NICE Reports $790.7 Million Quarterly Revenue and Raises Earnings Outlook

NICE reported third-quarter revenue of $790.7 million on November 4, up 8% from $732 million a year earlier, and raised its full-year adjusted earnings outlook. Net income under generally accepted accounting principles fell to $95.1 million from $144.9 million. The results cover the quarter ended September 30. Chief executive Scott Russell said, “we delivered total revenue and non-GAAP EPS above the high end of our guidance ranges.” Annual recurring revenue from artificial intelligence reached $392 million, up 46% year over year. The company said an unusual $10 million customer credit affected reported growth, including approximately $9 million against non-CXone cloud revenue. Excluding the credit, total revenue would have increased 9.4% and cloud revenue 12.2%. NICE kept its full-year non-GAAP revenue forecast at $3.170 billion to $3.190 billion and raised its non-GAAP diluted earnings-per-share forecast to $11.12 to $11.32. Its guidance assumes approximately 12% annual cloud-revenue growth. Quarterly diluted earnings per share were $1.60 under GAAP and $2.84 on a non-GAAP basis, compared with $2.29 and $3.18 respectively a year earlier. The company also confirmed plans to reduce its global workforce by approximately 5%, simplify management layers and expand partner-led sales and delivery. It expects pretax restructuring charges of $15 million to $20 million, principally in the fourth quarter, and will exclude them from non-GAAP results. At September 30, NICE held $350.9 million in cash, cash equivalents and short-term investments and had no outstanding debt.