Sapiens Reports Third Quarter 2018 Financial Results
EPS Increased by 67% and 15% on GAAP and non-GAAP basis, respectively
North America business increased by 12%
Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), today announced its financial results for the third quarter ended September 30, 2018.
Third Quarter 2018 Summary (comparisons are to the third quarter of 2017: amounts are in thousands, except per share amounts):
|Revenue totaled $73.2 million, an increase of 1.7% compared to $72.0 million.||Revenue totaled $73.2 million, a decrease of 0.8% compared to $73.9 million.|
|Operating income totaled $6.8 million, an increase of 51.7%, compared to $4.5 million.||Operating income totaled $10.3 million, an increase of 12.4%, as compared to $9.1 million.|
|Operating margin of 9.3%, compared to 6.2%.||Operating margin of 14.0%, compared to 12.4%.|
|Net income attributable to Sapiens’ shareholders totaled $5.2 million, an increase of 76.0%, compared to $2.9 million.||Net income attributable to Sapiens’ shareholders increased 20.0% to $7.5 million, compared to $6.3 million.|
|EPS of $ 0.1 per diluted share, compared to $0.06.||EPS of $ 0.15 per diluted share, compared to $0.13.|
“In the third quarter, we expanded our P&C business in the U.S. and EMEA markets by leveraging our solutions and customers relationships, while continuing to improve our operational performance. As a result, we delivered solid performance in the quarter, with a 160 basis point increase in non-GAAP operating margin year-over-year. We grew our North America business by 12%, and we have recently announced several important wins and go-lives in this key market,” stated Roni Al-Dor, president and CEO, Sapiens.
“We are increasing customer touch points globally through our client summits in the U.S. and EMEA, where we showcase our product capabilities and our outstanding teams. In addition, to maintain momentum with our clients, we are building a new global customer success operation that will be tasked with customer management, as well as sales responsibilities, including cross-selling and upselling, and increasing our 400 customers, awareness of the entire Sapiens’ platforms,” continued Mr. Al-Dor.
“In order to extend our competitive advantage and further grow our business, we are partnering with insurtech and fintech start-ups to complement our core offering while enabling our customers to improve their platforms and provide the highest level of service to their clients.”
Mr. Al-Dor concluded: “Based on the strength of our year-to-date results and our outlook for the fourth quarter, we are maintaining our guidance to 2018 full year non-GAAP revenues of $285 to $290 million, which we now expect to be on the higher end and we are increasing our non-GAAP operating margins in the range of 13.3% to 13.5% compared to our previous guidance of 13.0% – 13.2%.”
Quarterly Results Conference Call
Management will host a conference call and webcast on November 7, 2018 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): + 1-888-668-9141; 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/investors/presentations-and-webcast/
If you are unable to join live, a replay of the call will be accessible until November 14, 2018, as follows: North America: 1-888-295-2634; International: +972-3-925-5918
A recorded version of the webcast will also be available via the Sapiens website, for three months at the same location.