By Adriano Marchese
Sapiens International shares fell sharply in premarket trading after it said expects challenges from the third quarter to spill over into the fourth, and has downgraded its expectations for the full year.
Shares traded nearly 22% lower at $30.84 ahead of the morning bell.
The Israel-based insurance software company said set a new target for non-GAAP revenue in 2024 to come in at $541 million to $546 million. Previously, Sapiens expected revenue to be between $550 million to $555 million.
"Revenue fell short of our targets in the third quarter, and the challenges we encountered are expected to impact revenue in the fourth quarter," Chief Executive Roni Al-Dor said.
Al-Dor noted that the company expects our non-GAAP operating margin to be within its guidance range at 18.2%, and looking beyond into 2025, anticipates a low single-digit revenue growth.
In the third quarter, Sapiens generated $137 million of revenue, up from $130.7 million a year earlier but missing forecasts of $140.4 million, according to FactSet.
Profit in the period rose to $18.3 million from $15.9 million, which on a per-share basis was a rise to 33 cents from 28 cents.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
November 11, 2024 06:54 ET (11:54 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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