NICE Ltd. (NASDAQ:NICE) Q4 2022 Earnings Call Transcript

Samad Samana: Very helpful. And then, Beth, maybe a follow-up for you. Just the cloud revenue guidance for 22% to 25% growth for the full year. That’s a pretty strong starting point. The only question I have is how should we think about maybe what’s assumed in that guidance from a macro perspective or a timing of 2022 book deals going live just given that the range at the midpoint is kind of below that 25% long-term growth rate that you’ve given. Just how should we think about what went into that guidance or what’s assumed for 2023 specifically?

Beth Gaspich: Yes. Thanks for the question, Samad. So as you highlighted, we provided a range of cloud revenue growth expectation between 22% and 25% for the year €“ of course, that’s following a really impressive growth we had in our cloud of 27% for the full year last year and 26% in the fourth quarter. We saw that relative to our closest competitor, our growth rate was considerably higher in the Cloud business. And of course, we’re at a scale that’s nearly double some of our nearest competitors. So with respect to what we expect in terms of how that will play out, the range was provided as it does include some caution relative to the overall macro environment in 2025. We do believe we have line of sight to the higher end of that range. And of course, we’ll continue to update that as the year progresses.

Samad Samana: Thanks.

Barak Eilam: Maybe just to add one more word here, Samad, on the growth moving forward. Beth mentioned the scale that we have, we saw also the sequential growth from Q3 and Q4 that was similar to last year at 9%, which shows that we continue to accelerate well in the Cloud. I think that the message with this guidance vis-à-vis what we hear and see from the competitive landscape is that we are taking market share.

Samad Samana: Great. Thank you both for the color, appreciate it.

Operator: Thank you. Our next question is from Tyler Radke with Citi. Please proceed with your question.

Tyler Radke: Thank you, and good morning. I wanted to touch on the competitive landscape. Obviously, Avaya has been in the headlines with the bankruptcy and it’s probably easy to imagine how you are benefiting from that. But I actually wanted to ask you outside of Avaya with some of your other competitors? Just what are you seeing there? Are share gains increasing? And what do you think is the biggest differentiator today in terms of your product set versus the competitors outside of Avaya? Thank you.

Barak Eilam: Sure, no problem. So, you are correct with your observation, and I mentioned it in one of those four big opportunities we see, both for the short and the long term. I think the CX market has a pretty unique competitive landscape right now. And as I said, it’s divided between Avaya and another large player out there that are really struggling to basically servicing debt. And we know for a fact that the management team are spending the majority of their time focusing on cash flow and how to service debt with a very, very high interest rate. And as a result of that, they need to take tough decisions that will impact both the short term but also the long term as they are limiting the investment that they can do in innovation.