Slide 1: 2023 Second Quarter Results
2023 Second Quarter Results Ended June 30, 2023
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: Q2 2023 Highlights
Q2 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 3
Slide 4: Q2 2023 Highlights (Non-GAAP)
Q2 2023 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud revenue as a Cloud gross margin increased 10% to increased 23% to percentage of total increased 20 bps to $581M; compared to $382M; compared to revenue was 66% 70.3%; $531M in Q2 2022 $311M in Q2 2022 compared to 59% in compared to 70.1
Slide 5: Impressive Growth and Execution
Impressive Growth and Execution TOTAL REVENUE (Non-GAAP, $M) • Total revenue increased 10% in Q2 2023 driven by 581 23% growth in cloud revenue 10% • Cloud revenue in Q2 2023 of $382M represented a 531 record 66% of total revenue • Recurring revenue accounted for 86% of total revenue for Q2 2023 Q2
Slide 6: Income Statement
Q2 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 6
Slide 7: GAAP and Non-GAAP Income Statement
GAAP and Non-GAAP Income Statement USD in thousands (except EPS) Quarter ended Year to date June 30, June 30, 2023 2022 2023 2022 GAAP revenues $ 581,113 $ 530,581 $ 1,152,972 $ 1,058,010 Non-GAAP revenues $ 581,113 $ 530,581 $ 1,152,972 $ 1,058,010 GAAP cost of revenue $ 189,713 $ 164,924 $ 376,309
Slide 8: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) Quarter ended Year to date June 30, June 30, 2023 2022 2023 2022 GAAP taxes on income $ 27,424 $ 19,068 $ 52,711 $ 33,977 Tax adjustments re non-GAAP adjustments 11,793 12,911 24,101 29,262 Non-GAAP taxes on income $ 39,217 $ 3
Slide 9: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) (1) Share-based Compensation Quarter ended Year to date June 30, June 30, 2023 2022 2023 2022 Cost of cloud revenue $ 2,253 $ 1,741 $ 4,200 $ 4,070 Cost of services revenue 2,864 2,519 5,748 5,486 Cost of product revenue 140 13
Slide 10: Revenue Breakdown by Business Model (Non-GAAP)
Q2 2023 Revenue Breakdown by Business Model (Non-GAAP) 7% PRODUCT 66% $40M, -23% YoY CLOUD $382M, +23% YoY 27% SERVICES $159M, -5% YoY 10
Slide 11: Revenue Breakdown by Region (Non-GAAP)
Q2 2023 Revenue Breakdown by Region 83% 11% (Non-GAAP) AMERICAS EMEA $485, +9% YoY $60M, +14% YoY 6% APAC $36M, +7% YoY 11
Slide 12: Revenue Breakdown by Business Unit (Non-GAAP)
Q2 2023 Revenue Breakdown 83% 17% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $481M, +12% YoY $100M, -2% YoY 12
Slide 13: Gross Profit Q2 2023 (Non-GAAP)
Gross Profit Q2 2023 (Non-GAAP) $500 7% $450 $416M $389M $400 $350 $300 $250 $200 Q2 22 Q2 23
Slide 14: Gross Margin Q2 2023 (Non-GAAP)
Gross Margin Q2 2023 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN -660bp -230bp +20bp Product GM Product 88.4% GM Services Services Cloud 81.8% GM Cloud GM GM 74.5% GM 72.2% 70.3% 70.1% Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 14
Slide 15: Operating Income Q2 2023 (Non-GAAP)
Operating Income Q2 2023 (Non-GAAP) $200 10% $170M $180 $154M $160 $140 $120 $100 $80 $60 $40 $20 $0 Q2 22 Q2 23 15
Slide 16: Cost Ratios Q2 2023 (Non-GAAP)
Cost Ratios Q2 2023 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M 24.6% S&M 23.1% R&D R&D 14.8% 14.7% 2.4%* 2.5%* 12.4% 12.2% G&A G&A 7.3% 7.1% Q2 22 Q2 23 Q2 22 Q2 23 Q2 22 Q2 23 16 * R&D capitalization
Slide 17: EBITDA Q2 2023 (Non-GAAP)
EBITDA Q2 2023 (Non-GAAP) 10% $200 $187M $170M $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Q2 22 Q2 23 17
Slide 18: Balance Sheet and Cash Flow Analysis
Q2 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 18
Slide 19: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands June 30, December 31, June 30, December 31, 2023 2022 2023 2022 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 598,079 $ 529,596 Trade payables $ 45
Slide 20: Cash Flow From Operations
Cash Flow From Operations $M Q2 23 Q2 22 %∆ Cash flow from operations 65.3 16.0 307% - Capital expenditure 4.5 5.3 (15%) - Capitalization of software development 14.5 13.1 11% Cash flow from operations after capex & software capitalization 46.3 (2.4) Cash flow from operations after capex and softwar
Slide 21: Cash and Investments (USD in Millions)
Cash and Investments (USD in Millions) June 30, 2023 130 260 46 4 2 1,662 1,572 Liquidity Operating CF Buyback CAPEX* Change in FX impact Liquidity 12/31/22 investments, net 06/30/23 *CAPEX movement includes R&D capitalization 21
Slide 22: Outlook
Q2 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 22
Slide 23: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q3 2023 FY 2023 Revenue ($M) 590 – 600 2,353 – 2,373 EPS ($) 2.10 – 2.20 8.40 – 8.60 *The outlook is provided as of August 17, 2023. 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 24: Thank You
Thank You