Slide 1: Investor and Analyst Day
INVESTOR AND ANALYST DAY JUNE 11, 2024
Slide 2: The Largest CX Event
The Largest CX Event C O M PA N I E S AT T E N D E E S REPRESENTED 2,500+ SESSIONS SPONSORS 150+ CUSTOMER 30+ 550+ SPEAKERS 90+ NICE Unveils NICE Awarded NICE Launches CXone Mpower, Largest Ever 1CX An All-In-One The Ultimate International UCaaS CX-Aware AI Offering CXone Deal
Slide 3: Significant Opportunity for Further Growth Through Three Fundamental Technological Driving Forces
Significant Opportunity for Further Growth Through Three Fundamental Technological Driving Forces C L O U D I F I C AT I O N D I G I TA L I Z AT I O N A I - I Z AT I O N Driving a grand Driving a grand Driving a grand fusion, refactoring, cloud is convergence, digitalization AI-ization is streamlini
Slide 4: Cloudification, Digitalization, AI-ization
C L O U D I F I C AT I O N D I G I TA L I Z AT I O N A I - I Z AT I O N Highest Trailblazing Cloud Win ‘ Digital Rate NICE’s Platform Convergence Strategy Drives Enterprise Demand and Fuels Growth Industry-best Leveraging Economics Immense CX- AI Opportunity
Slide 5: Three Large Growth Markets with Three Market Leading Platforms
C L O U D I F I C AT I O N D I G I TA L I Z AT I O N A I - I Z AT I O N Three Large Growth Markets with Three Market Leading Platforms CUSTOMER FINANCIAL CRIMINAL EXPERIENCE CRIME JUSTICE 10B interactions annually 5B transactions monitored daily 30M+ cases and growing 2T AI-analyzed words/month $6T
Slide 6: Platform Expansion Through Rapid Innovation
Platform Expansion Through Rapid Innovation WEM Analytics Cloud Platform Digital Platform AI Platform < 2015 2016 2017 - 2018 2019 - 2021 2022 Industry’s largest Nexidia acquisition inContact acquisition Brand Embassy WEM portfolio acquisition Contact Engine acquisition MindTouch acquisition Interac
Slide 7: Customer Experience
GROWING TAM DRIVEN BY CLOUD, AI AND DIGITAL ENGAGEMENT Customer Experience From 20% to 80% cloud penetration Exponential growth of interactions Rapidly tapping into labor TAM with AI 2028 2023
Slide 8: Financial Crime & Compliance
GROWING TAM DRIVEN BY CLOUD, AI AND DIGITAL ENGAGEMENT Financial Crime & Compliance Exponential growth in transactions Diversifying beyond the core From FCC to customer lifecycle risk management 2028 2023
Slide 9: Criminal Justice
GROWING TAM DRIVEN BY CLOUD, AI AND DIGITAL ENGAGEMENT Criminal Justice 17K police departments 4K state DA offices Transformation to cloud for digital evidence 2028 2023
Slide 10: Total TAM
GROWING TAM DRIVEN BY CLOUD, AI AND DIGITAL ENGAGEMENT Total TAM 2028 2023
Slide 11: Winning in Cloud, Digital and AI
Winning in CLOUD, DIGITAL and AI CLOUD DIGITAL AI Most complete and scalable Over 80% of Unique Enlighten AI engine platform with CXone interactions are digital Industry’s largest cloud Billions of CX labeled data Massive upgrade to portfolio facilitates massive next-gen digital cross-sell and upsel
Slide 12: NICE's Moat of Differentiation
NICE’S MOAT OF DIFFERENTIATION Specialized Markets Widely Domain Adopted Expertise Platform Data and Knowledge Leading Assets Breadth & Brand Depth of Portfolio
Slide 13: Industry Leading Go-To-Market
GLOBAL PRESENCE MULTIPLE INDUSTRY VERTICALS Banking Insurance Energy Government EMEA AMERICAS APAC Telco Technology Healthcare Media Industry Leading Go-To-Market Drives Growth TOP-TIER CUSTOMERS VAST ECOSYSTEM Over 500 global partners touching more than 70% of deals
Slide 14: Global, Diversified & Seasoned Management Team
Yaron Hertz Barak Eilam Barry Cooper Darren Rushworth President, Americas Chief Executive Officer President, CX President, International 16 years 25 years 13 years 6 years at NICE at NICE at NICE at NICE GLOBAL DIVERSIFIED & Beth Gaspich SEASONED Craig Costigan Chief Financial Officer CEO, NICE Acti
Slide 15: NICE's Path to 5B@R40
NICE’s Path to 5B@R40* Doubling Down Tapping into Architecture- Monetize on Labor TAM Derived Exponentially Platformization with AI Economies of Growing Scale Interactions *$5B total revenue at FCF Rule of 40
Slide 16: Built For Long Term Success in a Rapidly Shifting CX Landscape
Built For Long Term Success in a Rapidly Shifting and Dynamic CX Landscape CXone, the most Billions of widely adopted and historical labeled data expanding digital and AI platform Large and well- diversified customer Decades of domain base expertise Enlighten, the leading Industry leading revenue or
Slide 17: Financial Overview
Financial Overview NICE interactions ssdddauuRuIEEEEEEEE EERE:
Slide 18: NICE is at the Center of a New Era in Enterprise Software
NICE is at the Center of a New Era in Enterprise Software Significant Opportunity for Further Growth Through Three Fundamental Technological Driving Forces Cloudification Digitalization AI-ization 18
Slide 19: Industry Leading Profitable Growth
Industry Leading Profitable Growth Total Revenue Operating Income and Margin Free Cash Flow (Non-GAAP) (Non-GAAP) CAGR 11% CAGR 13% CAGR 11% $2,378M 40% $704M $740 $720 $700 $2,181M 38% $625M $680 $660 $640 $1,926M $620 $477M 36% $544M $600 $580 $560 $417M $1,657M $540 $398M 34% $470M $520 $395M $1,
Slide 20: Revenue Growth Driven by Cloud
Revenue Growth Driven by Cloud 2023 CXone New ACV by GTM Channel $1,582M $153M Total Cloud Revenue CAGR 27% $1,295M $117M $1,023M Partner $67M Direct 63% 37% $786M $37M $1,429M $599M $25M $1,178M $956M $749M $574M 2019 2020 2021 2022 2023 Americas Cloud International Cloud
Slide 21: 2023 New Cloud ACV by Growth Driver
2023 New Cloud ACV by Growth Driver Maintenance Key Growth Drivers Conversions 7% New Existing Conversions New Customers 24% Existing Cloud Expansion 69%
Slide 22: Loyal CXone Customer Base
95% Large and Expanding 113% CXone GRR in Loyal CXone CXone NRR in LTM Q1/2024 customer LTM Q1/2024 base
Slide 23: Vast Expansion Opportunity of Cross-Selling CXone Portfolio
Vast Expansion Opportunity of cross-selling CXone portfolio CXone customers with multi-solution adoption Average ARR of CXone customer by # of solutions adopted 6+ solutions 19% 5+ solutions 33% 4+ solutions 56% 3+ solutions 84% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1 2 3 4 5 6 7 8 9 10 11 12+ # of
Slide 24: Cloud Growth Driven by Success in the Large Enterprise Market
Cloud Growth Driven by Success in the Large Enterprise Market +$1M ARR Cloud Customers 365 24% Global CCaaS 279 penetration ~3.6 million 212 CCaaS seats 172 110 ~15 million Global CX agents Q1/2020 Q1/2021 Q1/2022 Q1/2023 Q1/2024 % of total Cloud Revenue from +$1M ARR NICE Cloud customers 38% 47% 48
Slide 25: AI and Digital Tailwind
AI and Digital Tailwind AI and Digital Business is the #1 growth driver for NICE Q1/2024 24% >$150M AI and Digital Engagement ARR for Q1/2024 8% % of Total Cloud Revenue % of Total Cloud New ACV
Slide 26: Market Opportunity of Digitalization and AI-ization
Market opportunity of Digitalization and AI-ization Average ARR of CXone Average ARPU of CXone % of CXone customers customers customers Average ARPU >50% higher for Digital and AI customers Non-Digital and Non-AI Average ARR 83% 4-5x higher for Digital and AI customers Digital and AI 17% Digital and
Slide 27: AI is a Win-Win for NICE and Customers
AI is a win-win for NICE and customers NICE ARR Annual Customer CX Costs After Self- $3.0M Service AI: 750 seats $4.5M Before Self-Service AI: 1,000 seats $4.5M $3.0M $53.0M $42.0M Labor $50.0M Labor $1.8M $37.5M $0.9M WEM +ACD +CXone Suite +CXone Before AI After AI Before AI After AI 27
Slide 28: Health Insurance Company: Existing Customer Expansion
Existing Customer Expansion Health Insurance Company 42.1 ARR in $M 36.6 +20-year Customer ARR 15K agents 24.0 customer increased ~2X on CXone WEM + ACD + Digital + AI Non-Cloud 2020 2022 2023
Slide 29: Financial Services Company: New Customer Example
New Customer Example Financial Services Company CXone Enlighten AI Customer Example 32% ACD >$3.4M ARR 59% AI 9% WEM AI and Digital increased size of deal by 2.5x
Slide 30: Strong Operating Leverage With a Focus on Profitability
Strong Operating Leverage With a Focus on Profitability Cloud Gross Margin EBITDA and Margin EPS (Non-GAAP) (Non-GAAP) (Non-GAAP) 870 bps 70.5% CAGR 12% CAGR 13% $900 70.0% $880 $860 $8.79 45% $840 $775M $820 $800 $780 $760 67.7% $694M $740 $720 $700 40% $680 $7.62 $608M $660 $640 65.6% $620 $600 $5
Slide 31: Enhancing Profitability and Innovation
Internal Use of GenAI Enhancing Profitability and Innovation R&D BUSINESS OPERATIONS CUSTOMER SUPPORT summarizing identification of automated customer support faster code automated NPS comments product reviews of chatbot for product writing testing opportunities support support using NICE cases know
Slide 32: Capital Allocation Focused on Value Creation
Capital Allocation Focused on Value Creation $415M $288M Combined Acquisition Payments Share Buybacks ~$700M share buyback program outstanding $145M $147M $143M $73M $47M $48M $26M $30M 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Slide 33: Outlook
F Outlook FY 2024 Y/Y Growth Total Revenue $2,715M – $2,735M 14% – 15% Cloud Revenue ≥ 18% (excluding LiveVox) Operating Margin 30.5% – 31.0% 90 bps – 140 bps (Non-GAAP) EBITDA Margin (Non-GAAP) ≥ 33% ≥ 40 bps EPS (Non-GAAP) $10.53 – $10.73 20% – 22% Free Cash Flow ≥ $600M ≥ 26% * The outlook is pro
Slide 34: Summary
Summary Consistent Best-in-class execution on balance sheet delivering industry enables us to leading profitable Still in early innings NICE CXone’s depth expand our market growth of cloud, digital and and breadth is leadership AI adoption in CX increasing our Digital and AI market, especially in wa
Slide 35: Thank You
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