NICE(US:NICE)2025-11-13 14:32Financial 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]