Hoboken, New Jersey, May 4, 2017 - NICE (NASDAQ: NICE) today announced results for the first quarter 2017 ended March 31, 2017.
First Quarter 2017 Financial Highlights
Revenue growth of 35% year-over-year||
Revenue growth of 36% year-over-year|
Operating income of $28 million compared to $37 million last year||
Operating income of $74 million, up 27% year-over-year |
Effective tax rate of 8.8% compared to 14.5% last yearr||
Effective tax rate of 23.2% compared to 19.5% last year|
Diluted EPS from continuing operations of $0.28 versus $0.58 last year||Diluted EPS from continuing operations of $0.89 versus $0.81 last year|
Cash flow from operations increased 16% to $133 million|
“We are very pleased with the results for the first quarter of 2017,” said Barak Eilam, CEO of NICE. “Non-GAAP revenue grew 36% and non-GAAP operating income increased 27% compared to the same quarter last year. We were also very pleased to see a substantial increase in recurring revenue. With recurring revenue now representing almost two thirds of our total revenue, it gives us additional confidence and visibility into the business.”
Mr. Eilam continued, “The strong financial performance this quarter is the result of the good progress that we are seeing in our four strategic pillars: cloud, omni channel, analytics and artificial intelligence. As a result, we experienced particular strength for our analytics solutions, where we have seen a high volume of very large deals. Additionally, we are very pleased with progress of the integration of inContact, and we are witnessing accelerated momentum in our cloud business.”
GAAP Financial Highlights for the First Quarter Ended March 31:
The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.
Revenues: First quarter 2017 total revenues increased 35.3% to $305.6 million compared to $226.0 million for the first quarter of 2016.
Gross Profit: First quarter 2017 gross profit increased to $189.9 million compared to $151.5 million for the first quarter of 2016, and gross margin was 62.1% compared to 67.0% for the first quarter of 2016.
Operating Income: First quarter 2017 operating income and operating margin were $27.9 million and 9.1%, respectively, compared to $37.5 million and 16.6%, respectively, for the first quarter of 2016.
Net Income from Continuing Operations: First quarter 2017 net income and net margin were $17.3 million and 5.7%, respectively, compared to $35.3 million and 15.6%, respectively, for the first quarter of 2016.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the first quarter of 2017 were $0.28, compared to $0.58 in the first quarter of 2016.
Operating Cash Flow and Cash Balance: First quarter 2017 operating cash flow was $132.7 million. In the first quarter, $8.4 million was used for share repurchases. As of March 31, 2017, total cash and cash equivalents, short term investments and marketable securities were $388.7 million, and total debt was $441.5 million.
Non-GAAP Financial Highlights for the First Quarter Ended March 31:
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.
Revenues: First quarter 2017 non-GAAP total revenues were $308.0 million, up 36.2% from $226.1 million for the first quarter of 2016.
Gross Profit: First quarter 2017 non-GAAP gross profit increased to $215.2 million compared to $159.7, and non-GAAP gross margin was 69.9%, compared to 70.6% for the first quarter of 2016.
Operating Income: First quarter 2017 non-GAAP operating income increased to $73.6 million compared to $57.8 million, and non-GAAP operating margin was 23.9% compared to 25.6% for the first quarter of 2016.
Net Income from Continuing Operations: First quarter 2017 non-GAAP net income increased to $55.1 million compared to $49.6 million, and non-GAAP net income margin was 17.9% compared to 21.9% for the first quarter of 2016.
Fully Diluted Earnings Per Share from Continuing Operations: First quarter 2017 non-GAAP fully diluted earnings per share increased 9.9% to $0.89, compared to $0.81 for the first quarter of 2016.
Second Quarter and Full Year 2017 Guidance:
Second Quarter 2017: Second quarter 2017 non-GAAP total revenues are expected to be in a range of $309 million to $319 million. Second quarter 2017 non-GAAP fully diluted earnings per share are expected to be in a range of $0.84 to $0.90.
Full Year 2017: Full year 2017 non-GAAP total revenues are reiterated to an expected range of $1,330 million to $1,354 million. Full year 2017 non-GAAP fully diluted earnings per share are increased to an expected range of $3.85 to $4.05.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, May 4th, 2017 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 in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-242-041. The Passcode is 150 329 66. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company’s website at
http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032-9687. The Passcode for the replay is 897 068 81.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share-based compensation, and certain business combination accounting entries, settlement, amortization of discount on long term debt and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. 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. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. 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.
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.
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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:
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Eilam, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the Company). In some cases, such forward-looking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company’s customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and the risk that we will not be able to successfully execute on the Company’s cloud business strategy and generate profitability. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.