NICE - Earnings call transcript Q2 2022

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Operator

Greetings and welcome to the Nice Conference Call Discussing Second Quarter 2022 Results. And thank you all for holding. All participants are at present in a listen-only mode.

Following management's formal presentation, instructions will be given for the question-and-answer session.

As a reminder, this conference is being recorded today, August 18, 2022. to call like to now would turn over this Mr. I at VP of Cohen, Nice. Investor Marty Relations Please go ahead.

Marty Cohen

Beth Officer. Thank call Eilam, and today operator. are Chief you, With Barak Chief me Executive on the Gaspich, Financial Officer,

actual of that Before we to with could forward-looking statements. made Act like results Securities start, the constitute XXXX. the safe this will be in of of the the Litigation from that call Private materially point on statements these statements out I'd company's some advised accordance harbor Please differ provisions Reform forward-looking

Form results the performance materially Securities the Additional that section Item annual information regarding Commission XX-F factors Exchange in and on the contained the could entitled April differ as cause to filed of X, actual Factors XXXX. in XXXX X or with company Risk on the of company's is report

a will for company's discussion call, XXXX. quarter present second today's second the the more During and XXXX guidance quarter detailed year results full we of and

will for comments, our questions. an there Following be opportunity

that, Let The operations, intangible accounting turn me accounting assets with commenting and and results expenses, reflected Accounting in amortization noted it as adjusted on revenues of the for difference stock-based on over acquisition-related Barak. non-GAAP equivalent figures certain our I'll and press are you And will today's release. compensation. GAAP of otherwise call, Principles we between this differ from Generally to the be in mainly respects Accepted that, for results which remind adjusted detailed unless in

Barak Eilam

everyone. welcome, And Marty. you, Thank

outstanding to NICE. We another report at performance pleased are quarterly

in revenue lines, deliver the unique bottom and top proof ability double-digit growth. scarce to growth tech unquestionably profitability of continued on further steadfast Our the is our and both industry consistent is which

cloud quarter revenue, mid-teens a reported we in in For ARR consecutive billion. Cloud year-over-year increase QX, of million and QX $X.X growth. revenue the with sixth exit XX% over representing a increased of total XX% $XXX

tide cloud to in strength continues the QX, revenues which solid winning reflect rock both growth further the in and income, as XX%. sizable year-over-year a the turned seize when fuel results a our us will operating were greater the with cloud current industry, increased balance our continue continual margins. is increased The in our market, year-over-year fact margins, creating industry, XX to operating The further position, of Furthermore, to opportunities cash results growth has capital net to Moreover, QX. win is to our reported and additional that cloud our best-in-class growth that business which for as expand than which half drove and in points scale our basis is profitability, the XX.X%, our a growth in at led it give which and unequaled sheet for tailwind size. strength to is gross increased points growth leadership. extend the we environment. our our our Nice was accretive expect Our as strong current basis we our in to $X.XX are the In to that operating XX% well to which EPS, operating XX%, rose we XXX

preferring to platforms. eager organizations financially cloud are broad with stepping are away less offer and to adopt that companies First, solutions point vendors that to much are large unstable, from go

even allow Second, to to them costs, enterprises increasing so labor. investments overcome the are shifting that more shortage but tackle further labor of into technologies

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market. legacy digital sold as a incumbents. have being we for journeys forward-looking we and to few The the process, point cloud of and perfectly point customer wave In the digitalization, new that our enterprise their CXone in cloud and cloud at age enterprises is deployment, winning with the breadth and platformization, the large cross large is replaced solutions, the the sell land high enterprise its the the to core aligned entire very base. by opportunity seven-digit of deal an moving are complexity selected transform CXone have are a their at play Cloudification Nice's faster, in biggest platformization a at force creating ecosystem. to gives CXone platform from growth QX CXone and of a native to customer solutions long convergence DNA scale, largest market. enterprise a unmatched further new as the of the illuminate Nice of our ability unmatched great at large is has demonstrating to to adopted multiple global A disjointed are cloudification, Nice's continue is large with unique analytics information. the approach company, seen of attract complete Nice can This preventing customer result is age within existing enterprises the us the tight scale. platform deal significant that of ACV execution customer new market we've platform most wanting from uplift vendors of was the forward. of our runway entering solutions depth. them platform customer and managing other It strategy CXone realization and in at upsell awakening scale. choice provide the Our base. due strongest will end example large cusp that enterprise beachheads actually and is transformational company. deliver energy number

and for requirements of X.X is prerequisite of in a address framework, and Nice These us to platformization, the CXi number in a solutions in large gen a of XX% needs go opening enterprise – year-over-year. the cloud of the and enterprises, the the filled increase to XX% void QX, company. in a amount high market scale deals. elements organizations. that are next opportunities the up is In has our enterprises the gen for uniquely historical is cloudification deliver internationally type to digital up evolved increasing speed real entry. revenue, allowing be fact, ability leverages next platform speed digital we time portfolio a first a winning consumer exceed by our approach. digital rapid CXone In speed deals into Digitalization massive large digital next and data, The saw manifested these growth of big opening led requirement digital only This consumer. saw barrier we customers. has for in digital to gen that obsolescence, into to can pushed deliver large advanced exponentially has and to market digitization a our expand AI

a point seven-digit natively and major the future. CXone. had in the help And transaction competitive with feature advanced our me for some of our the of chose deal company. US in retailers deal innovation, ACV of a continued facilitate lack solutions start large sharing with volume, suite the a the transformation and deal is which around clear US the We We providers. full our to eight-digit failed US enterprise to deal our further solution of a platform a with Nice the to with especially solutions. all insurance which implementation, issues by largest and, QX. to Let uncommon a was of one higher cloud. among extend large had which a We not move therefore, of CCaaS with market commitment scale, advanced Due an companies one Nice the signed of integration customer very seven-digit establishing all wins there cloud for the while and signed strategic the the to in vendor, ongoing to seven-digit functionality. needed integrated selected as The bank, with They to healthcare with is capabilities, largest taking the signed digital deliver displacement cloud partner to experiencing in a

digital is to based needed entertainment UK full offerings underserved in included for force and market XX% deals a a is superior Since customer Large a with and in still digital. that found the international strong leading international digital, deal company. with far cloud customer they expansion a our are Our others. capabilities of the seven-digit cloud interactions platform

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digital are our In gen of digital multi-vendor conversational reflecting QX, and the deals continued next the solutions in CXi a the silos capabilities. which essence environments. framework. CXone we sign of our single to gen all merges Our platform, interactions Only to existing many success breaking industry-leading AI is down next

deal replacement BPO. well-known signed For seven-digit example, a a with we competitive

a deploy in large which growing deal more seven-digit We tier digital from help are Azure and making distribution CXi we this cable IP its status, expand driving which from fast to transformation Nice our facilitate and milestone Co-sell Yesterday, auto top person to they legacy next investment and to deal partnership and seven-digit those a with online. This rapid company, to manage partner Microsoft solutions thinking releasing give shifts CXone seven-digit announced with us and standardizing strategic another significant CXone is dealer a cloud have the growth with and in it to on behind ecosystem. their capabilities was CXone. We to digital global a the power partnerships of industry. Microsoft cloud full full seasonal come large provider in now on to signed Furthermore, elasticity with addition provide available In customers Similar add for choice. transformation. These moment closing, seamlessly single ACV to framework. ACV our deal its CXone auto of we our demand, behind off the to of better distribution a public help digital natively extended In platform moving flexibility pivotal scalability dealers puts large to Azure. a gen is in wanted to a CXone a facilitate signed for on a

with ability grow of profitability, Software deliver solutions, true to have strong have profiles, number with need to platform of an shrinking solution leaders viable a industry cloud providers. financial the a suite native a full and amid

now cutting turn and that to again and will want our which we As financial are market our solid edge measured leader by leading proven enterprises the domain profile, our time partner cloud that we've rock in over our innovation call with. platforms, to Beth. expertise. I

Beth Gaspich

Thank full-year for and financial for third you, to Good provide the of day, I of our everyone. analysis the am XXXX. the business quarter second outlook and performance pleased Barak. and XXXX our results quarter

Our outstanding, bottom end increased quarter second quarter financial and results for XX% revenue fully outperforming on $X.XX. to to million of our EPS both second high guidance increased lines. diluted the year-over-year year-over-year $XXX Total top non-GAAP the and were XX% the

cloud was growth revenue, increased XX% $XX and services Our is a in primarily total the revenue from and increased from QX, of last QX of and represented represented revenue, which total total which XX% total of record to million. represented to $XXX of year-over-year revenue million attributed XX% Product flat revenue, $XXX a revenue XX% up which to million was in revenue year-over-year. growing XX% XX% total year contribution

of to the Our grew breakdown, geographic recurring revenue, XX% revenue of XX% year-over-year. total Americas last region, to QX a in From year. revenue which increased XX% XX% total represented a record compared

cloud our Our US impact mainly revenue Americas business exchange comparisons, is XX% most on tough XX% in were to both growth large grew on-premise of APAC, EMEA markets deals The EMEA represented mix foreign dollar. is decreased total of revenue in cloud of at while which our X% on XX% Therefore, in growth. represented year, making generally predominantly last The APAC some year-over-year or in our that revenue, region, based driven from continues have which in decrease EMEA QX currency to strong this total by accelerate year. revenue, basis. on of revenue international the XX% constant constant our we in or QX XX% attributed year-over-year where the for currency, the revenue. is of signed and little total a

increase QX experienced Moving compared a year. our another Engagement was to our we our breakdown, digital growing in CXone million, that XX% to verticals. customers for which and $XXX business represented revenue conversational main AI growth last efficiencies includes can business in strong help with quarter all of unit total to double-digits. sizes in segments XX% both of revenues, continues Customer Engagement and serve behind engine drive capabilities the Customer all the as in that

Our Revenues our cloud combination of year-over-year, increased into $XXX QX upselling cloud driven continuing a premise comes million, our represented growth install from platforms XX% on well record of from Financial base our and business. over & solutions which revenue quarter. as totaled our to XX% logos add expansive XXX of Crime Compliance, new cloud by in both from our and in a growth existing strong portfolio each as total

to gross the in the per XX.X% QX. $XXX and was increased year-over-year QX points million. to at margin first XX% simultaneously record margin, year-over-year last In the income scale, our a XX% our mark $XXX XX.X% Our share QX, gross by in in a $X.XX, growth Earnings gross to compared our of leading in while XX.X% quarter revenue to margin demonstrating continuous totaled the of increase increased stands profitability drive continued QX The an increase in record cloud industry for out operating million XXX strong operating attributed XX% impressive year. points margin to growth. Gross profit margin last cloud XX% driving The first ability in XXX grew quarterly mainly to compared record for increase increased time to basis crossed XX%. year. quarter basis our the to industry, to cloud in an which of a gross

great this and the our the and day a way of business be to the as from has for mainly competitive the track last proven flow which have contributing both first and very declined exceptional profitability, which year from record differences Cash has We been standard the half run growing revenue in successful, totaled in to due advantage. always to our quarter. of operations to as million well timing year, generated $XXX some we

times market We by our coupled the $X.XXX million end year. in the a the opportunity shares environment, portfolio, QX the for to an half of first of with continue as to $XX share cash at in the X.X of of XXXX, June total use expand the prior access repurchases in $XX of investments amount half first Total almost to strong cash change totaled billion. the million to purchased our and

the conclude instruments, of in remarks $XXX hedge $XXX was resulting debt, of cash net Our net my guidance. million, and nearly investments million. will I with

XXXX, be $XXX we For million. the of the of to third expect total range $XXX in to quarter revenue million

the range in expect share $X.XX. $X.XX diluted earnings to per fully XXXX third a to quarter of be We

XXXX. raising and at XXXX. full-year are the billion midpoint $X.XXX full-year revenue the compared our revenue We in XX% We expect to of billion, now growth guidance to range EPS for to representing $X.XXX be total the

$X.XX, will the the Operator? representing midpoint call compared the We $X.XX to full-year a diluted I in of the now growth share expect to over XX% turn XXXX. questions. be XXXX to full-year operator for to earnings fully range per at

Operator

[Operator Instructions].

from Our first of the Jefferies. Samad Samana question is with line

Samad Samana

Barak, Maybe, first you. for one

demand when Microsoft expansion, go-to-market maybe the Nice should was double distribution what's click understand that difference of a and about partnership, it help you from impact on changed? think makes And much before for the and On to What perspective us just from a doing Microsoft starting how standpoint? for a can we CXone?

Barak Eilam

The it. in with is We years. are with been two parts big making new. the not But quite it's Microsoft Microsoft for this announced some a – We've to relationship yesterday, had change it a for in time. relationship

customer of public all, I the XXX% said, market. as available versus they it even as one to of thing, flexibility us That's And other. allows more allows one which and the before. prefer it to in address Azure, CXone considered is them than some of and flexibility now CXone First the adds cloud the

and recent changing is when and contact framework this the of distribution. what which you but second together in and a match saw The more powerful even think other is acquisition element thing Dynamics which Nuance, this we just come in components, contact announced teams take the last Microsoft is few center, customers of the with the I happens few And to it CXone. months together us partner it's that only work of it. field like center and the as our like a team the a from in started core digital great

highest of it wanted So the officialize there it. now to solutions they was to on have sides, the cooperate an Microsoft partner kind means full from motivation relationship Microsoft at field are to they that It both appetite in together. both take of the the us to and teams tier highest that have. of Co-sell and getting rates will fully sellers that compensated And our on the

Samad Samana

given maybe I just revenue. Beth, in seasonality the guidance. side what on as cloud know And the on cloud of maybe we rest help year? the kind for a full understand revenue, half think company question modeling of follow-up just as of has well. terms you year just similar Can for back about product you're thinking the us

Beth Gaspich

finishing great strong growth We're our up cloud another quarter at we're that in overall XX%. seeing growth with

on great footprint strength look large the being by And of I so, driven momentum, recurring we really business. enterprise, we XX%. call, of and internationally. It's particularly the as cloud more our have revenue today, on expansion We great see new – forward mentioned logos

reflected for the So, in half. terms forward in guidance our that's second looking of

this relates In cloud around year, terms look to we for is to full expected year as cloud, at earlier year. of growth XX% be our it mentioned we the specifically as seasonality, the that

consideration look had our if in front, the pent side we guidance, side, expected that still the the use QX last on-prem and year on demand second in QX. came back last that in to of of extremely product We year. is into product on of in up When growth growth that business of full had you product some XX% back we on There And look our the half year a you taking revenue. year, the XX% clearly was look the and of of into can at lot last kind seasonality. strong half the so, product out you as and at still latter

has those prem of on So subsided to kind pent up the of rates and see expect don't course, the on of we business. the growth demand, side

both applied in ongoing consideration, we've are and QX guidance of growth both with in double-digit factors those taken revenue provided. into So QX the

Operator

is from Our with next of Radke coming question the Citi. line Tyler

Tyler Radke

A questions. curious Barak, some off consolidate what's customers much of couple how in is a the you XX kind on talked of kind of this guess, I guess do on changed start point into of on platforms moving front. I'm number seeing the see Just impact you sizes? about I'll a larger macro solutions. give in from just quarter away I and new the larger us translating this deal days. last sense one,

just you're Secondly, that of approvals the how do terms the guide – the you on levels requiring get seeing about sign the environment any half, tougher? or of deals off, on macro in thinking see are just over And EMEA in what derisking just terms region? in in the quarter for extra you of should second perhaps second

Barak Eilam

we with I XX in monitoring markets CEO the we've our Nice time is for business really and our operate, mission very different the that years, for seen asking. last eight-and-a-half past. question environment. asking really been again of environment, What's and it's I we're beauty you're closely think, Obviously, been are that years, Nice, different it the think in solutions I'm critical. the that all the that characterized – macro The and same

okay of and is of kind note, the to that's kind relatively feel one this why general So the even we of macroenvironment. concern with thing

I Specifically we that said, see, from. now, in We that and potentially see what difference QX, I benefits can actually before. we can as versus a enjoy we see right say certain big do

be or small less there the staying even with staying are a some of with challenging enterprises with as is very R&D debt lot viable our level that investing versus about are in second incumbents thing this from partner kind on serving of standalone to to the much enterprises and and days, that players no big niche more these of think for large more moving as now question the in a is there, debt carrying to And industry I a eager them. focus it a business. partner there either are concern them interest will

can now So help forward. all of those tailwinds moving believe us

our Most at to that which a in net of that think it. thing or other our The lot will be you if unique industry carry Beth great overall about our competitors cash is position, debt cash have very and of debt convertible mentioned, side gap others. repaid give year on at to the us light, point expand further with think opportunities potentially business opening And very if some leadership to of all, our will I the the and a EBITDA. leadership come the and inorganic

Tyler Radke

Follow-up should raising how for year we expense talked flow for help your the cash quarter flow, Obviously, on flow thinking guide, cash on us but year? from the for environment, Any operating lower macro your side? the contemplating the understand just any you side hiring cash perhaps you're expectations? Secondly, about EPS the cash assumption about how collections, impacts year about flow. given think to the full for just you're timing changes full changes Beth just on some you're and

Beth Gaspich

I'll both little and break address pieces them separately. expenses into sort two the bit of a cash that up this then

for as typically generally think continuing do. a us, as it's we On the I front, to We're expense usual. hire business

to in We in platforms. the focused on cloud organization drive our and have sales engine. in of of And continue the to to the half sales the in to are that to the this innovation side R&D course, generally on feed we that areas front looking adding lots continue of at, year new be continue positions the second we're

So, are as usual. that we is hiring, continuing, and

as spend When I in I kind expect generally, can the are timing this you amount differences consistent happened the a quarter. cash quarter. collections expenses, of this look In other we of back the that side, would at there year the of QX, terms ratios say collection generally certainly, for actually if and you that activity us, of half E coming of with R In flow you of – OpEx pretty kind well. are think think our to to quarter the record on significant cash of a in terms from recorded in

that of into course. pulled Some had of last quarter,

And so, differences. there's timing

us, business, on For any kind cash the We we business. term have macro. impact just we look from our know reflecting the generation don't really of longer really from we What is the healthy trends. that overall health of our see

So related CXone, very have quarter centers with any say even the that in we generally timing higher of we And end I the because, of during this kind size had differences and would operating of fact, well. we larger the the predominantly contact in COVID, did weren't change are to that in little at center behavior. actually customer contact as

see strong So continue to change to we year. behavior. haven't this any cash And seen expect in we

Operator

America. coming line of is question next of Our the with from Funk Michael Bank

Michael Funk

in already You've relatively long sales wanted contact it cycle I just addressed the center. be and can back Understand sales demand. for to part. cycle the to go

change So, funnel customers? are earlier on you any behavior from the seeing in

Barak Eilam

business. we actually downs. it's across don't see tourism has that anecdotes not a sudden, very And I each very we that vertical any And saw CX about quarter. but and characteristic nicely as with of appears a remind Also, conduct we that. I muted. verticals, now forget, change Contact COVID, a spike and center one the XX vertical, those tourism can are very, during business different it's COVID – is the one it I'll example demand of dramatic in just and or in many. here ups the hot And say one – in say can't where its one there see own maybe and out that and every they is of is there somewhat of travel No, that travel industry. center customer all always you, were situation have

similar And we've good center keep sales contact are I the before. different the gives we'll seen that believe, I And monitoring what segments, balance. somewhat think So, they cycles. by industry, to

Michael Funk

quarter. quarters expect, on in few for you cost do Just had cloud nice increase margin, of What the profitability you a revenue. next this though,

Just kind thinking inflationary environment, about potential the of points there? pressure any

Beth Gaspich

with tremendous had margin very margin, We've and quarter. expansion cloud some crossing pleased this the XX% our we're in cloud the

close significant expect margin. course, it we're a of the as impact impact Of of footprint, We CFO, our our internationally. on any to I or gross to kind that continuing drag say the eye don't will expand always have cloud keeping inflation. we're

course, to that so, of of business. outside And drive we the make to Americas continue investments

I period. can you continued should to, expect we that the to So we expansion gross that of an a lot of continue see I but add in don't our meaning taken margin expansion, think we've in the that terms think as same time, certainly, shown in extended that over of and improvement cloud level margin expansion, believe we scale, grow margin, over higher

really the margins. it term as in no impact expectation negatively relates that to So there's cloud would us near inflation our

Michael Funk

your expansion. about comment geographic Interesting

you pressure short expand So could see capacity. maybe term I and to add take that on as some we mean, margin geographically

Beth Gaspich

growth Occasionally, I may quarter significant amount variability you is growth. a slight generally, from is consistent see but, get that what you generally from business yes, quarter, to expectation pretty of us is that think our scaling coming install from our to our of the And – higher the base. that'll of continue margins. in reflected existing cloud we're Americas. driving be And in always ARPU terms the

Operator

line next the is coming with from Barclays. Our of Chris question Reimer

Chris Reimer

what give and and color what on Crime product? the product. the in Congratulations regions in Compliance I industries on you solution of What could and opportunities this strong if maybe Financial kind wondering just you about talk for was the that & some see for just results. growth do

Barak Eilam

of Crime year-over-year, Financial which growth terms $XXX in is quarter is crossing far as remember, record the in I just & real revenue, for which Compliance it's a had & We Compliance XX% growth Financial a record growing – phenomenal. back the Crime million of

think speaks things. to a lot it of I a variety

areas. First And – in [indiscernible] the obviously, of it last but which few years, speaks other one disruption space, the more competitor consuming unmatched all, digital. Banks in to the through of others speed. kind industry, it's format much and of all as mentioned the backend banking leadership earlier my in biggest the left mobile kind our that and And compliance means to remarks, we're advanced consuming we I is banking, change few industry the itself, those all of also of in have they're of digital a But the backend about still is in any in money obviously around to that speed, and has laundering, counterintuitive processes and are apps fraud behind. digital the we're processes and very back all nicely. end

there very from time solve technologies new also the same but refresh adopting adapt compliance trust allow at and processes with us a to banks approach to customers, back and digital. of the end the So keep and that is wave – significant the of

rejuvenation. the really, opportunities I after bigger add that now together also the going business. regulations, fraud. we're money they the for fintech-like cloud is companies business. and So to just new, the the different leading are expansion in it that are is see that we're to at fully this the like and schemes make thing beginning up are we kind internationally. And a I you laundering in would we reason mid-market, of in seeing of say, would fintech date see that this all and believe of time, lot on in sure acceleration that of we And And same last that we And

Chris Reimer

you're of do versus terms product, for in how type just positioned competitors? competition this feel you of And

Barak Eilam

also solutions but of complexity that And the how very us positioned more with, the point – quartile, deliver differentiate we're probably that the can looking like all us industry. in end are of a that see serving unique stepping suite, And this are working from anti a domain scale, the solution, And and have the analysts very about at really and understanding in consumers of kind fraud have only someone platform that expertise broad covering of leaders to to away others others. profile banks player that allows vendor, transaction both and the full with both that services. and what's lifecycle we this monitoring, financial risk more the also we partner the system clear in a offer integrators money us and on fourth vendors With that laundering to a market we of offer deep platform adopting versus between only the highest at consumers. – as

Operator

Our Jaluria next line from Markets. the coming is Capital of Rishi question with RBC

Rishi Jaluria

see to in business. Nice continued resilience Two me. for the

matter? – First, slowing reducing churn, they the number you about I what that mentioned we that You center right, be of a with seeing for digital up. specifically thinking on you're levels then or Maybe happening solutions. how that? count? leveraging had contact a agents are even by Is kind lower And agent focus hand of side, seeing continued down where customers the them I Are follow should to wanted have hand in right? any themselves agent start of on have

Barak Eilam

changes around flat. it's so significant that between with and be a It potentially seeing, leap to on consumers, the completely to the meaningful We consumer. different is don't not few different absolute At number center In the same and try same some time, the see in growing customer at spend to in we become actually agents. in season those a way moves the shifts is future in order But and in of demand. technology time, center ahead more increasing. even organization better that the them complicated, grow A, agents and service spike a contact becoming investing work dramatically. have in maybe in is so things are agents the them and experience there industries companies drop more the and expect a we some not catch lead make to more number But – same up as ecosystem much more as to they effective digital better coach complicated are parallel, order or of them agents mastering contact

of are at service can is few we have attended service the that full that will scale service are to year-over-year, solution, whether unattended the deliver And agents investments referring our realize you we of only with in XX% to order very order orchestration a at and rapidly. in advantages not serve and digital from one But separately one growth spiking. versus keeps suite it's platform, And I all that a growing attended digital mentioned consumers, enterprises are in that's full both in space, most among that, looking that greatest in of and AI we and sure an starting We channels. the unattended conversational is revenue work. what in to And the it saw digital, or Nice. digital a other ton I'm that I'm unique doesn't end, the to. understand add to for

Rishi Jaluria

from Has should there maintained? it migrations terms the rest year? about of for in be of kind you're change thinking any cadence of the the cloud? that the accelerated, pace what been on down, has how it we that And premise of the has slowed Has to of seeing customers in

Barak Eilam

was easy market. I well Obviously, their relatively at think journeys. Smaller large of are in where them of now is the segments cusp task their into to of for as different and it's already enterprises it customers, to that. transformation the pace it moving is before. to the the an cloud, are different the same move And kind

So the before. pace what similarly I to it was is, believe,

potentially there's market. tailwind can think that more the in develop I

future move to a significant it complicated. concerns once of large want financial incumbents one for is thought industry have more the customers the hear which But to of there is investment very about realization in and So we a under – when again, have an And importantly, from environment will on-prem largest it they is expediting. with they that cloud, stress to and the the enterprises the already it's partner very, deal many of them deliver become and the provided integration we that came scale and solution point filled at many of at didn't buying who was a there. operate to out out a of gave us that That solutions. provider. to example, they one such scale [ph] examples, and variety versus of point the And already kind CCaaS can won for solution least and a customer provider that moved I the of

Operator

Our of Marshall Stanley. Meta next question is coming from Morgan line with the

Meta Marshall

you're that talking on second the And and more more get process just to just context of the of CCaaS they question, to on would kind the for And deals, they solution. in displacement the weren't about, for kind point found, what vendor jumping then, to what realize going you you just the of guys is business? digital last the adequate timeline leverage context Maybe them there that an of question there just it that displace at kind get did that in efficiencies cloud for in leading the only helpful, leverage? more Is Beth, be just deal. margin gross any finding where just kind of were

Barak Eilam

margin. Beth it then over to start I'll and the gross I'll on hand

failed to at fully this coming I'll proper only the migrate this refer developed as solutions, breadth everything not a third-party the the I'll – fast. delivering it approached vendor So a other of And took it's said others difference implement, provides on digital like the a ability that at it adopting what natively, there they like of is that specialized solution all on to this the customer, be time, very the but with or say started the CCaaS the can with solutions but looking is on of scale clear typical vendor, core exactly customer CXone a solutions, it scale, parties, of say, and versus And relatively is and one integrations. not CCaaS, we RSV, all and us submitted diligence integrated that promises a And like In WAM, an of large a through natively the not just delivered between lot who a big failed enterprise the kind third the I and doing do that there integrations, even particular immediately. long did. something of would more customer the core ours whole, extremely – or in, example. to customer, is are was advanced us, to piloting we slide it what can realization that

result which go talk So will say, time and wave, to I or of gross a to the as large Beth. in customers, of eventually needless see to to market. to believe, be I us About we margin, it winning great a that, point of we're over But I'll from think hand will a lot a will there to that solution order time us on it adopt back also try as CXone, opportunity. that, customers,

Beth Gaspich

types a margin long at talk the we our really I when think, think and of that driving history have do. about gross of cloud we I businesses margin, generally, all expansion Nice, we

each and way it do actually we of a built large As customers our up in to that built platforms the way to that specifically the quarter. the very We've into cloud, all, pertains have it's business. our that that really can is cloud, we we native we're cloud first intentional, scale them every and adding it

starts to actually we with native the it how So solution cloud. build the

are The the all natively platform. that second integrated multiple we I selling solutions have say on been is that into succeeding would

only not platform industry. of best continue and selling adding. we digital, base, back a existing the multiple we're more, depth we have breadth And offering install into we're in So really our constantly the go to but that solutions

enterprise we large margins, needs. very showing as that's And the that to complex expansion, our gives especially where opportunity also great continue current and go have to so, drive into a in us they

highlight would stickiness our I of is factor just Another the solution.

course, of We organization, have revenue. in to etc. is, our cloud, the consume retention that, drives high we've our base stickiness how and recurring excellent add management we that and the thing the install side the very an expense spend of existing I just keeps attentive always we how rates expense that then that been with as think base And would customer that I last

of factors, being able a combination a really of to strong attention really scale drive to it's different operating so, the those all and And leverage.

Operator

with next Securities. question line Pat Our JMP coming the of is Walravens from

Patrick Walravens

how's federal How's publicly the right? quarter going? you're seasonally look? was there about the heading Transportation that federal, talk to of with we're hear Big the to million like it then, thirdly, picture, $XX pipeline Department I'd for I'd for a little there. disclosed. Secondly, what And government business just doing strongest federal the FAA that the love bit. the into deal

Barak Eilam

business. I'll give some federal about business, but deal, customer you SLED, both specific a level, on state color and the the as at commenting the well not as local We're

all, COVID, with great ago, stronger great of was over very going it's reputation base. great obviously, CXone have and great and of tailwind in we First business industries we a those business, years presence and customer saw there. well. that Couple in And

the It's at market well. requires on We a justice you supply its we're full on as it is side. advancing and I criminal this solution mention is which own extremely didn't this chain, if that into pace business, and fast the transformation advancing you'd business know, and through also a have have, in digital but our nicely we safety digital very of probably going public call, similar like

and So, continue to very to perform we there. this bullish are on perform well

Operator

back questions are further Barak There the closing no comments. for time. turn Eilam I at this call to to over now would like any

Barak Eilam

joining us we'll Thank Thank to – with you and for very much you. you you a very shortly. all speak great week. Have

Operator

conclude does This your appreciate today's participation. We teleconference.

day. lines time. of Enjoy this the your at disconnect You may rest your

NICE (NICE) 18 Aug 222022 Q2 Earnings call transcript