shareholders 21,091 19,080 62,553 54,943
=========== =========== =========== ===========
(*) Acquisition-related costs pertain to charges on behalf of M&A
agreements related to future performance targets and retention criteria,
as well as completed or prospective third-party services, such as tax,
accounting and legal rendered.
Adjusted EBITDA Calculation
U.S. dollars in thousands
Three months ended Nine months ended
September 30, September 30,
-------------------- -------------------
2024 2023 2024 2023
--------- --------- --------- --------
GAAP operating profit 21,746 20,265 64,151 58,779
Non-GAAP adjustments:
--------------------------
Valuation adjustment on
acquired deferred revenue - 55 - 165
Amortization of capitalized
software 1,470 1,418 4,584 4,274
Amortization of other
intangible assets 2,319 2,909 7,362 8,765
Capitalization of software
development (1,834) (1,638) (5,374) (4,975)
Stock-based compensation 646 1,038 2,229 2,960
Compensation related to
acquisition and
acquisition-related costs 754 11 1,248 21
--------- --------- --------- --------
Non-GAAP operating profit 25,101 24,058 74,200 69,989
Depreciation 1,288 719 3,480 2,750
Adjusted EBITDA 26,389 24,777 77,680 72,739
========= ========= ========= ========
Summary of NON-GAAP Financial Information
U.S. dollars in thousands (except per share amounts)
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
------- ------- ------- ------- -------
Revenues 137,025 136,800 134,249 130,914 130,760
Gross profit 62,809 62,481 60,884 59,370 59,260
Operating income 25,101 24,836 24,263 24,152 24,058
Adjusted EBITDA 26,389 25,931 25,360 25,267 24,777
Net income to Sapiens'
shareholders 21,091 21,041 20,421 20,081 19,080
Diluted earnings per
share 0.37 0.37 0.36 0.36 0.34
Annual Recurring Revenue ("ARR")
U.S. dollars in thousands
Three months ended
September 30,
---------------------
2024 2023
---------- ---------
Annual Recurring Revenue 173,414 157,589
========= =========
Non-GAAP Revenues by Geographic Breakdown
U.S. dollars in thousands
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
------- ------- ------- ------- -------
North America 55,755 57,918 55,158 54,882 54,848
Europe 69,281 66,072 68,727 65,239 64,662
Rest of the World 11,989 12,810 10,364 10,793 11,250
------- ------- ------- ------- -------
Total 137,025 136,800 134,249 130,914 130,760
Non-GAAP Revenue breakdown
U.S. dollars in thousands
Three months ended Nine months ended
September 30, September 30,
-------------------- -------------------
2024 2023 2024 2023
--------- --------- --------- --------
Software products and
re-occurring
post-production services
(*) 100,707 87,356 292,992 251,757
Pre-production
implementation services
(**) 36,318 43,404 115,082 132,133
Total Revenues 137,025 130,760 408,074 383,890
Three months ended Nine months ended
September 30, September 30,
-------------------- -------------------
2024 2023 2024 2023
--------- --------- --------- --------
Software products and
re-occurring
post-production services
(*) 53,809 46,053 156,386 133,339
Pre-production
implementation services
(**) 9,000 13,207 29,788 40,276
Total Gross profit 62,809 59,260 186,174 173,615
Three months ended Nine months ended
September 30, September 30,
-------------------- ---------------------
2024 2023 2024 2023
--------- --------- --------- ----------
Software products and
re-occurring
post-production services
(*) 53.4 % 52.7 % 53.4 % 53.0 %
Pre-production
implementation services
(**) 24.8 % 30.4 % 25.9 % 30.5 %
---------
Gross Margin 45.8 % 45.3 % 45.6 % 45.2 %
(*) 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
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
------- ------- ------- ------- -------
Cash-flow from operating
activities 13,083 8,545 18,488 38,646 3,988
Increase in capitalized
software development costs (1,834) (1,823) (1,717) (1,543) (1,638)
Capital expenditures (1,125) (666) (466) (421) (696)
Free cash-flow 10,124 6,056 16,305 36,682 1,654
Cash payments attributed to
acquisition-related costs(*)
(**) 124 134 751 221 -
Adjusted free cash-flow 10,248 6,190 17,056 36,903 1,654
(*) Included in cash-flow from operating activities
(**) Acquisition-related payments pertain to charges on behalf of M&A
agreements related to future performance targets and retention criteria,
as well as completed or prospective third-party services, such as tax,
accounting and legal rendered.
SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
U.S. dollars in thousands
September 30, December 31,
2024 2023
------------- ------------
(unaudited) (unaudited)
------------- ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 146,152 126,716
Short-term bank deposit 39,800 75,400
Trade receivables, net and unbilled
receivables 109,670 90,273
Other receivables and prepaid
expenses 25,769 22,514
------------- ------------
Total current assets 321,391 314,903
------------- ------------
LONG-TERM ASSETS
Property and equipment, net 11,431 12,661
Severance pay fund 3,446 3,605
Goodwill and intangible assets, net 310,533 317,352
Operating lease right-of-use assets 20,502 23,557
Other long-term assets 15,993 17,546
------------- ------------
Total long-term assets 361,905 374,721
------------- ------------
TOTAL ASSETS 683,296 689,624
============= ============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables 8,224 6,291
Current maturities of Series B
Debentures 19,796 19,796
Accrued expenses and other
liabilities 80,610 77,873
Current maturities of operating
lease liabilities 5,861 6,623
Deferred revenue 32,810 38,541
------------- ------------
Total current liabilities 147,301 149,124
------------- ------------
LONG-TERM LIABILITIES
Series B Debentures, net of current
maturities 19,778 39,543
Deferred tax liabilities 7,938 10,820
(MORE TO FOLLOW) Dow Jones Newswires
November 11, 2024 05:44 ET (10:44 GMT)