Slide 1: Q4 2024 Earnings Presentation
Q4 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: THE Cloud Leader Powering AI in Three Large Specialized Markets
>3,300 >8,700 R&D Professionals $2.7B Employees Total Revenue* >150 $2.0B Countries Cloud Revenue* >85% Fortune $2.4B Recurring 100 Customers Revenue* 25K THE Cloud Leader Powering AI in $833M Customers Cash from Three Large Specialized Markets Operations* *Financial figures for last 12 months ended
Slide 4: This is Customer Experience, Financial Crime & Compliance, 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: Q4-24 Financial Highlights
Q4-24 Financial Highlights Q4 2024 Results Quarterly Increase Results Y/Y Total Revenue $722M 16% Cloud Revenue $534M 24% Non-GAAP Operating Income $227M 22% Non-GAAP Operating Margin 31.5% 150 bps Non-GAAP EPS $3.02 28% Cash from Operations $250M 38% 7
Slide 8: FY-24 Financial Highlights
FY-24 Financial Highlights FY 2024 Results Annual Increase Results Y/Y Total Revenue $2,735M 15% Cloud Revenue $1,984M 25% Non-GAAP Operating Income $850M 21% Non-GAAP Operating Margin 31.1% 150 bps Non-GAAP EPS $11.12 27% Cash from Operations $833M 48% 8
Slide 9: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment Quarterly Revenue Annual Revenue $2,735M $722M $453M $2,378M $690M $659M $664M $2,181M $623M $125M $403M $601M $111M $109M $569M $572M $581M $108M $412M $555M $101M $527M $531M $103M $100M $100M $102M $103M $106M $102M $2,282M $578M $597M $1,974M $551M $556M $1,
Slide 10: Revenue Breakdown by Business Model
Revenue Breakdown by Business Model Quarterly Revenue Annual Revenue $722M $2,735M $690M $38M $155M $659M $664M $40M $623M $42M $35M $2,378M $601M $581M $32M $150M $154M $569M $572M $2,181M $596M $555M $38M $150M $531M $40M $148M $527M $49M $44M $149M $236M $59M $52M $162M $76M $641M $160M $159M $16
Slide 11: Recurring Revenue as a Percent of Total Revenue
Recurring Revenue as a Percent of Total Revenue Quarterly Annual 88% 88% 89% 89% 89% 89% 86% 87% 87% 85% 85% 83% 82% 82% 79% 17% 15% 17% 16% 16% 20% 19% 20% 22% 21% 20% 24% 22% 23% 23% 71% 73% 72% 74% 73% 66% 67% 69% 67% 63% 64% 56% 59% 60% 59% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q
Slide 12: Revenue Breakdown by Geographic Region – Q4 2024
Revenue Breakdown by Geographic Region – Q4 2024 85% 10% AMERICAS EMEA $614M, +17% YoY $72M, +11% YoY 5% APAC $36M, +4% YoY 12
Slide 13: Revenue Breakdown by Geographic Region - FY 2024
Revenue Breakdown by Geographic Region - FY 2024 85% 10% AMERICAS EMEA $2,322M, +17% YoY $278M, +12% YoY 5% APAC $136M, -5% YoY 13
Slide 14: 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% 69.7% 70.6% 70.0% 70.5% 70.1% Cloud GM Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2022 2023 2024 72.2% 74.5% 74.0% 73.3% 71.8% 72.2% 73.6% 72.0% 70.6% 70.2% 71.9% 70.6% 73.5% 72.
Slide 15: 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% 44.4% 43.1% 42.4% 42.3% 41.7% 41.9% 40.6% 40.3% 40.0% 39.1% 39.9% 7.7% 7.3% 8.0% 7.9% 8.6% 7.7% 7.1% 7.5% 7.5% 7.7% 6.2% 8.0% 7.4% 7.3% 7.6% 24.2% 24.6% 24.8% 24.0% 22.6% 23.2% 23.1% 21.4% 22.5% 22.4%
Slide 16: Strong Operating Leverage Evident in Growing Profitability
Strong Operating Leverage Evident in Growing Profitability Non-GAAP 40% Operating Margin $240 $221M $227M $850M 38% $200M $202M $220 40% $900 $880 $860 36% $184M $187M $200 38% $704M $840 $820 $800 $780 $163M $163M $170M $760 $740 $149M $154M $159M $180 36% $625M $720 $700 34% 32.0% 31.5% $160 34% $
Slide 17: Non-GAAP Net Income and EPS Reflect NICE's Financial Strength
Non-GAAP Net Income and EPS Reflect NICE’s Financial Strength 25% YoY Growth Non-GAAP Net Income 26% YoY Growth $728M $196M $583M $187M $172M $174M $507M $151M $155M $135M $136M $142M $128M $120M $123M Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2022 2023 2024 28% YoY 27%
Slide 18: Growing Cash From Operations and Free Cash Flow
Growing Cash From Operations and Free Cash Flow FY FY LTM Operating Cash Flow and Margin $M 2024 2023 $1,000.0 30% 27% $900.0 25% 25% 25% Operating Cash Flow 832.6 561.4 $800.0 22% $733M 20% $668M $700.0 $639M 20% $600.0 $537M Capital expenditure of property and equipment (35.0) (29.2) $500.0 $477M
Slide 19: Increasing Share Repurchases
Increasing Share Repurchases Quarterly Annual $146M $369M $288M $95M $90M $86M $69M $64M $65M $65M $145M $42M $34M $22M $25M Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 2022 2023 2024 19
Slide 20: Industry Leading Strong Net Cash Position
Industry Leading Strong Net Cash Position* Quarterly Annual $1,141M $1,119M $1,163M $1,163M $1,107M $1,029M $1,045M $1,046M $1,068M $1,029M $950M $920M $892M $895M $863M $863M 12/31/2022 12/31/2023 12/31/2024 * Net cash and investments = cash, cash equivalents and short-term investments less total d
Slide 21: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q1 2025 FY 2025 Revenue ($M) 693 – 703 2,918 – 2,938 Revenue Growth 6% 7% YoY at Midpoint EPS ($) 2.78 – 2.88 12.13 – 12.33 EPS Growth 10% 10% YoY at Midpoint *The outlook is provided as of February 20, 2025. There is no guarantee that the Company will change or update these figu
Slide 22: Thank You
Thank You NICE --)
Slide 23: Appendix
Appendix 23
Slide 24: GAAP and Non-GAAP Income Statement
GAAP and Non-GAAP Income Statement USD in thousands (except EPS) Quarter ended Year to date December 31, December 31, 2024 2023 2024 2023 GAAP revenues $ 721,600 $ 623,192 $ 2,735,272 $ 2,377,508 Non-GAAP revenues $ 721,600 $ 623,192 $ 2,735,272 $ 2,377,508 GAAP cost of revenue $ 232,386 $ 200,878 $
Slide 25: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) Quarter ended Year to date December 31, December 31, 2024 2023 2024 2023 GAAP net income $ 99,509 $ 81,652 $ 442,588 $ 338,301 Amortization of acquired intangible assets 25,855 21,696 115,867 92,445 Valuation adjustment on acqu
Slide 26: 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 December 31, December 31, 2024 2023 2024 2023 Cost of cloud revenue $ 3,520 $ 4,605 $ 12,487 $ 10,965 Cost of services revenue 2,966 3,142 10,472 11,906 Cost of product revenue 18 (15)
Slide 27: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation USD in thousands Quarter ended Year to date December 31, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Audited GAAP net income $ 99,509 $ 81,652 $ 442,588 $ 338,301 Non-GAAP adjustments: Depreciation and amortization 48,776 41,212 205,020 167,360 Share-b
Slide 28: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation USD in thousands Quarter ended Year to date December 31, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Audited Free cash flow (a) Net cash provided by operating activities $ 249,522 $ 180,496 $ 832,641 $ 561,430 Purchase of property and equipment (7,567)
Slide 29: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 481,712 $ 511,795 Trade payab