NICE (NICE) 12 Nov 202020 Q3 Earnings call transcript

Welcome to the NICE Conference Call discussing Third Quarter 2020 Results, and thank you all for holding. All participants are 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 November 12, 2020. I would now like to turn this call over to Mr. Relations Investor VP, Cohen, at NICE. Marty ahead. go Please

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

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

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

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

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

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

welcome, Thank you, Marty, everyone. and

record now XX% revenue, a driven cloud for Cloud acceleration major our total to pleased business. and which by strong report represents a continued grew milestone are a rapid our is NICE. QX, We very of group in XX%

run XX to was an with QX XX% This compared year. cloud, $XXX the an compared and points surpassed of basis that solid income increase overall QX, $X.XX. share year. X% Operating million. growth $XXX total end the increased to quarter million, per increasing These rate of sequential we revenue we strong results in was $XXX than compared earnings reported increase XX%, underscore cloud to already XXXX, XX.X%, to million expected had the led QX revenue the margin cloud to to also by We X% the to more and in operating which strong last performance operating

to verticals the and digital period can transformation Additionally, more continued from that all acceleration continue deliver and same sign clear in last as has Enterprises operating market-leading new last same than increased our service by large their in demand being the as number cloud for in adoption are including also now CXone success these the seen platform. our around driven solutions The from cash ever market in world rapid the by customers of customers growth reselling is in cloud by an being adoption transformations. center is the by driven QX customers of factors, our flow quarter. that growth and million every compared we are alone, all each ecosystem for quarter logos, XX% logos the year. Many penetration QX, new into we're further an growing being is cloud as in are market by new solutions, customers, In The of to by strong of rapid It enterprises, embracing to the The cloud and saw new international our be partners to remote new the several substantial that cloud with our become of coming increase new large cloud driven front of XX% organizations we of sizes. new $XX help over to around having cloud digital. markets. well digital and acceleration adoption CXone the them platform recognize year. compared segments on

the CXone result over many customers conversion XX% new subscription. addition, of In to rate an were a of paid CXone@home

industry, scale to XXX helping CXone. on-premise only optimization workforce in enterprises growth. our to-date drive XXX we QX the incorporates is solutions for is and providers. of mega faster capture Much largest it deal ACV advantage large enterprises. in the significant The as are can continued single marketplace, two analytics, signed building the competitor, on This to independent displace to we exchange on of in next accelerate the one industry. CXone the software routing, providers. the Furthermore, because size double boast omnichannel ability all fast over the incumbent of demonstrate the outperformance Many market, with vendors define seven-digit our the integration ecosystem are market, share CXone partners largest our as and upper-end the CXone, operators we to our over CCaaS our a in We the the enterprise the our the growth we on-premise that CXone largest deals incumbent of platform. a agents, hospitality competitive large is the We to of of of of largest for continue is and with continues of replacing in provider the world, reporting our which effectively large result platform enterprise. both and seamless with

solutions. many back signed deals come add for of suite also to CXone, as customers expansion to additional We continue

to with signed was large cloud with took There We for largest outsourcer, banks, with expansion was seats. large cloud the signed services deals and a auto longstanding deal cloud our deal, One also seven-digit with a large expansion seven-digit financial longstanding with credit additional existing deal two global company. also very an a business ACV expansion very seven-digit telco on analytics a of those one We of of customer process a solutions. add a all customer customers. several analytics who a

industry from received has also recognition in the analysts. strength Our large enterprise

XXXX NICE Quadrant achieved year position as execute since its and report. placed as Service to overall The once highest its Contact inception. we’re ability the again Gartner the fact, Center Quadrant for Magic In a every Leader been a leader in for has named Magic

addition, the Center market, receiving categories. the and Contact CXone identified Service category highest top as CXone in the the score report Market The the recent Presence ranking with Wave Offering in Strategy securing In as Leader possible Forrester in and Current a

and new leadership Among the Our by and are technology resulting driven embracing are and our verticals customer CXone. government FedRAMP importance we both vertical, cloud those and the which In authorization remote is augmented the increased the in need are agility that also being service of see the federal and by operations. growing for the growth in rapidly, strength government in companies, service. their local new breed flexibility recognizing for continued verticals

a ACV agents, providers, seven-digit agility to scale we with could large signed CXone on-premise analytic our of the scale technology, It a For new the to QX, very level was up with as with also seven-digit business thousands took as and different In health learning AI leverages provider. platform. deal two deal to not outcomes. model to worldwide behavioral many respond also solutions, for weeks cloud for a predict ENLIGHTEN organization. a enormous with was cutting to of replaced. portfolio for and for in need a down their streaming existing government demand, we we them quickly identify and CXone help needed ENLIGHTEN large including they edge example, the which a deal platform. seven-digit which There varying There cloud rapidly AI turn of sign and up only deal sharing flexibility patterns machine to economy provider music signed and this a demonstrates

inefficient, are are is that for differentiated and solutions in there operate channels unproductive, inflexible digital no past in integrated. It separate words, CXone transformations. seamlessly While to This single the all an of omni same experience a silos. seeing where the of XX the which digital mistakes those In is doubt together is in the transformation other demand over in enterprises a seamlessly don't that is as demand among different midst we're integrated strong channels. they digital with Rather, sizes, platform enterprises all by in costly. stitching want we make clearly usually digital

For competitive at market core in a are digital the business. dynamics as native NICE, capture solutions these to by provided opportunities our position changing of the prime we are

revenue this just increase process our XXX% we a quarter, witnessed In including reaches XX% and impact an year-over-year. a The company digital outsourcer. And data potential sequential digital and in transformation CXone increasing a Compliance, Safety. monetization capabilities for as banking businesses, in Crime fact, we Financial volumes all a presents business our Financial for past saw and In digital In transformations. in new segment us XX% service, Public of starting online tremendous Compliance of commercial are of and increase growth included driving management QX. including XXX% QX, digital, increase see in across to Crime in cloud we're water the a opportunities. counseling deals the X-Sight CXone Digital and fact, this Xceed and cloud

customers banks QX, Moreover, leveraging XX also onboard Public of customers to innovations Marketplace. and industry's Financial materially additional as for DataIQ external third-party enable We're place. first becoming The transformations their processing by all digital industry landed time ecosystem X-Sight from Safety. these digital in facilitating to data an felt improve with to is and new partners, data one deals Marketplace advance marketplace Crime need applications, can and the cloud access Together, sources for pressured example, therefore sources. X-sight multiple all the to those the For reduce we with and is partners. to X-Sight dramatically Compliance date hub banks the to transformation in in

process. open, Evidencentral the and launch gain markets greatly we Investigate access in Marketplace is Through which recently, Interactions justice of NICE we firsthand agencies. wide engaged vendors, record a the great segments. billion September Financial market that expand. the Customer of to our It recent digital at enforcement very evidence for are to towards the first technology total value enhance breed flexibility Engagement Evidencentral NICE mainstream, We NICE agencies capture beginning our facilitate enterprises and at criminal and the and all Marketplace. Inform The sizes competitive organizations customers user and become Evidencentral our and marketing for justice end-to-end this management evolution NICE to billion and both geared to user our law only are Marketplace, and technology we all Beth. in solutions. of closing, for Engage the will transformations. current in ecosystem law for to continues digital was prime will are we The about ahead. heavily Compliance, their digital transformations. enforcement of provide customers $X.X witnessed now in over to platform, position to agility includes expanding which We extreme Crime In that Just the cloud to to of our huge transformation are over It a critical showcase in platform is of to investigation digital see and call these In announced opportunity of of criminal conferences October $XX the we to best the is and solutions, next addressable conferences. beginning this in help Moreover, years. the and operate, had opportunities our opportunity five attendance. I as cloud our the over believe market each for NICE turn a market variety

already growth by of to cloud than X% was financial provide to accelerated compared last XX%, by million The run XXXX reached more rate Thank $XXX cloud that results year record pleased $XXX second of led and and in for the $XXX of third the exceeding quarter you, day, X% XXXX, sequential of our period for third Barak, our revenue good year. million the well a revenue annual last million, again quarter once expected our the year-end. outlook and revenue as analysis from business I'm performance with million an cloud as to XXXX. remarkable performance growth and of full the quarter Total for $XXX of increase same the was third reaching XX%, the Total everyone. growth year. between

last NICE year. milestone XX% cloud to revenue reaching Another for XX% total was of revenue compared

for XX% of As X% service year. compared total in revenue cloud strong recurring a for continued accounted of accounted third to to revenues of and in accounted the XX% of quarter, third revenue XX% growth, remaining the quarter. revenue result for revenue, total the last and revenues Product increase total the

total in XX% our XXXX, the over $XX to Compliance revenues. for Customer Moving increase of Financial revenues quarter million, revenues X% were breakdown. a of quarter revenues. the of quarter and total an business $XXX and XX% Engagement Crime represented third our for same represented X% the million, third were increase and

Looking to and compared the third quarter. in compared XX% at $XX geographies, $XX million to EMEA $XX the APAC last the $XX same were quarter year, the in million in last in Americas Revenues $XXX million third revenues grew million million year. quarter were period in to revenues third

of the income share in demonstrated year. XX.X% margin our increased gross third for quarter XX.X% point gross our cloud to year. $X.XX flow third profit and the in expanding the Cash third cash Earnings XX.X% $XXX continue to to by leverage at continued last margin X.X% XXXX was Gross increased of operating $X.XXX The from and expansion to quarter and compared to end million, reached We same in reached $XX Operating $XX XXXX. last the quarter margins. see in to from of operating last in and model, strong quarter the the billion. in million year. million, reached in business $XXX XX% third profitability to QX an to investments grew and quarter $X.XX, compared operations compared compared million, year. as our the the a in Total of per cloud the quarter third XX% XXX million $XXX reached increase similar last quarter increased acceleration the to XX.X% to XX% margin led basis in

We've another the At the total conclude my continue. of quarter, note During net in our rate cloud guidance. business with strong expect growth expect XXXX. we $XXX equity the in of we the convertible to milestone, million. this and And we XXXX, a to as And billion cloud zero-interest I on $XXX cost growth an debt issuance revenue. strong was throughout component during this end rate quarter, cloud annualized experienced debt. million, significant cross associated for we look of of year, the our run issued convertible remarks will with remainder $X

to the expect trend see greater of also percentage representing compared overall continued the as prior We mix of our year. a the revenue at cloud to

million to expect revenue be year full range $X,XXX to we the For million. the XXXX, total $X,XXX in of

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

line your first And instructions]. [Operator the Eyal Shaul from question Oppenheimer. comes from of

that? the much definitely suggest that prior have remarks? CXone verticals you’ve significant on And sales quarters solid the the another kind prepared on of you it pretty is numbers follow-up. And over Barak, a Thank the guidance. does want that of in Can from drivers. seeing require cycle and of your longer within because way the I set seeing to you. acceleration quarters or capturing you’ve few Congrats some then also Hi, trends I had the actually everybody. results been larger a I and start of same the wins know enterprises. with are course NICE past some mentioned you elaborate the I of mentioned think we

are They is, acceleration are the Thanks. some CXone Shaul. related to realization. the adoption indeed adoption. both one Yes, the directly enterprises it's reasons as variety as in the but the verticals. simple that to relatively of customer of cloud. not say their as move they has we great two are adoption so, some the of new new accelerated them COVID of that the they there went realization to in I've is reasons well through. a increase see would large just point service, all of mentioned, new that of And got and the and COVID, adoption. for time accelerate It's large to experience not to I enterprises come And getting main that to that first

one platform believe to to this segment thing cater large on-premise that scalability enterprises. on really has provider second small, completeness they start either cloud the the didn't and the their they realize on-premise they're very, a market. we solution. very cycle. really innovation they another migrated and on-premise provide they've the on-premise move only to unlike those if you’d innovation, CXone stay their We're their is long capabilities is like, is migrating the solution, those semi-hosted that provider stuck that the both they it solutions the has to The what experiencing from a is some in even when thing fast, that of is with are even the as It's on them that. by past solve experienced solution or features other And required that those as of native that,

time, beginning, So, long adoption, is the a of I runway at and here. that we’re remarks, and same is even over believe just current my the end as that accelerating. that there the opening with At said we at the accelerating is

Thank for of the pretty Barak of those discussed Got it. all answer. Got that life. back kind also question a that, to kind Safety, you’ve you’re it. Public elaborated much capabilities bringing that you on

You Day. mentioned Analyst in your that

a shed you provide respect, months, was you can bit quarter, with light an recent with share can anything little more So, on even of update? again, in us activity? that How the us, recent that

Safety. what happy the see Yes. Public the progress we in with We're very

different going is or our this product that in into the -- we expanding A, base, our brought and broaden we And in in past solution justice market. it's this transformation, safety As of -- and to specifically due years for focused is XX very we actually theme. where market the year of a niche wider also are course all -- from very a similar footprint market but rest We've in the our to with market well. reminder of digital the used prosecution seen aspects this a one -- large significantly plus, defense, through what's days in way the or eyes this have public other the are mainly from are we technologies policing these it for happening the and -- organization on we market solution to system, for can we call, but criminal policing and overall opened of to NICE that Investigate very markets, customer forum we the offer offering operating on court, as expand that, for a

we're solution, both in for We to see in go So, in significant. even to and think way, something Europe the U.S. extent this that by progress. Asia. certain moment, is happy great we but it can certain the relatively mid-sized And is something the a become with traction places very the and at in very there

next from the Wedbush. on Daniel from line Ives Your comes the question of line

Can in about strength on Thanks. seeing? talk question just given My of is terms your there acquisitions. appetite you the specifically cloud, you're

Yes.

with acquisition, done some integrating, as acquiring acquisition. just on about relevant but that company, be active we the be about playbook execution acquisition of and the to our that need I We not the strategy. not But shy key on the same we in components track our in from At we acquisition. very to have course, all at have continue order thing augmenting this on execute we a obviously which to point, believe time, have will believe the for is record, we we good well we have, front. a that also

now where monitor area. to definitely do very something, a acquisition, months have we'll capital and was from need remain strategy that's us we ago. I we and we since is ahead in what market if continue have it we of and can't say that few the But the to go on So, different drive the will active. front that

conversations in maybe when cloud maybe terms and go of with April, conversations contrast And the you of could back the in and we just Great. pandemic today at to you're customers, having? appetite terms then terms in of start versus even of compare, the different March compare

Sure.

would the before the conversation I the sense urgency year similar beginning But think the of say, I the nature has, that pandemic. to of changed.

-- not front. that beginning they new, already the that organizations are sense believe, changed, the move the a same of and and answer that’s the fact want the mentioned the the to took to So providing, my question What timeline the after is on decision they pandemic. to cloud on on of I previous previous before reason the I that urgency is

do do sense how that. just do urgency of about, it's do how a What we it? So fast to it? can not we about it. question more It's -- higher And we if

Our Scott line the comes from America. Casher from Bank of next question of

You've at acceleration here? is you revenue little on how it and cloud think market is for activity, a do room your And pipeline this growth? bit, hit looking more sustainable but there

course, an So this first our provided we acceleration of XX% growth of we in And the very pleased we're, the with generally, quarter. all, cloud saw growth. for year,

-- guidance QX, is some have and that year of forward, earnings, entire general, next to to us. the as we'll both for And $XX for the cloudification. the believe we that next through when year, we going moving addressable and our Beth sure. we remarks February this provide change We also as and said market will going When her also market, exactly for of insight growth QX provide $X.X report next a is in that's see size a is This is confident today in then is market. about But we we billion in this in for the market billion, only our feel talk we we'll where But area growth a year. cloud.

is So the there. opportunity

business, we growth rate. of a the the past will reporting Of competitor and course, and player I the CCaaS far, to next continue further years. believe our it's in in as with that. is are opportunity our an for go There We it size execute need by industry, and in have good to twice two remember, us as execute, to we executed largest the higher that

there, is and So the all runway about now. it's execution right

educate dynamics declines the macro more, APAC now? this market right one It abroad. EMEA do weakness? Is in if like you What your I you need channels? And very more Or in saw about then That's to some just could. the and helpful. and market CCaaS invest are looks

is Scott, question. and this Beth, Hi, thanks the for

of on today, the we they license-based regions. Americas, markets and outside As more still are look on-premise the

we're our of growth and the excited quite cloud So have about expansion business. the we

seen are a XX the strong excited of regions, But those revenue. in to-date, year-over-year regions. we've reflection more to we license-based you really the time the fact, additional We're cloud time coming seeing In business. in of XX the variability, last very growth impact revenues in in those be all given the really we've to in a see about created But partnerships from longer to those business. from of of months revenue the regions, takes and we're driving cloud demonstrated course, which

and markets the healthy for opportunities us ahead cloud the excited in us, those So remain for we're about markets.

from line from Tavy question the the Barclays line next on of Your Rosner comes

the about wondering This Actually, partnerships. Tavy. ask I opening but you has And in the expand and statement you Zimmer I CXone of partner mentioned is your was follow-up I the for wanted with -- for platforms? what already on on if to X-Sight Chris evolution asked, will channel been could

It number a key back. partnership of international before, on have the we as in of And a also partnerships, lot partnerships. a go reported strategy mentioned the say momentum that also happy partnerships business partnership will the mileage, the also I we and several more so with X-Sight volume those with also as factor is new. technological the opportunities expand for very has that we of of happy for those Compliance. of business. the different we success have, into that CXone lot partnership have both It very terms to have have. Financial as the key on some more into go-to-market gain Crime mid-market we and and started which size and Beth these the lastly, past X-Sight. It's that's has with is that forming that. as very momentum, well very the of well on in technological part of aim are key starting and the we're partners there is it's is partners. Thanks the as with And Okay. few that more our partners. Xceed, partners different is but markets, both for And a quarters our as something on signed of true substantial performances we CXone But technologically, we of of today, pillar strong creates marketplaces and customers, and platforms all both dozens many not it years we more of a Yes,

next on Jefferies. Your the Samana from comes Samad from question line

and strong very Beth, want to want follow-up cloud a the just really performance. on peel bit. was I It little just impressive, maybe to back it

of follow-up maybe pure that some well. much how as I of and So can And versus Compliance to the have you other contribution breakdown X-Sight increasing strength was cloud of side from the the a business? the CXone offerings on Financial Crime and

Thanks coming been for performance, in is we've question. our cloud the and more of from strong arenas. highlighting look at more the you cloud every as Sure. our that And multiple growth quarter

course, CXone rates And regions. while look for significant for back in today, that's the we're you a Americas. our If really, and triple-digits Public predominantly across the for I've growth growth driven our Actimize Safety of seeing force being still was units driving as by year other in a double ago, business mentioned,

as as they large Of contribution. course, a terms not dollars, absolute are in of

other is units growth. start expansion CXone our predominantly good well I again, signs we're out highlighted, But that cloud and as as business as we to still other as build So today driving seeing regions. very that

the Great. customers. generally those maybe Are curious you I'm conversion It's about for And you. side? widening a getting Barak, installed than plus verticals? your -- they can base? you if could smaller CXone@home. is XX% for for Are Are that's share look Just how who geographies they curious they exciting much then, question any into on new aperture they and or existing new to hear the at? NICE about or characteristics the larger it

specific that. it's can't must It's or territory on I board. the to I vertical. multiple Thanks think a across because it's characterize verticals. trying -- actually, say specific across, I'm for a it

We success, also and domestically sizes. and different have internationally both this

is wall common other to that the and the is hit all they've of came time on a that right I hosting on to to from need think providers. what move solutions limitation or they work them with from the them. And on-premises exactly their for had home, experienced they

So is in right just matter And they a this they of days, tried realized solution. it. the

over So the segments how the size. the is and of across is. -- just all from vertical than legacy thing solution matter outdated Other it's it's that, common a their place a

break third going the many more verticals, some a broad about travel, across Beth, installed you such question. given to Are starting of retail, that Helpful. see if bring quantitatively service I'm so helpful? And a you to happened that to in challenged view you there you maybe starting there? of agents? I'm customers curious shows that base, rules, are or serve, Just what's I'm just back could us hospitality, anything has see think squeeze be the And improvements you the the trend-wise to NICE inside give going qualitatively verticals would

Sure.

from new driving that are I which -- around to really are today -- in government and companies. and a highlighted highlighted certain fortunate think growth quarters of we've really Barak we be technology the in discussion and lot acceleration kind of past sector in verticals, breed his

So accelerating this is the in and further fueling cloud. growth seeing we're really the

the seen initial of of kind we're from certainly, the growth did go In into And we further of a see we challenged expected, We've XXXX. that and optimism in signs fueling some as those flattening COVID. slowdown, I'd those terms opportunities positive verticals, are as hear optimistic verticals. market for in terms say as of result we

in was the time COVID, customer the with this in take opportunity one hospitality was generally, their of providers obviously on-premise service, the to That CXone. remarks front but travel, decided operators their referred surprisingly, every to you And opening size and a center and us matter verticals to, for hospitality, add just and of before, for not mentioned us. it’s I those I the deals to the a were very of that by impacted strong for at organization. it's -- just deal my verticals -- first in Samad, Maybe largest world. replace that, one But think

if that to an their some continue in. they want even there business, So it's area excel challenges are to more with

the Your Securities. Koontz from line line Ryan from the next question of on comes Rosenblatt

the there. cloud strong on growth Congrats

inContact changes of pricing the up any enterprise to starting there segment? you're new in clearly You've from mid-market low that wondering I'm if the I and success impact if in do and the are as end you moving market UCaaS or markets, space. seeing wonder competitive in seen players the that, of the some entrants

the for Thanks question.

adoption of But enterprises. said, the I This but the is we the So lies the we at opportunity the neglecting success are about obviously, time, very the as see the large increased and across board, ahead. we're SMB. believe where mid-market excited adoption, we same not

a very to strong of in successful channels a offering, wide and good be capabilities, course, very go-to-market this network market. very have We of a

we dynamics to we our way are deal. different segments. in So how highly segmented run we of we post don't we go-to-market any do And the run way the to that. with our services continue in and see the know those And course,

on line question comes from Morgan from next Sanjit Stanley. Singh Our the

great quarters. us see. hitting mix, of or logo potentially the that for to It's give on to a really team past of talk of you're conversion about bit is larger maybe either you Can couple CXone. of some Barak, it's little these the Congrats a XX% XX% terms how signing? of driving the that on been a in funnel ACV deals strong sense even acquisition new driving cloud

process. production. one of one one And over, a CXone@home year. quarter new kind their sales course, one And So the grew very contributors. I last -- as or vehicles comes We're we matter saves contributor. those CXone, CXone@home way a of that new at fast. The was can all, try is very lead versus effective time and QX logos very acquisition it's it of we it with lead separate of this have disposal, the very, generation. the logos a Customer of and XX% is of first this of and generation. ton live happy overall. look in is of in of but on of up effort regardless of two, at them, CXone@home, running day amount In from they number It's

very program very April, way, vehicle. organization back however very and doing a really, the where help proud And they support. time, it effective or program it's also a in very, you or trial piloting call at course that, just to some that call So we're of to the May needed it, want the by effective in really

out we as So many. it's momentum in our just one of pipeline. of it I continued the the said, program great and elements But created

point, I think outstanding just XX% there's And I Barak, elements number. Yes. a multiple it mean, pretty and we seems And that is at follow-up, -- on play. if could

impressive traction on think enterprise is the of what's doing there side is as large market well. that that particularly great customers, I your

terms online today new acquisition increased So sort converting are the What the sort better driving of pipeline, acquisition? are year velocity of that you things that's that of in versus in pace Is side? of changing increasing? getting the at decision-making, the customer are customer last guys

factors. -- it will I So it few give a

said, lot like race would move into and in to ago. the much year enterprises a faster that general, I move of Firstly, as cloud versus by they a

the is our go-to-market. Second of expansion

which resources, have I eventually We areas yet become domestically that. and go-to-market as while And as have said, well in more the We as strength those capabilities. see pronounced also internationally, will revenue the go-to-market both more well. actually you revenue in more internationally,

and that small, a and in starting I large we're high, a department and in have the if new course, expansion deals satisfaction small and are remarks, our with of of for lot of customer customer is -- even relatively will mentioned, two those And very growth years landed in this of of land a a one are big if all are they we So The successful enterprise if about contributors. customer, beauty to decide you've they one and all key logos new area, is, those once or such start even that's large my deals some that follow-on logos lot from expansion course, is ago. opportunity customer year intent, acquired got and of substantial. opening and that a

the Your D.A. next Jaluria line from Rishi comes on question Davison. from

wanted on But maybe of that seen business sustainability sustainability the continued the to see sustainability. just back go about not of to about nice ask and you've I And of thinking side rates, CXone the growth of result to side. the acceleration COVID. as cloud but a tailwinds the first

a into with back about it a be replacement us you potential customers, of opportunity and As you're a capacity have a remote Is we is those larger as And bit expanding to post-pandemic running the walk are increase those thinking it offices, to especially then replace nice those some legacy do replacements? centers usual you as your think as of safe I've maybe it's not tailwinds follow-up. post-pandemic, that going vaccine, maybe a when visibility more, and of about what their especially hybrid where contact with some that, Is how forward? kind ones velocity and environment to got talking traction, your going playbook? of at business to options? there on-premise the through sense for little work Maybe a XXX% so? upmarket question reopenings even Is to

try kind to of, answer. several I it's So questions. would say, I'll

the our mentioned The prospect. from COVID mentioned decisions because reaction first past to customers with one of is, accelerated many as few quarters, and and quarter-on-quarter, in we benefited it the we I've

see On be negative negativity or COVID all out hopefully, when the we business, side, the don't will vaccine be we a will on and this situation. there flip a impact our of

organization that will realization pandemic. and accelerate cloud believe the the we during contrary, those and had further post the the even pandemic insights On the experience

moving know can as question, the don't hear we our and it, What our about to from see, clear is us an customers. out. With are negative know and to want what us to these reaction two cetera. others thoughts this consult we call days come to and if pandemic customers analytical It's have respect from their dialogue to of et really would tools, doing to business what interesting lot they a forward. Customers things. So I like we a we they with get ask if

more to the now okay. months. something consumption X working things from different is experience, is productivity we a people increased all, hybrid deals real everything analytical And have as for from those all the work those customer home to that's home, implementing But understand had again the There that heard just to they they effective from to quarter, home thing or the their that of side tools. other want analytical They're working X one sense past working tools a sure that now analytics the home. of is make from the of working they effectiveness, office. of understand we working-from-home in First have here mode environments, the the as from -- environment effective is And are of stay is customers. like the even is than et deal in from that's it you engagement, cetera, or and either many potentially, versus who

really And it. follow-up. helpful. Got That's then quick a just

kind Marketplace, CXone, bit this we you're there? ecosystem marketplace. X-Sight think And potential and speak you've a the Marketplace? traction the you As the then maybe building of monetization had and now with about right, little Can the vectors the about out vision with that for longer-term

X is the Public scale the CXone, the marketplaces. top that our for cadence it's customers looking of we on are the capabilities Evidencentral. it's go is to there network, platform as we and or playbook which layers to I see in through part of And in X-Sight, we and in X-Sight and the market, to expand of as for this there are and additional either CXone, navigate sure to ecosystem onboard use point where of they a to further think value I part are Evidencentral, So said, CXone in for X-Sight And the and already same Safety. the at

that. with we So very are happy

So the value customers. one first is to

also say variety data the would a our -- to starting to thing actually do execute would The those systems monetization And are has, in I and in some have opportunities we a of is beyond traction see third and acquisitions. gets on opportunities. our us already then monetizing second that say, bit in X-Sight part. more enriching on are the there I but to for who successful, better And better us eager we monetization real opportunities. we're this options layer life, the and advanced great that very These that the on on get charge But for time, also see this, who in can a that have integration. are certain opportunities We -- resell can, from are we opportunities [slideware], this. to real way allows actually the might referral a players that qualification M&A a and on that very mentioned on And we that see future explore network go-to-market. leverage is I

of And Citi. line from your next question Pritchard comes on Walter line the the from

Two questions.

might on a one, you're I think, back. I'm had might you thinking license year? and you seen deferred then maybe Just a was, quarter that the into some see license move follow-up. that last come deals you've you And notion -- There next license, first, side. how about I especially as wondering

Walter. question, the for Thanks

we look was what the the of generally expected. QX we've think both I at As seen business, side and QX license in as

look flip I we the the on expect we strong, seen We of of the have the side bit momentum the license forward of same quarter, have think fourth we headwinds terms And cloud of some the to and we is continuing there. side. And the coming that, had of some in to more license the -- of have side be business. as ongoing on a course, the momentum compression on that on

and of what a As year vaccine that further some the house, a on means the and into I bit obviously, broader look budgets a a little with new play coming scale. side it's around license that on think XXXX into optimism we potential

certainly, as we likely well strong we And fourth as be So year. growth the that quarter as looking expect the mentioned, front, see to stabilization some side on next the next continue to we'll year. the really I believe in cloud into on license

just on then And a question. margin Great.

larger continued migration I impacts may sometimes think larger gross the gross just margin those generally cloud their made the telephony the in margins? is margins level? don't as You've cloud should mix customers they you progress see good know the they're deals, within about on that customers, what so how wondering gross own larger mix But and is it gross I'm bring enterprise impact how margin. have of higher towards we at cloud.

Yes.

which the we that CXone, that, and it head, the true the buying our that's you do them Compliance as more the telephony. of suite be platform. have X-Sight see or across often into they think the we I of course, whether their own enterprise, really, on and hit nail cloud Safety go Crime is And Public platforms, larger very Financial

analytics So theme overall which of piece going more a of the it's common the really deal. the coming that, enterprise, you're buying as higher-margin is telephony to large they're software the profile the and into at really relative the

that cloud So gross seeing we factors I and the increase you've are almost of one that's margin seen has it that growth to impact, year-over-year. in NICE has contributed the XXX a the basis a had positive mean year-over-year. we've

ongoing of that place. that to expect trend and be time over we in So to more see

this time. are go back to at no ahead. queue the hand Barak. questions call now Please in I'd And the over like more There to

for all you us, nice a have much very and day. joining Thank

Thank you call That conference concludes today. to speakers. for your our all

day. of the joining, may You enjoy disconnect. you Thank for rest and your