Nice Ltd. · TASE:NICE
Nice — Q1 2015 Earnings Presentation
22 slides from Nice's earnings presentation, May 2015
Slide 1: First Quarter Results Ended March 31, 2015
First Quarter Results Ended March 31, 2015
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer This presentation contains statements, including statements about future plans and expectations, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are generally
Slide 3: Explanation of Non-GAAP measures
Explanation of Non-GAAP measures Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, restructuring expenses, share-based compensation, certain business combination accounting entries, and tax adjust
Slide 4: Q1 2015 Highlights, Income Statement, Balance Sheet and Cash Flow, Outlook
Q1 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 5: Q1 2015 Highlights
Q1 2015 Highlights* 7.5% Q1 Q1 operating revenue 26% increase margin growth to in Q1 EPS to Increased full increased to $246M; 10% $0.72; high year 2015 21.3% and revenue end of EPS guidance improved growth guidance operating excluding FX leverage impact Strong Q1 Analytic Q1 gross Product cash flow
Slide 6: Q1 2015 Highlights, Income Statement, Balance Sheet and Cash Flow, Outlook
Q1 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 7: Seasonality Shift to Weighted Q4
Seasonality Shift to Weighted Q4 (Revenue, Non-GAAP, $M) 350 18% 18% 8% 294 300 1% 2% 0% 2% 271 5% 4% 250 246 250 240 239 225 225 230 229 215 217 221 200 150 100 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Slide 8: Good Growth and Execution
Good Growth and Execution Q1 2015 REVENUES (Non-GAAP, $M) • Excellent execution 246 • Excluding currency impact, revenue 250 growth would have been 10% 240 7.5% • Strong growth in product revenue 229 230 • Continued demand for analytic solutions 220 led to another quarter of double-digit 210 growth
Slide 9: GAAP and Non-GAAP Income Statement – Q1 2015
GAAP and Non-GAAP Income Statement – Q1 2015 $M (except EPS) Q1 2015 Q1 2014 GAAP revenue 246.0 228.6 Valuation adjustment on acquired deferred service revenue 0.1 0. 4 Non-GAAP revenues 246.1 229.0 GAAP Cost of revenue 87.1 89.7 Amortization of acquired intangible assets on cost of product (7.1) (8
Slide 10: GAAP and Non-GAAP Income Statement – Q1 2015 (cont.)
GAAP and Non-GAAP Income Statement – Q1 2015 (cont.) $M (except EPS) Q1 2015 Q1 2014 GAAP finance & other income, net 1.7 0.8 Amortization of an investment in affiliate 0.2 - Non-GAAP finance & other income, net 1.9 0.8 GAAP taxes on income 6.8 1.9 Tax adjustment re non-GAAP adjustments 3.5 5.7 Non-
Slide 11: Revenue Breakdown by Region (Non-GAAP) Q1 2015
Revenue Breakdown by Region (Non-GAAP) Q1 2015 23% 67% EMEA $57M, +7% YoY AMERICAS $164M, +11% YoY 10% APAC $25M, -9% YoY
Slide 12: Revenue Breakdown by Business Unit (Non-GAAP) Q1 2015
Revenue Breakdown by Business Unit (Non-GAAP) Q1 2015 20% 62% FINANCIAL CRIME & CUSTOMER COMPLIANCE INTERACTIONS $50M, +17% YoY $152M, +9% YoY 18% SECURITY $44M, -6% YoY
Slide 13: Gross Margin
Gross Margin Q1 2015 (Non-GAAP) Gross Margin Product Margin Services Margin 67.9%| +250bp 80.7%| +480bp 60.1%| +20bp Product GM 80.7% Gross Margin Product Service 67.9% GM GM 75.9% 60.1% Gross Margin 65.4% Service GM 59.9% Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 • Gross margin expansion is the result of
Slide 14: Continued Operating Margin Improvement
Continued Operating Margin Improvement Q1 2015 (Non-GAAP) Operating Margin 21.3% Operating Margin 18.2% Q1 14 Q1 15 • Operating margin improvement is a result of an increase in revenues and a continued successful execution of operational plan • Excellent operating leverage
Slide 15: Cost Ratio – Increased Operating Efficiency
Cost Ratio – Increased Operating Efficiency Q1 2015 (Non-GAAP) R&D S&M G&A As % of revenue As % of revenue As % of revenue S&M 24.5% S&M 24.2% R&D 15.7% G&A 7.7% R&D 14.7% G&A 7.1% Q1 14 Q1 15 Q1 14 Q1 15 Q1 14 Q1 15 • Increase in G&A as a percentage of revenue was the result of one-time effects in
Slide 16: Analytic Applications
Analytic Applications As % of new bookings 50% 49% 48% 44% 40% 38% 37% 30% Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 • Analytics applications are the growth driver of the business. In Q1 2015 Analytics reached nearly 50% of new business.
Slide 17: Q1 2015 Highlights, Income Statement, Balance Sheet and Cash Flow, Outlook
Q1 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 18: Balance Sheet
Balance Sheet March 31, 2015 Assets ($M) 03/31/2015 12/31/2014 Equity & Liabilities 03/31/2015 12/31/2014 ($M) Cash and cash 222.5 187.5 Trade payables 12.9 11.9 equivalents Short term investments 70.1 65.7 Deferred revenue and 191.4 145.2 advances from Trade receivables 142.2 181.6 customers Other
Slide 19: Strong Cash Flow From Operations
Strong Cash Flow From Operations Q1 2015 $M Q1 2015 Q1 2014 %∆ Cash flow from operations 104.1 58.4 78% - Capital expenditure 3.2 4.3 (26%) Cash flow from operations after capex 100.9 54.1 87% Cash flow from operation after capex as % of revenue 41.0% 23.6% 17.4pp Cash conversion rate * 2.3 1.6 44%
Slide 20: Cash Movement and Liquidity
Cash Movement and Liquidity March 31, 2015 Other Operating CF Capital Expenditure Total liquidity (1) $6M Dividend Buyback $104M -$3M 03/31/15 -$10M -$6M $591M Total liquidity (1) 12/31/14 $500M 1) Total Liquidity = Cash and Cash Equivalents + Current Investments + Long Term Investments 20
Slide 21: Q1 2015 Highlights, Income Statement, Balance Sheet and Cash Flow, Outlook
Q1 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 22: Outlook (Non-GAAP)
Outlook (Non-GAAP) Q2 2015 Q2 2014 (Actual) Revenue ($M) 249-257 239 EPS ($) 0.67-0.73 0.57 FY 2015 FY 2014 (Actual) Revenue ($M) 1,065-1,085 1,012 EPS ($) 3.10-3.21 2.85 The outlook is provided as of May 7 2015. There is no guarantee that the Company will change or update these figures in this pres