Latest news with #ScottRussell
Forbes
2 days ago
- Business
- Forbes
From Chatbots To Workbots: Why NiCE's AI Strategy Focuses On Execution
NiCE is betting that AI agents that complete tasks—not just conversations—will separate winners from pretenders in the enterprise AI race The artificial intelligence hype cycle has reached peak saturation, with technology vendors scrambling to slap "AI-powered" labels on everything from refrigerator recipe suggestions to chatbots that rely on simple keyword matching. Yet, for all the breathless marketing rhetoric, most business leaders are still waiting for AI that simplifies operations and improves data analysis. NiCE, a customer experience platform provider, is making a calculated bet that the next phase of enterprise AI won't be about making chatbots sound more human. The next wave of business outcomes will leverage AI agents that can navigate complex business processes from start to finish with minimal human intervention. NiCE's CEO, Scott Russell said, 'Optimizing knowledge is not just critical for AI to truly thrive in your environment, but it's also the key for transforming service from reactive to proactive, identifying opportunities to solve issues and predict future needs.' NiCE's recent product launches and strategic moves reveal a move toward enhanced automation and agentic AI. The first wave of enterprise AI focused primarily on making data more accessible through conversational interfaces—essentially putting a chat layer on top of existing applications and knowledge repositories. While this represented significant progress in democratizing data access, it only scratched the surface of AI's potential business value. Organizations could ask questions and get answers, but the burden of reasoning through complex decisions and taking action remained entirely on human operators. Going forward, technology vendors, such as NiCE, will use AI to deliver solutions that can reason through multifaceted problems and take semi or fully autonomous action. This evolution from conversational AI to agentic AI represents the difference between AI that informs and AI that performs. Agentic AI enhances a company's ability to analyze context, weigh multiple variables, make informed decisions based on key business performance indicators, and execute actions across interconnected systems. Traditional conversational AI helps a customer service representative find relevant information. Still, agentic AI can help a representative evaluate a customer's complete history more easily, assess risk factors, determine appropriate responses based on business rules, and automatically trigger the necessary workflows to resolve issues end-to-end. "There's a big difference between AI that talks and AI that gets things done," explains Barry Cooper, President of NiCE's CX Division. "While others are building agents that mimic conversations, we're building agents that fulfill customer needs—end to end." This distinction becomes crucial when examining NiCE's CXone Mpower Agents. Traditional AI chatbots had limited access to data, offered scripted responses, and were confined to specific areas of the business, such as front-office or back-office operations. NiCE's AI agent platform aim to break through these constraints by operating across the entire enterprise ecosystem—from initial customer contact through mid-office approvals to back-end fulfillment systems. Admittedly, Agentic AI is the AI buzzword of 2025, but early, well-scoped use cases show promise. Technology companies are increasingly working to streamline AI deployment as traditional approaches require extensive technical resources, custom development, and lengthy implementation cycles. NiCE's model simplifies AI agent creation while maintaining enterprise-grade sophistication through what they call vibe coding, allowing business users to tailor each agent's personality and communication style without requiring technical expertise. While the concept of vibe coding remains ill-defined, and its merits are hotly debated within the enterprise software community, there is a broad consensus around the underlying goal of making AI agents easier to code and deploy. The specific term matters less than the fundamental shift toward empowering business users to create and customize AI functionality without requiring deep technical expertise. In a rapidly evolving tech landscape, no single vendor can deliver everything an enterprise needs to succeed with AI, cloud, data, and digital transformation. Today, companies are no longer looking for isolated solutions—they need interconnected ecosystems. That's why strategic partnerships are essential. By working together, enterprise technology vendors can bridge data and function silos, improving workflows and accelerating innovation. Just as importantly, these alliances help enterprises extract greater value from existing technology investments by ensuring that new capabilities work in concert with the tools already in place. Over the past several months, NiCE has expanded its partnership with Amazon Web Services (AWS) and added ServiceNow and Snowflake to the mix. At Interactions 2025, NiCE announced an expanded collaboration with AWS, bringing together NiCE's domain expertise and rich interaction data with AWS's cloud infrastructure and generative AI services, including Amazon Bedrock, Amazon Q, and the Amazon Nova family of large language models. The partnership addresses some of the most pressing challenges facing enterprise AI deployments: fragmented workflows, disconnected data, and inconsistent global performance. The partnership focuses on three core pillars. First, content-aware automation ensures that AI-generated responses are highly relevant and context-specific. Using the Amazon Q Index, Mpower Agents are equipped with up-to-date business content—from product documentation to policy details and case histories—enabling them to respond accurately and confidently in real time. Second, the integration delivers enterprise-wide orchestration by bridging front, middle, and back-office operations. NiCE's CXone Mpower Orchestrator automates workflows across functional teams, while Amazon Q Business extends this reach into a broader set of enterprise applications—eliminating silos and streamlining complex processes. Additionally, global scalability is made possible through AWS's robust cloud infrastructure. With low-latency performance and high availability across regions, multinational organizations can deploy and scale AI-driven customer service experiences quickly and consistently around the world. NiCE's partnership strategy also extends beyond AWS to include other critical enterprise platforms, such as ServiceNow and Snowflake. NiCE's latest partnership with ServiceNow aims to eliminate long-standing service gaps by tightly integrating real-time customer engagement with enterprise workflow automation. Announced at ServiceNow's Knowledge 2025 event, the collaboration integrates NiCE's customer service platform with ServiceNow's AI and Customer Service Management (CSM) tools to streamline operations across the entire organization, from the front office to the back. The goal: fully automated customer service fulfillment. The combined solution routes inquiries based on sentiment, intent, and service-level agreements (SLAs)—bridging siloed departments to accelerate resolution times and enhance both customer and employee experiences. Role-based AI copilots assist agents and back-office teams with real-time insights and next-best actions, while continuous optimization tools flag issues and launch workflows automatically. These relationships provide access to complementary technologies and customer bases, allowing NiCE to integrate with the broader enterprise software ecosystem that companies rely on for operations, data management, and workflow automation. NiCE's strategic collaboration with Snowflake aims to unlock the full value of customer interaction data by making it accessible, secure, and actionable across the enterprise. By integrating Snowflake's AI Data Cloud with CXone Mpower, NICE can improve data sharing, breaking down silos that have traditionally limited the impact of customer insights. Snowflake serves as the backbone of the CXone Mpower data lake, centralizing interaction data and enriching it with information from other enterprise systems. This unified data foundation allows organizations to automate key processes—from billing to claims handling—while powering AI-driven analytics, dashboards, and decision-making. The result: faster fulfillment, greater accuracy, and a deeper, organization-wide understanding of the customer experience. Apparently, 2025 is the year of the brand refresh. The technology industry has witnessed updates from Five9, Google's G, Hitachi HPE, and Qualcomm's introduction of Dragonwing, alongside NiCE's own transformation. Every brand refresh has its own story to tell, but NiCE's new logo and marketing campaign represent more than a desire for fresh typography and color schemes. The rebrand indicates the company's strategic desire to expand its AI vision beyond the contact center to encompass its broader portfolio of finance and security solutions. The company describes the rebrand as positioning "NICE to empower brands to deliver AI-powered experiences that are proactive, human-centered and intuitive—whether connecting with customers, protecting communities or combatting financial crime." NiCE's solution involves partnering with actress Kristen Bell, who serves as the face of the company's "NiCE World" brand campaign. The initiative positions Bell as the "NiCEst Person in the World," NiCE said the campaign "builds on NiCE's reimagined brand, championing a future where AI isn't just intelligent – it's connected, intuitive and working behind the scenes to make life better. The enterprise AI market remains in flux, with new entrants and existing players continually repositioning themselves. NiCE's focus on domain expertise, integration depth, strategic partnerships, and automation suggests a company that understands both the technical and implementation requirements necessary for large-scale AI adoption. As enterprises increasingly demand AI that delivers results, NiCE's bet on fulfillment-focused automation may prove prescient. Of course, there's still the matter of cost and return on investment. Most companies struggle to understand and plan for the true product and operational costs of AI. Organizations need to work with their technology vendors to deploy well-scoped use case that deliver measurable return on investment, fast. The question isn't whether AI will transform customer experience—it's which companies will build AI that completes the transformation rather than just talking about it.
Scoop
4 days ago
- Business
- Scoop
Please Explain! The Proponents Of The Retrospective Law Change Need To Front Up
Those responsible for pushing a retrospective law change that could wipe out the rights of tens of thousands of New Zealanders must now front up to provide a formal 'please- explain'. That's the call from Scott Russell, the lawyer leading the Banking Class Action against ANZ and ASB, who has formally written to Cameron Brewer, MP as Chair of Parliament's Finance and Expenditure Committee urging him to call key decision-makers and proponents of the Credit Contracts and Consumer Finance Amendment Bill to publicly explain the rationale for this extraordinary intervention. The Committee has the power to compel individuals to appear and a more clear-cut case for using that power would be hard to imagine. 'The Government is rewriting the law half-way through an active legal case to benefit two powerful Australian-owned banks – and no one seems to be taking responsibility for making the decision,' said Russell. 'Hon Scott Simpson, Commerce Minister says the banks didn't ask for it. The banks haven't commented. MBIE won't release the documents. And the public is being asked to accept it all on blind trust. Enough. It's time for answers.' Russell's submission urges the Select Committee to summon the following to 'Please Explain': The Chair and Chief Executives of ANZ and ASB to explain their role in the process; Senior MBIE officials to justify the sudden shift to retrospective legislation following private meetings with the banks; The Reserve Bank to provide any evidence backing claims that the law change is needed to protect financial stability. 'If their rationale is sound, let's hear it. Because right now, no one has offered a credible explanation for why a law change ruled out during the public consultation stage was suddenly resurrected behind closed doors – and timed perfectly to potentially limit the liability of two banks in a live court case.' The Government has refused to release unredacted versions of the Regulatory Impact Statement and delayed key OIA responses until after the public submission period closes on 23 June. The Ombudsman is now investigating. 'The Select Committee process cannot be allowed to rubber-stamp a law change that overrides consumer rights and undermines public trust – especially when those responsible won't even show up to explain it,' Russell said. 'If this is in the public interest, let the public hear why.'
1News
29-05-2025
- Business
- 1News
National accused of putting needs of banks before everyday Kiwis
The National Party is being accused of putting the needs of banks before everyday Kiwis after introducing legislation that could mean two big Australian-owned lenders avoid paying millions of dollars in refunds. One customer said the amendment to lending laws would allow the banks to get off "scot-free" while the minister in charge said it simply allowed the courts to have more discretion in settling disputes. The Credit Contracts and Consumer Finance Act (CCCFA) passed its first reading in Parliament last week and included a retrospective amendment relating to consequences for historical disclosure breaches by lenders. An investigation by the Commerce Commission had found two banks did not disclose the necessary information regarding customer loans. It meant the banks were potentially liable to refund millions of dollars in fees and interest. 'We should just be able to trust our bank' ADVERTISEMENT Lawyer Scott Russell, acting on behalf of those taking the class action, said the omission regarded "core business" for the banks. 'It's simple stuff. It's disclosure rules that allow ordinary New Zealanders to understand their financial position,' Russell said. Anthony Simons, a small business owner, was among the 170,000 customers who' took legal action against ANZ and ASB banks. 'We're just a hardworking Kiwi family trying to pay off our mortgage, struggling sometimes, and we should just be able to trust our bank that they're going to do the right thing in disclosing the right information,' Simons said. But, after four years battling through the courts, the Government last week passed the first reading of the legislation which changed the rules — retrospectively. Banks entitled to 'judicial fairness' – Minister The Minister for Commerce and Consumer Affairs, Scott Simpson, said the bill before Parliament did not affect the class action. ADVERTISEMENT 'What it does is it gives the courts the ability to use their discretion about what will be a fair and equitable outcome to the case,' he said. 'Banks, no matter what you may or may not think of them, are surely entitled to the same judicial fairness as any other entity or person.' A Cabinet paper by the minister released last month highlighted the class action against the banks, adding that "addressing these concerns through retrospective legislation is likely to attract criticism". 'Well, there will be criticism because it is retrospective and retrospective legislation is unusual but not completely unknown in our political system,' Simpson said. Russell claimed it was unfair. 'We've taken it right through to the Supreme Court and, right where we're getting to crunch time, the banks have contacted their mates in the National Party who have agreed to potentially wipe these refunds. It's hundreds of millions of dollars,' he said. Possible changes 'don't take any rights away from consumers' – banks ADVERTISEMENT ANZ and ASB Bank said the proposed amendments to the bill would not halt the current class action – or future cases. In a statement to 1News, ANZ said the proposed amendments "will not stop the current class action progressing, nor will it prevent potential future cases". "They will simply confirm that when considering these cases, the court has discretion to decide what a fair outcome should be. This change does not remove the rights and protections of consumers.' ASB Bank, meanwhile, told 1News that the potential changes "don't take any rights away from consumers, and will not prevent the current court case, or any future cases, from proceeding". "They simply clarify a confusing piece of legislation and confirm that the court has jurisdiction to decide on an outcome that is fair and reasonable.' Simpson added that, currently, for cases that occurred between 2015 and 2019, the courts could only hand down one penalty. 'And that is a full refund of all interest and all fees, no matter how small or minor the error or omission was,' he said. ADVERTISEMENT But Russell said penalties "are clear under the legislation". "All of a sudden, those penalties are being wiped out and replaced with something that's not clear which is what is a reasonable penalty.' While all three coalition parties supported the bill at its first reading, NZ First had concerns about the retrospective aspect and wanted to hear more official advice and public feedback before deciding if it would back the bill entirely. The issue would now be considered by a Parliamentary select committee.
Yahoo
15-05-2025
- Business
- Yahoo
NICE Reports 12% Year-Over-Year Cloud Revenue Growth for the First Quarter 2025 and Raises Full-Year 2025 EPS Guidance
Double-digit year-over-year EPS growth Cash from operations was a quarterly record of $285 million and increased 12% year over year Company announces new $500 million share repurchase program HOBOKEN, N.J., May 15, 2025--(BUSINESS WIRE)--NICE (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2025, as compared to the corresponding periods of the previous year. First Quarter 2025 Financial Highlights GAAP Non-GAAP Total revenue was $700.2 million and increased 6% Total revenue was $700.2 million and increased 6% Cloud revenue was $526.3 million and increased 12% Cloud revenue was $526.3 million and increased 12% Operating income was $148.2 million and increased 22% Operating income was $213.6 million and increased 7% Operating margin was 21.2% compared to 18.4% last year Operating margin was 30.5% compared to 30.3% last year Diluted EPS was $2.01 and increased 26% Diluted EPS was $2.87 and increased 11% Operating cash flow was $285.1 million and increased 12% "We're pleased to report another strong quarter. Cloud revenue grew 12% in the first quarter compared to the same period last year, powering continued profitability, including a further expansion in operating margin and a double-digit increase in earnings per share," said Scott Russell, CEO of NICE. "We also delivered record quarterly cash flow in Q1, with cash from operations rising to $285 million—a 12% year-over-year increase. Our industry-leading financial profile continues to differentiate us from competitors, giving us excellent financial flexibility to invest strategically to accelerate our long-term growth." Mr. Russell added, "We're operating in a rapidly evolving market, and AI is the catalyst driving this transformation. We're leading the way with our industry-defining AI platform, CXone Mpower. As organizations increasingly seek to leverage AI in their customer service operations, they're turning to our CX AI cloud platform. In fact, in the first quarter, our AI and self-service revenue increased 39% year over year — clear evidence of the value of our platform. We've moved beyond orchestrating interactions; we're enabling end-to-end automation from intent to resolution, powered by agentic AI embedded throughout the customer service journey." GAAP Financial Highlights for the First Quarter Ended March 31: Revenues:First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024. Gross Profit:First quarter 2025 gross profit was $468.1 million compared to $436.6 million for the first quarter of 2024. First quarter 2025 gross margin was 66.9% compared to 66.2% for the first quarter of 2024. Operating Income:First quarter 2025 operating income increased 22% to $148.2 million compared to $121.4 million for the first quarter of 2024. First quarter 2025 operating margin was 21.2% compared to 18.4% for the first quarter of 2024. Net Income:First quarter 2025 net income increased 22% to $129.3 million compared to $106.4 million for the first quarter of 2024. First quarter 2025 net income margin was 18.5% compared to 16.1% for the first quarter of 2024. Fully Diluted Earnings Per Share:Fully diluted earnings per share for the first quarter of 2025 increased 26% to $2.01 compared to $1.60 in the first quarter of 2024. Cash Flow and Cash Balance:First quarter 2025 operating cash flow was $285.1 million and $252.3 million was used for share repurchases. As of March 31, 2025, total cash and cash equivalents, and short-term investments were $1,610.7 million. Our debt, was $459.2 million, resulting in net cash and investments of $1,151.5 million. Non-GAAP Financial Highlights for the First Quarter March 31: Revenues:First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024. Gross Profit:First quarter 2025 non-GAAP gross profit increased to $489.2 million compared to $467.7 million for the first quarter of 2024. First quarter 2025 non-GAAP gross margin was 69.9% compared to 70.9% for the first quarter of 2024. Operating Income:First quarter 2025 non-GAAP operating income increased 7% to $213.6 million compared to $199.8 million for the first quarter of 2024. First quarter 2025 non-GAAP operating margin was 30.5% compared to 30.3% for the first quarter of 2024. Net Income:First quarter 2025 non-GAAP net income increased 8% to $185.0 million compared to $171.6 million for the first quarter of 2024. First quarter 2025 non-GAAP net income margin totaled 26.4% compared to 26.0% for the first quarter of 2024. Fully Diluted Earnings Per Share:First quarter 2025 non-GAAP fully diluted earnings per share increased 11% to $2.87 compared to $2.58 for the first quarter of 2024. Second Quarter and Full Year 2025 Guidance: Second-Quarter 2025:Second-quarter 2025 non-GAAP total revenue is expected to be in a range of $709 million to $719 million, representing 7% year over year growth at the midpoint. Second-quarter 2025 non-GAAP fully diluted earnings per share is expected to be in a range of $2.93 to $3.03, representing 13% year over year growth at the midpoint. Full-Year 2025:The Company reiterated full-year 2025 non-GAAP total revenue which is expected to be in a range of $2,918 million to $2,938 million, representing 7% year over year growth at the midpoint. The Company increased full-year 2025 non-GAAP fully diluted earnings per share which is expected to be in a range of $12.28 to $12.48, representing 11% year over year growth at the midpoint. Quarterly Results Conference Call NICE management will host its earnings conference call today, May 15, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company's website. To access, please register by clicking here: Explanation of Non-GAAP measuresNon-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 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. Company Announces New Share Buyback Program of $500 million: The Board of Directors has authorized an additional new $500 million share repurchase program. Repurchases under the program may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing share prices and other considerations. This program does not obligate the Company to acquire any particular amount of ordinary shares and the program may be extended, modified, suspended or discontinued at any time at the Company's discretion. The Company expects to fund repurchases with cash on hand and future cash generated from its operations. About NICEWith 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. 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 trademarks, please see: Forward-Looking StatementsThis 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, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, 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, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products, 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. NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands March 31, December 31, 2025 2024 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents 469,532 $ 481,712 Short-term investments 1,141,145 1,139,996 Trade receivables 643,245 643,985 Prepaid expenses and other current assets 210,184 239,080 Total current assets 2,464,106 2,504,773 LONG-TERM ASSETS: Property and equipment, net 184,274 185,292 Deferred tax assets 239,537 219,232 Other intangible assets, net 211,432 231,346 Operating lease right-of-use assets 71,108 93,083 Goodwill 1,854,973 1,849,668 Prepaid expenses and other long-term assets 206,497 212,512 Total long-term assets 2,767,821 2,791,133 TOTAL ASSETS $ 5,231,927 $ 5,295,906 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 59,414 $ 110,603 Deferred revenues and advances from customers 375,330 299,367 Current maturities of operating leases 12,200 12,554 Debt 459,212 458,791 Accrued expenses and other liabilities 637,388 593,109 Total current liabilities 1,543,544 1,474,424 LONG-TERM LIABILITIES: Deferred revenues and advances from customers 62,123 66,289 Operating leases 67,250 92,258 Deferred tax liabilities 654 1,965 Other long-term liabilities 58,461 57,807 Total long-term liabilities 188,488 218,319 SHAREHOLDERS' EQUITY Nice Ltd's equity 3,499,895 3,589,742 Non-controlling interests - 13,421 Total shareholders' equity 3,499,895 3,603,163 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,231,927 $ 5,295,906 NICE LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except per share amounts) Quarter ended March 31, 2025 2024 Unaudited Unaudited Revenue: Cloud $ 526,323 $ 468,406 Services 140,203 148,913 Product 33,666 41,990 Total revenue 700,192 659,309 Cost of revenue: Cloud 179,474 169,978 Services 46,243 46,086 Product 6,363 6,605 Total cost of revenue 232,080 222,669 Gross profit 468,112 436,640 Operating expenses: Research and development, net 89,102 87,832 Selling and marketing 161,434 155,015 General and administrative 69,407 72,354 Total operating expenses 319,943 315,201 Operating income 148,169 121,439 Financial and other income, net (15,850 ) (14,009 ) Income before tax 164,019 135,448 Taxes on income 34,729 29,075 Net income $ 129,290 $ 106,373 Earnings per share: Basic $ 2.04 $ 1.68 Diluted $ 2.01 $ 1.60 Weighted average shares outstanding: Basic 63,354 63,278 Diluted 64,368 66,528 NICE LTD. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS U.S. dollars in thousands Quarter ended March 31, 2025 2024 Unaudited Unaudited Operating Activities Net income $ 129,290 $ 106,373 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 43,441 51,760 Share-based compensation 43,337 44,404 Amortization of premium and discount and accrued interest on marketable securities (2,275 ) (1,232 ) Deferred taxes, net (21,537 ) 4,366 Changes in operating assets and liabilities: Trade Receivables, net 4,678 8,137 Prepaid expenses and other current assets 28,555 8,761 Operating lease right-of-use assets 5,897 3,281 Trade payables (53,291 ) (10,763 ) Accrued expenses and other current liabilities 49,518 (2,868 ) Deferred revenue 69,574 45,539 Operating lease liabilities (10,189 ) (3,800 ) Amortization of discount on long-term debt 421 549 Other (2,348 ) (17 ) Net cash provided by operating activities 285,071 254,490 Investing Activities Purchase of property and equipment (3,667 ) (10,521 ) Purchase of Investments (49,454 ) (331,122 ) Proceeds from sales of marketable investments 58,358 516,150 Capitalization of internal use software costs (16,766 ) (15,936 ) Payments for business acquisitions, net of cash acquired (36,466 ) - Net cash provided by (used in) investing activities (47,995 ) 158,571 Financing Activities Proceeds from issuance of shares upon exercise of options 675 1,792 Purchase of treasury shares (252,329 ) (41,515 ) Dividends paid to noncontrolling interest - (2,681 ) Repayment of debt - (87,435 ) Net cash used in financing activities (251,654 ) (129,839 ) Effect of exchange rates on cash and cash equivalents 1,147 (1,939 ) Net change in cash, cash equivalents and restricted cash (13,431 ) 281,283 Cash, cash equivalents and restricted cash, beginning of period $ 485,032 $ 513,314 Cash, cash equivalents and restricted cash, end of period $ 471,601 $ 794,597 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 469,532 $ 793,078 Restricted cash included in other current assets $ 2,069 $ 1,519 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 471,601 $ 794,597 NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S. dollars in thousands (except per share amounts) Quarter ended March 31, 2025 2024 GAAP revenues $ 700,192 $ 659,309 Non-GAAP revenues $ 700,192 $ 659,309 GAAP cost of revenue $ 232,080 $ 222,669 Amortization of acquired intangible assets on cost of cloud (15,403 ) (25,367 ) Amortization of acquired intangible assets on cost of product - (260 ) Cost of cloud revenue adjustment (1,2) (3,178 ) (3,002 ) Cost of services revenue adjustment (1) (2,455 ) (2,378 ) Cost of product revenue adjustment (1) (22 ) (30 ) Non-GAAP cost of revenue $ 211,022 $ 191,632 GAAP gross profit $ 468,112 $ 436,640 Gross profit adjustments 21,058 31,037 Non-GAAP gross profit $ 489,170 $ 467,677 GAAP operating expenses $ 319,943 $ 315,201 Research and development (1,2) (4,693 ) (8,143 ) Sales and marketing (1,2) (15,414 ) (14,172 ) General and administrative (1,2) (19,558 ) (19,831 ) Amortization of acquired intangible assets (4,693 ) (5,239 ) Valuation adjustment on acquired deferred commission - 15 Non-GAAP operating expenses $ 275,585 $ 267,831 GAAP financial and other income, net $ (15,850 ) $ (14,009 ) Amortization of discount on debt (421 ) (549 ) Change in fair value of contingent consideration - (44 ) Non-GAAP financial and other income, net $ (16,271 ) $ (14,602 ) GAAP taxes on income $ 34,729 $ 29,075 Tax adjustments re non-GAAP adjustments 10,093 13,816 Non-GAAP taxes on income $ 44,822 $ 42,891 GAAP net income $ 129,290 $ 106,373 Amortization of acquired intangible assets 20,096 30,866 Valuation adjustment on acquired deferred commission - (15 ) Share-based compensation (1) 44,925 45,644 Acquisition related and other expenses (2) 395 1,912 Amortization of discount on debt 421 549 Change in fair value of contingent consideration - 44 Tax adjustments re non-GAAP adjustments (10,093 ) (13,816 ) Non-GAAP net income $ 185,034 $ 171,557 GAAP diluted earnings per share $ 2.01 $ 1.60 Non-GAAP diluted earnings per share $ 2.87 $ 2.58 Shares used in computing GAAP diluted earnings per share 64,368 66,528 Shares used in computing non-GAAP diluted earnings per share 64,368 66,528 NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (1) Share-based compensation Quarter ended March 31, 2025 2024 Cost of cloud revenue $ 3,178 $ 2,940 Cost of services revenue 2,455 2,378 Cost of product revenue 22 30 Research and development 4,693 7,813 Sales and marketing 15,414 13,529 General and administrative 19,163 18,954 $ 44,925 $ 45,644 (2) Acquisition related and other expenses Quarter ended March 31, 2025 2024 Cost of cloud revenue $ - $ 62 Research and development - 330 Sales and marketing - 643 General and administrative 395 877 $ 395 $ 1,912 NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA U.S. dollars in thousands Quarter ended March 31, 2025 2024 Unaudited Unaudited GAAP net income $ 129,290 $ 106,373 Non-GAAP adjustments: Depreciation and amortization 43,441 51,760 Share-based compensation 43,337 44,404 Financial and other income, net (15,850 ) (14,009 ) Acquisition related and other expenses 395 1,912 Valuation adjustment on acquired deferred commission - (15 ) Taxes on income 34,729 29,075 Non-GAAP EBITDA $ 235,342 $ 219,500 NICE LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS U.S. dollars in thousands Quarter ended March 31, 2025 2024 Unaudited Unaudited Free cash flow (a) Net cash provided by operating activities $ 285,071 $ 254,490 Purchase of property and equipment (3,667 ) (10,521 ) Capitalization of internal use software costs (16,766 ) (15,936 ) Free Cash Flow $ 264,638 $ 228,033 (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. View source version on Contacts Investor Relations Contact Marty Cohen, +1 551 256 5354, ir@ ETOmri Arens, +972 3 763-0127, ir@ CET Corporate Media ContactChristopher Irwin-Dudek, +1 201 561 4442, media@ ET
Business Wire
15-05-2025
- Business
- Business Wire
NICE Reports 12% Year-Over-Year Cloud Revenue Growth for the First Quarter 2025 and Raises Full-Year 2025 EPS Guidance
BUSINESS WIRE)-- NICE (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2025, as compared to the corresponding periods of the previous year. First Quarter 2025 Financial Highlights 'We're pleased to report another strong quarter. Cloud revenue grew 12% in the first quarter compared to the same period last year, powering continued profitability, including a further expansion in operating margin and a double-digit increase in earnings per share," said Scott Russell, CEO of NICE. 'We also delivered record quarterly cash flow in Q1, with cash from operations rising to $285 million—a 12% year-over-year increase. Our industry-leading financial profile continues to differentiate us from competitors, giving us excellent financial flexibility to invest strategically to accelerate our long-term growth.' Mr. Russell added, 'We're operating in a rapidly evolving market, and AI is the catalyst driving this transformation. We're leading the way with our industry-defining AI platform, CXone Mpower. As organizations increasingly seek to leverage AI in their customer service operations, they're turning to our CX AI cloud platform. In fact, in the first quarter, our AI and self-service revenue increased 39% year over year — clear evidence of the value of our platform. We've moved beyond orchestrating interactions; we're enabling end-to-end automation from intent to resolution, powered by agentic AI embedded throughout the customer service journey.' GAAP Financial Highlights for the First Quarter Ended March 31: Revenues: First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024. Gross Profit: First quarter 2025 gross profit was $468.1 million compared to $436.6 million for the first quarter of 2024. First quarter 2025 gross margin was 66.9% compared to 66.2% for the first quarter of 2024. Operating Income: First quarter 2025 operating income increased 22% to $148.2 million compared to $121.4 million for the first quarter of 2024. First quarter 2025 operating margin was 21.2% compared to 18.4% for the first quarter of 2024. Net Income: First quarter 2025 net income increased 22% to $129.3 million compared to $106.4 million for the first quarter of 2024. First quarter 2025 net income margin was 18.5% compared to 16.1% for the first quarter of 2024. Fully Diluted Earnings Per Share: Fully diluted earnings per share for the first quarter of 2025 increased 26% to $2.01 compared to $1.60 in the first quarter of 2024. Cash Flow and Cash Balance: First quarter 2025 operating cash flow was $285.1 million and $252.3 million was used for share repurchases. As of March 31, 2025, total cash and cash equivalents, and short-term investments were $1,610.7 million. Our debt, was $459.2 million, resulting in net cash and investments of $1,151.5 million. Non-GAAP Financial Highlights for the First Quarter March 31: Revenues: First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024. Gross Profit: First quarter 2025 non-GAAP gross profit increased to $489.2 million compared to $467.7 million for the first quarter of 2024. First quarter 2025 non-GAAP gross margin was 69.9% compared to 70.9% for the first quarter of 2024. Operating Income: First quarter 2025 non-GAAP operating income increased 7% to $213.6 million compared to $199.8 million for the first quarter of 2024. First quarter 2025 non-GAAP operating margin was 30.5% compared to 30.3% for the first quarter of 2024. Net Income: First quarter 2025 non-GAAP net income increased 8% to $185.0 million compared to $171.6 million for the first quarter of 2024. First quarter 2025 non-GAAP net income margin totaled 26.4% compared to 26.0% for the first quarter of 2024. Fully Diluted Earnings Per Share: First quarter 2025 non-GAAP fully diluted earnings per share increased 11% to $2.87 compared to $2.58 for the first quarter of 2024. Second Quarter and Full Year 2025 Guidance: Second-Quarter 2025: Second-quarter 2025 non-GAAP total revenue is expected to be in a range of $709 million to $719 million, representing 7% year over year growth at the midpoint. Second-quarter 2025 non-GAAP fully diluted earnings per share is expected to be in a range of $2.93 to $3.03, representing 13% year over year growth at the midpoint. Full-Year 2025: The Company reiterated full-year 2025 non-GAAP total revenue which is expected to be in a range of $2,918 million to $2,938 million, representing 7% year over year growth at the midpoint. The Company increased full-year 2025 non-GAAP fully diluted earnings per share which is expected to be in a range of $12.28 to $12.48, representing 11% year over year growth at the midpoint. Quarterly Results Conference Call NICE management will host its earnings conference call today, May 15, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company's website. To access, please register by clicking here: 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 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. Company Announces New Share Buyback Program of $500 million: The Board of Directors has authorized an additional new $500 million share repurchase program. Repurchases under the program may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the 'Exchange Act'). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing share prices and other considerations. This program does not obligate the Company to acquire any particular amount of ordinary shares and the program may be extended, modified, suspended or discontinued at any time at the Company's discretion. The Company expects to fund repurchases with cash on hand and future cash generated from its operations. 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. 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 trademarks, please see: 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, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, 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, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products, 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. NICE LTD. AND SUBSIDIARIES U.S. dollars in thousands (except per share amounts) Quarter ended March 31, 2025 2024 Unaudited Unaudited Revenue: Cloud $ 526,323 $ 468,406 Services 140,203 148,913 Product 33,666 41,990 Total revenue 700,192 659,309 Cost of revenue: Cloud 179,474 169,978 Services 46,243 46,086 Product 6,363 6,605 Total cost of revenue 232,080 222,669 Gross profit 468,112 436,640 Operating expenses: Research and development, net 89,102 87,832 Selling and marketing 161,434 155,015 General and administrative 69,407 72,354 Total operating expenses 319,943 315,201 Operating income 148,169 121,439 Financial and other income, net (15,850 ) (14,009 ) Income before tax 164,019 135,448 Taxes on income 34,729 29,075 Net income $ 129,290 $ 106,373 Earnings per share: Basic $ 2.04 $ 1.68 Diluted $ 2.01 $ 1.60 Weighted average shares outstanding: Basic 63,354 63,278 Diluted 64,368 66,528 Expand NICE LTD. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS U.S. dollars in thousands Quarter ended March 31, 2025 2024 Unaudited Unaudited Operating Activities Net income $ 129,290 $ 106,373 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 43,441 51,760 Share-based compensation 43,337 44,404 Amortization of premium and discount and accrued interest on marketable securities (2,275 ) (1,232 ) Deferred taxes, net (21,537 ) 4,366 Changes in operating assets and liabilities: Trade Receivables, net 4,678 8,137 Prepaid expenses and other current assets 28,555 8,761 Operating lease right-of-use assets 5,897 3,281 Trade payables (53,291 ) (10,763 ) Accrued expenses and other current liabilities 49,518 (2,868 ) Deferred revenue 69,574 45,539 Operating lease liabilities (10,189 ) (3,800 ) Amortization of discount on long-term debt 421 549 Other (2,348 ) (17 ) Net cash provided by operating activities 285,071 254,490 Investing Activities Purchase of property and equipment (3,667 ) (10,521 ) Purchase of Investments (49,454 ) (331,122 ) Proceeds from sales of marketable investments 58,358 516,150 Capitalization of internal use software costs (16,766 ) (15,936 ) Payments for business acquisitions, net of cash acquired (36,466 ) - Net cash provided by (used in) investing activities (47,995 ) 158,571 Financing Activities Proceeds from issuance of shares upon exercise of options 675 1,792 Purchase of treasury shares (252,329 ) (41,515 ) Dividends paid to noncontrolling interest - (2,681 ) Repayment of debt - (87,435 ) Net cash used in financing activities (251,654 ) (129,839 ) Effect of exchange rates on cash and cash equivalents 1,147 (1,939 ) Net change in cash, cash equivalents and restricted cash (13,431 ) 281,283 Cash, cash equivalents and restricted cash, beginning of period $ 485,032 $ 513,314 Cash, cash equivalents and restricted cash, end of period $ 471,601 $ 794,597 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 469,532 $ 793,078 Restricted cash included in other current assets $ 2,069 $ 1,519 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 471,601 $ 794,597 Expand NICE LTD. AND SUBSIDIARIES U.S. dollars in thousands (except per share amounts) Quarter ended March 31, 2025 2024 GAAP revenues $ 700,192 $ 659,309 Non-GAAP revenues $ 700,192 $ 659,309 GAAP cost of revenue $ 232,080 $ 222,669 Amortization of acquired intangible assets on cost of cloud (15,403 ) (25,367 ) Amortization of acquired intangible assets on cost of product - (260 ) Cost of cloud revenue adjustment (1,2) (3,178 ) (3,002 ) Cost of services revenue adjustment (1) (2,455 ) (2,378 ) Cost of product revenue adjustment (1) (22 ) (30 ) Non-GAAP cost of revenue $ 211,022 $ 191,632 GAAP gross profit $ 468,112 $ 436,640 Gross profit adjustments 21,058 31,037 Non-GAAP gross profit $ 489,170 $ 467,677 GAAP operating expenses $ 319,943 $ 315,201 Research and development (1,2) (4,693 ) (8,143 ) Sales and marketing (1,2) (15,414 ) (14,172 ) General and administrative (1,2) (19,558 ) (19,831 ) Amortization of acquired intangible assets (4,693 ) (5,239 ) Valuation adjustment on acquired deferred commission - 15 Non-GAAP operating expenses $ 275,585 $ 267,831 GAAP financial and other income, net $ (15,850 ) $ (14,009 ) Amortization of discount on debt (421 ) (549 ) Change in fair value of contingent consideration - (44 ) Non-GAAP financial and other income, net $ (16,271 ) $ (14,602 ) GAAP taxes on income $ 34,729 $ 29,075 Tax adjustments re non-GAAP adjustments 10,093 13,816 Non-GAAP taxes on income $ 44,822 $ 42,891 GAAP net income $ 129,290 $ 106,373 Amortization of acquired intangible assets 20,096 30,866 Valuation adjustment on acquired deferred commission - (15 ) Share-based compensation (1) 44,925 45,644 Acquisition related and other expenses (2) 395 1,912 Amortization of discount on debt 421 549 Change in fair value of contingent consideration - 44 Tax adjustments re non-GAAP adjustments (10,093 ) (13,816 ) Non-GAAP net income $ 185,034 $ 171,557 GAAP diluted earnings per share $ 2.01 $ 1.60 Non-GAAP diluted earnings per share $ 2.87 $ 2.58 Shares used in computing GAAP diluted earnings per share 64,368 66,528 Expand NICE LTD. AND SUBSIDIARIES U.S. dollars in thousands Quarter ended March 31, 2025 2024 Unaudited Unaudited GAAP net income $ 129,290 $ 106,373 Non-GAAP adjustments: Depreciation and amortization 43,441 51,760 Share-based compensation 43,337 44,404 Financial and other income, net (15,850 ) (14,009 ) Acquisition related and other expenses 395 1,912 Valuation adjustment on acquired deferred commission - (15 ) Taxes on income 34,729 29,075 Non-GAAP EBITDA $ 235,342 $ 219,500 Expand NICE LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS U.S. dollars in thousands Quarter ended March 31, 2025 2024 Unaudited Unaudited Free cash flow (a) Net cash provided by operating activities $ 285,071 $ 254,490 Purchase of property and equipment (3,667 ) (10,521 ) Capitalization of internal use software costs (16,766 ) (15,936 ) Free Cash Flow $ 264,638 $ 228,033 Expand (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. Expand
