Key Points
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Nice is a leader in enterprise software, specifically in the contact-center-as-a-service industry.
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The company’s second-quarter earnings showed a 9% rise in sales and a 14% increase in adjusted earnings per share (EPS).
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Despite strong AI-related sales growth of 42%, management’s conservative guidance of 5% sales growth and 10% EPS growth led to a 7% drop in share prices.
Nice (NASDAQ: NICE) reported second-quarter earnings on Thursday, revealing a 9% increase in sales and a 14% jump in adjusted EPS. As of 11 a.m. ET, shares fell by 7% due to management’s cautious forecast, projecting only 5% growth in sales and 10% in EPS, which disappointed investors. However, AI-related sales surged by 42%, driven by a sixfold increase in bookings for its Copilot solution. Nice has already established a strong customer base, including 85 of the Fortune 100.
Notably, Nice recently acquired Cognigy for $955 million, enhancing its AI capabilities. The company remains a leader in the contact-center-as-a-service market but faces competition from Amazon Web Services, its largest competitor and partner. Nice trades at 12 times free cash flow, indicating it might still present a viable investment opportunity.
