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NICE(NICE) - 2023 Q4 - Annual Report
NICENICE(NICE)2023-11-15 16:00

Revenue Growth and Performance - Total revenue for Q3 2023 increased 8% year-over-year to 601.3million,withcloudrevenuegrowing22601.3 million, with cloud revenue growing 22% to 403.3 million[3][5] - Total revenue for Q3 2023 increased to 601.3million,up8.4601.3 million, up 8.4% from 554.7 million in Q3 2022[23] - Cloud revenue grew 22% year-over-year to 403.3millioninQ32023[23]ProfitabilityandMargins−Cloudgrossmarginimprovedto65.1403.3 million in Q3 2023[23] Profitability and Margins - Cloud gross margin improved to 65.1% (GAAP) and 70.4% (Non-GAAP) compared to 64.1% and 70.4% respectively in the previous year[3] - Operating income increased 26% to 113.6 million (GAAP) and 15% to 183.9million(Non−GAAP),withoperatingmarginsof18.9183.9 million (Non-GAAP), with operating margins of 18.9% and 30.6% respectively[3][6][10] - Diluted EPS grew 30% to 1.39 (GAAP) and 18% to 2.27(Non−GAAP)comparedtoQ32022[3][7][11]−NetincomeforQ32023roseto2.27 (Non-GAAP) compared to Q3 2022[3][7][11] - Net income for Q3 2023 rose to 92.4 million, a 29.6% increase from 71.2millioninQ32022[23]−Non−GAAPnetincomeforQ32023was71.2 million in Q3 2022[23] - Non-GAAP net income for Q3 2023 was 150.6 million, up 17.9% from 127.8millioninQ32022[25]−Non−GAAPdilutedEPSforQ32023was127.8 million in Q3 2022[25] - Non-GAAP diluted EPS for Q3 2023 was 2.27, compared to 1.92inQ32022[25]−Grossmarginimprovedto68.21.92 in Q3 2022[25] - Gross margin improved to 68.2% in Q3 2023 from 69.2% in Q3 2022[23] Cash Flow and Financial Position - Operating cash flow increased 28% to 120.6 million, with 89.5millionusedforsharerepurchasesinQ32023[8]−OperatingcashflowforQ32023was89.5 million used for share repurchases in Q3 2023[8] - Operating cash flow for Q3 2023 was 120.6 million, a 28% increase from 94.3millioninQ32022[24]−AsofSeptember30,2023,thecompanyhad94.3 million in Q3 2022[24] - As of September 30, 2023, the company had 1.6516 billion in cash and short-term investments, with net cash and investments of 1.1073billion[8]−Cashandcashequivalentsstoodat1.1073 billion[8] - Cash and cash equivalents stood at 715.99 million at the end of Q3 2023, up 67.3% from 427.98millioninQ32022[24]ShareRepurchasesandBuybacks−Thecompanyannouncedanew427.98 million in Q3 2022[24] Share Repurchases and Buybacks - The company announced a new 300 million share buyback program, reflecting confidence in its financial strength[4] - Operating cash flow increased 28% to 120.6million,with120.6 million, with 89.5 million used for share repurchases in Q3 2023[8] Future Guidance and Expectations - The company raised full-year 2023 Non-GAAP revenue guidance to 2.359−2.359-2.379 billion, representing 9% growth at midpoint, and EPS guidance to 8.58−8.58-8.78, representing 14% growth[12] - For 2024, the company expects cloud revenue growth of at least 18% year-over-year, excluding LiveVox acquisition, which is expected to contribute 142millioninrevenue[13]−Thecompanyexpects2024EBITDAtoreachnearly142 million in revenue[13] - The company expects 2024 EBITDA to reach nearly 900 million, exceeding 1 billion in 2025 including LiveVox synergies[13] Expenses and Costs - R&D expenses increased 14.6% year-over-year to 84.8 million in Q3 2023[23] - Research and development expenses for the quarter ended September 30, 2023, were 8.224million,upfrom8.224 million, up from 7.424 million in 2022[26] - Sales and marketing expenses for the quarter ended September 30, 2023, decreased to 12.351millionfrom12.351 million from 13.723 million in 2022[26] - General and administrative expenses for the quarter ended September 30, 2023, increased to 21.920millionfrom21.920 million from 16.505 million in 2022[26] - Acquisition-related expenses for the quarter ended September 30, 2023, were 453thousand,with453 thousand, with 428 thousand allocated to general and administrative expenses[27] - Year-to-date acquisition-related expenses for 2023 totaled 453thousand,allincurredinthecurrentyear[27]Share−BasedCompensation−Share−basedcompensationforthequarterendedSeptember30,2023,totaled453 thousand, all incurred in the current year[27] Share-Based Compensation - Share-based compensation for the quarter ended September 30, 2023, totaled 47.287 million, compared to 42.884millioninthesameperiodin2022[26]−Year−to−dateshare−basedcompensationfor2023was42.884 million in the same period in 2022[26] - Year-to-date share-based compensation for 2023 was 133.206 million, slightly lower than 134.991millionin2022[26]AcquisitionsandInvestments−Thecompanyspent134.991 million in 2022[26] Acquisitions and Investments - The company spent 18.4 million on business acquisitions in Q3 2023[24] - For 2024, the company expects cloud revenue growth of at least 18% year-over-year, excluding LiveVox acquisition, which is expected to contribute $142 million in revenue[13]