Sapiens International’s SPNS shares have fallen 26.6% in the past month against the Zacks Computer & Technology sector’s 3.7% return and the Zacks Computer - Software industry’s 5.5% growth.

Delays in closing new deals, attributed to macroeconomic uncertainties, are affecting Sapiens’ prospects.

SPNS issued weaker guidance for 2024, revising its non-GAAP revenue expectations downward. Revenues are expected to be $541-$546 million, indicating a 1.6% reduction at the mid-point from the previous projection of $550-$555 million.

Sapiens anticipates revenue growth for 2025 to remain in the low single digits, indicating potential challenges from market conditions or operational headwinds.

Sapiens achieved significant success in the third quarter with multiple customer upgrades and go-lives, particularly in its core life solutions. Globally, the company advanced its implementation of key platforms, including IDITSuite, Tia Suite, ReinsuranceMaster and CoreSuite Life solutions.

It continues to see strong demand for its products in the EMEA (Europe, the Middle East, and Africa) and APAC (Asia-Pacific) regions, particularly for its Lifeplatform and P&C solutions, IDIT and Tia. There is also consistent interest in its SaaS platforms across all solution tiers.

Sapiens' key plans include launching its North America CoreSuite P&C platform in the first half of 2025. The company is also working on expanding its insurance solutions in both Life and Property & Casualty segments, particularly in the EMEA and APAC regions.

Sapiens is making significant strides through collaborations with system integrators (SIs), which have opened up new growth opportunities. These partnerships are proving essential in expanding its market reach and strengthening its business pipeline. By leveraging these relationships, the company is underlining the strategic value of SIs in driving its success.

Sapiens recently hosted a Customer Summit in Austin, TX, as part of its initiative to strengthen customer relationships and enhance lead generation. As part of this event, the company hosted 545 participants from 135 insurance companies and partner organizations. Industry leaders like Microsoft MSFT, Deloitte, Celent and Datos shared valuable insights, further enhancing Sapiens' strategic goals.

Sapiens has completed 19 strategic acquisitions since 2010 and is planning more . These acquisitions are designed to expand its product portfolio, increase its geographic reach and solidify its leadership position in the market.

SPNS’ Zacks Rank & Stocks to Consider

Sapiens currently carries Zacks Rank #3 (Hold), which implies that investors should wait for a favorable point to accumulate the stock.

DoorDash DASH and BWX Technologies BWXT are some better-ranked stocks in the broader tech sector. These two companies currently have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rates for DASH and BWXT are pegged at 49.52% and 9.23%, respectively.

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