NICE Ltd. (NICE) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 10, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the NICE Conference Call discussing Third Quarter 2022 Results, and thank you for you for holding. All participants are present in a listen-only mode. Following management's formal presentation instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded, November 10, 2020.

I would now like to turn this call over to Mr. Marty Cohen, Vice President, Investor Relations at NICE. Please go ahead.

Marty Cohen

Thank you, operator. With me on the call today are Barak Eilam, Chief Executive Officer; and Beth Gaspich, Chief Financial Officer. Before we start, I would like to point out that some of the statements made on this call will constitute forward-looking statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, please be advised that the company's actual results could differ materially from these forward-looking statements.

Additional information regarding the factors that could cause actual results or performance of the company to differ materially is contained in the section entitled Risk Factors in Item 3 of the company's 2021 annual report on Form 20-F as filed with the Securities and Exchange Commission on April 5, 2022. During the call, we will present a more detailed discussion of third quarter 2022 results and the company's guidance for the full-year 2022. Following our comments, there will be an opportunity for questions.

Let me remind you that unless otherwise noted on this call, we will be commenting on our adjusted results of operations, which differ in certain respects from generally accepted accounting principles as reflected mainly in accounting for acquisition-related revenues and expenses, amortization of intangible assets and accounting for stock-based compensation. The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release.

And I'll now turn the call over to Barak.

Barak Eilam

Thank you, Marty. And welcome, everyone. We continue to thrive and are pushing full steam ahead as evidenced by another quarter of double-digit revenue growth. We reported total revenue of $555 million, representing an increase of 12% or 14% in constant currency compared to the same quarter one year ago.

This top line performance was driven by another solid results in cloud revenue, increasing 26% in the quarter and 27% at constant currency. With an exit annual run rate of over $1.3 billion, we are, by far, the largest cloud vendor among our competitors, and we continue to display strong cloud growth at scale. At the same time, our emphasis on profitable growth has not wavered as demonstrated by an increase of 14% in operating income and an increase of 41 basis points in the operating margin, driven by a 330 basis points increase in the cloud gross margin and 14% growth in EPS.