Welcome to the NICE conference call discussing Q1 2022 results, and thank you all for holding. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded May 12, 2022. I would now like to turn this call over to Mr. Marty Cohen, Vice President, Investor Relations at NICE. Please go ahead. Thank you, operator. With me on the call today are Barak Eilam, Chief Executive Officer, and Beth Gaspich, Chief Financial Officer. Now, before we start, I'd like to point out that some of the statements made on this call will constitute forward-looking statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, please be advised that the company's actual results could differ materially from these forward-looking statements. Additional information regarding the factors that could cause actual results or performance of the company to differ materially is contained in the section entitled Risk Factors in item three of the company's 2021 annual report on Form 20-F, as filed with the Securities and Exchange Commission on April 5, 2022. During the call, we will present a more detailed discussion of Q1 2022 results and the company's guidance for the Q2 and full year 2022. Following our comments, there will be an opportunity for questions. Let me remind you that unless otherwise noted on this call, we will be commenting on our adjusted results of operations, which differ in certain respects from generally accepted accounting principles, as reflected mainly in accounting for acquisition-related revenues and expenses, amortization of intangible assets, and accounting for stock-based compensation. The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release. We'd also like to remind you that we are hosting our virtual Investor Day on May 24th, in conjunction with our Interactions Live user conference. The program is for analysts and investors, and it will include presentations from NICE executives and product and technology sessions. If you haven't received the registration email, please email us at ir@nice.com. I'll now turn the call over to Barak. Thank you, Marty, and welcome everyone. After a very strong 2021, a year in which our business significantly accelerated, we're happy to report that our momentum continues into 2022, as reflected in our outstanding Q1 results. Total revenue increased by 15% and cloud revenue grew 28% year-over-year. We continue to drive excellent top-line growth and at the same time, further improve our unmatched profitability, as demonstrated by a 16% increase in operating income, 17% growth in EPS, and continued strong operating cash flow with a record of $193 million generated in Q1. These stellar Q1 results reflect the strong and durable demand for our solutions. The total value of seven-digit deals increased 93%. The average value of these deals grew 52%, and the total deal value of competitive replacements increased 113%. In addition, our enterprise customers highly value the power of our platform with tightly integrated solutions, as reflected by an 89% increase in CXone add-on new bookings. Moving forward, the pipeline reveals a similar story. Our pipeline is at an all-time record, growing 55% in Q1. Moreover, we are witnessing a strong and increasing pipeline in multiple verticals that are back to or greater than pre-COVID levels. What set us apart from the rest of the industry are three driving forces. Our widening leadership in the large enterprise market, our industry-leading international footprint, and our unparalleled next-gen digital and AI offering. Starting with our increasing leadership in large enterprises, it is far and away our domain. From our vast experience in this market, we know there are two key elements to winning the enterprise. Having a fully integrated and complete enterprise-class platform and the ability to deliver complexity at scale. We see a clear priority from customers and prospects to invest in CXone by taking advantage of our full suite of solutions. This is apparent as evidenced by more than 100% year-over-year increase in the total value of our portfolio deals, which we define as deals that encompass three or more solutions. In Q1, we signed multiple large CXone seven-digit ACV deals in which the customer selected a portfolio of our CXone solutions. One such deal included a large and well-known clothing retailer. This customer had a disjointed and siloed architecture in place from a legacy competitor. They wanted a complete cloud platform that could meet and service their consumers wherever they start their journey, without the need to integrate multiple solutions from different vendors. NICE was chosen because we are the only vendor that could offer a fully complete native cloud platform with seamlessly integrated digital and AI at scale. Other large seven-digit deals along these lines included a large regional bank, a Midwest-based life insurance and annuity company, and a leading hospitality platform company. We also signed an eight-digit deal with a large and well-known fintech company and a seven-digit deal with a large regional bank. International, which is another key driving force for us, is increasingly becoming a stronghold of our business. We already have significant go-to market assets and a large customer base in all key international markets. Yet, it is still a heavily under-penetrated market in which we see accelerating momentum driven by increasing demand for cloud and digital. Cloud as a percent. Cloud as a percentage of the new booking in our international business increased significantly over the year, led by several large cloud deals and the total number of international CXone deals more than doubled in Q1. Additionally, there has been significant pipeline generation in our international markets, further expanding into new territories with key wins and multiple meaningful opportunities. We signed our largest APAC cloud deal ever, an eight-digit deal for multiple tens of thousands of agents with a large BPO. The incumbent solution could not scale with the BPO's growth, so they chose NICE as we are providing a more robust, scalable, and state-of-the-art solution that will future-proof the needs of the business. Other seven-digit international deals, including one of the largest European broadcast companies and a deal with a German-based software company. Our ubiquity in the international markets has extended to the channel, where we have a large and growing ecosystem of partners. Another strategic partner we signed with last quarter is IBM, to help enterprise customers digitally transform their businesses with CXone internationally. Lastly, the third driving force is the extension of CCaaS to the next gen digital, AI, and smart self-service, a growing priority for enterprises of all sizes. The clear differentiation in our digital and smart self-service, which is building a widening chasm between us and the rest of the industry, is our CXI framework that incorporates decades of industry-specific data and purpose-built AI. CXI is driving our digital success, and in Q1, the annual recurring revenue of our digital solutions increased by 88%. CXI is quickly becoming an industry standard for the customer engagement market. It is a framework that combines CCaaS, WEM, analytics, digital and self-service in a single native cloud platform, fully powered by AI. CXI removes the friction-filled, disjointed, siloed approach that is the blight of digital 1.0 that you get from our competitors. CXone is recognized as the trailblazing CX cloud platform in the market and the only one that is capable of delivering the full value of CXI. With CXI, most of our deals with large enterprises now include digital and smart self-service solutions powered by Enlighten AI and delivered in over 35 digital channels seamlessly integrated into CXone. The breadth and depth of our digital solutions are unmatched and include smart web guidance, dynamic knowledge management, virtual agents, and proactive conversational AI. In Q1, we signed a large seven-digit ACV deal with a prominent medical supplier, which is a new logo. They chose CXone to consolidate their service operation onto a single platform and to provide fully integrated digital and smart and self-service capabilities that will scale and support their growth well into the future. They were also impressed with the ongoing innovation and roadmap at NICE for digital and self-service that they felt was far superior compared to others in the industry. Other seven-figure deals in Q1 included a digital deal with a payroll company, payroll platform company, a well-known gaming company, a provider of medical management information systems, and a travel management platform company. We're excited about the momentum we see powered by the aforementioned three driving forces. Our widening leadership in the large enterprise markets, our industry-leading international footprint, and our unparalleled next gen digital and AI offerings. These drivers, paired with strong and durable demand in our markets, allows us to focus our efforts on executing our long-term strategy to further cement our leadership. Moreover, our exceptional financial profile of double-digit top-line growth, combined with best-in-class profitability, outstanding cash generation, and a rock-solid balance sheet, provides us the financial fuel to continue to outpace our competitors. I would like to take this opportunity and invite all of you to our annual Investor Day in conjunction with our Interactions user conference on May 24th. Interactions Live is the CX industry's largest virtual event with over 25,000 customers, prospects, and partners in attendance. A great lineup of keynote speakers, including former U.S. President George W. Bush and Oscar-winning actor George Clooney. A record number of the world's largest enterprises will share their experience with NICE CXone, including Honeywell, Kroger, T-Mobile, Disney, Verizon, Cambia Health, TELUS, and many others. Interactions will also be a great opportunity to see firsthand how CXone has evolved to become the market's number one CXI platform. We look forward to seeing you there virtually. I will now turn the call over to Beth. Thank you, Barak, and good day everyone. I'm pleased to provide the analysis of our financial results and business performance for the first quarter of 2022, and our outlook for the second quarter and full year 2022. Our first quarter financial results were outstanding on all levels, demonstrating our exceptional financial profile of growing the top line, along with best-in-class profitability and cash generation. Total revenue for the first quarter increased 15% year-over-year to $527 million. non-GAAP fully diluted EPS increased 17% year-over-year to $1.80. Our total revenue growth is mainly attributed to the growing contribution from cloud revenue, which increased 28% year-over-year to a total of $295 million, and represented a record 56% of total revenue, up from 50% in Q1 last year. Product revenue increased 16% to $76 million, and represented 14% of total revenue in Q1. Services revenue, which totaled $157 million and represented 30% of total revenue, decreased 3% year-over-year in line with expectations as existing on-premise customers continued to gradually shift to the cloud. One of the main differentiators for NICE is our unrivaled CX portfolio. Not only did the number of customer engagement portfolio deals increase over 50%, but each deal on average increased 67% in average deal size, a testament to our expansive offering and cross-sell opportunities. From a geographic breakdown, the Americas region, which represented 81% of total revenue, grew 14% year-over-year. The EMEIA region, which represented 14% of our total revenue, grew 29% year-over-year, and 34% on a constant currency basis. APAC, which represented 5% of total revenue, grew 7% year-over-year, and 9% on a constant currency basis. The contribution from our cloud revenue continues to expand. We recorded more than 100% growth in both EMEIA and APAC cloud revenue, and APAC recorded its largest cloud deal ever. Moving to our business unit breakdown, we experienced another strong quarter with both our business segments growing in double digits. Customer engagement revenues, which represented 80% of our total revenue in Q1, was $421 million, a 14% increase compared to last year. CXone is the main engine behind the growth in customer engagement, with an offering that has been augmented by digital and self-service capabilities. Revenues from financial crime and compliance, which represented 20% of our total revenue in Q1 and totaled $106 million, increased 20% year-over-year, primarily coming from product revenue. Our gross profit grew to $385 million in the first quarter of 2022 compared to $332 million last year. Gross margin increased to 73% compared to 72.7% in Q1 last year. The increase in gross margin in the quarter was mainly attributed to an increase of 100 basis points in the cloud gross margin, which reached a record 68.6% in Q1. Our cloud business sets itself apart in the industry, consistently demonstrating our ability to drive leverage stemming from strong increasing revenue and the inherent scalability in our natively built CXone platform. Our cloud gross margin has expanded nearly 600 basis points since the first quarter of 2020. In Q1, operating income increased by 16% year-over-year to a quarterly record of $149 million compared to $129 million in Q1 2021. Operating margin was 28.3%. Earnings per share for the first quarter totaled a record $1.80, an increase of 17% compared to Q1 last year. We experienced another phenomenal quarter with industry-leading cash flow generated from our operations, which totaled $193 million in Q1, increasing 17% year-over-year. We used the change in the end market environment as an opportunity to expand our share repurchases to a total of $64 million. In addition, we used $18 million for debt repayment. Total cash and investments at the end of March totaled $1.491 billion. Our debt, net of a hedge instrument, was $541 million, resulting in net cash and investments of nearly $1 billion. Our balance sheet strength continues to remain top in class, and the combination of our available cash, along with continued cash generation from our growing profitability, uniquely positions us to fuel the positive momentum we see in our business. Looking forward to the H2 of 2022, we continue to expect ongoing cloud momentum and reiterate our expectation of cloud revenue growth to be at 27% or greater for the full year. I will conclude my remarks with guidance. For the second quarter of 2022, we expect total revenue to be in the range of $520 million-$530 million. We expect the Q2 2022 fully diluted earnings per share to be in a range of $1.75-$1.85. We are raising our revenue and EPS guidance for the full year 2022. We now expect total revenue to be in the range of $2.16 billion-$2.18 billion, representing 13% growth at the midpoint compared to full year 2021. We expect the full year 2022 fully diluted earnings per share to be in a range of $7.25-$7.45, representing 13% growth at the midpoint compared to full year 2021. I will now turn the call over to the operator for questions. Operator? Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer session. If you'd like to ask a question, you may press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Samad Samana with Jefferies. Please proceed with your question. Hi, good morning, and good to see the strong results, Barak and Beth. Maybe, Barak, if I can start on a question for you. The quarter itself looked really good, and the commentary on bookings is obviously very positive from you on the quarter itself. Maybe could you give us a real-time view now that we're halfway through Q2, maybe what you're seeing in terms of pipeline build more recently, and if you're seeing activity stay at the same healthy levels as you saw in Q1, or if you're seeing any changes just with a little bit more macro uncertainty out there. Just what are you guys seeing in real time? Sure. Thanks, Samad. Yeah. No different from what I said on the earlier remarks. Throughout 2021, we spoke about the momentum that we see in the business, both as we reported revenue as well as in the booking and in the pipeline. We saw that momentum continues in Q1, and it's no different since, you know, since we closed the quarter. Same level of activity, high momentum. I mentioned on my call the different driving forces to our business. You know, the large enterprise, the international markets, and the shift or the expansion into digital and AI with smart self-service. All of those continue to drive the agenda of prospects and customers and accelerating. We don't see any difference. You know, obviously, we also read in the newspaper that you all read and, we will look at the market, but in reality, in real time right now, same as we've saw, it saw through last year and in Q1. Great. That's great to hear. Beth, maybe just on the guidance, I know you've given cloud for the year. Could you maybe just help us think about if there's any difference in the seasonality? I know the last couple of years have been a little bit different just in terms of the timing around cloud revenue ramps. Just how should we think about the cloud revenue seasonality for the rest of the year? Yeah. Thank you for the question, Samad. The trend that you're seeing this year is what we expect, that we've seen in prior years as well, that will continue, where as a result of the fact that we have consistent strong growth in the cloud and a higher level of recurring revenue, that means we see a more equal distribution of both revenue and profitability throughout the year. You see that strong growth in our Q1 results, and that's a trend that we expect to continue to see. There is less seasonality. Of course, we always tend to see some seasonality in certain quarters, like the Q4 with retail and other. Generally, you'll see pretty consistent spread throughout the year. Great. Thanks. I appreciate you taking my questions. Thank you. Our next question comes from the line of Tyler Radke with Citi. Please proceed with your question. Hi, good morning. Barak, you talked about some large upticks in the competitive replacements that you saw this quarter. I was wondering if you could unpack that. What do you think is driving the increased displacements of your competitors? Yeah, great question. You know, I'll give you a bit more color on that. The first one, you know, the incumbent, we're in a market where, you know, while we see momentum of cloud, let's not forget that still the penetration of cloud is still relatively low to other markets. Even customer who thought they moved to the cloud realizing that they basically shifted to kind of the hosted version of the legacy competitor. They realize right now that it's not cloud, and the only real cloud solution is one that was built natively in a complete manner that have you know the complete offering like we offer and what we invested in the last many years, five or six years, and that's what we have today. That's one of the driving forces, the realization of customers that they need to move quickly into that and replacing the legacy incumbent provider. The second thing that we see when it comes to competitive replacement goes to CXI, and this is in customers that understand that it's not just about moving their customer or their CX operation to the cloud, it's about an opportunity to unify their operation into a single platform doing it with digital self-service and inject in a platform that is fully injected with AI. We found ourselves in those cases, winning all the solutions together and replacing not just one incumbent, but multiple other vendors. The customer buy from us the complete set of solutions or multiple solutions. I mentioned on the call earlier about the significant growth we see of the portfolio, the overall portfolio adoption. Last but not least, is customers who did buy cloud solutions in the past, let's say, couple of years. It was either too, you know, wasn't mature enough because it doesn't scale for them, so they realized that they need a more established platform like ours. Or alternatively, they kind of committed to build it yourself type of platform from different components, and they are tired of being a system integrator, and they wanna buy a foolproof and complete platform like ours. These are the sources of where we see the incumbency losing to us and a significant surge in competitive replacements. Thanks. Beth, we saw product revenue come in stronger, at least in The Street was modeling this quarter. Could you help us understand the driver of that? As we think about the rest of the year, how does your pipeline look just in terms of product revenue? How should we be thinking about the growth versus decline in that revenue line? Thank you. Yeah. Thanks for the question, Tyler. Our product revenue had a great performance in the quarter, grew 16% year-over-year, and it was coming really solely from the financial crime and compliance business. The financial crime and compliance business had a tremendous quarter with 20% growth year-over-year. What you see is that, you know, in certain markets, and that includes FCC, cloud is still not as mature in terms of adoption there. It gives us a great opportunity looking forward on the cloud. But certainly, with the size of some of the deals, on the Actimize front, those product deals tend to be large and lumpy and more difficult to predict. We were very pleased with the performance with that part of the business. As we look forward into the second half of the year, for both of our businesses, our pipeline continues to become more and more cloud-centric. As highlighted, you know, there are certain aspects of the market, and that includes FCC, where some of those customers tend to still buy from time to time on-prem. You should expect to see that, you know, you'll probably see some ongoing variability in the future looking forward on product. Certainly, we do see that continued shift in opportunity to the cloud, and that includes the FCC business. Thank you. Our next question comes from the line of Pat Walravens with JMP. Please proceed with your question. Oh, great. Thank you. I think this might be for Beth. I mean, you guys are executing great. Congratulations. The market is super challenging, so your stock is down, I think, 40%-ish year to date. Beth, you said you bought back, if I heard right, $64 million in the quarter. How do you guys think about future share repurchases? Thanks for the question, Pat. You know, as I highlighted on the call, we are in a unique position relative to the really the competitors in our industry generally, where we have such a healthy balance sheet. You know, we have about $1.5 billion of cash and investments, and that gives us a you know a really unique opportunity both on the share repurchase front, but clearly also on the M&A front as well that we are well-financed. As we look forward to the rest of the year, you know, we consistently believe that we have really strong momentum in our business. Of course, we're going to use that opportunity to continue our buybacks during the course of this year. Okay. Maybe if I could do a follow-up. You know, Barak, I'm actually in Tel Aviv this week, but so clearly the funding for the private companies is gonna start drying up. How do you feel about doing more M&A? I believe that this market will open up some great opportunities for us as a company, both in the private and the public markets. As Beth mentioned before, we have a great balance sheet. Just this quarter, we generated $193 million, and we are generating close to half a billion dollars or more on an annual basis, and we have a great balance sheet. I think that we already see, by the way, a lot. So for small startups that do not have the runway, you know, the amount of incoming, let's call it, incoming inquiries from small startups grew tenfold in the last few weeks versus what we saw on average. Obviously we have a great muscle in the company of not just doing M&As but also have a great ROI from them. We're actually excited about the opportunities ahead. As Beth said, we balance nicely between that. We always have been prudent on acquisitions, but at the same time, we feel that there is also an opportunity to have great return with an aggressive buyback program. Great. Thank you both. Our next question comes from the line of Rishi Jaluria with RBC Capital Markets. Please proceed with your question. Oh, wonderful. Thanks so much for taking my questions. I wanted to go back to a comment, Beth, you had made on the prepared remarks, which was this large cloud deal in APAC. Maybe taking a step back, can you help us understand what are you seeing in terms of the appetite for cloud outside of the U.S.? I know historically the U.S. has always been a stronger market and more ready to move to the cloud, but it seems encouraging to see a large cloud deal out in APAC. I think you actually said largest cloud deal ever. Maybe can you talk to us about the environment for cloud in both India and APAC, and then I've got a follow-up. Yeah. Thanks for that. Generally, I will say that, you know, we as a company every quarter we report many 7- and 8-figure cloud deals in a very consistent manner, and we see that trend continues to grow. I just mentioned that when we mention the value of the deal, we mention the immediate committed value by the customer and not necessarily the full potential, which usually is much higher. Just to kind of give it some color. With respect to international markets, as I said in my prepared remarks, we see a great momentum. We have great presence in most key international markets, and we continue to put more and more investment in that, both with our own team as well as growing the ecosystem that grew dramatically in the international front. Yes, the adoption is going very, very nicely. As you said yourself, it used to lag the U.S. Now, I think in terms of the acceptance, it's on par with the U.S., but the starting point is much lower in terms of cloud penetration. We believe the opportunities are significant, and we'll continue to seize those opportunities moving forward. All right. Well, wonderful. Then Barak, you talked about some of the uptick that you're seeing with AI, IVA, et cetera. Maybe, you know, again, just thinking from a macro perspective, in this environment where you know companies can't hire fast enough, it's a super tight labor environment. Can you maybe I guess A talk is that an actual tailwind you're seeing to adoption of these solutions to make existing contact center representatives more productive? And B, can you remind us what does that sort of ARPU uplift look like, you know, with a core CCaaS deal once you're adding in AI and IVA capabilities? Thanks. Sure. Let me start just to explain what's the reason or why do we see this great momentum in AI that's driving smart self-service. Almost every customer we meet these days already had some experience in trying to put bots into their CX environment, hoping that will free up labor or at least save them the need to hire more labor into the CX operation. What we hear across the board is a major disappointment because they adopted a lot of, you know, bots from a variety of, you know, point solution companies and small companies. The reason of the disappointment, the reason why they are engaging with us is that putting the bot is not enough. It's just a framework. The real power is in the ability to inject sophistication, knowledge, and understanding into the bot. Otherwise, it's almost useless. We are in a unique position where we have a ton of data. We have 25 years of data that we've used in order to build models, in order to make those bots from something that doesn't work to something that work in a very meaningful and very effective way. That's thanks to Enlighten AI, which we just, you know, keep seeing a record number of deals signed for Enlighten AI. That's the reason that we see that, and I believe that we are still at the beginning of what can be a tremendous growth opportunity for us. We're in a unique position because we have the data, and the data is the most important thing when it comes to that. In terms of the uplift, when you look at what you call, let's call it a CCaaS deal of a classic CXone deal, and then you add to that, I will on purpose say digital and smart self-service, because usually they come together, it's more than double the ACV we see from such a customer. And the reason for that, and the reason why it can be even more, going back to your point about labor, a typical contact center agent, depending on the geography, costs about $50,000. That's the cost of labor. If we can replace some of those agents with AI and even offer, you know, taking up just at a 25% of the labor, you can understand the full potential over here with a market that has about 15 million agents out there. Wonderful. Thank you so much. Thank you. Our next question comes from the line of Raimo Lenschow with Barclays. Please proceed with your question. Oh, hi. Yeah. Thank you for taking my question. Congratulations on the great results. Most of my questions have been asked already, but Beth, one for you. The R&D spend has been elevated last couple of quarters. I was just wondering if you could give some color on how we should be looking at that going forward and maybe what is the spend contributing to? Sure. Thank you for the question. In general, of course, our CXone cloud platforms are leaders in the market. We're always focused on ongoing innovation within our solutions and our offerings. You see that in terms of the investment that we have in our R&D teams. It's really just reflective of the focus we have internally to really continue to build out the complexity, the depth and breadth of the cloud platforms that we offer. If you look at the R&D kind of as a% of revenue, generally year-over-year, we're pretty consistent and so you can expect that it stays roughly in the same range, 14%-15% of revenue when you add back capitalized R&D. That should be the expectation, but again, it is driven by our focus to continue to fuel our innovation back into our cloud offerings. I wanna add something. Thank you for the question. Yeah. Yeah. It's a topic that's close to my heart. Very proud of our R&D investment that if you neutralize the amortization, it runs about 15%-16% of our revenue. The more important thing is that when you think about our R&D investment, the ROI is tremendous because the way we have built CXone in a native way with all of the solution allows us already and also in the future to improve our cloud gross margin. Because we have our own solution, it's fully complete, we don't need to resell at a very high price other solutions. The customer enjoy a complete and a native solution, and you see the result of that, the improvement at scale in gross margin. While other companies that will try to do that or not doing that will actually experience deterioration in gross margin as they go and resell a lot of other solutions that they don't have in-house. Great. Thank you. Thanks for the color. That's it for me. Thank you. Our next question comes from the line of Meta Marshall with Morgan Stanley. Please proceed with your question. Great. Thanks. A couple of questions. One more just digging into details, just if you could give any color on the FX impact in the guide, going forward since there was some impact in Q1. Then maybe a more in-depth question of just wanna get a sense of how initial RFPs are coming in. Are they for full rip and replace? Are they for digital only? You know, you spoke to kind of seeing a lot of, kind of bot replacements. And so just wondering what you're kind of seeing as the initial foot in the door with implementations. Is it smaller, or is it for the whole implementation? Great. Thanks. Yeah. Thank you for the question, Meta. I'll address the FX related question, then I'll hand it back to Barak. On the guidance question, you know, if we were to adjust it for the impact on the exchange rate, you would see even higher guidance than what we provided. That would be the impact on a constant currency basis, and I'll let Barak address the rest. Yeah. With respect to RFPs, you know, one of the thing I'll mention here is that a few years back when we just started and built CXone and we're the first one to converge routing with WFM, with analytics in the cloud, as a result of that, we drove a change in the market, and we saw more and more RFPs are taking our approach. After that, a lot of RFP came, you know, as a consolidated rip and replace of all of it together. As a result of that, we, you know, we had great outcome. What we see these days is that the framework I've talked about before of CXI, which is actually further convergence of what I said before, plus digital, plus self-service, or smart self-service, is also starting to get into RFPs. Customers understand that in order to make it a reality, they can't keep buying point solution from multiple vendors and try to integrate it in, and they need to buy a platform that is native with all of those solutions. We're starting to see that change already in RFPs, and it, we believe, will give us great advantage in the future. Great. Thanks, guys. Thank you. Our next question comes from the line of Michael Funk with Bank of America. Please proceed with your question. Yeah. Thank you very much. A couple, if I could. I appreciate that Europe has been a couple years behind the U.S. with the cloud migration. That's certainly been a positive tailwind. Would love to know, though, how you're thinking about the macroeconomic environment. You know, I understand shifting to the cloud can be a longer term cost savings for enterprise, but obviously there are high upfront costs as well with that migration. You know, if we do hit a more difficult economic environment Do you anticipate that migration will slow, or do you think that pace will be maintained? You know, I've been with NICE for 22 years, and I've been here back in 2000 and back in 2008, and I can tell you about the lay of the land at least in our industry. Our solutions are extremely mission-critical. You know, customer service, if you look on the CX business, brands need to provide outstanding service to their customers, whether there is a positive economy or negative economy. This is, you know, customers and consumers are the most important thing to brands. We're really mission-critical to customers, and that at least was my past experience, and I believe now is no different than before. We don't see right now any change in demands or negative change in demand due to the macroeconomics in any geography. On the contrary, as I said before, we see some verticals that were somewhat muted during COVID back and actually greater than pre-COVID time. We believe that in our industry and all the markets we operate both in good times and bad times for the economy, there will continue to be very strong demand and durability of demand. Thank you for that. One more if I could. You know, obviously we're hearing a lot about inflation and, you know, specifically, increased energy costs. You know, great to see the improvement in margin in your cloud business over the last couple of years. You know, what is the ability of the providers to pass on those higher energy costs at the data centers? You know, if there is a potential pass-through to you, how would that impact your margin in that business? You know, at least for now, we don't see. It's very marginal for us, and you know, the results speak for themselves. You see the gross margin improvement continues this quarter versus last year. You see overall profitability keep improving, also guidance we gave for profitability is very healthy, and you see it also in the cash generation. You know, we're a software company that is in the cloud, and I think that those fluctuations have very minimal impact on our business. Great. Thank you again for the questions. Thank you. Our next question comes from the line of Paul Chung with JP Morgan. Please proceed with your question. Hi, thanks for taking my question. Just on the pricing environment, you know, given such strong demand trends, are you seeing opportunities to kind of raise prices kind of across solutions, you know? How is kind of the competitive pricing environment in your view? You know, we don't see any dramatic change right now. Our business, the complexity that inherent in CX, you know, we didn't see in the past, and I don't think we'll see in the future commoditization in the solutions. On the contrary, as I said before, we see ourselves or we see more customers adopting a larger portion of our portfolio that give us a very nice uplift. I do believe that down the road, a lot of those hyped private companies that were buying or trying to buy into the very lower end of the market and losing a ton of money, I think. I'm not sure that their approach is sustainable in this market, which will, you know, normalize the market in a way that will be positive to us. Great. You know, you're seeing wins quite, you know, quite broadly across several different verticals, you know. Were you seeing some relative strength across industry verticals and kind of, you know, some of the bigger opportunities there for cloud adoption? Can you repeat them so I got- In industry verticals. Maybe I'll start. Sure. Go ahead. Yeah. I would say, you know, Barak actually mentioned it in his script, you know. When we see both in the bookings that we signed recently as well as in our pipeline, specifically, you know, certain verticals that were kind of sluggish during COVID are now back at levels that are pre-COVID. That looks like hospitality, travel-related companies. Those verticals are coming back quite strong. You see that it's being reflected in our business, but also in forward-looking pipeline as well. Great. Lastly, you know, after a big rebound in OpEx in 2021 to kind of fuel some growth and, you know, have some expenses come back, you know, you're seeing the pace of OpEx growth kind of more in line with revenue. Is this the right way to think about the pace kind of moving forward slightly below revenue growth, kind of reverting back to your typical model? Thank you. Yeah. You know, generally what we're seeing is that in terms of our OpEx, first of all, you know, we don't see any material impact from expenses that were in place, you know, like travel, that was much heavier, you know, pre-COVID. It's something that we start to see come back, but of course, was anticipated in terms of our budgets for this year. In general, you know, we iterated last quarter as well that we expect to continue to see expansion in our operating margin, and so that's reflected in the cost base. That's what you should continue to expect for the course of this year and of course is also embedded within our guidance. Thank you so much. Thank you. There are no further questions in the queue. I'd like to hand the call back to management for closing remarks. Thank you all very much for joining us, and we look forward to see you on the twenty-fourth on our Investor Day. Thank you. Have a great day. Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.