Fintech
Sapiens Reports Second Quarter 2023 Financial Results
Sapiens International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, today announced its financial results for the second quarter ended June 30, 2023.
Summary Results for Second Quarter 2023 (USD in millions, except per share data)
|
GAAP |
Non-GAAP |
|||||
|
Q2 2023 |
Q2 2022 |
% Change |
Q2 2023 |
Q2 2022 |
% Change |
|
|
Revenue |
$128.3 |
$118.6 |
8.2 % |
$128.4 |
$118.6 |
8.2 % |
|
Gross Profit |
$54.7 |
$50.2 |
9.0 % |
$58.0 |
$53.2 |
9.0 % |
|
Gross Margin |
42.6 % |
42.3 % |
30 bps |
45.2 % |
44.9 % |
30 bps |
|
Operating Income |
$19.6 |
$16.9 |
16.0 % |
$23.4 |
$20.7 |
12.9 % |
|
Operating Margin |
15.3 % |
14.3 % |
100 bps |
18.2 % |
17.5 % |
70 bps |
|
Net Income (*) |
$15.4 |
$11.9 |
29.3 % |
$18.6 |
$15.0 |
24.2 % |
|
Diluted EPS |
$0.28 |
$0.21 |
33.3 % |
$0.33 |
$0.27 |
22.2 % |
|
(*) Attributable to Sapiens’ shareholders |
||||||
“Sapiens achieved a strong second quarter, with 8.2% revenue growth and 18.2% operating margin, driven by significant growth in North American and European markets,” stated Roni Al-Dor, President and CEO of Sapiens. “In the second quarter, our North American revenue growth exceeded 8%, and EMEA revenue increased by over 5%. Our Life business is globally successful, fueled by strategic investments in CoreSuite for Life. Sapiens CoreSuite for Life recently won the 2023 Celent XCelent Award in the EMEA region and was recognized as a “Luminary” Policy Administration Solution in EMEA and North America. We recently announced that Sapiens will integrate Microsoft Azure OpenAI and Azure Power Virtual Agents to provide generative AI solutions for insurance companies.”
“Today, we are raising our full-year Non-GAAP revenue guidance for 2023 from $507 – $512 million to $511 – $516 million. We are also increasing the lower range of our operating margin from 17.8% to 18%. Our full-year Non-GAAP operating margin guidance for 2023 is 18.0% – 18.2%,” added Mr. Al-Dor.
“We announced today that the board of directors has approved the distribution of a cash dividend of $0.26 per share, or $14.4 million in total for the first six months of 2023.” concluded Mr. Al-Dor.
The dividend will be paid on August 30, 2023, to Sapiens’ shareholders of record as of August 16, 2023.
The dividend is subject to withholding of Israeli tax at source at the rate of 25% of the dividend amount payable to Israeli individual, and non-Israeli, shareholders of record.”
Quarterly Results Conference Call
Management will host a conference call and webcast on August 2, 2023, at 9:30 a.m. Eastern Time (4:30 p.m. in Israel) to review and discuss Sapiens’ results. Please call the following numbers (at least 10 minutes before the scheduled time) to participate:
North America (toll-free): 1-888-642-5032
International: 972-3-9180609
UK: 0-800-917-5108
The live webcast of the call can be viewed on Sapiens’ website at: veidan.activetrail.biz/sapiensq2-2023. A replay of the call will be available one business day following the completion of the event at the same link for 90 days.