The company said its “mission-critical” products are well-positioned to weather the current macroeconomic environment
NICE reported a 16 percent increase year on year in revenue in Q2, landing a sixth consecutive quarter of mid-teens growth.
Revenue from cloud products increased 27 percent in Q2, with the company noting that the growth of its cloud division has picked up speed as it lands bigger clients.
“The continual growth in our reported results reflects the strength of our business and the fact that we are winning the market, and we expect to continue to win as the tide has turned in our industry,” said Barak Eilam, NICE’s CEO, in the latest earnings call.
He said four factors contributed to NICE’s performance. First, Eilam said organizations are showing a preference for large, financially healthy tech vendors that offer a variety of solutions, rather than for single product vendors.
Companies in a precarious financial position also often don’t have the resources to invest in the R&D of their products, he said.
Second, the CEO noted that increasing labor costs are a concern for enterprises, with more and more choosing to invest in technologies that allow them to contain those costs and overcome the shortage of labor.
Third, he said that many of the on-premises incumbents in the market “carry significant debt, are unable to innovate, and have practically no ability to expand inorganically.”
And lastly, he pointed out that niche companies in the market are struggling to access capital as money flows tighten, putting pressure on what he called “unsustainable business models.”
“These tailwinds, together with the fact that our solutions are mission critical in all the markets in which we operate, put us in an advantageous position,” the CEO said.
NICE CXone continues to be a platform of choice for some of the world’s biggest companies, with the company seeing a 70% increase in the number of large-scale portfolio deals.
Darren Rushworth, President International of NICE, said:
Our solution is trusted by the world’s leading companies including Visa, Toyota and Accenture – and we are confident that many more will look for our expertise in coming years as they look to harness the power of real-time data to build better customer relationships.
And the company sees yet more expansion opportunities on the horizon. On Thursday, it announced that CXone is now available on Microsoft Azure and that it nabbed IP Co-sell status, allowing it to access a vast market by co-selling with Microsoft.