[February 15, 2018]

NICE Reports Strong Finish to 2017 with 31% Growth in Annual Revenue and 14% Growth in Annual EPS

NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year 2017 ended December 31, 2017.

Full Year 2017 Financial Highlights

Fourth Quarter 2017 Financial Highlights

"We ended the year on a high note as we demonstrated strong momentum across the board," said Barak Eilam, CEO of NICE. "The strong performance in 2017 is attributed to the ongoing successful execution of our NICE2B strategic plan, which was first introduced one year ago."

Mr. Eilam continued, "As we move forward, we are confident about the opportunities ahead. Our addressable market has increased five-fold; cloud, which now represents approximately 30% of our total revenue, is expected to grow to more than 50% of our total revenue in the years to come; analytics, which has fueled our growth will continue to expand with the addition of artificial intelligence; and, we now have the platform and an effective go-to-market to address all segments of the market, both large and small enterprises.

"We are stepping into 2018 with continued momentum. Furthermore, we expect to exit 2018 with a cloud revenue run rate of half a billion dollars and to continue to grow our operating income at a double digit rate."

GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.

Revenues: Fourth quarter 2017 total revenues increased 21.1% to $392.2 million compared to $323.9 million for the fourth quarter of 2016.
Full year 2017 total revenues increased 31.2% to $1,332.2 million compared to $1,015.5 million for the full year 2016.

Gross Profit: Fourth quarter 2017 gross profit and gross margin increased to $268.3 million and 68.4%, respectively, compared to $221.1 million and 68.3%, respectively, for the fourth quarter of 2016.
Full year 2017 gross profit increased to $863.5 million compared to $677.8 million and gross margin was 64.8% compared to 66.7% for the full year 2016.

Operating Income: Fourth quarter 2017 operating income and operating margin increased to $63.2 million and 16.1%, respectively, compared to $37.1 million and 11.5%, respectively, for the fourth quarter of 2016.
Full year 2017 operating income increased to $150.1 million compared to $134.2 million and operating margin was 11.3% compared to 13.2% for the full year 2016.

Net Income from Continuing Operations: Fourth quarter 2017 net income and net income margin increased to $79.4 million and 20.2%, respectively, compared to $30.0 million and 9.3%, respectively, for the fourth quarter of 2016.
Full year 2017 net income increased to $143.3 million compared to $123.1 million net income margin was 10.8%, compared to 12.1%, for the full year 2016.

Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the fourth quarter of 2017 increased to $1.27 compared to $0.49 in the fourth quarter of 2016.
Fully diluted earnings per share for the full year 2017 increased to $2.31 compared to $2.02 for the full year 2016.

Operating Cash Flow and Cash Balance: Fourth quarter 2017 operating cash flow was $86.6 million. Full year operating cash flow reached $394.7 million. In the fourth quarter, $4.1 million was used for share repurchases and $24.4 million in the full year of 2017. As of December 31, 2017, total cash and cash equivalents, short term investments and marketable securities were $525.1 million, and total debt was $447.6 million.

Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.

Revenues: Fourth quarter 2017 non-GAAP total revenues increased to $395.8 million, up 20.5% from $328.5 million for the fourth quarter of 2016.
Non-GAAP total revenues for the full year 2017 increased 30.6% to $1,345.9 million compared to $1,030.3 million for the full year 2016.

Gross Profit: Fourth quarter 2017 non-GAAP gross profit and non-GAAP gross margin increased to $293.5 million and 74.2%, respectively, from $242.8 million and 73.9%, respectively, for the fourth quarter of 2016.
Full year 2017 non-GAAP gross profit increased to $963.6 million compared to $741.9 million and non-GAAP gross margin was 71.6% compared to 72.0% for the full year 2016.

Operating Income: Fourth quarter 2017 non-GAAP operating income increased to $112.4 million compared to $93.9 million, and non-GAAP operating margin was 28.4% compared to 28.6% for the fourth quarter of 2016.
Full year 2017 non-GAAP operating income increased to $336.3 million compared to $272.6 million and non-GAAP operating margin 25.0% compared to 26.5% for the full year 2016.

Net Income from Continuing Operations: Fourth quarter 2017 non-GAAP net income increased to $84.5 million compared to $72.4 million, and non-GAAP net income margin was 21.3% compared to 22.0% for the fourth quarter of 2016.
Full year 2017 non-GAAP net income increased to $254.5 million compared to $220.6 million and non-GAAP net margin was 18.9% compared to 21.4% for the full year 2016.

Fully Diluted Earnings Per Share from Continuing Operations: Fourth quarter 2017 non-GAAP fully diluted earnings per share increased 14.4% to $1.35, compared to $1.18 for the fourth quarter of 2016.
Full year 2017 non-GAAP fully diluted earnings per share increased 13.6% to $4.10 compared to $3.61 for the full year 2016.

First Quarter and Full Year 2018 Guidance:

Effective January 1^st, 2018, the company adopted ASC 606 using the modified retrospective method. 2018 financial data will be reported in both ASC 606 and ASC 605.

Guidance for the first quarter and the full-year 2018 is provided using the accounting standard ASC 605 in order to provide better transparency and comparability to 2017 financial data, which was reported under ASC 605.

First Quarter 2018: First quarter 2018 non-GAAP total revenues are expected to be in a range of $328 million to $338 million. First quarter 2018 non-GAAP fully diluted earnings per share are expected to be in a range of $0.97 to $1.03.

Full Year 2018: Full year 2018 non-GAAP total revenues are expected to be in a range of $1,430 million to $1,454 million. Full year 2018 non-GAAP fully diluted earnings per share are expected to be in a range of $4.40 to $4.60.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, February 15^th, 2018 at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-311-600, United Kingdom 0-800-678-1161, Israel 1-809-344-364. The Passcode is 658 808 66. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company's website at http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032-9687. The Passcode for the replay is 646 562 13.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share-based compensation, and certain business combination accounting entries, amortization of discount on long term debt, realized gain from substantial liquidation of marketable securities and tax adjustment re non-GAAP adjustments and tax reform adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.

About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Eilam, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the Company). In some cases, such forward-looking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company's customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and the risk that we will not be able to successfully execute on the Company's cloud business strategy and generate profitability. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.

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