Why Software Solutions Company NICE Shares Are Rising Today

NICE Ltd NICE shares are trading higher after the company reported Q3 FY23 results.

Non-GAAP revenue grew 8% Y/Y to $601.3 million, beating the consensus of $595.5 million. 

Revenues from Cloud grew 22% Y/Y to $403.3 million, with non-GAAP cloud gross margin at 70.4% (flat Y/Y).

The third quarter non-GAAP operating margin was 30.6% compared to 28.7% a year ago. 

Non-GAAP EPS of $2.27 beat the consensus of $2.15.

NICE generated $120.6 million in operating cash flow in Q3 and held $1.65 billion in cash and equivalents as of September 30, 2023.

The company announced a share buyback program of up to $300 million. 

Outlook: NICE raised FY23 non-GAAP total revenues outlook to $2.359 billion-$2.379 billion from $2.353 billion-$2.373 billion (estimate: $2.36 billion).

The company raised its non-GAAP EPS forecast to $8.58-$8.78 from $8.40-$8.60 (consensus $8.52).

For the full-year 2024, the company forecasts cloud revenue growth of at least 18% year over year, exclusive of any contribution from the LiveVox acquisition, which is expected to close in the first half of 2024.

Price Action: NICE shares are up 6.43% at $190.60 premarket on the last check Thursday.