Slide 1: 2022 Second Quarter Results
2022 Second Quarter Results Ended June 30, 2022
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: Q2 2022 Highlights
Q2 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 4
Slide 5: Q2 2022 Highlights (Non-GAAP)
Q2 2022 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud gross margin Gross profit increased increased 16% to increased 27% to increased 240 bps to 17% to $389M; $531M; $311M; 70.1%; compared to $332M in compared to $459M compared to $245M compared to 67.7% in Q2 2021 in Q2 2021 in Q2 2021 Q2
Slide 6: Impressive Growth and Execution
Impressive Growth and Execution TOTAL REVENUE (Non-GAAP, $M) • Increase in total revenue driven by further growth in cloud 531 revenue 16% • Cloud revenue of $311M represented a record 59% of total 459 revenue in Q2 2022 compared to 54% in Q2 2021; • Recurring revenue accounted for 83% of total reve
Slide 7: Income Statement
Q2 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 7
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 Year to date June 30, June 30, 2022 2021 2022 2021 GAAP revenues $ 530,581 $ 456,827 $ 1,058,010 $
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 Year to date June 30, June 30, 2022 2021 2022 2021 GAAP taxes on income $ 19,068 $ 10,515 $ 33,977 $ 21,383
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 Year to date June 30, June 30, 2022 2021 2022 2021 Cost of cloud revenue $ 1,741 $ 1,676 $ 4,070 $ 3,170 C
Slide 11: Q2 2022 Revenue Breakdown by Region
Q2 2022 Revenue Breakdown by Region 84% 10% (Non-GAAP) AMERICAS EMEA* $444M, +21% YoY $53M, -18% YoY 6% APAC* $34M, +22% YoY *At constant currency, EMEA decreased 12% y/y and APAC increased 25% y/y 11
Slide 12: Q2 2022 Revenue Breakdown by Business Unit
Q2 2022 Revenue Breakdown 81% 19% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $429M, +13% YoY $102M, +31% YoY 12
Slide 13: Gross Profit and Gross Margin Q2 2022 (Non-GAAP)
Gross Profit and Gross Margin Q2 2022 (Non-GAAP) $500 79.0% 17% $450 77.0% $389M $400 $332M $350 75.0% 73.3% $300 73.0% $250 71.0% 72.2% $200 $150 69.0% $100 67.0% $50 65.0% $0 Q2 21 Q2 22 Gross Profit Gross Margin
Slide 14: Gross Margin Q2 2022 (Non-GAAP)
Gross Margin Q2 2022 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 88.4%| -290bp 74.5%| +80bp 70.1%| +240bp Product GM Product 91.3% GM 88.4% Services Services GM GM Cloud Cloud 73.7% 74.5% GM GM 70.1% 67.7% Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 14
Slide 15: Operating Income and Operating Margin Q2 2022 (Non-GAAP)
Operating Income and Operating Margin Q2 2022 (Non-GAAP) $200 34.0% $180 19% 32.0% $154M $160 $130M $140 30.0% 29.0% $120 28.0% $100 28.2% 26.0% $80 $60 24.0% $40 22.0% $20 20.0% $0 Q2 21 Q2 22 Operating Income Operating Margin 15
Slide 16: Cost Ratios Q2 2022 (Non-GAAP)
Cost Ratios Q2 2022 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M S&M 24.6% 23.8% R&D R&D 15.1% 14.8% 2.4%* 2.4%* 12.4% G&A G&A 12.7% 7.5% 7.3% Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 16 * R&D capitalization
Slide 17: Balance Sheet and Cash Flow Analysis
Q2 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 17
Slide 18: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 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 June 30, December 31, June 30, December 31, 2022 2021 2022 2021 Unaudited Audited
Slide 19: Cash Flow From Operations
Cash Flow From Operations $M Q2 22 Q2 21 %∆ H1 22 H1 21 %∆ Cash flow from operations 16.0 81.4 (80%) 208.7 245.7 (15%) - Capital expenditure 5.3 10.6 (50%) 14.9 13.0 15% - Capitalization of software development 13.1 11.2 17% 23.7 21.3 12% Cash flow from operations after capex & software capitalizati
Slide 20: Cash Movement and Liquidity (USD in Millions)
Cash Movement and Liquidity (USD in Millions) June 30, 2022 98 209 40 1,435 1,425 39 20 2 Liquidity Operating CF Buyback Purchase of CAPEX* Repayment of Other Liquidity 12/31/21 investments, Debt 6/30/22 net 20 * CAPEX movement includes R&D capitalization
Slide 21: Outlook
Q2 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 21
Slide 22: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q3 2022 FY 2022 Revenue ($M) 543 – 553 2,168 – 2,188 EPS ($) 1.82 – 1.92 7.33 – 7.53 *The outlook is provided as of August 18, 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 out
Slide 23: Thank You
Thank You