Nice Ltd (NICE) 2024 Q1 法說會逐字稿

Welcome to the NICE Conference Call discussing First Quarter 2024 Results, and thank you all for holding. (Operator Instructions)

歡迎參加討論 2024 年第一季業績的 NICE 電話會議，感謝大家的出席。 （操作員指示）

As a reminder, this conference is being recorded, May 16, 2024. I would now like to turn this call over to Mr. Marty Cohen, VP, Investor Relations at NICE. Please go ahead.

提醒一下，本次會議將於 2024 年 5 月 16 日錄製。現在，我想將本次電話會議轉給 NICE 投資者關係副總裁 Marty Cohen 先生。請繼續。

Thank you, operator. With me on the call today are Barak Eilam, Chief Executive Officer; and Beth Gaspich, Chief Financial Officer. Before we start, I'd 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.

謝謝您，接線生。今天與我一起參加電話會議的還有執行長 Barak Eilam；以及財務長 Beth Gaspich。在我們開始之前，我想指出，本次電話會議中的一些陳述將構成前瞻性陳述。根據 1995 年《私人證券訴訟改革法》的安全港條款。請注意，公司的實際結果可能與這些前瞻性陳述有重大差異。

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 3 of the Company's 2023 Annual Report on Form 20-F, as filed with the Securities and Exchange Commission on March 27, 2024.

有關可能導致公司實際結果或業績發生重大差異的因素的其他信息，請參閱公司 2023 年 3 月 27 日向美國證券交易委員會提交的 20-F 表年度報告第 3 項中題為“風險因素”的部分。

During today's call, we will present a more detailed discussion of first quarter 2024 results and the company's guidance for the second quarter and full year 2024.

在今天的電話會議中，我們將更詳細地討論 2024 年第一季的業績以及公司對 2024 年第二季和全年的指導。

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 on generally accepted accounting principles as reflected mainly in accounting for share-based compensation, amortization of acquired intangible assets, acquisition-related and other expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the non-GAAP adjustments.

您可以在 NICE 的投資者關係網站上找到我們的新聞稿以及財務表現的 PDF 檔案。在我們發表評論之後，將會有一個提問的機會。讓我提醒您，除非本次電話會議另有說明，否則我們將對調整後的經營業績進行評論，這些業績在某些方面與公認會計原則有所不同，主要體現在對股權激勵、收購無形資產攤銷、收購相關費用和其他費用、債務折扣攤銷和債務清償損失以及非公認會計準則調整的稅收影響的會計處理上。

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.

今天的新聞稿詳細說明了非 GAAP 調整結果與等效 GAAP 數據之間的差異。本次電話會議中討論的資訊和一些評論可能包含前瞻性陳述，這些陳述受風險、不確定性和假設的影響。

We'd also like to remind you that we're hosting our Investor Day on June 11 in conjunction with our Interaction user conference in Las Vegas. The special program for analysts and investors will include presentations from NICE executives and access to the innovations hall where you'll see several or many different types of demos. If you haven't received the registration e-mail, please e-mail us at ir@nice.com.

我們也想提醒您，我們將於 6 月 11 日在拉斯維加斯舉辦投資者日活動，同時舉辦互動用戶大會。針對分析師和投資者的特別計劃將包括 NICE 高管的演講和進入創新大廳的機會，在那裡您將看到幾種或多種不同類型的演示。如果您尚未收到註冊電子郵件，請發送電子郵件至ir@nice.com。

I'll now turn the call over to Barak.

現在我將把電話轉給巴拉克。

Thank you, Marty, and welcome, everyone.

謝謝你，馬蒂，歡迎大家。

Earlier today, we reported strong first quarter results, starting the year on a high note. We also announced my planned transition as the CEO of NICE. This decision has not been easy for me, as leading this incredible team and serving our customers, partners and investors for the past 10 years has been one of the greatest privileges of my life. With the company poised for continued success, and after 25 years at NICE, I believe it is the right time for me to step down. The Board and I have initiated a search process for my successor to ensure that NICE will continue on our journey of leadership, growth and profitability. NICE has been my home for more than half of my life, and I will continue to lead the company with the same passion as I did for my entire career until the end of this year as well as to support a smooth transition to my successor.

今天早些時候，我們報告了強勁的第一季業績，為新的一年開了個好頭。我們也宣布了我擔任 NICE 執行長的計劃。這個決定對我來說並不容易，因為在過去的十年中領導這個不可思議的團隊並為我們的客戶、合作夥伴和投資者提供服務是我一生中最大的榮譽之一。隨著公司準備繼續取得成功，並且在 NICE 工作了 25 年後，我認為現在是我卸任的最佳時機。董事會和我已啟動尋找我的繼任者的程序，以確保 NICE 能夠繼續保持領導、發展和盈利能力。我人生大半輩子都在NICE度過，今年年底前，我將繼續以整個職業生涯的熱情領導公司，並支持向繼任者順利過渡。

And now to our first quarter earnings.

現在來看看我們的第一季財報。

We are thrilled to start the year with positive momentum, evidenced by a robust performance across the board while continuing to outpace the market.

我們很高興以積極的勢頭開始新的一年，這體現在各方面表現強勁，同時繼續領先市場。

We reported total revenue of $659 million, which reached the high end of our guidance range and represented an increase of 15% from the same quarter one year ago. Our industry-leading cloud growth remained a driving force behind our strong top line performance showing an increase of 27% year-over-year. We also continued to deliver great profitability, as demonstrated by a 170 basis point increase in our operating margin, which ended the quarter at 30.3%, marking a significant milestone in our continued delivery of profitable growth. We far exceeded the high end of our guidance for EPS finishing the quarter at $2.58, which was an increase of 27% compared to one year ago. Completing the exceptional first quarter execution, we once again demonstrated superior cash flow generation totaling a record $254 million in operating cash for the quarter, an increase of 30% year-over-year.

我們報告的總收入為 6.59 億美元，達到了我們預期範圍的高端，比去年同期增長了 15%。我們業界領先的雲端運算成長仍然是我們強勁營收表現的驅動力，年增 27%。我們也繼續實現了出色的獲利能力，我們的營業利潤率增加了 170 個基點，本季末達到 30.3%，這標誌著我們繼續實現獲利成長的重要里程碑。本季我們的每股盈餘遠超預期上限，達到 2.58 美元，較去年同期成長 27%。在完成了出色的第一季執行後，我們再次展示了卓越的現金流創造能力，本季營運現金總額達到創紀錄的 2.54 億美元，年成長 30%。

Our continued strong performance over the past several years as well as in the first quarter are attributed to our unmatched platform strategy. Building a best-in-class platform that is as comprehensive as CXone demands years of focused effort and massive investments. It cannot be done overnight or mimicked by stitching together siloed and disconnected point solutions. This is even more pronounced in CX because it is a market that is highly specialized and that the barrier of entry is nearly insurmountable.

我們過去幾年以及第一季持續強勁的表現歸功於我們無與倫比的平台策略。建立像 CXone 這樣全面的一流平台需要多年的專注努力和大量投資。它不可能在一夜之間完成，也不可能透過將孤立和不連貫的點解決方案拼湊在一起來模仿。這在 CX 中更為明顯，因為它是一個高度專業化的市場，進入障礙幾乎無法克服。

Anticipating the future trajectory of the CX market, our proven strategy and meticulously architecting CXone from day one to excel as the premier CX platform combined with unwavering, consistent execution is now driving our market leadership with the ultimate trifecta: The industry's highest cloud win rate, trailblazing digital convergence and fully leveraging the tremendous CX AI opportunity.

預測 CX 市場的未來發展軌跡，我們從第一天起就經過驗證的策略和精心構建的 CXone，使其成為首屈一指的 CX 平台，再加上堅定不移、始終如一的執行力，現在正以最終的三重奏推動我們的市場領導地位：業界最高的雲中標率、開拓性的數位融合和充分利用巨大的 CX AI 機會。

Let me elaborate and provide a few examples on each. CXone's dominance as the most enterprise-ready cloud platform is fueling NICE's unmatched win rates in every evaluation or RFP. CXone stands out as the most complete, is exemplified for its ease and speed to migrate to, its best-in-class seamlessly integrated portfolio of solutions and boasts unparalleled scalability.

讓我詳細說明一下並提供幾個例子。 CXone 作為最適合企業的雲端平台的主導地位，推動了 NICE 在每次評估或 RFP 中都獲得無與倫比的成功率。 CXone 脫穎而出，成為最全面的解決方案，其特點是易於遷移且速度快，擁有一流的無縫整合解決方案組合，並具有無與倫比的可擴展性。

In Q1, we once again continued to win the enterprise market as evidenced by the volume of portfolio deals indicating a rising trend of enterprises choosing CXone as their future cloud platform over their legacy on-premise or disparate cloud point solutions. For example, in a 7-digit deal, one of the world's largest health care companies is continuing to move more of its point solutions due to the scalability of CXone further displacing multiple incumbent legacy vendors. In another deal that showcases the completeness of CXone, a large pharmacy outsourcer turned to NICE to simplify its CX and deliver to its customers a better experience offered by a unified platform. In the process, they eliminated point solution providers. A large retail supply company was also looking to unify their tech stack because their existing disjointed infrastructure was breaking down. In these deals, the customer selected CXone over the competition due to its proven ease of migration as provided by multiple references.

在第一季度，我們再次繼續贏得企業市場，投資組合交易量表明，企業選擇 CXone 作為其未來雲端平台，而不是傳統的內部部署或分散的雲端解決方案的趨勢日益明顯。例如，在一筆 7 位數的交易中，世界上最大的醫療保健公司之一正在繼續轉移更多的點解決方案，因為 CXone 的可擴展性進一步取代了多個現有的傳統供應商。在另一筆展示 CXone 完整性的交易中，一家大型藥局外包商向 NICE 尋求簡化其 CX 並透過統一平台為其客戶提供更好的體驗。在此過程中，他們淘汰了點解決方案提供者。一家大型零售供應公司也希望統一其技術堆疊，因為他們現有的脫節基礎設施正在崩潰。在這些交易中，客戶之所以選擇 CXone 而不是競爭對手，是因為多個參考資料證明了其易於遷移。

For nearly 3 decades, there was a clear separation in the CX space between voice solution providers and digital interaction providers. Conversely, CXone was built as the first and only customer-centric platform natively converging all touch points and all interactions, triggering a rapid paradigm shift in the market over the past couple of years. This shift is now removing the lines between these silo sub-categories resulting in enterprises consolidating their legacy digital CX into CXone. Our digital convergence power is evidenced by a staggering 8 out of every 10 new enterprise customers selecting CXone over the last two years to manage all the customer interactions, including multiple digital touch points and by the exceptional fivefold growth in the volume of digital interactions managed by CXone.

近 30 年來，CX 領域的語音解決方案供應商和數位互動提供者之間存在著明顯的分野。相反，CXone 是第一個也是唯一一個以客戶為中心的平台，它原生地融合了所有接觸點和所有交互，在過去幾年中引發了市場快速的範式轉移。這種轉變正在消除這些孤立子類別之間的界限，從而使企業將其傳統的數位 CX 整合到 CXone 中。我們的數位融合能力得到了證實，過去兩年中，每 10 個新企業客戶中就有 8 個選擇 CXone 來管理所有客戶互動（包括多個數位接觸點），並且 CXone 管理的數位互動量增加了 5 倍。

In Q1, we signed a 7-digit deal with a large state credit union, which is a great example of the digital convergence CXone is driving. This existing customer began its journey by migrating from a legacy incumbent into CXone and is now leveraging the platform to consolidate several of its siloed digital point solutions into CXone. In another 7-digit deal, a well-known consumer loan company is consolidating its CX and forging their digital strategy on CXone through the adoption of our digital and AI portfolio to rely increasingly on self-service to help improve customer experience.

在第一季度，我們與一家大型州立信用合作社簽署了一份 7 位數的協議，這是 CXone 推動數位整合的一個很好的例子。該現有客戶從傳統系統遷移到 CXone 開始其旅程，現在正在利用該平台將其多個孤立的數位點解決方案整合到 CXone 中。在另一筆 7 位數的交易中，一家知名的消費貸款公司正在透過採用我們的數位和人工智慧產品組合來鞏固其 CX，並在 CXone 上製定其數位策略，以越來越多地依賴自助服務來幫助改善客戶體驗。

While using AI and CX is undoubtfully revolutionary, its impact is quite different than commonly held perceptions. Everything considered simple in CX such as checking your account balance, password resets, returns and refunds as well as thousands of other services and inquiries are already fully automated. Today's 15 million CX agents around the globe are dealing with the most complex and unconventional service scenarios, almost all of which are non-repetitive tasks. There is a heightened understanding among enterprises that the next level of CX automation can only be achieved by a highly specialized AI platform. This is the exact reason why CXone with its unparalleled extensive repository of crucial data, knowledge and interactions is the platform of choice for a growing number of small and large enterprises.

雖然使用 AI 和 CX 無疑是革命性的，但其影響與普遍的看法截然不同。 CX 中所有簡單的事情，例如檢查您的帳戶餘額、重設密碼、退貨和退款以及數千種其他服務和查詢，都已經完全自動化。當今全球 1500 萬名 CX 代理正在處理最複雜、最不尋常的服務場景，幾乎所有這些場景都是非重複性任務。企業越來越認識到，只有透過高度專業化的 AI 平台才能實現更高水準的 CX 自動化。這正是 CXone 憑藉其無與倫比的關鍵數據、知識和互動的廣泛儲存庫成為越來越多的大中型企業首選平台的原因。

Accordingly, we saw a remarkable 200% year-over-year surge in the number of Enlighten AI deals in Q1. We are seeing numerous examples of how the adoption of even just one use case of AI increases the customer ARPU by 40% or more, demonstrating the tremendous monetization potential as we further expand our AI leadership with both existing and new customers. Moreover, in the first quarter, every CX deal above $1 million ACV included AI.

因此，我們看到第一季 Enlighten AI 交易數量年增了 200%。我們看到無數的例子表明，即使只採用一個 AI 用例，也能使客戶的 ARPU 提高 40% 或更多，這表明，隨著我們在現有客戶和新客戶中進一步擴大 AI 領導地位，其具有巨大的盈利潛力。此外，第一季度，每筆超過 100 萬美元 ACV 的 CX 交易都包含 AI。

For example, in a 7-digit deal, a large agriculture manufacturing company is moving away from its disparate set of point solutions to CXone to unify its technology stack and in the process developing a CX AI strategy as evidenced by the purchase of a portfolio of our AI solutions, including Enlighten Autopilot. A similar impetus was behind a 7-digit deal with a large Canadian telecommunications company, a deal in which we won against several competitors and which the breadth and depth of CXone AI made NICE the obvious choice. We also won a 7-digit deal with a very large U.K.-based bank, which selected CXone first and foremost, as the cornerstone for their CX AI strategy, and we see significant expansion opportunities. In this deal, we replaced a long-standing incumbent AI pure-play point solution provider.

例如，在一筆 7 位數的交易中，一家大型農業製造公司正在從其分散的點解決方案轉向 CXone，以統一其技術堆棧，並在此過程中製定 CX AI 戰略，其購買我們的 AI 解決方案組合（包括 Enlighten Autopilot）就是明證。類似的動力也體現在與一家大型加拿大電信公司達成的 7 位數交易中，我們擊敗了多家競爭對手，而 CXone AI 的廣度和深度使 NICE 成為顯而易見的選擇。我們還與一家英國大型銀行贏得了 7 位數的交易，該銀行首先選擇 CXone 作為其 CX AI 策略的基石，我們看到了巨大的擴張機會。在這筆交易中，我們取代了一家長期存在的 AI 純點解決方案提供商。

AI innovation is flourishing on CXone as evidenced by a rapidly expanding Enlighten AI portfolio including Copilot for agents and supervisors, Autopilot, AutoSummary, Actions, XO and others, in addition to the thousands of CXone AI models. The speed of AI innovation on CXone is allowing us to deliver capabilities at a record pace. A good example is the recently released Enlighten XM, which went from inception to general availability in 3 months. Moreover, the innovation to customer adoption curve is the shortest we've ever seen. As an example, we introduced Enlighten Copilot less than a year ago at Interactions 2023. And in just a few months, we signed dozens of new and existing enterprise customers who are already using it today.

人工智慧創新在 CXone 上蓬勃發展，這從快速擴展的 Enlighten AI 產品組合中可見一斑，除了數千個 CXone AI 模型外，還包括面向代理商和主管的 Copilot、Autopilot、AutoSummary、Actions、XO 等。 CXone 上的 AI 創新速度使我們能夠以創紀錄的速度交付功能。一個很好的例子就是最近發布的 Enlighten XM，它從構思到全面上市只花了 3 個月的時間。此外，從創新到客戶採用的曲線是我們所見過的最短的。例如，我們在不到一年前的 Interactions 2023 上推出了 Enlighten Copilot。在短短幾個月內，我們就簽約了數十家新的和現有的企業客戶，他們現在已經在使用它。

In summary, Q1 was marked by significant financial achievements, multiple large customer wins and rapid innovation, all of which were sourced from the platform power of CXone. Our years of massive investments, building CXone as the leading platform in the CX market continues to drive our success for 2024 and beyond. We are operating in the market that is still nascent in the areas of cloud, digital and AI. Given that these areas still hold considerable growth potential and coupled with the power of the CXone platform, we see significant long-term opportunities for sustained growth and profitability.

總而言之，第一季取得了顯著的財務成就、贏得了多個大客戶並實現了快速創新，所有這些都源自於 CXone 的平台力量。我們多年來的大量投資，將 CXone 打造為 CX 市場的領先平台，將繼續推動我們在 2024 年及以後的成功。我們在雲端運算、數位和人工智慧領域仍處於新興階段的市場中運作。鑑於這些領域仍然具有相當大的成長潛力，再加上 CXone 平台的強大功能，我們看到了持續成長和獲利的巨大長期機會。

Before I finish, I would like to share that we are very excited for our annual user conference, the largest in the CX industry taking place in Las Vegas, which is only a few weeks away. It is a perfect opportunity for all of us indeed to witness the platform power of CXone from our own experts as well as from an impressive list of leading enterprises. Our agenda features marquee customers that adopted CXone as they migrated to the cloud, converged all CX assets and are already seeing the benefits of NICE CX AI, including Sony, Hunter Douglas, the Standard, Henry Schein, Hyatt, Fifth Third Bank, LexisNexis, Hyundai Capital, Consumer Cellular, realtor.com, KeyBank, Banco do Brasil, United Way, Google, Concentrix, Chewy, PayPal and many others.

在結束之前，我想分享一下，我們對我們的年度用戶大會感到非常興奮，這是 CX 行業最大的年度用戶大會，將於幾週後在拉斯維加斯舉行。對於我們所有人來說，這確實是一個絕佳的機會，可以從我們自己的專家以及令人印象深刻的領先企業名單中見證 CXone 的平台力量。我們的議程重點介紹了在遷移到雲端時採用 CXone、融合所有 CX 資產並已看到 NICE CX AI 優勢的知名客戶，其中包括索尼、亨特道格拉斯、標準集團、亨利施恩、凱悅、五三銀行、LexisNexis、現代資本、Consumer Cellular、realtor.com、Keytrix、巴西銀行、聯合、Paltrix、Concen、聯合之路。

I would like to take this opportunity and invite all of you to our Annual Investor Day on June 11, which is taking place in conjunction with Interactions. We look forward to seeing you there. I will now turn the call over to Beth.

我想藉此機會邀請大家參加我們 6 月 11 日與 Interactions 共同舉辦的年度投資者日活動。我們期待在那裡見到您。現在我將把電話轉給貝絲。

Thank you, Barak. At NICE, we stand out as an industry leader that repeatedly demonstrates sustained balanced growth. Our strong start to 2024 displays our continued success with exceptional Q1 results in all key financial measures: revenue growth, increasing profitability and healthy cash flow generation. Total revenue was a record $650 million, up 15% year-over-year. Non-GAAP EPS of $2.58 exceeded the high end of our guidance range, and we have generated more than $620 million of operating cash over the last 12 months.

謝謝你，巴拉克。在 NICE，我們作為產業領導者脫穎而出，不斷展現出持續均衡的成長。我們 2024 年的強勁開局表明我們繼續取得成功，第一季所有關鍵財務指標均取得了優異的業績：收入成長、獲利能力提高和健康的現金流產生。總收入達到創紀錄的 6.5 億美元，年增 15%。非公認會計準則每股收益 2.58 美元超出了我們預期範圍的上限，並且我們在過去 12 個月中產生了超過 6.2 億美元的營運現金。

Cloud revenue, which now represents a record 71% of our total revenue compared to 64% last year, increased 27% year-over-year, in line with expectations to a record $468 million. The growth was driven by the ongoing strength of our organic cloud business as well as the inclusion of LiveVox, a leader in outbound engagement. This new addition to CXone further enhances the breadth of our platform, which particularly attracts large enterprises and is consistent with the trends we are seeing where customers are moving to NICE to eliminate siloed niche vendors and converge on CXone for all their complex CX specific needs.

雲端運算收入目前占我們總營收的 71%，高於去年的 64%，年增 27%，達到創紀錄的 4.68 億美元，符合預期。這一成長得益於我們有機雲端業務的持續強勁成長以及外向型互動領域領導者 LiveVox 的加入。 CXone 的這項新功能進一步增強了我們平台的廣度，這尤其吸引了大型企業，並且與我們所看到的趨勢一致，即客戶轉向 NICE 以消除孤立的利基供應商並集中在 CXone 上以滿足他們所有複雜的 CX 特定需求。

Our existing installed base continues to migrate to the cloud, which is one of the drivers of our cloud revenue growth. As expected, this migration results in a shift from maintenance revenue, which is included in our services revenue to cloud revenue. In this transition, we generally see an uplift ranging from 2 to 10x in a customer's ARR.

我們現有的安裝基礎繼續遷移到雲端，這是我們雲端收入成長的驅動力之一。正如預期的那樣，此次遷移導致維護收入（包含在我們的服務收入中）轉向雲端收入。在這個轉變過程中，我們通常會看到客戶的 ARR 提升 2 到 10 倍。

Accordingly, services revenue was $149 million, represented 23% of total revenue and decreased 7% year-over-year. Product revenue from on-premise sales, which represented 6% of total revenue in the quarter compared to 8% of total revenue last year was reduced, however, it exceeded our expectations, resulting mostly from several customers electing to purchase some of our on-premise offerings.

因此，服務收入為 1.49 億美元，佔總收入的 23%，年減 7%。來自內部銷售的產品收入佔本季總收入的 6%，而去年比例為 8%，雖然有所減少，但超出了我們的預期，這主要是因為一些客戶選擇購買我們的部分內部產品。

With the ongoing expansion of cloud business across both our segments, our recurring revenue further increased to 88% of total revenue in the first quarter compared to 85% last year. Recurring revenue is comprised primarily of a combination of cloud revenue and maintenance revenue, which is a component in our services revenue.

隨著我們兩個部門雲端業務的不斷擴張，我們的經常性收入在第一季進一步增加到總收入的 88%，而去年同期為 85%。經常性收入主要由雲端收入和維護收入組成，這是我們服務收入的一部分。

From a geographic breakdown, the Americas region, which represented 85% of total revenue in Q1 grew 18% year-over-year. The Americas region has continued to excel primarily from the success of CXone sales in the region. Outside of the Americas, we continue to see an accelerated shift from selling on-premise solutions to our cloud platforms. This transition to the cloud masked the underlying strength of the cloud growth we are experiencing in our international regions.

從地理分佈來看，美洲地區佔第一季總營收的 85%，年增 18%。美洲地區繼續表現出色，這主要得益於 CXone 在該地區的銷售成功。在美洲以外的地區，我們繼續看到從銷售內部解決方案到銷售雲端平台的加速轉變。這種向雲端的轉變掩蓋了我們在國際地區所經歷的雲端成長的潛在實力。

The EMEA region, which represented 10% of our total revenue, increased 7% year-over-year. The APAC region, which represented 5% of total revenue, decreased slightly year-over-year. The year-over-year changes for both our international regions resulted from healthy growth in cloud revenue, which offset a decline in on-premise related revenue. The foreign exchange headwinds in APAC and tailwinds in EMEA offset each other such that the net currency exchange impact on total revenue was negligible.

歐洲、中東和非洲地區占我們總營收的 10%，年增 7%。亞太地區佔總收入的 5%，年比略有下降。我們兩個國際地區的年比變化源於雲端收入的健康成長，抵消了內部相關收入的下降。亞太地區的外匯逆風和歐洲、中東和非洲地區的順風相互抵消，因此淨貨幣兌換對總收入的影響可以忽略不計。

Both our business segments started the year on a high note, Customer Engagement revenues, which represented 84% of our total revenue in Q1 were a record $551 million, a 17% increase. CXone, the most comprehensive enterprise-grade CX cloud platform is the growth driver in customer engagement, increasingly led by the growing contribution from our digital and AI offerings. Revenues from Financial Crime and Compliance, which represented 16% of our total revenue in Q1 and totaled a record $108 million, increased 8% year-over-year, driven by the increase in cloud revenue and strong on-premise product contribution.

我們的兩個業務部門今年都取得了良好的開局，客戶參與收入佔第一季總收入的 84%，達到創紀錄的 5.51 億美元，成長了 17%。 CXone 是最全面的企業級 CX 雲端平台，是客戶參與度的成長動力，而我們的數位和 AI 產品不斷增長的貢獻則日益引領著這一增長。金融犯罪與合規業務的收入占我們第一季總收入的 16%，總額達到創紀錄的 1.08 億美元，年增 8%，這得益於雲端收入的成長和強勁的內部產品貢獻。

From the close of the LiveVox acquisition in late December last year, our teams have been laser-focused on our planned integration activities. This purposeful attention resulted in an immediate positive healthy contribution to our profitability from the start of 2024.

自去年 12 月底完成對 LiveVox 的收購以來，我們的團隊一直專注於我們計劃的整合活動。這種有目的的關注從 2024 年初開始就對我們的盈利能力產生了直接的積極健康貢獻。

Our cloud gross margin totaled 69.8% in Q1, a slight decrease compared to last year as we continue to invest in global expansion of our cloud platforms. Thanks to our scalable cloud architecture, we continue to expect to reach our target of 75% cloud gross margin in the next 3 to 5 years as a result of the increasing enterprise cloud adoption, which is correlated with an increase in the attach rates of our digital and AI solutions.

由於我們繼續投資於雲端平台的全球擴張，我們的雲毛利率在第一季總計為 69.8%，與去年相比略有下降。由於我們可擴展的雲端架構，隨著企業雲端採用率的提高，我們預計未來 3 到 5 年內將達到 75% 的雲端毛利率目標，這與我們的數位和人工智慧解決方案的附加率的提高相關。

In Q1, operating income increased 22% year-over-year to an all-time high of $200 million, and our healthy operating margin increased 170 basis points to 30.3% compared to 28.6% last year.

第一季度，營業收入年增 22%，達到歷史最高水準 2 億美元，我們的健康營業利潤率從去年的 28.6% 增長 170 個基點至 30.3%。

The strong profitability was driven by our continued best-in-class growth of cloud revenue, coupled with cost synergies from our recent acquisitions and a strong muscle in driving operating leverage. Earnings per share for the first quarter far exceeded our expectations, totaling $2.58, a 27% increase compared to Q1 last year. Cash flow from operations in Q1 was a record $254 million, an increase of 30% compared to last year. Our last 12 months operating cash flow totaled $621 million, yielding an exceptional 25.2% cash flow margin. The strength of our cash flow generation and outstanding balance sheet enables us to capitalize on M&A opportunities like our recent acquisition of LiveVox and to execute on our $300 million share buyback program to return capital to our shareholders.

強勁的獲利能力得益於我們雲端收入持續的最佳成長，加上我們最近的收購帶來的成本協同效應以及強大的營運槓桿。第一季每股收益遠超我們的預期，達到 2.58 美元，較去年第一季成長 27%。第一季經營現金流創紀錄地達到 2.54 億美元，比去年同期成長 30%。我們過去 12 個月的經營現金流總計 6.21 億美元，現金流利潤率高達 25.2%。我們強大的現金流量產生能力和未償資產負債表使我們能夠利用併購機會，例如我們最近收購 LiveVox，並執行 3 億美元的股票回購計劃，向股東返還資本。

In Q1, we repurchased shares totaling $42 million. We plan to complete our $300 million share buyback program by the end of this year. In Q1, we also used $87 million to pay the last portion of our 2017 convertible notes. In the last 2 quarters alone, we completed the acquisition of LiveVox, repaid the remaining principal on our 2017 convertible notes and repurchased a healthy number of shares. We made all these significant cash interactions while simultaneously generating our best-ever infusion of cash from operations and ultimately increasing our cash balance from last quarter. With total cash and investments at the end of March totaling $1.503 billion, our net cash and investments exceeded $1.045 billion.

第一季度，我們回購了總計 4,200 萬美元的股票。我們計劃在今年年底前完成 3 億美元的股票回購計畫。在第一季度，我們還使用了 8,700 萬美元來支付 2017 年可轉換票據的最後一部分。僅在過去兩個季度，我們就完成了 LiveVox 的收購，償還了 2017 年可轉換票據的剩餘本金，並回購了大量股票。我們進行了所有這些重要的現金互動，同時從營運中產生了有史以來最好的現金注入，並最終增加了上個季度的現金餘額。截至 3 月底，我們的現金和投資總額為 15.03 億美元，淨現金和投資超過 10.45 億美元。

In conclusion, our first quarter performance exhibited the continuous strong financial health of our business, driven by the growing demand for our CX AI offerings, successful integration of LiveVox and strategic execution of delivering consistent, profitable growth along with outstanding cash generation. We are pleased with our strong first quarter opening for the year. And looking forward, we expect to continue delivering on an industry-best financial performance throughout 2024.

總而言之，我們的第一季業績表明，我們的業務財務狀況持續強勁，這得益於我們對 CX AI 產品日益增長的需求、LiveVox 的成功整合以及實現持續盈利增長和出色現金創造的戰略執行。我們對今年第一季的強勁開局感到滿意。展望未來，我們預計在 2024 年將繼續實現業界最佳的財務表現。

Now I'll close with our total revenue and non-GAAP EPS guidance for the second quarter and full year 2024. For the second quarter of 2024, we expect total revenue to be in the range of $657 million to $667 million, representing 14% year-over-year growth at the midpoint. We expect the second quarter 2024 fully diluted earnings per share to be in a range of $2.53 to $2.63, representing 21% year-over-year growth at the midpoint.

現在，我將以我們對 2024 年第二季和全年的總收入和非 GAAP EPS 預測作為結束。對於 2024 年第二季度，我們預計總營收將在 6.57 億美元至 6.67 億美元之間，中位數年增 14%。我們預計 2024 年第二季每股完全攤薄收益將在 2.53 美元至 2.63 美元之間，中間值年增 21%。

For the full year 2024, we are maintaining our previous revenue guidance and raising our EPS guidance. We reiterate our full year 2024 total revenue, which is expected to be in a range of $2.715 billion to $2.735 billion, an increase of 15% at the midpoint. We now expect full year 2024 fully diluted earnings per share to increase to a range of $10.53 to $10.73, which represents an increase of 21% at the midpoint.

對於 2024 年全年，我們將維持先前的營收預期並提高每股盈餘預期。我們重申 2024 年全年總收入預計在 27.15 億美元至 27.35 億美元之間，中位數成長 15%。我們現在預計 2024 年全年每股完全攤薄收益將增至 10.53 美元至 10.73 美元之間，中間值增幅為 21%。

I will now turn the call over to the operator for questions. Operator?

我現在將電話轉給接線員以回答問題。操作員？

(Operator Instructions) Our first question comes from the line of Samad Samana with Jefferies.

（操作員指示）我們的第一個問題來自 Jefferies 的 Samad Samana。

Barak, sad to hear that you will be leaving us in a little bit less than a year, but maybe let's start there. I know the press release gave some details that it was a planned transition. But can you give us any sense of how long that you've been considering this? And maybe why now? And then kind of in conjunction with that, what characteristics are you looking for in the next CEO? Is it somebody who's scaled a cloud software business? Is it a different type of skill set? What would the ideal future CEO look like?

巴拉克，很遺憾聽到你將在不到一年的時間內離開我們，但也許我們可以從那時開始。我知道新聞稿中給出了一些細節，表明這是一次有計劃的過渡。但是您能告訴我們您考慮這個問題有多長了嗎？為什麼是現在？那麼，與此結合，您希望下一任 CEO 具備哪些特質？是擴大雲端軟體業務規模的人嗎？這是不同類型的技能嗎？理想的未來 CEO 是什麼樣的？

Operator, can you hear the management team?

接線員，您能聽到管理團隊的聲音嗎？

I'm not hearing anything right now. One moment while we check for technical difficulties.

我現在什麼也沒聽到。請稍等，我們正在檢查是否有技術問題。

Sorry, ladies and gentlemen, we're now back.

抱歉，女士們，先生們，我們回來了。

Samad, I apologize, in the middle of your question, the line drop on our end. Can you please repeat the last part of your question?

薩馬德，很抱歉，在您提問的過程中，我們這邊的線斷了。您能重複問題的最後一部分嗎？

Yes. No problem. So I was basically asking how long you've been contemplating the transition? And then just asking the question about looking forward, are you looking for in the next CEO, somebody who's scaled a software business to certain levels? Are you looking for somebody with a different type of skill set, just as you envision what the next CEO of NICE should look like, what are the characteristics that the company is looking for?

是的。沒問題。所以我基本上想問的是，您考慮轉變多久了？然後問一下展望未來，您是否希望下一任 CEO 能夠將軟體業務擴展到一定程度？您是否正在尋找具有不同類型技能的人，正如您設想的 NICE 下一任執行長應該是什麼樣的，公司正在尋找具有哪些特徵的人？

Thanks, Samad. I appreciate the question. Again, I apologize, everyone, the line on our end dropped. So as you read in the press release, we always believe in full transparency, and this is exactly what you saw today. We're very transparent about how we are conducting this transition in a very organized way with no rush. And I believe that after 10 years as a CEO and 25 years at the company, the right way for me to transition is doing it in such a way from a very strong position of the company, NICE has an outstanding foundation both operationally, financially, a leadership position in the market, business momentum.

謝謝，薩馬德。我很感謝你提出這個問題。再次向各位表示歉意，我們這邊的線路斷了。正如您在新聞稿中看到的，我們始終相信完全透明，而這正是您今天所看到的。我們非常透明地說明我們如何以有組織的方式、不慌不忙地進行這項轉變。我相信，在擔任執行長 10 年並在公司工作 25 年後，我正確的過渡方式是從公司非常強大的地位出發，NICE 在營運、財務、市場領導地位和業務發展勢頭方面都擁有出色的基礎。

And my plan is to stay as the CEO until the end of the year and use this time together with the Board to conduct a proper search for my successor, both internally and externally. And to -- and then by the way, to stay engaged with the company for at least part or a big part of 2025 and consult on anything that is needed on the strategic aspect and support the company. I love NICE. This is my home, and I'll continue to support the company, and I'm not rushing to any other place at the moment.

我的計劃是繼續擔任執行長直到今年年底，並利用這段時間與董事會一起在內部和外部適當尋找我的繼任者。順便說一下，至少在 2025 年的一部分時間或大部分時間內與公司保持聯繫，並就策略方面所需的任何事項提供諮詢並為公司提供支援。我愛 NICE。這裡是我的家，我會繼續支持公司，目前我也不會急著去其他地方。

In terms of who are we looking for? We're looking for the right person to take the company to the next level, someone that has experience in the scale of NICE and enterprise software. We believe that we can have a very good list of candidates, both internally and externally and eventually the Board and I'll support them will make the decision to make sure that, there is the right fit, both in terms of the ability to execute moving forward, but not less important, we'll continue the great culture we have with NICE and supporting and working together with the 8,500 NICERS around the globe.

就我們在尋找誰而言？我們正在尋找合適的人才來帶領公司更上一層樓，該人才應具有 NICE 規模和企業軟體方面的經驗。我們相信，我們可以有一份非常優秀的候選人名單，包括內部和外部，最終董事會和我將支持他們做出決定，以確保候選人合適，不僅在執行能力方面，而且同樣重要的是，我們將繼續與 NICE 保持良好的文化，並支持和與全球 8,500 名 NICERS 合作。

Appreciate that. And then, Beth, maybe just a follow-up for you. If I think about the first quarter, the cloud revenue was a little bit better than expected. Can you just remind us, are we still tracking to that 18% organic cloud revenue growth for the year? And any update on maybe whether that's tracking ahead of plan and how we should think about organic cloud revenue for the rest of 2024?

非常感謝。然後，貝絲，也許這只是對你一個後續的問題。如果我回顧一下第一季度，雲端收入比預期好一點。您能否提醒我們，我們是否仍在追蹤今年 18% 的有機雲端營收成長？有沒有最新消息，這是否提前完成了計劃，以及我們應該如何看待 2024 年剩餘時間的有機雲收入？

Yes. Thanks for the question, Samad. So yes, we're highly pleased with the start of the year and the cloud growth that we're seeing. As we look forward throughout the course of this year, our cloud revenue expectations haven't changed.

是的。謝謝你的提問，Samad。所以是的，我們對今年的開始和我們所看到的雲端運算成長感到非常高興。展望今年，我們的雲端收入預期沒有改變。

Our next question comes from the line of Meta Marshall with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Meta Marshall。

Maybe first question for me. Just any commentary on LiveVox integration and just how that's proceeding both from how you guys are seeing kind of revenue opportunities as well as opportunities to kind of optimize costs?

這也許對我來說是第一個問題。您能否對 LiveVox 整合以及它的進展有何評論？從你們如何看待收入機會以及優化成本的機會來看？

And then just as a second question, just in terms of any commentary around kind of macro understanding it hasn't had much impact to the portfolio, but just with smaller customers. I think we've seen a pickup in headwinds this quarter if you've seen anything worth noting?

然後作為第二個問題，就宏觀理解的任何評論而言，它對投資組合沒有太大影響，只是對較小的客戶有影響。我認為本季我們已經看到了逆風的加劇，您是否看到了什麼值得注意的事情？

Thanks for the question, Meta. And I think I'll start. I think, first of all, we'd say we're extremely proud that we have started off really on a great note this year with the integration of LiveVox. It's going seamlessly right according to our plans. And you can see that in our financial results. I think the overall financial results are very consistent with our expectations. And you can see that we talked about the synergy opportunity last year in advance of the close of the deal, and we've delivered on that right out of the gate this year. So that's already reaping the benefits from the synergies we've been able to realize.

謝謝你的提問，Meta。我想我會開始的。我認為，首先，我們要說的是，我們非常自豪，今年透過與 LiveVox 的整合，我們取得了一個很好的開端。一切都按照我們的計劃順利進行。您可以從我們的財務結果中看到這一點。我認為整體財務結果與我們的預期非常一致。您可以看到，我們去年在交易完成之前就談到了協同效應的機會，而今年我們一開始就實現了這一目標。因此，我們已經從所實現的協同效應中獲益了。

And on the revenue side, we knew that coming into this year, there would be some initial overlap of some of the customers and that really the revenue opportunity is really looking forward. We are integrating the sales organization and looking ahead to 2025 and beyond and that's the point when we really expect to kind of put more gas on the pedals with respect to driving the top line.

在收入方面，我們知道，進入今年，部分客戶將出現初步重疊，而且收入機會確實值得期待。我們正在整合銷售組織並展望 2025 年及以後，那時我們才真正期望加大力度推動營收成長。

But as I said, we're really pleased. The execution is going as exactly as we planned, and we are really happy to see the results of that in our first quarter results.

但正如我所說，我們真的很高興。執行正如我們計劃的那樣進行，我們很高興看到第一季的業績。

And I'll take the second question just to follow up. Just to add first on LiveVox, besides the financials, obviously, on the product side, we see great excitement from customers, both NICE's customers, very happy with the opportunity to adopt the LiveVox solutions and vice versa and the pipeline -- the joint pipeline is looking extremely promising.

我將回答第二個問題，只是為了跟進。首先補充一下 LiveVox，除了財務方面，顯然在產品方面，我們看到客戶非常興奮，無論是 NICE 的客戶還是客戶，都非常高興有機會採用 LiveVox 解決方案，反之亦然，而且聯合管道看起來非常有前景。

About the second question, about macro, I don't have any kind of breaking news here to share. I think we see the exact same trends that we've seen before in all segments of the market. We believe, as I said in my earlier remarks, that on all of those aspects, winning the cloud, expanding into digital and of course, the big opportunity in AI. This is the core of investment -- the center of investment to the large enterprises, and our prime focus, obviously, the big win is all of those very large enterprises that are expanding and standardizing on us.

關於第二個問題，關於宏觀，我這裡沒有任何突發新聞可以分享。我認為我們在市場的所有領域都看到了與我們以前見過的完全相同的趨勢。正如我在先前的評論中所說，我們相信，在所有這些方面，贏得雲端運算、擴展到數位領域，當然還有人工智慧領域的巨大機會。這是投資的核心——對大型企業的投資中心，我們的首要關注點，顯然，最大的勝利是所有那些正在擴張和標準化的大型企業。

Our next question comes from the line of Tyler Radke with Citi.

我們的下一個問題來自花旗銀行的 Tyler Radke。

Yes. And Barak, congratulations on 25 years. I guess I wanted to follow up on Samad's question. I mean, obviously, 25 years is an incredible run, but arguably the company is at one of the more interesting times in the market here with generative AI taking off. So I guess I'm curious, personally, like what are you hoping to get out of the next 3 to 5 years. What are you going to do next in probably what was a difficult decision, but clearly, there's a lot of opportunity ahead of the company. So I'm just curious personally what you're looking to do next?

是的。巴拉克，恭喜你 25 歲生日。我想我想繼續回答薩馬德的問題。我的意思是，顯然，25 年是一個令人難以置信的歷程，但可以說，隨著生成式人工智慧的興起，該公司正處於市場上最有趣的時期之一。所以我想我很好奇，就我個人而言，您希望在未來 3 到 5 年內實現什麼目標。您下一步要做什麼？這可能是一個艱難的決定，但顯然，公司面前有很多機會。所以我個人很好奇您下一步想做什麼？

Great question. And needless to say, you described it correctly. It was not an easy decision. It's -- I'm still in a very mixed emotion because I do believe the opportunity for NICE is tremendous. There aren't too many companies with such a great position, an exciting market, amazing team, leadership position. It doesn't get much better than that. Having said that, being 10 years as a CEO, I personally believe that at some point, the leader after 10 years needs to transition and hand off the torch to someone else. And you do it in a way that is not a sudden and not in 5 minutes, but in a very organized transition and make sure that there is a strong continuity. So there is never a good time for it, but I've decided to do it now in this position. What exactly I'm going to do next, that's not my prime focus. Right now, I'm 100% focused on executing our 2024 plan, finding the successor and then continue supporting the transition. And what I'm going to do next is something that I'll have to think about it. I'm at 49, I'm very bad at golf so I'll probably have to find something else to do.

好問題。不用說，你的描述是正確的。這不是一個容易的決定。我的心情仍然非常複雜，因為我確實相信 NICE 的機會是巨大的。擁有如此優越地位、如此令人興奮的市場、如此出色的團隊和領導地位的公司並不多。沒有比這更好的了。話雖如此，作為一名擔任了 10 年 CEO 的人，我個人認為，在某個時候，10 年後的領導者需要轉型並將火炬交給其他人。而且你做這件事的方式不是突然的，也不是在 5 分鐘內，而是以一種非常有組織的過渡，並確保具有很強的連續性。所以永遠沒有一個好時機，但我決定現在要以這個職位來做這件事。我下一步具體要做什麼，這不是我主要的關注。現在，我 100% 專注於執行我們的 2024 年計劃，尋找繼任者，然後繼續支持過渡。而我接下來要做什麼，還好好想。我已經 49 歲了，但打高爾夫球打得很糟糕，所以我可能不得不找點別的事情做。

All right. Well, hope you can get your golf score down. But a follow-up for Beth. So on the cloud guide, I appreciate the reiteration of that for the full year. But I guess, in the quarter, you talked about on-prem strength surprising you to the upside and the full year revenue target wasn't raised. So I guess, how should we square the lack of a raise on the full year revenue target with stronger on-prem mix in the quarter?

好的。好吧，希望你能降低你的高爾夫成績。但對 Beth 來說這是一個後續行動。因此，關於雲指南，我很欣賞全年對此的重申。但我想，在本季度，您談到了內部部署實力讓您感到驚訝，而全年收入目標並沒有提高。所以我想，我們應該如何平衡全年營收目標沒有提高與本季更強勁的內部部署組合之間的差距呢？

And if I look at the calculated organic growth in cloud this quarter, I think it was around 18.5% depending on the assumptions. So that doesn't leave a whole lot of room for slowing organic growth throughout the full year. So just help us understand your confidence in that 18% organic growth for the rest of the year.

如果我看一下本季雲端運算的有機成長率，我認為根據假設，成長率約為 18.5%。因此，全年有機成長放緩的空間並不大。因此，請幫助我們了解您對今年剩餘時間 18% 有機成長率的信心。

Yes. Thank you. So I think you asked a few different questions, well, I'll try to make sure I've addressed. Let's start with the full year. I think as we look at the full year revenue guidance, we're stepping out of the first quarter. And we have an expectation of $2.7 billion in total revenue this year. So it's a substantial amount of revenue. We continue to grow. And I think as we looked at the first quarter results, we had a $4 million beat coming in near the high end of our guidance. We said less than $4 million on such a large number of $2.7 billion really don't feel the need in the grand scheme of things that it's consequential to the overall number.

是的。謝謝。所以我認為你問了幾個不同的問題，好吧，我會盡力確保我已經回答了。讓我們從全年開始。我認為，當我們審視全年營收指引時，我們正走出第一季。我們預計今年的總收入為 27 億美元。所以這是一筆可觀的收入。我們繼續成長。我認為，當我們查看第一季的業績時，我們的業績超出預期 400 萬美元，接近預期的最高值。我們說，在 27 億美元這麼大的數字中，少於 400 萬美元確實沒有必要在宏觀層面上對總體數字產生影響。

And so that was kind of the decision we made. Let's hold still early in the year. As you said, I think we're really pleased that we've stepped into the year with a strong performance. And of course, that's our expectation as we look forward as well across all aspects of our business. And you can see in the cloud growth that we continue to really excel and really are a leader in our market.

這就是我們所做的決定。年初我們還是保持鎮定吧。正如您所說，我認為我們很高興能夠以強勁的表現邁入新的一年。當然，這也是我們對業務各方面的期望。您可以從雲端運算的成長中看到，我們繼續保持卓越表現，並真正成為市場領導者。

Our next question comes from the line of Siti Panigrahi with Mizuho Securities.

我們的下一個問題來自瑞穗證券的 Siti Panigrahi。

And Barak, congratulations for a remarkable career at NICE. So my question on the AI monetization. You guys talked about one example of how customer ARPU went up by 40% in monetization. So I'm wondering what kind of pricing model evolving? I know you guys started with agent and (inaudible) you were talking about usage best. So what kind of pricing model you're seeing? And do you think that will become most prevalent with this AI-powered contact center? And also, if you could talk about -- remind us how quickly this AI bookings can translate into revenue?

巴拉克，恭喜你在 NICE 取得了非凡的成就。我的問題是關於人工智慧貨幣化。你們討論了一個例子，說明客戶 ARPU 如何透過貨幣化提高 40%。所以我想知道什麼樣的定價模式正在演變？我知道你們從代理商開始，並且（聽不清楚）你們正在談論最佳用途。那麼您看到的是什麼樣的定價模式呢？您是否認為這種人工智慧聯絡中心將會變得最為普遍？另外，您能否談談－提醒我們這種 AI 預訂能多快轉化為收入？

Yes, thanks. I appreciate the question. I think you characterized it correctly, and I was trying to give, not just in this quarter, also in past quarters, indications and examples and anecdotes on how this thing is evolving. First, I'll say the speed of innovation, as I've mentioned, is just tremendous. I've never seen anything like that. How fast on the CXone platform because it has all data and knowledge. It's kind of the natural habitat for AI, how fast we can release capabilities and then how fast customers are adopting it, both existing and new.

是的，謝謝。我很感謝你提出這個問題。我認為你的描述是正確的，而且我試圖給出不僅是本季度，而且是過去幾個季度的跡象、例子和軼事，說明事情是如何發展的。首先，正如我所提到的，創新的速度是驚人的。我從來沒有見過這樣的事情。 CXone 平台速度有多快，因為它擁有所有數據和知識。這可以說是人工智慧的自然棲息地，我們可以多快發布功能，然後客戶（包括現有客戶和新客戶）可以多快採用它。

In terms of the monetization, most of the contact center industry historically because it was very much agent-based. Most of the pricing is per user. But you said that correctly. And today, we are monetizing on AI predominantly based on its volumes or interactions and less about users. So the right way to think about it is that if you have an organization that is adopting CXone with digital channels and with AI, there is a certain user base price for the agent, depending on which bundle or package that they buy and our is complete with a lot of capabilities, and we don't have cost of integrated solutions. It's all natively there.

就貨幣化而言，歷史上大多數的聯絡中心產業都是以代理為基礎。大部分定價是按用戶計算的。但您說得對。如今，我們透過人工智慧實現盈利主要基於其數量或交互，而不是基於用戶。因此，正確的思考方式是，如果您的組織採用具有數位管道和 AI 的 CXone，則代理商有一定的用戶基礎價格，具體取決於他們購買的捆綁包或套餐，並且我們的產品具有很多功能，而且我們沒有整合解決方案的成本。一切都原原本本存在。

And then the AI, as they start either to augment agents with the AI capabilities or any other elements of AI, usually, the monetization is per the number of interactions, which is -- which are expected, and we're seeing it to grow or continue to grow exponentially.

然後是人工智慧，當他們開始用人工智慧功能或人工智慧的任何其他元素來增強代理時，通常，貨幣化是根據互動次數進行的，這是預期的，我們看到它會成長或繼續呈指數級增長。

So that's how we envision it moving forward. That's how it looks so far. It opens up a tremendous opportunity because we're not talking just about converting agent capacity to AI, we're talking about and we're seeing the expansion of our business to channel and touch points that we never played in. So think about all the variety of touch points and organization have with AI, we are now taking over these areas that before that were not part of our business.

這就是我們對未來發展的想像。目前看來就是這樣。這開啟了一個巨大的機會，因為我們談論的不僅僅是將代理能力轉化為人工智慧，我們還在談論並且看到我們的業務擴展到我們從未涉及過的管道和接觸點。所以想想各種各樣的接觸點和組織都與人工智慧有關，我們現在正在接管這些以前不屬於我們業務的領域。

Now how fast it will impact into revenue. It will grow, and we will start at some point, maybe to provide more information about it, but it's becoming a more significant part of our booking at the moment.

現在它將以多快的速度影響收入。它會不斷發展，我們會在某個時候開始提供更多有關它的信息，但它目前正成為我們預訂中更重要的一部分。

That's great color. And Beth, very impressive profitability and cash flow. But my question is on the SMB segment. You cited about some weakness in that SMB segment last year. So has it been fairly stable in Q1? Or are you seeing any kind of incremental pressure on the small business side? And remind us what percentage is SMB for us?

顏色真棒。貝絲，獲利能力和現金流非常令人印象深刻。但我的問題是關於 SMB 部分的。您提到了去年中小企業領域存在的一些弱點。那麼第一季的情況是否相當穩定？或者您看到小型企業方面面臨任何形式的增量壓力？並提醒我們 SMB 對我們來說佔多大比例？

Yes, Siti. First of all, we don't actually segment the customer base. We've never broken down the segmentation of our revenue between the customer side. So we can say that, of course, enterprise customers are driving more and more of our revenue growth as we move up market and take additional market share. .

是的，西蒂。首先，我們其實並沒有細分客戶群。我們從來沒有在客戶方之間細分過收入。因此，我們可以說，隨著我們向高端市場邁進並獲得更多市場份額，企業客戶正在推動我們越來越多的收入成長。 。

With respect to the SMB customer base and some of the compression that we were seeing last year, I really mentioned last quarter that we had seen kind of a stabilization around that compression. We have seen it heavier throughout the course of 2023. And then, of course, towards the end of the year and coming into this year, we've seen that the compression really kind of stabilized. So now we see that we are at a kind of a business as usual, stabilization on the SMB side. And so as we've always had, we continue to add new business, both in that installed base as a large enterprise, adding new logos and selling more to existing customers as well.

關於中小企業客戶群和我們去年看到的一些壓縮，我在上個季度確實提到過，我們已經看到這種壓縮有所穩定。我們看到它在 2023 年全年都變得更加嚴重。然後，當然，到今年年底和進入今年，我們看到壓縮確實有點穩定了。所以現在我們看到，我們的業務一切如常，中小企業方面趨於穩定。因此，正如我們一直以來所做的那樣，我們繼續增加新業務，既在作為大型企業的安裝基礎上增加新標識，也向現有客戶銷售更多產品。

Our next question comes from the line of Pat Walravens with Citizens JMP.

我們的下一個問題來自 Citizens JMP 的 Pat Walravens。

Great. Congratulations on the quarter. And Barak, congratulations to you on your 25 years. I hope that David and the Board are able to find a successor, who is as good as fit for NICE today as you were over the last 10 years.

偉大的。恭喜本季。巴拉克，恭喜你 25 歲生日。我希望 David 和董事會能夠找到一位繼任者，他能夠像過去 10 年一樣適合今天的 NICE。

So Beth, my question is for you. Are you having any thoughts about retiring because with the CEO transition coming, I'm pretty sure all your investors would agree with me that it would be great to have continuity in the CFO role.

貝絲，我的問題是問你的。您是否有退休的想法，因為隨著執行長的過渡即將到來，我確信所有的投資者都會同意我的觀點，財務長職位的連續性會很好。

Pat, you're trying to age me here. I don't.

派特，你是想讓我變老吧。我不知道。

I'm not trying to age. We just want to keep you around.

我並不想變老。我們只是想讓你留在我們身邊。

No, no. Of course, we're all going to horribly miss, Barak, and we're a great team that works together. But no, I don't have any plans of any upcoming retirement. I enjoy working with Barak, but I enjoy working really with all the team here at NICE and love NICE the same way that we all do. So no change in plans for me.

不，不。當然，我們都會非常想念巴拉克，我們是一支團結合作的偉大團隊。但不，我沒有任何即將退休的計畫。我喜歡和巴拉克一起工作，但我更享受與 NICE 的所有團隊一起工作，並且像我們所有人一樣熱愛 NICE。所以我的計劃沒有改變。

Our next question comes from the line of Arjun Bhatia with William Blair.

我們的下一個問題來自 William Blair 的 Arjun Bhatia。

Barak, maybe one for you to start off with. When you think about where you're seeing bookings growth from Enlighten and on the AI side? How much of that is going to be focused more on existing customers that want to add on AI capabilities versus perhaps new customers that are making a replatforming decision and are saying, "hey, maybe this is the right time to really switch our contact center synergy and go deeper into AI now that we are going through this pretty significant rearchitect."

巴拉克，也許你可以從他開始。您認為 Enlighten 和 AI 方面的預訂量會成長嗎？其中有多少會更多地關注想要添加人工智慧功能的現有客戶，還是可能關注正在做出重新平台決策的新客戶，他們說，“嘿，也許現在是真正轉變我們的聯絡中心協同作用並深入人工智能的正確時機，因為我們正在經歷這個相當重要的架構重組。”

Great question. Thank you. So I would say, first of all, every conversation today, either because the customer asked to start this way or we initiated it starts with AI. The reason for that is that automation and the desire to have automation in the contact center is not new. We -- I've been here before, 25 years. And from day 1, it was all about automation. But all the things that were simple in the contact center, I believe, are already fully automated. I gave you example in my earlier remarks and automation up until AI kind of got stuck and now there is an opportunity with AI. But at the same time, our customers are very savvy and anyone that runs the large customer service organization understand the complexity of that business, and it's not easy to automate, and it's not just growing some LLM or GenAI into the mix and hoping for the best.

好問題。謝謝。所以我想說，首先，今天的每一次對話，無論是因為客戶要求以這種方式開始，還是我們發起的，都是從人工智慧開始的。原因在於，自動化以及聯絡中心實現自動化的願望並不是什麼新鮮事。我們──我以前來過這裡，25 年了。從第一天起，一切都與自動化有關。但我相信，聯絡中心裡所有簡單的事情都已經完全自動化了。我在之前的評論中給出了自動化的例子，直到人工智慧陷入困境，現在人工智慧帶來了機會。但同時，我們的客戶非常精明，任何經營大型客戶服務組織的人都了解該業務的複雜性，而且自動化並不容易，而不僅僅是將一些 LLM 或 GenAI 融入其中並希望獲得最好的結果。

They understand a variety of things like the issues of privacy, security, having the right data well integrated. And generally, they understand the notion that you need to have a certain highly specialized AI to work in this environment. So what we see these days a lot of customers that at the beginning, the hype of the past year, try to put something into the environment, either a very low return or got into kind of hit a wall and there they're coming to us because they understand that the power of the platform.

他們了解各種各樣的事情，例如隱私、安全、正確資料整合等問題。整體而言，他們明白，需要某種高度專業化的人工智慧才能在這種環境下運作。因此，我們現在看到的是，許多客戶在開始的時候，也就是過去一年的炒作中，試圖將一些東西投入到環境中，但回報要么很低，要么遇到了瓶頸，所以他們來找我們，因為他們了解平台的力量。

And the power of the platform goes to the fact that an employee -- any employee can find themselves and organize themselves even in somewhat of a messy environment. The messy environment is toxic for AI. And you have to have all the knowledge, the data interactions in a single place and CXone is the perfect environment for that. So that's what we see. And this is the reason for the -- I believe, for the fast adoption.

該平台的力量在於，即使在比較混亂的環境中，任何員工都可以找到自己並組織起來。混亂的環境對人工智慧來說是有害的。您必須將所有的知識和數據互動集中在一個地方，而 CXone 就是實現這一目標的完美環境。這就是我們所看到的。我相信，這就是其快速被採用的原因。

Having said that, there is also an understanding that it's not an overnight. There are different flavors in the journey of AI. They're in the phase of augmenting the agent, making them 10x better. And then there is the concept of who is the Copilot, whether it's the agent or the AI become the Copilot and exchange of knowledge between them.

話雖如此，但也有觀點認為，這並非一朝一夕就能實現的。 AI的旅程，有多種滋味。他們正處於增強代理的階段，希望讓代理商的效能提高 10 倍。然後還有誰是副駕駛的概念，無論是代理還是人工智慧都成為副駕駛，並在他們之間進行知識交換。

And then there are fully automation opportunities. And to manage that, you need a good partner and NICE has always been that partner, and that's what we see both with existing customers and new customers.

然後還有完全自動化的機會。為了實現這一點，您需要一個好的合作夥伴，而 NICE 一直都是這樣的合作夥伴，我們在現有客戶和新客戶身上都看到了這一點。

Very helpful. And then, Beth, one for you. Just when we're thinking of cloud growth, I know you're reiterating the 18% organic target. How should we think about how much your own on-prem to cloud migrations are driving cloud revenue growth for you? And when you look out throughout '24 is that -- should we expect that to increase given some of the dynamics that we've talked about with customers wanting to invest more in cloud and AI? And just give us a sense for how we should think about the shape of the contribution from your own on-prem migrations.

非常有幫助。然後，貝絲，給你一個。就在我們考慮雲端成長時，我知道您正在重申 18% 的有機目標。我們應該如何看待您自己的內部部署到雲端的遷移在多大程度上為您推動了雲端收入的成長？而當你展望整個 24 年時，我們會發現——考慮到我們談到的一些客戶希望在雲端運算和人工智慧方面投入更多資金的動態，我們是否應該預期這一數字會增加？請讓我們了解我們應該如何看待您自己的內部遷移所做的貢獻。

Yes, sure. In terms of our existing installed base, I would say we see a relatively steady state there that each and every quarter, we have a certain number of our customers, legacy customers that are continuing to move on to our cloud platforms and particularly, of course, CXone. It's something that we continue to expect to see. And as I said, the indications for this year look like it's generally business as usual. But I think with the introduction of AI and our digital offerings, we're seeing a pipeline that is adding incremental deal value and that will also be a reason for customers to probably look to migrate sooner than later. So as we look into the following quarters and year, I do think there will come a time that we'll start to see some additional acceleration of the existing installed base as those very large enterprise customers start to plan their moves.

是的，當然。就我們現有的安裝基礎而言，我想說我們看到一個相對穩定的狀態，每個季度，我們都有一定數量的客戶，傳統客戶繼續轉向我們的雲端平台，當然特別是 CXone。這是我們一直期待看到的事情。正如我所說，今年的跡象表明一切如常。但我認為，隨著人工智慧和我們的數位產品的推出，我們將看到一個不斷增加交易價值的管道，這也是客戶可能希望儘早遷移的原因。因此，當我們展望接下來的幾個季度和一年時，我確實認為，隨著那些大型企業客戶開始計劃他們的行動，我們將開始看到現有安裝基礎的額外加速。

And just a reminder that when we do see those customers migrate, I mentioned it in my remarks earlier today, we generally see a very nice and steady significant uplift in their ARR. It can be anywhere from 2 to 3x and we have customers that are 10x or higher in terms of uplift to their ARR. So it certainly will continue to be a growth driver for us.

需要提醒的是，當我們確實看到這些客戶遷移時，我在今天早些時候的評論中提到過，我們通常會看到他們的 ARR 出現非常良好且穩定的顯著提升。它可以是 2 到 3 倍，而我們有些客戶的 ARR 提升是 10 倍甚至更高。因此它肯定會繼續成為我們的成長動力。

Our next question comes from the line of Jim Fish with Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Jim Fish。

This is Quinton on for Jim Fish. Barak, maybe first for you. Underneath the cloud business, can you talk about the drivers of growth here between how much is coming from expansion of your existing base versus that conversion of the large enterprise pipeline that you guys have driving net new dollars. Any color you can provide on the net retention rates you saw this quarter relative to prior quarters?

這是昆頓 (Quinton) 代替吉姆·菲什 (Jim Fish) 上場的節目。巴拉克，也許你第一個。在雲端業務方面，您能否談談成長動力，其中有多少來自現有基礎的擴展，有多少來自推動淨新美元成長的大型企業通路的轉換。您能提供本季與前幾季相比的淨留存率嗎？

Yes. Thanks for the question, Jim. It's always, for us, a combination of the 2 between expansion and new. The beauty of the markets we operate in, that it's still only, I would say, 20-some percent in the cloud. So there is a very healthy runway and predominantly at the enterprise market. So our focus is, of course, a lot of our existing cloud customers, the many thousands that we have, but also about land grab of new customer. And the beauty that we constantly see is that customers that -- new customers adopt us in different ways. Some go all in day 1, buy everything, deploy everything and some department by department, and we continue to see the ARR of these customers growing. So there is no change that we've seen on trend either on the ARR or the mix between new and existing customers.

是的。謝謝你的提問，吉姆。對我們來說，這始終是擴張與創新的結合。我們所經營的市場之美在於，我認為，雲端運算仍只佔 20% 左右。因此，這是一個非常健康的跑道，主要在企業市場。因此，我們的重點當然是現有的數千名雲端客戶，但同時也關注新客戶的爭奪。我們不斷看到的美妙之處在於，新客戶以不同的方式接受我們。有些客戶在第一天就全力以赴，購買所有東西，部署所有東西，有些客戶則逐個部門部署，我們繼續看到這些客戶的 ARR 不斷成長。因此，無論是 ARR 或新舊客戶之間的組合趨勢都沒有改變。

Understood. That's helpful. And then, Beth, maybe for you, maybe to ask it more directly. How much revenue did LiveVox actually contribute here in Q1? And then with the full quarter of wrapping your hands around the business, are you still expecting that $142 million of contribution for the full year? Or any change to that?

明白了。這很有幫助。然後，貝絲，也許對你來說，也許可以更直接地問這個問題。 LiveVox 在第一季實際貢獻了多少收入？那麼，在整個季度中，您是否仍預計全年將有 1.42 億美元的貢獻？或有什麼變化嗎？

So thanks for the question, Jim. And to be clear, last year, we provided direction of the cloud revenue split expectation between LiveVox and cloud revenue that was not coming from LiveVox. Just to provide real clarity to the stakeholders in order to understand the expectations of our cloud revenue this year. But consistent with every acquisition, we've always done at NICE, once we close the deal, we don't actually separately disclose the financial results of -- beyond the business segments, which is how we have always conducted our business. So we won't be providing a specific breakdown. As I commented earlier, just in terms of giving color, I think, as I said, we're quite pleased with our revenue in cloud this quarter. And feels that the stepping into the year, LiveVox is very much aligned with what we we're looking to achieve with that acquisition. So I think we're very pleased and beyond that. Again, we won't be providing any further segmentation. As I've said, we've reiterated that the cloud revenue for the year expectation is unchanged.

謝謝你的提問，吉姆。需要明確的是，去年我們提供了 LiveVox 與非來自 LiveVox 的雲端收入之間的雲端收入分成預期方向。只是為了向利害關係人提供真正的清晰度，以便了解我們今年的雲端收入預期。但與每次收購一樣，我們在 NICE 也一直這樣做，一旦我們完成交易，我們實際上不會單獨披露業務部門以外的財務結果，這也是我們一直以來開展業務的方式。因此我們不會提供具體的細目分類。正如我之前評論的那樣，就顏色而言，我認為，正如我所說，我們對本季雲端運算的收入感到非常滿意。我覺得，進入新的一年，LiveVox 與我們透過這項收購想要實現的目標非常一致。所以我認為我們非常高興，甚至超越了這一點。再次強調，我們不會提供任何進一步的細分。正如我所說，我們重申，今年的雲端收入預期保持不變。

Our next question comes from the line of Mike Latimore with Northland Capital Markets.

我們的下一個問題來自 Northland Capital Markets 的 Mike Latimore。

Great. Barak, you mentioned that AI gets you into some touch points that NICE has not addressed in the past. Can you just elaborate a little bit on what those touch points are and also, I guess, separately. Is there any quantification of cloud bookings growth in the quarter?

偉大的。巴拉克，您提到人工智慧可以讓您了解 NICE 過去尚未解決的一些接觸點。能否稍微詳細說明一下這些接觸點是什麼，以及分別說明一下。本季的雲端預訂量成長有沒有量化數據？

So thanks, Mike. So I described in my -- I always describe it as the different drivers of our business, the shift to the cloud of CX environment and then the convergence and the expansion into digital and AI. They are separate, but obviously, they also work together and they impact each other. So one of the things with our AI capabilities, customers understand that in order to really have what is the ultimate goal, the holy grail of CX to really have a seamless journey for customers, one should not look at different touch points or interactions separately.

所以謝謝你，麥克。所以我在我的描述中將其描述為我們業務的不同驅動因素，向 CX 環境的雲端轉變，然後是融合和向數位和 AI 的擴展。它們是獨立的，但顯然，它們也協同工作並相互影響。因此，利用我們的 AI 功能，客戶可以理解，為了真正實現最終目標，即 CX 的終極目標，即為客戶提供無縫銜接的旅程，我們不應該分別看待不同的接觸點或互動。

And it breaks the silos between what was in the market for years, the different subcategories of someone provide the voice channel, someone provide the chat, someone the e-mail or someone provide reflect knowledge into search or social engagement. And there is understanding that the core of the interaction is what you need to consolidate on. And we are the core of that interaction.

它打破了多年來市場上存在的孤島，即提供語音管道、提供聊天、提供電子郵件或將知識反映到搜尋或社交參與中的不同子類別。而要明白互動的核心就是你需要鞏固的。我們是這種互動的核心。

We -- managing voice historically is the most complicated channel. And if you solve AI for that, you can solve AI and automation for all the other things. So what we see more so than not is that customers consolidate into CXone. They bring knowledge into CXone. They bring data into CXone and obviously, all interactions. And then you have a holistic view of the customer. And then in this environment, AI flourish. So that's the reason, that's a trend that we see.

我們——從歷史上看，管理語音是最複雜的管道。如果你解決了人工智慧這個問題，你就可以解決所有其他人工智慧和自動化問題。因此，我們更常見的情況是客戶紛紛加入 CXone。他們為 CXone 帶來了知識。他們將數據帶入 CXone，顯然還有所有互動。然後你就會對客戶有整體的了解。然後在這種環境下，人工智慧蓬勃發展。這就是原因，這是我們看到的趨勢。

With respect to bookings, we don't provide comments on booking. We provide certain different anecdotes about deals. And as you can see, like in any other quarter, we had many, many deals, we highlight the very large one, many 7-figure deals, of which many of them are brand new customers.

關於預訂，我們不提供預訂評論。我們提供了一些有關交易的不同軼事。正如您所看到的，就像其他任何季度一樣，我們有很多交易，我們重點介紹了非常大的交易，許多 7 位數的交易，其中許多都是全新的客戶。

Our next question comes from the line of Catharine Trebnick with Rosenblatt Securities.

我們的下一個問題來自 Rosenblatt Securities 的 Catharine Trebnick。

All right. Something as (expletive). You introduced a UCaaS solution recently. And can you pretty much give us some puts and thoughts on what the decision was to do that. Does that impact or not impact the relationship with RingCentral?

好的。類似（髒話）的東西。您最近介紹了一個 UCaaS 解決方案。您能否向我們詳細闡述做出這項決定的原因和想法？這是否會影響與 RingCentral 的關係？

Yes. Thanks for the question. I don't think I'm going to surprise you by saying that the UCaaS market is -- has been commoditized and it's no longer a premium capability. It's also easy to deliver. And so we have a capability or we always have and we had some requests from customers. Our relationship with Ring is strong, and we operate in certain segments of the market together and some other segments of the market we operate in a different way. So no change on that.

是的。謝謝你的提問。我認為，如果我說 UCaaS 市場已經商品化並且不再是一項高級功能，這並不會讓你感到驚訝。交付也很容易。因此，我們有能力或我們一直有能力，並且我們收到了一些來自客戶的要求。我們與 Ring 的關係非常牢固，我們在某些​​市場領域共同運營，而在其他一些市場領域我們則以不同的方式運作。因此這一點沒有改變。

Our next question comes from the line Rishi Jaluria with RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Rishi Jaluria。

This is Richard Poland on for Rishi Jaluria today. So obviously, AI can play a role across the kind of entire call center life cycle. So I guess, early days, are you seeing any particular use cases that are standing out?

今天，我是 Richard Poland，為 Rishi Jaluria 主持節目。顯然，人工智慧可以在整個呼叫中心生命週期中發揮作用。所以我想，在早期，您是否看到任何突出的特殊用例？

Yes. It's a great question. We see a lot of different use cases, and I'm very encouraged by the pace of adoption of those use cases because, as I mentioned before, when we think of AI, we think about it in 2 different ways, we translate it to Augmented Intelligence and Artificial Intelligence. So there is the part when it can work side by side with the CX professional that is a human and there is an automation, a full automation of certain tasks or certain journeys. So I mentioned on the call several of our solutions with -- related to AI, whether it's a copilot for agent and supervisors, auto summary, XO for variety of CX AI capabilities. And the list go on and on, I didn't want to list everything. So the list I believe, will continue to grow. And the minute you have a platform that have, again, all of those assets together, it's really easy to start using more and more use cases.

是的。這是一個很好的問題。我們看到了很多不同的用例，我對這些用例的採用速度感到非常鼓舞，因為正如我之前提到的，當我們想到人工智慧時，我們會以兩種不同的方式思考它，我們將其轉化為增強智慧和人工智慧。因此，它可以與人類 CX 專業人員並肩工作，以實現某些任務或某些旅程的自動化、完全自動化。因此，我在電話會議上提到了我們的幾種與人工智慧相關的解決方案，無論是代理商和主管的副駕駛、自動摘要，還是用於各種 CX 人工智慧功能的 XO。這個清單可以很長，我不想列出所有內容。所以我相信這個名單還會繼續成長。一旦你擁有一個將所有這些資產整合在一起的平台，你就可以輕鬆地開始使用越來越多的用例。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Eilam for any final comments.

謝謝。女士們、先生們，我們的問答環節到此結束。我將把發言權交還給艾拉姆先生，請他發表最後的評論。

Thank you, everyone, for joining us. Beth, Marty and I and the rest of the management team are looking forward to see at our Investor Day in Vegas on June 11. Have a great day. Thank you so much.

謝謝大家加入我們。貝絲、馬蒂和我以及管理團隊的其他成員都期待著 6 月 11 日在拉斯維加斯舉行的投資者日活動。祝大家有美好的一天。太感謝了。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。