Cloud growth boosts NICE's Q3 revenue and profit

Barak Eilam Photo: Eyal Izhar

NICE CEO: Cloud grew a record 35% and now represents 50% of our total revenue.

NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) reported record 35% cloud growth in the third quarter of 2020, enabling the Israeli enterprise software solutions company to top the analysts' forecasts for both revenue and growth.

NICE's share price rose 5.77% on Wall Street yesterday to $246, giving a market cap of $15.6 billion, making it the second most valuable Israeli publicly traded company after Check Point Software Technologies Ltd. (Nasdaq: CHKP), after its share price has risen 59% since the start of 2020.

In the third quarter, NICE Systems reported revenue of $410 million, up 6.1% from the corresponding quarter of 2019. Revenue from cloud activities rose 33.9% to $202 million while sales of products and services fell 32% and 5.2% respectively.

GAAP net profit for the third quarter of 2020 was $50.8 million, compared with $45 million in the corresponding quarter of 2019. Non-GAAP net profit was $93.6 million, up 11% from the corresponding quarter of 2019, and non-GAAP earnings per share was $1.41, $0.02 above the analysts' consensus.

Full-year 2020 Non-GAAP total revenue is expected to be in a range of $1.645 billion and $1.655 billion and full-year 2020 non-GAAP fully diluted earnings per share are expected to be in a range of $5.63 to $5.73.

NICE CEO Barak Eilam said, "We are pleased to report a very strong third quarter driven by continued rapid acceleration in our cloud business. Cloud grew a record 35% and now represents 50% of our total revenue, which is a major milestone for NICE. We achieved 10% sequential growth in the cloud compared to the second quarter of this year, and we already surpassed the more than $800 million cloud revenue run rate that we had originally expected by the end of the year."

He added, "The acceleration in our cloud growth is being driven by several factors, including substantial growth in new customers, rapid adoption by large enterprises, new verticals that are embracing remote service and digital transformation that has become front and center for organizations of all sizes. We witnessed an increase of over 50% in new customers compared to the same quarter last year. Additionally, we saw a 91% sequential increase in digital volumes for CXone, and a 154% increase year-over-year, confirming the strength of our leadership in digital."

Published by Globes, Israel business news - en.globes.co.il - on November 12, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Barak Eilam Photo: Eyal Izhar
Barak Eilam Photo: Eyal Izhar
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