NICE's Q4 Results Surpasses Expectations, Cloud Revenue Soars; Sets Bold 2024 Targets

NICE Ltd NICE reported fourth-quarter fiscal 2023 revenue growth of 9.6% year-over-year to $623.19 million, beating the consensus of $618.51 million.

Revenues from Cloud grew 19.5% Y/Y to $428.99 million, with a non-GAAP cloud gross margin of 71.1%, up from 70.5% YoY.

The company’s adjusted operating income increased 15% Y/Y to $186.9 million, and the margin expanded to 30% from 28.6% recorded last year.

Adjusted EPS improved to $2.36 compared to $2.04 in the prior year, beating the consensus of $2.28.

NICE operating cash flow for the quarter totaled $180.5 million and for the fiscal was $561.4 million. In the fourth quarter, $69.0 million was used for share repurchases and $288.4 million for the full year 2023.

As of December 31, 2023, total cash and cash equivalents and short-term investments were $1.407 billion. 

“As we enter 2024 following the outstanding success of last year it is now clear that AI has become an overarching catalyst unlocking multiple vectors of growth. Our leading-edge AI bolstered by our unique data assets is increasing NICE’s cloud win rates across the board, it is the bedrock of our rapid expansion into digital engagement, it is the convergence power igniting the adoption of our platform and it is a source for a growing number of brand-new AI-based solutions with incremental revenue streams,” commented Barak Eilam, CEO of NICE.

Q1 Outlook: NICE expects non-GAAP total revenues of $650 million-$660 million versus $643.57 million consensus; It sees non-GAAP EPS of $2.40-$2.50 versus $2.31 consensus.

2024 Outlook: The company sees Non-GAAP total revenues of $2.715 billion-$2.735 billion versus $2.677 billion consensus; sees Non-GAAP EPS of $10.40-$10.60, versus $9.94 consensus.

Price Action: NICE shares are up 10.23% at $ 248.99 on the last check Thursday.