NICE enjoyed another quarter of double-digit revenue growth, with three massive CCaaS wins contributing to its impressive results.
After the announcement, its stock rose from $167.76 to $201.62 – a massive jump that goes against the grain in the current economic climate.
The first of the three eight-digit megadeals stems from new business with a large state employees credit union. Commenting on this win during an earnings call, Barak Eilam, CEO of NICE, said:
We won the deal as this customer wants to consolidate onto a single platform, and the all-in-one, complete solution of CXone meets their need.
Next is a deal with one of the largest U.S. banks, which is incrementally migrating to the cloud and standardizing its operations. NICE is supporting this process.
The final eight-digit deal is with a global industrial company, which will move entirely off its legacy incumbent platform and onto NICE CXone.
Notably, each of these wins is a legacy replacement deal. Other significant Q3 wins of this nature – worth seven figures – include a large financial institution, a global BPO, a well-known insurance company, and a prominent, worldwide hotel chain.
Legacy Replacement Efforts Bear Fruit
Year over year, the total value of NICE’s competitive replacement deals rose by 96 percent in Q3.
Of course, financial uncertainty impacting particular legacy vendors has played its part. Indeed, NICE made a less-than-subtle campaign in September to usurp Avaya's on-premise customers.
Nevertheless, it will gain encouragement that many enterprises - which harnessed legacy solutions from competitors - are moving to CXone. This is despite those competitors offering CCaaS solutions of their own.
Sharing his thoughts on this trend, Eilam said:
Legacy vendors have struggled to adapt to the rapid changes taking place in our industry and have not kept pace with innovation around cloud and digital. This has led to tremendous opportunities for us to grab market share from these vendors.
Yet, why are so many large enterprises choosing NICE, with CCaaS becoming an increasingly suffocated space?
The sophistication of its CXOne solution is the obvious answer. Indeed, Gartner recently highlighted it as one of only three market leaders.
Eilam also emphasizes the comprehensive nature of the solution, stating:
Enterprises are striving to reduce complexity with their IT landscapes, and, for the most part, our cloud competitors are unable to deliver due to their incomplete platform or owning only a single-point solution. As a result, we continue to win strategic deals against these cloud competitors.
NICE will hope that this momentum continues as competition grows in CCaaS.
Recent market entrants include Microsoft, Google, and Zoom, with Salesforce the latest to throw its hat into the ring.
However, for now, CXOne is much more advanced, which is especially crucial in CCaaS as the contact center is mission-critical for many mid-market and large enterprises.