GAAP operating profit 20,522 18,893
Non-GAAP adjustments:
-------------------------------------------------
Valuation adjustment on acquired deferred revenue - 55
Amortization of capitalized software 1,545 1,431
Amortization of other intangible assets 3,012 2,924
Capitalization of software development (1,717) (1,658)
Stock-based compensation 772 863
Compensation related to acquisition and
acquisition-related costs 129 6
--------- ---------
Non-GAAP operating profit 24,263 22,514
Depreciation 1,097 1,055
--------- ---------
Adjusted EBITDA 25,360 23,569
========= =========
Summary of NON-GAAP Financial Information
U.S. dollars in thousands (except per share amounts)
Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023
------- ------- ------- ------- -------
Revenues 134,249 130,914 130,760 128,354 124,776
Gross profit 60,884 59,370 59,260 57,992 56,363
Operating income 24,263 24,152 24,058 23,417 22,514
Adjusted EBITDA 25,360 25,267 24,777 24,393 23,569
Net income to Sapiens'
shareholders 20,421 20,081 19,080 18,610 17,253
Diluted earnings per
share 0.36 0.36 0.34 0.33 0.31
Annual Recurring Revenue ("ARR")
U.S. dollars in thousands
Three months ended
March 31,
-----------------------------------
2024 2023
----------------- ----------------
167,646 148,729
================ ================
Non-GAAP Revenues by Geographic Breakdown
U.S. dollars in thousands
Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023
------- ------- ------- ------- -------
North America 55,158 54,882 54,848 52,116 50,371
Europe 68,727 65,239 64,662 62,960 64,572
Rest of the World 10,364 10,793 11,250 13,278 9,833
------- ------- ------- ------- -------
Total 134,249 130,914 130,760 128,354 124,776
Non-GAAP Revenue breakdown
U.S. dollars in thousands
Q1 2024 % Q1 2023 %
------- ------- ------- -------
Software products and re-occurring
post-production services (*) 94,242 70.20 % 81,842 65.60 %
Pre-production implementation
services (**) 40,007 29.80 % 42,934 34.40 %
-------
Total Revenues 134,249 100 % 124,776 100 %
Q1 2024 Q1 2023
------- -------
Software products and re-occurring
post-production services (*) 50,340 44,849
Pre-production implementation
services (**) 10,544 11,514
Total Gross profit 60,884 56,363
Q1 2024 Q1 2023
------- -------
Software products and re-occurring
post-production services (*) 53.40 % 54.80 %
Pre-production implementation
services (**) 26.40 % 26.80 %
------- -------
Gross margin 45.40 % 45.20 %
(*) 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
Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023
------- ------- ------- ------- -------
Cash-flow from operating
activities 18,488 38,646 3,988 14,603 22,188
Increase in capitalized
software development
costs (1,717) (1,543) (1,638) (1,679) (1,658)
Capital expenditures (466) (421) (696) (775) (634)
Free cash-flow 16,305 36,682 1,654 12,149 19,896
Cash payments attributed
to acquisition-related
costs(*) (**) 751 221 - - 30
Adjusted free cash-flow 17,056 36,903 1,654 12,149 19,926
(*) 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.
SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
March 31, December 31,
2024 2023
------------ ------------
(unaudited) (unaudited)
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 116,689 126,716
Short-term bank deposit 79,200 75,400
Trade receivables, net and unbilled
receivables 103,735 90,273
Other receivables and prepaid
expenses 19,741 22,514
------------ ------------
Total current assets 319,365 314,903
------------ ------------
LONG-TERM ASSETS
Property and equipment, net 11,989 12,661
Severance pay fund 3,381 3,605
Goodwill and intangible assets, net 311,178 317,352
Operating lease right-of-use assets 21,524 23,557
Other long-term assets 16,362 17,546
Total long-term assets 364,434 374,721
------------ ------------
TOTAL ASSETS 683,799 689,624
============ ============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables 9,767 6,291
Current maturities of Series B
Debentures 19,796 19,796
Accrued expenses and other
liabilities 97,497 77,873
Current maturities of operating
lease liabilities 6,091 6,623
Deferred revenue 40,608 38,541
------------ ------------
Total current liabilities 173,759 149,124
------------ ------------
LONG-TERM LIABILITIES
Series B Debentures, net of current
maturities 19,756 39,543
Deferred tax liabilities 9,156 10,820
Other long-term liabilities 11,474 11,538
Long-term operating lease
liabilities 18,784 21,084
Accrued severance pay 7,368 7,568
------------ ------------
Total long-term liabilities 66,538 90,553
------------ ------------
EQUITY 443,502 449,947
------------ ------------
TOTAL LIABILITIES AND EQUITY 683,799 689,624
============ ============
SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOW
U.S. dollars in thousands
For the three months ended March 31,
--------------------------------------
2024 2023
(unaudited) (unaudited)
------------------ ------------------
Cash flows from operating
activities:
Net income 17,501 14,366
Reconciliation of net income to net
cash provided by operating
activities:
Depreciation and amortization 5,654 5,410
Accretion of discount on series
B debentures 9 14
Capital gain from sale of
property and equipment (1) (10)
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