared to $582.7 million for the full year 2023. Full year 2024 non-GAAP net income margin was 26.6% compared to 24.5% for the full year 2023.
Fully Diluted Earnings Per Share:
Fourth quarter 2024 non-GAAP fully diluted earnings per share increased 28% to $3.02 compared to $2.36 for the fourth quarter of 2023.
Full year 2024 non-GAAP fully diluted earnings per share increased 27% to $11.12 compared to $8.79 for the full year 2023.
First Quarter and Full Year 2025 Guidance:
First-Quarter 2025:
First-quarter 2025 non-GAAP total revenues are expected to be in a range of $693 million to $703 million, representing 6% year over year growth at the midpoint.
First-quarter 2025 non-GAAP fully diluted earnings per share are expected to be in a range of $2.78 to $2.88, representing 10% year over year growth at the midpoint.
Full-Year 2025:
Full-year 2025 non-GAAP total revenues are expected to be in a range of $2,918 million to $2,938 million, representing 7% year over year growth at the midpoint.
Full-year 2025 non-GAAP fully diluted earnings per share are expected to be in a range of $12.13 to $12.33, representing 10% year over year growth at the midpoint.
The above full year 2025 guidance includes the expectation of 12% year over year growth in cloud revenue.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, February 20, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: 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 |
|||||||
December 31, |
December 31, |
||||||
2024 |
2023 |
||||||
Unaudited |
Audited |
||||||
ASSETS |
|||||||
CURRENT ASSETS: |
|||||||
Cash and cash equivalents |
$ |
481,712 |
$ |
511,795 |
|||
Short-term investments |
|
1,139,996 |
|
896,044 |
|||
Trade receivables |
|
643,985 |
|
585,154 |
|||
Debt hedge option |
|
- |
|
121,922 |
|||
Prepaid expenses and other current assets |
|
239,080 |
|
197,967 |
|||
|
|
||||||
Total current assets |
|
2,504,773 |
|
2,312,882 |
|||
LONG-TERM ASSETS: |
|||||||
Property and equipment, net |
|
185,292 |
|
174,414 |
|||
Deferred tax assets |
|
219,232 |
|
178,971 |
|||
Other intangible assets, net |
|
231,346 |
|
305,501 |
|||
Operating lease right-of-use assets |
|
93,083 |
|
104,565 |
|||
Goodwill |
|
1,849,668 |
|
1,821,969 |
|||
Prepaid expenses and other long-term assets |
|
212,512 |
|
219,332 |
|||
|
|
||||||
Total long-term assets |
|
2,791,133 |
|
2,804,752 |
|||
TOTAL ASSETS |
$ |
5,295,906 |
$ |
5,117,634 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
CURRENT LIABILITIES: |
|||||||
Trade payables |
$ |
110,603 |
$ |
66,036 |
|||
Deferred revenues and advances from customers |
|
299,367 |
|
302,649 |
|||
Current maturities of operating leases |
|
12,554 |
|
13,747 |
|||
Debt |
|
458,791 |
|
209,229 |
|||
Accrued expenses and other liabilities |
|
593,109 |
|
528,660 |
|||
Total current liabilities |
|
1,474,424 |
|
1,120,321 |
|||
LONG-TERM LIABILITIES: |
|||||||
Deferred revenues and advances from customers |
|
66,289 |
|
52,458 |
|||
Operating leases |
|
92,258 |
|
102,909 |
|||
Deferred tax liabilities |
|
1,965 |
|
8,596 |
|||
Debt |
|
- |
|
457,081 |
|||
Other long-term liabilities |
|
57,807 |
|
21,769 |
|||
Total long-term liabilities |
|
218,319 |
|
642,813 |
|||
SHAREHOLDERS' EQUITY |
|||||||
Nice Ltd's equity |
|
3,589,742 |
|
3,341,132 |
|||
Non-controlling interests |
|
13,421 |
|
13,368 |
|||
Total shareholders' equity |
|
3,603,163 |
|
3,354,500 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
5,295,906 |
$ |
5,117,634 |
|||
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, |
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Unaudited |
Audited |
Unaudited |
Audited |
||||||||||||
Revenue: |
|||||||||||||||
Cloud |
$ |
533,947 |
|
$ |
428,986 |
$ |
1,984,160 |
|
$ |
1,581,825 |
|
||||
Services |
|
149,650 |
|
|
162,365 |
|
596,031 |
|
|
641,387 |
|
||||
Product |
|
38,003 |
|
|
31,841 |
|
155,081 |
|
|
154,296 |
|
||||
Total revenue |
|
721,600 |
|
|
623,192 |
|
2,735,272 |
|
|
2,377,508 |
|
||||
Cost of revenue: |
|||||||||||||||
Cloud |
|
180,110 |
|
|
146,510 |
|
699,713 |
|
|
553,654 |
|
||||
Services |
|
47,009 |
|
|
48,674 |
|
184,410 |
|
|
188,890 |
|
||||
Product |
|
5,267 |
|
|
5,694 |
|
25,401 |
|
|
25,629 |
|
||||
Total cost of revenue |
|
232,386 |
|
|
200,878 |
|
909,524 |
|
|
768,173 |
|
||||
Gross profit |
|
489,214 |
|
|
422,314 |
|
1,825,748 |
|
|
1,609,335 |
|
||||
Operating expenses: |
|||||||||||||||
Research and development, net |
|
94,753 |
|
|
81,119 |
|
360,607 |
|
|
322,708 |
|
||||
Selling and marketing |
|
176,813 |
|
|
154,500 |
|
642,251 |
|
|
599,114 |
|
||||
General and administrative |
|
63,336 |
|
|
64,030 |
|
276,936 |
|
|
252,286 |
|
||||
Total operating expenses |
|
334,902 |
|
|
299,649 |
|
1,279,794 |
|
|
1,174,108 |
|
||||
Operating income |
|
154,312 |
|
|
122,665 |
|
545,954 |
|
|
435,227 |
|
||||
Financial expenses (income) and other, net |
|
(16,938 |
) |
|
2,635 |
|
(58,872 |
) |
|
(22,473 |
) |
||||
Income before tax |
|
171,250 |
|
|
120,030 |
|
604,826 |
|
|
457,700 |
|
||||
Taxes on income |
|
71,741 |
|
|
38,378 |
|
162,238 |
|
|
119,399 |
|
||||
Net income |
$ |
99,509 |
|
$ |
81,652 |
$ |
442,588 |
|
$ |
338,301 |
|
||||
Earnings per share: |
|||||||||||||||
Basic |
$ |
1.56 |
|
$ |
1.29 |
$ |
6.97 |
|
$ |
5.32 |
|
||||
Diluted |
$ |
1.54 |
|
$ |
1.24 |
$ |
6.76 |
|
$ |
5.11 |
|
||||
Weighted average shares outstanding: |
|||||||||||||||
Basic |
|
63,720 |
|
|
63,283 |
|
63,483 |
|
|
63,590 |
|
||||
Diluted |
|
64,802 |
|
|
65,749 |
|
65,506 |
|
|
66,265 |
|
||||
NICE LTD. AND SUBSIDIARIES |
|||||||||||||||||
CONSOLIDATED CASH FLOW STATEMENTS |
|||||||||||||||||
U.S. dollars in thousands |
|||||||||||||||||
Quarter ended |
Year to date |
||||||||||||||||
December 31, |
December 31, |
||||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||||
Unaudited |
Audited |
Unaudited |
Audited |
||||||||||||||
Operating Activities |
|||||||||||||||||
Net income |
$ |
99,509 |
|
$ |
81,652 |
|
$ |
442,588 |
|
$ |
338,301 |
|
|||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||||
Depreciation and amortization |
|
48,776 |
|
|
41,212 |
|
|
205,020 |
|
|
167,360 |
|
|||||
Share-based compensation |
|
48,185 |
|
|
46,170 |
|
|
182,067 |
|
|
176,658 |
|
|||||
Amortization of premium and discount and accrued interest on marketable securities |
|
(3,135 |
) |
|
436 |
|
|
(9,861 |
) |
|
2,480 |
|
|||||
Deferred taxes, net |
|
(1,312 |
) |
|
(35,833 |
) |
|
(40,261 |
) |
|
(66,620 |
) |
|||||
Changes in operating assets and liabilities: |
|||||||||||||||||
Trade Receivables, net |
|
(20,993 |
) |
|
(16,572 |
) |
|
(61,025 |
) |
|
(34,292 |
) |
|||||
Prepaid expenses and other current assets |
|
(2,625 |
) |
|
95,413 |
|
|
25,040 |
|
|
73,052 |
|
|||||
Operating lease right-of-use assets |
|
3,025 |
|
|
3,833 |
|
|
12,951 |
|
|
12,518 |
|
|||||
Trade payables |
|
39,319 |
|
|
2,642 |
|
|
43,965 |
|
|
3,426 |
|
|||||
Accrued expenses and other current liabilities |
|
63,507 |
|
|
(27,012 |
) |
|
41,952 |
|
|
(55,703 |
) |
|||||
Deferred revenue |
|
(19,138 |
) |
|
(6,285 |
) |
|
3,049 |
|
|
(45,947 |
) |
|||||
Realized loss on marketable securities, net |
|
- |
|
|
12,271 |
|
|
- |
|
|
12,271 |
|
|||||
Operating lease liabilities |
|
(2,767 |
) |
|
441 |
|
|
(13,291 |
) |
|
(11,100 |
) |
|||||
Amortization of discount on long-term debt |
|
430 |
|
|
1,166 |
|
|
1,834 |
|
|
4,615 |
|
|||||
Loss from extinguishment of debt |
|
- |
|
|
16 |
|
|
- |
|
|
53 |
|
|||||
Change in fair value of contingent consideration |
|
(3,054 |
) |
|
(18,258 |
) |
|
(3,054 |
) |
|
(18,258 |
) |
|||||
Other |
|
(205 |
) |
|
(796 |
) |
|
1,667 |
|
|
2,616 |
|
|||||
Net cash provided by operating activities |
|
249,522 |
|
|
180,496 |
|
|
832,641 |
|
|
561,430 |
|
|||||
Investing Activities |
|||||||||||||||||
Purchase of property and equipment |
|
(7,567 |
) |
|
(6,079 |
) |
|
(34,962 |
) |
|
(29,205 |
) |
|||||
Purchase of Investments |
|
(362,822 |
) |
|
(29,620 |
) |
|
(938,154 |
) |
|
(230,263 |
) |
|||||
Proceeds from Investments |
|
77,086 |
|
|
129,006 |
|
|
705,332 |
|
|
436,044 |
|
|||||
Capitalization of internal use software costs |
|
(16,819 |
) |
|
(13,868 |
) |
|
(64,805 |
) |
|
(54,974 |
) |
|||||
Payments for business acquisitions, net of cash acquired |
|
(20,309 |
) |
|
(396,780 |
) |
|
(64,816 |
) |
|
(415,185 |
) |
|||||
Net cash provided used in investing activities |
|
(330,431 |
) |
|
(317,341 |
) |
|
(397,405 |
) |
|
(293,583 |
) |
|||||
Financing Activities |
|||||||||||||||||
Proceeds from issuance of shares upon exercise of options |
|
723 |
|
|
803 |
|
|
3,063 |
|
|
2,570 |
|
|||||
Purchase of treasury shares |
|
(95,156 |
) |
|
(69,026 |
) |
|
(369,196 |
) |
|
(288,443 |
) |
|||||
Dividends paid to noncontrolling interest |
|
(355 |
) |
|
(291 |
) |
|
(3,036 |
) |
|
(1,771 |
) |
|||||
Repayment of debt |
|
- |
|
|
(1,071 |
) |
|
(87,435 |
) |
|
(2,628 |
) |
|||||
Net cash used in financing activities |
|
(94,788 |
) |
|
(69,585 |
) |
|
(456,604 |
) |
|
(290,272 |
) |
|||||
Effect of exchange rates on cash and cash equivalents |
|
(8,174 |
) |
|
3,754 |
|
|
(6,914 |
) |
|
2,643 |
|
|||||
Net change in cash, cash equivalents and restricted cash |
|
(183,871 |
) |
|
(202,676 |
) |
|
(28,282 |
) |
|
(19,782 |
) |
|||||
Cash, cash equivalents and restricted cash, beginning of period |
$ |
668,903 |
|
$ |
715,990 |
|
$ |
513,314 |
|
$ |
533,096 |
|
|||||
Cash, cash equivalents and restricted cash, end of period |
$ |
485,032 |
|
$ |
513,314 |
|
$ |
485,032 |
|
$ |
513,314 |
|
|||||
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: |
||||||||||||
Cash and cash equivalents |
$ |
481,712 |
$ |
511,795 |
$ |
481,712 |
$ |
511,795 |
||||
Restricted cash included in other current assets |
$ |
3,320 |
$ |
1,519 |
$ |
3,320 |
$ |
1,519 |
||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows |
$ |
485,032 |
$ |
513,314 |
$ |
485,032 |
$ |
513,314 |
||||
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, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
GAAP revenues |
$ |
721,600 |
|
$ |
623,192 |
|
$ |
2,735,272 |
|
$ |
2,377,508 |
|
||||
Non-GAAP revenues |
$ |
721,600 |
|
$ |
623,192 |
|
$ |
2,735,272 |
|
$ |
2,377,508 |
|
||||
GAAP cost of revenue |
$ |
232,386 |
|
$ |
200,878 |
|
$ |
909,524 |
|
$ |
768,173 |
|
||||
Amortization of acquired intangible assets on cost of cloud |
|
(19,592 |
) |
|
(17,935 |
) |
|
(93,370 |
) |
|
(75,667 |
) |
||||
Amortization of acquired intangible assets on cost of product |
|
- |
|
|
(255 |
) |
|
(410 |
) |
|
(1,021 |
) |
||||
Cost of cloud revenue adjustment (1,2) |
|
(3,520 |
) |
|
(4,605 |
) |
|
(12,549 |
) |
|
(10,965 |
) |
||||
Cost of services revenue adjustment (1) |
|
(2,966 |
) |
|
(3,142 |
) |
|
(10,472 |
) |
|
(11,906 |
) |
||||
Cost of product revenue adjustment (1) |
|
(18 |
) |
|
15 |
|
|
(108 |
) |
|
121 |
|
||||
Non-GAAP cost of revenue |
$ |
206,290 |
|
$ |
174,956 |
|
$ |
792,615 |
|
$ |
668,735 |
|
||||
GAAP gross profit |
$ |
489,214 |
|
$ |
422,314 |
|
$ |
1,825,748 |
|
$ |
1,609,335 |
|
||||
Gross profit adjustments |
|
26,096 |
|
|
25,922 |
|
|
116,909 |
|
|
99,438 |
|
||||
Non-GAAP gross profit |
$ |
515,310 |
|
$ |
448,236 |
|
$ |
1,942,657 |
|
$ |
1,708,773 |
|
||||
GAAP operating expenses |
$ |
334,902 |
|
$ |
299,649 |
|
$ |
1,279,794 |
|
$ |
1,174,108 |
|
||||
Research and development (1,2) |
|
(6,461 |
) |
|
(6,997 |
) |
|
(28,822 |
) |
|
(31,402 |
) |
||||
Sales and marketing (1,2) |
|
(15,565 |
) |
|
(11,515 |
) |
|
(57,891 |
) |
|
(48,048 |
) |
||||
General and administrative (1,2) |
|
(21,628 |
) |
|
(34,588 |
) |
|
(81,042 |
) |
|
(92,291 |
) |
||||
Amortization of acquired intangible assets |
|
(6,263 |
) |
|
(3,506 |
) |
|
(22,087 |
) |
|
(15,757 |
) |
||||
Valuation adjustment on acquired deferred commission |
|
- |
|
|
22 |
|
|
24 |
|
|
128 |
|
||||
Change in fair value of contingent consideration |
|
3,054 |
|
|
18,258 |
|
|
3,054 |
|
|
18,258 |
|
||||
Non-GAAP operating expenses |
$ |
288,039 |
|
$ |
261,323 |
|
$ |
1,093,030 |
|
$ |
1,004,996 |
|
||||
GAAP financial and other income, net |
$ |
(16,938 |
) |
$ |
2,635 |
|
$ |
(58,872 |
) |
$ |
(22,473 |
) |
||||
Amortization of discount and loss of extinguishment on debt |
|
(430 |
) |
|
(1,182 |
) |
|
(1,834 |
) |
|
(4,668 |
) |
||||
Realized loss on marketable securities, net |
|
- |
|
|
(12,271 |
) |
|
- |
|
|
(12,271 |
) |
||||
Change in fair value of contingent consideration |
|
- |
|
|
- |
|
|
(115 |
) |
|
(817 |
) |
||||
Non-GAAP financial and other income, net |
|
(17,368 |
) |
|
(10,818 |
) |
|
(60,821 |
) |
|
(40,229 |
) |
||||
GAAP taxes on income |
$ |
71,741 |
|
$ |
38,378 |
|
$ |
162,238 |
|
$ |
119,399 |
|
||||
Tax adjustments re non-GAAP adjustments |
|
(22,878 |
) |
|
4,464 |
|
|
19,787 |
|
|
41,937 |
|
||||
Non-GAAP taxes on income |
$ |
48,863 |
|
$ |
42,842 |
|
$ |
182,025 |
|
$ |
161,336 |
|
||||
GAAP net income |
$ |
99,509 |
|
$ |
81,652 |
|
$ |
442,588 |
|
$ |
338,301 |
|
||||
Amortization of acquired intangible assets |
|
25,855 |
|
|
21,696 |
|
|
115,867 |
|
|
92,445 |
|
||||
Valuation adjustment on acquired deferred commission |
|
- |
|
|
(22 |
) |
|
(24 |
) |
|
(128 |
) |
||||
Share-based compensation (1) |
|
49,720 |
|
|
47,298 |
|
|
187,717 |
|
|
180,504 |
|
||||
Acquisition related expenses (2) |
|
438 |
|
|
13,534 |
|
|
3,167 |
|
|
13,987 |
|
||||
Amortization of discount and loss of extinguishment on debt |
|
430 |
|
|
1,182 |
|
|
1,834 |
|
|
4,668 |
|
||||
Realized loss on marketable securities, net |
|
- |
|
|
12,271 |
|
|
- |
|
|
12,271 |
|
||||
Change in fair value of contingent consideration |
|
(3,054 |
) |
|
(18,258 |
) |
|
(2,939 |
) |
|
(17,441 |
) |
||||
Tax adjustments re non-GAAP adjustments |
|
22,878 |
|
|
(4,464 |
) |
|
(19,787 |
) |
|
(41,937 |
) |
||||
Non-GAAP net income |
$ |
195,776 |
|
$ |
154,889 |
|
$ |
728,423 |
|
$ |
582,670 |
|
||||
GAAP diluted earnings per share |
$ |
1.54 |
|
$ |
1.24 |
|
$ |
6.76 |
|
$ |
5.11 |
|
||||
Non-GAAP diluted earnings per share |
$ |
3.02 |
|
$ |
2.36 |
|
$ |
11.12 |
|
$ |
8.79 |
|
||||
Shares used in computing GAAP diluted earnings per share |
|
64,802 |
|
|
65,749 |
|
|
65,506 |
|
|
66,265 |
|
||||
Shares used in computing non-GAAP diluted earnings per share |
|
64,802 |
|
|
65,749 |
|
|
65,506 |
|
|
66,265 |
|
||||
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, |
|||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||
Cost of cloud revenue |
$ |
3,520 |
$ |
4,605 |
|
$ |
12,487 |
$ |
10,965 |
|
||||
Cost of services revenue |
|
2,966 |
|
3,142 |
|
|
10,472 |
|
11,906 |
|
||||
Cost of product revenue |
|
18 |
|
(15 |
) |
|
108 |
|
(121 |
) |
||||
Research and development |
|
6,461 |
|
6,997 |
|
|
28,492 |
|
31,402 |
|
||||
Sales and marketing |
|
15,554 |
|
11,515 |
|
|
57,230 |
|
48,023 |
|
||||
General and administrative |
|
21,201 |
|
21,054 |
|
|
78,928 |
|
78,329 |
|
||||
$ |
49,720 |
$ |
47,298 |
|
$ |
187,717 |
$ |
180,504 |
|
|||||
(2) |
Acquisition related expenses |
|||||||||||||
Quarter ended |
Year to date |
|||||||||||||
December 31, |
December 31, |
|||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||
Cost of cloud revenue |
$ |
- |
$ |
- |
|
$ |
62 |
$ |
- |
|
||||
Research and development |
|
- |
|
- |
|
|
330 |
|
- |
|
||||
Sales and marketing |
|
11 |
|
- |
|
|
661 |
|
25 |
|
||||
General and administrative |
|
427 |
|
13,534 |
|
|
2,114 |
|
13,962 |
|
||||
$ |
438 |
$ |
13,534 |
|
$ |
3,167 |
$ |
13,987 |
|
|||||
NICE LTD. AND SUBSIDIARIES |
||||||||||||||||
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA |
||||||||||||||||
U.S. dollars in thousands |
||||||||||||||||
Quarter ended |
Year to date |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Unaudited |
Audited |
Unaudited |
Audited |
|||||||||||||
GAAP net income |
$ |
99,509 |
|
$ |
81,652 |
|
$ |
442,588 |
|
$ |
338,301 |
|
||||
Non-GAAP adjustments: |
||||||||||||||||
Depreciation and amortization |
|
48,776 |
|
|
41,212 |
|
|
205,020 |
|
|
167,360 |
|
||||
Share-based Compensation |
|
48,185 |
|
|
46,170 |
|
|
182,067 |
|
|
176,658 |
|
||||
Financial and other expense/ (income), net |
|
(16,938 |
) |
|
2,635 |
|
|
(58,872 |
) |
|
(22,473 |
) |
||||
Acquisition related expenses |
|
438 |
|
|
13,534 |
|
|
3,167 |
|
|
13,987 |
|
||||
Change in fair value of contingent consideration |
|
(3,054 |
) |
|
(18,258 |
) |
|
(3,054 |
) |
|
(18,258 |
) |
||||
Valuation adjustment on acquired deferred commission |
|
- |
|
|
(22 |
) |
|
(24 |
) |
|
(128 |
) |
||||
Taxes on income |
|
71,741 |
|
|
38,378 |
|
|
162,238 |
|
|
119,399 |
|
||||
Non-GAAP EBITDA |
$ |
248,657 |
|
$ |
205,301 |
|
$ |
933,130 |
|
$ |
774,846 |
|
||||
NICE LTD. AND SUBSIDIARIES |
||||||||||||||||
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS |
||||||||||||||||
U.S. dollars in thousands |
||||||||||||||||
Quarter ended |
Year to date |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Unaudited |
Audited |
Unaudited |
Audited |
|||||||||||||
Free cash flow (a) |
||||||||||||||||
Net cash provided by operating activities |
$ |
249,522 |
|
$ |
180,496 |
|
$ |
832,641 |
|
$ |
561,430 |
|
||||
Purchase of property and equipment |
|
(7,567 |
) |
|
(6,079 |
) |
|
(34,962 |
) |
|
(29,205 |
) |
||||
Capitalization of internal use software costs |
|
(16,819 |
) |
|
(13,868 |
) |
|
(64,805 |
) |
|
(54,974 |
) |
||||
Free Cash Flow |
$ |
225,136 |
|
$ |
160,549 |
|
$ |
732,874 |
|
$ |
477,251 |
|
||||
(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. |
||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220822205/en/
Contacts
Investor Relations Contact
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET
Corporate Media Contact
Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET
