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Sapiens International Corporation Reports Fourth Quarter 2024 Financial Results

Sapiens International Corporation, publicly traded on both NASDAQ (SPNS) and the Tel Aviv Stock Exchange (TASE: SPNS), announced its financial results for the fourth quarter ended December 31, 2024. The company, known for its innovative software solutions tailored for the insurance industry, delivered notable growth and solid metrics during this period.

Financial Highlights

• - Revenue: The company reported revenues of $134.3 million for Q4 2024, reflecting a 2.6% increase compared to $130.9 million in Q4 2023. This uptick underscores the company's ability to maintain momentum despite challenging market conditions.
• - Gross Profit: Sapiens achieved a gross profit of $60.1 million, marking a 7.5% increase from the previous year's $55.9 million. The gross margin also improved to 44.8%, which is a 200 basis point improvement from 42.8% in the same quarter last year.
• - Operating Income: The operating income increased to $21.7 million, up 8.0% year-over-year from $20.1 million. This resulted in an operating margin of 16.2%, which is 80 basis points higher than last year.
• - Net Income: The net income attributable to Sapiens shareholders was $17.9 million, or $0.32 per diluted share, compared to $17.0 million or $0.30 per diluted share in Q4 2023, resulting in a year-over-year growth of 5.3% in net income.

Annual Performance Overview

For the full year 2024, Sapiens reported revenue of $542.4 million, a 5.4% increase from $514.6 million in 2023. Gross profit for the year was $238.1 million, showing an 8.4% increase. The operating income for the full year also grew, reaching $85.8 million, a 8.9% increase from $78.9 million in 2023.

Growth Drivers

Roni Al-Dor, President and CEO of Sapiens, commented on the results: "In the fourth quarter, we achieved $134 million in revenue, driven by robust execution across our core regions and continued growth in our Life insurance segment. The signing of new contracts and renewals with existing clients played a significant role in our success."

Al-Dor highlighted North America as a key contributor, leading the company’s global performance with a 6.3% year-over-year revenue increase. The company’s ongoing focus on its cloud strategy, particularly leveraging Microsoft’s platform and its scalable SaaS solutions, has significantly accelerated clients’ migration to cloud-based systems.

Future Outlook

The company is optimistic about its growth trajectory, introducing its 2025 guidance with non-GAAP revenue expected to range between $553 million and $558 million. Meanwhile, the projected non-GAAP operating profit is anticipated to fall between $98 million and $102 million. Al-Dor emphasized the importance of investing in a modular insurance platform that integrates advanced data analytics and AI technologies to future-proof the company’s offerings and strengthen customer relationships.

Sapiens plans to continue expanding its market share and enhancing its product suite through strategic investments aimed at enhancing operational excellence and customer success in a rapidly evolving insurance landscape.

Q4 2024 Conference Call

To discuss the results in more detail, Sapiens management will hold a conference call and webcast on February 18, 2025, at 9:30 a.m. Eastern Time. Participants can join via the numbers provided in their official release, and a live webcast will be accessible on Sapiens' website, with a replay available following the event.

Conclusion

Sapiens International Corporation has demonstrated strong resilience and adaptability in the face of a challenging economic environment through strategic initiatives and deepening client relationships. The positive results from the fourth quarter of 2024 position the company well for future growth, reflecting its commitment to delivering cutting-edge solutions in the insurance sector.