Nice Ltd (NASDAQ:NICE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 08:30 am ET

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Nice Ltd (NASDAQ:NICE) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the NICE conference call discussing Third Quarter 2019 Results, and thank you for holding. [Operator Instructions] Following management's formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded, November 14, 2019.

I would now like to turn this call over to Mr. Marty Cohen VP, Investor Relations at NICE. Please go ahead.

Executive
Marty Cohen

Thank you, operator. With me on the call today are Barak Eilam, Chief Executive Officer; Beth Gaspich, Chief Financial Officer; and Eran Liron, Executive Vice President of Marketing and Corporate Development.

Before we start, I would like to point out that some of the statements made on this call will constitute forward-looking statements, in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Please be advised that the Company's actual results could differ materially from these forward-looking statements. Additional information regarding the factors that could cause -- cause actual results or performance of the Company to differ materially, is contained in the section entitled Risk Factors in Item 3 of the Company's 2018 Annual Report on Form 20-F, as filed with the Securities and Exchange Commission on April 5, 2019.

During today's call, we will present a more detailed discussion of third quarter 2019 results, and the Company's guidance for the full year 2019. Following our comments, there will be an opportunity for questions. Let me remind you that unless otherwise noted on this call, we will be commenting on our adjusted results of operations, which differ in certain respects with Generally Accepted Accounting Principles, as reflected mainly in accounting for acquisition-related revenues and expenses, amortization of intangible assets, and accounting for stock-based compensation. The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release.

And I'll now turn the call over to Barak.

Executive
Barak Eilam

Thank you, Marty, and welcome everyone. I'm glad to be on the call with you today. Earlier in the year, we talked about the opportunity to become the leader, amid exciting and expanding market that are experiencing rapid and accelerating growth. This vision is taking shape, as evidenced by our strong and consistent financial results, recognition from industry analysts, accelerated pace of innovation, and the fast growth of our global partner ecosystems.

Starting with financial results. Q3 was another strong quarter. In Q3, total revenue increased 8% to $387 million, driven by another strong quarter in cloud revenue, which increased 27%. The strong top-line results, led to further increase in profitability.

Operating income was $106 million, which was an increase of 9% compared to Q3 last year, and operating margin increased 40 basis points to 27.4% compared to the same period last year. These strong operating results led to an 8% increase in earnings per share to $1.30. With the current annual cloud revenue run rate higher than $600 million, there is no doubt that we are the largest cloud company, and the clear front runner in a market, that is transforming