Slide 1: Q1 2024 Earnings Presentation
Q1 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: NICE at a glance: the cloud leader powering AI
>3,000 >8,400 R&D Professionals $2.5B Employees Revenue* >150 $1.7B Countries Cloud Revenue* >85% Fortune $2.2B Recurring 100 Customers Revenue* 25K THE Cloud Leader Powering AI in $621M Customers Cash from Three Large Specialized Markets Operations* *Financial figures for last 12 months ended March
Slide 4: Customer experience, financial crime and 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: Q1-24 Financial Highlights
Q1-24 Financial Highlights Q1 2024 Results Quarterly Increase Results (Decrease) Y/Y Total Revenue $659M 15% Cloud Revenue $468M 27% Non-GAAP Gross Profit $468M 14% Non-GAAP Gross Margin 70.9% (70bps) Non-GAAP Operating Income $200M 22% Non-GAAP Operating Margin 30.3% 170bps Non-GAAP EPS $2.58 27% 7
Slide 8: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment Quarterly Revenue Annual Revenue $2,378M $659M $2,181M $623M $403M $601M $572M $581M $108M $555M $569M $101M $1,926M $412M $527M $531M $103M $100M $100M $102M $354M $103M $106M $102M 17% YoY 12% YoY Growth Growth $1,974M $551M $498M $523M $1,769M $467M $472M $48
Slide 9: Revenue Breakdown by Business Model
Revenue Breakdown by Business Model Quarterly Revenue $659M Annual Revenue $623M $42M $601M $581M $32M $569M $572M $38M $2,378M $555M $40M $527M $531M $49M $44M $149M $154M $59M $2,181M $52M $162M $76M $160M $236M $159M $1,926M $161M $160M $641M $242M $165M $167M $157M $650M $660M 22% YoY 27% YoY Gr
Slide 10: Recurring Revenue as a Percent of Total Revenue
Recurring Revenue as a Percent of Total Revenue Quarterly Annual 87% 88% 88% 87% 85% 85% 86% 83% 82% 82% 79% 80% 19% 17% 20% 20% 20% 22% 21% 24% 22% 23% 23% 27% 69% 71% 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 2021 2022 2023 Cloud Revenue Non-Clou
Slide 11: Revenue Breakdown by Geographic Region, Q1 2024
Revenue Breakdown by Geographic Region, Q1 2024 85% 10% AMERICAS EMEA $559M, +18% YoY $67M, +7% YoY 5% APAC $33M, -2% YoY 11
Slide 12: Consistent Healthy Gross Margins (Non-GAAP)
Consistent Healthy Gross Margins (Non-GAAP) 68.6% 70.1% 70.4% 70.5% 70.0% 70.3% 70.4% 71.1% 69.8% 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 2021 2022 2023 72.2% 74.5% 74.0% 73.3% 71.8% 72.2% 73.6% 72.0% 70.6% 73.3% 73.5% 72.4% Services GM Q1-22 Q2-22 Q3-22 Q4-2
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% 7.7% 7.3% 8.0% 8.0% 7.9% 8.6% 7.7% 7.1% 7.5% 7.5% 7.7% 8.0% 24.2% 24.6% 24.8% 23.5% 24.0% 22.6% 23.2% 23.1% 21.4% 22.5% 22.4% 20.6% 12.9% 12.4% 12.0% 12.
Slide 14: Strong Operating Leverage Evident in Growing Profitability
Strong Operating Leverage Evident in Growing Profitability Non-GAAP 40% Operating Margin $220 40% $740 $200M $704M $720 $700 38% $184M $187M $200 38% $625M $680 $660 $170M $640 $620 36% $154M $159M $163M $163M $180 36% $544M $600 $580 $149M $160 34% $560 $540 $520 34% $500 $480 32% 30.6% 30.0% 30.3%
Slide 15: Delivering Sustained Profitable Growth – Rule of 40
Delivering Sustained Profitable Growth – Rule of 40 Quarterly Annual 48.6% 47.8% 47.6% 46.6% 45.1% 43.8% 42.7% 42.1% 42.5% 41.6% 41.6% 39.9% 32.0% 33.3% 31.6% 31.2% 31.8% 31.6% 32.4% 32.9% 32.1% 33.7% 32.6% 31.5% 15.4% 15.6% 15.3% 16.2% 12.2% 13.3% 10.3% 9.5% 9.6% 9.0% 8.4% 8.4% Q1-22 Q2-22 Q3-22 Q4
Slide 16: Non-GAAP Net Income and EPS
Non-GAAP Net Income and EPS Reflect NICE’s Financial Strength 15% YoY Growth Non-GAAP Net Income 26% YoY $583M Growth $507M $172M $436M $151M $155M $135M $136M $142M $123M $128M $120M Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 2021 2022 2023 27% YoY 15% YoY Non-GAAP EPS Growth Growth $2.5
Slide 17: 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 Q1-24 Q1-23 $900.0 30.0% $800.0 25.2% Operating Cash Flow 620.9 482.1 24.0% 23.6% 23.3% 25.0% $700.0 21.7% $621M $558M $561M Capital expenditure of property and equipment (26.6) (35.4) $600.0 20.0% $531M $5
Slide 18: Increasing Share Repurchases
Increasing Share Repurchases Quarterly Annual $90M $288M $69M $64M $65M $65M $42M $145M $34M $25M $22M $73M Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 2021 2022 2023 18 ** Some numbers may not add up due to rounding
Slide 19: Industry Leading Strong Net Cash Position
Industry Leading Strong Net Cash Position* Quarterly Annual $1,141M $1,119M $1,107M $1,029M $1,045M $1,029M $950M $920M $892M $895M $892M $863M $863M 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 12/31/2021 12/31/2022 12/31/2023 * Net cash and
Slide 20: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q2 2024 FY 2024 Revenue ($M) 657 – 667 2,715 – 2,735 Revenue Growth 14% 15% YoY at Midpoint EPS ($) 2.53 – 2.63 10.53 – 10.73 EPS Growth 21% 21% YoY at Midpoint *The outlook is provided as of May 16, 2024. There is no guarantee that the Company will change or update these figures
Slide 21: Thank You
Thank You NICE --)
Slide 22: Appendix
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Slide 23: GAAP and Non-GAAP Income Statement
GAAP and Non-GAAP Income Statement USD in thousands (except EPS) Quarter ended March 31, 2024 2023 GAAP revenues $ 659,309 $ 571,860 Non-GAAP revenues $ 659,309 $ 571,860 GAAP cost of revenue $ 222,669 $ 186,596 Amortization of acquired intangible assets on cost of cloud (25,367) (19,369) Amortizati
Slide 24: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) Quarter ended March 31, 2024 2023 GAAP taxes on income $ 29,075 $ 25,286 Tax adjustments re non-GAAP adjustments 13,816 12,308 Non-GAAP taxes on income $ 42,891 $ 37,594 GAAP net income $ 106,373 $ 76,942 Amortization of acquir
Slide 25: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (1) Share-based compensation Quarter ended March 31, 2024 2023 Cost of cloud revenue $ 2,940 $ 1,947 Cost of services revenue 2,378 2,885 Cost of product revenue 30 138 Research and development 7,813 8,398 Sales and marketing 13,529 11,102
Slide 26: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation USD in thousands NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA U.S. dollars in thousands Quarter ended March 31, 2024 2023 Unaudited Unaudited GAAP net income $ 106,373 $ 76,942 Non-GAAP adjustments: Depreciation and amortization 51,76
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation USD in thousands NICE LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS U.S. dollars in thousands Quarter ended March 31, 2024 2023 Unaudited Unaudited Free cash flow (a) Net cash provided by operating activities $ 254,490 $ 195,0
Slide 28: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands March 31, December 31, March 31, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 793,078 $ 511,795 Trade payables $