Slide 1: 2021 Fourth Quarter and Full Year Results
2021 Fourth Quarter and Full Year Results Ended December 31, 2021
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer This presentation 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,” “inten
Slide 3: 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 expenses, amortization of discount on debt and loss from exting
Slide 4: Q4 and Full Year 2021 Highlights
Q4 and Full Year 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 4
Slide 5: FY 2021 Highlights (Non-GAAP)
FY 2021 Highlights (Non-GAAP) Record total revenue Cloud revenue Cloud gross margin Recurring revenue of $1,926M; surpassed the $1bn increased 206 bps to was 80% of total an increase of 16% mark totaling a record 67.7%; revenue; compared to FY 2020 $1,023M; compared to 65.6% in compared to 79% in FY
Slide 6: Q4 2021 Highlights (Non-GAAP)
Q4 2021 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud gross margin Total gross profit increased 18% to a increased 28% to a increased 57 bps to increased 19% to quarterly record of quarterly record of 68.2%; $376M; $515M; $285M; compared to 67.6% in compared to $317M in compared to $438M c
Slide 7: Solid Growth and Execution
Solid Growth and Execution • Significant growth in total revenue driven by growth in cloud and TOTAL REVENUE (Non-GAAP, $M) 1,926 product revenue 1,657 • Double-digit year-over-year total revenue growth in every quarter 16% of FY 2021 • Cloud revenue of $1,023 million in FY 2021 represented 53% of t
Slide 8: Q4 and Full Year 2021 Highlights
Q4 and Full Year 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 8
Slide 9: GAAP and Non-GAAP Income Statement
GAAP and Non-GAAP Income Statement (USD in thousands except EPS) NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S. dollars in thousands (except per share amounts) Quarter ended Year to date December 31, December 31, 2021 2020 2021 2020 GAAP revenues $ 515,473 $ 434,581 $ 1,9
Slide 10: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (except per share amounts) Quarter ended Year to date December 31, December 31, 2021 2020 2021 2020 GAAP financial and other expense, net $ (7,696) $
Slide 11: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (1) Share-based Compensation Quarter ended Year to date December 31, December 31, 2021 2020 2021 2020 Cost of cloud revenue 2,661 1,457 7,949 4,058 C
Slide 12: FY 2021 Revenue Breakdown by Region
FY 2021 Revenue Breakdown by Region 82% 12% (Non-GAAP) AMERICAS EMEA $1,571M, +15% YoY $240M, +29% YoY 6% APAC $115M, +4% YoY 12
Slide 13: Q4 2021 Revenue Breakdown by Region
Q4 2021 Revenue Breakdown by Region 82% 12% (Non-GAAP) AMERICAS EMEA $422M, +16% YoY $63M, +30% YoY 6% APAC $30M, +15% YoY 13
Slide 14: FY 2021 Revenue Breakdown by Business Unit
FY 2021 Revenue Breakdown 82% 18% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $1,572M, +17% YoY $354M, +15% YoY 14
Slide 15: Q4 2021 Revenue Breakdown by Business Unit
Q4 2021 Revenue Breakdown 81% 19% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $420M, +16% YoY $95M, +24% YoY 15
Slide 16: Gross Profit and Gross Margin Q4 and FY 2021 (Non-GAAP)
Gross Profit and Gross Margin Q4 and FY 2021 (Non-GAAP) 100.0% $60080.0% $1,630 95.0% 78.0% $1,398M $1,430 $500 90.0% 76.0% $1,182M $1,230 85.0% 74.0% $376M 16 $400 72.6% $1,030 80.0% 72.0% $317M Axis Title Axis Title 75.0% 73.0% $30070.0% 71.3% $830 70.0% 68.0% 72.2% $630 $200 65.0% 66.0% $430 60.0
Slide 17: Gross Margin FY 2021 (Non-GAAP)
Gross Margin FY 2021 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 91.4%| +85bp 73.3%| +57bp 67.7%| +206bp Product Product GM GM 90.5% 91.4% Services Services GM GM Cloud 72.7% 73.3% Cloud GM GM 67.7% 65.6% FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 17
Slide 18: Gross Margin Q4 2021 (Non-GAAP)
Gross Margin Q4 2021 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 91.7%| +191bp 74.1%| +19bp 68.2%| +57bp Product Product GM GM 89.8% 91.7% Services Services GM GM Cloud Cloud 73.9% 74.1% GM GM 67.6% 68.2% Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 18
Slide 19: Operating Income and Operating Margin Q4 and FY 2021 (Non-GAAP)
Operating Income and Operating Margin Q4 and FY 2021 (Non-GAAP) 50.0% $200 32.0% $600 16% $544M $180 45.0% 30.0% $470M $500 11% $160 40.0% $146M $132M $140 28.0% $400 35.0% 28.4% 28.2% $120 Axis Title Axis Title 30.0% $100 26.0% $300 28.2% 30.1% $80 25.0% 24.0% $200 $60 20.0% $40 22.0% $100 15.0% $2
Slide 20: Cost Ratios FY 2021 (Non-GAAP)
Cost Ratios FY 2021 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M S&M 23.5% 22.7% R&D R&D 14.8% 15.0% 2.4%* 2.2%* G&A G&A 12.4% 12.8% 8.0% 7.8% FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 20 * R&D capitalization
Slide 21: Cost Ratios Q4 2021 (Non-GAAP)
Cost Ratios Q4 2021 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M S&M 24.2% 23.1% R&D R&D 14.8% 15.0% 2.0%* 2.4%* G&A 12.7% G&A 11.8% 7.9% 7.2% Q4 20 Q4 21 Q4 20 Q4 21 Q4 20 Q4 21 21 * R&D capitalization
Slide 22: Q4 and Full Year 2021 Highlights
Q4 and Full Year 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 22
Slide 23: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet (USD in thousands except EPS) NICE LTD. AND SUBSIDIARIES NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands U.S. dollars in thousands December 31, December 31, December 31, December 31,
Slide 24: Cash Flow From Operations
Cash Flow From Operations $M Q4 21 Q4 20 %∆ FY 21 FY 20 %∆ Cash flow from operations 112.7 166.9 (32%) 461.8 480.3 (4%) - Capital expenditure 3.7 2.5 45% 24.8 24.2 2% - Capitalization of software development 10.5 10.3 1% 42.4 39.1 9% Cash flow from operations after capex & software capitalization 98
Slide 25: Cash Movement and Liquidity (USD in Millions)
Cash Movement and Liquidity (USD in Millions) December 31, 2021 Purchase of Acquisitions subsidiaries shares Operating CF ($143M) from non-controlling $462M interest Other Repayment of CAPEX* ($14M) ($31M) Buyback Debt ($67M) ($73M) ($177M) Proceeds from Option Exercises $4M Liquidity 12/31/20 Liqui
Slide 26: Q4 and Full Year 2021 Highlights
Q4 and Full Year 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 26
Slide 27: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q1 2022 FY 2022 Revenue ($M) 505 – 515 2,140 – 2,160 EPS ($) 1.65 – 1.75 7.07 – 7.27 *The outlook is provided as of February 17, 2022. There is no guarantee that the Company will change or update these figures in this presentation should a need arise in the future to update the o
Slide 28: Thank You
Thank You