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Nice Ltd.
Earnings Release • Nov 8, 2018
6950_rns_2018-11-08_cc9597ac-0419-4a6b-81e6-1931020e2f6f.pdf
Earnings Release
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SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2018 (Report No. 2)
Commission File Number: 0-27466
NICE LTD. (Translation of Registrant's Name into English)
13 Zarchin Street, P.O. Box 690, Ra'anana 4310602, Israel (Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
THE GAAP FINANCIAL STATEMENTS ATTACHED TO THE PRESS RELEASE ATTACHED HERETO AS EXHIBIT 99.1 OF THIS REPORT ON FORM 6-K ARE HEREBY INCORPORATED BY REFERENCE INTO NICE LTD.`S ("NICE") REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-166364, 333-168100, 333-171165, 333-162795, 333-162110, 333-06784, 333-08146, 333-11842, 333-09350, 333-11154, 333-111112, 333-111113, 333-134355, 333- 144589, 333-145981, 333-153230, 333-177510, 333-179408, 333-181375, 333-191176, 333-199904, 333-210341, 333-210343, 333- 210344, 333-214584 and 333-226930), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
CONTENTS
This Report on Form 6-K of NICE consists of the following documents, which are attached hereto and incorporated by reference herein:
99.1 Press Release: NICE Reports Strong Growth in Revenue and Profitability for the Third Quarter 2018 and Increases Full-Year 2018 Revenue and EPS Guidance, Dated November 8, 2018.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
NICE-SYSTEMS LTD.
By: /s/ Tali Mirsky Name: Tali Mirsky Title: Corporate VP, General Counsel and Corporate Secretary
Dated November 8, 2018
EXHIBIT INDEX
99.1 Press Release: NICE Reports Strong Growth in Revenue and Profitability for the Third Quarter 2018 and Increases Full-Year 2018 Revenue and EPS Guidance, Dated November 8, 2018.
NICE Reports Strong Growth in Revenue and Profitability for the Third Quarter 2018 and Increases Full-Year 2018 Revenue and EPS Guidance
Strong Double Digit Growth in Operating Income and Earnings Per Share
Recurring Revenue Increased to 72% of Total Revenue
Hoboken, New Jersey, November 8, 2018 - NICE (NASDAQ: NICE) today announced results for the third quarter and nine months ended September 30, 2018.
| GAAP | Non-GAAP |
|---|---|
| Revenue of \$356 million, growth of 10% year-over-year | Revenue of \$356 million, growth of 9% year-over-year |
| Cloud revenue of \$117 million, growth of 21% year-over-year | Cloud revenue of \$120 million, growth of 20% year-over-year |
| Gross margin of 65.3% compared to 64.3% last year | Gross margin of 70.7% compared to 71.2% last year |
| Operating income of \$47 million compared to \$33 million last |
Operating income of \$91 million compared to \$78 million last |
| year, 41% growth year-over-year | year, 16% growth year-over-year |
| Operating margin of 13.1% compared to 10.3% last year | Operating margin of 25.5% compared to 24.0% last year |
| Diluted EPS of \$0.62 versus \$0.42 last year, 48% growth |
Diluted EPS of \$1.12 versus \$0.95 last year, 18% growth |
| year-over-year | year-over-year |
Third Quarter 2018 Financial Highlights
The GAAP column of the table contains the financial highlights of the third quarter 2018 under ASC 606 with the comparison period under ASC 605. The non-GAAP column of the table contains the financial highlights of the third quarter 2018 under ASC 605 with the comparison period under ASC 605.
"The results reported for the third quarter of 2018 reflect our continued focus on driving excellent execution around our strategic pillars of cloud, analytics and artificial intelligence that led to strong growth on both the top and bottom lines. As we look forward to ending the year on a high note, we now expect to exit 2018 with a cloud revenue run rate of \$550 million up from our previous expectation of \$500 million, while continuing to drive profitability," said Barak Eilam, CEO of NICE.
Mr. Eilam continued, "CXone, our open cloud platform which has gained tremendous market presence among our customers and high regard from industry analysts in just a little over one year since it was introduced, has been our vehicle to deliver our strategic pillars to the customer engagement market. We are now proceeding on a similar course with X-Sight, which was announced just a few weeks ago. X-Sight is the industry's first financial crime and compliance platform-as-a-service that combines advanced analytics and AI, automated data management, and robotics all delivered through the cloud.
"It is clearly evident that the platform strategy embodies the present and future for NICE. With X-Sight and CXone, we now have two significant, market leading, open, cloud platforms to help further penetrate our large and growing addressable market."
GAAP Financial Highlights for the Third Quarter Ended September 30:
The GAAP numbers presented below for the third quarter 2018 are under ASC 606 and the comparison period GAAP numbers for the third quarter 2017 are under ASC 605
Revenues: Third quarter 2018 total revenues increased 10.4% to \$356.2 million compared to \$322.8 million for the third quarter of 2017.
Gross Profit: Third quarter 2018 gross profit and gross margin increased to \$232.7 million and 65.3%, respectively, compared to \$207.4 million and 64.3%, respectively, for the third quarter of 2017.
Operating Income: Third quarter 2018 operating income and operating margin increased to \$46.7 million and 13.1%, respectively, compared to \$33.1 million and 10.3%, respectively, for the third quarter of 2017.
Net Income: Third quarter 2018 net income and net income margin increased to \$39.3 million and 11.0%, respectively, compared to \$26.2 million and 8.1%, respectively, for the third quarter of 2017.
Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2018 increased to \$0.62 compared to \$0.42 in the third quarter of 2017.
Operating Cash Flow and Cash Balance: Third quarter 2018 operating cash flow was \$87.0 million. As of September 30, 2018, total cash and cash equivalents, short term investments and marketable securities were \$656.3 million, and total debt was \$453.9 million.
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
The non-GAAP numbers presented below for the third quarter 2018 and for the comparison period non-GAAP numbers for the third quarter 2017 are both under ASC 605.
Revenues: Third quarter 2018 non-GAAP total revenues increased to \$356.4 million, up 9.1% from \$326.8 million for the third quarter of 2017.
Gross Profit: Third quarter 2018 non-GAAP gross profit increased to \$252.1 compared to \$232.5 million for the third quarter of 2017. Non-GAAP gross margin was 70.7% compared to 71.2% for the third quarter of 2017.
Operating Income: Third quarter 2018 non-GAAP operating income and non-GAAP operating margin increased to \$90.8 million and 25.5%, respectively, from \$78.3 million and 24.0%, respectively, for the third quarter of 2017.
Net Income: Third quarter 2018 non-GAAP net income and non-GAAP net income margin increased to \$71.6 million and 20.1%, respectively, from \$58.9 million and 18.0%, respectively, for the third quarter of 2017.
Fully Diluted Earnings Per Share: Third quarter 2018 non-GAAP fully diluted earnings per share increased 17.9% to \$1.12, compared to \$0.95 for the third quarter of 2017.
Full Year 2018 Guidance:
Guidance for the full-year 2018 is provided using the accounting standard ASC 605 in order to provide better transparency and comparability to 2017 financial data, which was reported under ASC 605.
The Company increased full-year 2018 non-GAAP total revenues to be in an expected range of \$1,450 million to \$1,466 million and increased full-year 2018 non-GAAP fully diluted earnings per share to be in an expected range of \$4.53 to \$4.69.
The guidance includes the acquisition of Mattersight. The Company expects Mattersight to contribute an annual revenue run rate in a range of \$32 million to \$38 million.
Adoption of the New Revenue Recognition Standard - ASC 606
NICE adopted the new revenue recognition accounting standard, Accounting Standards Codification ("ASC") 606, effective January 1, 2018, on a modified retrospective basis. Financial results for reporting periods during 2018 are presented in compliance with the ASC 606. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard, ASC 605. This press release includes additional information to reconcile the impacts of the adoption of the new revenue recognition standard on the Company's financial results for the quarter ended September 30, 2018.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, November 8th, 2018 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)1296-311-600, United Kingdom 0- 800-678-1161, Israel 1-809-344-364. The Passcode is 538 470 63. 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 295 658 73.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, share-based compensation, certain business combination accounting entries, amortization of discount on long term debt, re-organization expenses, ASC 606 to ASC 605 adjustments 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.
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.
Investors
Marty Cohen, +1 551 256 5354, [email protected], ET Yisca Erez, +972 9 775-3798, [email protected], CET
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 competition, success and growth of the Company's cloud Software-as-a-Service business, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company's business, the Company's dependency on third-party cloud computing platform providers, hosting facilities and service partners, changes in general economic and business conditions, rapidly changing technology, changes in currency exchange rates and interest rates, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel (including, with respect to the Company's acquisition of Mattersight Corporation), successful execution of the Company's growth strategy, the effects of tax reforms and of newly enacted or modified laws, regulation or standards on the Company and its products, and 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 presentation 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 CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
| Quarter ended September 30, |
Year to date September 30, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | |||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||
| Revenue: | ||||||||
| Product | \$ | 60,097 | \$ | 66,931 | \$ | 170,864 | \$ | 204,124 |
| Services | 179,113 | 159,441 | 533,458 | 476,093 | ||||
| Cloud | 116,996 | 96,383 | 329,368 | 259,700 | ||||
| Total revenue | 356,206 | 322,755 | 1,033,690 | 939,917 | ||||
| Cost of revenue: | ||||||||
| Product | 7,854 | 12,944 | 23,386 | 39,668 | ||||
| Services | 55,046 | 52,618 | 170,584 | 165,892 | ||||
| Cloud | 60,559 | 49,812 | 166,690 | 139,152 | ||||
| Total cost of revenue | 123,459 | 115,374 | 360,660 | 344,712 | ||||
| Gross profit | 232,747 | 207,381 | 673,030 | 595,205 | ||||
| Operating expenses: | ||||||||
| Research and development, net | 47,701 | 45,135 | 137,023 | 130,975 | ||||
| Selling and marketing | 90,492 | 87,363 | 270,238 | 254,258 | ||||
| General and administrative | 37,560 | 31,197 | 107,048 | 91,758 | ||||
| Amortization of acquired intangible assets | 10,341 | 10,566 | 31,512 | 31,319 | ||||
| Total operating expenses | 186,094 | 174,261 | 545,821 | 508,310 | ||||
| Operating income | 46,653 | 33,120 | 127,209 | 86,895 | ||||
| Finance and other expense, net | 2,195 | 4,335 | 9,100 | 16,713 | ||||
| Income before tax | 44,458 | 28,785 | 118,109 | 70,182 | ||||
| Taxes on income | 5,175 | 2,612 | 21,065 | 6,279 | ||||
| Net income | \$ | 39,283 | \$ | 26,173 | \$ | 97,044 | \$ | 63,903 |
| Basic earnings per share | \$ | 0.64 | \$ | 0.43 | \$ | 1.58 | \$ | 1.06 |
| Diluted earnings per share | \$ | 0.62 | \$ | 0.42 | \$ | 1.54 | \$ | 1.03 |
| Weighted average number of shares outstanding used to compute: |
||||||||
| Basic earnings per share Diluted earnings per share |
61,448 63,660 |
60,502 62,220 |
61,239 63,157 |
60,304 61,979 |
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS AND ASC 606 TO NON-GAAP ASC 605
U.S. dollars in thousands (except per share amounts)
| Quarter ended | Year to date | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | ||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||
| GAAP revenues | \$ | 356,206 | \$322,755 | \$1,033,690 | \$ | 939,917 | |||
| Valuation adjustment on acquired deferred product revenue | 12 | 37 | 97 | 302 | |||||
| Valuation adjustment on acquired deferred services revenue | 82 | 824 | 588 | 3,915 | |||||
| Valuation adjustment on acquired deferred cloud revenue | 2,329 | 3,135 | 5,631 | 5,994 | |||||
| ASC 606 to ASC 605 revenue adjustment | (2,183) | - | 2,775 | - | |||||
| Non-GAAP revenues | \$ | 356,446 | \$326,751 | \$1,042,781 | \$ | 950,128 | |||
| GAAP cost of revenue | \$ | 123,459 | \$115,374 | \$ 360,660 | \$ | 344,712 | |||
| Amortization of acquired intangible assets on cost of product | (1,094) | (6,072) | (5,019) | (18,486) | |||||
| Amortization of acquired intangible assets on cost of services | (1,523) | (987) | (3,333) | (5,354) | |||||
| Amortization of acquired intangible assets on cost of cloud | (12,937) | (11,756) | (38,397) | (33,706) | |||||
| Valuation adjustment on acquired deferred cost of cloud | 594 | 371 | 1,254 | 1,133 | |||||
| Cost of product revenue adjustment (1) | (59) | (158) | (247) | (494) | |||||
| Cost of services revenue adjustment (1) | (2,113) | (1,903) | (5,762) | (5,625) | |||||
| Cost of cloud revenue adjustment (1,3) | (2,352) | (649) | (3,766) | (2,132) | |||||
| ASC 606 to ASC 605 cost of revenue adjustment | 323 | - | 650 | - | |||||
| Non-GAAP cost of revenue | \$ | 104,298 | \$ 94,220 | \$ 306,040 | \$ | 280,048 | |||
| GAAP gross profit | \$ | 232,747 | \$207,381 | \$ 673,030 | \$ | 595,205 | |||
| Gross profit adjustments | 19,401 | 25,150 | 63,711 | 74,875 | |||||
| Non-GAAP gross profit | \$ | 252,148 | \$232,531 | \$ 736,741 | \$ | 670,080 | |||
| GAAP operating expenses | \$ | 186,094 | \$174,261 | \$ 545,821 | \$ | 508,310 | |||
| Research and development (1,3) | (2,638) | (2,204) | (6,777) | (6,651) | |||||
| Sales and marketing (1,3) | (9,004) | (5,651) | (22,158) | (17,160) | |||||
| General and administrative (1,2,3) | (6,206) | (1,640) | (15,156) | (7,027) | |||||
| Amortization of acquired intangible assets | (10,341) | (10,566) | (31,512) | (31,319) | |||||
| ASC 606 to ASC 605 operating expenses adjustment | 3,459 | - | 6,543 | ||||||
| Non-GAAP operating expenses | \$ | 161,364 | \$154,200 | \$ 476,761 | \$ | 446,153 | |||
| GAAP finance & other expense, net | \$ | 2,195 | \$ | 4,335 | \$ | 9,100 | \$ | 16,713 | |
| Amortization of discount on long-term debt | (2,234) | (2,139) | (6,491) | (11,398) | |||||
| Non-GAAP finance & other expense (income), net | \$ | (39) | \$ | 2,196 | \$ | 2,609 | \$ | 5,315 | |
| GAAP taxes on income | \$ | 5,175 | \$ | 2,612 | \$ | 21,065 | \$ | 6,279 | |
| Tax adjustments re non-GAAP adjustments | 15,322 | 14,611 | 34,413 | 42,298 | |||||
| Tax adjustment re ASC 606 to ASC 605 | (1,264) | - | (935) | - | |||||
| Non-GAAP taxes on income | \$ | 19,233 | \$ 17,223 | \$ | 54,543 | \$ | 48,577 | ||
| GAAP net income | \$ | 39,283 | \$ 26,173 | \$ | 97,044 | \$ | 63,903 | ||
| Valuation adjustment on acquired deferred revenue | 2,423 | 3,996 | 6,316 | 10,211 | |||||
| Valuation adjustment on acquired deferred cost of cloud revenue | (594) | (371) | (1,254) | (1,133) | |||||
| Amortization of acquired intangible assets | 25,895 | 29,381 | 78,261 | 88,865 | |||||
| Share-based compensation (1) | 17,258 | 14,016 | 48,752 | 40,900 | |||||
| Re-organization expenses (2) | - | (3,067) | - | (3,067) | |||||
| Acquisition related expenses (3) | 5,114 | 1,256 | 5,114 | 1,256 | |||||
| Amortization of discount on long term debt | 2,234 | 2,139 | 6,491 | 11,398 | |||||
| Tax adjustments re non-GAAP adjustments | (15,322) | (14,611) | (34,413) | (42,298) | |||||
| ASC 606 to ASC 605 adjustments | (4,701) | - | (3,483) | - | |||||
| Non-GAAP net income | \$ | 71,590 | \$ 58,912 | \$ 202,828 | \$ | 170,035 | |||
| GAAP diluted earnings per share | \$ | 0.62 | \$ | 0.42 | \$ | 1.54 | \$ | 1.03 | |
| Non-GAAP diluted earnings per share | \$ | 1.12 | \$ | 0.95 | \$ | 3.21 | \$ | 2.74 | |
| Shares used in computing GAAP diluted earnings per share | 63,660 | 62,220 | 63,157 | 61,979 | |||||
| Shares used in computing non-GAAP diluted earnings per share | 63,660 | 62,220 | 63,157 | 61,979 |
NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS AND ASC 606 TO NON-GAAP ASC 605 (continued)
U.S. dollars in thousands
(1) Share-based Compensation
| Quarter ended September 30, |
Year to date September 30, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | |||||
| Cost of product revenue | \$ | (59) | \$ (158) |
\$ | (247) | \$ | (494) | |
| Cost of services revenue | (2,113) | (1,903) | (5,762) | (5,625) | ||||
| Cost of cloud revenue | (718) | (649) | (2,132) | (2,132) | ||||
| Research and development | (1,567) | (2,204) | (5,706) | (6,651) | ||||
| Sales and marketing | (8,930) | (5,576) | (22,084) | (17,085) | ||||
| General and administrative | (3,871) | (3,526) | (12,821) | (8,913) | ||||
| \$ | (17,258) | \$ (14,016) | \$ | (48,752) | \$ | (40,900) |
(2) Re-organization expenses
| Quarter ended September 30, |
Year to date | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | ||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||
| General and administrative | - | \$ 3,067 |
- | \$ | 3,067 | |||||
| \$ | - | \$ 3,067 |
\$ | - | \$ | 3,067 |
(3) Acquisition related expenses
| Quarter ended September 30, |
Year to date September 30, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | |||||
| Cost of cloud revenue | \$ | (1,634) | \$ - |
\$ | (1,634) | \$ | - | |
| Research and development | (1,071) | - | (1,071) | - | ||||
| Sales and marketing | (74) | (75) | (74) | (75) | ||||
| General and administrative | (2,335) | (1,181) | (2,335) | (1,181) | ||||
| \$ | (5,114) | \$ (1,256) | \$ | (5,114) | \$ | (1,256) |
NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| September 30, 2018 |
December 31, 2017 |
||||
|---|---|---|---|---|---|
| Unaudited | Audited | ||||
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | \$ | 276,170 | \$ | 328,302 | |
| Short-term investments | 172,942 | 63,951 | |||
| Trade receivables | 219,818 | 230,729 | |||
| Prepaid expenses and other current assets | 96,745 | 70,074 | |||
| Total current assets | 765,675 | 693,056 | |||
| LONG-TERM ASSETS: | |||||
| Long-term investments | 207,234 | 132,820 | |||
| Property and equipment, net | 132,310 | 118,275 | |||
| Deferred tax assets | 15,298 | 11,850 | |||
| Other intangible assets, net | 536,974 | 551,347 | |||
| Goodwill | 1,368,756 | 1,318,242 | |||
| Other long-term assets | 68,461 | 19,496 | |||
| Total long-term assets | 2,329,033 | 2,152,030 | |||
| TOTAL ASSETS | \$ | 3,094,708 | \$ | 2,845,086 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| CURRENT LIABILITIES: | |||||
| Trade payables | \$ | 23,698 | \$ | 29,438 | |
| Deferred revenues and advances from customers | 198,210 | 184,564 | |||
| Accrued expenses and other liabilities | 347,852 | 309,350 | |||
| Total current liabilities | 569,760 | 523,352 | |||
| LONG-TERM LIABILITIES: | |||||
| Deferred revenues and advances from customers | 39,179 | 37,550 | |||
| Deferred tax liabilities | 48,489 | 57,796 | |||
| Long-term debt | 453,887 | 447,642 | |||
| Other long-term liabilities | 32,486 | 29,185 | |||
| Total long-term liabilities | 574,041 | 572,173 | |||
| SHAREHOLDERS' EQUITY | 1,950,907 | 1,749,561 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | \$ | 3,094,708 | \$ | 2,845,086 |
NICE LTD. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands
| Quarter ended Year to date |
||||
|---|---|---|---|---|
| September 30, September 30, |
||||
| 2018 | 2017 | 2018 | 2017 | |
| Unaudited | Unaudited | Unaudited | Unaudited | |
| Operating Activities | ||||
| Net income | 39,283 | 26,173 | 97,044 | 63,903 |
| Depreciation and amortization | 39,426 | 39,153 | 114,283 | 115,309 |
| Stock based compensation | 17,258 | 14,016 | 48,752 | 40,900 |
| Amortization of premium and discount and accrued interest on marketable securities | 137 | 273 | (170) | 424 |
| Deferred taxes, net | (13,142) | (12,646) | (33,054) | (34,188) |
| Changes in operating assets and liabilities: | ||||
| Trade Receivables | (5,771) | 10,930 | (3,083) | 72,810 |
| Prepaid expenses and other current assets | (4,233) | (32,264) | (32,461) | (40,251) |
| Trade payables | (8,940) | 7,605 | (6,608) | 636 |
| Accrued expenses and other current liabilities | 34,643 | 52,829 | 24,179 | 17,228 |
| Deferred revenue | (15,279) | 1,660 | 71,827 | 65,176 |
| Long term liabilities | 573 | (3,583) | (214) | (5,189) |
| Amortization of discount on long term debt | 2,234 | 2,139 | 6,491 | 11,398 |
| Other | 847 | (461) | 720 | (926) |
| Net cash provided by operating activities | 87,036 | 105,824 | 287,706 | 307,230 |
| Investing Activities | ||||
| Purchase of property and equipment | (7,957) | (7,899) | (21,521) | (31,422) |
| Purchase of Investments | (96,544) | (53,791) | (284,467) | (96,017) |
| Proceeds from Investments | 40,093 | 15,610 | 99,802 | 51,626 |
| Capitalization of software development costs | (7,450) | (7,730) | (22,926) | (21,046) |
| Payments for business acquisitions, net of cash acquired | (105,046) | (37,880) | (105,046) | (37,880) |
| Net cash used in investing activities | (176,904) | (91,690) | (334,158) | (134,739) |
| Financing Activities | ||||
| Proceeds from issuance of shares upon exercise of share options | 10,533 | 4,412 | 17,976 | 16,787 |
| Purchase of treasury shares | - | (4,267) | (10,613) | (20,314) |
| Dividends paid | - | - | - | (9,637) |
| Repayment of long term debt | - | - | - | (260,000) |
| Proceeds from issuance of debt, net of costs | - | - | - | 260,842 |
| Repayment of short-term bank loan | (8,436) | - | (8,436) | - |
| Net cash provided by (used in) financing activities | 2,097 | 145 | (1,073) | (12,322) |
| Effect of exchange rates on cash and cash equivalents | (875) | 2,028 | (4,607) | 3,734 |
| Net change in cash and cash equivalents | (88,646) | 16,307 | (52,132) | 163,903 |
| Cash and cash equivalents, beginning of period | 364,816 | 304,622 | 328,302 | 157,026 |
| Cash and cash equivalents, end of period | 276,170 | 320,929 | 276,170 | 320,929 |
נייס מדווחת על צמיחה חזקה בהכנסות ובריווחיות ברבעון השלישי של 2018 ומעלה את תחזית ההכנסות והרווח למניה לשנת 2018
גידול דו ספרתי גבוה ברווח התפעולי וברווח למניה
הכנסות חוזרות מלקוחות )Revenue Recurring (גדלו ל- 72% מסך ההכנסות
הובוקן, ניו ג'רזי, 8 בנובמבר, 2018 – נייס )נאסד"ק: NICE )פרסמה היום את התוצאות לרבעון השלישי 2018 שהסתיים ב30- בספטמבר, .2018
עיקרי התוצאות לרבעון השלישי של :2018
| Non-GAAP | GAAP |
|---|---|
| לאשתקד | לאשתקד |
| בהשוואה | בהשוואה |
| ל 9% | ל 10% |
| ר, גידול ש | ר, גידול ש |
| מיליון דול | מיליון דול |
| של 356 | ל 356 |
| הכנסות | הכנסות ש |
| מאשתקד | מאשתקד |
| ל 20% | ל 21% |
| ר, גידול ש | ר, גידול ש |
| מיליון דול | מיליון דול |
| 120 | 117 |
| ענן בסך | ענן בסך |
| הכנסות מ | הכנסות מ |
| אשתקד | אשתקד |
| 71.2% | 64.3% |
| לעומת | לעומת |
| ל 70.7% | ל 65.3% |
| ח גולמי ש | ח גולמי ש |
| שיעור רוו | שיעור רוו |
| ל ר, גידול ש מיליון דול 78 ל- בהשוואה ר מיליון דול לי של 91 רווח תפעו |
ר, גידול מיליון דול 33 ל- בהשוואה ר מיליון דול לי של 47 רווח תפעו |
| מאשתקד | מאשתקד |
| 16% | של 41% |
| אשתקד | אשתקד |
| 24.0% | 10.3% |
| לעומת | לעומת |
| 25.5% | 13.1% |
| של | של |
| ח תפעולי | ח תפעולי |
| שיעור רוו | שיעור רוו |
| דולר | דולר |
| 0.95 | 0.42 |
| וואה ל- | וואה ל- |
| דולר בהש | דולר בהש |
| של 1.12 | 0.62 |
| מלא | מלא של |
| ה בדילול | ה בדילול |
| רווח למני | רווח למני |
| 18% | 48% |
| ידול של | ידול של |
| אשתקד, ג | אשתקד, ג |
עמודת ה- GAAP שבטבלה למעלה מכילה נתונים פיננסים נבחרים לרבעון השלישי של 2018 תחת התקינה החשבונאית 606 ASC עם נתוני השוואה לתקופה המקבילה אשתקד תחת התקינה החשבונאית 605 ASC.
עמודת ה- GAAP-non שבטבלה למעלה מכילה נתונים פיננסים נבחרים לרבעון השלישי של 2018 תחת התקינה החשבונאית 605 ASC עם נתוני השוואה לתקופה המקבילה אשתקד תחת התקינה החשבונאית 605 ASC.
"תוצאות הרבעון השלישי של 2018 משקפות את המשך היישום המוצלח של האסטרטגיה שלנו המתמקדת בענן, אנליטיקס ובינה מלאכותית, אשר הוביל לצמיחה חזקה בהכנסות וברווח למניה. אנו צופים סיומת חזקה לשנת ,2018 ומעלים את הצפי של קצב הכנסות שנתי מענן ל- 550 מיליון דולר, לעומת צפי קודם שעמד על 500 מיליון דולר, תוך המשך גידול הריווחיות", אמר ברק עילם, מנכ"ל נייס.
מר עילם המשיך, "CXone, פלטפורמת הענן הפתוחה שלנו אשר צברה נוכחות מרשימה בשוק ובקרב לקוחותינו וזכתה להכרה ולהערכה רבה מצד אנליסטים בתעשייה בפרק זמן של מעט יותר משנה מאז שהושקה, היוותה אמצעי מרכזי ליישום האסטרטגיה שלנו לשוק ה – Engagement Customer. כעת, אנו ממשיכים באופן דומה עם פלטפורמת Sight-X אשר הושקה financial crime and compliance -ה בשוק הראשונה platform-as-a-service -ה הינה X-Sight .ספורים שבועות לפני המשלבת מוצרי אנליטיקס מתקדמים, בינה מלאכותית ואוטומציה, והכל בענן.
"ברור כי אסטרטגיית הפלטפורמה מגלמת את ההווה והעתיד של נייס. עם Sight-X ו- CXone, יש לנו שתי פלטפורמות ענן, פתוחות ומובילות שוק שיסייעו להמשך הובלה בשווקי היעד ההולכים וגדלים שלנו".
עיקרי התוצאות הפיננסיות )GAAP )לרבעון השלישי שהסתיים ב- 30 בספטמבר:
נתוני ה- GAAP המוצגים למטה עבור הרבעון השלישי של 2018 מדווחים לפי 606 ASC ונתוני GAAP ההשוואתיים של הרבעון השלישי של 2017 מדווחים לפי 605 ASC.
הכנסות: ההכנסות ברבעון השלישי של 2018 גדלו ב10.4%- ל- 356.2 מיליון דולר, לעומת 322.8 מיליון דולר ברבעון השלישי של .2017
רווח גולמי: הרווח הגולמי ושיעור הרווח הגולמי ברבעון השלישי של 2018 גדלו ל- 232.7 מיליון דולר ו- ,65.3% בהתאמה, לעומת 207.4 מיליון דולר ו- ,64.3% בהתאמה, ברבעון השלישי של .2017
רווח תפעולי: הרווח התפעולי ושיעור הרווח התפעולי ברבעון השלישי של 2018 גדלו ל- 46.7 מיליון דולר ו- ,13.1% בהתאמה, לעומת 33.1 מיליון דולר ו- ,10.3% בהתאמה, ברבעון השלישי של .2017
רווח נקי: הרווח הנקי ושיעור הרווח הנקי ברבעון השלישי של 2018 גדלו ל- 39.3 מיליון דולר ו,11.0%- בהתאמה, לעומת 26.2 מיליון דולר ו- ,8.1% בהתאמה ברבעון השלישי של .2017
רווח למניה בדילול מלא: הרווח למניה בדילול מלא ברבעון השלישי של 2018 גדל ל- 0.62 דולר לעומת 0.42 דולר ברבעון השלישי של .2017
תזרים המזומנים מפעילות שוטפת ויתרת מזומנים: תזרים המזומנים מפעילות שוטפת ברבעון השלישי של 2018 היה 87.0 מיליון דולר. נכון ל30- בספטמבר ,2018 יתרות המזומנים ושווי המזומנים, וכן השקעות לטווח קצר וארוך הסתכמו ב- 656.3 מיליון דולר. סך החוב הסתכם ב- 453.9 מיליון דולר.
עיקרי התוצאות הפיננסיות )GAAP-Non )לרבעון השלישי שהסתיים ב- 30 בספטמבר:
נתוני ה- GAAP-non המוצגים למטה עבור הרבעון השלישי של 2018 ונתוני GAAP-non ההשוואתיים של הרבעון השלישי של 2017 מדווחים לפי 605 ASC.
הכנסות: ההכנסות )GAAP-Non )ברבעון השלישי של 2018 גדלו ל- 356.4 מיליון דולר, גידול של 9.1% לעומת 326.8 מיליון דולר ברבעון השלישי של .2017
רווח גולמי: הרווח הגולמי )GAAP-Non )ברבעון השלישי של 2018 גדל ל- 252.1 מיליון דולר לעומת 232.5 מיליון דולר ברבעון השלישי של .2017 שיעור הרווח הגולמי )GAAP-Non )ברבעון השלישי של 2018 היה 70.7% לעומת 71.2% ברבעון השלישי של .2017
רווח תפעולי: הרווח התפעולי )GAAP-Non )ושיעור הרווח התפעולי )GAAP-Non )ברבעון השלישי של 2018 גדלו ל- 90.8 מיליון דולר ו- ,25.5% בהתאמה, לעומת 78.3 מיליון דולר ו- 24.0% בהתאמה ברבעון השלישי של .2017
רווח נקי: הרווח הנקי )GAAP-Non )ושיעור הרווח הנקי )GAAP-Non )ברבעון השלישי של 2018 גדלו ל- 71.6 מיליון דולר ו- ,20.1% בהתאמה, לעומת 58.9 מיליון דולר ו- 18.0% בהתאמה ברבעון השלישי של .2017
רווח למניה בדילול מלא: הרווח )GAAP-Non )למניה בדילול מלא ברבעון השלישי של 2018 גדל ב- 17.9% ל- 1.12 דולר לעומת 0.95 דולר ברבעון השלישי של .2017
תחזית לשנת :2018
התחזית לשנת 2018 ניתנת לפי 605 ASC על מנת לאפשר שקיפות והשוואה טובה יותר לנתונים הפיננסים של ,2017 שדווחו לפי 605 ASC.
החברה מעלה את תחזית סך ההכנסות )GAAP-Non )לשנת 2018 וצופה שהכנסותיה לשנת 2018 יהיו בטווח שבין 1,450 מיליון דולר לבין 1,466 מיליון דולר. החברה מעלה את תחזית הרווח )GAAP-Non )למניה בדילול מלא בשנת 2018 וצופה שהרווח למניה לשנת 2018 יהיה בטווח שבין 4.53 דולר לבין 4.69 דולר.
התחזית כוללת את רכישתה של חברת Mattersight. קצב ההכנסות השנתי הצפוי שלה הינו בטווח של 32 מיליון דולר עד 38 מיליון דולר.
אימוץ התקינה החשבונאית החדשה להכרה בהכנסות – 606 ASC
נייס אימצה את התקינה החשבונאית החדשה להכרה בהכנסות, 606 ASC, החל מה- 1 לינואר ,2018 לפי השיטה הרטרוספקטיבית המתואמת. התוצאות הפיננסיות לתקופות המדווחות במהלך 2018 מוצגות בהתאם ל- 606 ASC. נתונים פיננסים היסטוריים לתקופות שדווחו לפני 2018 מוצגות בהתאם למספרים שדווחו בעבר תחת התקינה הקודמת להכרה בהכנסות, 605 ASC. למידע נוסף על ההשפעה של התקינה החדשה להכרה בהכנסות על התוצאות הפיננסיות של החברה לרבעון שהסתיים ב- 30 בספטמבר ,2018 ראו מסמך באנגלית.
שיחת ועידה לדיון בתוצאות הרבעוניות
הנהלת נייס תארח שיחת ועידה לדיון בתוצאות הפיננסיות ובתחזית החברה היום, 8 בנובמבר, ,2018 בשעה 8:30 בבוקר שעון החוף המזרחי של ארה"ב, 30:13 לפי שעון גריניץ' ו30:15- לפי שעון ישראל. להשתתפות בשיחה יש לחייג את המספרים הבאים: מארה"ב: 1-866-804-8688 או .+1-718-354-1175 ממדינות אחרות 1296-311-600(0)+44; מבריטניה 0-800- 678-1161; מישראל: .1-809-344-364 קוד הכניסה הוא 63 470 .538 מספרי גישה נוספים מוצגים ב- attended_54=bid?/globalaccess/com.btconferencing.www://http. השיחה תשודר באינטרנט בשידור חי באתר .השיחה אחרי כשעתיים להאזנה זמינה ותהיה http://www.nice.com/news-and-events/ir-eventsבכתובת החברה הקלטה של השיחה תעמוד לרשות המעוניינים למשך 7 ימים אחרי השידור החי וניתן להאזין לה באמצעות חיוג המספר 1-877- 482-6144 מארה"ב, 20-7136-9233(0)+44 ממדינות אחרות ו0-800-032-9687- מבריטניה. קוד הכניסה להקלטה הוא .295 658 73
אודות נייס
נייס )NICE :NASDAQ, ת"א: נייס( הינה המובילה העולמית במתן פתרונות תוכנה, הן ברישיונות תוכנה והן בענן, המאפשרים לארגונים לנקוט בפעולה הבאה הטובה ביותר באמצעות כלים אנליטיים המנתחים מידע מובנה ושאינו מובנה. הפתרונות של נייס מסייעים לארגונים לשפר את חוויית הלקוח, להבטיח ציות לרגולציה, להיאבק בפשיעה פיננסית ולשמור על נכסים. הפתרונות של נייס נמצאים בשימוש של יותר מ000,25- ארגונים ביותר מ150- מדינות, כולל מעל 85 מהחברות המדורגות ב100- Fortune. www.nice.com
מסמך זה מהווה תרגום נוחות בלבד לעיקרי הדוחות ולהודעה לעיתונות באנגלית שפורסמה בארה"ב, המחייבת מבחינת החברה, והכוללת מידע נוסף, בין היתר בנוגע להפרשים בין GAAP ל- GAAP-Non.
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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 competition, success and growth of the Company's cloud Software-as-a-Service business, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company's business, the Company's dependency on third-party cloud computing platform providers, hosting facilities and service partners, changes in general economic and business conditions, rapidly changing technology, changes in currency exchange rates and interest rates, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel (including, with respect to the Company's acquisition of Mattersight Corporation), successful execution of the Company's growth strategy, the effects of tax reforms and of newly enacted or modified laws, regulation or standards on the Company and its products, and 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 presentation 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.
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