NICE Ltd. (NASDAQ:NICE) Q2 2023 Earnings Call Transcript

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So we’re taking on more and more market share with large enterprise. And of course, as it is typical in the software industry, it’s typically that you’ll see it takes a bit longer as you go into these very large organizations to see that revenue materialize into the revenue stream. So all in all, we continue to be very pleased with our performance, both in the first half and are looking forward to the second half of the year as well.

Operator: Our next question comes from the line of Tyler Radke with Citi.

Tyler Radke : Barak, you talked about how some of your conversations with respect to AI seem to be kind of happening faster than you expected. And I’m sure just the technology rollout has been faster than we all thought 90 days ago. Just as it relates to the core business and how your traditional sales cycles for CXone are progressing, is the conversation around AI having any — causing any delays in kind of core CXone? Can you just kind of talk about the puts and takes of the excitement around AI?

Barak Eilam : Sure. I actually think it helped us in the win rate of winning CXone, and we see it happening. As I mentioned, 100% of our 7-digit and higher deals in the quarter, CXone deals included AI. So some of them were driven by AI; in some, it was an add-on to the process. So that’s one thing. It also allows us to much expand the scope and help in getting both the funds and the support when it comes to adopting CXone. It’s no longer just the legacy, let’s replace an Avaya, Genesys or something like that or Five9 voice only, but rather much bolder both digital engagement and taking over both the agent-assisted and the consumer-led conversations or interactions. As a result of that, the scope is much bigger, and it helps us to compete vis-a-vis those competitors that do not have something equivalent to Enlighten.

So you can look at it both as a standalone business or driver for our growth, but also something that fuel the core driver of our business, which is the cloudification cycle of the CX market still with a very long runway to it.

Tyler Radke : Okay. Great. And just a follow-up, Beth. So on the full year for cloud revenue, I think last quarter, you talked about 22% to 25%. It sounds like maybe you are seeing some sales cycles elongate at the large enterprise, which you’re certainly not the only ones there. How should we think about full year cloud revenue growth? Is it — would you steer us towards the lower end of that 22% to 25%? Any way to kind of frame the glide path on the decelerating — deceleration in the second half would be helpful?

Beth Gaspich : Yes. Thanks for the question, Tyler. We came into this year talking about a range of 22% to 25% expectation in our cloud revenue growth, and we remain committed, and that’s the range we continue to expect. Of course, we’re just coming out of the first half of this year. And we remain, as I said, optimistic about the pipeline and the business momentum we are seeing. So at this point, we continue to stand behind the range. And obviously, as we come out of Q3, we’ll provide additional color at that point.

Operator: Our next question comes from the line of Siti Panigrahi with Mizuho Securities.

Sitikantha Panigrahi : It’s good to see some of the deals you highlighted with AI and digital. But could you give some color around like your AI attach rates, how does it look like for the new logos, new customer? And then the deal signing, what kind of mix you are seeing in terms of expansion versus new customer?

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