UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commissi ...

SAN FRANCISCO, March 12, 2025 (GLOBE NEWSWIRE) -- Meltwater, a global leader in media, social and consumer intelligence, today announces a new collaboration with NICE, the world’s leading AI platform for customer service, bringing Meltwater insights to the Contact Center as a Service (CCaaS) market for the first time. Together, Meltwater and NICE will empower enterprises to engage with customers in real time through social media channels to enhance customer interactions, streamline operations, make data-bac ...

Group 1 - The core thesis is that NICE Ltd. is positioned to benefit from the expanding Total Addressable Market (TAM) in the Contact Center industry [1] - The investment strategy focuses on identifying undervalued companies with long-term growth potential, emphasizing a blend of value investing principles [1] - The approach involves purchasing quality companies at a discount to their intrinsic value and holding them for long-term compounding of earnings and shareholder returns [1]

Core Viewpoint - NICE has underperformed in the market, with shares down 25.6% over the past twelve months, contrasting with the Zacks Internet-Software industry's increase of 17.8% and the broader Computer & Technology sector's rise of 13.7% [1][4] Financial Performance - In Q4 2024, NICE reported revenues of $721.6 million, reflecting a 16% year-over-year increase, primarily driven by the strength of its cloud business and customer base expansion [2] - Cloud revenues reached $534 million in Q4 2024, marking a 24% year-over-year increase and accounting for 74% of total revenues [6] - For Q1 2025, NICE anticipates non-GAAP revenues between $693 million and $703 million, indicating a 6% year-over-year growth at the mid-point [10] - For the full year 2025, NICE projects non-GAAP revenues between $2.92 billion and $2.94 billion, implying a 7% year-over-year growth at the mid-point [11] Client Base and Market Position - NICE has seen an increase in large enterprise customers, with over 400 clients generating more than $1 million in annual recurring revenue in Q4 2024 [7] - The company’s partnerships with AT&T and Microsoft have been significant in attracting new customers, particularly the integration of its compliance solutions into the Microsoft Azure Marketplace [9] Competitive Landscape - NICE faces strong competition from players like Five9, Salesforce, and 8X8, which are expanding their portfolios in the customer experience (CX) market [1][14] - Five9's recent launch of AI-driven CX solutions on Google Cloud Marketplace poses a direct challenge to NICE's market position [15] Growth Drivers - NICE's focus on cloud offerings, especially the CXone platform, has been a major growth driver, supported by a growing demand for AI-driven customer service interactions [5][8] - The company expects a 12% year-over-year growth in cloud revenue for 2025 [10] Valuation - NICE shares are currently trading at a forward 12-month price-to-sales ratio of 3.07X, which is below the industry average of 4.52X, indicating that the stock may be undervalued [16] Investment Outlook - The continued growth in NICE's cloud business and AI domain, along with platform innovation and an expanding client base, makes the stock attractive for long-term investors [19]

Core Viewpoint - NICE reported strong financial results for the fourth quarter of 2024, with adjusted earnings and revenues exceeding consensus estimates, driven by growth in its cloud business and customer base expansion [1][2][3]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $3.02, beating the Zacks Consensus Estimate by 2.03% and increasing 28% year over year [1]. - Non-GAAP revenues reached $721.6 million, surpassing the consensus mark by 1.20% and rising 16% year over year [2]. - Cloud revenues, which constitute 74% of total revenues, amounted to $533.9 million, reflecting a 24% year-over-year increase despite missing the consensus estimate by 0.06% [4]. - Service revenues were $149.7 million, accounting for 20.7% of total revenues, down 7.8% year over year and missing the consensus by 0.98% [4][5]. - Product revenues of $38 million, making up 5.3% of total revenues, exceeded the consensus estimate by 37.61% and increased 19.4% year over year [5]. Market and Growth Drivers - The growth in revenues was primarily attributed to the strength of the cloud business and the expansion of NICE's customer base, with over 400 enterprise cloud customers generating more than $1 million in annual recurring revenue (ARR) [4][6]. - NICE's focus on cloud solutions, particularly the CXone Mpower platform, is enhancing operational efficiency and customer experience [6]. Operating Metrics - Non-GAAP gross margin contracted by 50 basis points to 71.4% [7]. - Operating expenses as a percentage of revenues decreased by 200 basis points year over year to 39.9%, while the non-GAAP operating margin expanded by 150 basis points to 31.5% [8]. Balance Sheet and Cash Flow - As of December 31, 2024, NICE had cash and cash equivalents of $1.62 billion, an increase from $1.52 billion as of September 30, 2024 [9]. - The company allocated $95.2 million for share repurchases in Q4 2024 [10]. Guidance - For Q1 2025, NICE expects non-GAAP revenues between $693 million and $703 million, indicating a 6% year-over-year growth at the midpoint [11]. - For the full year 2025, projected non-GAAP revenues are between $2.92 billion and $2.94 billion, implying a 7% year-over-year growth at the midpoint [11].

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", "intend", "should", "project", "anticipate", "plan", and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company's management regarding the future of the Company's business, performance, ...

Financial Data and Key Metrics Changes - For Q4 2024, total revenue reached a record $722 million, reflecting a 16% year-over-year growth, primarily driven by strong cloud revenue performance [31][32] - Cloud revenue grew 24% year-over-year to $534 million, representing 74% of total revenue, marking a significant milestone for the company [32][34] - Operating income increased by 22% to $227 million, with an operating margin expansion of 150 basis points to 31.5% [41][42] - Earnings per share (EPS) for Q4 was $3.02, a 28% increase compared to the same quarter last year [42] - Free cash flow for 2024 totaled $733 million, exceeding the target of $700 million [42][43] Business Line Data and Key Metrics Changes - Customer Engagement revenues, which accounted for 83% of total revenue in Q4, increased 14% year-over-year to $596 million, driven by cloud revenue growth [38] - Financial Crime and Compliance revenues, representing 17% of total revenue, grew 24% year-over-year, totaling $126 million [39] - Services revenue decreased year-over-year to $150 million due to the transition of large enterprise on-premise customers to the cloud [34] Market Data and Key Metrics Changes - The Americas region contributed 85% of total revenue in Q4, growing 17% year-over-year [35] - EMEA region represented 10% of total revenue, increasing 11% year-over-year, while APAC region accounted for 5% of total revenue, growing 4% year-over-year [36] Company Strategy and Development Direction - The company aims to capitalize on the growing market for agentic AI, with expectations that by 2028, 33% of enterprise software applications will include agentic AI [24] - NICE plans to enhance its market leadership by expanding the CXone Mpower platform and increasing strategic partnerships to drive growth [26][27] - The focus will be on delivering real-time customer experiences through the integration of AI capabilities with existing solutions [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's growth potential, particularly in the SaaS and AI sectors, and emphasized the importance of customer experience [116] - The company anticipates a modest 12% growth in cloud revenue for 2025, with a focus on maintaining profitability while investing in innovation [47][48] - Management highlighted the need for transparency in financial disclosures and plans to enhance communication with investors [51][130] Other Important Information - The company repurchased shares totaling $95 million in Q4 and $369 million for the full year 2024, reflecting a 28% increase year-over-year [43] - Total cash and investments at the end of December amounted to $1.622 billion, with debt standing at $450 million [44] Q&A Session Summary Question: Can you provide background on the cloud growth rate and the impact of LiveVox? - Management acknowledged the positive market outlook and the need for transparency in financial disclosures, noting that LiveVox's growth rate has some headwinds factored into guidance [50][51][57] Question: When did the trend of delayed revenue recognition start, and could it reverse? - Management indicated that longer deployment times for large enterprise deals are expected but emphasized ongoing efforts to accelerate revenue recognition [60][64][70] Question: What are the assumptions behind the 12% cloud growth guidance? - Management highlighted seasonality and the gradual ramp-up of large enterprise deals as key factors influencing the guidance [73][115] Question: How does NICE view the balance between investing in AI and driving profitability? - Management expressed confidence in the potential of agentic AI and the importance of investing in customer experience while maintaining profitability [78][84] Question: What is the current status of net retention rate for CXone customers? - Management confirmed that the net retention rate remains healthy and is not expected to deteriorate, with opportunities for expansion in 2025 [126][129]

Revenue Growth - Total revenue for Q4 2024 was $721.6 million, representing a 16% year-over-year increase[3] - Cloud revenue for Q4 2024 reached $533.9 million, up 24% year-over-year[3] - Full-year 2024 total revenue was $2,735.3 million, a 15% increase compared to 2023[4] - Full-year 2024 cloud revenue grew by 25% to $1,984.2 million[4] - Total revenue for Q4 2024 reached $721.6 million, a 15.8% increase from $623.2 million in Q4 2023[28] - Cloud revenue grew to $533.9 million, up 24.5% from $429.0 million year-over-year[28] - Full-year 2025 non-GAAP total revenues are expected to be between $2,918 million and $2,938 million, indicating a 7% year-over-year growth[18] - Full-year 2025 guidance includes an anticipated 12% year-over-year growth in cloud revenue[18] Profitability Metrics - Non-GAAP fully diluted EPS for Q4 2024 was $3.02, a 28% increase year-over-year[16] - Operating margin for full-year 2024 was 20.0%, up from 18.3% in 2023[4] - Non-GAAP operating margin for full-year 2024 reached 31.1%, compared to 29.6% in 2023[14] - Net income for Q4 2024 was $99.5 million, representing a 21.8% increase compared to $81.7 million in Q4 2023[28] - Operating income increased to $154.3 million, a 25.8% rise from $122.7 million in the same quarter last year[28] - Non-GAAP net income for the year 2024 was $728.4 million, up 25.1% from $582.7 million in 2023[30] - Non-GAAP diluted earnings per share increased to $11.12 in 2024, compared to $8.79 in 2023, reflecting a 26.8% growth[30] - The company reported a GAAP net income of $442.6 million for the year 2024, a 30.8% increase from $338.3 million in 2023[30] Cash Flow and Assets - Operating cash flow for full-year 2024 increased by 48% to $832.6 million[5] - The company reported a net cash provided by operating activities of $249.5 million for Q4 2024, compared to $180.5 million in Q4 2023[29] - Total cash provided by operating activities for the year 2024 was $832.6 million, compared to $561.4 million in 2023, marking a 48.2% increase[34] - Free cash flow for Q4 2024 was $225.1 million, a 40.3% increase from $160.5 million in Q4 2023[34] - Cash and cash equivalents decreased to $481.7 million from $511.8 million at the end of Q4 2023[29] - Total current assets increased to $2.5 billion, up from $2.3 billion year-over-year[27] - Total long-term assets slightly decreased to $2.79 billion from $2.80 billion in the previous year[27] - Total liabilities increased to $1.69 billion, compared to $1.76 billion in Q4 2023[27] - Shareholders' equity rose to $3.6 billion, an increase from $3.4 billion year-over-year[27] Expenses - Operating expenses on a GAAP basis for Q4 2024 were $334.9 million, a 11.8% increase from $299.6 million in Q4 2023[30] - Research and development expenses for the year 2024 totaled $28.8 million, down from $31.4 million in 2023, indicating a 8.3% reduction[31] Gross Profit and EBITDA - GAAP gross profit for the year 2024 was $1.83 billion, representing a 13.4% increase from $1.61 billion in 2023[30] - Non-GAAP EBITDA for the year 2024 was $933.1 million, up 20.5% from $774.8 million in 2023[33]

Company Performance - Nice (NICE) closed at $173.87, marking a +0.42% move from the prior day, outperforming the S&P 500 which gained 0.36% [1] - Over the past month, shares of Nice gained 4.48%, surpassing the Computer and Technology sector's growth of 0% and the S&P 500's gain of 2.11% [1] Upcoming Earnings - Nice is projected to report earnings of $2.96 per share, representing year-over-year growth of 25.42% [2] - The revenue forecast for Nice is $713.01 million, indicating a 14.41% growth compared to the same quarter of the previous year [2] Analyst Projections - Recent shifts in analyst projections for Nice are important as they indicate changing near-term business trends [3] - Upbeat changes in estimates reflect analysts' favorable outlook on the company's business health and profitability [3] Valuation Metrics - Nice has a Forward P/E ratio of 14.08, which is a discount compared to the industry average Forward P/E of 31.23 [5] - The company has a PEG ratio of 0.97, significantly lower than the Internet-Software industry's average PEG ratio of 2.34 [6] Industry Ranking - The Internet-Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries [6] - The Zacks Rank system, which evaluates the average Zacks Rank of individual stocks, shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - The current market presents challenges in identifying undervalued software stocks, particularly when applying the Rule of 40, which evaluates a SaaS company's health through its combined revenue growth rate and free cash flow or EBITDA margin [1] - The investment strategy described combines fundamental analysis with options trading, focusing on various approaches such as income-oriented investments, growth at a reasonable price, deep value, and dividend aristocrats [1] - The analyst employs 20-25 different options strategies for purposes including hedging, bullish substitutes, neutral trades, volatility trading, and earnings-related trades [1] Group 2 - The analyst has a beneficial long position in NICE shares, indicating a personal investment interest in the company [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company mentioned [2]