(Translation of Registrant’s Name into English)
|
(Address of Principal Executive Offices)
|
99.1 |
Press Release: NICE Reports Accelerated Total Revenue Growth of 16% and Cloud Revenue Growth of 32% for the Second Quarter of 2021, Dated August 5, 2021.
|
|
NICE LTD.
By: /s/ Tali Mirsky
Name: Tali Mirsky
Title: Corporate VP, General Counsel and Corporate
Secretary
Dated: August 5, 2021
|
99.1 |
GAAP
|
Non-GAAP
|
Revenue of $456 million, growth of 16% year-over-year
|
Revenue of $459 million, growth of 16% year-over-year
|
Cloud revenue of $243 million, growth of 32% year-over-year
|
Cloud revenue of $246 million, growth of 32% year-over-year
|
Gross margin of 67.0% compared to 65.5% last year
|
Gross margin of 72.2% compared to 71.0% last year
|
Operating income of $64 million compared to $56 million last year, growth of 14% year-over-year
|
Operating income of $129.6 million compared to $111.4 million last year, growth of 16%
|
Operating margin of 14.0% compared to 14.3% last year
|
Operating margin of 28.2%, compared to 28.2% last year
|
Diluted EPS of $0.67 versus $0.68 last year, decrease of 1%
|
Diluted EPS of $1.57 versus $1.37 last year, growth of 15%
|
Operating cash flow increased 37% year-over-year to $81.4 million
|
June 30,
|
December 31,
|
|||||||
2021
|
2020
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
343,452
|
$
|
442,267
|
||||
Short-term investments
|
1,064,290
|
1,021,613
|
||||||
Trade receivables
|
331,493
|
303,100
|
||||||
Prepaid expenses and other current assets
|
169,642
|
175,340
|
||||||
Total current assets
|
1,908,877
|
1,942,320
|
||||||
LONG-TERM ASSETS:
|
||||||||
Property and equipment, net
|
143,014
|
137,785
|
||||||
Deferred tax assets
|
35,133
|
32,735
|
||||||
Other intangible assets, net
|
349,924
|
366,003
|
||||||
Operating lease right-of-use assets
|
91,647
|
97,162
|
||||||
Goodwill
|
1,595,613
|
1,503,252
|
||||||
Other long-term assets
|
180,125
|
153,660
|
||||||
Total long-term assets
|
2,395,456
|
2,290,597
|
||||||
TOTAL ASSETS
|
$
|
4,304,333
|
$
|
4,232,917
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
40,850
|
$
|
33,132
|
||||
Deferred revenues and advances from customers
|
327,955
|
311,851
|
||||||
Current maturities of operating leases
|
21,372
|
22,412
|
||||||
Debt
|
187,866
|
259,881
|
||||||
Accrued expenses and other liabilities
|
409,992
|
417,174
|
||||||
Total current liabilities
|
988,035
|
1,044,450
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
73,197
|
36,295
|
||||||
Operating leases
|
86,389
|
92,262
|
||||||
Deferred tax liabilities
|
18,396
|
32,109
|
||||||
Debt
|
425,284
|
421,337
|
||||||
Other long-term liabilities
|
17,514
|
17,980
|
||||||
Total long-term liabilities
|
620,780
|
599,983
|
||||||
SHAREHOLDERS' EQUITY
|
||||||||
Nice Ltd's equity
|
2,672,128
|
2,563,910
|
||||||
Non-controlling interests
|
23,390
|
24,574
|
||||||
Total shareholders' equity
|
2,695,518
|
2,588,484
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
4,304,333
|
$
|
4,232,917
|
Quarter ended
|
Year to date
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Revenue:
|
||||||||||||||||
Cloud
|
$
|
242,724
|
$
|
183,944
|
$
|
470,805
|
$
|
356,572
|
||||||||
Services
|
167,133
|
170,979
|
328,924
|
344,171
|
||||||||||||
Product
|
46,174
|
38,257
|
111,323
|
102,865
|
||||||||||||
Total revenue
|
456,031
|
393,180
|
911,052
|
803,608
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Cloud
|
99,172
|
80,523
|
192,754
|
160,991
|
||||||||||||
Services
|
46,882
|
50,037
|
95,816
|
103,550
|
||||||||||||
Product
|
4,453
|
5,173
|
9,799
|
11,277
|
||||||||||||
Total cost of revenue
|
150,507
|
135,733
|
298,369
|
275,818
|
||||||||||||
Gross profit
|
305,524
|
257,447
|
612,683
|
527,790
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
62,218
|
53,756
|
121,373
|
106,537
|
||||||||||||
Selling and marketing
|
126,195
|
107,155
|
254,754
|
216,776
|
||||||||||||
General and administrative
|
53,133
|
40,398
|
106,105
|
89,511
|
||||||||||||
Total operating expenses
|
241,546
|
201,309
|
482,232
|
412,824
|
||||||||||||
Operating income
|
63,978
|
56,138
|
130,451
|
114,966
|
||||||||||||
Financial and other expense/(income), net
|
9,062
|
(423
|
)
|
12,456
|
1,227
|
|||||||||||
Income before tax
|
54,916
|
56,561
|
117,995
|
113,739
|
||||||||||||
Taxes on income
|
10,515
|
11,956
|
21,383
|
23,020
|
||||||||||||
Net income
|
$
|
44,401
|
$
|
44,605
|
$
|
96,612
|
$
|
90,719
|
||||||||
Less: net loss attributable to non-controlling interests
|
380
|
182
|
383
|
266
|
||||||||||||
Net income attributable to NICE Ltd.'s shareholders
|
$
|
44,781
|
$
|
44,787
|
$
|
96,995
|
$
|
90,985
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.70
|
$
|
0.71
|
$
|
1.53
|
$
|
1.45
|
||||||||
Diluted
|
$
|
0.67
|
$
|
0.68
|
$
|
1.45
|
$
|
1.39
|
||||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
63,108
|
62,638
|
63,096
|
62,557
|
||||||||||||
Diluted
|
66,512
|
65,633
|
66,618
|
65,484
|
Quarter ended
|
Year to date
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
GAAP revenues
|
$
|
456,031
|
$
|
393,180
|
$
|
911,052
|
$
|
803,608
|
||||||||
Valuation adjustment on acquired deferred cloud revenue
|
2,773
|
1,950
|
4,596
|
2,729
|
||||||||||||
Valuation adjustment on acquired deferred services revenue
|
60
|
-
|
166
|
-
|
||||||||||||
Valuation adjustment on acquired deferred product revenue
|
-
|
-
|
-
|
-
|
||||||||||||
Non-GAAP revenues
|
$
|
458,864
|
$
|
395,130
|
$
|
915,814
|
$
|
806,337
|
||||||||
GAAP cost of revenue
|
$
|
150,507
|
$
|
135,733
|
$
|
298,369
|
$
|
275,818
|
||||||||
Amortization of acquired intangible assets on cost of cloud
|
(18,211
|
)
|
(16,064
|
)
|
(35,727
|
)
|
(31,622
|
)
|
||||||||
Amortization of acquired intangible assets on cost of services
|
(1,226
|
)
|
(1,497
|
)
|
(2,451
|
)
|
(3,019
|
)
|
||||||||
Amortization of acquired intangible assets on cost of product
|
(287
|
)
|
(1,125
|
)
|
(570
|
)
|
(2,259
|
)
|
||||||||
Valuation adjustment on acquired deferred cost of cloud
|
26
|
244
|
51
|
537
|
||||||||||||
Cost of cloud revenue adjustment (1)
|
(1,676
|
)
|
(948
|
)
|
(3,170
|
)
|
(1,792
|
)
|
||||||||
Cost of services revenue adjustment (1)
|
(1,646
|
)
|
(1,680
|
)
|
(4,081
|
)
|
(3,280
|
)
|
||||||||
Cost of product revenue adjustment (1)
|
(126
|
)
|
(68
|
)
|
(251
|
)
|
(136
|
)
|
||||||||
Non-GAAP cost of revenue
|
$
|
127,361
|
$
|
114,595
|
$
|
252,170
|
$
|
234,247
|
||||||||
GAAP gross profit
|
$
|
305,524
|
$
|
257,447
|
$
|
612,683
|
$
|
527,790
|
||||||||
Gross profit adjustments
|
25,979
|
23,088
|
50,961
|
44,300
|
||||||||||||
Non-GAAP gross profit
|
$
|
331,503
|
$
|
280,535
|
$
|
663,644
|
$
|
572,090
|
||||||||
GAAP operating expenses
|
$
|
241,546
|
$
|
201,309
|
$
|
482,232
|
$
|
412,824
|
||||||||
Research and development (1,2)
|
(4,111
|
)
|
(2,373
|
)
|
(8,168
|
)
|
(4,988
|
)
|
||||||||
Sales and marketing (1,2)
|
(6,911
|
)
|
(8,797
|
)
|
(17,819
|
)
|
(14,062
|
)
|
||||||||
General and administrative (1,2)
|
(18,688
|
)
|
(11,340
|
)
|
(31,375
|
)
|
(24,174
|
)
|
||||||||
Amortization of acquired intangible assets
|
(9,952
|
)
|
(9,650
|
)
|
(19,660
|
)
|
(19,455
|
)
|
||||||||
Valuation adjustment on acquired deferred commission
|
55
|
36
|
108
|
71
|
||||||||||||
Non-GAAP operating expenses
|
$
|
201,939
|
$
|
169,185
|
$
|
405,318
|
$
|
350,216
|
Quarter ended
|
Year to date
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
GAAP financial and other expense, net
|
$
|
9,062
|
$
|
(423
|
)
|
$
|
12,456
|
$
|
1,227
|
|||||||
Amortization of discount on debt and loss from extinguishment of debt
|
(10,811
|
)
|
(2,532
|
)
|
(14,937
|
)
|
(4,874
|
)
|
||||||||
Non-GAAP financial and other income, net
|
$
|
(1,749
|
)
|
$
|
(2,955
|
)
|
$
|
(2,481
|
)
|
$
|
(3,647
|
)
|
||||
GAAP taxes on income
|
$
|
10,515
|
$
|
11,956
|
$
|
21,383
|
$
|
23,020
|
||||||||
Tax adjustments re non-GAAP adjustments
|
16,529
|
12,499
|
32,343
|
24,790
|
||||||||||||
Non-GAAP taxes on income
|
$
|
27,044
|
$
|
24,455
|
$
|
53,726
|
$
|
47,810
|
||||||||
GAAP net income
|
$
|
44,401
|
$
|
44,605
|
$
|
96,612
|
$
|
90,719
|
||||||||
Valuation adjustment on acquired deferred revenue
|
2,833
|
1,950
|
4,762
|
2,729
|
||||||||||||
Valuation adjustment on acquired deferred cost of cloud revenue
|
(26
|
)
|
(244
|
)
|
(51
|
)
|
(537
|
)
|
||||||||
Amortization of acquired intangible assets
|
29,676
|
28,336
|
58,408
|
56,355
|
||||||||||||
Valuation adjustment on acquired deferred commission
|
(55
|
)
|
(36
|
)
|
(108
|
)
|
(71
|
)
|
||||||||
Share-based compensation (1)
|
31,251
|
25,206
|
62,957
|
46,851
|
||||||||||||
Acquisition related expenses (2)
|
1,907
|
-
|
1,907
|
1,581
|
||||||||||||
Amortization of discount on debt and loss from extinguishment of debt
|
10,812
|
2,532
|
14,937
|
4,874
|
||||||||||||
Tax adjustments re non-GAAP adjustments
|
(16,529
|
)
|
(12,499
|
)
|
(32,343
|
)
|
(24,790
|
)
|
||||||||
Non-GAAP net income
|
$
|
104,270
|
$
|
89,850
|
$
|
207,081
|
$
|
177,711
|
||||||||
GAAP diluted earnings per share
|
$
|
0.67
|
$
|
0.68
|
$
|
1.45
|
$
|
1.39
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
1.57
|
$
|
1.37
|
$
|
3.11
|
$
|
2.71
|
||||||||
Shares used in computing GAAP diluted earnings per share
|
66,512
|
65,633
|
66,618
|
65,484
|
||||||||||||
Shares used in computing non-GAAP diluted earnings per share
|
66,512
|
65,633
|
66,618
|
65,484
|
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
|
||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||
2021
|
2020
|
2021
|
2020
|
||||||||||||||
Cost of cloud revenue
|
$
|
1,676
|
$
|
948
|
$
|
3,170
|
$
|
1,792
|
|||||||||
Cost of services revenue
|
1,646
|
1,680
|
4,081
|
3,280
|
|||||||||||||
Cost of product revenue
|
126
|
68
|
251
|
136
|
|||||||||||||
Research and development
|
4,111
|
2,373
|
8,168
|
4,988
|
|||||||||||||
Sales and marketing
|
6,911
|
8,797
|
17,819
|
13,974
|
|||||||||||||
General and administrative
|
16,781
|
11,340
|
29,468
|
22,681
|
|||||||||||||
$
|
31,251
|
$
|
25,206
|
$
|
62,957
|
$
|
46,851
|
||||||||||
(2)
|
Acquisition related expenses
|
||||||||||||||||
Quarter ended
|
Year to date
|
||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||
2021
|
2020
|
2021
|
2020
|
||||||||||||||
Research and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||
Sales and marketing
|
-
|
-
|
-
|
88
|
|||||||||||||
General and administrative
|
1,907
|
-
|
1,907
|
1,493
|
|||||||||||||
$
|
1,907
|
$
|
-
|
$
|
1,907
|
$
|
1,581
|
Quarter ended
|
Year to date
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
44,402
|
$
|
44,605
|
$
|
96,613
|
$
|
90,719
|
||||||||
Depreciation and amortization
|
45,911
|
45,601
|
90,835
|
89,651
|
||||||||||||
Stock based compensation
|
30,979
|
25,064
|
62,434
|
46,632
|
||||||||||||
Amortization of premium and discount and accrued interest on marketable securities
|
2,066
|
(3,618
|
)
|
5,997
|
(2,870
|
)
|
||||||||||
Deferred taxes, net
|
(16,207
|
)
|
(678
|
)
|
(17,065
|
)
|
(9,870
|
)
|
||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Trade Receivables
|
(2,783
|
)
|
14,134
|
(22,467
|
)
|
14,793
|
||||||||||
Prepaid expenses and other assets
|
(14,103
|
)
|
(20,677
|
)
|
(24,963
|
)
|
(34,768
|
)
|
||||||||
Trade payables
|
(4,912
|
)
|
(13,283
|
)
|
4,792
|
(805
|
)
|
|||||||||
Accrued expenses and other current liabilities
|
(11,064
|
)
|
(33,357
|
)
|
(12,429
|
)
|
(21,460
|
)
|
||||||||
Operating lease right-of-use assets, net
|
4,442
|
4,363
|
8,923
|
8,512
|
||||||||||||
Deferred revenue
|
(3,843
|
)
|
(415
|
)
|
48,060
|
38,098
|
||||||||||
Operating lease liabilities
|
(4,778
|
)
|
(4,132
|
)
|
(10,475
|
)
|
(9,689
|
)
|
||||||||
Amortization of discount on debt
|
3,513
|
2,532
|
7,612
|
4,875
|
||||||||||||
Loss from extinguishment of debt
|
7,298
|
-
|
7,298
|
-
|
||||||||||||
Other
|
519
|
(558
|
)
|
515
|
585
|
|||||||||||
Net cash provided by operating activities
|
81,440
|
59,581
|
245,680
|
214,403
|
||||||||||||
Investing Activities
|
||||||||||||||||
Purchase of property and equipment
|
(10,631
|
)
|
(7,823
|
)
|
(12,960
|
)
|
(17,456
|
)
|
||||||||
Purchase of Investments
|
(70,442
|
)
|
(69,061
|
)
|
(223,748
|
)
|
(154,488
|
)
|
||||||||
Proceeds from Investments
|
112,527
|
78,980
|
167,104
|
164,865
|
||||||||||||
Capitalization of software development costs
|
(11,159
|
)
|
(9,912
|
)
|
(21,275
|
)
|
(19,199
|
)
|
||||||||
Proceeds from business and asset acquisitions adjustments
|
-
|
-
|
444
|
-
|
||||||||||||
Payments for business and asset acquisitions, net of cash acquired
|
(129,306
|
)
|
-
|
(129,306
|
)
|
(50,836
|
)
|
|||||||||
Net cash used in investing activities
|
(109,011
|
)
|
(7,816
|
)
|
(219,741
|
)
|
(77,114
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of share options
|
2,083
|
5,865
|
2,375
|
7,349
|
||||||||||||
Purchase of treasury shares
|
(340
|
)
|
(3,531
|
)
|
(44,562
|
)
|
(27,601
|
)
|
||||||||
Dividends paid to noncontrolling interest
|
(801
|
)
|
-
|
(801
|
)
|
-
|
||||||||||
Capital Lease payments
|
-
|
(15
|
)
|
-
|
(177
|
)
|
||||||||||
Repayment of debt
|
(82,814
|
)
|
-
|
(82,814
|
)
|
-
|
||||||||||
Net cash provided by/(used in) financing activities
|
(81,872
|
)
|
2,319
|
(125,802
|
)
|
(20,429
|
)
|
|||||||||
Effect of exchange rates on cash and cash equivalents
|
1,767
|
902
|
1,048
|
(1,085
|
)
|
|||||||||||
Net change in cash and cash equivalents
|
(107,676
|
)
|
54,986
|
(98,815
|
)
|
115,775
|
||||||||||
Cash and cash equivalents, beginning of period
|
$
|
451,128
|
$
|
289,112
|
$
|
442,267
|
$
|
228,323
|
||||||||
Cash and cash equivalents, end of period
|
$
|
343,452
|
$
|
344,098
|
$
|
343,452
|
$
|
344,098
|
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