NIC (EGOV) Reports In-Line Q1 EPS, Revenues Miss; Expects FY20 EPS/Revenue Guidance Below Consensus

NIC (NASDAQ: EGOV) reported Q1 EPS of $0.18, in-line with the analyst estimate of $0.18. Revenue for the quarter came in at $91.1 million versus the consensus estimate of $92.59 million.

• Total revenues of $91.1 million, a 7% increase.
• Operating income of $15.3 million, a 2% increase.
• Net income of $11.9 million, a 3% increase.
• Diluted earnings per share of 18 cents, a 6% increase.
• Adjusted EBITDA of $20.1 million, a 5% decrease.

“I commend our government partners and 1,000 employees across the country for the tremendous job they are doing to support the needs of citizens and businesses during a time when government offices are closed for the first time ever,” said Harry Herington, NIC’s Chief Executive Officer and Chairman of the Board. “Together, our teams have been working 24/7 to proactively address and respond to the onslaught of needs brought on by this pandemic and keep government open for business online. Since the beginning of the COVID-19 outbreak, we have launched more than 130 digital services in addition to dozens of cloud-based informational sites that connect government, citizens and businesses and address mission-critical areas such as unemployment filings, COVID-19 testing, nurse licensing and the procurement of personal protection equipment.”

GUIDANCE:

NIC sees FY2020 EPS of $0.76, versus the consensus of $0.79. NIC sees FY2020 revenue of $380.5 million, versus the consensus of $385.69 million.

COVID-19 and Updated Full-Year 2020 Outlook:

NIC is evaluating the impact the COVID-19 pandemic will have on its business for the remainder of the year. Based on this ongoing evaluation, the Company currently expects to come in near the low end of its previously issued guidance for total revenues, which was $380.5 million, adjusted EBITDA, which was $88.5 million, and earnings per share, which was 76 cents. The Company\'s previous guidance for capital expenditures and capitalized software development costs for 2020 remains unchanged.

“Despite some unprecedented revenue softness resulting from the COVID-19 pandemic in the latter part of March, NIC is a stable, essential company helping government remain open for business. Furthermore, NIC is in a unique position of strength during these uncertain times with no debt, considerable cash in the bank and a resilient business model that is providing immense value to our government partners at a time when they need it the most,” said Steve Kovzan, NIC\'s Chief Financial Officer.

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

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