Sapiens International Corporation NV (NASDAQ:SPNS) Reports Q3 Results

Sapiens International Corporation NV (NASDAQ:SPNS) experienced a significant drop in its shares, which fell more than 21% in premarket trading on Monday following a reduction in its annual revenue guidance and disappointing Q3 results.

Q3 Earnings Overview

The insurance software provider reported a Q3 earnings per share (EPS) of $0.33, falling short of analyst expectations of $0.38. Revenue for the quarter was $137 million, below the consensus estimate of $140.38 million.

Adjusted gross margin stood at 45.8%, while adjusted operating income was $25.1 million, slightly under the forecasted $25.7 million.

CEO’s Comments

Roni Al-Dor, President and CEO of Sapiens, stated, "This quarter showcased solid performance in our key regions. We are pleased to report that revenue reached $137 million this quarter, reflecting a 4.8% increase over the same period last year."

Al-Dor noted that revenue growth was primarily driven by 7.1% growth in Europe, 1.7% growth in North America, and 6.6% growth in other regions. The non-GAAP operating profit for the quarter totaled $25 million, making up 18.3% of total revenue.

Revised Revenue Guidance

Looking forward, Sapiens has revised its revenue guidance for fiscal 2024, now forecasting between $541 million and $546 million—a decrease from the previous range of $550 million to $555 million. This new projection is also below the consensus estimate of $552.7 million.

The company anticipates that its non-GAAP operating margin will align within the guidance range at 18.2%.