HOBOKEN, N.J. - NICE Ltd. (NASDAQ: NICE) reported a robust fourth quarter, surpassing Wall Street's expectations on both earnings and revenue. The company announced an adjusted EPS of $2.36, beating the analyst estimate of $2.26. Total revenue for the quarter reached $623.2 million, also exceeding the consensus estimate of $616.2 million.
The company's performance in the fourth quarter was marked by a 10% increase in total revenue compared to the same period the previous year. Cloud revenue, a significant component of the total, rose by 20% to $429.0 million. The solid financial results were complemented by a 16% increase in adjusted diluted EPS compared to the fourth quarter of the previous year.
NICE's future outlook also appears promising, with the company providing guidance for the first quarter of 2024 that forecasts an adjusted EPS range of $2.40 to $2.50, which is above the analyst consensus of $2.27. Revenue expectations for Q1 2024 are set at $650 to $660 million, surpassing the consensus estimate of $640.7 million.
For the full year 2024, NICE anticipates an adjusted EPS range of $10.40 to $10.60, compared to the consensus of $9.88, and projects revenues to be between $2.71 and $2.73 billion, which is higher than the consensus of $2.67 billion.
The company's stock responded positively to the news, jumping 6% as investors reacted to the strong earnings and guidance.
Barak Eilam, CEO of NICE, attributed the company's success to the growth of AI as a key driver, stating, "AI has become an overarching catalyst unlocking multiple vectors of growth."
NICE's financial health was further evidenced by a 17% increase in operating cash flow for the full year 2023, totaling a record $561 million. The company also highlighted a substantial 300% growth in the number of AI deals for the full year 2023.
As NICE enters 2024, the company expects to cross $2.7 billion in total revenue, exceed $2 billion in cloud revenue, and significantly increase EPS for the full year.
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