Nice Ltd. · TASE:NICE
Nice — Q1 2023 Earnings Presentation
25 slides from Nice's earnings presentation, May 11, 2023
Slide 1: 2023 First Quarter Results
2023 First Quarter Results Ended March 31, 2023
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: Q1 2023 Highlights
Q1 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 4
Slide 5: Q1 2023 Highlights (Non-GAAP)
Q1 2023 Highlights (Non-GAAP) Total revenue Cloud revenue Cloud gross margin Recurring revenue increased 8% (9% in increased 25% to increased 140 bps to represented 85% of CC) to $572M; $368M; compared to 70.0%; total revenue; compared to $527M in $295M in Q1 2022 compared to 68.6% in compared to 79
Slide 6: Impressive Growth and Execution
Impressive Growth and Execution TOTAL REVENUE (Non-GAAP, $M) • Total revenue increased 8% (9% in CC) in Q1 2023 8% 572 driven by 25% growth in cloud revenue • Cloud revenue in Q1 2023 of $368M represented a 527 record 64% of total revenue • Recurring revenue accounted for 85% of total revenue for Q1
Slide 7: Income Statement
Q1 2023 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) Quarter ended March 31, 2023 2022 GAAP revenues $ 571,860 $ 527,429 Non-GAAP revenues $ 571,860 $ 527,429 GAAP cost of revenue $ 186,596 $ 167,002 Amortization of acquired intangible assets on cost of cloud (19,369) (18,665) Amortizati
Slide 9: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) Quarter ended March 31, 2023 2022 GAAP financial and other income, net $ (8,721) $ (486) Amortization of discount and loss of extinguishment on debt (1,154) (2,229) Non-GAAP financial and other income, net $ (9,875) $ (2,715) G
Slide 10: GAAP and Non-GAAP Income Statement (cont.)
GAAP and Non-GAAP Income Statement (cont.) USD in thousands (except EPS) (1) Share-based Compensation Quarter ended March 31, 2023 2022 Cost of cloud revenue $ 1,947 $ 2,324 Cost of services revenue 2,885 2,967 Cost of product revenue 138 132 Research and development 8,398 8,515 Sales and marketing
Slide 11: Revenue Breakdown by Business Model (Non-GAAP)
Q1 2023 Revenue Breakdown by Business Model (Non-GAAP) 8% PRODUCTS $44M, -41% YoY, -40% YoY CC 64% CLOUD $368M, +25% YoY, +25% YoY CC 28% SERVICES $160M, +2% YoY, +3% YoY CC 11
Slide 12: Revenue Breakdown by Region (Non-GAAP)
Q1 2023 Revenue Breakdown by Region 83% 11% (Non-GAAP) AMERICAS EMEA $475M, +12% YoY $63M, -13% YoY, -8% YoY CC 6% APAC $34M, +14% YoY, +15% YoY CC 12
Slide 13: Revenue Breakdown by Business Unit (Non-GAAP)
Q1 2023 Revenue Breakdown 83% 17% by Business Unit FINANCIAL CUSTOMER CRIME & (Non-GAAP) ENGAGEMENT COMPLIANCE $472M, +12% YoY, $100M, -5% YoY, +13% YoY CC -4% YoY CC 13
Slide 14: Gross Profit and Gross Margin Q1 2023 (Non-GAAP)
Gross Profit and Gross Margin Q1 2023 (Non-GAAP) 82.0% $500 80.0% 6% $450 78.0% $410M $385M $400 76.0% 74.0% $350 72.0% 73.0% 71.7% $300 70.0% $250 68.0% 66.0% $200 Q1 22 Q1 23 Gross Profit Gross Margin
Slide 15: Gross Margin Q1 2023 (Non-GAAP)
Gross Margin Q1 2023 (Non-GAAP) PRODUCT SERVICES CLOUD MARGIN MARGIN MARGIN -670bp -40bp +140bp Product GM Product 91.6% GM 84.9% Services Services Cloud Cloud GM GM GM GM 72.2% 71.8% 68.6% 70.0% Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 15
Slide 16: Operating Income and Operating Margin Q1 2023 (Non-GAAP)
Operating Income and Operating Margin Q1 2023 (Non-GAAP) 31.0% $200 10% $180 30.0% $163M $149M $160 $140 29.0% +30 bp 28.6% $120 28.0% $100 28.3% $80 27.0% $60 $40 26.0% $20 25.0% $0 Q1 22 Q1 23 Operating Income Operating Margin 16
Slide 17: Cost Ratios Q1 2023 (Non-GAAP)
Cost Ratios Q1 2023 (Non-GAAP) R&D S&M G&A as % of revenue as % of revenue as % of revenue S&M 24.2% S&M 23.2% R&D R&D 14.9% 14.7% 2.0%* 2.5%* G&A G&A 12.9% 12.2% 7.7% 7.7% Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q1 23 17 * R&D capitalization
Slide 18: EBITDA and EBITDA Margin Q1 2023 (Non-GAAP)
EBITDA and EBITDA Margin Q1 2023 (Non-GAAP) 36.0% $200 9% $180M $180 35.0% $165M $160 34.0% $140 33.0% $120 32.0% $100 31.5% 31.2% $80 31.0% $60 30.0% $40 29.0% $20 28.0% $0 Q1 22 Q1 23 EBITDA EBITDA Margin 18
Slide 19: Balance Sheet and Cash Flow Analysis
Q1 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 19
Slide 20: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet USD in thousands March 31, December 31, March 31, December 31, 2023 2022 2023 2022 Unaudited Audited Unaudited Audited ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents $ 630,661 $ 529,596 Trade payables $
Slide 21: Cash Flow From Operations
Cash Flow From Operations $M Q1 23 Q1 22 %∆ Cash flow from operations 195.1 192.7 1% - Capital expenditure 13.1 9.6 37% - Capitalization of software development 14.1 10.7 32% Cash flow from operations after capex & software capitalization 167.8 172.5 (10%) Cash flow from operations after capex and s
Slide 22: Cash Movement and Liquidity (USD in Millions)
Cash Movement and Liquidity (USD in Millions) March 31, 2023 65 27 9 1 195 1,685 1,572 Liquidity Operating CF Buyback CAPEX* ST investments FX impact Liquidity 12/31/22 MTM** 03/31/23 *CAPEX movement includes R&D capitalization **Short-term investments Mark to Market (MTM) 22
Slide 23: Outlook
Q1 2023 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook 23
Slide 24: Outlook (Non-GAAP)
Outlook* (Non-GAAP) Q2 2023 FY 2023 Revenue ($M) 573 – 583 2,350 – 2,370 EPS ($) 2.00 – 2.10 8.32 – 8.52 *The outlook is provided as of May 11, 2023. 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 outloo
Slide 25: Thank You
Thank You