Slide 1: 2022 Third Quarter Results
2022 Third Quarter Results Ended September 30, 2022
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: Q3 2022 Highlights, Income Statement, Balance Sheet and Cash Flow, Outlook
Q3 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 4
Slide 5: Q3 2022 Highlights (Non-GAAP)
Q3 2022 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud gross margin Gross profit increased increased 12% (14% increased 26% (27% increased 330 bps to 14% to $408M; in CC) to $555M; in CC) to $330M; 70.4%; compared to $358M in compared to $494M compared to $262M compared to 67.1% in Q3 2021
Slide 6: Impressive Growth and Execution
Impressive Growth and Execution TOTAL REVENUE (Non-GAAP, $M) • Total revenue increased 12% (14% in CC) driven by further 555 growth in cloud revenue 12% 494 • Cloud revenue of $330M represented a record 60% of total revenue in Q3 2022 compared to 53% in Q3 2021, and increased 27% in CC • Recurring r
Slide 7: Income Statement
Q3 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 7
Slide 8: GAAP and Non-GAAP Income Statement
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 September 30, September 30, 2022 2021 2022 2021 GAAP revenues $ 554,724 $ 493,829 $ 1
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 U.S. dollars in thousands (except per share amounts) Quarter ended Year to date September 30, September 30, 2022 2021 2022 2021 GAAP taxes on income $ 19,645 $ 13,803 $ 53,622 $ 35,186 Ta
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 September 30, September 30, 2022 2021 2022 2021 Cost of cloud revenue $ 2,319 $ 2,117 $ 6,389
Slide 11: Q3 2022 Revenue Breakdown by Region
Q3 2022 Revenue Breakdown by Region 83% 11% (Non-GAAP) AMERICAS EMEA $458M, +12% YoY $62M, +7% YoY, +19% YoY CC 6% APAC $35M, +23% YoY, +27% YoY CC 11
Slide 12: Q3 2022 Revenue Breakdown by Business Unit
Q3 2022 Revenue Breakdown 81% 19% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $452M, +12% YoY $103M, +13% YoY 12
Slide 13: Gross Profit and Gross Margin Q3 2022 (Non-GAAP)
Gross Profit and Gross Margin Q3 2022 (Non-GAAP) $500 79.0% 14% $450 $408M 77.0% $400 $358M $350 75.0% 73.5% $300 +120 bp 73.0% 72.3% $250 71.0% $200 $150 69.0% $100 67.0% $50 65.0% $0 Q3 21 Q3 22 Gross Profit Gross Margin
Slide 14: Gross Margin Q3 2022 (Non-GAAP)
Gross Margin Q3 2022 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN 89.8%| -30bp 74.0%| +70bp 70.4%| +330bp Product Product GM GM 90.1% 89.8% Services Services GM GM Cloud Cloud GM 73.3% 74.0% GM 70.4% 67.1% Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 14
Slide 15: Operating Income and Operating Margin Q3 2022 (Non-GAAP)
Operating Income and Operating Margin Q3 2022 (Non-GAAP) 31.0% $200 $180 14% 30.0% $159M $160 $140M $140 29.0% 28.7% +40 bp $120 28.0% 28.3% $100 $80 27.0% $60 $40 26.0% $20 25.0% $0 Q3 21 Q3 22 Operating Income Operating Margin 15
Slide 16: Cost Ratios Q3 2022 (Non-GAAP)
Cost Ratios Q3 2022 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M 24.8% S&M 22.5% R&D R&D 15.8% 14.4% 2.2%* 2.4%* G&A G&A 13.6% 12.0% 7.9% 8.0% Q3 21 Q3 22 Q3 21 Q3 22 Q3 21 Q3 22 16 * R&D capitalization
Slide 17: Balance Sheet and Cash Flow Analysis
Q3 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 17
Slide 18: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet NICE LTD. AND SUBSIDIARIES NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands U.S. dollars in thousands September 30, December 31, September 30, December 31, 2022 2021 2022 2021 Unaudit
Slide 19: Cash Flow From Operations
Cash Flow From Operations $M Q3 22 Q3 21 %∆ 9M 22 9M 21 %∆ Cash flow from operations 94.3 103.5 (9%) 303.0 349.2 (13%) - Capital expenditure 6.1 8.2 (26%) 21.0 21.1 (1%) - Capitalization of software development 13.4 10.7 25% 37.2 32.0 16% Cash flow from operations after capex & software capitalizati
Slide 20: Cash Movement and Liquidity (USD in Millions)
Cash Movement and Liquidity (USD in Millions) September 30, 2022 120 303 58 1,425 43 20 12 1,461 8 6 Liquidity Operating CF Buyback CAPEX* Purchase of Repayment of FX impact ST Other Liquidity 12/31/21 investments, Debt investments 9/30/22 net MTM** *CAPEX movement includes R&D capitalization **Shor
Slide 21: Outlook
Q3 2022 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 21
Slide 22: Non-GAAP Outlook
Non-GAAP Outlook* Constant currency FY 2022 YoY Growth at YoY Growth at Guidance Midpoint Midpoint Revenue ($M) 2,168 – 2,188 13.1% 13.8% EPS ($) 7.40 – 7.60 15.0% 15.6% *The outlook is provided as of November 10, 2022. There is no guarantee that the Company will change or update these figures in th
Slide 23: Thank You
Thank You