Israeli software company Nice aims for double-digit growth in 2022

JERUSALEM, Feb 17 (Reuters) – Israeli business software provider Nice (NICE.TA) expects double-digit growth to take revenue to more than $2 billion for 2022, it said by reporting on Thursday a higher than expected increase in its quarterly net profit.

Nice earned $1.73 per diluted share excluding special items in the fourth quarter, compared with $1.61 a year earlier. Revenue increased 18% to $515 million, with cloud revenue increasing 28% to $285 million.

The company was expected to post adjusted earnings per share (EPS) of $1.71 on revenue of $496 million, according to I/B/E/S Refinitiv forecasts.

For 2022, Nice forecasts adjusted EPS of $7.07 to $7.27 and revenue of $2.14 to $2.16 billion, with midpoints up 10% and 12%, respectively , compared to 2021. Analysts expect adjusted EPS of $7.26 and revenue of $2.1 billion.

Last year, the company saw a 14% increase in EPS to $6.52, while revenue rose 16% to $1.93 billion.

“We continue to view Nice’s story as compelling, with the company well positioned to benefit from a refresh cycle of its large customer base and a competitive shift,” said Barclays analyst Tavy Rosner, who qualifies Nice to be “overweight” and see compound annual growth. 30% for cloud revenues until 2023.

Nice expects first-quarter adjusted EPS of $1.65 to $1.75 and revenue of $505 to $515 million, versus analyst expectations of $1.70 and $494 million.

Chief executive Barak Eilam said the results were driven by growth in cloud services, with cloud revenue up 30% in the fourth quarter to more than $1 billion for all of 2021.

Shares of Tel Aviv-listed Nice were down 3.1% in afternoon trading. Its Nasdaq shares are down 14% so far in 2022 after gaining 7% in 2021.

Reporting by Steven Scheer Editing by David Goodman and Michael Urquhart

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