Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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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 August 2024 (Report No. 3)

Commission File Number: 0-27466

NICE LTD.

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(Translation of Registrant’s Name into English)

13 Zarchin Street, P.O. Box 690, Ra’anana 4310602, Israel

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(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): ____

 

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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, 333-226930, 333-228911, 333-249186 and 333-270969), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 26% Year-Over-Year Cloud Revenue Growth Along With Continued Double-Digit Growth in Profitability for Q2 2024, Dated August 15, 2024.

 

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 LTD.
	By:	/s/ Tali Mirsky
	Name:	Tali Mirsky
	Title:	Corporate VP, General Counsel and Corporate Secretary
	Dated: August 15, 2024

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EXHIBIT INDEX

99.1	Press Release: NICE Reports 26% Year-Over-Year Cloud Revenue Growth Along With Continued Double-Digit Growth in Profitability for Q2 2024, Dated August 15, 2024.

 

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Exhibit 99.1

NICE Reports 26% Year-Over-Year Cloud Revenue Growth Along With

Continued Double-Digit Growth in Profitability for Q2 2024

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Total revenue growth of 14% year over year

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Company raises its full-year 2024 EPS guidance

•

Operating cash flow of $170 million increased 160% year over year

•

Share repurchases accelerated to $146 million for Q2 2024

Hoboken, New Jersey, August 15, 2024 - NICE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2024, as compared to the corresponding period of the previous year.

Second Quarter 2024 Financial Highlights

GAAP	Non-GAAP
Total revenue was $664.4 million and increased 14%	Total revenue was $664.4 million and increased 14%
Cloud revenue was $481.7 million and increased 26%	Cloud revenue was $481.7 million and increased 26%
Operating income was $128.8 million and increased 22%	Operating income was $201.7 million and increased 19%
Operating margin was 19.4% compared to 18.1% last year	Operating margin was 30.4% compared to 29.2% last year
Diluted EPS was $1.76 and increased 34%	Diluted EPS was $2.64 and increased 24%
Operating cash flow was $169.7 million and increased 160%

“We are pleased to conclude the first half of 2024 with strong Q2 results across the board. Total revenue increased 14% to $664 million, once again driven by industry-leading cloud growth of 26%,” said Barak Eilam, CEO of NICE. “The growing adoption of our extensive and innovative portfolio of AI solutions fueled an all-time record quarter for CXone bookings.

“Our consistently robust top line results continue to drive top-tier software industry profitability. We reported our fourth consecutive quarter of non-GAAP operating margin of at least 30% and exceeded the high end our non-GAAP earnings per share guidance range with $2.64. Additionally, we generated $170 million in operating cash in Q2, and $725 million over the past 12 months.”

Mr. Eilam continued, “We continue to gain market share with the most comprehensive CX platform in CXone, rapid innovation in AI that is experiencing significant enterprise adoption and the flexibility afforded by our rock-solid financial position. We are positioned to further expand our market leadership and deliver long-term growth.”

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GAAP Financial Highlights for the Second Quarter Ended June 30:

Revenues: Second quarter 2024 total revenues increased 14% to $664.4 million compared to $581.1 million for the second quarter of 2023.

Gross Profit: Second quarter 2024 gross profit was $439.6 million compared to $391.4 million for the second quarter of 2023. Second quarter 2024 gross margin was 66.2% compared to 67.4% for the second quarter of 2023.

Operating Income: Second quarter 2024 operating income increased 22% to $128.8 million compared to $105.4 million for the second quarter of 2023. Second quarter 2024 operating margin was 19.4% compared to 18.1% for the second quarter of 2023.

Net Income: Second quarter 2024 net income increased 33% to $115.8 million compared to $87.4 million for the second quarter of 2023. Second quarter 2024 net income margin was 17.4% compared to 15.0% for the second quarter of 2023.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2024 increased 34% to $1.76 compared to $1.31 in the second quarter of 2023.

Cash Flow and Cash Balance: Second quarter 2024 operating cash flow was $169.7 million. In the second quarter 2024, $146.1 million was used for share repurchases. As of June 30, 2024, total cash and cash equivalents, and short-term investments were $1,503.6 million. Our debt was $457.9 million, resulting in net cash and investments of $1,045.7 million.

Non-GAAP Financial Highlights for the Second Quarter Ended June 30:

Revenues: Second quarter 2024 total revenues increased 14% to $664.4 million compared to $581.1 million for the second quarter of 2023.

Gross Profit: Second quarter 2024 gross profit was $469.4 million compared to $416.3 million for the second quarter of 2023. Second quarter 2024 gross margin was 70.7% compared to 71.6% for the second quarter of 2023.

Operating Income: Second quarter 2024 operating income increased 19% to $201.7 million compared to $169.6 million for the second quarter of 2023. Second quarter 2024 operating margin was 30.4% compared to 29.2% for the second quarter of 2023.

Net Income: Second quarter 2024 net income increased 23% to $174.2 million compared to $141.5 million for the second quarter of 2023. Second quarter 2024 net income margin was 26.2% compared to 24.4% for the second quarter of 2023.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2024 increased 24% to $2.64 compared to $2.13 in the second quarter of 2023.

 

Third Quarter and Full Year 2024 Guidance:

 

Third-Quarter 2024:

Third-quarter 2024 non-GAAP total revenues are expected to be in a range of $676 million to $686 million, representing 13% growth year over year at the midpoint.

Third-quarter 2024 non-GAAP fully diluted earnings per share are expected to be in a range of $2.62 to $2.72, representing 18% growth year over year at the midpoint.

Full-Year 2024:

Full-year 2024 non-GAAP total revenues are expected to be in a range of $2,715 million to $2,735 million, representing 15% growth at the midpoint compared to full-year 2023.

The Company increased full-year 2024 non-GAAP fully diluted earnings per share which are expected to be in a range of $10.60 to $10.80, representing 22% growth at the midpoint compared to full-year 2023.

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Quarterly Results Conference Call

NICE management will host its earnings conference call today August 15, 2024, 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 [phone], 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 and other expenses, amortization of discount on debt and loss from extinguishment of 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.

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, [phone], [e-mail], ET

Omri Arens, [phone], [e-mail], CET

Corporate Media Contact

Christopher Irwin-Dudek, [phone], [e-mail], 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' marks, please see: http://www.nice.com/nice-trademarks.

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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, 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, 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 impact of conflicts in the Middle East, 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.

 

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NICE LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

		June 30,				December 31,
		2024				2023
		Unaudited				Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	739,556			$	511,795
Short-term investments			764,042				896,044
Trade receivables			580,101				585,154
Debt hedge option			-				121,922
Prepaid expenses and other current assets			216,908				197,967
Total current assets			2,300,607				2,312,882
LONG-TERM ASSETS:
Property and equipment, net			181,689				174,414
Deferred tax assets			190,471				178,971
Other intangible assets, net			245,299				305,501
Operating lease right-of-use assets			98,957				104,565
Goodwill			1,820,746				1,821,969
Prepaid expenses and other long-term assets			214,050				219,332
Total long-term assets			2,751,212				2,804,752
TOTAL ASSETS		$	5,051,819			$	5,117,634
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables		$	73,129			$	66,036
Deferred revenues and advances from customers			342,405				302,649
Current maturities of operating leases			13,057				13,747
Debt			-				209,229
Accrued expenses and other liabilities			509,779				528,660
Total current liabilities			938,370				1,120,321
LONG-TERM LIABILITIES:
Deferred revenues and advances from customers			60,839				52,458
Operating leases			96,861				102,909
Deferred tax liabilities			8,057				8,596
Debt			457,930				457,081
Other long-term liabilities			22,900				21,769
Total long-term liabilities			646,587				642,813
SHAREHOLDERS' EQUITY
Nice Ltd's equity			3,455,172				3,341,132
Non-controlling interests			11,690				13,368
Total shareholders' equity			3,466,862				3,354,500
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	5,051,819			$	5,117,634

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NICE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

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

		Quarter ended								Year ended
		June 30,								June 30,
		2024				2023				2024				2023
		Unaudited				Unaudited				Unaudited				Unaudited
Revenue:
Cloud		$	481,693			$	381,948			$	950,099			$	749,515
Services			147,611				158,945				296,524				318,802
Product			35,096				40,220				77,086				84,655
Total revenue			664,400				581,113				1,323,709				1,152,972
Cost of revenue:
Cloud			170,702				134,984				340,680				266,580
Services			46,663				47,019				92,749				94,924
Product			7,418				7,710				14,023				14,805
Total cost of revenue			224,783				189,713				447,452				376,309
Gross profit			439,617				391,400				876,257				776,663
Operating expenses:
Research and development, net			86,522				78,640				174,354				156,741
Selling and marketing			157,645				151,964				312,660				300,443
General and administrative			66,626				55,367				138,980				120,543
Total operating expenses			310,793				285,971				625,994				577,727
Operating income			128,824				105,429				250,263				198,936
Financial and other income, net			(15,645	)			(9,350	)			(29,654	)			(18,071	)
Income before tax			144,469				114,779				279,917				217,007
Taxes on income			28,684				27,424				57,759				52,711
Net income		$	115,785			$	87,355			$	222,158			$	164,296
Earnings per share:
Basic		$	1.82			$	1.37			$	3.50			$	2.57
Diluted		$	1.76			$	1.31			$	3.36			$	2.47
Weighted average shares outstanding:
Basic			63,534				63,723				63,406				63,831
Diluted			65,856				66,435				66,192				66,548

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

		Quarter ended								Year ended
		June 30,								June 30,
		2024				2023				2024				2023
		Unaudited				Unaudited				Unaudited				Unaudited
Operating Activities
Net income		$	115,785			$	87,355			$	222,158			$	164,296
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			51,520				42,033				103,280				83,879
Share-based compensation			42,226				39,314				86,630				84,275
Amortization of premium and discount and accrued interest on marketable securities			(2,096	)			(224	)			(3,328	)			1,046
Deferred taxes, net			(15,773	)			(8,994	)			(11,407	)			(16,872	)
Changes in operating assets and liabilities:
Trade Receivables, net			(6,707	)			(8,665	)			1,430				8,087
Prepaid expenses and other current assets			1,740				(10,674	)			10,501				(22,046	)
Operating lease right-of-use assets			3,372				2,435				6,653				5,503
Trade payables			17,702				(9,668	)			6,939				(10,848	)
Accrued expenses and other current liabilities			(40,836	)			(48,832	)			(43,704	)			(49,526	)
Deferred revenue			4,742				(18,424	)			50,281				14,823
Operating lease liabilities			(3,976	)			(3,494	)			(7,776	)			(7,401	)
Amortization of discount on long-term debt			425				1,129				974				2,283
Loss from extinguishment of debt			-				37				-				37
Other			1,544				1,926				1,527				2,789
Net cash provided by operating activities			169,668				65,254				424,158				260,325
Investing Activities
Purchase of property and equipment			(6,455	)			(4,513	)			(16,976	)			(17,619	)
Purchase of Investments			(105,991	)			(121,817	)			(437,113	)			(191,359	)
Proceeds from sales of marketable investments			51,971				107,653				568,121				172,552
Capitalization of internal use software costs			(15,238	)			(14,491	)			(31,174	)			(28,627	)
Net cash provided by (used in) investing activities			(75,713	)			(33,168	)			82,858				(65,053	)
Financing Activities
Proceeds from issuance of shares upon exercise of options			520				765				2,312				1,724
Purchase of treasury shares			(146,088	)			(65,196	)			(187,603	)			(129,911	)
Dividends paid to noncontrolling interest			-				-				(2,681	)			(1,480	)
Repayment of debt			-				(1,534	)			(87,435	)			(1,534	)
Net cash used in financing activities			(145,568	)			(65,965	)			(275,407	)			(131,201	)
Effect of exchange rates on cash and cash equivalents			(1,309	)			546				(3,248	)			1,713
Net change in cash, cash equivalents and restricted cash			(52,922	)			(33,333	)			228,361				65,784
Cash, cash equivalents and restricted cash, beginning of period		$	794,597			$	632,212			$	513,314			$	533,095
Cash, cash equivalents and restricted cash, end of period		$	741,675			$	598,879			$	741,675			$	598,879
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
Cash and cash equivalents		$	739,556			$	598,079			$	739,556			$	598,079
Restricted cash included in other current assets		$	2,119			$	800			$	2,119			$	800
Total cash, cash equivalents and restricted cash shown in the statement of cash flows		$	741,675			$	598,879			$	741,675			$	598,879

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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
		June 30,								June 30,
		2024				2023				2024				2023
GAAP revenues		$	664,400			$	581,113			$	1,323,709			$	1,152,972
Non-GAAP revenues		$	664,400			$	581,113			$	1,323,709			$	1,152,972
GAAP cost of revenue		$	224,783			$	189,713			$	447,452			$	376,309
Amortization of acquired intangible assets on cost of cloud			(24,133	)			(19,396	)			(49,500	)			(38,765	)
Amortization of acquired intangible assets on cost of product			(150	)			(257	)			(410	)			(506	)
Cost of cloud revenue adjustment (1,2)			(2,852	)			(2,253	)			(5,854	)			(4,200	)
Cost of services revenue adjustment (1)			(2,617	)			(2,864	)			(4,995	)			(5,748	)
Cost of product revenue adjustment (1)			(30	)			(140	)			(60	)			(278	)
Non-GAAP cost of revenue		$	195,001			$	164,803			$	386,633			$	326,812
GAAP gross profit		$	439,617			$	391,400			$	876,257			$	776,663
Gross profit adjustments			29,782				24,910				60,819				49,497
Non-GAAP gross profit		$	469,399			$	416,310			$	937,076			$	826,160
GAAP operating expenses		$	310,793			$	285,971			$	625,994			$	577,727
Research and development (1,2)			(7,484	)			(7,783	)			(15,627	)			(16,181	)
Sales and marketing (1,2)			(13,210	)			(13,055	)			(27,382	)			(24,157	)
General and administrative (1,2)			(17,429	)			(14,059	)			(37,260	)			(35,355	)
Amortization of acquired intangible assets			(4,972	)			(4,428	)			(10,211	)			(8,943	)
Valuation adjustment on acquired deferred commission			8				36				23				76
Non-GAAP operating expenses		$	267,706			$	246,682			$	535,537			$	493,167
GAAP financial and other income, net		$	(15,645	)		$	(9,350	)		$	(29,654	)		$	(18,071	)
Amortization of discount and loss of extinguishment on debt			(425	)			(1,166	)			(974	)			(2,320	)
Change in fair value of contingent consideration			(35	)			(578	)			(79	)			(578	)
Non-GAAP financial and other income, net		$	(16,105	)		$	(11,094	)		$	(30,707	)		$	(20,969	)
GAAP taxes on income		$	28,684			$	27,424			$	57,759			$	52,711
Tax adjustments re non-GAAP adjustments			14,963				11,793				28,779				24,101
Non-GAAP taxes on income		$	43,647			$	39,217			$	86,538			$	76,812
GAAP net income		$	115,785			$	87,355			$	222,158			$	164,296
Amortization of acquired intangible assets			29,255				24,081				60,121				48,214
Valuation adjustment on acquired deferred commission			(8	)			(36	)			(23	)			(76	)
Share-based compensation (1)			43,622				40,154				89,266				85,919
Acquisition related and other expenses (2)			-				-				1,912				-
Amortization of discount and loss of extinguishment on debt			425				1,166				974				2,320
Change in fair value of contingent consideration			35				578				79				578
Tax adjustments re non-GAAP adjustments			(14,963	)			(11,793	)			(28,779	)			(24,101	)
Non-GAAP net income		$	174,151			$	141,505			$	345,708			$	277,150
GAAP diluted earnings per share		$	1.76			$	1.31			$	3.36			$	2.47
Non-GAAP diluted earnings per share		$	2.64			$	2.13			$	5.22			$	4.16
Shares used in computing GAAP diluted earnings per share			65,856				66,435				66,192				66,548
Shares used in computing non-GAAP diluted earnings per share			65,856				66,435				66,192				66,548

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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,
			2024				2023				2024				2023
	Cost of cloud revenue		$	2,852			$	2,253			$	5,792			$	4,200
	Cost of services revenue			2,617				2,864				4,995				5,748
	Cost of product revenue			30				140				60				278
	Research and development			7,484				7,783				15,297				16,181
	Sales and marketing			13,210				13,055				26,739				24,157
	General and administrative			17,429				14,059				36,383				35,355
			$	43,622			$	40,154			$	89,266			$	85,919

(2)	Acquisition related and other expenses
			Quarter ended								Year to date
			June 30,								June 30,
				2024				2023				2024				2023
	Cost of cloud revenue		$	-			$	-			$	62			$	-
	Research and development			-				-				330				-
	Sales and marketing			-				-				643				-
	General and administrative			-				-				877				-
			$	-			$	-			$	1,912			$	-

 

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

		Quarter ended								Year to date
		June 30,								June 30,
		2024				2023				2024				2023
		Unaudited				Unaudited				Unaudited				Unaudited
GAAP net income		$	115,785			$	87,355			$	222,158			$	164,296
Non-GAAP adjustments:
Depreciation and amortization			51,520				42,033				103,280				83,879
Share-based compensation			42,226				39,314				86,630				84,275
Financial and other expense/ (income), net			(15,645	)			(9,350	)			(29,654	)			(18,071	)
Acquisition related and other expenses			-				-				1,912				-
Valuation adjustment on acquired deferred commission			(8	)			(36	)			(23	)			(76	)
Taxes on income			28,684				27,424				57,759				52,711
Non-GAAP EBITDA		$	222,562			$	186,740			$	442,062			$	367,014

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

		Quarter ended								Year to date
		June 30,								June 30,
		2024				2023				2024				2023
		Unaudited				Unaudited				Unaudited				Unaudited
Net cash provided by operating activities		$	169,668			$	65,254			$	424,158			$	260,325
Purchase of property and equipment			(6,455	)			(4,513	)			(16,976	)			(17,619	)
Capitalization of internal use software costs			(15,238	)			(14,491	)			(31,174	)			(28,627	)
Free Cash Flow (a)		$	147,975			$	46,250			$	376,008			$	214,079

(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.

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