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NICE shares fall 7% despite Q1 earnings beat

EditorRachael Rajan
Published 05/16/2024, 06:50 AM
© REUTERS
NICE
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HOBOKEN, N.J. - NICE Ltd. (NASDAQ: NICE) reported a solid start to the year with its first-quarter results, surpassing analyst estimates for adjusted earnings per share (EPS) and revenue. NICE stock fell 7% in premarket trading.

For the quarter ended March 31, 2024, the company posted an adjusted EPS of $2.58, which was $0.13 higher than the analyst consensus of $2.45. Revenue also saw a healthy increase, coming in at $659.3 million against the expected $655.4 million.

The company experienced a 15% increase in total revenue compared to the same quarter last year, with cloud revenue showing a significant 27% rise. This growth was attributed to strong demand for NICE's digital and AI offerings. Additionally, the company reported a 30% year-over-year (YoY) increase in operating cash flow, reaching a record high of $254 million.

Looking ahead, NICE provided guidance for the second quarter of 2024, expecting adjusted EPS to be between $2.53 and $2.63. Revenue guidance for Q2 is projected to be in the range of $657 million to $667 million, with the midpoint falling short of the consensus estimate of $665.8 million.

For the full year 2024, NICE anticipates adjusted EPS to range from $10.53 to $10.73, exceeding the consensus of $10.45. The company's revenue forecast for the year is set between $2.715 billion and $2.735 billion, closely aligning with the analyst consensus of $2.723 billion.

Barak Eilam, CEO of NICE, commented on the results, "Our total revenue growth of 15% was once again driven by excellent execution in the cloud with 27% revenue growth, propelled by demand for our digital and AI offerings." He also highlighted the company's expanding profitability and record operating cash flow as evidence of their positive momentum.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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