NICE Systems names new CEO, beats analysts on Q2

NICE CEO Scott Russell credit: SAP
NICE CEO Scott Russell credit: SAP

Former SAP CRO Scott Russell will replace Barak Eilam.

NICE Systems Ltd. (Nasdaq: NICE; TASE:NICE) has named Scott Russell, a former senior executive with SAP, as its new CEO. He replaces Barak Eilam who announced that he was stepping down at the end of the year, when NICE published its first quarter financial results three months ago and now the new appointment has been announced as the company publishes its second quarter financial results.

Born in Australia in 1973, Russell has in recent years served in senior positions with SAP including chief revenue officer (CRO). He has been responsible for merger and acquisition deals, strategic planning and corporate governance. In his most recent position, NICE’s announcement says, Russell was responsible for revenue of $31 billion. Prior to SAP, Russell worked for PwC and IBM. Russell will manage NICE from its New Jersey offices, as has outgoing CEO Eilam.

Eilam has managed NICE over the past decade in which he has been highly respected for leading focused processes at the company, which is engaged in customer relations management solutions, and risk management. Since Eilam announced that he was stepping down, NICE’s share price has lost 25% of its value and the share price closed yesterday on Wall Street up 4.2% at $166.78, giving a market cap of $10.583 billion. In premarket trading, the share price is 6.28% higher.

Raising EPS guidance

In the second quarter, NICE reported $664 million revenue and non-GAAP earnings per share of $2.64, higher than the analysts' forecasts of $663 million revenue and earnings per share of $2.58.

NICE left its annual revenue guidance unchanged but raised its earnings per share forecast. The company expects 2024 annual revenue of $2.715-2.735 billion, up 15% from 2023, and non-GAAP earnings per share of $10.60-10.80, compared with the previous forecast of $10.53-10.73 per share.

NICE chairman David Kostman said that Russell's extensive enterprise software experience in adjacent markets and leadership at global scale will be instrumental as he leads NICE through its next phase of growth. He added, "With his personality, energy, and drive, he will take NICE to new heights."

Russell said, " "I am honored to take on the role of CEO at such an exciting time for NICE. We have an incredible opportunity ahead of us as NICE continues to lead the digital and AI transformation and provides a unique platform for growth in the coming years. I am highly impressed by the culture of the company, the innovative product portfolio, and its strong global presence and leadership position. I look forward to working with the talented team at NICE to continue to build on the heritage and success NICE has had over the last decade and lead the company into its next phase of growth."

Eilam added, ' "It has been a privilege and a pleasure to lead NICE over the past 10 years. Alongside our 8,500 dedicated NICErs, we have significantly scaled the company, establishing it as the leader in all its respective markets. Over the past decade, our outstanding leadership team has driven accelerated growth, achieved remarkable profitability, and built a robust recurring revenue stream resulting in tremendous value creation. With such a strong foundation, NICE is well-positioned for a leadership transition, and I am confident it will continue to thrive under Scott’s leadership. I will continue to lead NICE through the end of 2024 and support the transition during the early part of 2025."   

Published by Globes, Israel business news - en.globes.co.il - on August 15, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

NICE CEO Scott Russell credit: SAP
NICE CEO Scott Russell credit: SAP
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