NICE (NasdaqGS:NICE) 2025 Investor Day November 17, 2025 09:00 AM ET Company ParticipantsNone - Video NarratorRyan Gilligan - VP of Investor RelationsNeeraj Verma - VP of AI ProductNick Algeier - Conversational AI ExecutiveBeth Gaspich - CFOScott Russell - CEOConference Call ParticipantsNone - Analyst 6None - Analyst 8None - Analyst 9None - Analyst 11None - Analyst 1None - Analyst 2None - Analyst 5None - Analyst 10None - Analyst 3None - Analyst 4None - Analyst 7Ryan GilliganHi, everyone. I'm Ryan Gilligan, ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $732 million, a 6% increase year-over-year, at the high end of guidance [15][21] - Cloud revenue reached $563 million, up 13% year-over-year, representing 77% of total revenue [15][21] - Adjusted earnings per share for Q3 were $3.18, a 10% increase compared to the previous year [21] - Cash flow from operations was $191 million, up 20% year-over-year, indicating strong operational execution [22] Business Line Data and Key Metrics Changes - Customer engagement revenue, which accounted for 84% of total revenue, was $613 million, increasing 6% year-over-year [20] - Financial crime and compliance revenue, representing 16% of total revenue, totaled $119 million, up 7% year-over-year [20] - Annual recurring revenue (ARR) from AI and self-service offerings accelerated to 49%, driven by organic momentum and the acquisition of NICE Cognigy [16][8] Market Data and Key Metrics Changes - The Americas region contributed 84% of revenue, increasing 5% year-over-year, with double-digit cloud revenue growth [17] - EMEA revenue increased 7% year-over-year, while APAC revenue grew by 19% year-over-year, contributing to an 11% increase in international revenue [18] Company Strategy and Development Direction - The company is focused on an AI-first strategy, with significant momentum in cloud and AI bookings, and international expansion [7][13] - The acquisition of NICE Cognigy is expected to enhance AI and self-service growth trajectories, with a strong emphasis on integrating AI capabilities into existing platforms [15][24] - The company aims to lead the AI revolution in customer experience, leveraging its CX One platform and NICE Cognigy solutions [13][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI solutions, highlighting a vibrant market for AI transformation [8][11] - The company anticipates continued growth in cloud revenue and a positive outlook for international markets, driven by investments in sovereign cloud infrastructure [18][22] - Management expects to see an upward trend in net revenue retention (NRR) in the coming quarters, supported by strong customer loyalty [16][17] Other Important Information - The company ended the quarter debt-free, with total cash and short-term investments of $456 million, demonstrating financial strength [22] - Upcoming Capital Markets Day is scheduled for November 17, 2025, to discuss long-term strategy and financial outlook [14] Q&A Session Summary Question: What is the expected Q4 revenue contribution from Cognigy? - Management indicated that Cognigy contributed approximately 50 basis points to cloud revenue growth in Q3 and is expected to add about 150 basis points in Q4 [28] Question: How is Cognigy positioned in the go-to-market strategy? - Cognigy will actively pursue the CX market, regardless of the underlying CCAS platform, leveraging NICE's support to enhance its market presence [29] Question: What are the competitive dynamics in the market? - Management acknowledged the emergence of new players in the AI space but emphasized the company's strong competitive positioning through the acquisition of Cognigy and its proven capabilities [37] Question: How is the partnership with RingCentral impacting pipeline velocity? - The renewed partnership is expected to drive growth, with identified leads and collaboration between the two organizations enhancing market momentum [42] Question: What is the outlook for the Actimize business? - The Actimize business remains strong, with high demand driven by regulatory compliance needs, and is positioned well for future growth [91]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $732 million, a 6% increase year-over-year, at the high end of guidance [15][21] - Cloud revenue reached $563 million, up 13% year-over-year, representing 77% of total revenue [15][21] - Adjusted earnings per share for Q3 were $3.18, a 10% increase compared to the previous year [21] - Cash flow from operations was $191 million, up 20% year-over-year, indicating strong operational execution [22] Business Line Data and Key Metrics Changes - Customer engagement revenue, which accounted for 84% of total revenue, was $613 million, increasing 6% year-over-year [20] - Financial crime and compliance revenue, representing 16% of total revenue, totaled $119 million, up 7% year-over-year [20] - Annual recurring revenue (ARR) from AI and self-service offerings accelerated to 49%, driven by organic momentum and the acquisition of NICE Cognigy [16][8] Market Data and Key Metrics Changes - The Americas region contributed 84% of revenue, increasing 5% year-over-year, with double-digit cloud revenue growth [17] - EMEA revenue increased 7% year-over-year, while APAC revenue grew by 19% year-over-year, contributing to an 11% increase in international revenue [18] Company Strategy and Development Direction - The company is focused on an AI-first strategy, with significant momentum in cloud and AI bookings, and international expansion [7][13] - The acquisition of NICE Cognigy is expected to enhance AI and self-service growth, with a strong emphasis on integrating their solutions into the existing platform [15][24] - The company aims to lead the AI revolution in customer experience, leveraging its CX One platform and NICE Cognigy solutions [13][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI solutions, highlighting a vibrant market for customer experience transformation [8][11] - The company anticipates continued growth in cloud revenue and a positive trajectory for net revenue retention (NRR) [16][22] - Management expects to provide more detailed financial outlooks during the upcoming Capital Markets Day [23][97] Other Important Information - The company ended the quarter debt-free with total cash and short-term investments of $456 million, showcasing financial strength [22] - The updated guidance for total revenue for the full year 2025 is now expected to be in the range of $2,932 million to $2,946 million, reflecting a year-over-year increase of 7% at the midpoint [24] Q&A Session Summary Question: What is the expectation of Q4 revenue contribution from Cognigy? - Management expects Cognigy to contribute approximately 150 basis points to cloud revenue growth in Q4, following a 50 basis point contribution in Q3 [28] Question: How is Cognigy positioned in terms of go-to-market strategy? - Cognigy will actively pursue the CX market, regardless of the underlying CCAS platform, leveraging NICE's support to enhance its market presence [29] Question: What are the competitive dynamics in the market with new entrants? - Management views new entrants as validation of market potential and remains confident in their competitive positioning due to the acquisition of Cognigy [37] Question: How is the partnership with RingCentral impacting pipeline velocity? - The renewed partnership is expected to drive growth, with identified leads and collaboration between the two organizations [42] Question: What is the outlook for the Actimize business? - The Actimize business remains strong, with high demand and retention rates, benefiting from the regulatory environment around compliance and financial crime [91]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $732 million, a 6% year-over-year increase, at the high end of guidance [15][22] - Cloud revenue reached $563 million, up 13% year-over-year, representing 77% of total revenue [15][20] - Adjusted earnings per share for Q3 were $3.18, a 10% increase compared to the previous year [20] - Cash flow from operations was $191 million, reflecting a 20% year-over-year increase [21] Business Line Data and Key Metrics Changes - Customer engagement revenue, which accounted for 84% of total revenue, was $613 million, increasing 6% year-over-year [19] - Financial crime and compliance revenue, representing 16% of total revenue, totaled $119 million, up 7% year-over-year [19] - Annual recurring revenue (ARR) from AI and self-service offerings accelerated to 49% year-over-year [6][16] Market Data and Key Metrics Changes - The Americas region contributed 84% of revenue, with a 5% year-over-year increase [17] - EMEA revenue increased by 7% year-over-year, while APAC revenue grew by 19% year-over-year, leading to an 11% increase in international revenue [18] - Cloud net revenue retention (NRR) for the trailing 12 months was 109% [16] Company Strategy and Development Direction - The company is focused on an AI-first strategy, with significant momentum in cloud and AI bookings [5][12] - The acquisition of NICE Cognigy is expected to enhance AI and self-service growth trajectories [15][24] - The company aims to lead the AI revolution in customer experience (CX) and expand its international presence [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI solutions and the transformation of customer engagement [10][12] - The company anticipates continued growth in cloud revenue and a positive impact from the Cognigy acquisition [24][49] - Management highlighted the importance of maintaining financial strength while investing in growth opportunities [22][23] Other Important Information - The company will hold a Capital Markets Day on November 17, 2025, to discuss long-term strategy and financial outlook [13][81] - The company ended the quarter debt-free with total cash and short-term investments of $456 million [22] Q&A Session Summary Question: What is the expected Q4 revenue contribution from Cognigy? - Management indicated that Cognigy contributed approximately 50 basis points to cloud revenue growth in Q3 and is expected to add about 150 basis points in Q4 [27][28] Question: How is Cognigy positioned in terms of go-to-market strategy? - Cognigy will pursue the CX market independently of NICE's CCAS platform, targeting companies lacking integrated solutions [28] Question: What are the competitive dynamics in the market, especially with new entrants? - Management acknowledged the growing competition but emphasized Cognigy's established market leadership and ease of adoption [33][34] Question: How is the renewed partnership with RingCentral impacting pipeline velocity? - Management noted strong collaboration with RingCentral, leading to increased confidence and growth expectations [39][40] Question: What is the outlook for net revenue retention (NRR)? - Management expects stabilization in NRR and positive inflection moving forward, supported by strong cross-sell and upsell efforts [64][67] Question: How is the company addressing competitive pressures in the Actimize business? - Management highlighted Actimize's strong market position and ongoing demand due to regulatory compliance needs [77][78]