Nice Earnings: Solid Numbers, but Market Spooked by CEO Stepping Down After 10 Years.
Narrow-moat Nice reported 15% first-quarter revenue growth, in line with our expectations, including cloud growth of 27%. Non-GAAP EPS came in ahead of FactSet consensus at $2.58, also an increase of 27% year on year, and management fractionally raised its 2024 guidance as a result to 21% growth at the midpoint of range. These results support our view that macroeconomic headwinds that were hitting usage at small and medium customer engagement segment customers in 2023 appear to be receding. Despite a solid report, shares are off by about 10% on the day, likely in response to CEO Barak Eilam announcing his intention to depart Nice at the end of 2024, after 10 years at the helm and 25 at the company.