Yahoo Finance NICE's Prospects Benefit From Strong Portfolio Growth
Nice NICE benefits from an expanding portfolio which is primarily driven by the robust adoption of its solutions like Actimize, Evidencentral, Inform Elite and CXone.
In first-quarter 2024, NICE reported total revenues of $659 million, up 15% year over year. The upside was driven by robust performance across their customer engagement and financial crime and compliance segments.
Within NICE’s financial crime and compliance segment, Actimize played a pivotal role, contributing to $108 million in revenues in first-quarter 2024. The segment registered an impressive 8% year-over-year growth, driven by strong cloud revenues and the continued success of on-premise products.
NICE Actimize further solidified its position by being recognized as a Leader in the “IDC MarketScape: Worldwide Enterprise Fraud Solutions 2024 Vendor Assessment.”
The recognition underscores NICE Actimize’s commitment to enterprise fraud management, highlighting its IFM Enterprise Fraud Management platform.
The platform also leverages collective intelligence and cross-industry expertise to protect financial institutions from emerging fraud typologies, ensuring customer security and safeguarding against reputational damage.
Nice’s Expanding Portfolio Aids Growth
NICE Actimize is advancing with its upcoming IFM version 11, integrating AI throughout the fraud management lifecycle to enhance accuracy, agility, and operational efficiency through intelligent orchestration and network analytics powered by GenAI.
NICE’s expanding cloud offerings, mainly its CXone platform, remains noteworthy. During first-quarter 2024, it reported cloud revenues of $468.4 million, up 27% year over year. The company also saw a remarkable 200% year-over-year increase in AI deals in first-quarter 2024, highlighting the rising demand for AI-driven CX solutions.
In June, Nice launched CXone Mpower, integrating Copilot, Autopilot and Actions into a CX-aware AI platform, enhancing customer experiences with continuous memory and AI-driven insights across the journey.
Nice’s expanding portfolio is helping it to fend off competitors from other industry players like Five9 FIVN, Salesforce CRM and 8X8 EGHT, who are also extending their offerings in the CX market.
Five9 recently announced an enhanced collaboration with Salesforce, integrating AI-powered solutions to improve customer experiences in contact centers through real-time agent guidance and conversation intelligence.
In February, 8x8 launched 8x8 Engage, an AI-powered solution that facilitates cross-organization customer engagement, enhancing customer experiences and driving business success by addressing the needs of customer-facing employees outside of the contact center with tailored tools and capabilities.
Conclusion
Nice’s shares have declined 14.8% year to date compared with the Zacks Computer & Technology sector’s 28.2% growth.
This Zacks Rank #2 (Buy) company’s efforts to enhance its customer experience on the back of its robust cloud solutions are expected to drive top-line growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
For second-quarter 2024, non-GAAP revenues are projected to be between $657 million and $667 million, calling for 14% growth at the midpoint from year-ago levels. The Zacks Consensus Estimate is pegged at $662.97 million, indicating 14.09% growth from year-earlier actuals.
Non-GAAP earnings are estimated in the $2.53-2.63 per share band, suggesting a 21% rise at the midpoint from the prior-year figures. The Zacks Consensus Estimate is pegged at $2.58 per share, increased by a penny over the past 30 days.
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