EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1

NICE Reports 12% Year-Over-Year Cloud Revenue Growth
for the First Quarter 2025 and Raises Full-Year 2025 EPS Guidance


Double-digit year-over-year EPS growth

Cash from operations was a quarterly record of $285 million and increased 12% year over year

Company announces new $500 million share repurchase program

Hoboken, New Jersey, May 15, 2025 - NICE (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2025, as compared to the corresponding periods of the previous year.

First Quarter 2025 Financial Highlights

GAAP
Non-GAAP
Total revenue was $700.2 million and increased 6%
Total revenue was $700.2 million and increased 6%
Cloud revenue was $526.3 million and increased 12%
Cloud revenue was $526.3 million and increased 12%
Operating income was $148.2 million and increased 22%
Operating income was $213.6 million and increased 7%
Operating margin was 21.2% compared to 18.4% last year
Operating margin was 30.5% compared to 30.3% last year
Diluted EPS was $2.01 and increased 26%
Diluted EPS was $2.87 and increased 11%
Operating cash flow was $285.1 million and increased 12%
 

“We’re pleased to report another strong quarter. Cloud revenue grew 12% in the first quarter compared to the same period last year, powering continued profitability, including a further expansion in operating margin and a double-digit increase in earnings per share, said Scott Russell,” CEO of NICE. “We also delivered record quarterly cash flow in Q1, with cash from operations rising to $285 million—a 12% year-over-year increase. Our industry-leading financial profile continues to differentiate us from competitors, giving us excellent financial flexibility to invest strategically to accelerate our long-term growth.”

Mr. Russell added, “We’re operating in a rapidly evolving market, and AI is the catalyst driving this transformation. We’re leading the way with our industry-defining AI platform, CXone Mpower. As organizations increasingly seek to leverage AI in their customer service operations, they’re turning to our CX AI cloud platform. In fact, in the first quarter, our AI and self-service revenue increased 39% year over year — clear evidence of the value of our platform. We’ve moved beyond orchestrating interactions; we’re enabling end-to-end automation from intent to resolution, powered by agentic AI embedded throughout the customer service journey.”


GAAP Financial Highlights for the First Quarter Ended March 31:

Revenues:
First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024.

Gross Profit:
First quarter 2025 gross profit was $468.1 million compared to $436.6 million for the first quarter of 2024. First quarter 2025 gross margin was 66.9% compared to 66.2% for the first quarter of 2024.

Operating Income:
First quarter 2025 operating income increased 22% to $148.2 million compared to $121.4 million for the first quarter of 2024. First quarter 2025 operating margin was 21.2% compared to 18.4% for the first quarter of 2024.

Net Income:
First quarter 2025 net income increased 22% to $129.3 million compared to $106.4 million for the first quarter of 2024. First quarter 2025 net income margin was 18.5% compared to 16.1% for the first quarter of 2024.

Fully Diluted Earnings Per Share:
Fully diluted earnings per share for the first quarter of 2025 increased 26% to $2.01 compared to $1.60 in the first quarter of 2024.

Cash Flow and Cash Balance:
First quarter 2025 operating cash flow was $285.1 million and $252.3 million was used for share repurchases. As of March 31, 2025, total cash and cash equivalents, and short-term investments were $1,610.7 million. Our debt, was $459.2 million, resulting in net cash and investments of $1,151.5 million.

Non-GAAP Financial Highlights for the First Quarter March 31:
 
Revenues:
First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024.

Gross Profit:
First quarter 2025 non-GAAP gross profit increased to $489.2 million compared to $467.7 million for the first quarter of 2024. First quarter 2025 non-GAAP gross margin was 69.9% compared to 70.9% for the first quarter of 2024.

Operating Income:
First quarter 2025 non-GAAP operating income increased 7% to $213.6 million compared to $199.8 million for the first quarter of 2024. First quarter 2025 non-GAAP operating margin was 30.5% compared to 30.3% for the first quarter of 2024.

Net Income:
First quarter 2025 non-GAAP net income increased 8% to $185.0 million compared to $171.6 million for the first quarter of 2024. First quarter 2025 non-GAAP net income margin totaled 26.4% compared to 26.0% for the first quarter of 2024.

Fully Diluted Earnings Per Share:
First quarter 2025 non-GAAP fully diluted earnings per share increased 11% to $2.87 compared to $2.58 for the first quarter of 2024.


Second Quarter and Full Year 2025 Guidance:
 
Second-Quarter 2025:
Second-quarter 2025 non-GAAP total revenue is expected to be in a range of $709 million to $719 million, representing 7% year over year growth at the midpoint.

Second-quarter 2025 non-GAAP fully diluted earnings per share is expected to be in a range of $2.93 to $3.03, representing 13% year over year growth at the midpoint.

Full-Year 2025:
The Company reiterated full-year 2025 non-GAAP total revenue which is expected to be in a range of $2,918 million to $2,938 million, representing 7% year over year growth at the midpoint.

The Company increased full-year 2025 non-GAAP fully diluted earnings per share which is expected to be in a range of $12.28 to $12.48, representing 11% year over year growth at the midpoint.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, May 15, 2025, at 8:30 AM ET, 13:30 GMT,
15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: 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 and other expenses, amortization of discount on debt and the tax effect of the Non-GAAP adjustments.

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.
 
Company Announces New Share Buyback Program of $500 million:
 
The Board of Directors has authorized an additional new $500 million share repurchase program. Repurchases under the program may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing share prices and other considerations. This program does not obligate the Company to acquire any particular amount of ordinary shares and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. The Company expects to fund repurchases with cash on hand and future cash generated from its operations.


About NICE
With NICE (Nasdaq: NICE), it’s never been easier for organizations of all sizes around the globe to create extraordinary customer experiences while meeting key business metrics. Featuring the world’s #1 cloud native customer experience platform, CXone, NICE is a worldwide leader in AI-powered self-service and agent-assisted CX software for the contact center – and beyond. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, partner with NICE to transform - and elevate - every customer interaction. www.nice.com

Investor Relations Contact
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET

Corporate Media Contact
Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET

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 trademarks, 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, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, 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 uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and 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, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, 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, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products, 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
       

   
March 31,
   
December 31,
 
   
2025
   
2024
 
   
Unaudited
   
Audited
 
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
   
469,532
   
$
481,712
 
Short-term investments
   
1,141,145
     
1,139,996
 
Trade receivables
   
643,245
     
643,985
 
Prepaid expenses and other current assets
   
210,184
     
239,080
 
                 
Total current assets
   
2,464,106
     
2,504,773
 
                 
LONG-TERM ASSETS:
               
Property and equipment, net
   
184,274
     
185,292
 
Deferred tax assets
   
239,537
     
219,232
 
Other intangible assets, net
   
211,432
     
231,346
 
Operating lease right-of-use assets
   
71,108
     
93,083
 
Goodwill
   
1,854,973
     
1,849,668
 
Prepaid expenses and other long-term assets
   
206,497
     
212,512
 
                 
Total long-term assets
   
2,767,821
     
2,791,133
 
                 
TOTAL ASSETS
 
$
5,231,927
   
$
5,295,906
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
         
                 
CURRENT LIABILITIES:
               
Trade payables
 
$
59,414
   
$
110,603
 
Deferred revenues and advances from customers
   
375,330
     
299,367
 
Current maturities of operating leases
   
12,200
     
12,554
 
Debt
   
459,212
     
458,791
 
Accrued expenses and other liabilities
   
637,388
     
593,109
 
                 
Total current liabilities
   
1,543,544
     
1,474,424
 
                 
LONG-TERM LIABILITIES:
               
Deferred revenues and advances from customers
   
62,123
     
66,289
 
Operating leases
   
67,250
     
92,258
 
Deferred tax liabilities
   
654
     
1,965
 
Other long-term liabilities
   
58,461
     
57,807
 
                 
Total long-term liabilities
   
188,488
     
218,319
 
                 
SHAREHOLDERS' EQUITY
               
Nice Ltd's equity
   
3,499,895
     
3,589,742
 
Non-controlling interests
   
-
     
13,421
 
                 
Total shareholders' equity
   
3,499,895
     
3,603,163
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
5,231,927
   
$
5,295,906
 



NICE LTD. AND SUBSIDIARIES
     
CONSOLIDATED STATEMENTS OF INCOME
     
U.S. dollars in thousands (except per share amounts)
     

   
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
   
Unaudited
   
Unaudited
 
             
Revenue:
           
Cloud
 
$
526,323
   
$
468,406
 
Services
   
140,203
     
148,913
 
Product
   
33,666
     
41,990
 
Total revenue
   
700,192
     
659,309
 
                 
Cost of revenue:
               
Cloud
   
179,474
     
169,978
 
Services
   
46,243
     
46,086
 
Product
   
6,363
     
6,605
 
Total cost of revenue
   
232,080
     
222,669
 
                 
Gross profit
   
468,112
     
436,640
 
                 
Operating expenses:
               
Research and development, net
   
89,102
     
87,832
 
Selling and marketing
   
161,434
     
155,015
 
General and administrative
   
69,407
     
72,354
 
Total operating expenses
   
319,943
     
315,201
 
                 
Operating income
   
148,169
     
121,439
 
                 
Financial and other income, net
   
(15,850
)
   
(14,009
)
                 
Income before tax
   
164,019
     
135,448
 
Taxes on income
   
34,729
     
29,075
 
Net income
 
$
129,290
   
$
106,373
 
                 
Earnings per share:
               
Basic
 
$
2.04
   
$
1.68
 
Diluted
 
$
2.01
   
$
1.60
 
                 
Weighted average shares outstanding:
               
Basic
   
63,354
     
63,278
 
Diluted
   
64,368
     
66,528
 



NICE LTD. AND SUBSIDIARIES
     
CONSOLIDATED CASH FLOW STATEMENTS
     
U.S. dollars in thousands
     

   
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
   
Unaudited
   
Unaudited
 
             
Operating Activities
           
             
Net income
 
$
129,290
   
$
106,373
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
Depreciation and amortization
   
43,441
     
51,760
 
Share-based compensation
   
43,337
     
44,404
 
Amortization of premium and discount and accrued interest on marketable securities
   
(2,275
)
   
(1,232
)
Deferred taxes, net
   
(21,537
)
   
4,366
 
Changes in operating assets and liabilities:
               
Trade Receivables, net
   
4,678
     
8,137
 
Prepaid expenses and other current assets
   
28,555
     
8,761
 
Operating lease right-of-use assets
   
5,897
     
3,281
 
Trade payables
   
(53,291
)
   
(10,763
)
Accrued expenses and other current liabilities
   
49,518
     
(2,868
)
Deferred revenue
   
69,574
     
45,539
 
Operating lease liabilities
   
(10,189
)
   
(3,800
)
Amortization of discount on long-term debt
   
421
     
549
 
Other
   
(2,348
)
   
(17
)
  Net cash provided by operating activities
   
285,071
     
254,490
 
                 
Investing Activities
               
                 
Purchase of property and equipment
   
(3,667
)
   
(10,521
)
Purchase of Investments
   
(49,454
)
   
(331,122
)
Proceeds from sales of marketable investments
   
58,358
     
516,150
 
Capitalization of internal use software costs
   
(16,766
)
   
(15,936
)
Payments for business acquisitions, net of cash acquired
   
(36,466
)
   
-
 
Net cash provided by (used in) investing activities
   
(47,995
)
   
158,571
 
                 
Financing Activities
               
                 
Proceeds from issuance of shares upon exercise of options
   
675
     
1,792
 
Purchase of treasury shares
   
(252,329
)
   
(41,515
)
Dividends paid to noncontrolling interest
   
-
     
(2,681
)
Repayment of debt
   
-
     
(87,435
)
 Net cash used in financing activities
   
(251,654
)
   
(129,839
)
                 
Effect of exchange rates on cash and cash equivalents
   
1,147
     
(1,939
)
                 
Net change in cash, cash equivalents and restricted cash
   
(13,431
)
   
281,283
 
Cash, cash equivalents and restricted cash, beginning of period
 
$
485,032
   
$
513,314
 
                 
Cash, cash equivalents and restricted cash, end of period
 
$
471,601
   
$
794,597
 
                 
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
 
Cash and cash equivalents
 
$
469,532
   
$
793,078
 
Restricted cash included in other current assets
 
$
2,069
   
$
1,519
 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
 
$
471,601
   
$
794,597
 



NICE LTD. AND SUBSIDIARIES
     
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
     
U.S. dollars in thousands (except per share amounts)
     

   
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
GAAP revenues
 
$
700,192
   
$
659,309
 
Non-GAAP revenues
 
$
700,192
   
$
659,309
 
                 
GAAP cost of revenue
 
$
232,080
   
$
222,669
 
Amortization of acquired intangible assets on cost of cloud
   
(15,403
)
   
(25,367
)
Amortization of acquired intangible assets on cost of product
   
-
     
(260
)
Cost of cloud revenue adjustment (1,2)
   
(3,178
)
   
(3,002
)
Cost of services revenue adjustment (1)
   
(2,455
)
   
(2,378
)
Cost of product revenue adjustment (1)
   
(22
)
   
(30
)
Non-GAAP cost of revenue
 
$
211,022
   
$
191,632
 
                 
GAAP gross profit
 
$
468,112
   
$
436,640
 
Gross profit adjustments
   
21,058
     
31,037
 
Non-GAAP gross profit
 
$
489,170
   
$
467,677
 
                 
GAAP operating expenses
 
$
319,943
   
$
315,201
 
Research and development (1,2)
   
(4,693
)
   
(8,143
)
Sales and marketing (1,2)
   
(15,414
)
   
(14,172
)
General and administrative (1,2)
   
(19,558
)
   
(19,831
)
Amortization of acquired intangible assets
   
(4,693
)
   
(5,239
)
Valuation adjustment on acquired deferred commission
   
-
     
15
 
Non-GAAP operating expenses
 
$
275,585
   
$
267,831
 
                 
GAAP financial and other income, net
 
$
(15,850
)
 
$
(14,009
)
Amortization of discount on debt
   
(421
)
   
(549
)
Change in fair value of contingent consideration
   
-
     
(44
)
Non-GAAP financial and other income, net
   
(16,271
)
   
(14,602
)
                 
GAAP taxes on income
 
$
34,729
   
$
29,075
 
Tax adjustments re non-GAAP adjustments
   
10,093
     
13,816
 
Non-GAAP taxes on income
 
$
44,822
   
$
42,891
 
                 
GAAP net income
 
$
129,290
   
$
106,373
 
Amortization of acquired intangible assets
   
20,096
     
30,866
 
Valuation adjustment on acquired deferred commission
   
-
     
(15
)
Share-based compensation (1)
   
44,925
     
45,644
 
Acquisition related and other expenses (2)
   
395
     
1,912
 
Amortization of discount on debt
   
421
     
549
 
Change in fair value of contingent consideration
   
-
     
44
 
Tax adjustments re non-GAAP adjustments
   
(10,093
)
   
(13,816
)
Non-GAAP net income
 
$
185,034
   
$
171,557
 
                 
GAAP diluted earnings per share
 
$
2.01
   
$
1.60
 
                 
Non-GAAP diluted earnings per share
 
$
2.87
   
$
2.58
 
                 
Shares used in computing GAAP diluted earnings per share
   
64,368
     
66,528
 
                 
Shares used in computing non-GAAP diluted earnings per share
   
64,368
     
66,528
 



NICE LTD. AND SUBSIDIARIES
     
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
     
U.S. dollars in thousands
     

(1)
Share-based compensation
     

   
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
             
Cost of cloud revenue
   
3,178
   
$
2,940
 
Cost of services revenue
   
2,455
     
2,378
 
Cost of product revenue
   
22
     
30
 
Research and development
   
4,693
     
7,813
 
Sales and marketing
   
15,414
     
13,529
 
General and administrative
   
19,163
     
18,954
 
   
$
44,925
   
$
45,644
 

(2)
Acquisition related and other expenses
     


 
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
             
Cost of cloud revenue
 
$
-
   
$
62
 
Research and development
   
-
     
330
 
Sales and marketing
   
-
     
643
 
General and administrative
   
395
     
877
 
   
$
395
   
$
1,912
 



NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
U.S. dollars in thousands

   
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
   
Unaudited
   
Unaudited
 
             
GAAP net income
 
$
129,290
   
$
106,373
 
Non-GAAP adjustments:
               
Depreciation and amortization
   
43,441
     
51,760
 
Share-based compensation
   
43,337
     
44,404
 
Financial and other income, net
   
(15,850
)
   
(14,009
)
Acquisition related and other expenses
   
395
     
1,912
 
Valuation adjustment on acquired deferred commission
   
-
     
(15
)
Taxes on income
   
34,729
     
29,075
 
Non-GAAP EBITDA
 
$
235,342
   
$
219,500
 



NICE LTD. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
U.S. dollars in thousands

   
Quarter ended
 
   
March 31,
 
   
2025
   
2024
 
   
Unaudited
   
Unaudited
 
Free cash flow (a)
           
Net cash provided by operating activities
 
$
285,071
   
$
254,490
 
                 
Purchase of property and equipment
   
(3,667
)
   
(10,521
)
Capitalization of internal use software costs
   
(16,766
)
   
(15,936
)
                 
Free Cash Flow
 
$
264,638
   
$
228,033
 

(a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.