NICE Reports Strong Second Quarter 2024 Financial Results
Intellectia.AI2024-08-15
NICE Reports Strong Second Quarter 2024 Financial Results
NICE (NASDAQ:NICE) announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue (GAAP) | $664M | $581.1M | +14% | $663.48M |
| Gross Profit (GAAP) | $439.6M | $391.4M | +12% | N/A |
| Operating Income (GAAP) | $128.8M | $105.4M | +22% | N/A |
| Net Income (GAAP) | $115.8M | $87.4M | +33% | N/A |
| EPS (GAAP) | $1.76 | $1.31 | +34% | N/A |
| Total Revenue (Non-GAAP) | $664.4M | $581.1M | +14% | $663.48M |
| Gross Profit (Non-GAAP) | $469.4M | $416.3M | +13% | N/A |
| Operating Income (Non-GAAP) | $201.7M | $169.6M | +19% | N/A |
| Net Income (Non-GAAP) | $174.2M | $141.5M | +23% | N/A |
| EPS (Non-GAAP) | $2.64 | $2.13 | +24% | $2.58 |
Interpretation: NICE delivered robust financial performance in Q2 2024, surpassing analyst revenue estimates and reporting a 14% year-over-year increase in both GAAP and non-GAAP total revenues. The company's EPS outperformed consensus estimates, demonstrating strong profitability and operational efficiency.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Cloud | N/A | N/A | +26% |
| Total Revenue | $664.4M | $581.1M | +14% |
Interpretation: The 26% year-over-year growth in cloud revenue underscores NICE's strong position in the cloud solutions market, driving the overall 14% revenue increase.
Operational Data
| Metric | Q2 2024 | YoY Change |
|---|---|---|
| Operating Cash Flow | $170M | +160% |
| Share Repurchases | $146M | N/A |
| Total Cash & Equivalents | $1,503.6M | N/A |
| Debt | $457.9M | N/A |
| Net Cash & Investments | $1,045.7M | N/A |
Summary of Executive Comments
CEO Barak Eilam highlighted the company's strong Q2 results driven by industry-leading cloud growth and extensive adoption of AI solutions. He emphasized NICE’s consistent top-tier software industry profitability and the company's market leadership in AI and CX solutions.
Dividends and Share Repurchase Program
NICE has accelerated its share repurchase program, buying back $146 million worth of shares in Q2 2024.
Forward Guidance
NICE has raised its full-year 2024 EPS guidance, reiterating strong growth expectations for both the third quarter and full-year, including: - Q3 2024: Total revenues of $676M to $686M, EPS of $2.62 to $2.72. - Full-Year 2024: Total revenues of $2,715M to $2,735M, EPS of $10.60 to $10.80.
Stock Price Movement
Following the earnings release, NICE’s stock experienced a 4.72% increase.
In conclusion, NICE’s strong financial and operational performance in the second quarter of 2024, combined with raised guidance and strategic share repurchases, positions the company well for continued growth and market leadership.
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