Sapiens Reports Q4 and Full Year 2020 Financial Results

Rhea-AI Summary

Sapiens International Corporation (NASDAQ: SPNS) reported strong financial results for Q4 and the full year 2020, highlighting a 17.2% increase in revenue to $101.7 million for Q4 compared to Q4 2019. Gross profit rose 18.4%, reaching $41.4 million, while diluted EPS increased by 15.4% to $0.15. For the full year, revenue was $382.9 million, a 17.6% growth from 2019. Sapiens anticipates 2021 Non-GAAP revenue between $457 million and $463 million, indicating ongoing positive momentum as they leverage recent acquisitions.

Positive

• Q4 2020 revenue increased by 17.2% to $101.7 million.
• Gross profit for Q4 rose by 18.4% to $41.4 million.
• Full year 2020 revenue grew 17.6% to $382.9 million.
• Non-GAAP operating margin improved to 17.7% for full year 2020.
• 2021 Non-GAAP revenue guidance set between $457 million and $463 million.

Negative

• Operating income decreased slightly in Q4 2020, remaining flat at $10.2 million.

HOLON, Israel, Feb. 25, 2021 /PRNewswire/ -- Sapiens International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, and a member of the Formula Group (NASDAQ: FORTY)  (TASE: FORT), today announced its financial results for the fourth quarter and full year ended December 31, 2020.

 

Summary Results for Fourth Quarter 2020 (USD in millions, except per share data)

	GAAP			Non-GAAP
	Q4 2020	Q4 2019	% Change	Q4 2020	Q4 2019	% Change
Revenue	$101.7	$86.7	17.2%	$102.9	$86.7	18.7%
Gross Profit	$41.4	$34.9	18.4%	$47.0	$38.4	22.5%
Gross Margin	40.7%	40.3%	40 bps	45.7%	44.3%	140bps
Operating Income	$10.2	$10.2	-	$18.7	$14.3	30.1%
Operating Margin	10.1%	11.8%	(170)bps	18.1%	16.5%	160 bps
Net Income (*)	$8.3	$6.8	21.7%	$14.5	$10.6	37.0%
Diluted EPS	$0.15	$0.13	15.4%	$0.27	$0.21	28.6%

 

Summary Results for Full Year 2020 (USD in millions, except per share data)

 

	GAAP		% Change	Non-GAAP		% Change
	2020	2019		2020	2019
Revenue	$382.9	$325.7	17.6%	$384.5	$325.7	18.1%
Gross Profit	$156.0	$129.5	20.4%	$172.9	$143.0	20.9%
Gross Margin	40.7%	39.8%	90 bps	45.0%	43.9%	110 bps
Operating Income	$45.0	$37.9	18.8%	$67.9	$52.2	30.1%
Operating Margin	11.8%	11.6%	20 bps	17.7%	16.0%	170 bps
Net income (*)	$33.8	$26.2	28.7%	$52.0	$38.9	33.6%
Diluted EPS	$0.65	$0.52	25.0%	$1.00	$0.77	29.9%

 

(*) Attributable to Sapiens' shareholders.

 

"The financial results Sapiens reported today demonstrate how well we are executing our strategy. Sapiens ended the year on a strong note with record fourth quarter revenue and a strong operating margin. Despite COVID-19, we crossed the $100 million-dollar-mark in quarterly Non-GAAP revenues, coming in at $103 million, 19% higher than last year. Non-GAAP Operating margin was 18.1%, 164 basis points, or 29% improvement from fourth quarter 2019, validating our operating leverage. For the full year, 2020 Non-GAAP revenue increased by 18% to $384 million and we delivered Non-GAAP operating margin of 17.7%. The global Sapiens team executed extremely well in 2020, and I want to thank everyone for their outstanding work in a year that presented unique challenges and required tremendous adaptability," stated Roni Al-Dor, President and CEO of Sapiens.

"We have proven repeatedly that our "Land and Expand" strategy is an efficient and effective way to grow in the highly regulated and regionally diverse global insurance markets. In addition to our global advantage, we offer customers a one-stop-shop in P&C and Life, along with complimentary and digital solutions. With hundreds of customers around the world, Sapiens is making a significant impact with our broad portfolio of solutions and one-hand-to-shake business model. We entered 2021 with a positive momentum and are planning to leverage our recent acquisitions," continued Mr. Al-Dor. Mr. Al-Dor concluded: "We are introducing 2021 guidance for Non-GAAP revenue in a range of $457 million to $463 million, and Non-GAAP operating margin in a range of 17.7% to 18.0%, reflecting the likelihood that certain cost savings related to COVID 19 diminish in the second half of 2021. With a focused growth strategy, global diversity and an even stronger balance sheet, Sapiens is well positioned for success and growth."

Quarterly Results Conference Call

Management will host a conference call and webcast today, February 25, 2021 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: +972-3-918-0609; UK: 0-800-917-5108

The live webcast of the call can be viewed on Sapiens' website at: https://www.sapiens.com/investor-relations/ir-events-presentations.  

If you are unable to join live, a replay of the call will be accessible until March 4, 2020, as follows:

North America: +1-877-456-0009; International: +972-3-925-5900.

A recorded version of the webcast will also be available via the Sapiens website, for three months at the same location.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP revenue, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributed to Sapiens shareholders, non-GAAP basic and diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash-Flow.

Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens' financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing the Company's financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: Valuation adjustment on acquired deferred revenue, amortization of capitalized software development and other intangible assets, capitalization of software development, stock-based compensation, compensation related to acquisition and acquisition-related costs, restructuring and cost reduction costs, and tax adjustments related to non-GAAP adjustments.

Management of the Company does not consider these non-GAAP measures in isolation, or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations, as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures.

To compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.

The Company defines Adjusted EBITDA as net profit, adjusted for valuation adjustment on acquired deferred revenue, stock-based compensation expense, depreciation and amortization, capitalized of software development costs, compensation expenses related to acquisition and acquisition-related costs, restructuring and cost reduction costs, financial expense (income), provision for income taxes and other income (expenses). These amounts are often excluded by other companies to help investors understand the operational performance of their business.

The Company uses Adjusted EBITDA as a measurement of its operating performance, because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflects an additional way of viewing aspects of the operations that the Company believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting its business. The Company uses Adjusted Free Cash-Flow as a measurement of its operating performance, and reconciles cash-flow from operating activities to Adjusted Free Cash-Flow, while reducing the amounts for capitalization of software development costs and capital expenditures. The Company adds back cash payments made for former acquisitions in respect of future performance targets and retention criteria as determined upon acquisition date of the respective acquired company, which were included in the cash-flow from operating activities. We believe that Adjusted Free Cash-Flow is useful in evaluating our business, because Adjusted Free Cash-Flow reflects the cash surplus available to fund the expansion of our business.

About Sapiens

Sapiens International Corporation empowers insurers to succeed in an evolving industry. The company offers digital software platforms, solutions and services for the property and casualty, life, pension and annuity, reinsurance, financial and compliance, workers' compensation and financial markets. With more than 35 years of experience delivering to more than 600 organizations globally, Sapiens has a proven ability to satisfy customers' core, data and digital requirements. For more information: www.sapiens.com.

Forward Looking Statements

Certain matters discussed in this prospectus supplement, the accompanying prospectus and the other documents we have filed with the SEC that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words "anticipate," "believe," "estimate," "expect," "may," "will," "plan" and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the COVID-19 (coronavirus) pandemic, which may last longer than expected and materially adversely affect our results of operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers' systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses and epidemics like the recent novel coronavirus outbreak, or fluctuations in currency exchange rates; and risks related to our principal location in Israel and our status as a Cayman Islands company.

While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading "Risk Factors" in this prospectus supplement and in the accompanying prospectus, and under the heading "Risk Factors" in our most recent Annual Report on Form 20-F and in our other filings with the SEC that are incorporated by reference in this prospectus supplement and the accompanying prospectus, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus supplement, to conform these statements to actual results or to changes in our expectations.

Investors and Media Contact

Sapiens
Daphna Golden
Vice President, Head of Investor Relations
Email: ir@sapiens.com

Hayden IR
Brett Mass
Managing Partner
Phone: +1 646-536-7331
Email: Brett.Masss@HaydenIR.com

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
			Three months ended				Year ended
			December 31				December 31,
			2020		2019		2020		2019
			(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue			101,661		86,715		382,903		325,674
Cost of revenue			60,288		51,782		226,929		196,153
Gross profit			41,373		34,933		155,974		129,521
Operating expenses:
	Research and development, net		11,129		10,233		41,358		37,378
	Selling, marketing, general and administrative		20,019		14,477		69,613		54,274
Total operating expenses			31,148		24,710		110,971		91,652
Operating income			10,225		10,223		45,003		37,869
Financial and other expenses, net			1,212		1,019		3,805		2,768
Taxes on income			611		2,260		7,041		8,610
Net income			8,402		6,944		34,157		26,491
Attributable to non-controlling interest			83		110		382		244
Net income attributable to Sapiens' shareholders			8,319		6,834		33,775		26,247
Basic earnings per share			0.16		0.14		0.67		0.53
Diluted earnings per share			0.15		0.13		0.65		0.52
Weighted average number of shares outstanding used to compute basic earnings per share (in thousands)			53,715		50,109		51,208		50,031
Weighted average number of shares outstanding used to compute diluted earnings per share (in thousands)			54,541		51,009		52,159		50,653

 

              

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED NON-GAAP STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
			Three months ended				Year ended
			December 31				December 31,
			2020		2019		2020		2019
			(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue			102,936		86,715		384,501		325,674
Cost of revenue			55,892		48,313		211,560		182,662
Gross profit			47,044		38,402		172,941		143,012
Operating expenses:
	Research and development, net		12,733		11,395		47,156		43,043
	Selling, marketing, general and administrative		15,645		12,662		57,863		47,763
Total operating expenses			28,378		24,057		105,019		90,806
Operating income			18,666		14,345		67,922		52,206
Financial and other expenses, net			1,212		1,019		3,805		2,768
Taxes on income			2,910		2,663		11,776		10,298
Net income			14,544		10,663		52,341		39,140
Attributable to non-controlling interest			83		110		382		244
Net income attributable to Sapiens' shareholders			14,461		10,553		51,959		38,896
Basic earnings per share			0.27		0.21		1.01		0.78
Diluted earnings per share			0.27		0.21		1.00		0.77
Weighted average number of shares outstanding used to compute basic earnings per share (in thousands)			53,715		50,109		51,208		50,031
Weighted average number of shares outstanding used to compute diluted earnings per share (in thousands)			54,541		51,009		52,159		50,653

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)
		Three months ended				Year ended
		December 31,				December 31,
		2020		2019		2020		2019
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
GAAP revenue		101,661		86,715		382,903			325,674
Valuation adjustment on acquired deferred revenue		1,275		-		1,598			-
Non-GAAP revenue		102,936		86,715		384,501			325,674
GAAP gross profit		41,373		34,933		155,974			129,521
Revenue adjustment		1,275		-		1,598			-
Amortization of capitalized software		1,931		1,499		6,558			5,668
Amortization of other intangible assets		2,465		1,970		8,811			7,823
Non-GAAP gross profit		47,044		38,402		172,941			143,012
GAAP operating income		10,225		10,223		45,003			37,869
Gross profit adjustments		5,671		3,469		16,967			13,491
Capitalization of software development		(1,604)		(1,162)		(5,798)			(5,665)
Amortization of other intangible assets		1,204		563		3,316			2,177
Stock-based compensation		1,240		282		3,987			1,405
Acquisition-related costs *)		1,930		970		4,447			2,929
Non-GAAP operating income		18,666		14,345		67,922			52,206
GAAP net income attributable to Sapiens'   shareholders		8,319		6,834		33,775			26,247
Operating income adjustments		8,441		4,122		22,919			14,337
Taxes on income		(2,299)		(403)		(4,735)			(1,688)
Non-GAAP net income attributable to   Sapiens' shareholders		14,461		10,553		51,959			38,896

 

(*) Acquisition-related costs pertain to charges on behalf of M&A agreements related to future performance targets and retention criteria, as well as third-party services, such as, tax, accounting and legal rendered until the acquisition date.

 

 

Summary of NON-GAAP Financial Information
U.S. dollars in thousands (except per share amounts)
	Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q4 2019
Revenues	102,936		97,968		93,063		90,534		86,715
Gross profit	47,044		44,206		41,900		39,791		38,402
Operating income	18,666		17,859		16,783		14,614		14,345
Net income to Sapiens' shareholders	14,461		13,746		13,340		10,412		10,553
Adjusted EBITDA	20,032		19,010		17,854		15,724		15,271
Basic earnings per share	0.27		0.27		0.27		0.21		0.21
Diluted earnings per share	0.27		0.27		0.26		0.20		0.21

 

 

Non-GAAP Revenues by Geographic Breakdown
U.S. dollars in thousands
	Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q4 2019
North America	47,303		49,979		46,610		44,567		41,787
Europe	49,225		42,394		41,030		40,232		37,504
Rest of the world	6,408		5,595		5,423		5,735		7,424
Total	102,936		97,968		93,063		90,534		86,715

 

 

Adjusted Free Cash-Flow
U.S. dollars in thousands
	Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q4 2019
Cash-flow from operating activities	21,030		16,705		14,761		5,759		21,429
Increase in capitalized software development costs	(1,604)		(1,506)		(1,251)		(1,437)		(1,162)
Capital expenditures	(725)		(963)		(393)		(552)		(2,456)
Free cash-flow	18,701		14,236		13,117		3,770		17,811
Cash payments attributed to acquisition-related costs(*) (**)	2,363		242		1,562		737		200
Adjusted free cash-flow	21,064		14,478		14,679		4,507		18,011

 

(*) Included in cash-flow from operating activities

(**) Acquisition-related payments pertain to payments on behalf of M&A agreements related to future performance targets and retention criteria, as well as third-party services, such as, tax, accounting and legal rendered until the acquisition date.

 

 

 

Adjusted EBITDA Calculation
U.S. dollars in thousands
		Three months ended				Year ended
		December 31,				December 31,
		2020		2019		2020		2019
GAAP operating profit		10,225		10,223		45,003		37,869
Non-GAAP adjustments:
Valuation adjustment on acquired deferred revenue		1,275		-		1,598		-
Amortization of capitalized software		1,931		1,499		6,558		5,668
Amortization of other intangible assets		3,669		2,533		12,127		10,000
Capitalization of software development		(1,604)		(1,162)		(5,798)		(5,665)
Stock-based compensation		1,240		282		3,987		1,405
Compensation related to acquisition and acquisition-related costs		1,930		970		4,447		2,929
Non-GAAP operating profit		18,666		14,345		67,922		52,206
Depreciation		1,366		926		4,698		3,470
Adjusted EBITDA		20,032		15,271		72,620		55,676

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
			December 31,		December 31,
			2020		2019
			(unaudited)		(unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents		152,561		66,295
	Short-term bank deposit		30,000		-
	Trade receivables, net and unbilled receivables		65,409		50,221
	Investment in restricted deposit		-		22,890
	Other receivables and prepaid expenses		19,388		7,817
	Total current assets		267,358		147,223
LONG-TERM ASSETS
	Property and equipment, net		16,970		16,601
	Severance pay fund		6,582		5,106
	Goodwill and intangible assets, net		363,597		228,691
	Operating lease right-of-use assets		54,390		49,539
	Other long-term assets		5,264		5,261
	Total long-term assets		446,803		305,198
TOTAL ASSETS			714,161		452,421
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Trade payables		5,389		5,107
	Current maturities of Series B Debentures		19,796		9,898
	Accrued expenses and other liabilities		75,119		60,574
	Current maturities of operating lease liabilities		9,924		8,312
	Deferred revenue		34,548		21,021
	Total current liabilities		144,776		104,912
LONG-TERM LIABILITIES
	Series B Debentures, net of current maturities		98,676		58,850
	Deferred tax liabilities		16,010		5,082
	Other long-term liabilities		12,129		8,321
	Long-term operating lease liabilities		48,773		43,394
	Accrued severance pay		9,586		6,364
	Total long-term liabilities		185,174		122,011
REDEEMABLE NON-CONTROLLING INTEREST			517		-
EQUITY			383,694		225,498
TOTAL LIABILITIES AND EQUITY			714,161		452,421

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOW
U.S. dollars in thousands
	For the twelve months ended December 31,
	2020	2019
	(unaudited)	(unaudited)
Cash flows from operating activities:
Net income	34,157	26,491
Reconciliation of net income to net cash provided by operating activities:
Impairment of right of use asset	351	-
Depreciation and amortization	23,383	19,138
Accretion of discount on Series B Debentures	134	171
Capital loss (gain) from sale of property and equipment	44	(40)
Stock-based compensation related to options issued to employees	3,987	1,405
Net changes in operating assets and liabilities, net of amount acquired:
Trade receivables, net and unbilled receivables	(5,168)	10,514
Deferred tax assets, net	(16)	(6,441)
Other operating assets	(2,049)	6,726
Trade payables	(1,344)	(1,476)
Other operating liabilities	1,435	6,667
Deferred revenues	2,992	2,747
Accrued severance pay, net	349	255
Net cash provided by operating activities	58,255	66,157
Cash flows from investing activities:
Purchase of property and equipment	(2,633)	(11,474)
Investment in deposit	(30,397)	(1,119)
Proceeds from sale of property and equipment	12	834
Proceeds from (investment in) restricted deposit used for completed acquisition	22,890	(22,890)
Payments for business acquisitions, net of cash acquired	(95,866)	(1,554)
Capitalized software development costs	(5,798)	(5,665)
Acquisition of intellectual property	(2,810)	-
Net cash used in investing activities	(114,602)	(41,868)
Cash flows from financing activities:
Proceeds from employee stock options exercised	5,050	780
Distribution of dividend	(7,044)	(11,009)
Repayment of Series B Debenture	(9,898)	(9,898)
Proceeds from issuance of Series B Debentures	60,346	-
Receipt of short-term loan	20,000	-
Repayment of loan	(20,000)	(4)
Payment of contingent considerations	(538)	(374)
Acquisition of minority interests	(147)	-
Dividend to non-controlling interest	-	(149)
Repayment of loan of acquired subsidiary	(13,186)	-
Proceeds from issuance of ordinary shares, net of issuance expenses	108,737	-
Net cash provided by (used in) financing activities	143,320	(20,654)
Effect of exchange rate changes on cash and cash equivalents	(707)	(1,968)
Increase in cash and cash equivalents	86,266	1,667
Cash and cash equivalents at the beginning of period	66,295	64,628
Cash and cash equivalents at the end of period	152,561	66,295

 

Debentures Covenants

As of December 31, 2020, Sapiens was in compliance with all of its financial covenants under the indenture for the Series B Debentures, based on having achieved the following in its consolidated financial results:

Covenant 1

• Target shareholders' equity (excluding minority interest): above $120 million.
• Actual shareholders' equity (excluding minority interest) equal to $382 million.

Covenant 2

• Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company's Series B Debentures) below 65%.
• Actual ratio of net financial indebtedness to net capitalization equal to (9.75)%.

Covenant 3

• Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5.
• Actual ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is equal to (0.47).

 

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SOURCE Sapiens International Corporation

FAQ

What were Sapiens' Q4 2020 revenue results?

Sapiens reported Q4 2020 revenue of $101.7 million, a 17.2% increase from Q4 2019.

How did Sapiens' net income perform in 2020?

Sapiens' net income for 2020 was $33.8 million, up 28.7% from 2019.

What is the EPS for Sapiens in 2020?

Sapiens reported diluted EPS of $0.65 for 2020, a 25% increase compared to $0.52 in 2019.

What guidance has Sapiens provided for 2021?

Sapiens anticipates 2021 Non-GAAP revenue in the range of $457 million to $463 million.

How did Sapiens' operating margin change in 2020?

Sapiens' Non-GAAP operating margin improved to 17.7% for the full year 2020.