NICE shares tumble over 7% as Q1 guidance disappoints

Published 20/02/2025, 11:56
© Reuters

HOBOKEN, N.J. -On Thursday, NICE Ltd. (NASDAQ:NICE) reported fourth-quarter earnings that beat analyst estimates, but its shares plunged -7.56% after the company provided weaker-than-expected guidance for the first quarter and full year 2025.

The customer experience software provider posted adjusted earnings per share of $3.02 for Q4, surpassing the analyst consensus of $2.95. Revenue came in at $721.6 million, exceeding expectations of $715.26 million and representing a 16% YoY increase.

However, NICE’s outlook fell short of Wall Street projections. For Q1 2025, the company expects EPS between $2.78 and $2.88, below the $2.90 consensus. Q1 revenue guidance of $693-703 million also missed estimates of $725.5 million.

Full-year 2025 guidance was similarly disappointing, with EPS projected at $12.13-$12.33 versus $12.32 expected, and revenue of $2.92-2.94 billion compared to the $3.01 billion analyst forecast.

"We’re pleased to report a strong finish to 2024 capped off by an exceptional fourth quarter with double digit growth in total revenue, cloud revenue and further acceleration of our industry leading profitability," said Scott Russell, CEO of NICE.

Cloud revenue, a key growth driver, jumped 24% YoY to $533.9 million in Q4. For the full year 2024, cloud revenue surged 25% to reach $1.98 billion.

The company highlighted its leadership in CX AI, noting that advanced AI solutions were included in 97% of large enterprise CXone Mpower deals over $1 million ARR.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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