Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation (NASDAQ: NICE)
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: THE Cloud Leader Powering AI in Three Large Specialized Markets
>3,300 >8,700 R&D Professionals $2.6B Employees Revenue* >150 $2.0B Countries Cloud ARR >85% Fortune $2.3B Recurring 100 Customers Revenue* 25K THE Cloud Leader Powering AI in $764M Customers Cash from Three Large Specialized Markets Operations* *Financial figures for last 12 months ended September
Slide 4: This is Customer Experience, Financial Crime & Compliance, Public Safety
CUSTOMER FINANCIAL CRIME PUBLIC SAFETY EXPERIENCE & COMPLIANCE & JUSTICE This is CREATING OUTSMARTING DRIVING Extraordinary Financial Crime Digital Policing Customer with Intelligent Transformation Experiences Solutions 4
Slide 5: Our Strategic Pillars
Analytics Our Digital STRATEGIC Cloud PILLARS AI & Automation 5
Slide 6: Financial Overview
FINANCIAL OVERVIEW Quarterly Results 6
Slide 7: Q3-24 Financial Highlights
Q3-24 Financial Highlights Q3 2024 Results Quarterly Increase Results (Decrease) Y/Y Total Revenue $690M 15% Cloud Revenue $500M 24% Non-GAAP Operating Income $221M 20% Non-GAAP Operating Margin 32.0% 140 bps Non-GAAP EPS $2.88 27% Cash from Operations $159M 32% 7
Slide 8: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment Quarterly Revenue Annual Revenue $2,378M $690M $659M $664M $2,181M $623M $403M $111M $601M $581M $108M $109M $569M $572M $1,926M $555M $101M $412M $527M $531M $103M $100M $100M $102M $354M $103M $106M $102M 16% YoY 12% YoY Growth Growth $556M $578M $1,974M $551M
Slide 9: Revenue Breakdown by Business Model
Revenue Breakdown by Business Model Quarterly Revenue Annual Revenue $690M $659M $664M $40M $623M $35M $42M $601M $2,378M $581M $32M $569M $572M $38M $2,181M $154M $555M $150M $40M $148M $527M $531M $49M $44M $149M $59M $236M $52M $162M $1,926M $76M $160M $641M $159M $242M $161M $160M $165M $650M $1
Slide 10: Recurring Revenue as a Percent of Total Revenue
Recurring Revenue as a Percent of Total Revenue Quarterly Annual 88% 88% 89% 89% 86% 87% 87% 85% 85% 83% 82% 82% 79% 80% 17% 16% 17% 20% 19% 20% 22% 21% 20% 24% 22% 23% 23% 27% 69% 71% 73% 72% 64% 66% 67% 67% 60% 63% 59% 56% 59% 53% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 2
Slide 11: Revenue Breakdown by Geographic Region - Q3 2024
Revenue Breakdown by Geographic Region - Q3 2024 85% 10% AMERICAS EMEA $587M, +17% YoY $69M, +14% YoY 5% APAC $34M, -12% YoY 11
Slide 12: Healthy Gross Margins (Non-GAAP)
Healthy Gross Margins (Non-GAAP) 68.6% 70.1% 70.4% 70.5% 70.0% 70.3% 70.4% 71.1% 69.8% 70.2% 69.7% 67.7% 70.0% 70.5% Cloud GM Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 2021 2022 2023 72.2% 74.5% 74.0% 73.3% 71.8% 72.2% 73.6% 72.0% 70.6% 70.2% 71.9% 73.3% 73.5% 72.4% Services
Slide 13: Non-GAAP Operating Expenses as a Percent of Total Revenue
Non-GAAP Operating Expenses as a Percent of Total Revenue Quarterly Annual 44.8% 44.3% 44.8% 43.9% 44.3% 44.4% 43.1% 42.4% 42.3% 41.7% 41.9% 40.6% 40.3% 39.1% 7.7% 7.3% 8.0% 8.0% 7.9% 8.6% 7.7% 7.1% 7.5% 7.5% 7.7% 8.0% 7.4% 7.6% 24.2% 24.6% 24.8% 23.5% 24.0% 22.6% 23.2% 23.1% 21.4% 22.5% 22.4% 20.6%
Slide 14: Strong Operating Leverage Evident in Growing Profitability
Strong Operating Leverage Evident in Growing Profitability Non-GAAP 40% Operating Margin $240 40% $740 $221M $704M $720 $700 38% $200M $202M $220 38% $625M $680 $660 36% $184M $187M $200 36% $544M $640 $620 $600 $163M $163M $170M $580 $560 $149M $154M $159M $180 $540 34% 32.0% $160 34% $520 $500 $48
Slide 15: Non-GAAP Net Income and EPS Reflect NICE's Financial Strength
Non-GAAP Net Income and EPS Reflect NICE’s Financial Strength 15% YoY Growth Non-GAAP Net Income 24% YoY $583M Growth $507M $187M $436M $172M $174M $151M $155M $135M $136M $142M $128M $120M $123M Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 2021 2022 2023 27% YoY 15% YoY Non-GAA
Slide 16: Growing Cash From Operations and Free Cash Flow
Growing Cash From Operations and Free Cash Flow LTM LTM LTM Operating Cash Flow and Margin $M Q3-24 Q3-23 $900.0 28.5% 29.0% 30.0% $800.0 25.2% $764M 24.0% $725M Operating Cash Flow 763.6 557.6 $700.0 23.6% 25.0% $621M $600.0 $558M $561M 20.0% Capital expenditure of property and equipment (33.5) (34
Slide 17: Increasing Share Repurchases
Increasing Share Repurchases Quarterly Annual $146M $288M $90M $86M $69M $64M $65M $65M $145M $42M $34M $73M $22M $25M Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 2021 2022 2023 17
Slide 18: Industry Leading Strong Net Cash Position
Industry Leading Strong Net Cash Position* Quarterly Annual $1,141M $1,119M $1,107M $1,068M $1,029M $1,045M$1,046M $1,029M $950M $920M $892M $895M $892M $863M $863M 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2021 1
Slide 19: Outlook (Non-GAAP)
Outlook* (Non-GAAP) FY 2024 Revenue ($M) 2,715 – 2,735 Revenue Growth 15% YoY at Midpoint EPS ($) 10.95 – 11.15 EPS Growth 26% YoY at Midpoint *The outlook is provided as of Nov. 14, 2024. There is no guarantee that the Company will change or update these figures in this presentation should a need a
Slide 20: Thank You
Thank You NICE --)
Slide 21: Appendix
as Oo c o or or < 21
Slide 22: GAAP and Non-GAAP Income Statement
GAAP and Non-GAAP Income Statement USD in thousands (except EPS) Quarter ended Year to date September 30, September 30, 2024 2023 2024 2023 GAAP revenues $ 689,963 $ 601,344 $ 2,013,672 $ 1,754,316 Non-GAAP revenues $ 689,963 $ 601,344 $ 2,013,672 $ 1,754,316 GAAP cost of revenue $ 229,686 $ 190,986
Slide 23: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) Quarter ended Year to date September 30, September 30, 2024 2023 2024 2023 GAAP net income $ 120,921 $ 92,353 $ 343,079 $ 256,649 Amortization of acquired intangible assets 29,891 22,535 90,012 70,749 Valuation adjustment on ac
Slide 24: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (1) Share-based compensation Quarter ended Year to date September 30, September 30, 2024 2023 2024 2023 Cost of cloud revenue $ 3,175 $ 2,160 $ 8,967 $ 6,360 Cost of services revenue 2,511 3,016 7,506 8,764 Cost of product revenue 30 (384)
Slide 25: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation USD in thousands Quarter ended Year to date September 30, September 30, 2024 2023 2024 2023 Unaudited Unaudited Unaudited Unaudited GAAP net income $ 120,921 $ 92,353 $ 343,079 $ 256,649 Non-GAAP adjustments: Depreciation and amortization 52,964 42,269 156,244 126,148
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation USD in thousands Quarter ended Year to date September 30, September 30, 2024 2023 2024 2023 Unaudited Unaudited Unaudited Unaudited Net cash provided by operating activities $ 158,961 $ 120,610 $ 583,119 $ 380,934 Purchase of property and equipment (10,419) (5,507) (27,
Slide 27: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands September 30, December 31, September 30, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 666,734 $ 511,795 Trade pay