Total annual revenue growth of 15% year over year to $2.7 billion
Record high annual operating margin drives record EPS and 48% year over year growth in cash flow from operations to $833 million

NICE (NASDAQ:NICE) today announced results for the fourth quarter and the full year ended December 31, 2024, as compared to the corresponding periods of the previous year.

Fourth Quarter 2024 Financial Highlights

*GAAP*	*Non-GAAP*
Total revenue was $721.6 million and increased 16%	Total revenue was $721.6 million and increased 16%
Cloud revenue was $533.9 million and increased 24%	Cloud revenue was $533.9 million and increased 24%
Operating income was $154.3 million and increased 26%	Operating income was $227.3 million and increased 22%
Operating margin was 21.4% compared to 19.7% last year	Operating margin was 31.5% compared to 30.0% last year
Diluted EPS was $1.54 and increased 24%	Diluted EPS was $3.02 and increased 28%
Operating cash flow was $249.5 million and increased 38%

Full Year 2024 Financial Highlights

*GAAP*	*Non-GAAP*
Total revenue was $2,735.3 million and increased 15%	Total revenue was $2,735.3 million and increased 15%
Cloud revenue was $1,984.2 million and increased 25%	Cloud revenue was $1,984.2 million and increased 25%
Operating income was $546.0 million and increased 25%	Operating income was $849.6 million and increased 21%
Operating margin was 20.0% compared to 18.3% last year	Operating margin was 31.1% compared to 29.6% last year
Diluted EPS was $6.76 and increased 32%	Diluted EPS was $11.12 and increased 27%
Operating cash flow was $832.6 million and increased 48%

"We're pleased to report a strong finish to 2024 capped off by an exceptional fourth quarter with double digit growth in total revenue, cloud revenue and further acceleration of our industry leading profitability," said Scott Russell, CEO of NICE. "Our full-year 2024 strong top line results were fueled by a 25% year-over-year growth in cloud revenue, which reached $2 billion. Further, our leadership in CX AI was exemplified by the strong adoption of our advanced AI solutions which were included in 97% of our large enterprise CXone Mpower deals over $1 million ARR. Our profitability reached new heights with a 150-basis point increase in our non-GAAP operating margin, climbing to 31.1%. Additionally, our outstanding operating cash flow growth in 2024, which increased 48% year-over-year to $833 million, positions us with a significant competitive advantage to drive future organic and inorganic expansion."

Mr. Russell continued, "AI is revolutionizing the CX industry, and CXone Mpower's agentic AI is unlocking new levels of growth by delivering further efficiency and exceptional customer experiences. I joined NICE for its undisputed leadership and its unique ability to seize this growth opportunity. We will put our industry-leading platforms front and center, we will lead the CX-AI revolution and we will further scale through expansion of our ecosystem. Our decades of deep CX domain expertise, industry-leading AI platform, relentless innovation and great financial strength strongly positions us to capitalize on the opportunities ahead and accelerate into the future."

GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

Revenues:

Fourth quarter 2024 total revenues increased 16% year over year to $721.6 million compared to $623.2 million for the fourth quarter of 2023.

Full year 2024 total revenues increased 15% to $2,735.3 million compared to $2,377.5 million for the full year 2023.

Gross Profit:

Fourth quarter 2024 gross profit was $489.2 million compared to $422.3 million for the fourth quarter of 2023. Fourth quarter 2024 gross margin was 67.8% compared to 67.8% for the fourth quarter of 2023.

Full year 2024 gross profit was $1,825.7 million compared to $1,609.3 million for the full year 2023. Full year 2024 gross margin was 66.7% compared to 67.7% for the full year 2023.

Operating Income:

Fourth quarter 2024 operating income increased 26% to $154.3 million compared to $122.7 million for the fourth quarter of 2023. Fourth quarter 2024 operating margin was 21.4% compared to 19.7% for the fourth quarter of 2023.

Full year 2024 operating income was $546.0 million compared to $435.2 million for the full year 2023. Full year 2024 operating margin was 20.0% compared to 18.3% for the full year 2023.

Net Income:

Fourth quarter 2024 net income increased 22% to $99.5 million compared to $81.7 million for the fourth quarter of 2023. Fourth quarter 2024 net income margin was 13.8% compared to 13.1% for the fourth quarter of 2023.

Full year 2024 net income was $442.6 million compared to $338.3 million for the full year 2023. Full year 2024 net income margin was 16.2% compared to 14.2% for the full year 2023.

Fully Diluted Earnings Per Share:

Fully diluted earnings per share for the fourth quarter of 2024 increased 24% to $1.54 compared to $1.24 in the fourth quarter of 2023.

Fully diluted earnings per share for the full year 2024 increased 32% to $6.76 compared to $5.11 for the full year 2023.

Cash Flow and Cash Balance:

Fourth quarter 2024 operating cash flow was $249.5 million and full year 2024 operating cash flow was $832.6 million.

In the fourth quarter 2024, $95.2 million was used for share repurchases and for the full year 2024, $369.2 million were used for share repurchases.

As of December 31, 2024, total cash and cash equivalents, and short-term investments were $1,621.7 million. Our debt, was $458.8 million, resulting in net cash and investments of $1,162.9 million.

Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

Revenues:

Fourth quarter 2024 non-GAAP total revenues increased 16% to $721.6 million compared to $623.2 million for the fourth quarter of 2023.

Full year 2024 non-GAAP total revenues increased 15% to $2,735.3 million compared to $2,377.5 million for the full year 2023.

Gross Profit:

Fourth quarter 2024 non-GAAP gross profit increased to $515.3 million compared to $448.2 million for the fourth quarter of 2023. Fourth quarter 2024 non-GAAP gross margin was 71.4% compared to 71.9% for the fourth quarter of 2023.

Full year 2024 gross profit was $1,942.7 million compared to $1,708.8 million for the full year 2023. Full year 2024 non-GAAP gross margin was 71.0% compared to 71.9% for the full year 2023.

Operating Income:

Fourth quarter 2024 non-GAAP operating income increased 22% to $227.3 million compared to $186.9 million for the fourth quarter of 2023. Fourth quarter 2024 non-GAAP operating margin was 31.5% compared to 30.0% for the fourth quarter of 2023.

Full year 2024 non-GAAP operating income increased 21% to $849.6 million compared to $703.8 million for the full year 2023. Full year 2024 non-GAAP operating margin was 31.1% compared to 29.6% for the full year 2023.

Net Income:

Fourth quarter 2024 non-GAAP net income increased 26% to $195.8 million compared to $154.9 million for the fourth quarter of 2023. Fourth quarter 2024 non-GAAP net income margin totaled 27.1% compared to 24.9% for the fourth quarter of 2023.

Full year 2024 non-GAAP net income increased 25% to $728.4 million compared to $582.7 million for the full year 2023. Full year 2024 non-GAAP net income margin was 26.6% compared to 24.5% for the full year 2023.

Fully Diluted Earnings Per Share:

Fourth quarter 2024 non-GAAP fully diluted earnings per share increased 28% to $3.02 compared to $2.36 for the fourth quarter of 2023.

Full year 2024 non-GAAP fully diluted earnings per share increased 27% to $11.12 compared to $8.79 for the full year 2023.

First Quarter and Full Year 2025 Guidance:

First-Quarter 2025:

First-quarter 2025 non-GAAP total revenues are expected to be in a range of $693 million to $703 million, representing 6% year over year growth at the midpoint.

First-quarter 2025 non-GAAP fully diluted earnings per share are expected to be in a range of $2.78 to $2.88, representing 10% year over year growth at the midpoint.

Full-Year 2025:

Full-year 2025 non-GAAP total revenues are expected to be in a range of $2,918 million to $2,938 million, representing 7% year over year growth at the midpoint.

Full-year 2025 non-GAAP fully diluted earnings per share are expected to be in a range of $12.13 to $12.33, representing 10% year over year growth at the midpoint.

The above full year 2025 guidance includes the expectation of 12% year over year growth in cloud revenue.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, February 20, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company's website. To access, please register by clicking here: https://www.nice.com/investor-relations/upcoming-event.

Explanation of Non-GAAP measures

Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related and other expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments.

The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

About NICE

With NICE (NASDAQ:NICE), it's never been easier for organizations of all sizes around the globe to create extraordinary customer experiences while meeting key business metrics. Featuring the world's #1 cloud native customer experience platform, CXone, NICE is a worldwide leader in AI-powered self-service and agent-assisted CX software for the contact center – and beyond. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, partner with NICE to transform - and elevate - every customer interaction. www.nice.com

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as "believe", "expect", "seek", "may", "will", "intend", "should", "project", "anticipate", "plan", and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company's management regarding the future of the Company's business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company's revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.

Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company's growth strategy, success and growth of the Company's cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company's dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapidly changing technology, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company's business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, such as the impact of conflicts in the Middle East, that may disrupt our business and the global economy and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the "SEC").

You are encouraged to carefully review the section entitled "Risk Factors" in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

		December 31,		December 31,
		2024		2023
		Unaudited		Audited

	ASSETS

CURRENT ASSETS:
	Cash and cash equivalents	$	481,712	$	511,795
	Short-term investments		1,139,996		896,044
	Trade receivables		643,985		585,154
	Debt hedge option		-		121,922
	Prepaid expenses and other current assets		239,080		197,967

	Total current assets		2,504,773		2,312,882

LONG-TERM ASSETS:
	Property and equipment, net		185,292		174,414
	Deferred tax assets		219,232		178,971
	Other intangible assets, net		231,346		305,501
	Operating lease right-of-use assets		93,083		104,565
	Goodwill		1,849,668		1,821,969
	Prepaid expenses and other long-term assets		212,512		219,332

	Total long-term assets		2,791,133		2,804,752

TOTAL ASSETS		$	5,295,906	$	5,117,634

	LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
	Trade payables	$	110,603	$	66,036
	Deferred revenues and advances from customers		299,367		302,649
	Current maturities of operating leases		12,554		13,747
	Debt		458,791		209,229
	Accrued expenses and other liabilities		593,109		528,660

	Total current liabilities		1,474,424		1,120,321

LONG-TERM LIABILITIES:
	Deferred revenues and advances from customers		66,289		52,458
	Operating leases		92,258		102,909
	Deferred tax liabilities		1,965		8,596
	Debt		-		457,081
	Other long-term liabilities		57,807		21,769

	Total long-term liabilities		218,319		642,813

SHAREHOLDERS' EQUITY
	Nice Ltd's equity		3,589,742		3,341,132
	Non-controlling interests		13,421		13,368

	Total shareholders' equity		3,603,163		3,354,500

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	5,295,906	$	5,117,634


NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)

		Quarter ended					Year to date
		December 31,					December 31,
		2024			2023		2024			2023
		Unaudited			Audited		Unaudited			Audited

Revenue:
	Cloud	$	533,947		$	428,986	$	1,984,160		$	1,581,825
	Services		149,650			162,365		596,031			641,387
	Product		38,003			31,841		155,081			154,296
Total revenue			721,600			623,192		2,735,272			2,377,508

Cost of revenue:
	Cloud		180,110			146,510		699,713			553,654
	Services		47,009			48,674		184,410			188,890
	Product		5,267			5,694		25,401			25,629
Total cost of revenue			232,386			200,878		909,524			768,173

Gross profit			489,214			422,314		1,825,748			1,609,335

Operating expenses:
	Research and development, net		94,753			81,119		360,607			322,708
	Selling and marketing		176,813			154,500		642,251			599,114
	General and administrative		63,336			64,030		276,936			252,286
Total operating expenses			334,902			299,649		1,279,794			1,174,108

Operating income			154,312			122,665		545,954			435,227

Financial expenses (income) and other, net			(16,938	)		2,635		(58,872	)		(22,473	)

Income before tax			171,250			120,030		604,826			457,700
Taxes on income			71,741			38,378		162,238			119,399
Net income		$	99,509		$	81,652	$	442,588		$	338,301


Earnings per share:
	Basic	$	1.56		$	1.29	$	6.97		$	5.32
	Diluted	$	1.54		$	1.24	$	6.76		$	5.11

Weighted average shares outstanding:
	Basic		63,720			63,283		63,483			63,590
	Diluted		64,802			65,749		65,506			66,265


NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands
			Quarter ended						Year to date
			December 31,						December 31,
			2024			2023			2024			2023
			Unaudited			Audited			Unaudited			Audited

Operating Activities

Net income			$	99,509		$	81,652		$	442,588		$	338,301
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization			48,776			41,212			205,020			167,360
	Share-based compensation			48,185			46,170			182,067			176,658
	Amortization of premium and discount and accrued interest on marketable securities			(3,135	)		436			(9,861	)		2,480
	Deferred taxes, net			(1,312	)		(35,833	)		(40,261	)		(66,620	)
	Changes in operating assets and liabilities:
		Trade Receivables, net		(20,993	)		(16,572	)		(61,025	)		(34,292	)
		Prepaid expenses and other current assets		(2,625	)		95,413			25,040			73,052
		Operating lease right-of-use assets		3,025			3,833			12,951			12,518
		Trade payables		39,319			2,642			43,965			3,426
		Accrued expenses and other current liabilities		63,507			(27,012	)		41,952			(55,703	)
		Deferred revenue		(19,138	)		(6,285	)		3,049			(45,947	)
		Realized loss on marketable securities, net		-			12,271			-			12,271
		Operating lease liabilities		(2,767	)		441			(13,291	)		(11,100	)
	Amortization of discount on long-term debt			430			1,166			1,834			4,615
	Loss from extinguishment of debt			-			16			-			53
	Change in fair value of contingent consideration			(3,054	)		(18,258	)		(3,054	)		(18,258	)
	Other			(205	)		(796	)		1,667			2,616
		Net cash provided by operating activities		249,522			180,496			832,641			561,430

Investing Activities

	Purchase of property and equipment			(7,567	)		(6,079	)		(34,962	)		(29,205	)
	Purchase of Investments			(362,822	)		(29,620	)		(938,154	)		(230,263	)
	Proceeds from Investments			77,086			129,006			705,332			436,044
	Capitalization of internal use software costs			(16,819	)		(13,868	)		(64,805	)		(54,974	)
	Payments for business acquisitions, net of cash acquired			(20,309	)		(396,780	)		(64,816	)		(415,185	)
		Net cash provided used in investing activities		(330,431	)		(317,341	)		(397,405	)		(293,583	)

Financing Activities

	Proceeds from issuance of shares upon exercise of options			723			803			3,063			2,570
	Purchase of treasury shares			(95,156	)		(69,026	)		(369,196	)		(288,443	)
	Dividends paid to noncontrolling interest			(355	)		(291	)		(3,036	)		(1,771	)
	Repayment of debt			-			(1,071	)		(87,435	)		(2,628	)
		Net cash used in financing activities		(94,788	)		(69,585	)		(456,604	)		(290,272	)

Effect of exchange rates on cash and cash equivalents				(8,174	)		3,754			(6,914	)		2,643

Net change in cash, cash equivalents and restricted cash				(183,871	)		(202,676	)		(28,282	)		(19,782	)
Cash, cash equivalents and restricted cash, beginning of period			$	668,903		$	715,990		$	513,314		$	533,096

Cash, cash equivalents and restricted cash, end of period			$	485,032		$	513,314		$	485,032		$	513,314

Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
	Cash and cash equivalents	$	481,712	$	511,795	$	481,712	$	511,795
	Restricted cash included in other current assets	$	3,320	$	1,519	$	3,320	$	1,519
	Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	485,032	$	513,314	$	485,032	$	513,314


NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)

	Quarter ended						Year to date
	December 31,						December 31,
	2024			2023			2024			2023
GAAP revenues	$	721,600		$	623,192		$	2,735,272		$	2,377,508
Non-GAAP revenues	$	721,600		$	623,192		$	2,735,272		$	2,377,508


GAAP cost of revenue	$	232,386		$	200,878		$	909,524		$	768,173
Amortization of acquired intangible assets on cost of cloud		(19,592	)		(17,935	)		(93,370	)		(75,667	)
Amortization of acquired intangible assets on cost of product		-			(255	)		(410	)		(1,021	)
Cost of cloud revenue adjustment (1,2)		(3,520	)		(4,605	)		(12,549	)		(10,965	)
Cost of services revenue adjustment (1)		(2,966	)		(3,142	)		(10,472	)		(11,906	)
Cost of product revenue adjustment (1)		(18	)		15			(108	)		121
Non-GAAP cost of revenue	$	206,290		$	174,956		$	792,615		$	668,735


GAAP gross profit	$	489,214		$	422,314		$	1,825,748		$	1,609,335
Gross profit adjustments		26,096			25,922			116,909			99,438
Non-GAAP gross profit	$	515,310		$	448,236		$	1,942,657		$	1,708,773


GAAP operating expenses	$	334,902		$	299,649		$	1,279,794		$	1,174,108
Research and development (1,2)		(6,461	)		(6,997	)		(28,822	)		(31,402	)
Sales and marketing (1,2)		(15,565	)		(11,515	)		(57,891	)		(48,048	)
General and administrative (1,2)		(21,628	)		(34,588	)		(81,042	)		(92,291	)
Amortization of acquired intangible assets		(6,263	)		(3,506	)		(22,087	)		(15,757	)
Valuation adjustment on acquired deferred commission		-			22			24			128
Change in fair value of contingent consideration		3,054			18,258			3,054			18,258
Non-GAAP operating expenses	$	288,039		$	261,323		$	1,093,030		$	1,004,996


GAAP financial and other income, net	$	(16,938	)	$	2,635		$	(58,872	)	$	(22,473	)
Amortization of discount and loss of extinguishment on debt		(430	)		(1,182	)		(1,834	)		(4,668	)
Realized loss on marketable securities, net		-			(12,271	)		-			(12,271	)
Change in fair value of contingent consideration		-			-			(115	)		(817	)
Non-GAAP financial and other income, net		(17,368	)		(10,818	)		(60,821	)		(40,229	)


GAAP taxes on income	$	71,741		$	38,378		$	162,238		$	119,399
Tax adjustments re non-GAAP adjustments		(22,878	)		4,464			19,787			41,937
Non-GAAP taxes on income	$	48,863		$	42,842		$	182,025		$	161,336


GAAP net income	$	99,509		$	81,652		$	442,588		$	338,301
Amortization of acquired intangible assets		25,855			21,696			115,867			92,445
Valuation adjustment on acquired deferred commission		-			(22	)		(24	)		(128	)
Share-based compensation (1)		49,720			47,298			187,717			180,504
Acquisition related expenses (2)		438			13,534			3,167			13,987
Amortization of discount and loss of extinguishment on debt		430			1,182			1,834			4,668
Realized loss on marketable securities, net		-			12,271			-			12,271
Change in fair value of contingent consideration		(3,054	)		(18,258	)		(2,939	)		(17,441	)
Tax adjustments re non-GAAP adjustments		22,878			(4,464	)		(19,787	)		(41,937	)
Non-GAAP net income	$	195,776		$	154,889		$	728,423		$	582,670


GAAP diluted earnings per share	$	1.54		$	1.24		$	6.76		$	5.11

Non-GAAP diluted earnings per share	$	3.02		$	2.36		$	11.12		$	8.79

Shares used in computing GAAP diluted earnings per share		64,802			65,749			65,506			66,265

Shares used in computing non-GAAP diluted earnings per share		64,802			65,749			65,506			66,265


NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands


(1)	Share-based Compensation
		Quarter ended					Year to date
		December 31,					December 31,
		2024		2023			2024		2023

	Cost of cloud revenue	$	3,520	$	4,605		$	12,487	$	10,965
	Cost of services revenue		2,966		3,142			10,472		11,906
	Cost of product revenue		18		(15	)		108		(121	)
	Research and development		6,461		6,997			28,492		31,402
	Sales and marketing		15,554		11,515			57,230		48,023
	General and administrative		21,201		21,054			78,928		78,329
		$	49,720	$	47,298		$	187,717	$	180,504



(2)	Acquisition related expenses
		Quarter ended					Year to date
		December 31,					December 31,
		2024		2023			2024		2023

	Cost of cloud revenue	$	-	$	-		$	62	$	-
	Research and development		-		-			330		-
	Sales and marketing		11		-			661		25
	General and administrative		427		13,534			2,114		13,962
		$	438	$	13,534		$	3,167	$	13,987


NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
U.S. dollars in thousands


		Quarter ended						Year to date
		December 31,						December 31,
		2024			2023			2024			2023
		Unaudited			Audited			Unaudited			Audited

GAAP net income		$	99,509		$	81,652		$	442,588		$	338,301
Non-GAAP adjustments:
	Depreciation and amortization		48,776			41,212			205,020			167,360
	Share-based Compensation		48,185			46,170			182,067			176,658
	Financial and other expense/ (income), net		(16,938	)		2,635			(58,872	)		(22,473	)
	Acquisition related expenses		438			13,534			3,167			13,987
	Change in fair value of contingent consideration		(3,054	)		(18,258	)		(3,054	)		(18,258	)
	Valuation adjustment on acquired deferred commission		-			(22	)		(24	)		(128	)
	Taxes on income		71,741			38,378			162,238			119,399
Non-GAAP EBITDA		$	248,657		$	205,301		$	933,130		$	774,846


NICE LTD. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
U.S. dollars in thousands


		Quarter ended						Year to date
		December 31,						December 31,
		2024			2023			2024			2023
		Unaudited			Audited			Unaudited			Audited
Free cash flow (a)
Net cash provided by operating activities		$	249,522		$	180,496		$	832,641		$	561,430

	Purchase of property and equipment		(7,567	)		(6,079	)		(34,962	)		(29,205	)
	Capitalization of internal use software costs		(16,819	)		(13,868	)		(64,805	)		(54,974	)

Free Cash Flow		$	225,136		$	160,549		$	732,874		$	477,251

(a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.

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Investor Relations Contact

Marty Cohen, +1 551 256 5354, ir@nice.com, ET

Omri Arens, +972 3 763-0127, ir@nice.com, CET

Corporate Media Contact

Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET

NICE Reports 25% Year-Over-Year Cloud Revenue Growth for the Full-Year 2024