Sapiens Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Sapiens International (NASDAQ: SPNS) reported its Q2 2024 financial results, showing revenue growth of 6.6% to $136.8 million. Non-GAAP operating profit reached $24.8 million, representing 18.2% of total revenue. Net income grew by 13%, with diluted EPS increasing 12.1% to $0.37. The company demonstrated strong execution, particularly in North America and Europe.

Sapiens reiterated its 2024 guidance, projecting non-GAAP revenues between $550-$555 million and a non-GAAP operating margin of 18.1%-18.5%. The company's performance reflects its position as a leading global provider of software solutions for the insurance industry.

Positive

• Revenue increased 6.6% year-over-year to $136.8 million
• Non-GAAP operating profit reached $24.8 million, 18.2% of total revenue
• Net income grew by 13% compared to Q2 2023
• Diluted EPS increased 12.1% to $0.37
• Strong growth reported in North America and Europe

Negative

• None.

Insights

Financial Analyst

Sapiens International 's Q2 2024 results demonstrate solid financial performance and growth. Revenue increased by 6.6% year-over-year to $136.8 million, while non-GAAP net income grew by 13.1% to $21.0 million. The company's gross margin improved by 50 basis points to 45.7% on a non-GAAP basis, indicating enhanced operational efficiency.

Key highlights include:

• Strong growth in North America and Europe markets
• Maintained non-GAAP operating margin at 18.2%
• Diluted EPS increased by 12.1% to $0.37 on a non-GAAP basis

The company's reiterated guidance for 2024, projecting non-GAAP revenues between $550 million and $555 million with an operating margin range of 18.1%-18.5%, suggests confidence in sustained growth and profitability. This outlook, combined with the current results, indicates a stable trajectory for Sapiens in the competitive insurance software solutions market.

However, investors should note the difference between GAAP and non-GAAP metrics, particularly in operating income and net income. The adjustments made for non-GAAP figures, while providing insight into core operations, may not fully reflect all aspects of the company's financial position.

Tech Industry Analyst

Sapiens' Q2 results reflect the ongoing digital transformation in the insurance industry. The 6.6% revenue growth underscores the increasing demand for advanced software solutions in this sector. As insurers worldwide accelerate their technological upgrades, Sapiens' position as a leading provider of these solutions bodes well for its future prospects.

The company's performance in North America and Europe is particularly noteworthy. These mature markets are typically at the forefront of adopting new technologies, suggesting that Sapiens' products are meeting the evolving needs of sophisticated clients. This could potentially lead to increased market share and recurring revenue streams.

However, the tech sector is known for its rapid pace of innovation and intense competition. While Sapiens' current growth is commendable, maintaining this momentum will require continuous investment in R&D and possibly strategic acquisitions to expand its product portfolio. The absence of specific details on new product developments or technological advancements in this report is a point of interest that investors might want to follow up on in future communications.

The company's ability to maintain its operating margin while growing revenue is a positive sign, indicating scalability in its business model. This could be attributed to the recurring nature of software subscriptions and maintenance contracts, which typically offer higher margins compared to one-time sales.

ROCHELLE PARK, N.J., Aug. 1, 2024 /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 second quarter ended June 30, 2024.

 

Summary Results for Second Quarter 2024 (USD in millions, except per share data)
	GAAP			Non-GAAP
	Q2 2024	Q2 2023	% Change	Q2 2024	Q2 2023	% Change
Revenue	$136.8	$128.3	6.6 %	$136.8	$128.4	6.6 %
Gross Profit	$60.1	$54.7	10.0 %	$62.5	$58.0	7.7 %
Gross Margin	43.9 %	42.6 %	130 bps	45.7 %	45.2 %	50 bps
Operating Income	$21.9	$19.6	11.5 %	$24.8	$23.4	6.1 %
Operating Margin	16.0 %	15.3 %	70 bps	18.2 %	18.2 %	0 bps
Net Income (*)	$18.6	$15.4	20.9 %	$21.0	$18.6	13.1 %
Diluted EPS	$0.33	$0.28	17.9 %	$0.37	$0.33	12.1 %
(*) Attributable to Sapiens' shareholders

 

Roni Al-Dor, President and CEO of Sapiens, stated, "We are pleased to report that revenue reached $137 million this quarter, reflecting a 6.6% increase over the same period last year. This quarter non-GAAP demonstrated our strong execution capabilities, particularly with robust growth in North America and Europe. This quarter's non-GAAP operating profit totaled $25 million, representing 18.2% of total revenue. Additionally, net income this quarter grew by 13%, and EPS per diluted share was $0.37 this quarter of 2024, up 12.1% from the second quarter of 2023".

"We reiterate our 2024 guidance for non-GAAP revenues in a range of $550 million to $555 million and for non-GAAP operating margin in a range of 18.1%-18.5%," concluded Mr. Al-Dor.

Quarterly Results Conference Call

Management will host a conference call and webcast on August 1, 2024, 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: https://veidan.activetrail.biz/sapiensq2-2024. 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) empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. With more than 40 years of industry expertise, Sapiens' cloud-based SaaS insurance platform offers pre-integrated, low-code capabilities across core, data and digital domains to accelerate our customers' digital transformation. Serving over 600 customers in more than  30 countries, Sapiens offers insurers across property and casualty, workers' compensation, and life insurance markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management. For more information visit www.sapiens.com or follow us on LinkedIn.

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.Maas@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 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, and 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, which we filled with the SEC on March 31, 2022, 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		Six months ended
		June 30,		June 30,
		2024	2023	2024	2023
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
Revenue		136,800	128,299	271,049	253,020
Cost of revenue		76,696	73,635	153,385	145,327
Gross profit		60,104	54,664	117,664	107,693
Operating expenses:
	Research and development, net	16,809	15,746	33,330	31,363
	Selling, marketing, general and administrative	21,412	19,297	41,929	37,816
Total operating expenses		38,221	35,043	75,259	69,179
Operating income		21,883	19,621	42,405	38,514
Financial and other expenses (income), net		(1,109)	562	(2,201)	1,759
Taxes on income		4,375	3,587	8,488	6,917
Net income		18,617	15,472	36,118	29,838
Attributable to non-controlling interest		-	69	141	239
Net income attributable to Sapiens' shareholders		18,617	15,403	35,977	29,599
Basic earnings per share		0.33	0.28	0.65	0.54
Diluted earnings per share		0.33	0.28	0.64	0.53
Weighted average number of shares outstanding used to compute basic earnings per share (in thousands)		55,797	55,196	55,771	55,176
Weighted average number of shares outstanding used to compute diluted earnings per share (in thousands)		56,163	55,582	56,072	55,576

 

 

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		Six months ended
	June 30,		June 30,
	2024	2023	2024	2023
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
GAAP revenue	136,800	128,299	271,049	253,020
Valuation adjustment on acquired deferred revenue	-	55	-	110
Non-GAAP revenue	136,800	128,354	271,049	253,130
GAAP gross profit	60,104	54,664	117,664	107,693
Revenue adjustment	-	55	-	110
Amortization of capitalized software	1,569	1,425	3,114	2,856
Amortization of other intangible assets	808	1,848	2,587	3,696
Non-GAAP gross profit	62,481	57,992	123,365	114,355
GAAP operating income	21,883	19,621	42,405	38,514
Gross profit adjustments	2,377	3,328	5,701	6,662
Capitalization of software development	(1,823)	(1,679)	(3,540)	(3,337)
Amortization of other intangible assets	1,223	1,084	2,456	2,160
Stock-based compensation	811	1,059	1,583	1,922
Acquisition-related costs *)	365	4	494	10
Non-GAAP operating income	24,836	23,417	49,099	45,931
GAAP net income attributable to Sapiens' shareholders	18,617	15,403	35,977	29,599
Operating income adjustments	2,953	3,796	6,694	7,417
Taxes on income	(529)	(589)	(1,209)	(1,153)
Non-GAAP net income attributable to Sapiens' shareholders	21,041	18,610	41,462	35,863
(*) 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		Six months ended
	June 30,		June 30,
	2024	2023	2024	2023
GAAP operating profit	21,883	19,621	42,405	38,514
Non-GAAP adjustments:
Valuation adjustment on acquired deferred revenue	-	55	-	110
Amortization of capitalized software	1,569	1,425	3,114	2,856
Amortization of other intangible assets	2,031	2,932	5,043	5,856
Capitalization of software development	(1,823)	(1,679)	(3,540)	(3,337)
Stock-based compensation	811	1,059	1,583	1,922
Compensation related to acquisition and acquisition-related costs	365	4	494	10
Non-GAAP operating profit	24,836	23,417	49,099	45,931
Depreciation	1,095	976	2,192	2,031
Adjusted EBITDA	25,931	24,393	51,291	47,962

 

 

Summary of NON-GAAP Financial Information  U.S. dollars in thousands (except per share amounts)
	Q2 2024		Q1 2024		Q4 2023		Q3 2023		Q2 2023
Revenues	136,800		134,249		130,914		130,760		128,354
Gross profit	62,481		60,884		59,370		59,260		57,992
Operating income	24,836		24,263		24,152		24,058		23,417
Adjusted EBITDA	25,931		25,360		25,267		24,777		24,393
Net income to Sapiens' shareholders	21,041		20,421		20,081		19,080		18,610
Diluted earnings per share	0.37		0.36		0.36		0.34		0.33

 

 

Annual Recurring Revenue ("ARR") U.S. dollars in thousands
	Three months ended
	June 30,
	2024		2023
	168,593		150,417

 

 

Non-GAAP Revenues by Geographic Breakdown U.S. dollars in thousands
	Q2 2024		Q1 2024		Q4 2023		Q3 2023		Q2 2023
North America	57,918		55,158		54,882		54,848		52,116
Europe	66,072		68,727		65,239		64,662		62,960
Rest of the World	12,810		10,364		10,793		11,250		13,278
Total	136,800		134,249		130,914		130,760		128,354

 

 

Non-GAAP Revenue breakdown U.S. dollars in thousands
	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Software products and re-occurring post-production services (*)	98,044		82,559		192,285		164,401
Pre-production implementation services (**)	38,756		45,795		78,764		88,729
Total Revenues	136,800		128,354		271,049		253,130

	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Software products and re-occurring post-production services (*)	52,237		42,437		102,577		87,286
Pre-production implementation services (**)	10,244		15,555		20,788		27,069
Total Gross profit	62,481		57,992		123,365		114,355

	Three months ended			Six months ended
	June 30,			June 30,
	2024		2023	2024	2023
Software products and re-occurring post-production services (*)	53.3 %		51.4 %	53.3 %	53.1 %
Pre-production implementation services (**)	26.4 %		34.0 %	26.4 %	30.5 %
Gross Margin	45.7 %		45.2 %	45.5 %	45.2 %
(*) 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
	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Cash-flow from operating activities	8,545	18,488	38,646	3,988	14,603
Increase in capitalized software development costs	(1,823)	(1,717)	(1,543)	(1,638)	(1,679)
Capital expenditures	(666)	(466)	(421)	(696)	(775)
Free cash-flow	6,056	16,305	36,682	1,654	12,149
Cash payments attributed to acquisition-related costs(*) (**)	134	751	221	-	-
Adjusted free cash-flow	6,190	17,056	36,903	1,654	12,149
(*) 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.

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET U.S. dollars in thousands
		June 30,	December 31,
		2024	2023
		(unaudited)	(unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents	122,646	126,716
	Short-term bank deposit	63,800	75,400
	Trade receivables, net and unbilled receivables	102,101	90,273
	Other receivables and prepaid expenses	20,258	22,514
	Total current assets	308,805	314,903
LONG-TERM ASSETS
	Property and equipment, net	12,065	12,661
	Severance pay fund	3,360	3,605
	Goodwill and intangible assets, net	307,231	317,352
	Operating lease right-of-use assets	20,505	23,557
	Other long-term assets	15,571	17,546
	Total long-term assets	358,732	374,721
TOTAL ASSETS		667,537	689,624
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Trade payables	11,296	6,291
	Current maturities of Series B Debentures	19,796	19,796
	Accrued expenses and other liabilities	74,057	77,873
	Current maturities of operating lease liabilities	5,705	6,623
	Deferred revenue	31,928	38,541
	Total current liabilities	142,782	149,124
LONG-TERM LIABILITIES
	Series B Debentures, net of current maturities	19,768	39,543
	Deferred tax liabilities	8,517	10,820
	Other long-term liabilities	11,469	11,538
	Long-term operating lease liabilities	17,816	21,084
	Accrued severance pay	7,443	7,568
	Total long-term liabilities	65,013	90,553
EQUITY		459,742	449,947
TOTAL LIABILITIES AND EQUITY		667,537	689,624

 

 

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOW U.S. dollars in thousands
	For the six months ended June 30,
	2024	2023
	(unaudited)	(unaudited)
Cash flows from operating activities:
Net income	36,118	29,838
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	10,349	10,743
Accretion of discount on Series B Debentures	22	32
Capital (gain) loss from sale of property and equipment	(9)	86
Stock-based compensation related to options issued to employees	1,583	1,922
Net changes in operating assets and liabilities, net of amount acquired:
Decrease (increase) in trade receivables, net and unbilled receivables	(12,723)	2,351
Increase (decrease) in deferred tax liabilities, net	(1,428)	45
Decrease (increase) in other operating assets	3,445	(390)
Increase (decrease) in trade payables	4,446	(1,014)
Decrease in other operating liabilities	(8,354)	(12,572)
Increase (decrease) in deferred revenues	(6,587)	5,284
Increase in accrued severance pay, net	171	466
Net cash provided by operating activities	27,033	36,791
Cash flows from investing activities:
Purchase of property and equipment	(1,146)	(1,439)
Proceeds from (investment in) deposits	12,136	(70,002)
Proceeds from sale of property and equipment	14	30
Payments for business acquisitions, net of cash acquired	(375)	-
Capitalized software development costs	(3,540)	(3,337)
Acquisition of intellectual property	-	(177)
Net cash provided by (used in) investing activities	7,089	(74,925)
Cash flows from financing activities:
Proceeds from employee stock options exercised	98	-
Distribution of dividend	(15,635)	(13,796)
Repayment of Series B Debenture	(19,796)	(19,796)
Acquisition of non-controlling interest	(4,131)	-
Dividend to non-controlling interest	-	(47)
Net cash used in financing activities	(39,464)	(33,639)
Effect of exchange rate changes on cash and cash equivalents	1,272	905
Decrease in cash and cash equivalents	(4,070)	(70,868)
Cash and cash equivalents at the beginning of period	126,716	160,285
Cash and cash equivalents at the end of period	122,646	89,417

Debentures Covenants

As of June 30, 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 $459.7 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 (46.79)%.

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 (1.45).

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SOURCE Sapiens International Corporation

FAQ

What was Sapiens' (SPNS) revenue for Q2 2024?

Sapiens reported revenue of $136.8 million for Q2 2024, representing a 6.6% increase compared to Q2 2023.

How much did Sapiens' (SPNS) diluted EPS grow in Q2 2024?

Sapiens' diluted EPS grew by 12.1% to $0.37 in Q2 2024 compared to $0.33 in Q2 2023.

What is Sapiens' (SPNS) revenue guidance for 2024?

Sapiens reiterated its 2024 guidance for non-GAAP revenues in the range of $550 million to $555 million.

What was Sapiens' (SPNS) operating margin in Q2 2024?

Sapiens reported a non-GAAP operating margin of 18.2% for Q2 2024.