Sapiens(SPNS) - 2024 Q4 - Annual Report

Financial Performance - Sapiens reported Q4 2024 revenue of $134.3 million, a 2.6% increase year-over-year from$ 130.9 million in Q4 2023[3] - For the full year 2024, revenue reached $542.4 million, reflecting a 5.4% increase from$ 514.6 million in 2023[4] - Gross profit for Q4 2024 was $60.1 million, up 7.5% from$ 55.9 million in Q4 2023, with a gross margin of 44.8%[3] - The company achieved a net income of $17.9 million in Q4 2024, a 5.3% increase from$ 17.0 million in Q4 2023[3] - The operating income for Q4 2024 was $21.7 million, an 8.0% increase from$ 20.1 million in Q4 2023[3] - The diluted EPS for Q4 2024 was $0.32, a 6.7% increase from$ 0.30 in Q4 2023[3] - Net income attributable to Sapiens' shareholders for Q4 2024 was $17.9 million, compared to$ 17.0 million in Q4 2023, reflecting a 5.3% increase[23] - Non-GAAP net income attributable to Sapiens' shareholders for the year ended December 31, 2024, was $83.3 million, up from$ 75.0 million in 2023, reflecting an increase of 11.5%[24] - Net income for the twelve months ended December 31, 2024, was $72.32 million, an increase of 15.3% compared to$ 62.87 million in 2023[33] Cash Flow and Assets - Cash flow from operating activities for Q4 2024 was $42.1 million, significantly higher than$ 38.6 million in Q4 2023[31] - Total assets as of December 31, 2024, were $691.7 million, a slight increase from$ 689.6 million in 2023[32] - Net cash provided by operating activities increased to $82.23 million from$ 79.43 million, reflecting a growth of 3.3%[33] - Cash and cash equivalents at the end of the period increased to $163.69 million from$ 126.72 million, marking a positive change of 29.2%[33] - The company reported a decrease in trade receivables of $12.5 million, indicating improved cash flow management[33] Guidance and Future Outlook - Sapiens provided guidance for 2025 non-GAAP revenue in the range of$ 553 million to $558 million, with an operating profit forecast of$ 98 million to $102 million[5] - The company is focusing on a modular, open insurance platform that integrates advanced data analytics and AI to drive future growth[5] Customer and Market Performance - North America led global performance with a 6.3% year-over-year revenue increase, driven by new and existing customer deals[5] - Sapiens serves over 600 customers in more than 30 countries, emphasizing its commitment to innovation and customer partnerships[19] Other Financial Metrics - Annual Recurring Revenue (ARR) increased to$ 175.5 million in Q4 2024, up from $164.8 million in Q4 2023, representing a 6.5% growth[27] - Non-GAAP operating income for Q4 2024 was$ 24.5 million, slightly higher than $24.2 million in Q4 2023[24] - Adjusted EBITDA for Q4 2024 was$ 25.4 million, compared to $25.3 million in Q4 2023, indicating stable performance[25] - The company reported a gross margin of 46.7% for Q4 2024, compared to 45.4% in Q4 2023[29] Financial Ratios and Compliance - Actual shareholders' equity (excluding non-controlling interest) was$ 479.6 million, significantly above the target of $120 million[35] - The ratio of net financial indebtedness to net capitalization was 57.93%, well below the target of 65%[35] - The ratio of net financial indebtedness to EBITDA was 1.71, significantly lower than the target of 5.5[35] - The company was in compliance with all financial covenants under the Series B Debentures as of December 31, 2024[34] Investment in Technology - The company invested$ 7.13 million in capitalized software development costs, reflecting ongoing commitment to technology advancement[33]