Slide 1: Q2 2024 Earnings Presentation
Q2 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 $1.8B Countries Cloud Revenue* >85% Fortune $2.2B Recurring 100 Customers Revenue* 25K THE Cloud Leader Powering AI in $725M Customers Cash from Three Large Specialized Markets Operations* *Financial figures for last 12 months ended June
Slide 4: Three large specialized markets
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: Q2-24 Financial Highlights
Q2-24 Financial Highlights Q2 2024 Results Quarterly Increase Results (Decrease) Y/Y Total Revenue $664M 14% Cloud Revenue $482M 26% Non-GAAP Operating Income $202M 19% Non-GAAP Operating Margin 30.4% 120 bps Non-GAAP EPS $2.64 24% Cash from Operations $170M 160% 7
Slide 8: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment Quarterly Revenue Annual Revenue $2,378M $659M $664M $2,181M $623M $403M $601M $569M $572M $581M $108M $109M $555M $1,926M $412M $101M $527M $531M $103M $100M $100M $102M $354M $103M $106M $102M 15% YoY 12% YoY Growth Growth $556M $1,974M $551M $498M $523M $1,76
Slide 9: Revenue Breakdown by Business Model
Revenue Breakdown by Business Model Quarterly Revenue Annual Revenue $659M $664M $623M $42M $35M $601M $2,378M $581M $32M $569M $572M $38M $2,181M $154M $555M $40M $527M $531M $49M $44M $149M $148M $59M $236M $52M $162M $1,926M $76M $160M $641M $159M $242M $161M $160M $165M $650M $167M $157M $660M 2
Slide 10: Recurring Revenue as a Percent of Total Revenue
Recurring Revenue as a Percent of Total Revenue Quarterly Annual 88% 88% 89% 86% 87% 87% 85% 85% 83% 82% 82% 79% 80% 17% 16% 20% 19% 20% 22% 21% 20% 24% 22% 23% 23% 27% 69% 71% 73% 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 2021 2022 2023 Clou
Slide 11: Revenue Breakdown by Geographic Region, Q2 2024
Revenue Breakdown by Geographic Region, Q2 2024 85% 10% AMERICAS EMEA $562M, +16% YoY $70M, +16% YoY 5% APAC $33M, -9% 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% 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 2021 2022 2023 72.2% 74.5% 74.0% 73.3% 71.8% 72.2% 73.6% 72.0% 70.6% 70.2% 73.3% 73.5% 72.4% Services GM Q1-22 Q2-22 Q3-
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% 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% 24.2% 24.6% 24.8% 23.5% 24.0% 22.6% 23.2% 23.1% 21.4% 22.5% 22.4% 20.6% 21.0% 12.9
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 $202M $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%
Slide 15: Non-GAAP Net Income and EPS
Non-GAAP Net Income and EPS Reflect NICE’s Financial Strength 15% YoY Growth Non-GAAP Net Income 23% YoY $583M Growth $507M $172M $174M $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 Q2-24 2021 2022 2023 24% YoY 15% YoY Non-GAAP EPS Growth
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 Q2-24 Q2-23 $900.0 28.5% 30.0% 25.2% Operating Cash Flow 725.3 531.3 $800.0 23.3% 24.0% 23.6% 725.3 25.0% $700.0 620.9 Capital expenditure of property and equipment (28.6) (34.6) $600.0 531.3 557.6 561.4 20
Slide 17: Increasing Share Repurchases
Increasing Share Repurchases Quarterly Annual $146M $288M $90M $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 2021 2022 2023 17 ** Some numbers may not add up due to rounding
Slide 18: Industry Leading Strong Net Cash Position
Industry Leading Strong Net Cash Position* Quarterly Annual $1,141M $1,119M $1,107M $1,029M $1,045M $1,046M $1,029M $950M $920M $892M $895M $892M $863M $863M 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 12/31/2021 12/31/2022 12/31/2
Slide 19: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q3 2024 FY 2024 Revenue ($M) 676 – 686 2,715 – 2,735 Revenue Growth 13% 15% YoY at Midpoint EPS ($) 2.62 – 2.72 10.60 – 10.80 EPS Growth 18% 22% YoY at Midpoint *The outlook is provided as of Aug. 15, 2024. There is no guarantee that the Company will change or update these figure
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 June 30, June 30, 2024 2023 2024 2023 GAAP revenues $ 664,400 $ 581,113 $ 1,323,709 $ 1,152,972 Non-GAAP revenues $ 664,400 $ 581,113 $ 1,323,709 $ 1,152,972 GAAP cost of revenue $ 224,783 $ 189,713 $ 447,452
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 June 30, June 30, 2024 2023 2024 2023 GAAP taxes on income $ 28,684 $ 27,424 $ 57,759 $ 52,711 Tax adjustments re non-GAAP adjustments 14,963 11,793 28,779 24,101 Non-GAAP taxes on income $ 43,647 $ 3
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 June 30, June 30, 2024 2023 2024 2023 Cost of cloud revenue $ 2,852 $ 2,253 $ 5,792 $ 4,200 Cost of services revenue 2,617 2,864 4,995 5,748 Cost of product revenue 30 140 60 278 Resea
Slide 25: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation USD in thousands Quarter ended Year to date June 30, June 30, 2024 2023 2024 2023 Unaudited Unaudited Unaudited Unaudited GAAP net income $ 115,785 $ 87,355 $ 222,158 $ 164,296 Non-GAAP adjustments: Depreciation and amortization 51,520 42,033 103,280 83,879 Share-based
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation USD in thousands Quarter ended Year to date June 30, June 30, 2024 2023 2024 2023 Unaudited Unaudited Unaudited Unaudited Net cash provided by operating activities $ 169,668 $ 65,254 $ 424,158 $ 260,325 Purchase of property and equipment (6,455) (4,513) (16,976) (17,619
Slide 27: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands June 30, December 31, June 30, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 739,556 $ 511,795 Trade payables $ 73