NICE Earnings Prediction
The chart below shows how NICE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NICE sees a +2.12% change in stock price 10 days leading up to the earnings, and a -3.03% change 10 days following the report. On the earnings day itself, the stock moves by -2.12%. This data can give you a slight idea of what to expect for the next quarter's release.
NICE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
721.60M
15.79%
4.59%
Gross Margin
67.80%
0.04%
1.63%
Operating Margin
21.45%
-1.88%
4.08%
Net Margin
13.79%
5.27%
-21.33%
EPS
1.54
27.27%
-17.20%
No Data Available
NICE Earnings Analysis
Nice Ltd Corporation (NICE.O) Earnings Conference Call
Positive
Earnings Per Share Beat: NICE Ltd. reported an EPS of $3.02, exceeding expectations of $2.96.
Cloud Revenue Surge: Cloud revenue grew 24% year-over-year to $534 million, marking the highest cloud growth on the largest cloud revenue base in the industry.
Operating Income Surge: Operating income increased by 22% to $227 million, with an operating margin expansion of 150 basis points to 31.5%.
Record Q4 Revenue Growth: Total revenue for Q4 reached a record $722 million, reflecting a 16% year-over-year growth driven by strong cloud revenue.
Operating Cash Flow Surge: NICE generated $250 million in operating cash flow in Q4, totaling $833 million for the full year 2024, a nearly 50% increase over the prior year.
Market Adoption of CXone Mpower: CXone Mpower platform was included in 97% of large enterprise deals over $1 million ARR, showcasing its strong market adoption.
Americas Revenue Growth: The Americas region represented 85% of total revenue in Q4, growing 17% year-over-year, indicating strong performance in this key market.
Record Free Cash Flow: NICE achieved a record $733 million in free cash flow for 2024, surpassing the target of $700 million.
Share Repurchase Commitment: The company repurchased shares totaling $95 million in Q4 and $369 million for the full year 2024, reflecting a commitment to returning value to shareholders.
Negative
Cloud Revenue vs. Services Decline: Cloud revenue growth is strong, but the transition from on-premise to cloud is causing a decrease in services revenue, which fell to $150 million year-over-year.
Cloud Deal Revenue Delays: Large enterprise cloud deals take longer to ramp up, which may lead to short-term delays in revenue recognition despite long-term growth potential.
Market Reliance and Vulnerability: The Americas region, while strong, represents 85% of total revenue, indicating a heavy reliance on this market and potential vulnerability to regional economic shifts.
Limited Geographic Diversification: The EMEA and APAC regions, while growing, still represent a small portion of total revenue (10% and 5% respectively), suggesting limited geographic diversification.
Gross Margin Challenges Ahead: The expected flat gross margin in the near term indicates potential challenges in maintaining profitability as investments in AI and cloud capabilities increase.
Investment Income Decline: The company anticipates less investment income in the second half of 2025 due to debt repayment, which could impact overall financial performance.
Investment vs. Profitability Strain: Despite strong cash flow, the need for continued investment in innovation and cloud capabilities may strain resources and affect short-term profitability.
NICE FAQs
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NICE Earning Call Sentiment
NICE Ltd. (NASDAQ:NICE) Q4 2024 Earnings Call Transcript
NICE.O
-2.66%Positive
The earnings call summary indicates strong financial performance with a 16% increase in revenue and a 28% rise in EPS. The company has also announced an increase in share repurchases, which is generally positive for stock price. However, there are potential risks related to regulatory issues and debt management, but these are balanced by optimistic guidance and strong market positioning. The Q&A section reveals some uncertainties, but overall sentiment remains positive, suggesting a stock price increase of 2% to 8% over the next two weeks.
