NIC (EGOV) Misses Q4 EPS by 1c, Revenues beat; Offers FY20 EPS Guidance Below Consensus, FY20 Revenue Mid-Point Outlook Above Consensus

NIC (NASDAQ: EGOV) reported Q4 EPS of $0.15, $0.01 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $87.1 million versus the consensus estimate of $86.6 million.

• Total revenues of $87.1 million, an 11% increase.
• Operating income of $11.7 million, a 7% decrease, reflecting higher costs to implement the Company\'s outdoor recreation solution in Pennsylvania and Illinois, and dilution from the Company\'s recently-acquired RxGov® and NIC Licensing Solutions businesses, including higher amortization expense.
• Net income of $10.0 million, a 1% increase.
• Diluted earnings per share of 15 cents, flat to prior year. Diluted earnings per share was positively impacted in the fourth quarter of 2019 by 2 cents due to the release of reserves for unrecognized income tax benefits resulting from the expiration of statutes of limitations for certain tax years.
• Adjusted EBITDA of $16.8 million, a 3% increase.

“The positive momentum continued for NIC in the fourth quarter. We capped off the year with several renewals of our long-term government partnerships and another strong quarter of organic state enterprise revenue growth,” said Harry Herington, NIC’s Chief Executive Officer and Chairman of the Board. “In addition to the strong performance of our core state enterprise division, we are excited about the long-term growth opportunities of our vertical solutions, which we firmly believe will take NIC to greater heights in the years to come.”

GUIDANCE:

NIC sees FY2020 EPS of $0.76-$0.81, versus the consensus of $0.84. NIC sees FY2020 revenue of $380.5-391 million, versus the consensus of $380.94 million.

For fiscal year 2020, NIC currently expects the following:

• Total revenues of $380.5-$391.0 million
• Diluted earnings per share of 76-81 cents
• Capital expenditures of $6.0-$7.0 million
• Capitalized internal use software development costs of $9.0-$10.0 million
• Adjusted EBITDA of $88.5-$93.0 million

“The high end of our revenue guidance reflects continued strong same state enterprise revenue growth, in line with historical averages, driven by the expected deployment of dozens of new services across several states, in addition to incremental revenue contributions from our recently-acquired RxGov® and NIC Licensing Solutions businesses,” said Steve Kovzan, NIC’s Chief Financial Officer. “Our guidance also reflects continued investments in key government vertical solutions - outdoor recreation, payments, licensing and healthcare - where we have been winning significant new business to drive long-term growth.”

For earnings history and earnings-related data on NIC (EGOV) click here.

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