Slide 1: 2021 Second Quarter Results
2021 SECOND QUARTER RESULTS Ended June 30, 2021
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: Explanation of Non-GAAP measures
Explanation of Non-GAAP measures Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of disc
Slide 4: Q2 2021 Highlights
Q2 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 5: Q2 2021 Highlights (Non-GAAP)
Q2 2021 Highlights (Non-GAAP) Total revenue Cloud revenue Q2 Cloud gross Recurring revenue increased 16% to increased 32% margin increased increased to 82% $459M; compared compared to Q2 200 bps to 67.7%; of total revenue; to Q2 2020 2020; compared to 65.7% compared to 80% Representing 54% in Q2 las
Slide 6: Income Statement
Q2 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 7: Solid Growth and Execution
Solid Growth and Execution REVENUES (Non-GAAP, $M) 459 • Solid growth in total revenue driven by 32% 395 increase in cloud revenue in Q2 • Cloud revenue of $246M represented 54% of total revenue in Q2 16% • Recurring revenue accounted for 82% of total revenue for Q2 Q2 20 Q2 21 EARNINGS PER SHARE (N
Slide 8: GAAP and Non-GAAP Income Statement (USD in thousands except EPS)
GAAP and Non-GAAP Income Statement (USD in thousands except EPS) NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S. dollars in thousands (except per share amounts) Quarter ended Year to date June 30, June 30, 2021 2020 2021 2020 GAAP revenues $ 456,031 $ 393,180 $ 911,052 $ 8
Slide 9: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (except per share amounts) Quarter ended Year to date June 30, June 30, 2021 2020 2021 2020 GAAP financial and other expense, net $ 9,062 $ (423) $ 1
Slide 10: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (1) Share-based Compensation Quarter ended Year to date June 30, June 30, 2021 2020 2021 2020 Cost of cloud revenue $ 1,676 $ 948 $ 3,170 $ 1,792 Cos
Slide 11: Q2 2021 Revenue Breakdown by Region (Non-GAAP)
Q2 2021 Revenue Breakdown by Region (Non-GAAP) 80% 14% AMERICAS EMEA $367M, +15% YoY $64M, +43% YoY 6% APAC $28M, -15% YoY
Slide 12: Q2 2021 Revenue Breakdown by Business Unit (Non-GAAP)
Q2 2021 Revenue Breakdown by Business Unit (Non-GAAP) 17% FINANCIAL CRIME & COMPLIANCE $78M, +9% YoY 83% CUSTOMER ENGAGEMENT $381M, +18% YoY
Slide 13: Gross Profit and Gross Margin Q2 2021 (Non-GAAP)
Gross Profit and Gross Margin Q2 2021 (Non-GAAP) 80.0% $380 78.0% $332M $330 76.0% $281M $280 74.0% 72.2% 72.0% $230 Axis Title 70.0% 71.0% $180 68.0% 66.0% $130 64.0% $80 62.0% 60.0% $30 Q2 20 Q2 21 Gross Profit Gross Margin
Slide 14: Gross Margin Q2 2021 (Non-GAAP)
Gross Margin Q2 2021 (Non-GAAP) PRODUCT MARGIN SERVICES MARGIN CLOUD MARGIN 91.3%| +170bp 73.7%| +110bp 67.7%| +200bp Product GM Product GM 91.3% 89.6% Service GM Service GM 73.7% 72.6% Cloud Cloud GM GM 67.7% 65.7% Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 • Services gross margin increased as a result of
Slide 15: Operating Income and Operating Margin Q2 2021 (Non-GAAP)
Operating Income and Operating Margin Q2 2021 (Non-GAAP) $150 34.0% $130M $130 32.0% $111M 30.0% $110 Axis Title 28.0% 28.2% 28.2% $90 26.0% $70 24.0% $50 22.0% 20.0% $30 Q2 20 Q2 21 Operating Income Operating Margin
Slide 16: Cost Ratios Q2 2021 (Non-GAAP)
Cost Ratios Q2 2021 (Non-GAAP) R&D S&M G&A As % of revenue As % of revenue As % of revenue S&M S&M 23.8% 22.5% R&D R&D 15.4% 15.1% 2.4%* 2.4%* 13.0% 12.7% G&A G&A 7.4% 7.5% Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 * R&D capitalization
Slide 17: Balance Sheet and Cash Flow Analysis
Q2 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 18: Condensed Consolidated Balance Sheet (USD in thousands)
Condensed Consolidated Balance Sheet (USD in thousands) June 30, December 31, 2021 2020 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 343,452 $ 442,267 Short-term investments 1,064,290 1,021,613 Trade receivables 331,493 303,100 Prepaid expenses and other current assets 169,64
Slide 19: Cash Flow From Operations
Cash Flow From Operations $M Q2 21 Q2 20 %∆ H1 21 H1 20 %∆ Cash flow from operations 81.4 59.6 37% 245.7 214.4 15% - Capital expenditure 10.6 7.8 36% 13.0 17.5 (26%) - Capitalization of software development 11.2 9.9 13% 21.3 19.2 11% Cash flow from operations after capex & software capitalization 59
Slide 20: Cash Movement and Liquidity (USD in millions)
Cash Movement and Liquidity (USD in millions) June 30, 2021 Acquisitions ($129M) Operating CF $246M CAPEX* Repayment of Debt Liquidity 12/31/20 Other Buyback Liquidity 6/30/21 ($13M) ($34M) ($45M) ($83M) $1,464M Proceeds from $1,408M Option Exercises $2M * CAPEX movement includes R&D capitalization
Slide 21: Outlook
Q2 2021 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
Slide 22: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q3 2021 FY 2021 Revenue ($M) 460 - 470 1,835 - 1,855 EPS ($) 1.51 - 1.61 6.26 – 6.46 The outlook is provided as of August 5, 2021. 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 outlo
Slide 23: NICE
NICE