NICE’s (NICE - Free Report) first-quarter 2022 adjusted earnings of $1.80 per share beat the Zacks Consensus Estimate by 5.88% and increased 16.9% year over year.
Non-GAAP revenues of $527.4 million trumped the consensus mark by 3.29% and grew 15.4% year over year.
Revenues in Americas were $426 million, up 14% year over year. Revenues in EMEA were $72 million in the reported quarter, up 29%. APAC revenues increased 7% year over year to $29 million.
Top-Line Details
Cloud revenues (55.9% of revenues) rose 29.2% year over year to $294.6 million. Product revenues (14.4% of revenues) increased 16.4% from the year-ago quarter to $75.9 million.
Service revenues (29.8% of revenues) declined 3% from the year-ago quarter to $157 million.
Customer Engagement revenues increased 14% year over year to $421 million. Financial Crime & Compliance revenues increased 20% year over year to $106 million.
On a non-GAAP basis, gross margin was unchanged at 73% in the reported quarter. Product margin contracted 80 basis points (bps) to 91.6% in the reported quarter. Services margin inched up 20 bps to 72.2%.
Cloud margin expanded 100 bps year over year to 68.6%.
Research & development (R&D) expenses, as a percentage of revenues, increased 150 bps year over year to 14.5%. Sales & marketing (S&M) expenses, as a percentage of revenues, increased 70 bps to 28.9%.
General & administrative (G&A) expenses, as a percentage of revenues, declined 50 bps on a year-over-year basis to 11.2%.
On a non-GAAP basis, operating expenses, as a percentage of revenues, increased 10 bps year over year to 44.8%.
Operating margin expanded 10 bps on a year-over-year basis to 28.3%.
Balance Sheet & Other Details
As of Mar 31, 2022, NICE had cash and cash equivalents (including short-term investments) worth $1.49 billion.
Long-term debt, as of Mar 31, 2022, was $241.1 million.
The company’s cash flow from operations in the first quarter came in at $192.7 million.
Guidance
For second-quarter 2022, NICE projects non-GAAP revenues between $520 million and $530 million. Non-GAAP earnings are estimated in the $1.75-1.85 per share band.
For full-year 2022, non-GAAP revenues are expected between $2.16 billion and $2.18 billion. Non-GAAP earnings are anticipated between $7.25 and $7.45 per share.
Zacks Rank & Key Picks
NICE currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Broadcom (AVGO - Free Report) and Cisco Systems (CSCO - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices shares have outperformed the sector year to date, declining 10.3%.
ADI is set to report second-quarter fiscal 2022 results on May 18.
Broadcom’s shares have outperformed the sector year to date, declining 12.3%.
AVGO is set to report second-quarter fiscal 2022 results on June 2.
Cisco’ shares have outperformed sector year to date, declining 22.1%.
CSCO is set to report third-quarter fiscal 2022 results on May 18.
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NICE’s (NICE - Free Report) first-quarter 2022 adjusted earnings of $1.80 per share beat the Zacks Consensus Estimate by 5.88% and increased 16.9% year over year.
Non-GAAP revenues of $527.4 million trumped the consensus mark by 3.29% and grew 15.4% year over year.
Revenues in Americas were $426 million, up 14% year over year. Revenues in EMEA were $72 million in the reported quarter, up 29%. APAC revenues increased 7% year over year to $29 million.
Top-Line Details
Cloud revenues (55.9% of revenues) rose 29.2% year over year to $294.6 million. Product revenues (14.4% of revenues) increased 16.4% from the year-ago quarter to $75.9 million.
Service revenues (29.8% of revenues) declined 3% from the year-ago quarter to $157 million.
Customer Engagement revenues increased 14% year over year to $421 million. Financial Crime & Compliance revenues increased 20% year over year to $106 million.
On a non-GAAP basis, gross margin was unchanged at 73% in the reported quarter. Product margin contracted 80 basis points (bps) to 91.6% in the reported quarter. Services margin inched up 20 bps to 72.2%.
Cloud margin expanded 100 bps year over year to 68.6%.
Research & development (R&D) expenses, as a percentage of revenues, increased 150 bps year over year to 14.5%. Sales & marketing (S&M) expenses, as a percentage of revenues, increased 70 bps to 28.9%.
General & administrative (G&A) expenses, as a percentage of revenues, declined 50 bps on a year-over-year basis to 11.2%.
On a non-GAAP basis, operating expenses, as a percentage of revenues, increased 10 bps year over year to 44.8%.
Operating margin expanded 10 bps on a year-over-year basis to 28.3%.
Balance Sheet & Other Details
As of Mar 31, 2022, NICE had cash and cash equivalents (including short-term investments) worth $1.49 billion.
Long-term debt, as of Mar 31, 2022, was $241.1 million.
The company’s cash flow from operations in the first quarter came in at $192.7 million.
Guidance
For second-quarter 2022, NICE projects non-GAAP revenues between $520 million and $530 million. Non-GAAP earnings are estimated in the $1.75-1.85 per share band.
For full-year 2022, non-GAAP revenues are expected between $2.16 billion and $2.18 billion. Non-GAAP earnings are anticipated between $7.25 and $7.45 per share.
Zacks Rank & Key Picks
NICE currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices (ADI - Free Report) , Broadcom (AVGO - Free Report) and Cisco Systems (CSCO - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices shares have outperformed the sector year to date, declining 10.3%.
ADI is set to report second-quarter fiscal 2022 results on May 18.
Broadcom’s shares have outperformed the sector year to date, declining 12.3%.
AVGO is set to report second-quarter fiscal 2022 results on June 2.
Cisco’ shares have outperformed sector year to date, declining 22.1%.
CSCO is set to report third-quarter fiscal 2022 results on May 18.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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