Slide 1: 2021 First Quarter Results
2021 FIRST QUARTER RESULTS Ended March 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
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 disc
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 5: Q1 2021 Highlights (Non-GAAP)
Q1 2021 Highlights (Non-GAAP) Total revenue Cloud revenue Q1 Cloud gross Recurring revenue increased 11% to increased 33% margin increased increased to 78% $457M; compared compared to Q1 470 bps to 67.6%; of total revenue; to Q1 2020 2020; compared to compared to 75% Representing 50% 62.9% in Q1 las
Slide 6: Income Statement
Q1 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 7: Solid Growth and Execution
Solid Growth and Execution REVENUES (Non-GAAP, $M) 457 • Solid growth in total revenue driven by 33% 411 increase in cloud revenue in Q1 • Cloud revenue of $230M represented 50% of total revenue in Q1 11% • Recurring revenue accounted for 78% of total revenue for Q1 Q1 20 Q1 21 EARNINGS PER SHARE (N
Slide 8: GAAP and Non-GAAP Income Statement (USD in thousands except EPS)
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 March 31, 2021 2020 GAAP revenues $ 455,021 $ 410,428 Valuation adjustment on acquired deferred cl
Slide 9: 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 March 31, 2021 2020 GAAP financial and other expense, net $ 3,394 $ 1,650 Amortization of discount on debt (
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 (1) Share-based Compensation Quarter ended March 31, 2021 2020 Cost of cloud revenue $ 1,494 $ 844 Cost of services revenue 2,435 1,600 Cost of produ
Slide 11: Q1 2021 Revenue Breakdown by Region (Non-GAAP)
Q1 2021 Revenue Breakdown by Region (Non-GAAP) 82% 12% AMERICAS EMEA $374M, +11% YoY $56M, 16% YoY 6% APAC $27M, +6% YoY
Slide 12: Q1 2021 Revenue Breakdown by Business Unit (Non-GAAP)
Q1 2021 Revenue Breakdown by Business Unit (Non-GAAP) 19% FINANCIAL CRIME & COMPLIANCE $88M, +6% YoY 81% CUSTOMER ENGAGEMENT $369M, +13% YoY
Slide 13: Gross Profit and Gross Margin Q1 2021 (Non-GAAP)
Gross Profit and Gross Margin Q1 2021 (Non-GAAP) 80.0% $380 78.0% $332M $330 76.0% $292M $280 74.0% 72.7% 72.0% $230 Axis Title 70.0% 70.9% $180 68.0% 66.0% $130 64.0% $80 62.0% 60.0% $30 Q1 20 Q1 21 Gross Profit Gross Margin
Slide 14: Gross Margin Q1 2021 (Non-GAAP)
Gross Margin Q1 2021 (Non-GAAP) PRODUCT MARGIN SERVICES MARGIN CLOUD MARGIN 92.4%| +1bp 72.0%| +113bp 67.6%| +470bp Product GM Product GM 92.4% 92.4% Service GM Service GM 72.0% 70.9% Cloud Cloud GM GM 67.6% 62.9% Q1 20 Q1 21 Q1 20 Q1 21 Q1 20 Q1 21 • Services gross margin increased as a result of c
Slide 15: Operating Income and Operating Margin Q1 2021 (Non-GAAP)
Operating Income and Operating Margin Q1 2021 (Non-GAAP) $150 34.0% $129M $130 32.0% $111M 30.0% $110 28.2% Axis Title 28.0% $90 26.0% 26.9% $70 24.0% $50 22.0% 20.0% $30 Q1 20 Q1 21 Operating Income Operating Margin • Operating income increased as a result of an increase in revenue coupled with cos
Slide 16: Cost Ratios Q1 2021 (Non-GAAP)
Cost Ratios Q1 2021 (Non-GAAP) R&D S&M G&A As % of revenue As % of revenue As % of revenue S&M S&M 23.6% 23.0% R&D R&D 14.5% 14.3% 2.3%* 2.2%* 12.1% G&A G&A 12.2% 8.8% 8.8% Q1 20 Q1 21 Q1 20 Q1 21 Q1 20 Q1 21 * R&D capitalization
Slide 17: Balance Sheet and Cash Flow Analysis
Q1 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 18: Condensed Consolidated Balance Sheet (USD in thousands)
Condensed Consolidated Balance Sheet (USD in thousands) March 31, December 31, 2021 2020 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 451,128 $ 442,267 Short-term investments 1,110,057 1,021,613 Trade receivables 322,658 303,100 Prepaid expenses and other current assets 176,9
Slide 19: Cash Flow From Operations
Cash Flow From Operations $M Q1 21 Q1 20 %∆ Cash flow from operations 164.2 154.8 6% - Capital expenditure 2.3 9.6 (76%) - Capitalization of software development 10.1 9.3 9% Cash flow from operations after capex & software capitalization 151.8 135.9 12% Cash flow from operation after capex and softw
Slide 20: Cash Movement and Liquidity (USD in millions)
Cash Movement and Liquidity (USD in millions) March 31, 2021 Liquidity 12/31/20 Operating CF Other CAPEX* Buyback Liquidity 3/31/21 $1,464 $164 ($11) ($12) ($44) $1,561 * CAPEX movement includes R&D capitalization
Slide 21: Outlook
Q1 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 22: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q2 2021 FY 2021 Revenue ($M) 445 - 455 1,800 - 1,820 EPS ($) 1.45 - 1.55 6.19 - 6.39 The outlook is provided as of May 13, 2021. 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 outlook
Slide 23: NICE
NICE