NICE Actimize Unveils Next-Gen AI Platform for Fraud Prevention
NICE has launched the advanced AI-powered platform X-Sight ActOne. This next-generation tool aims to revolutionize fraud and financial crime prevention.
The new X-Sight ActOne builds on the platform’s existing capabilities, incorporating Agentic AI to unify various financial crime workflows. By analyzing billions of daily transactions alongside real-world fraud insights, the platform significantly improves analytical accuracy and boosts the efficiency of investigators.
One of its standout features, InvestigateAI, reduces investigation times by over 50%, enhancing compliance and automation while empowering financial institutions to better combat fraud and money laundering.
NICE’s Portfolio Drives Performance
Year-to-date, NICE’s shares have declined by 7.2%, but this is an outperforming trend compared to the Zacks Computer & Technology sector, which has seen a 10.9% drop. This resilience stems from its diverse portfolio, including solutions like Actimize, Evidencentral, CXone, and Inform Elite.
Nice Price and Consensus
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In January 2025, NICE Actimize partnered with The Knoble to release a guide aimed at helping financial institutions detect and respond to suspicious human trafficking activities, further strengthening its position in the market.
The company continues to see robust growth in its cloud revenues, which rose by 24% year-over-year to $534 million in the fourth quarter of 2024. Cloud revenues now account for a record 74% of total revenues, a milestone driven by the success of its CXone Mpower platform and the ongoing migration of large enterprise customers to cloud solutions.
A significant increase in large enterprise clients has also been noted, with over 400 customers generating more than $1 million in annual recurring revenues by the fourth quarter of 2024. This growth highlights strong demand for its CXone Mpower platform, particularly among large enterprises.
NICE Expands Client Base
NICE’s comprehensive portfolio continues to attract new customers, bolstered by partnerships with AT&T and Microsoft (MSFT). The collaboration with Microsoft has been particularly beneficial, as it facilitates the integration of NICE’s NTR-X Compliance Recording and Assurance Solution into the Microsoft Azure Marketplace. This provides clients with a robust compliance platform through the NICE ComplianceCentral suite.
NICE Projects Strong First Quarter Guidance
Anticipated enhancements in customer experience through its cloud solutions are set to fuel NICE’s top-line growth. The company forecasts a 12% year-over-year increase in cloud revenues for 2025.
For the first quarter of 2025, NICE expects non-GAAP revenues in the range of $693 to $703 million, representing a projected 6% year-over-year growth at the midpoint. The Zacks Consensus Estimate for first-quarter 2025 revenues stands at $699.39 million, reflecting a 6.08% increase from the previous year.
Moreover, non-GAAP earnings are predicted to be between $2.78 and $2.88 per share, implying a 10% year-over-year growth at the midpoint. The consensus estimate for earnings is $2.84 per share, signaling a projected growth of 10.08% compared to the prior year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
NICE Stock Strategy: Hold for Now
Despite its promising offerings, NICE faces increased competition from industry players like Five9 (FIVN) and 8×8 (EGHT), which are also innovating in the customer experience sector and posing challenges to NICE’s top-line growth.
For example, 8×8 recently introduced the 8×8 AI Orchestrator, enabling businesses to efficiently manage AI bots across platforms for improved customer experience. Likewise, Five9 launched Spotlight for Five9 AI Insights, which provides generative AI-driven insights and reporting capabilities to assist companies in making informed decisions and enhancing customer interactions.
NICE holds a Zacks Rank of #3 (Hold), which indicates that investors may want to await a more favorable entry point into the stock. For more insights, check the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
