NICE Reports Strong Finish to 2022 With 26% Cloud Revenue Growth for the Fourth Quarter

  • Full-year cloud revenue growth of 27% at constant currency
  • Full-year total revenue growth of 14% at constant currency, exceeding high end of guidance range
  • Non-GAAP full year earnings per share growth of 17%, exceeding high end of guidance range

NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year ended December 31, 2022, as compared to the corresponding period of the previous year.

Fourth Quarter 2022 Financial Highlights

GAAP

Non-GAAP

Total revenue was $568.6 million and increased 10%

Total revenue was $568.6 million and increased 10% ($575.8 million in constant currency, up 12%)

Cloud revenue was $358.9 million and increased 26%

Cloud revenue was $358.9 million and increased 26% ($361.4 million in constant currency, up 27%)

Cloud gross margin was 64.5% compared to 60.7% last year

Cloud gross margin was 70.5% compared to 68.2% last year

Total gross margin was 68.2% compared to 67.9% last year

Total gross margin was 72.6% compared to 73.0% last year

Operating income was $87.8 million and increased 35%

Operating income was $162.8 million and increased 12%

Operating margin was 15.4% compared to 12.6% last year

Operating margin was 28.6%, compared to 28.2% last year

Diluted EPS was $1.07 and increased 41%

Diluted EPS was $2.04 and increased 18%

Operating cash flow increased 57% to $176.7 million

 

Full Year 2022 Financial Highlights

GAAP

Non-GAAP

Total revenue was $2,181.3 million, and increased 14%

Total revenue was $2,181.3 million, and increased 13% ($2,204.1 million in constant currency, up 14%)

Cloud revenue was $1,295.3 million and increased 27%

Cloud revenue was $1,295.3 million and increased 27% ($1,303.0 million in constant currency, up 27%)

Cloud gross margin was 63.5% compared to 59.7% last year

Cloud gross margin was 70.0% compared to 67.7% last year

Total gross margin was 68.7% compared to 67.5% last year

Total gross margin was 73.1% compared to 72.6% last year

Operating income was $335.2 million and increased 27%

Operating income was $625.1 million and increased 15%

Operating margin was 15.4% compared to 13.7% last year

Operating margin was 28.7%, compared to 28.2% last year

Diluted EPS was $4.00 and increased 34%

Diluted EPS was $7.62 versus and increased 17%

Operating cash flow increased 4% to $479.7 million

 

“2022 was another landmark year for NICE capped off by strong fourth quarter results as we exceeded the high end of our guidance range with full-year total revenue growth of 14% at constant currency, as well as full-year earnings per share growth of 17%. These excellent results, together with further growth in profitability, strong free cash flow and a rock-solid balance sheet, provides us the industry-leading financial position to continue to grow our business, increase profitability and further expand our competitive lead in our markets,” said Barak Eilam, CEO, NICE.

Mr. Eilam continued, “We are in a winning competitive position operationally, innovatively, and financially, and this provides us significant opportunities ahead to capture a large and expanding market. These opportunities include cloud expansion in a vastly underpenetrated enterprise market, accelerating demand for a complete platform as the market standard, the rise of AI, and a favorable competitive landscape.”

GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

Revenues: Fourth quarter 2022 total revenues increased 10% to $568.6 million compared to $515.5 million for the fourth quarter of 2021.

Full year 2022 total revenues increased 14% to $2,181.3 million compared to $1,921.2 million for the full year 2021.

Gross Profit: Fourth quarter 2022 gross profit was $387.6 million compared to $350.2 million for the fourth quarter of 2021. Fourth quarter 2022 gross margin was 68.2% compared to 67.9% for the fourth quarter of 2021.

Full year 2022 gross profit was $1,497.6 million compared to $1,296.7 million for the full year 2021. Full year 2022 gross margin was 68.7% compared to 67.5% for the full year 2021.

Operating Income: Fourth quarter 2022 operating income was $87.8 million compared to $65.1 million for the fourth quarter of 2021. Fourth quarter 2022 operating margin was 15.4% compared to 12.6% for the fourth quarter of 2021.

Full year 2022 operating income was $335.2 million compared to $263.9 million for the full year 2021. Full year 2022 operating margin was 15.4% compared to 13.7% for the full year 2021.

Net Income: Fourth quarter 2022 net income was $71.2 million compared to $51.2 million for the fourth quarter of 2021. Fourth quarter 2022 net income margin was 12.5% compared to 9.9% for the fourth quarter of 2021.

Full year 2022 net income was $265.9 million compared to $199.2 million for the full year 2021. Full year 2022 net income margin was 12.2% compared to 10.4% for the full year 2021.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the fourth quarter of 2022 increased 41% to $1.07 compared to $0.76 in the fourth quarter of 2021.

Fully diluted earnings per share for the full year 2022 increased 34% to $4.00 compared to $2.98 for the full year 2021.

Operating Cash Flow and Cash Balance: Fourth quarter 2022 operating cash flow was $176.7 million and full year 2022 operating cash flow was $479.7 million.

In the fourth quarter 2022, $24.5 million was used for share repurchases and for the full year 2022, $144.9 million were used for share repurchases.

As of December 31, 2022, total cash and cash equivalents, and short-term investments were $1,571.5 million. Our debt, net of a hedge instrument, was $542.4 million, resulting in net cash and investments of $1,029.1 million.

Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

Revenues: Fourth quarter 2022 total revenues increased 10% to $568.6 million (up 12% in constant currency to $575.8 million) compared to $515.5 million for the fourth quarter of 2021.

Full year 2022 total revenues increased 13% to $2,181.3 million (up 14% in constant currency to $2,204.1 million) compared to $1,925.7 million for the full year 2021.

Gross Profit: Fourth quarter 2022 Non-GAAP gross profit increased to $412.6 million compared to $376.4 million for the fourth quarter of 2021. Fourth quarter 2022 Non-GAAP gross margin was 72.6% compared to 73.0% for the fourth quarter of 2021.

Full year 2022 gross profit was $1,594.6 million compared to $1,397.6 million for the full year 2021. Full year 2022 gross margin was 73.1% compared to 72.6% for the full year 2021.

Operating Income: Fourth quarter 2022 Non-GAAP operating income increased to $162.8 million compared to $145.6 million for the fourth quarter of 2021. Fourth quarter 2022 Non-GAAP operating margin was 28.6% compared to 28.2% for the fourth quarter of 2021.

Full year 2022 operating income was $625.1 million compared to $543.9 million for the full year 2021. Full year 2022 operating margin was 28.7% compared to 28.2% for the full year 2021.

Net Income: Fourth quarter 2022 Non-GAAP net income increased to $135.3 million compared to $116.7 million for the fourth quarter of 2021. Fourth quarter 2022 Non-GAAP net income margin totaled 23.8% compared to 22.6% for the fourth quarter of 2021.

Full year 2022 net income was $506.8 million compared to $436.3 million for the full year 2021. Full year 2022 net income margin was 23.2% compared to 22.7% for the full year 2021.

Fully Diluted Earnings Per Share: Fourth quarter 2022 Non-GAAP fully diluted earnings per share increased 18% to $2.04 compared to $1.73 for the fourth quarter of 2021.

Fully diluted earnings per share for the full year 2022 increased 17% to $7.62 compared to $6.52 for the full year 2021.

First Quarter and Full Year 2023 Guidance:

The Company plans to fully execute the $250 million share repurchase program announced last quarter in its entirety by the end of 2023.

With year-over-year cloud revenue growth expected to be in a range of 22% to 25% for the full year 2023, the Company is providing the following total revenue and EPS guidance:

First Quarter 2023:

First quarter 2023 Non-GAAP total revenues are expected to be in a range of $559 million to $569 million, representing 7% growth year over year at the midpoint.

First quarter 2023 Non-GAAP fully diluted earnings per share are expected to be in a range of $1.92 to $2.02, representing 9% growth year over year at the midpoint.

Full Year 2023:

Full year 2023 Non-GAAP total revenues are expected to be in a range of $2,345 million to $2,365 million, representing 8% growth at the midpoint compared to full year 2022.

Full year 2023 Non-GAAP fully diluted earnings per share are expected to be in a range of $8.28 to $8.48, representing 10% growth at the midpoint compared to full year 2022.

Quarterly Results Conference Call

NICE management will host its earnings conference call today February 23, 2023, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial into the following numbers: United States 1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429, Israel 1-809-406-247.

The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event.

Explanation of Non-GAAP measures

Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments. FASB issued an accounting update, ASU2021-08, Business Combinations, in the fourth quarter of 2021. The amendments in ASU 2021-08 require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Before this guidance and through December 31, 2020, business combination accounting rules required recognizing a legal performance obligation related to a revenue arrangement of an acquired entity as a liability. The amount assigned to such liability was based on its fair value at the date of acquisition. Effective January 1, 2021, the Company early adopted the new guidance retroactively to the start of the year. The Company has applied the new guidance retrospectively to all business combinations for which the acquisition date occurred on or after January 1, 2021, and therefore comparative financials for periods during 2021 have been adjusted accordingly to recognize the full amount of revenue associated with acquisitions.

The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

Explanation of Constant Currency

NICE presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current results for transactions in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the current period.

Future expected results for transactions in currencies other than United States dollars are converted into United States dollars using the exchange rates in effect in the last month of the reporting period. NICE has provided this financial information to aid investors in better understanding our performance. These constant currency financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

About NICE

NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements

This press release 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, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.

Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapidly changing technology, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business and the global economy and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).

You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

NICE LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

December 31,

December 31,

2022

2021

Unaudited

Audited

 
ASSETS
 

CURRENT ASSETS:

Cash and cash equivalents

$

529,596

$

378,656

Short-term investments

 

1,041,943

 

1,046,095

Trade receivables

 

515,730

 

395,583

Debt hedge option

 

122,323

 

292,940

Prepaid expenses and other current assets

 

206,372

 

184,604

 
Total current assets

 

2,415,964

 

2,297,878

 

LONG-TERM ASSETS:

Property and equipment, net

 

159,284

 

145,654

Deferred tax assets

 

119,821

 

55,246

Other intangible assets, net

 

209,605

 

295,378

Operating lease right-of-use assets

 

102,893

 

85,055

Goodwill

 

1,617,118

 

1,606,756

Prepaid expenses and other long-term assets

 

231,496

 

224,445

 

 

Total long-term assets

 

2,440,217

 

2,412,534

 

TOTAL ASSETS

$

4,856,181

$

4,710,412

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 

CURRENT LIABILITIES:

Trade payables

$

56,019

$

36,121

Deferred revenues and advances from customers

 

338,930

 

330,459

Current maturities of operating leases

 

13,525

 

19,514

Debt

 

209,292

 

395,946

Accrued expenses and other liabilities

 

526,527

 

487,547

 
Total current liabilities

 

1,144,293

 

1,269,587

 

LONG-TERM LIABILITIES:

Deferred revenues and advances from customers

 

57,211

 

66,606

Operating leases

 

99,261

 

81,185

Deferred tax liabilities

 

6,024

 

7,429

Debt

 

455,382

 

429,267

Other long-term liabilities

 

38,587

 

18,379

 
Total long-term liabilities

 

656,465

 

602,866

 

SHAREHOLDERS' EQUITY

Nice Ltd's equity

 

3,042,085

 

2,825,085

Non-controlling interests

 

13,338

 

12,874

 
Total shareholders' equity

 

3,055,423

 

2,837,959

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

4,856,181

$

4,710,412

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

Quarter ended

Year to date

December 31,

December 31,

2022

2021

2022

2021

Unaudited

Audited

Unaudited

Audited

 

Revenue:

Cloud

$

358,850

$

285,201

$

1,295,323

$

1,018,624

Services

 

161,208

 

166,376

 

650,116

 

660,083

Product

 

48,502

 

63,896

 

235,855

 

242,443

Total revenue

 

568,560

 

515,473

 

2,181,294

 

1,921,150

 

Cost of revenue:

Cloud

 

127,309

 

112,127

 

472,805

 

410,671

Services

 

46,339

 

47,341

 

183,938

 

191,137

Product

 

7,332

 

5,777

 

26,945

 

22,648

Total cost of revenue

 

180,980

 

165,245

 

683,688

 

624,456

 

Gross profit

 

387,580

 

350,228

 

1,497,606

 

1,296,694

 

Operating expenses:

Research and development, net

 

81,964

 

75,332

 

306,073

 

271,187

Selling and marketing

 

148,198

 

149,662

 

609,833

 

536,192

General and administrative

 

69,594

 

60,167

 

246,527

 

225,406

Total operating expenses

 

299,756

 

285,161

 

1,162,433

 

1,032,785

 

Operating income

 

87,824

 

65,067

 

335,173

 

263,909

 

Financial and other expense (income), net

 

(9,127)

 

7,696

 

(10,159)

 

23,290

 

Income before tax

 

96,951

 

57,371

 

345,332

 

240,619

Taxes on income

 

25,765

 

6,210

 

79,387

 

41,396

Net income

$

71,186

$

51,161

$

265,945

$

199,223

 
 

Earnings per share:

Basic

$

1.11

$

0.81

$

4.17

$

3.15

Diluted

$

1.07

$

0.76

$

4.00

$

2.98

 

Weighted average shares outstanding:

Basic

 

63,961

 

63,382

 

63,790

 

63,189

Diluted

 

66,285

 

67,245

 

66,465

 

66,896

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands

Quarter ended

Year to date

December 31,

December 31,

2022

2021

2022

2021

Unaudited

Audited

Unaudited

Audited

 

Operating Activities

 

Net income

$

71,186

$

51,161

$

265,945

$

199,223

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

 

47,469

 

47,350

 

176,546

 

184,092

Stock based compensation

 

49,015

 

49,968

 

182,704

 

153,030

Amortization of premium and discount and accrued interest on marketable securities

 

1,160

 

1,855

 

8,322

 

11,867

Deferred taxes, net

 

(33,236)

 

(9,114)

 

(56,862)

 

(39,316)

Changes in operating assets and liabilities:
Trade Receivables

 

(41,290)

 

(40,149)

 

(126,925)

 

(85,778)

Prepaid expenses and other assets

 

6,983

 

(43,405)

 

(33,290)

 

(79,624)

Trade payables

 

18,280

 

9,254

 

19,923

 

(389)

Accrued expenses and other liabilities

 

47,041

 

41,578

 

36,758

 

64,179

Operating lease right-of-use assets

 

3,579

 

2,758

 

20,393

 

15,075

Deferred revenues

 

8,749

 

(2,276)

 

6,417

 

30,770

Operating lease liabilities

 

(3,703)

 

(3,206)

 

(26,191)

 

(18,011)

Amortization of discount on debt

 

1,151

 

2,946

 

4,582

 

14,469

Loss in respect of debt extinguishment

 

-

 

5,893

 

1,206

 

13,969

Other

 

322

 

(1,955)

 

187

 

(1,740)

Net cash provided by operating activities

 

176,706

 

112,658

 

479,715

 

461,816

 

Investing Activities

 
Purchase of property and equipment

 

(10,941)

 

(3,658)

 

(31,893)

 

(24,771)

Purchase of Investments

 

(30,840)

 

(40,233)

 

(396,297)

 

(322,129)

Proceeds from Investments

 

33,156

 

44,681

 

355,560

 

270,645

Capitalization of internal use software costs

 

(12,826)

 

(10,453)

 

(49,997)

 

(42,440)

Other

 

-

 

-

 

276

 

-

Payments for business and asset acquisitions, net of cash acquired

 

(30,000)

 

360

 

(30,000)

 

(142,804)

Net cash used in investing activities

 

(51,451)

 

(9,303)

 

(152,351)

 

(261,499)

 

Financing Activities

 
Proceeds from issuance of shares upon exercise of options

 

529

 

942

 

953

 

4,426

Purchase of treasury shares

 

(24,543)

 

(24,272)

 

(144,944)

 

(73,180)

Dividends paid to noncontrolling interest

 

-

 

(953)

 

(376)

 

(1,754)

Purchase of subsidiaries shares from non-controlling interest

 

-

 

(14,000)

 

-

 

(14,000)

Repayment of debt

 

(4)

 

(83,993)

 

(20,132)

 

(177,308)

Net cash used in financing activities

 

(24,018)

 

(122,276)

 

(164,499)

 

(261,816)

 

Effect of exchange rates on cash and cash equivalents

 

3,877

 

(119)

 

(8,425)

 

(2,112)

 

Net change in cash, cash equivalents and restricted cash

 

105,114

 

(19,040)

 

154,440

 

(63,611)

Cash, cash equivalents and restricted cash, beginning of period

$

427,982

$

397,696

$

378,656

$

442,267

 

Cash, cash equivalents and restricted cash, end of period

$

533,096

$

378,656

$

533,096

$

378,656

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)

Quarter ended

Year to date

December 31,

December 31,

2022

2021

2022

2021

GAAP revenues

$

568,560

$

515,473

$

2,181,294

$

1,921,150

Valuation adjustment on acquired deferred cloud revenue

 

-

 

-

 

-

 

4,372

Valuation adjustment on acquired deferred services revenue

 

-

 

-

 

-

 

175

Non-GAAP revenues

$

568,560

$

515,473

$

2,181,294

$

1,925,697

 
 

GAAP cost of revenue

$

180,980

$

165,245

$

683,688

$

624,456

Amortization of acquired intangible assets on cost of cloud

 

(18,940)

 

(18,796)

 

(74,791)

 

(72,015)

Amortization of acquired intangible assets on cost of services

 

-

 

(669)

 

(377)

 

(4,228)

Amortization of acquired intangible assets on cost of product

 

(241)

 

(277)

 

(1,017)

 

(1,130)

Valuation adjustment on acquired deferred cost of cloud

 

13

 

21

 

54

 

97

Cost of cloud revenue adjustment (1)

 

(2,451)

 

(2,661)

 

(8,840)

 

(7,949)

Cost of services revenue adjustment (1)

 

(3,233)

 

(3,597)

 

(11,497)

 

(10,513)

Cost of product revenue adjustment (1)

 

(147)

 

(185)

 

(548)

 

(595)

Non-GAAP cost of revenue

$

155,981

$

139,081

$

586,672

$

528,123

 
 

GAAP gross profit

$

387,580

$

350,228

$

1,497,606

$

1,296,694

Gross profit adjustments

 

24,999

 

26,164

 

97,016

 

100,880

Non-GAAP gross profit

$

412,579

$

376,392

$

1,594,622

$

1,397,574

 
 

GAAP operating expenses

$

299,756

$

285,161

$

1,162,433

$

1,032,785

Research and development (1)

 

(9,736)

 

(9,980)

 

(33,561)

 

(25,221)

Sales and marketing (1)

 

(13,993)

 

(14,495)

 

(57,114)

 

(42,021)

General and administrative (1)

 

(20,549)

 

(19,403)

 

(73,540)

 

(70,776)

Amortization of acquired intangible assets

 

(5,748)

 

(10,538)

 

(28,901)

 

(41,308)

Valuation adjustment on acquired deferred commission

 

43

 

54

 

196

 

215

Non-GAAP operating expenses

$

249,773

$

230,799

$

969,513

$

853,674

 
 

GAAP financial and other expense (income), net

$

(9,127)

$

7,696

$

(10,159)

$

23,290

Amortization of discount on debt and loss from extinguishment of debt

 

(1,151)

 

(8,874)

 

(5,788)

 

(28,279)

Non-GAAP financial and other income, net

$

(10,278)

$

(1,178)

$

(15,947)

$

(4,989)

 
 

GAAP taxes on income

$

25,765

$

6,210

$

79,387

$

41,396

Tax adjustments re non-GAAP adjustments

 

12,037

 

23,898

 

54,897

 

71,157

Non-GAAP taxes on income

$

37,802

$

30,108

$

134,284

$

112,553

 
 

GAAP net income

$

71,186

$

51,161

$

265,945

$

199,223

Valuation adjustment on acquired deferred revenue

 

-

 

-

 

-

 

4,547

Valuation adjustment on acquired deferred cost of cloud revenue

 

(13)

 

(21)

 

(54)

 

(97)

Amortization of acquired intangible assets

 

24,929

 

30,280

 

105,086

 

118,681

Valuation adjustment on acquired deferred commission

 

(43)

 

(54)

 

(196)

 

(215)

Share-based compensation (1)

 

50,061

 

50,321

 

185,052

 

154,213

Acquisition related expenses (2)

 

48

 

-

 

48

 

2,862

Amortization of discount on debt and loss from extinguishment of debt

 

1,151

 

8,874

 

5,788

 

28,279

Tax adjustments re non-GAAP adjustments

 

(12,037)

 

(23,898)

 

(54,897)

 

(71,157)

Non-GAAP net income

$

135,282

$

116,663

$

506,772

$

436,336

 
 

GAAP diluted earnings per share

$

1.07

$

0.76

$

4.00

$

2.98

 

Non-GAAP diluted earnings per share

$

2.04

$

1.73

$

7.62

$

6.52

 

Shares used in computing GAAP diluted earnings per share

 

66,285

 

67,245

 

66,465

 

66,896

 

Shares used in computing non-GAAP diluted earnings per share

 

66,285

 

67,245

 

66,465

 

66,896

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)

U.S. dollars in thousands

 

(1)

Share-based Compensation

Quarter ended

Year to date

December 31,

December 31,

2022

2021

2022

2021

 

Cost of cloud revenue

$

2,451

$

2,661

$

8,840

$

7,949

Cost of services revenue

 

3,233

 

3,597

 

11,497

 

10,513

Cost of product revenue

 

147

 

185

 

548

 

595

Research and development

 

9,736

 

9,980

 

33,561

 

25,221

Sales and marketing

 

13,993

 

14,495

 

57,114

 

42,021

General and administrative

 

20,501

 

19,403

 

73,492

 

67,914

$

50,061

$

50,321

$

185,052

$

154,213

 
 

(2)

Acquisition related expenses

 

Quarter ended

Year to date

December 31,

December 31,

2022

2021

2022

2021

 

Research and development

 

-

 

-

 

-

 

-

Sales and marketing

 

-

 

-

 

-

 

-

General and administrative

 

48

 

-

 

48

 

2,862

 

48

 

-

 

48

 

2,862

 

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