Slide 1: 2022 First Quarter Results
2022 First Quarter Results Ended March 31, 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: Q1 2022 Highlights
Q1 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 4
Slide 5: Q1 2022 Highlights (Non-GAAP)
Q1 2022 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud gross margin Total gross profit increased 15% to increased 28% to increased 100 bps to increased 16% to $527M; $295M; 68.6%; $385M; compared to $457M compared to $230M compared to 67.6% in compared to $332M in in Q1 2021 in Q1 2021 Q1 2
Slide 6: Impressive Growth and Execution
Impressive Growth and Execution • Significant growth in total revenue driven by growth in cloud and TOTAL REVENUE (Non-GAAP, $M) product revenue 527 • Cloud revenue of $295M represented a record 56% of total 15% revenue in Q1 2022 compared to 50% in Q1 2021; 457 • Recurring revenue accounted for 79%
Slide 7: Income Statement
Q1 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 March 31, 2022 2021 GAAP revenues $ 527,429 $ 455,021 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 U.S. dollars in thousands (except per share amounts) Quarter ended March 31, 2022 2021 GAAP financial and other (income)/expense, net $ (486) $ 3,394 Amortization of discount and loss of
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 U.S. dollars in thousands (1) Share-based Compensation Quarter ended March 31, 2022 2021 Cost of cloud revenue $ 2,324 $ 1,494 Cost of services revenue 2,967 2,435 Cost of product revenue
Slide 11: Q1 2022 Revenue Breakdown by Region (Non-GAAP)
Q1 2022 Revenue Breakdown by Region 81% 14% (Non-GAAP) AMERICAS EMEA $426M, +14% YoY $72M, +29% YoY 5% APAC $29M, +7% YoY 11
Slide 12: Q1 2022 Revenue Breakdown by Business Unit (Non-GAAP)
Q1 2022 Revenue Breakdown 80% 20% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $421M, +14% YoY $106M, +20% YoY 12
Slide 13: Gross Profit and Gross Margin Q1 2022 (Non-GAAP)
Gross Profit and Gross Margin Q1 2022 (Non-GAAP) 100.0% $600 95.0% $500 90.0% 16% 85.0% 13 $385M $400 80.0% $332M Axis Title 75.0% 73.0% $300 70.0% 72.7% $200 65.0% 60.0% $100 55.0% 50.0% $0 Q1 21 Q1 22 Gross Profit Gross Margin
Slide 14: Gross Margin Q1 2022 (Non-GAAP)
Gross Margin Q1 2022 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 91.6%| -80bp 72.2%| +20bp 68.6%| +100bp Product Product GM GM 92.4% 91.6% Services Services GM GM Cloud Cloud 72.0% 72.2% GM GM 67.6% 68.6% Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 14
Slide 15: Operating Income and Operating Margin Q1 2022 (Non-GAAP)
Operating Income and Operating Margin Q1 2022 (Non-GAAP) 50.0% $200 $180 45.0% 16% $149M $160 40.0% $140 $129M 35.0% $120 30.0% 28.3% $100 28.2% $80 25.0% $60 20.0% $40 15.0% $20 10.0% $0 Q1 21 Q1 22 Operating Income Operating Margin 15
Slide 16: Cost Ratios Q1 2022 (Non-GAAP)
Cost Ratios Q1 2022 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M S&M 24.2% 23.6% R&D R&D 14.3% 14.9% 2.0%* 2.2%* G&A 12.9% 8.8% G&A 12.1% 7.7% Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 16 * R&D capitalization
Slide 17: Balance Sheet and Cash Flow Analysis
Q1 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 March 31, December 31, March 31, December 31, 2022 2021 2022 2021 Unaudited Audit
Slide 19: Cash Flow From Operations
Cash Flow From Operations $M Q1 22 Q1 21 %∆ Cash flow from operations 192.7 164.2 17% - Capital expenditure 9.6 2.3 312% - Capitalization of software development 10.7 10.1 5% Cash flow from operations after capex & software capitalization 172.4 151.8 14% Cash flow from operation after capex and soft
Slide 20: Cash Movement and Liquidity (USD in Millions)
Cash Movement and Liquidity (USD in Millions) March 31, 2022 ($64M) $193M ($20M) ($18M) $1,491M $1,425M ($25M) Liquidity Operating CF Buyback CAPEX* Repayment of Other Liquidity 12/31/21 Debt 3/31/22 20 * CAPEX movement includes R&D capitalization
Slide 21: Outlook
Q1 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 21
Slide 22: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q2 2022 FY 2022 Revenue ($M) 520 – 530 2,160 – 2,180 EPS ($) 1.75 – 1.85 7.25 – 7.45 *The outlook is provided as of May 12, 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 outloo
Slide 23: Thank You
Thank You