NICE Ltd

Welcome to the NICE conference call discussing third quarter 2025 results. And thank you all for holding. All participants are at present in a listen only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded November 13th, 2025. I would now like to turn this call over to Mr. Ryan Gilligan VP Investor Relations at NICE. Please go ahead.

Thank you, operator. I'm incredibly excited to join NICE as the company's new Vice President of Investor Relations, and I look forward to working closely with all of you in the investment community. With me on today's call are Scott Russell, Chief Executive Officer, and Beth Gaspich, Chief Financial Officer. Before we start, I would like to point out that some of the statements made on this call will constitute forward-looking statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, please be advised that the company's actual results could differ materially from these forward-looking statements. Additional information regarding the factors that could cause actual results or performance of the company to differ materially is contained in the section entitled Risk Factors in item three of the company's 2024 annual report on Form 20F as filed with the Securities and Exchange Commission on March 19, 2025. During today's call, we will present a more detailed discussion of third quarter 2025 results and the company's guidance for full year 2025. You can find our press release as well as PDFs of our financial results on NICE's investor relations website. Following our comments, there will be an opportunity for questions. Let me remind you that unless otherwise noted on this call, we will be commenting on our adjusted results of operations, which differ in certain respects from generally accepted accounting principles. As reflected, mainly in accounting for share-based compensation, amortization of acquired and tangible assets, acquisition-related expenses, amortization of discount on debt and loss from extinguishment of debt, and the tax effect of the non-GAAP adjustments. The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release. The information and some of our comments discussed on this call may contain forward-looking statements that are subject to risks, uncertainties, and assumptions. I will now turn the call over to Scott.

Thank you, Ryan, and we are thrilled to welcome you on board and have you join our team. Good morning and welcome, everyone. Well, let me start by saying The renewed strategy we laid out for NICE at the beginning of the year is now producing clear, tangible results, reflected in both our financial performance and our growing market position. We're seeing great momentum across our entire business, setting a solid foundation to sustain growth. We're pleased to report another strong quarter, underlined by exceptional cloud and AI bookings. stemming from the continued expansion and execution of our AI-first strategy, our international expansion, and our robust go-to-market performance. This quarter reinforced the strength of our AI solutions, driving real transformation for our customers with exceptional cloud bookings, driving a cloud backlog increase of 15% year-over-year, and with our AI capabilities included in every new seven-figure CX deal. In Q3, total revenue was $732 million at the high end of our guidance range, with cloud revenue reaching $563 million, up 13% year over year. Our cloud revenue growth was primarily driven by our AI and self-service offerings, whose ARR accelerated to 49%, driven by sustained organic momentum and the contribution from Nice Cognigy, which closed in early September. This demand for our AI offering is reflected in strong bookings for autopilot and co-pilot deals more than tripling in Q3. We also achieved a higher win rate against our key CX competitors, underscoring the growing customer appetite of our AI-powered and domain-rich solutions. Furthermore, it reinforces our conviction that we operate in a vibrant, growing markets where organizations are showing robust demand for accelerating their AI transformation using our offerings. We at NICE perceive AI not only as a catalyst for our groundbreaking innovation, but more importantly, as a fundamental force for reinventing how business, technology, and humans interact in each of our markets. In the world of customer experience, our leading CX AI platform, CX One, is using purpose-built AI to reshape customer journeys in exciting new ways. Our AI-powered orchestration allows us to perfectly blend human and AI agents, creating seamlessness in the end-to-end experiences that go well beyond the contact center, delivering automated workflows that move from accurately identified customer intent all the way to organizational fulfillment and resolution. We're also seeing increased demand for our leading nice Cognigy conversational and agentic AI solutions, available for implementation on any technology environment, allowing companies to design, run, and optimize AI agents quickly and simply with little to no code requirements and with specific CX built functionality and vertical know-how. There's tremendous added value that we're seeing for the powerful combination of CX1 and nice Cognigy together. Our ownership of the point of engagement awards us a distinct understanding of customer intent, sentiment, preference, and context across literally billions of engagements. This distinct AI-ready foundational data then forms the basis for automated creation of smart, agentic AI, turning this data into CX built workflow intelligence. The symbiosis of CX engagement data dynamically informing AI agent conversations and actions all happening as a part of a single unified platform is at the core of our differentiation and what sets us apart in our markets. Our innovation roadmap is already well ahead with many nice Cognigy integration capabilities already completed. and many more underway. Nice Cognigy drives further growth of the CX1 platform, and CX1 accelerates the Nice Cognigy expansion in our customer base, particularly in the enterprise segment. Combining sophisticated agentic AI with engagement-based data also enables us to change the paradigm of customer engagement. From a reactive to a proactive framework, identifying business-initiated intents, that can utilize human or AI agents to reach out to consumers, increasing sales, reducing effort, improving loyalty and trust. Our CX AI solutions are resonating with organizations of all sizes and verticals as evidenced by some of our key deals in the quarter. In Q3, one of the leading global auto manufacturers chose CX1 to transform their customer experiences. as part of an eight-figure ACV deal, underscoring NICE's continued leadership in the cloud contact center transformation and reinforcing the completeness of our CX AI platform. Their decision reflects the growing enterprise shift away from fragmented legacy systems towards a unified cloud and AI platform that enables modernization, agility, and superior customer engagement. In another substantial Q3 deal, AI to Cruisers chose nice Cognigy for their FAQ automation initiative, creating accurate dynamic responses to customer requests. Our integration with their existing environment allowed AI to Cruisers to capitalize on their existing data and workflows while modernizing the overall customer engagement experience. Our AI solutions are also generating strong upsell momentum Consumer Cellular, an existing NICE customer, added AI agent augmentation using our co-pilot solution in a seven-digit ACB deal, enabling real-time proactive triggering of agent guidance, injection of knowledge, and conversational suggestions, and improving the ongoing customer engagement. Q3 also saw continued momentum in our international business. as an increasing number of organisations across the globe looked to NICE for their CX transformation. DWP, UK's Department of Work and Pensions, extended their CX Sovereign Cloud initiative with NICE's self-service solutions in another seven-digit ACV deal, modernising citizen engagement through automation and digital self-service. They chose NICE for our compliance with Sovereign Cloud standards proven public sector standards, platform scalability, and our ability to execute on their AI and digital transformation roadmap. Our overall strong Q3 performance is further proof that our strategy is hitting the mark and that we're delivering across all our key focus areas. Our commitment to leading the AI revolution in all our markets and specifically in CX, with CX1 and our nice Cognigy solutions. The emphasis on developing our ecosystem and strategic partnerships to scale our impact, leverage our collaboration with major technology and GSI partners, and with many more to come. Our international expansion and cloud adoption acceleration in global markets, and of course, maintaining our financial strength with both operational rigor and industry-leading profitability while thoughtfully deploying capital through acquisitions and share repurchases. This is the perfect opportunity to remind everyone that our Capital Markets Day is coming up in just a few days on Monday, 17th of November in New York City. The event will feature presentations from our executive management team, covering in more detail our long-term strategy and the future of the CX market, our CX innovation roadmap with NICE Cognigy, and our financial overview, including mid-term outlook. If you've not registered yet and you'd like to attend, please contact our investor relations team at ir.nice.com. We look forward to seeing you all in person at this event. And with that, I will now turn the call over to Beth.