NICE ANALYST AND INVESTOR DAY INTERACTIONS 2016

Transcription

1 of NICE ANALYST AND INVESTOR DAY INTERACTIONS 2016

2 Analyst and Investor Program Tuesday, May 24, 2016 TIME CONTENT Welcome Marty Cohen, VP, Investor Relations Company Overview Barak Eilam, CEO, NICE 11:30 am 1:15 pm Company Overview, incontact Paul Jarman, CEO, incontact Financial Crime & Compliance Overview Joe Friscia, President, NICE Actimize Financial Overview Eran Liron, EVP, Marketing and Corporate Development, NICE Q&A Session Senior Management 1:15 pm 2:00 pm Lunch 2:00 pm 3:00 pm Solutions Tour at the Showcase 3:15 pm 4:00 pm A Peek into the Future of Your Back Office David Geffen, NICE 4:00 pm 4:45 pm Interaction Analytics Outside the Box Thinking Fred G. Daum, PSEG Long Island 4:45 pm 5:30 pm A Peek into the Future of Customer Experience Oded Karev, NICE 7:00 pm Customer Party Mango s Tropical Cafe

3 Forwards Looking Statement Disclaimer This presentation contains statements, including statements about future plans and expectations, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such forward looking statements are generally stated in terms of the Company s plans, expectations and intentions. These statements are based on the current beliefs, expectations and assumptions of the Company s management and the current economic environment. Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking statements. These factors, include, but are not limited to, risks associated with the global economic environment on the Company s customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; and the effect of newly enacted or modified laws, regulation or standards on the Company and its products; and other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the SEC ). You are encouraged to carefully review the section entitled Risk Factors in our latest Annual Report on Form 20-F and in our other relevant filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance, and undue reliance should not be placed upon these statements. The forwardlooking statements contained in this presentation are made as of the date hereof, and the Company undertakes no obligation to update or revise them, except as required by law.

4 of COMPANY OVERVIEW Barak Eilam, CEO, NICE

5 Customer Interactions Financial Crime & Compliance Making people s experiences timely and seamless Protecting people s money and assets 5

6 CLOUD NICE ANALYTICS 2020 ENTERPRISE SOFTWARE COMPANY LARGE PORTFOLIO 6

7 Divestiture of Security divisions ENTERPRISE SOFTWARE COMPANY Aligned businesses across all dimensions: technologies, customers and markets Enterprise software business model 7

8 Accelerated innovation MASTERING LARGE PORTFOLIO Enhanced go-to-market Acquired Portfolio ROBOTIC AUTOMATION NICE ENGAGE IVR JOURNEY ANALYTICS NICE ACTIMIZE NOTIFICATIONS &ATTESTATIONS HOLISTIC SURVEILLANCE BACK OFFICE SUITE MULTICHANNEL CUSTOMER SERVICES TOTAL VOICE OF THE CUSTOMER EMPLOYEE ENGAGEMENT MANAGER NICE INVESTIGATE REAL TIME AUTHENTICATION

9 Robust analytics platform INFUSING ANALYTICS Analytics across entire portfolio Nexidia: analytics with no limits

10 Scalability Speed ANALYTICS Deployment with no limits Integration Accuracy 10

11 CLOUDIFYING NICE

12 Customer Service is in constant catch up mode Empowered customer Highly knowledgeable In control and has power Many choices High expectations New employee Wants to be engaged Expects personalization Transparency Adaptive environment Communication Channels 12

13 The continuously evolving Contact Center Advanced Applications Interaction Analytics Performance Management Desktop Guidance Voice Of the Customer Customer Journey WFO Recording Workforce Management Quality Management CRM Infrastructure Telephony Network Servers ACD IVR Dialer Web

14 The continuously evolving Contact Center Siloed purchases, separate vendors Compromise: Powerful point-solution VS. Limited suite offerings The de facto system integrator of the industry Legacy purchase model: Always buy for max capacity Upfront investment Long-term commitment

15 The continuously evolving Contact Center It s time to stop catching-up and get ahead of the curve!

16 A new VISION for customer service WFO ANALYTICS Omni-Channel CC From the Contact Center to the Experience Center The market s most complete omni-channel CC in the cloud Powered by the most comprehensive WFO portfolio Infused by advanced analytics Seamlessly integrated Fully cloud- easy to implement, low TCO, highly scalable and ELASTIC

17 2 double portfolio 2 by 2 by 2 Opportunity x 2 double market segments Increases for NICE Total x 2 double customer lifetime value Addressable Market 8 TAM increases 6x to 8x: $15 billion opportunity

18 18 of

19 incontact Overview April 2016

20 More than a $15B Opportunity North America Contact Center Agents 2016 Forecast Worldwide Contact Center Market Opportunity CCaaS will support 12.6% of North America contact center agents by CCaaS in 2016 Cloud Contact Center Agents 13% Estimated TAM: $15 billion Estimated Concurrent Seats: 10.5 million Click to edit Master title Click to edit Master title Click to edit text Click to edit text Source: Gartner 2016 North American installed based = 6.2 million agents 20

21 Customer Experience Transformation Consumers have heightened expectations Click to edit Master title Click to edit Master title Customer interactions are more complex Click to edit text Click to edit text Companies must take a strategic view of the consumer to stay competitive 21

22 Click to edit Master title Click to edit Master title Click to edit text Click to edit text 22

23 Integrated Contact Center Ecosystem Customer Relationship Management (CRM): e.g. Siebel, SalesForce, Zendesk Data Repository Click to edit Master title Click to edit Master title Customer Interaction Management Software Workforce Optimization and Analytics Software Voice-as-a-Service Click to edit text Click to edit text UNIFIED COMMUNICATIONS: e.g. Avaya, RingCentral, 8x8, Cisco, Vonage PBX 23

24 Click to edit Master title Click to edit Master title Click to edit text Click to edit text 24

25 Broadest Channel in Cloud Contact Center Market Increasing our coverage and routes to market Carriers PBX providers Referral Partners VARS Others Click to edit Master title Click to edit Master title A Global Communications Provider Click to edit text Click to edit text 25

26 Enterprise Traction oover 90 customers billing over $500K oover 20 customers billing over $1M oover 4 customers billing over $2M Click to edit Master title Click to edit Master title ocurrent pipeline supports increases in all segments: Enterprise Midmarket BPOs Government Click to edit text Click to edit text 26

27 Click to edit Master title Click to edit Master title Click to edit text Click to edit text 27

28 Summary o The cloud leader in a large and growing $15 billion+ market o Highly-differentiated offering, delivering unique value to customers o Diverse, highly loyal and expanding customer base o Multiple growth vectors with new and existing customers and partners oclick Compelling to edit Master title Click to edit Master financial title profile with strong growth in recurring SaaS Revenue and significant operating leverage o Seasoned management team with deep industry expertise Click to edit text Click to edit text 28

29 FINANCIAL CRIME & COMPLIANCE of Joe Friscia, President, NICE Actimize

30 The headlines Offshore Accounts Spotlight Will Only Heighten AML Compliance Issues SPEAK FOR THEMSELVES 2 charged with Stock Market Manipulation Mossack Fonseca: inside the firm that helps The super-rich hide their money Human Trafficking Risk Index Provides Supply Chain Transparency Banks Wrestle With Iran Sanctions Move

31 New Regulations New Fraud Schemes Adoption of Cloud CURRENT MARKET DRIVERS Rising People Costs The Emergence of FinTech 31

32 MARKET OPPORTUNITY IT Spend on Financial Crime & Compliance Total Addressable The Price of Financial Crime $2.1 trillion to the World Economy Market = $1.2b Maintained Market Leadership in New Logos ~20 % of TAM

33 WE STOP BAD PEOPLE FROM DOING BAD THINGS BY FINDING UNUSUAL BEHAVIOR EARLIER AND FASTER THAN OUR COMPETITION

34 HOW WE DO IT AML FRAUD FMC

35 STRATEGIC AREAS OF FOCUS TO GROW THE BUSINESS New Products Based on Horizontal Technologies Down Market Expansion Partners & Channels 35

36 STRATEGIC AREAS OF FOCUS TO GROW THE BUSINESS NEW PRODUCTS BASED ON HORIZONTAL TECHNOLOGIES AML Reporting Pack & Dashboards Investigation Management FRAUD Notifications & Attestations Authentication IQ FMC Holistic Surveillance Big Data Advanced Analytics BI/Visualization

37 STRATEGIC AREAS OF FOCUS TO GROW THE BUSINESS DOWN MARKET EXPANSION VIA THE CLOUD AML Essentials Cross-Asset Cloud Fraud Essentials (coming) Expands Addressable Market to $1.6b

38 STRATEGIC AREAS OF FOCUS TO GROW THE BUSINESS PARTNERS & CHANNELS Business Partners/Sell With Competitive intelligence Lead generation Business Partners/Sell Through Geographies expansion New markets opportunities Cross-Sell w Customer Interactions Holistic Surveillance Work item management Delivery Partners License extensions Competitive alternatives

39 39 of

40 of FINANCIAL OVERVIEW Eran Liron, EVP Marketing & Corporate Development, NICE

41 Q Highlights Revenue of $226 million, 4.3% growth Gross margin increased to 70.6% compared to 69.8% last year Operating margin of 25.6% compared to 23.3% last year EPS of $0.81, 17.4% increase year-over-year Operating cash flow a record of $113 million compared to $104 million last year Nexidia Acquisition closed at the end of Q * All numbers, except cash flow, are Non-GAAP ** All Q comparable numbers exclude divestitures Analyst and Investor Day

42 Revenue Trends ($M, Non-GAAP) $823 $873 $927 Guidance $995-$1015* * * 2016 revenue guidance as provided on May 5, 2016 ** All numbers exclude divestitures 42 Analyst and Investor Day

43 Improving Profitability While Maintaining Growth - Gross Margin % % % 69.4% % Gross Margin Revenue * All numbers exclude divestitures 43 Analyst and Investor Day

44 Improving Profitability While Maintaining Growth Operating Margin % 25.4% % 22.1% bp 210bp % Operating Margin Revenue Decrease in OPEX as % of Revenue 760 * All numbers exclude divestitures 44 Analyst and Investor Day

45 Business Model: Strong Base of Recurring Revenue (Full-Year 2015) Recurring Revenue Product Revenue ~45% ~35% ~20% Professional Services Revenue * All numbers exclude divestitures 45 Analyst and Investor Day

46 Business Model: Illustrated Snapshot Recurring Revenue Including Acquisitions (Full-Year 2015) ~55% ~45% Non-Recurring Revenue * All numbers exclude divestitures 46 Analyst and Investor Day

47 Seasonality % % % Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 * All numbers exclude divestitures 47 Analyst and Investor Day

48 44% 47% 54% 58% Analytics (% of New Bookings) Q1 13 Q1 14 Q1 15 Q1 16 * All numbers exclude divestitures 48

49 Strong Operating Cash Flow $270 $155 $ * ** *Excludes one-time cash payment and release of trapped profit of $30.9 million in Q ** Excludes proceeds from divestitures and one-time tax payment on capital gain related to the divestitures *** Cash Flow includes divestitures 49

50 incontact Acquisition Deal Size $14 per share, total $940 million Accretion To Non-GAAP EPS by the end of 2017 Financing Cash, plus debt up to $475 million Closing By the end of 2016 subject to regulatory approvals and incontact shareholder vote 50

51 51 of