HOBOKEN, N.J.--(BUSINESS WIRE)--NICE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2019.
Second Quarter 2019 Financial Highlights
| GAAP | Non-GAAP |
| Revenue of $380 million, growth of 11% year-over-year | Revenue of $381 million, growth of 11% year-over-year |
| Cloud revenue of $142 million, growth of 31% year-over-year | Cloud revenue of $143 million, growth of 30% year-over-year |
| Gross margin of 65.6% compared to 65.3% last year | Gross margin of 70.9% compared to 70.5% last year |
| Operating income of $53 million compared to $46 million last year, an increase of 15% | Operating income of $101 million compared to $89 million last year, an increase of 14% |
| Operating margin of 14.1% compared to 13.6% last year | Operating margin of 26.6% compared to 25.8% last year |
| Diluted EPS of $0.65 versus $0.54 last year, 20% growth year-over-year | Diluted EPS of $1.25 versus $1.10 last year, 14% growth year-over-year |
“We are very pleased with the strong results we reported for the second quarter of 2019, including double digit growth in all key financial metrics,” said Barak Eilam, CEO of NICE. “What continues to stand out is the rapid growth we are seeing in the cloud, driven by the penetration of our two profoundly market differentiating cloud platforms – CXone for Customer Engagement and X-Sight for Financial Crime and Compliance – into all segments of the market, including large enterprises, where we have witnessed robust demand and strong growth.”
Mr. Eilam continued, “Our strong performance has been supported by our partner ecosystem, which continues to expand globally. We now have 135 engaged partners in our CXone DEVone program. The recently announced X-Sight marketplace is gaining rapid traction with more than 20 partners signing in a very short time frame. Furthermore, earlier this week we announced a significant partnership with Atos, in which its large global presence will help bring CXone to new customers around the globe.”
GAAP Financial Highlights for the Second Quarter Ended June 30:
Revenues: Second quarter 2019 total revenues increased 11.2% to $380.4 million compared to $342.0 million for the second quarter of 2018.
Gross Profit: Second quarter 2019 gross profit and gross margin increased to $249.6 million and 65.6%, respectively, from $223.4 million and 65.3%, respectively, for the second quarter of 2018.
Operating Income: Second quarter 2019 operating income and operating margin increased to $53.5 million and 14.1%, respectively, compared to $46.4 million and 13.6%, respectively, for the second quarter of 2018.
Net Income: Second quarter 2019 net income and net income margin increased to $42.1 million and 11.1%, respectively, compared to $34.2 million and 10.0%, respectively, for the second quarter of 2018.
Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2019 increased 20.4% to $0.65, compared to $0.54 in the second quarter of 2018.
Operating Cash Flow and Cash Balance: Second quarter 2019 operating cash flow was $18.0 million. In the second quarter $4.6 million was used for share repurchases. As of June 30, 2019, total cash and cash equivalents, short term investments and marketable securities were $867.4 million, and total debt was $460.3 million.
Non-GAAP Financial Highlights for the Second Quarter Ended June 30:
Revenues: Second quarter 2019 non-GAAP total revenues increased to $381.4 million, up 10.9% from $343.7 million for the second quarter of 2018.
Gross Profit: Second quarter 2019 non-GAAP gross profit and non-GAAP gross margin increased to $270.5 million and 70.9%, respectively, from $242.3 million and 70.5%, respectively, for the second quarter of 2018.
Operating Income: Second quarter 2019 non-GAAP operating income and non-GAAP operating margin increased to $101.3 million and 26.6%, respectively, from $88.7 million and 25.8%, respectively, for the second quarter of 2018.
Net Income: Second quarter 2019 non-GAAP net income and non-GAAP net income margin increased to $80.9 million and 21.2%, respectively, from $69.3 million and 20.2%, respectively, for the second quarter of 2018.
Fully Diluted Earnings Per Share: Second quarter 2019 non-GAAP fully diluted earnings per share increased 13.6% to $1.25, compared to $1.10 for the second quarter of 2018.
Third Quarter and Full Year 2019 Guidance:
Third Quarter 2019: Third quarter 2019 non-GAAP total revenues are expected to be in a range of $380 million to $390 million (2018 non-GAAP: $358.6 million). Third quarter 2019 non-GAAP fully diluted earnings per share are expected to be in a range of $1.23 to $1.33 (2018 non-GAAP: $1.20).
Full Year 2019: The Company increased full year 2019 non-GAAP total revenues to be in an expected range of $1,563 million to $1,583 million (2018 non-GAAP: $1,453.4 million). The Company increased full year 2019 non-GAAP fully diluted earnings per share to be in an expected range of $5.13 to $5.33 (2018 non-GAAP: $4.75).
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.
