"AI has become an overarching catalyst unlocking multiple vectors of growth," says NICE CEO after company beats forecasts
"AI has become an overarching catalyst unlocking multiple vectors of growth," says NICE CEO after company beats forecasts
In the fourth quarter, the Israeli software company recorded 10% growth in revenue to $623 million, along with a profit of $2.36 per share, above market expectations. The cloud activity generated revenues of $429 million
NICE beat market expectations both on the top and bottom line in its financial reports for the fourth quarter of 2023 published on Thursday. The Israeli software company finished the fourth quarter with revenues of $623.2 million, compared to $568.6 million in the corresponding quarter, a growth of 10%.
Analysts were expecting a lower revenue of $616.2 million. NICE's cloud business generated quarterly revenue of $429 million, a 20% upgrade over the corresponding period in 2022.
Fourth quarter 2023 operating income increased 40% to $122.7 million (compared to $87.8 million for the fourth quarter of 2022). Fourth quarter 2023 operating margin was 19.7% compared to 15.4% for the fourth quarter of 2022. Adjusted earnings per share increased by 15% to $2.36, exceeding analysts' expectations of $2.26 per share.
In the summary of 2023, NICE recorded revenues of $2.37 billion, compared to $2.18 billion in the previous year, an increase of 9%. Annual cloud revenues grew by 22% to $1.5 billion.
Annual operating profit climbed to $435.2 million, compared to $335.2 million in 2022. The operating profit rate jumped to 18.3% compared to 15.4% in 2022.
As part of the reports, NICE published a revenue forecast of $2.71-2.73 billion in 2024, alongside an adjusted profit of $10.40-10.60 per share.
NICE CEO Barak Eilam said as part of the publication of the reports: "As we enter 2024 following the outstanding success of last year it is now clear that AI has become an overarching catalyst unlocking multiple vectors of growth. Our leading-edge AI bolstered by our unique data assets is increasing NICE’s cloud win rates across the board, it is the bedrock of our rapid expansion into digital engagement, it is the convergence power igniting the adoption of our platform and it is a source for a growing number of brand-new AI-based solutions with incremental revenue streams."
