NICE(US:NICE)2023-11-15 16:00Revenue Growth and Performance - Total revenue for Q3 2023 increased 8% year-over-year to $601.3 million, with cloud revenue growing 22% to $403.3 million[3][5] - Total revenue for Q3 2023 increased to $601.3 million, up 8.4% from $554.7 million in Q3 2022[23] - Cloud revenue grew 22% year-over-year to $403.3 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 $183.9 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) compared to Q3 2022[3][7][11] - Net income for Q3 2023 rose to $92.4 million, a 29.6% increase from $71.2 million in Q3 2022[23] - Non-GAAP net income for Q3 2023 was $150.6 million, up 17.9% from $127.8 million in Q3 2022[25] - Non-GAAP diluted EPS for Q3 2023 was $2.27, compared to $1.92 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 $89.5 million used for share repurchases in Q3 2023[8] - Operating cash flow for Q3 2023 was $120.6 million, a 28% increase from $94.3 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 $1.1073 billion[8] - Cash and cash equivalents stood at $715.99 million at the end of Q3 2023, up 67.3% from $427.98 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 $120.6 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-$2.379 billion, representing 9% growth at midpoint, and EPS guidance to $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 $142 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 $8.224 million, up from $7.424 million in 2022[26] - Sales and marketing expenses for the quarter ended September 30, 2023, decreased to $12.351 million from $13.723 million in 2022[26] - General and administrative expenses for the quarter ended September 30, 2023, increased to $21.920 million from $16.505 million in 2022[26] - Acquisition-related expenses for the quarter ended September 30, 2023, were $453 thousand, with $428 thousand allocated to general and administrative expenses[27] - Year-to-date acquisition-related expenses for 2023 totaled $453 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 $42.884 million in the same period in 2022[26] - Year-to-date share-based compensation for 2023 was $133.206 million, slightly lower than $134.991 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]