Insurance software provider Sapiens beats Q3 revenue estimates

Reuters11-13
Insurance software provider Sapiens beats Q3 revenue estimates

Overview

  • Sapiens Q3 revenue grows 11.2% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

  • Company to be acquired by Advent for $43.50 per share, valuing it at $2.5 bln

Outlook

  • Company will forgo Q3 2025 earnings call due to acquisition agreement by Advent

  • Sapiens focuses on accelerating cloud adoption and expanding global footprint

  • Company sees AI-driven innovation as a catalyst for sustainable growth

Result Drivers

  • GEOGRAPHIC EXPANSION - Revenue growth driven by double-digit expansion in North America and Rest of the World markets

  • ARR GROWTH - Annualized recurring revenue increased 26.7% year-over-year, with 17.5% organic growth and 9.2% from acquisitions

  • AI-DRIVEN INNOVATION - Insurance platform empowers digital transformation and operational efficiency, fueled by AI-driven innovation

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$152.30 mln

$148.20 mln (3 Analysts)

Q3 Adjusted EPS

Beat

$0.36

$0.35 (3 Analysts)

Q3 EPS

$0.25

Q3 Adjusted Net Income

Beat

$20.50 mln

$20.20 mln (3 Analysts)

Q3 Adjusted Operating Income

Beat

$25.50 mln

$23.70 mln (3 Analysts)

Q3 Adjusted Gross Margin

46.40%

Q3 Adjusted Gross Profit

$70.70 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Sapiens International Corporation NV is $37.25, about 16% below its November 12 closing price of $43.20

  • The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPnccrpzQa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment