Customer service and risk management software company Nice has reported a positive second quarter, and confirmed its annual revenue guidance and raised its profit guidance. The company beat the consensus analysts’ estimate on both revenue and profit, with quarterly revenue of $727 million and non-GAAP earnings per share of $3.01, thanks to the strength of its cloud business.
On the release of the results, Nice’s share price jumped by about 4% on the Tel Aviv Stock Exchange, but it has since fallen back sharply and is now down by 5.2%. On Nasdaq, the stock is down 7.43%, at $137.
Second quarter revenue was up 9.4% in comparison with the corresponding quarter of 2024. Cloud revenue grew by 12.2%, and represented 74.4% of the total. In the first half year, revenue grew 7.8% to $1.43 billion, with cloud revenue surpassing $1 billion. Revenue from services declined while revenue from products rose.
On a GAAP basis, Nice’s net profit rose to $187 million for the quarter and $317 million for the half. On a non-GAAP basis, the figures were $190 million and $375 million.
Operating cash flow in the second quarter was $61.3 million. $30.8 million was used for share repurchases. At the end of the quarter, the company had total cash and cash equivalents and short-term investments of $1.6 billion, and debt of $460 million. Nice recently announced the acquisition of German company Cognigy for $955 million, an acquisition meant to deepen its activity in AI, which up to now has been perceived as a threat to its business.
The company reaffirmed its guidance for 2025 non-GAAP total revenue, which is expected to be in a range of $2.92 billion to $2.94 billion, representing 7% year over year growth at the midpoint. It raised its guidance for full-year non-GAAP fully diluted earnings per share, which is expected to be in a range of $12.33 to $12.53, representing 12% year over year growth at the midpoint.
Nice CEO Scott Russell said of the second quarter results, “This performance was driven by continued strength in our cloud business, which grew 12% year-over-year. A key catalyst behind this momentum is the accelerating demand for AI and self-service solutions, with annual recurring revenue in this part of our business rising an impressive 42% compared to the same period last year.
“AI is at the core of our strategy, and we are at the forefront of the AI-first transformation in the customer experience market. And this is just the beginning. Our momentum is set to accelerate further with the upcoming integration of Cognigy’s industry-leading CX-AI conversational and agentic capabilities upon closing of the transaction, enabling us to deliver truly human-like, AI-first customer experiences on CXone Mpower. Our continued leadership in AI innovation is powered by our solid financial foundation, strong profitability, and robust balance sheet, as well as a growing number of strategic partnerships secured over the past six months.”
Published by Globes, Israel business news – en.globes.co.il – on August 14, 2025.
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