Israeli software company NICE has outperformed market expectations with its latest financial report, showcasing impressive growth in both revenue and profit margins. The company’s fourth-quarter results, demonstrate a robust performance, driven primarily by the strength of its cloud business and the increasing adoption of its artificial intelligence solutions.

According to the financial report, NICE reported fourth-quarter revenues of $623.2 million, marking a notable 10% increase from the corresponding quarter, where revenues stood at $568.6 million. This figure surpassed analysts’ predictions, who were anticipating lower revenue of $616.2 million. Particularly noteworthy was the stellar performance of NICE’s cloud business, which generated quarterly revenue of $429 million, representing a substantial 20% growth compared to the same period in 2022.

The company also witnessed a significant surge in quarterly operating profit, which jumped by an impressive 40% to reach $122.7 million, compared to $87.8 million in the corresponding quarter. This surge in operating profit contributed to an increase in the operating profit rate to 19.7%, up from 15.4% in the previous year’s quarter. Adjusted earnings per share also saw a healthy increase of 15% to $2.36, surpassing analysts’ expectations of $2.26 per share.

For the summary of 2023, NICE reported total revenues of $2.37 billion, reflecting a 9% increase from the previous year. Annual cloud revenues experienced robust growth, climbing by 22% to $1.5 billion. Additionally, annual operating profit surged to $435.2 million, compared to $335.2 million in 2022, with the operating profit rate rising to 18.3%.

Looking ahead, NICE has issued a revenue forecast of $2.71 to $2.73 billion for 2024, along with an adjusted profit range of $10.40 to $10.60 per share. CEO Barak Elam expressed optimism about the company’s prospects, emphasizing the pivotal role of artificial intelligence in driving NICE’s growth and market leadership. Elam stated, “With the beginning of 2024, and following the success of the previous year, it is now clear that the field of artificial intelligence has become a growth engine for NICE.” He further highlighted how NICE’s AI solutions are enhancing competitiveness in the cloud, driving expansion in the digital realm, and catalyzing the adoption of their platform while fueling the development of new products with substantial revenue potential.