Sapiens Reports Fourth Quarter 2024 Financial Results

Rhea-AI Summary

Sapiens International (NASDAQ: SPNS) reported its Q4 2024 financial results, showing revenue of $134.3 million, a 2.6% year-over-year increase. The company's Q4 GAAP net income rose 5.3% to $17.9 million, with diluted EPS of $0.32.

For the full year 2024, revenue increased 5.4% to $542.4 million, with GAAP net income growing 15.6% to $72.2 million. North America led global performance with a 6.3% year-over-year revenue increase. The company's gross margin improved by 120 basis points to 43.9%.

Looking ahead, Sapiens provided 2025 guidance for non-GAAP revenue between $553-558 million and non-GAAP operating profit of $98-102 million, targeting an operating margin of 18% at the midpoint. On a constant currency basis, the projected growth rate would be 3.4% with an operating margin of 18.7%.

Positive

• Q4 2024 revenue increased 2.6% YoY to $134.3 million
• Full-year 2024 revenue grew 5.4% to $542.4 million
• GAAP net income for 2024 increased 15.6% to $72.2 million
• North America revenue grew 6.3% YoY
• Gross margin improved by 120 basis points to 43.9%

Negative

• Q4 2024 non-GAAP operating margin declined 20 basis points to 18.2%
• Full-year non-GAAP operating margin decreased 10 basis points to 18.2%
• Projected 2025 constant currency growth rate of 3.4% shows slower growth compared to 2024

Insights

Financial Analyst

The Q4 2024 results reveal a company executing well on multiple fronts, with particularly noteworthy improvements in profitability metrics. The 200 basis points expansion in GAAP gross margin to 44.8% demonstrates successful cost optimization and operational efficiency initiatives. North America's 6.3% revenue growth highlights the company's strong position in its largest market, while the overall 5.4% annual revenue growth to $542.4 million reflects healthy business momentum.

The company's strategic focus on cloud migration through its Microsoft partnership is particularly significant for long-term growth. This transition typically leads to higher recurring revenue and improved customer retention, while potentially reducing implementation costs and deployment times. The 15.6% increase in annual GAAP net income to $72.2 million suggests these strategic initiatives are already yielding financial benefits.

Looking ahead, the 2025 guidance of $553-558 million in revenue implies a more modest growth rate, but the projected 18% operating margin at midpoint indicates continued focus on profitability. The constant currency growth rate of 3.4% and operating margin of 18.7% provide a clearer picture of underlying business performance, excluding foreign exchange impacts.

The emphasis on modular, open insurance platforms integrated with AI and advanced analytics positions Sapiens well in an industry increasingly focused on digital transformation. This strategic direction, combined with improved margins and steady growth in recurring revenue, suggests a sustainable growth trajectory, particularly as insurance companies accelerate their technological modernization efforts.

ROCHELLE PARK, N.J., Feb. 18, 2025 /PRNewswire/ -- 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 fourth quarter ended December 31, 2024.

 

 

Summary Results for Fourth Quarter 2024 (USD in millions, except per share data)
	GAAP			Non-GAAP
	Q4 2024	Q4 2023	% Change	Q4 2024	Q4 2023	% Change
Revenue	$134.3	$130.9	2.6 %	$134.3	$130.9	2.6 %
Gross Profit	$60.1	$55.9	7.5 %	$62.7	$59.4	5.6 %
Gross Margin	44.8 %	42.8 %	200 bps	46.7 %	45.4 %	130 bps
Operating Income	$21.7	$20.1	8.0 %	$24.5	$24.2	1.3 %
Operating Margin	16.2 %	15.4 %	80 bps	18.2 %	18.4 %	-20 bps
Net Income (*)	$17.9	$17.0	5.3 %	$20.7	$20.1	3.1 %
Diluted EPS	$0.32	$0.30	6.7 %	$0.37	$0.36	2.8 %

 

Summary Results for Full Year end 2024 (USD in millions, except per share data)
	GAAP		% Change	Non-GAAP		% Change
	2024	2023		2024	2023
Revenue	$542.4	$514.6	5.4 %	$542.4	$514.8	5.4 %
Gross Profit	$238.1	$219.6	8.4 %	$248.9	$233.0	6.8 %
Gross Margin	43.9 %	42.7 %	120 bps	45.9 %	45.3 %	60 bps
Operating Income	$85.8	$78.9	8.9 %	$98.7	$94.1	4.8 %
Operating Margin	15.8 %	15.3 %	50 bps	18.2 %	18.3 %	-10 bps
Net income (*)	$72.2	$62.4	15.6 %	$83.3	$75.0	11.0 %
Diluted EPS	$1.29	$1.12	15.2 %	$1.48	$1.35	9.6 %

(*) Attributable to Sapiens' shareholders

Roni Al-Dor, President and CEO of Sapiens, stated, "In the fourth quarter we achieved $134 million in revenue, a 2.6% year over year increase. This quarter showcased solid execution across our key regions and ongoing growth of our core Life business. For the full year 2024, we delivered a 5.4% increase in revenue, reflecting the signing of deals with new and existing customers. North America led our global performance with a 6.3% year-over-year revenue increase. By leveraging our Microsoft cloud strategy and scalable SaaS platform, we are accelerating our clients' migration to the cloud."

"Our continued investment in a future-proof, modular, open insurance platform-integrating core capabilities with advanced data analytics and AI-is set to drive further growth. We are well positioned to deepen relationships with existing customers, capture additional market share, and strengthen growth across all regions."

"We are introducing 2025 guidance for non-GAAP revenue in a range of $553 million to $558 million, and non-GAAP operating profit in a range of $98 million to $102 million with operating margin of 18% at the midpoint. On a constant currency basis, our growth rate would be 3.4%, and our operating margin would be 18.7% at the mid-point."

Quarterly Results Conference Call

Management will host a conference call and webcast today, February 18, 2025, 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: 972-3-9180644
UK: 0-800-917-5108

The live webcast of the call can be viewed on Sapiens' website at: veidan.activetrail.biz/sapiensq4-2024. A replay of the call will be available one business day following the completion of the event at the same link for 90 days.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP revenue, ARR, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, 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 Annual Recurring Revenue ("ARR") as the annualized value of our revenue from customer subscriptions, term licenses, maintenance, application maintenance, and cloud solutions, which may not be the same as the timing and amount of revenue recognized. The ARR run rate is equal to the product of (i) the sum of these revenues in our most recently completed fiscal quarter, multiplied by (ii) four.

The Company defines Adjusted EBITDA as net profit, adjusted to eliminate valuation adjustment on acquired deferred revenue, stock-based compensation expense, depreciation and amortization, capitalization 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 as well, in order 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 (NASDAQ and TASE: SPNS) is a global leader in intelligent insurance software solutions. With Sapiens' robust platform, customer-driven partnerships, and rich ecosystem, insurers are empowered to future-proof their organizations with operational excellence in a rapidly changing marketplace. We help insurers harness the power of AI and advanced automation to support core solutions for property and casualty, workers' compensation, and life insurance, including reinsurance, financial & compliance, data & analytics, digital, and decision management. Sapiens boasts a longtime global presence, serving over 600 customers in more than 30 countries with its innovative SaaS offerings. Recognized by industry experts and selected for the Microsoft Top 100 Partner program, Sapiens is committed to partnering with our customers for their entire transformation journey and is continuously innovating to ensure their success.

Investor and Media Contact Yaffa Cohen-Ifrah Chief Marketing Officer and Head of Investor Relations, Sapiens Yaffa.cohen-ifrah@sapiens.com +1 917-533-4782

Investor Contacts Brett Maas Managing Partner, Hayden IR +1 646-536-7331 brett@haydenir.com Kimberly Rogers Managing Director, Hayden IR +1 541-904-5075 kim@HaydenIR.com

 

Forward Looking Statements

Certain matters discussed in this press release that are incorporated herein 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 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 pandemic, which adversely affected our results of operations, 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 our most recent Annual Report on Form 20-F, 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, to conform these statements to actual results or to changes in our expectations.

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
U.S. dollars in thousands (except per share amounts)
			Three months ended				Year ended
			December 31,				December 31,
			2024		2023		2024		2023
			(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue			134,305		130,859		542,379		514,584
Cost of revenue			74,158		74,910		304,272		294,990
Gross profit			60,147		55,949		238,107		219,594
Operating expenses:
	Research and development, net		16,523		16,084		66,302		63,475
	Selling, marketing, general and  administrative		21,926		19,776		85,956		77,251
Total operating expenses			38,449		35,860		152,258		140,726
Operating income			21,698		20,089		85,849		78,868
Financial and other expenses (income), net			(864)		(560)		(3,978)		1,750
Taxes on income			4,695		3,624		17,507		14,251
Net income			17,867		17,025		72,320		62,867
Attributable to non-controlling interest			-		52		141		423
Net income attributable to Sapiens'  shareholders			17,867		16,973		72,179		62,444
Basic earnings per share			0.32		0.30		1.29		1.13
Diluted earnings per share			0.32		0.30		1.29		1.12
Weighted average number of shares outstanding used to compute basic earnings per share (in thousands)			55,887		55,733		55,821		55,372
Weighted average number of shares outstanding used to compute diluted earnings per share (in thousands)			56,164		55,910		56,154		55,721

 

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,
		2024		2023		2024		2023
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
GAAP revenue		134,305		130,859		542,379			514,584
Valuation adjustment on acquired deferred revenue		-		55		-			220
Non-GAAP revenue		134,305		130,914		542,379			514,804
GAAP gross profit		60,147		55,949		238,107			219,594
Revenue adjustment		-		55		-			220
Amortization of capitalized software		1,540		1,501		6,124			5,775
Amortization of other intangible assets		1,005		1,865		4,635			7,396
Non-GAAP gross profit		62,692		59,370		248,866			232,985
GAAP operating income		21,698		20,089		85,849			78,868
Gross profit adjustments		2,545		3,421		10,759			13,391
Capitalization of software development		(1,759)		(1,543)		(7,133)			(6,518)
Amortization of other intangible assets		1,211		1,169		4,943			4,403
Stock-based compensation		723		698		2,952			3,658
Acquisition-related costs (*)		50		318		1,298			339
Non-GAAP operating income		24,468		24,152		98,668			94,141
GAAP net income attributable to Sapiens'  shareholders		17,867		16,973		72,179			62,444
Operating income adjustments		2,770		4,063		12,819			15,273
Taxes on income		73		(955)		(1,735)			(2,693)
Non-GAAP net income attributable to Sapiens' shareholders		20,710		20,081		83,263			75,024

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

 

Adjusted EBITDA Calculation
U.S. dollars in thousands
		Three months ended				Year ended
		December 31,				December 31,
		2024		2023		2024		2023
GAAP operating profit		21,698		20,089		85,849		78,868
Non-GAAP adjustments:
Valuation adjustment on acquired deferred revenue		-		55		-		220
Amortization of capitalized software		1,540		1,501		6,124		5,775
Amortization of other intangible assets		2,216		3,034		9,578		11,799
Capitalization of software development		(1,759)		(1,543)		(7,133)		(6,518)
Stock-based compensation		723		698		2,952		3,658
Compensation related to acquisition and acquisition-related costs		50		318		1,298		339
Non-GAAP operating profit		24,468		24,152		98,668		94,141
Depreciation		891		1,115		4,371		3,865
Adjusted EBITDA		25,359		25,267		103,039		98,006

 

Summary of NON-GAAP Financial Information
U.S. dollars in thousands (except per share amounts)
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023
Revenues	134,305		137,025		136,800		134,249		130,914
Gross profit	62,692		62,809		62,481		60,884		59,370
Operating income	24,468		25,101		24,836		24,263		24,152
Adjusted EBITDA	25,359		26,389		25,931		25,360		25,267
Net income to Sapiens' shareholders	20,710		21,091		21,041		20,421		20,081
Diluted earnings per share	0.37		0.37		0.37		0.36		0.36

 

Annual Recurring Revenue ("ARR")
U.S. dollars in thousands
	Three months ended
	December 31,
	2024		2023
Annual Recurring Revenue	175,542		164,840

 

Non-GAAP Revenues by Geographic Breakdown
U.S. dollars in thousands
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023
North America	56,753		55,755		57,918		55,158		54,882
Europe	65,903		69,281		66,072		68,727		65,239
Rest of the World	11,649		11,989		12,810		10,364		10,793
Total	134,305		137,025		136,800		134,249		130,914

 

Non-GAAP Revenue breakdown
U.S. dollars in thousands
	Three months ended				Year ended
	December 31,				December 31,
	2024		2023		2024		2023
Software products and re-occurring post-production services (*)	97,336		90,399		390,328		342,156
Pre-production implementation services (**)	36,969		40,515		152,051		172,648
Total Revenues	134,305		130,914		542,379		514,804

 

	Three months ended				Year ended
	December 31,				December 31,
	2024		2023		2024		2023
Software products and re-occurring post-production services (*)	52,356		48,815		208,742		182,154
Pre-production implementation services (**)	10,336		10,555		40,124		50,831
Total Gross profit	62,692		59,370		248,866		232,985

 

	Three months ended				Year ended
	December 31,				December 31,
	2024		2023		2024		2023
Software products and re-occurring post-production services (*)	53.8 %		54.0 %		53.5 %		53.2 %
Pre-production implementation services (**)	28.0 %		26.1 %		26.4 %		29.4 %
Gross Margin	46.7 %		45.4 %		45.9 %		45.3 %

^{(*) Software products and re-occurring post-production services include mainly subscription, term license, maintenance, application maintenance, cloud solutions and post-production services. This revenue stream is a mix of recurring and re-occurring in nature. 
(**) Pre-production implementation services include mainly implementation services before go-live, which are one-time in nature.}

 

Adjusted Free Cash-Flow
U.S. dollars in thousands
	Q4 2024		Q3 2024		Q2 2024		Q1 2024		Q4 2023
Cash-flow from operating activities	42,109		13,083		8,545		18,488		38,646
Increase in capitalized software development costs	(1,759)		(1,834)		(1,823)		(1,717)		(1,543)
Capital expenditures	(419)		(1,125)		(666)		(466)		(421)
Free cash-flow	39,931		10,124		6,056		16,305		36,682
Cash payments attributed to acquisition-related costs(*) (**)	1,238		124		134		751		221
Adjusted free cash-flow	41,169		10,248		6,190		17,056		36,903

 

^(*) Included in cash-flow from operating activities
^(**) Acquisition-related payments pertain to charges on behalf of M&A agreements related to future performance targets and retention criteria, as well as completed or prospective third-party services, such as tax, accounting and legal rendered.

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
			December 31,		December 31,
			2024		2023
			(unaudited)		(unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents		163,690		126,716
	Short-term bank deposit		52,500		75,400
	Trade receivables, net and unbilled receivables		99,603		90,273
	Other receivables and prepaid expenses		19,350		22,514
	Total current assets		335,143		314,903
LONG-TERM ASSETS
	Property and equipment, net		10,656		12,661
	Severance pay fund		3,208		3,605
	Goodwill and intangible assets, net		302,472		317,352
	Operating lease right-of-use assets		20,746		23,557
	Other long-term assets		19,486		17,546
	Total long-term assets		356,568		374,721
TOTAL ASSETS			691,711		689,624
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Trade payables		8,414		6,291
	Current maturities of Series B Debentures		19,796		19,796
	Accrued expenses and other liabilities		77,390		77,873
	Current maturities of operating lease liabilities		6,440		6,623
	Deferred revenue		37,543		38,541
	Total current liabilities		149,583		149,124
LONG-TERM LIABILITIES
	Series B Debentures, net of current maturities		19,792		39,543
	Deferred tax liabilities		6,899		10,820
	Other long-term liabilities		10,331		11,538
	Long-term operating lease liabilities		17,719		21,084
	Accrued severance pay		7,758		7,568
	Total long-term liabilities		62,499		90,553
EQUITY			479,629		449,947
TOTAL LIABILITIES AND EQUITY			691,711		689,624

 

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,
	2024		2023
	(unaudited)		(unaudited)
Cash flows from operating activities:
Net income	72,320		62,867
Reconciliation of net income to net cash provided by operating activities:
Depreciation	4,371		3,865
Amortization of capitalized software and other intangible assets	15,702		17,574
Accretion of discount on Series B Debentures	44		64
Capital loss from sale of property and equipment	19		195
Stock-based compensation related to options issued to employees	2,952		3,658
Net changes in operating assets and liabilities, net of amount acquired:
Decrease (increase) in trade receivables, net and unbilled receivables	(12,500)		3,960
Decrease in deferred tax liabilities, net	(5,934)		(3,003)
Decrease (increase) in other operating assets	5,343		(5,402)
Increase (decrease) in trade payables	2,126		(3,580)
Decrease in other operating liabilities	(2,558)		(8,948)
Increase (decrease) in deferred revenues	(407)		7,266
Increase in accrued severance pay, net	747		909
Net cash provided by operating activities	82,225		79,425
Cash flows from investing activities:
Purchase of property and equipment	(2,879)		(2,574)
Proceeds from (investments in) deposits	23,592		(55,499)
Proceeds from sale of property and equipment	203		48
Payments for business acquisitions, net of cash acquired	(375)		(8,060)
Capitalized software development costs	(7,133)		(6,518)
Acquisition of intellectual property	-		(177)
Net cash provided by (used in) investing activities	13,408		(72,780)
Cash flows from financing activities:
Proceeds from employee stock options exercised	98		4,809
Distribution of dividend	(31,823)		(28,144)
Repayment of Series B Debenture	(19,796)		(19,796)
Acquisition deferred payment	(630)		-
Acquisition of non-controlling interests	(4,131)		(161)
Dividend to non-controlling interest	-		(47)
Net cash used in financing activities	(56,282)		(43,339)
Effect of exchange rate changes on cash and cash equivalents	(2,377)		3,125
Increase (decrease) in cash and cash equivalents	36,974		(33,569)
Cash and cash equivalents at the beginning of period	126,716		160,285
Cash and cash equivalents at the end of period	163,690		126,716

 

Debentures Covenants

As of December 31, 2024, 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 non-controlling interest): above $120 million.
• Actual shareholders' equity (excluding non-controlling interest) equal to $479.6 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 (57.93)%.

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 (1.71).

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View original content:https://www.prnewswire.com/news-releases/sapiens-reports-fourth-quarter-2024-financial-results-302378798.html

SOURCE Sapiens International Corporation

FAQ

What was Sapiens (SPNS) revenue growth in Q4 2024?

Sapiens reported Q4 2024 revenue of $134.3 million, representing a 2.6% increase compared to Q4 2023.

How much did Sapiens (SPNS) earn per share in Q4 2024?

Sapiens reported Q4 2024 GAAP diluted EPS of $0.32, up 6.7% from $0.30 in Q4 2023.

What is Sapiens (SPNS) revenue guidance for 2025?

Sapiens provided 2025 guidance for non-GAAP revenue between $553 million and $558 million.

What was Sapiens (SPNS) full-year 2024 net income?

Sapiens reported full-year 2024 GAAP net income of $72.2 million, a 15.6% increase from 2023.

How did Sapiens (SPNS) perform in North America during 2024?

Sapiens' North America region led global performance with a 6.3% year-over-year revenue increase in 2024.