NICE Reports Strong Second Quarter 2024 Financial Results

authorIntellectia.AI2024-08-15
4
NICE.O
Illustration by Intellectia.AI

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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