Benzinga | Feb 18, 2021 08:14AM EST

Nice Reports Q4 Margin Compression, Record Cloud Revenue, Issues Optimistic Guidance

* Nice Ltd (NASDAQ: NICE) reported fourth-quarter revenue growth of 1% year-on-year to $435 million, exceeding the analyst estimate of $433.11 million. Cloud revenue grew by 31% Y/Y to $219 million with a gross margin expansion of 410 basis points to 58.3%.

* Overall gross profit declined 1.5% to $288.5 million with a margin compression of 170 basis points to 66.4%.

* Operating income declined 16.7% to $65 million with a margin contraction of 300 basis points to 15%.

* Net income rose 41.9% to $106.9 million. EPS increased 1.9% to $1.61 above the consensus estimate of $1.55.

* Operating cash flow improved 83.5% to $167 million, and Nice bought back stock worth $20.7 million in the quarter.

* The closing cash balance stood at $1.5 billion, and debt stood at $681.2 million.

* Nice expects first-quarter FY21 revenue between $445 million and $455 million, above the consensus estimate of $435.13 million. EPS outlook lies between $1.42 and $1.52, close to the analyst estimate of $1.5.

* Price action: NICE shares are down 8.33% at $249.66 in the pre-market session on the last check Thursday.