Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | SAPIENS INTERNATIONAL CORP N V |
Trading Symbol | SPNS |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 55,140,210 |
Amendment Flag | false |
Entity Central Index Key | 0000885740 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 000-20181 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Azrieli Center |
Entity Address, Address Line Two | 26 Harokmim St. |
Entity Address, City or Town | Holon |
Entity Address, Postal Zip Code | 5885800 |
Entity Address, Country | IL |
Contact Personnel Fax Number | +972-3-790 2942 |
Title of 12(b) Security | Common Shares, par value €0.01 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1281 |
Auditor Name | Kost Forer Gabbay & Kasierer |
Auditor Location | Tel-Aviv, Israel |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Azrieli Center |
Entity Address, Address Line Two | 26 Harokmim St. |
Entity Address, City or Town | Holon |
Entity Address, Postal Zip Code | 5885800 |
Entity Address, Country | IL |
Contact Personnel Name | Roni Giladi |
City Area Code | 972 |
Local Phone Number | 3-790-2000 |
Contact Personnel Fax Number | +972-3-790 2942 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 160,285 | $ 190,243 |
Short-term bank deposit | 20,000 | 20,000 |
Trade receivables (net of allowance for credit losses of $1,130 and $1,337 on December 31, 2022 and 2021, respectively) | 58,563 | 53,985 |
Unbilled receivables and contract assets | 34,819 | 22,276 |
Other receivables and prepaid expenses | 11,640 | 13,841 |
Total current assets | 285,307 | 300,345 |
LONG-TERM ASSETS: | ||
Capitalized software development costs, net | 23,426 | 25,203 |
Other intangible assets, net | 44,003 | 56,939 |
Property and equipment, net | 12,021 | 14,458 |
Goodwill | 252,232 | 261,141 |
Severance pay fund | 3,996 | 5,954 |
Operating lease right-of-use assets | 33,688 | 43,665 |
Deferred tax assets | 9,418 | 3,122 |
Other long-term assets | 4,253 | 4,166 |
Total long-term assets | 383,037 | 414,648 |
Total assets | 668,344 | 714,993 |
CURRENT LIABILITIES: | ||
Trade payables | 9,415 | 5,008 |
Employees and payroll accruals | 42,256 | 43,402 |
Accrued expenses and other liabilities | 34,706 | 33,048 |
Current maturities of Series B Debentures | 19,796 | 19,796 |
Current maturities of operating lease liabilities | 9,063 | 10,827 |
Deferred revenues | 30,720 | 39,614 |
Total current liabilities | 145,956 | 151,695 |
LONG-TERM LIABILITIES: | ||
Series B Debentures, net of current maturities | 59,275 | 78,986 |
Deferred tax liabilities | 11,363 | 15,360 |
Other long-term liabilities | 13,312 | 12,144 |
Long-term operating lease liabilities | 28,432 | 38,751 |
Accrued severance pay | 7,063 | 9,236 |
Redeemable non-controlling interest | 89 | 101 |
Total long-term liabilities | 119,534 | 154,578 |
COMMITMENTS AND CONTINGENCIES | ||
Share capital: | ||
Common shares of € 0.01 par value: Authorized: 70,000,000 shares on December 31, 2022 and 2021; Issued: 57,468,506 and 57,393,305 shares on December 31, 2022 and 2021, respectively; Outstanding: 55,140,210 and 55,065,009 shares on December 31, 2022 and 2021, respectively | 756 | 756 |
Additional paid-in capital | 344,734 | 340,837 |
Treasury shares, at cost - 2,328,296 Common shares on December 31, 2022 and 2021 | (9,423) | (9,423) |
Accumulated other comprehensive income (loss) | (21,138) | 2,819 |
Retained earnings | 85,575 | 71,559 |
Total Sapiens International Corporation N.V. shareholders’ equity | 400,504 | 406,548 |
Non-controlling interests | 2,350 | 2,172 |
Total equity | 402,854 | 408,720 |
Total liabilities and equity | $ 668,344 | $ 714,993 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) $ in Thousands | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 € / shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 € / shares |
Statement of Financial Position [Abstract] | ||||
Trade receivables, net of allowance for doubtful accounts (in Dollars) | $ | $ 1,130 | $ 1,337 | ||
Common shares, par value (in Euro per share) | € / shares | € 0.01 | € 0.01 | ||
Common shares, authorized | 70,000,000 | 70,000,000 | ||
Common shares, issued | 57,468,506 | 57,393,305 | ||
Common shares, outstanding | 55,140,210 | 55,065,009 | ||
Treasury shares, shares | 2,328,296 | 2,328,296 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 474,736 | $ 461,035 | $ 382,903 |
Cost of revenues | 274,573 | 273,191 | 226,929 |
Gross profit | 200,163 | 187,844 | 155,974 |
Operating expenses: | |||
Research and development | 58,656 | 54,013 | 41,358 |
Selling, marketing, general and administrative | 75,016 | 76,343 | 69,613 |
Total operating expenses | 133,672 | 130,356 | 110,971 |
Operating income | 66,491 | 57,488 | 45,003 |
Financial expense, net | 941 | 202 | 3,805 |
Income before taxes on income | 65,550 | 57,286 | 41,198 |
Taxes on income | 12,619 | 9,964 | 7,041 |
Net income | 52,931 | 47,322 | 34,157 |
Net income attributed to non-controlling interests | 336 | 151 | 382 |
Net income attributable to Sapiens’ shareholders | $ 52,595 | $ 47,171 | $ 33,775 |
Net earnings per share attributable to Sapiens’ shareholders | |||
Basic earnings per share (in Dollars per share) | $ 0.95 | $ 0.86 | $ 0.67 |
Diluted earnings per share (in Dollars per share) | $ 0.95 | $ 0.85 | $ 0.65 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 52,931 | $ 47,322 | $ 34,157 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net | (24,115) | (8,159) | 13,456 |
Total comprehensive income | 28,816 | 39,163 | 47,613 |
Comprehensive income attributed to non-controlling interests | 178 | 199 | 431 |
Comprehensive income attributable to Sapiens’ shareholders | $ 28,638 | $ 38,964 | $ 47,182 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Common share | Additional paid-in capital | Treasury shares | Accumulated other comprehensive Income (loss) | Retained earnings | Non-controlling interests | Total | ||
Balance at Dec. 31, 2019 | $ 697 | $ 217,014 | $ (9,423) | $ (2,381) | $ 17,912 | $ 1,679 | $ 225,498 | ||
Balance (in Shares) at Dec. 31, 2019 | 50,159,876 | ||||||||
Stock-based compensation | 3,975 | 12 | 3,987 | ||||||
Employee stock options exercised (cash and cashless) | $ 11 | 5,039 | 5,050 | ||||||
Employee stock options exercised (cash and cashless) (in Shares) | 603,519 | ||||||||
Distribution of dividend | (7,044) | (7,044) | |||||||
Other comprehensive income (loss) | 13,407 | 49 | 13,456 | ||||||
Acquisition of minority interest | (29) | (118) | (147) | ||||||
Proceeds from issuance of ordinary shares, net of issuance expenses | $ 43 | 108,694 | 108,737 | ||||||
Proceeds from issuance of ordinary shares, net of issuance expenses (in Shares) | 3,898,304 | ||||||||
Net income | 33,775 | 382 | 34,157 | ||||||
Balance at Dec. 31, 2020 | $ 751 | 334,693 | (9,423) | 11,026 | 44,643 | 2,004 | 383,694 | ||
Balance (in Shares) at Dec. 31, 2020 | 54,661,699 | ||||||||
Stock-based compensation | 4,706 | 5 | 4,711 | ||||||
Employee stock options exercised (cash and cashless) | $ 5 | 2,033 | 2,038 | ||||||
Employee stock options exercised (cash and cashless) (in Shares) | 403,310 | ||||||||
Distribution of dividend | (20,255) | (31) | (20,286) | ||||||
Other comprehensive income (loss) | (8,207) | 48 | (8,159) | ||||||
Transaction with minority shareholders | (595) | (5) | (600) | ||||||
Net income | 47,171 | 151 | 47,322 | ||||||
Balance at Dec. 31, 2021 | $ 756 | 340,837 | (9,423) | 2,819 | 71,559 | 2,172 | 408,720 | ||
Balance (in Shares) at Dec. 31, 2021 | 55,065,009 | ||||||||
Stock-based compensation | 3,835 | 3,835 | |||||||
Employee stock options exercised (cash and cashless) | [1] | [1] | |||||||
Employee stock options exercised (cash and cashless) (in Shares) | 75,201 | ||||||||
Distribution of dividend | (38,579) | (38,579) | |||||||
Other comprehensive income (loss) | (23,957) | (158) | (24,115) | ||||||
Employee settlement of stock-based liability | 62 | 62 | |||||||
Net income | 52,595 | 336 | 52,931 | ||||||
Balance at Dec. 31, 2022 | $ 756 | $ 344,734 | $ (9,423) | $ (21,138) | $ 85,575 | $ 2,350 | $ 402,854 | ||
Balance (in Shares) at Dec. 31, 2022 | 55,140,210 | ||||||||
[1] Represents an amount lower than $1. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 52,931 | $ 47,322 | $ 34,157 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,240 | 28,669 | 23,383 |
Stock-based compensation | 3,835 | 4,711 | 3,987 |
Accretion of discount on Series B Debentures | 85 | 106 | 134 |
Impairment of right of use asset | 1,439 | 351 | |
Capital loss (gain) from sale of property and equipment | 26 | (60) | 44 |
Net changes in operating assets and liabilities | |||
Increase in net trade receivables, unbilled receivables and contract assets | (21,860) | (13,937) | (5,168) |
Decrease (increase) in other operating assets | 7,729 | 17,743 | (2,049) |
Decrease in deferred tax liabilities, net | (10,134) | (1,902) | (16) |
Increase (decrease) in trade payables | 4,634 | (529) | (1,344) |
Decrease (increase) in other operating liabilities | (8,046) | (8,325) | 1,435 |
Increase (decrease) deferred revenues | (7,738) | 4,930 | 2,992 |
Increase in accrued severance pay, net | 78 | 375 | 349 |
Net cash provided by operating activities | 43,780 | 80,542 | 58,255 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (2,757) | (3,786) | (2,633) |
Proceeds from sale of property and equipment | 54 | 1,111 | 12 |
Capitalized software development costs | (6,097) | (7,911) | (5,798) |
Net cash received from (paid for) acquisitions (b) | (3,466) | 831 | (109,052) |
Proceeds from (investment in) short-term bank deposits, net | 26 | 10,031 | (30,397) |
Proceeds from restricted deposit on account of future acquisition | 22,890 | ||
Purchase of other intangible asset | (200) | (151) | (2,810) |
Net cash provided by )used in( investing activities | (12,440) | 125 | (127,788) |
Cash flows from financing activities: | |||
Proceeds from employee stock options exercised | 2,038 | 5,050 | |
Receipt of short-term loan | 20,000 | ||
Repayment of loans | (20,000) | ||
Proceeds from issuance of Series B Debentures, net of issuance expenses | 60,346 | ||
Repayment of Series B Debentures | (19,796) | (19,796) | (9,898) |
Distribution of dividend | (38,579) | (20,255) | (7,044) |
Payments of contingent consideration | (926) | (538) | |
Acquisition of non-controlling interests | (990) | (147) | |
Dividend to non-controlling interest | (31) | ||
Proceeds from issuance of ordinary shares, net of issuance expenses | 108,737 | ||
Net cash provided by (used in) financing activities | (58,375) | (39,960) | 156,506 |
Effect of exchange rate changes on cash | (2,923) | (3,025) | (707) |
Increase (decrease) in cash, and cash equivalents | (29,958) | 37,682 | 86,266 |
Cash, cash equivalents at beginning of year | 190,243 | 152,561 | 66,295 |
Cash and cash equivalents at end of year | 160,285 | 190,243 | 152,561 |
Supplemental cash flow activities: | |||
Interest, net | 850 | 3,218 | 5,439 |
Income taxes, net | 10,634 | 6,654 | 16,330 |
Fair value of assets acquired and liabilities assumed at the date of acquisition: | |||
Working capital, net (excluding cash and cash equivalents) | 317 | 238 | 10,839 |
Other long-term assets | (9,577) | ||
Other long-term liabilities | 24,572 | ||
Redeemable non-controlling interests | 450 | ||
Goodwill and other intangible assets | (3,783) | 593 | (135,336) |
Net cash paid for acquisitions, total | (3,466) | 831 | (109,052) |
(c) Non-cash transactions: | |||
Net lease liabilities arising (modifying) from obtaining right-of-use assets | (24) | 5,526 | 1,861 |
Property and equipment purchase incurred but unpaid at year end | $ 268 | $ 262 | $ 490 |
General
General | 12 Months Ended |
Dec. 31, 2022 | |
General [Abstract] | |
GENERAL | NOTE 1:- GENERAL Sapiens International Corporation N.V. (“Sapiens”) and its subsidiaries (collectively, the “Company”), a member of the Formula Systems (1985) Ltd. (“Formula”) Group, is a global provider of software solutions for the insurance industry. The ultimate parent of the Company is Asseco Poland S.A. (“Asseco”), a Polish public company, traded on the Warsaw Stock Exchange. The Company’s expertise is reflected in its innovative software, solutions and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&P); workers’ compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modeling for both insurance and financial markets. The Company offers end to end solutions for insurers core, data & analytics and digital operations, as well as stand-alone solutions which help them optimize and maximize their current investment. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in United States (“U.S. GAAP”). a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes assets, share-based compensation, value of intangible assets and goodwill, as well as the determination of revenue recognition from contracts accounted for based on the estimate of percentage of completion. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of Sapiens and certain subsidiaries are conducted is the U.S. dollar (“dollar”); thus, the dollar is the functional currency of Sapiens and certain subsidiaries. Sapiens and certain subsidiaries’ transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries, whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of an accumulated other comprehensive income (loss) within equity. c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders’ share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired. e. Short-term bank deposits: Short-term bank deposits with original maturities of more than three months and less than one year at the date acquired are included in short-term bank deposits. f. Trade receivables: Trade receivables are stated net of credit losses allowance. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Estimated credit loss allowance is recorded as general and administrative expenses on the Company’s consolidated statements of income. The following table presents the changes in the allowance for credit losses for the years ended December 31, 2022 and 2021: December 31, 2022 2021 Balance at the beginning of the year $ 1,337 $ 1,558 Current period provision 428 68 Write offs (635 ) - Recoveries collected - (289 ) Balance at year end $ 1,130 $ 1,337 g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 20 - 33 Office furniture and equipment 6 - 33 Buildings 2.5 Leasehold improvements Over the shorter of the related lease period or the life of the asset h. Leases: The Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: (1) whether the contract involves the use of an identified asset, (2) whether the Company obtains the right to substantially all of the economic benefits from the use of the asset throughout the period of use, and (3) whether the Company has the right to direct the use of the asset. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. Since all of the Company’s lease contracts do not meet any one of the criteria above, the Company concluded that all of its lease contracts should be classified as operation leases. For lease with terms greater than 12 months, ROU assets and liabilities are recognized on the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available on the commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Moreover, the ROU asset may also include initial direct costs, which are incremental costs of a lease that would not have been incurred if the lease had not been obtained. i. Research and development costs: Research and development costs incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Certain internal and external costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, “Software - Costs of Software to be Sold Leased or Marketed”. Based on the Company’s product development process, technological feasibility is established upon completion of a detailed program design. Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. Capitalized software development costs are amortized using the straight-line method over the estimated useful life of the software products (primarily seven years). j. Business combinations: The Company accounts for its business acquisitions in accordance with Accounting Standards Codification ASC No. 805, “Business Combinations”. The Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date. The total purchase price allocated to the tangible assets, liabilities assumed and intangible assets acquired is assigned based on their fair values as of the date of the acquisition. The excess of the fair value of the purchase price over the fair value of these identifiable assets and liabilities is recorded as goodwill. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies’ respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company accounts for a transaction that does not meet the definition of a business as an asset acquisition Under ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business (“2017-01”), while first determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is not a business. k. Other intangible assets, net: Technology and patents acquired are amortized over their estimated useful life on a straight-line basis. The acquired customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized method. The average annual rates for other intangible assets are as follows: % Technology 13 - 33 Customer relationships 7 – 17 Patents 10 l. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the identifiable tangible and intangible assets acquired. Under ASC 350,“Intangibles- Goodwill and Other” (“ASC 350”), goodwill is subject to an annual impairment test at least annually or more frequently if impairment indicators are present. Goodwill impairment is required if the carrying amount of a reporting unit exceeds its estimated fair value. The Company operates in four reporting units: L&P (Life & Pension), P&C (Property & Casualty), Decision and IPELS. For the years ended December 31, 2022, 2021 and 2020, no impairment of goodwill has been recorded. m. Impairment of long-lived assets: The Company’s long-lived assets to be held and used including right-of-use assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360 “Property, Plant, and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360 provides examples of events or changes in circumstances that might indicate that impairment exists for a particular long-lived asset or asset group. Among those events and circumstances that the Company believes to be impairment indicators are: - A significant decrease in the market price of a long-lived asset (asset group). - A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During 2022, no impairment losses have been identified. During 2021 and 2020, the Company identified an impairment loss of $1,439 and $351, respectively, as outlined in Note 6. n. Revenue recognition: The Company implements the provisions of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). See Note 18 for further disclosures. Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company generates revenues mainly from sales of software licenses which include significant implementation and customization services. In addition, the Company generates revenues from post implementation consulting services and maintenance services. Revenues from these contracts are based on either fixed price or time and material. Revenue from long term contracts which involve significant implementation, customization, or integration of the Company’s software license to customer-specific requirements are considered as one performance obligation satisfied over-time. The Company recognizes revenue on such contracts over time, using the percentage of completion accounting method. The Company recognizes revenue as the work is performed, based on a ratio between actual costs incurred compared to the total estimated costs for the contract. Determining the projected labor costs requires understanding the project-specific circumstances, including the specific terms and conditions of each contract, changes to the project schedule, and complexity of the project. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses become probable, in the amount of the estimated loss on the entire contract. When post implementation and consulting services do not involve significant customization, the Company accounts for such services as performance obligations satisfied over time and revenues are recognized as the services are provided. When the Company enters into a contract for the sale of software license which does not require significant implementation services, and the customer receives the rights to use the perpetual or term-based software license, the Company recognizes revenue from the sale of the software license at the time of delivery, when the customer receives control of the software license. The software license is considered a distinct performance obligation recognized at a point-in-time, as the customer can benefit from the software on its own or together with other readily available resources. The Company allocates the transaction price for each contract to each performance obligation identified in the contract based on the relative standalone selling price (SSP). The Company determines SSP for the purposes of allocating the transaction price to each performance obligation by considering several external and internal factors including, but not limited to, transactions where the specific performance obligation is sold separately, historical actual pricing practices and geographies in which the Company offers its services. If a specific performance obligation, such as the software license, is sold for a broad range of amounts (that is, the selling price is highly variable) or if the Company has not yet established a price for that good or service, and the good or service has not previously been sold on a standalone basis (that is, the selling price is uncertain), the Company applies the residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs with any residual amount of transaction price allocated to the remaining specific performance obligation. In addition to software license fees, contracts with customers may contain an agreement to provide maintenance services. The Company considers the maintenance performance obligation as a distinct performance obligation that is satisfied over time and recognized on a straight-line basis over the contractual period. The Company pays sales commissions primarily to sales personnel based on their attainment of certain predetermined sales goals. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Sales commissions for initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and amortized on a straight-line basis over the related contractual renewal period. If the expected amortization period is one-year or less, the Company uses the practical expedient and the commission fee is expensed as incurred. Amortization expense related to these costs are included in sales, marketing, general and administrative expenses . o. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. This topic prescribes the use of the asset and liability method, whereby deferred tax asset and liability account balances are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent the Company believes they will not be realized. The Company considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest as financial expense and penalties as selling, marketing, general and administrative expenses. p. Concentrations of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, unbilled receivables and contract assets, and foreign currency derivative contracts. The Company’s cash and cash equivalents and short-term bank deposit are invested in bank deposits mainly in US dollars. The Company’s trade receivables are generally derived from sales to large and solid organizations located mainly in North America, Europe and the rest of the world. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. In certain circumstances, the Company may require prepayment. The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows. The derivative instruments hedge a portion of the Company’s non-dollar currency exposure. No off-balance sheet concentrations of credit risk exist. q. Accrued severance pay and retirement plans: The Company’s liability for severance pay for its Israeli employees is calculated pursuant to Israel’s Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment, or a portion thereof. The Company’s liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or employment agreements. The value of the deposited funds is based on the cash surrendered value of these policies and recorded as an asset in the Company’s consolidated balance sheet. In addition, the Company signed a collective agreement with certain employees, according to which the Company’s contributions for severance pay shall be in lieu of severance compensation and that upon release of the policy to the employee, no additional payments shall be made by the Company to the employee. Generally, the Company, under its sole discretion, pays to these employees the entire liability, irrespective of the collective agreement described per above. Therefore, the net obligation related to those employees is stated on the balance sheet as accrued severance pay. The Company’s agreements with certain employees in Israel are in accordance with Section 14 of the Severance Pay Law, whereas, the Company’s contributions for severance pay shall be in lieu of its severance liability. Upon contribution of the full amount of the employee’s monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter to severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years 2022, 2021 and 2020 amounted to $5,199, $4,538 and $4,020, respectively. The Company has a 401(k) retirement savings plan for most of its U.S. employees. Each eligible employee may elect to contribute a portion of its employee’s compensation to the plan. The Company has a discretionary employer match. In the reporting periods, this match ranges from 1.25-3% if an employee contributed 5-6%. Such 401(k) employer match expense for the years 2022, 2021 and 2020 amounted to $1,280, $1,282 and $1,233, respectively. r. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of common shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of common shares outstanding during each year plus dilutive potential equivalent common shares considered outstanding during the year, in accordance with ASC 260, “Earnings Per Share”. s. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company uses the Binomial Lattice (“Binomial model”) option-pricing model to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, and the probability that the option will be exercised prior to the end of its contractual life. The Company recognizes forfeitures of equity-based awards as they occur. Stock-based compensation cost is measured at the grant date, based on the fair value of the award. The Company recognizes compensation expense for the value of its awards, which have graded vesting, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met. The fair value of each option granted in 2022, 2021 and 2020 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2022 2021 2020 Contractual life 6 years 6 years 6 years Expected exercise factor 2-2.8 2-2.8 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 35.5%-36.4% 36.3%-36.9% 31.0%-35.2% Risk-free interest rate 3.0%-4.3% 0.5%-1.3% 0.4%-1.8% The risk-free interest rate assumption is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term as of the Company’s employee stock options. Since dividend payment is applied to reduce the exercise price of the option, the effect of the dividend protection is reflected by using an expected dividend assumption of zero. The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding. The expected exercise factor is based on industry acceptable rates since no actual historical behavior by option holders exists. Expected volatility is based on the historical volatility of the Company. t. Fair value of financial instruments: ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company measures its foreign currency derivative instruments at fair value. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The carrying amounts of cash and cash equivalents, short-term bank deposit, trade receivables, other receivables and prepaid expenses (excluding derivatives) and accounts payable, accrued expenses and other current liabilities approximate fair value due to the short-term maturities of such instruments. The following table presents assets measured at fair value on a recurring basis as of December 31, 2022 and 2021: December 31, 2022 2021 Fair value measurement using Other receivables and prepaid expenses: Derivative instruments $ 109 $ 188 u. Derivatives and hedging: The Company enters into option contracts and forward contracts to hedge certain transactions denominated in foreign currencies. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual dollar cash flows from international activities will be adversely affected by changes in the exchange rates. The Company’s option and forward contracts do not qualify as hedging instruments under ASC 815, “Derivatives and hedging”. Changes in the fair value of option strategies are reflected in the consolidated statements of income as financial income or expense. In 2022, 2021 and 2020 the Company entered into forward contracts in the aggregate notional amounts of $168,850, $140,688 and $260,862, respectively, and in 2022, 2021 and 2020, the Company entered into option contracts in the notional amounts of nil As of December 31, 2022, 2021 and 2020, the Company had outstanding options and forward contracts, in the notional amount of $15,900, $20,000 and $3,866, respectively. In 2022 the Company recorded financial expense, net of $1,193, and in 2021 and 2020 the Company recorded financial income, net of $3,338 and $104 respectively, with respect to the above transactions, presented in the statements of income as part of financial expenses, net. v. Treasury shares: Repurchased common shares are held as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity. w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”. Comprehensive income (loss) generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company records transactions under comprehensive income net of income tax. x. Recently adopted accounting standards: In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance.” The new standard improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this ASU did not have a significant impact on the Company’s financial statements and disclosures. y. Recently issued accounting pronouncements: In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The standard requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. This ASU is currently not expected to have a material impact on our consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 3:- ACQUISITIONS 1. Acquisition of I.T Cognitive Ltd.: On May 19, 2022, Sapiens completed the acquisition of 100% of the outstanding shares of I.T Cognitive Ltd. (“Cognitive”), an Israeli company which provides digital transformation solutions, for a total cash consideration of $3,466. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of income. 2. Acquisition of Thor Denmark Holding ApS and its subsidiaries: On November 30, 2020 (“the TIA Acquisition Date”), the Company completed the acquisition of all of the outstanding shares of Thor Denmark Holding ApS (“TIA”), a leading vendor of digital software solutions. TIA offers comprehensive software solutions primarily for Property & Casualty insurers, as well as several innovative extension modules. Additionally, TIA offers a full scope of expert implementation, application management and hosting services, enabling insurers to execute their digital and business strategies. The purchase price amounted to $76,107 in cash, subject to net working capital adjustments. Acquisition related costs amounted to $719, and are presented under selling, marketing, general and administrative in the Company’s consolidated statements of income. The results of TIA’s operations have been included in the consolidated financial statements from the TIA Acquisition Date. During 2021, the Company and TIA’s former shareholders (“Sellers”) agreed on the final working capital adjustments which resulted in a repayment of $831 from Sellers to the Company. The following table summarizes the fair value of the assets acquired and liabilities assumed: Current assets (including cash of $2,292) $ 6,337 Goodwill 58,120 Intangible assets 29,946 Other long-term assets 4,254 Total assets acquired $ 98,657 Current liabilities $ 4,800 Deferred revenues 5,742 Deferred tax liabilities 6,962 Other long-term liabilities 5,877 Total liabilities acquired $ 23,381 Net assets acquired $ 75,276 The following table sets forth the components of intangible assets associated with the acquisition: Fair value Developed technology $ 10,517 Customer relationships 19,266 Backlog 163 Total intangible assets $ 29,946 The excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill. The goodwill from the acquisition of TIA is primarily attributable to potential synergy with Sapiens, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of income. 3. Acquisition of sum.cumo: On February 6, 2020 (the “sum.cumo Acquisition Date”), Sapiens completed the acquisition of all the outstanding shares of sum.cumo GmbH (“sum.cumo”), a German company, which services insurers in the DACH region, helping them to achieve digital transformation of set up their existing business models or to design entirely new business models based on pure digital processes. sum.cumo’s experts in consulting, user experience, marketing and technology enable the region’s insurers to launch highly automated platforms well suited for e-commerce and real-time processing of transactions. The purchase price totaled $ 22,487 in cash. At the acquisition date, the Company issued an aggregate of 173,005 RSUs to certain employees of sum.cumo, valued at a total of $4,400. The value of these grants was not included in the purchase price of sum.cumo, since their vesting is subject to both continued employment and other performance criteria. In addition, sum.cumo’s senior executives have retention-based payments over three years (2020-2023) of up to approximately $2,800. These payments are subject to continued employment, and therefore were not included in the purchase price. Acquisition related costs amounted to $561, and are presented under selling, marketing, general and administrative in the Company’s consolidated statements of income. The results of sum.cumo’s operations have been included in the consolidated financial statements from the sum.cumo Acquisition Date. The table below presents the fair value that was allocated to sum.cumo’s assets and liabilities based upon fair values as determined by the Company. Net assets (including cash of $ 981) $ 1,447 Intangible assets 9,730 Deferred tax liabilities (3,211 ) Goodwill 14,521 Net assets acquired $ 22,487 The excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill. The goodwill from the acquisition of sum.cumo is primarily attributable to sales growth from future products, new customers and potential synergy with Sapiens, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of income. 4. Acquisition of Delphi Technology Inc. and its subsidiary: On July 27, 2020 (the “Delphi Acquisition Date”), the Company completed the acquisition of all of the outstanding shares of Delphi Technology Inc. (“Delphi”), a leading vendor of software solutions for property & casualty (P&C) carriers, with a focus on the medical professional liability (MPL)/healthcare professional liability (HCPL) markets (sometimes referred to as “medical malpractice”). The total purchase price was $19,600 in cash. Acquisition related costs amounted to $299, and are presented under selling, marketing, general and administrative in the Company’s consolidated statements of income. The results of Delphi’s operations have been included in the consolidated financial statements from the Delphi Acquisition Date. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States. On April 22, 2020, Delphi applied for such aid in the form of U.S. Small Business Administration’s Paycheck Protection Program (“PPP Loan”) in the amount of $1,546. The PPP Loan is scheduled to mature on April 22, 2022, has a 1% interest rate, and is subject to the terms and conditions applicable to all loans made pursuant to the Paycheck Protection Program as administered by the U.S. Small Business Administration (“SBA”) under the CARES Act. A loan forgiveness request to SBA was applied by Delphi prior to the acquisition of the Company. In October 2022, SBA approved the loan forgiveness in the amount of $1,465 which recorded as a financial income. The rest of the amount (including the interest) was fully paid in December 2022. The table below presents the fair value that was allocated to Delphi’s assets and liabilities based upon fair values as determined by the Company: Net liabilities (including cash of $ 6,265) $ (524 ) Intangible assets 7,562 Deferred tax liabilities, net (2,313 ) Goodwill 14,875 Net assets acquired $ 19,600 The excess of purchase consideration over the fair value of net tangible and intangible assets acquired was recorded as goodwill. The goodwill from the acquisition of Delphi is primarily attributable to potential synergy with Sapiens, as well as certain intangible assets that do not qualify for separate recognition. The goodwill is not deductible for income tax purposes. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of income. 5. Acquisition of Tiful Gemel Ltd.: On June 1, 2020, Sapiens completed the acquisition of 75% of the outstanding shares of Tiful Gemel Ltd. (“Tiful Gemel”), an Israeli company which provides software solutions and managed services related to pension and provident funds in the Israeli market, for a total cash consideration of $1,281. In addition, under the share purchase agreement, the Company is committed to acquire the remainder of Tiful Gemel’s outstanding shares on June 1, 2023. Pro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated statements of income. On July 8, 2021, the Company completed the acquisition of additional 20% of the outstanding shares of Tiful Gemel for a total amount of $390. |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Long-Term Assets [Abstract] | |
OTHER LONG-TERM ASSETS | NOTE 4:- OTHER LONG-TERM ASSETS December 31, 2022 2021 Unbilled receivables 1,902 1,642 Rent deposits 2,083 2,077 Other 268 447 $ 4,253 $ 4,166 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5:- PROPERTY AND EQUIPMENT, NET December 31, 2022 2021 Cost: Computers and peripheral equipment $ 40,101 $ 45,290 Office furniture and equipment 8,260 9,212 Buildings and leasehold improvements 8,192 9,210 56,553 63,712 Accumulated depreciation: Computers and peripheral equipment 34,285 38,770 Office furniture and equipment 5,532 5,741 Buildings and leasehold improvements 4,715 4,743 44,532 49,254 Depreciated cost $ 12,021 $ 14,458 Depreciation expense totaled $4,242, $5,360 and $4,698 for the years 2022, 2021 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 6:- LEASES The Company leases substantially all of its office space and vehicles under operating leases. The Company’s leases have original lease periods expiring between 2023 and 2034. Some leases include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Lease payments included in the measurement of the lease liability comprise the following: the fixed non-cancellable lease payments, payments for optional renewal periods where it is reasonably certain the renewal period will be exercised, and payments for early termination options unless it is reasonably certain the lease will not be terminated early. In December 2021, the Company recorded an impairment in the amount of $1,439 primarily related to the offices in the United States and Germany. Furthermore, in November and December 2021 the Company signed an amendment with its lessor in Holon, Israel to vacate a portion of the offices. The loss contingency and the impairment were included in the operating expenses in the Company’s consolidated statement of income. The corresponding lease liabilities are classified as current and non-current operating lease liabilities. The components of operating lease costs were as follows: Year ended December 31, 2022 2021 Operating lease cost $ 6,019 $ 7,946 Variable lease cost 4,004 4,241 Short-term lease cost 829 373 Total lease costs $ 10,852 $ 12,560 The following is a summary of weighted average remaining lease terms and discount rates for all of the Company’s operating leases: December 31, 2022 2021 Weighted average remaining lease term (years) 7.28 6.26 Weighted average discount rate 5.08 % 4.77 % Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2022 and 2021, respectively, was $9,789 and $10,964 (included in cash flows from operating activities). Maturities of lease liabilities are as follows: 2023 $ 9,300 2024 7,458 2025 6,550 2026 6,254 2027 5,719 Thereafter 7,670 Total undiscounted cash flows 42,951 Less imputed interest 5,456 Present value of lease liabilities $ 37,495 |
Capitalized Software Developmen
Capitalized Software Development Costs, Net | 12 Months Ended |
Dec. 31, 2022 | |
Research and Development [Abstract] | |
CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET | NOTE 7:- CAPITALIZED SOFTWARE DEVELOPMENT COSTS, NET The changes in capitalized software development costs for the years ended December 31, 2022 and 2021 were as follows: Year ended December 31, 2022 2021 Balance at the beginning of the year $ 25,203 $ 24,362 Capitalization 6,097 7,911 Amortization (5,840 ) (7,679 ) Functional currency translation adjustments (2,034 ) 609 Balance at year end $ 23,426 $ 25,203 Amortization of capitalized software development costs for 2022, 2021 and 2020, was $5,840, $7,679 and $6,558, respectively. Amortization expense is included in cost of revenues. |
Other Intangible Assets, Net
Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Intangible Assets, Net [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | NOTE 8:- OTHER INTANGIBLE ASSETS, NET a. Other intangible assets, net, are comprised of the following: Weighted December 31, 2022 2021 Original amounts: Customer relationships 6.7 $ 55,178 $ 57,317 Technology 3.3 70,264 70,123 Patents 1.5 1,364 1,544 126,806 128,984 Accumulated amortization: Customer relationships 27,717 23,940 Technology 53,832 46,960 Patents 1,254 1,145 82,803 72,045 Other intangible assets, net $ 44,003 $ 56,939 In December 2021, the Company purchased assets from a U.S company, for a total consideration of approximately $600. The acquired assets mainly included customer relationship and technology. b. Amortization of other intangible assets was $12,158, $15,630 and $12,127 for 2022, 2021 and 2020, respectively. c. Estimated amortization expense for future periods: 2023 $ 11,751 2024 8,862 2025 6,665 2026 6,412 Thereafter 10,313 $ 44,003 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
GOODWILL | NOTE 9:- GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 are as follows: Year ended December 31, 2022 2021 Balance at the beginning of the year $ 261,141 $ 264,282 Acquisitions 2,123 593 Functional currency translation adjustments (11,032 ) (3,734 ) Balance at year end $ 252,232 $ 261,141 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 10:- ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2022 2021 Government authorities $ 15,297 $ 7,010 Accrued expenses and other liabilities 19,409 26,038 $ 34,706 $ 33,048 |
Series B Debentures, Net of Cur
Series B Debentures, Net of Current Maturities | 12 Months Ended |
Dec. 31, 2022 | |
Series B Debentures, Net of Current Maturities [Abstract] | |
SERIES B DEBENTURES, NET OF CURRENT MATURITIES | NOTE 11:- SERIES B DEBENTURES, NET OF CURRENT MATURITIES December 31, 2022 2021 Series B Debentures $ 79,186 $ 98,982 Less: Current maturities (19,796 ) (19,796 ) Less: Unamortized debt discounts and issuance costs (114 ) (200 ) $ 59,275 $ 78,986 In September 2017, the Company issued Series B Debentures in the aggregate principal amount of NIS 280 million (approximately $79.2 million), linked to US dollars, payable in eight equal annual payments of $9,898, on January 1 of each of the years 2019 through 2026. The outstanding principal amount of the Series B Debentures will bear a fixed interest rate of 3.37% per annum, payable on January 1 and July 1 of each of the years 2018 through 2025, with one final interest payment on January 1, 2026. Debt discount and issuance costs were approximately $956, allocated to the Series B Debentures discount and are amortized as financial expenses over the term of the Series B Debentures due in 2026. In June 2020, the Company expanded the Series B Debentures issuance and raised an additional NIS 210 million (approximately $60.3 million) linked to US dollars, payable in six equal annual payments of $9,898, on January 1 of each of the years 2021 through 2026. The outstanding principal amount of the Series B Debentures will bear a fixed interest rate of 3.37% per annum, payable on January 1 and July 1 of each of the years 2020 through 2025, with one final interest payment on January 1, 2026. Debt premium and issuance costs, net, were approximately $80, allocated to the Series B Debentures discount and are amortized as financial expenses over the term of the Series B Debentures due in 2026. The Series B Debentures are listed for trading on the Tel-Aviv Stock Exchange. The Series B Debentures are unsecured and non-convertible. The Series B Debentures interest may be increased in the event that the debentures’ rating is downgraded below a certain level. The Company has undertaken to maintain a number of conditions and limitations on the manner in which it operates its business, including limitations on its ability to undergo a change of control, distribute dividends, incur a floating charge on the Company’s assets, or undergo an asset sale or other change that results in a fundamental change in the Company’s operations. In accordance with the indenture for the Series B Debentures, the Company is required to meet the following financial covenants: (1) Target shareholders’ equity (excluding minority interest)- above $120 million – as of December 31, 2022, total shareholders’ equity was approximately $400.5 million; and (2) Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company’s Series B Debentures) below 65% - as of December 31, 2022 the ratio of net financial indebtedness to net capitalization was (32.96)%. (3) Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5. As of December 31, 2022, the Target ratio of net financial indebtedness to EBITDA was (1.14). As of December 31, 2022, Sapiens is in compliance with all of its financial covenants. During the years ended December 31, 2022, 2021 and 2020, the Company recorded $2,671, $3,337 and $3,180, respectively, of interest expense and $85, $106 and $134, respectively of amortization of debt issuance costs, premium and discount in respect of the Series B Debentures. As of December 31, 2022, and 2021, the estimated fair value of the Company’s Series B Debentures was $75,192 and $100,465, respectively. The fair value was determined based on the closing trading price of the Series B Debentures as of the last day of trading for the period. The fair value of the Series B Debentures is considered a Level 2 measurement as they are not actively traded. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12:- COMMITMENTS AND CONTINGENCIES a. Sapiens Technologies (1982) Ltd. (“Sapiens Technologies”), a subsidiary incorporated in Israel, was partially financed under programs sponsored by the Israel Innovation Authority (“IIA”), formerly the Office of the Chief Scientist, for the support of certain research and development activities conducted in Israel. In exchange for participation in the programs by the IIA, the Company agreed to pay 3.5% of total net consolidated license and maintenance revenue and 0.35% of the net consolidated consulting services revenue related to the software developed within the framework of these programs based on an understanding with the IIA reached in January 2012. Royalty expense amounted to $816, $531 and $494 in 2022, 2021 and 2020, respectively, and are included in cost of revenues. As of December 31, 2022 and 2021, the Company had a contingent liability to pay royalties of up to $5,661 and $5,454, respectively. b. The Company provided bank guarantees in the amount of $846 as security for the rent to be paid for its leased offices. The bank guarantees will be expired and renewed in February 2023. As of December 31, 2022 and 2021, the Company provided bank guarantees of $262 and $320, respectively, as security for the performance of various contracts with customers and suppliers. c. In accordance with the indenture for the Series B Debentures, the Company is required to meet certain financial covenants. See Note 11 above. d. Contingent purchase obligations As part of the Company’s acquisitions in recent years, the Company has several contingent earn-out obligations depending on retention and performance criteria. Refer to Note 3 for further information. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 13:- TAXES ON INCOME a. Israeli taxation: 1. Corporate tax rates in Israel: Taxable income of Israeli companies was generally subject to corporate tax at the rate of was 23% in 2022 and 2021. Some of the Israeli subsidiaries are eligible for tax benefits as described below. 2. Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 (“the Law”): Amendment 73 to the law: In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years) 2016, which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the 2017 Amendment”) was published and was pending the publication of regulations, in May 2017 regulations were promulgated by the Finance Ministry to implement the “Nexus Principles” based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Following the publication of the regulations the 2017 Amendment became fully effective. According to the 2017 Amendment, a Preferred Technological Enterprise, as defined in the 2017 Amendment, with total consolidated revenues of the group companies is less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A-a tax rate of 7.5%). In order to qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. A PTE that acquires Benefited Intangible Assets from a foreign company for more than NIS 200 million after January 1, 2017, will be eligible for 12% reduce tax rate on capital gain upon sale of the Benefited Intangible Assets. The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a Special Preferred Technology Enterprise (“SPTE”) (an enterprise for which, among others, total consolidated revenues of its parent company and all subsidiaries is at least NIS 10 billion) and will thereby enjoy a reduced corporate tax rate of 6% on PTI regardless of the Company’s geographic location within Israel. In addition, a SPTE will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefited Intangible Assets” to a related foreign company if the Benefited Intangible Assets were either developed by the Special Preferred Technology Enterprise or acquired from a foreign company on or after January 1, 2017. Starting from 2017 under Amendment 73 to the Investment Law, part of the Company’s taxable income in Israel were entitled to a preferred 12% tax rate. Since 2019, under SPTE the tax rate for part of the Company’s taxable income in Israel has been reduced to a 6% corporate tax rate. Amendment 74 to the Encouragement Law: On November 15, 2021, the Economic Efficiency Law (Legislative Amendments for Achieving Budget Targets for the 2021 and 2022 Budget Years), 2021 (“the Economic Efficiency Law”), was enacted. This Law establishes a temporary order allowing Israeli companies to release tax-exempt earnings (“trapped earnings” or “accumulated earnings”) accumulated until December 31, 2020, through a mechanism established for a reduced corporate income tax rate applicable to those earnings (“the Temporary Order”). In addition to the reduced corporate income tax (CIT) rate, Article 74 to the Encouragement Law was amended whereby effective from August 15, 2021, for any dividend distribution (including a dividend as per Article 51B to the Encouragement Law) by a company which has trapped earnings, there will be a requirement to allocate a portion of that distribution to the trapped earnings. The tax-exempt income is attributable to the Company’s previous status as “Approved Enterprise” and “Benefited Enterprise”. Such tax-exempt income cannot be distributed to shareholders without subjecting the Company to payable income taxes. If dividends are distributed from previous tax-exempt profits, the Company will be liable for income tax at the rate applicable to its profits from the Approved Enterprise in at the tax rate enacted in the year in which the income was earned. According to the Temporary Order, the reduction of CIT will apply to earnings that are released (with no requirement for an actual distribution) within a period of one year from the date of enactment of the Temporary Order. The reduction in the CIT is dependent on the proportion of the trapped earnings that are released in relation to the total trapped earnings, and on the applicable CIT rate in the years the earnings were generated. Consequently, the larger the proportion of the trapped earnings that are released, the lower the tax in respect of the distribution. The minimum tax rate is 6%. Further, a company that elects to pay a reduced CIT is required to invest in its industrial enterprise a designated amount in accordance with the Economic Efficiency Law within a period of five years commencing from the tax year in which the election is made. The designated investment should be utilized for the acquisition of production assets, and/or investments in research and development and/or compensation to additional new employees. According to ASC 740, a deferred tax liability would generally be recorded relating to corporate taxes that would be owed on the distribution of profits if management has currently the intention to declare dividends of its tax-exempt earnings. In 2021, the Company decided to apply and benefit from the Temporary Order and pay the reduced CIT as per the provisions of the Economic Efficiency Law in respect of its total accumulated tax-exempt earnings amounting to NIS 109 million (approximately $35.3 million), and accordingly recognized deferred tax liability of $3,531. In 2022, the Company filed its application for the Temporary Order and paid the required amount to the ITA. As of December 31, 2022 all the trapped earnings were released. 3. Foreign Exchange Regulations: Under the Foreign Exchange Regulations, some of the Company’s Israeli subsidiaries calculate their tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31, of each year for tax purposes only. b. Income taxes on non-Israeli subsidiaries: Non-Israeli subsidiaries are taxed according to the tax laws in their respective country of residence. Deferred income taxes were provided in relation to undistributed earnings of non-Israeli subsidiaries, which the Company intends to distribute in the near future. The Company intends to permanently reinvest undistributed earnings in the foreign subsidiaries in which earnings arose, in the vast majority of its subsidiaries. If the earnings, for which deferred taxes were not provided, were distributed in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and non-Israeli withholding taxes. The amount of undistributed earnings of foreign subsidiaries that are considered to be reinvested as of December 31, 2022, was $61,275 and the amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that were essentially permanent in duration as of December 31, 2022, was $6,078. c. Tax Reform - United States of America: The U.S. Tax Cuts and Jobs Act of 2017 (“TCJA”) was approved on December 22, 2017. This legislation makes significant changes to the U.S. Internal Revenue Code. Such changes include a reduction in the corporate tax rate and limitations on certain corporate deductions and credits, among other changes. The TCJA reduces the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018. In addition, the TCJA makes certain changes to the depreciation rules and implements new limits on the deductibility of certain expenses and deduction. The TCJA introduced the rules for tax on the global intangible low-taxed income (“GILTI”) on foreign income in excess of a deemed return on tangible assets of foreign corporations. One of our subsidiaries is subject to GILTI. Starting from 2022, the TCJA requires taxpayers to capitalize research and development expenses with amortization periods over five for research activities conducted in the United States and over fifteen years for research activities conducted outside of the United States, which has increased the Company’s tax liability in the U.S. The tax provision expense has increased from prior year to account for the capitalization of research and development costs starting in 2022. d. Net operating losses carryforwards: As of December 31, 2022, certain subsidiaries had tax loss carryforwards in total of approximately $32,592. Most of these carryforward tax losses have no expiration date. e. Deferred tax assets and liabilities: Significant components of the Company deferred tax assets and liabilities are as follows: December 31, 2022 2021 Deferred tax assets: Net operating losses carryforwards*) $ 7,274 $ 7,142 Research and development 7,765 1,316 Lease liability 5,094 8,725 Reserves and allowances 4,737 5,119 Other 2,397 3,383 Deferred tax assets before valuation allowance 27,267 25,685 Valuation allowance (4,815 ) (5,104 ) Deferred tax assets 22,452 20,581 Deferred tax liabilities: Capitalized software development costs (3,085 ) (3,045 ) Lease right-of-use asset (4,739 ) (8,098 ) Acquired intangibles (10,538 ) (13,169 ) Property and equipment (229 ) (367 ) Undistributed earnings (5,622 ) **) (8,047 ) Other (184 ) (93 ) Deferred tax liabilities (24,397 ) (32,819 ) Deferred tax liabilities, net $ (1,945 ) $ (12,238 ) *) Net of $1,145 and $1,180 provision for unrecognized tax benefits related to carryforward losses as of December 31, 2022 and 2021, respectively. **) Include $3,531 related to the Company’s election to release the trapped earnings - see Note 13.a.2. December 31, 2022 2021 Deferred tax assets, net $ 9,418 $ 3,122 Deferred tax liabilities, net (11,363 ) (15,360 ) Deferred tax liabilities, net $ (1,945 ) $ (12,238 ) The Company has provided valuation allowances in respect of certain deferred tax assets resulting from operating losses carry forwards and other reserves and allowances due to uncertainty concerning realization of these deferred tax assets. f. Income before taxes on income is comprised as follows: Year ended December 31, 2022 2021 2020 Domestic (Israel) $ 27,373 $ 39,248 $ 34,037 Foreign 38,177 18,038 7,161 $ 65,550 $ 57,286 $ 41,198 g. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income for an Israeli company, and the actual tax expense as reported in the statements of income is as follows: Year ended December 31, 2022 2021 2020 Income before taxes on income, as reported in the statements of income $ 65,550 $ 57,286 $ 41,198 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income $ 15,077 $ 13,176 $ 9,476 Increase (decrease) in taxes resulting from: Foreign and preferred enterprise tax rates differences (5,579 ) (7,338 ) (5,511 ) Changes in carry forward tax losses and other temporary differences for which valuation allowance was provided (289 ) (1,645 ) 558 Non-deductible expenses 1,100 1,437 1,722 Increase in uncertain tax positions, net 2,855 616 755 Undistributed earnings (461 ) - - Release of trapped earnings (see note 13.a.2) - 3,531 - Others (84 ) 187 41 Taxes on income, as reported in the statements of income $ 12,619 $ 9,964 $ 7,041 h. Taxes on income are comprised as follows: Year ended December 31, 2022 2021 2020 Current $ 22,912 $ 11,866 $ 7,543 Deferred (10,293 ) (1,902 ) (502 ) $ 12,619 $ 9,964 $ 7,041 Year ended December 31, 2022 2021 2020 Domestic (Israel) $ 4,194 $ 9,086 $ 3,695 Foreign 8,425 878 3,346 $ 12,619 $ 9,964 $ 7,041 i. Uncertain tax benefits: A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2022 2021 Balance at the beginning of the year $ 8,920 $ 7,646 Increase in tax positions 4,455 2,731 Decrease in tax positions (588 ) (290 ) Statue limitation (1,012 ) (890 ) Tax assessment close - (277 ) Balance at the end of the year $ 11,775 $ 8,920 As of December 31, 2022 and 2021, accrued interest related to unrecognized tax benefits amounted to $1,253 and $1,143, respectively. Although the Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement, there is no assurance that the final tax outcome of its tax audits will not be different from that which is reflected in the Company’s income tax provisions. Such differences could have a material effect on the Company’s income tax provision, cash flow from operating activities and net income in the period in which such determination is made. Tax assessments filed by part of the Company’s Israeli subsidiaries through the year ended December 31, 2017, are considered to be final. The Company is currently under audit in several jurisdictions for the tax years 2018 and onwards. Timing of the resolution of audits is highly uncertain and therefore, as of December 31, 2022, the Company cannot estimate the change in unrecognized tax benefits resulting from these audits. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 14:- EQUITY a. The common shares of the Company are traded on the NASDAQ and on the Tel-Aviv Stock Exchange. Common shares confer upon their holders voting rights, the right to receive cash dividends and the right to share in excess assets upon liquidation of the Company. On October 20, 2020, the Company completed a secondary public offering of its ordinary shares on the NASDAQ. The Company issued 3,898,304 shares at a price of $29.5 per share before issuance expenses and underwriting discounts. The total proceeds from the issuance amounted to $108,737, net of issuance expenses of $509. b. Share Incentive Plan: In 2011, the Company’s board of directors approved its 2011 Share Incentive Plan (the “2011 Plan”) pursuant to which the Company’s employees, directors, officers, consultants, advisors, suppliers, business partners, customers and any other person or entity whose services are considered valuable are eligible to receive awards of share options, restricted shares, restricted share units and other share-based awards. Options granted under the 2011 Plan may be exercised for a period of up to six years from the date of grant and become exercisable in four equal, annual installments, beginning with the first anniversary of the date of the grant, or pursuant to such other schedule as may provide in the option agreement. The total number of Common Shares available under the 2011 Plan was set at 8,000,000. Upon the approval of the 2011 Plan, the board of directors determined that no further awards would be issued under the Company’s previously existing share incentive plans. Upon the lapse of ten years following the adoption of the 2011 Plan, no further grants could be made under the plan. Consequently, in August 2021, we adopted our 2021 Share Incentive Plan (the “2021 Plan”), and all Common Shares that were reserved for issuance under the 2011 Plan and not subject to outstanding grants were transferred to the 2021 Plan. Even after our adoption of the 2021 Plan, all outstanding grants that were made under the 2011 Plan remain subject to the terms of the 2011 Plan. Common Shares underlying an award granted under the 2011 Plan that has expired, or is cancelled, terminated or forfeited for any reason, without having been exercised, are available for issuance under the 2021 Plan in accordance with the terms of the 2021 Plan. As of December 31, 2022, 1,560,205 common shares of the Company were available for future grant under the 2021 Plan. Any options granted under the 2021 Plan which are forfeited, cancelled, terminated or expired, will become available for future grant under the 2021 Plan. A summary of the stock option activities in the year ended on December 31, 2022 is as follows: Year ended December 31, 2022 Amount of Weighted Weighted Aggregate intrinsic value Outstanding on January 1, 2022 1,835,385 22.27 3.77 $ 22,374 Granted 404,500 21.19 Exercised (21,253 ) 10.65 Expired and forfeited (85,869 ) 24.07 Outstanding on December 31, 2022 2,132,763 21.51 3.30 5,531 Vested and expected to vest 2,132,763 21.51 3.30 5,531 Exercisable on December 31, 2022 1,010,513 16.21 1.95 $ 4,305 The weighted average grant date fair values of the options granted during the years ended December 31, 2022, 2021 and 2020 were $7.22, $10.35 and $7.99, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $250, $8,505 and $11,658, respectively. The options outstanding under the Company’s stock option plans as of December 31, 2022 have been separated into ranges of exercise prices as follows: Weighted Weighted Average Options Average Weighted Options Exercise outstanding remaining average Exercisable price of as of contractual exercise as of Options Ranges of December 31, Term price December 31, Exercisable exercise price 2022 (Years) $ 2022 $ 8 2,000 1.18 8 2,000 8 8.37-10.02 590,097 0.82 9.96 590,097 9.96 10.78-18.77 220,416 4.30 16.49 62,916 11.99 22.54-24.33 423,250 4.42 23.10 141,250 23.69 27.79-31.57 830,000 4.03 29.27 197,500 29.46 33.99 67,000 4.92 33.99 16,750 33.99 2,132,763 3.30 21.51 1,010,513 16.21 The total equity-based compensation expenses related to all of the Company’s equity-based awards, recognized for the years ended December 31, 2022, 2021 and 2020, was $3,835, $4,711 and $3,987, respectively. Such expenses are recorded as part selling, marketing, general and administrative expenses in the Company’s consolidated statements of income. A summary of the RSU activities in the year ended on December 31, 2022, is as follows: Amount of Weighted Unvested on January 1, 2022 203,756 26.46 Granted 7,500 23.24 Vested (53,948 ) 26.32 Expired and forfeited (18,164 ) 24.73 Unvested on December 31, 2022 139,144 26.56 The Company recorded compensation costs related to RSUs of $794 for the year ended December 31, 2022, which were included in Selling, marketing, general and administrative expenses in the Company’s consolidated statements of income. c. As of December 31, 2022, there was $8,329 of total unrecognized compensation cost related to non-vested options and RSUs, which is expected to be recognized over a weighted-average period of 1.84 years. d. Dividend: On May 3, 2022, the Company’s board of directors approved the distribution, based on 2021 results, of a cash dividend of $0.47 per common share for a total amount of $25,900 that was paid on May 25, 2022. On the same meeting, the Company’s board of directors approved a change to the dividend policy, whereby the dividend distribution will be paid on a semi-annual basis. On August 3, 2022, the Company’s board of directors approved the distribution, based on 2022 first half results, of a cash dividend of $0.23 per common share for a total amount of $12,679 that was paid during August 2022. |
Related Parties Transactions
Related Parties Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | NOTE 15:- RELATED PARTIES TRANSACTIONS Agreements with controlling shareholder and its affiliates: The Company has in effect services agreements with certain companies that are affiliated with Formula, Sapiens’ parent company (most recently since December 23, 2014 and thereafter), and Asseco, Sapiens’ ultimate parent company, pursuant to which the Company has received services amounting to approximately $14,813 , During the years ended December 31, 2022, 2021 and 2020, Asseco provided back office and professional services and fixed assets to the Company subsidiary, Sapiens Software Solutions (Poland) Sp. z o.o in an amount totaling approximately $181, $197 and $521, respectively. As of December 31, 2022, and 2021, the Company had trade payables balances due to its related parties in amount of approximately $2,927 and $3,187, respectively. In addition, as of December 31, 2022 and 2021, the Company had trade receivables balances due from its related parties in amount of approximately $1,149 and $858, respectively. |
Basic and Diluted Net Earnings
Basic and Diluted Net Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET EARNINGS PER SHARE | NOTE 16:- BASIC AND DILUTED NET EARNINGS PER SHARE Year ended December 31, 2022 2021 2020 Numerator (thousands): Net income attributed to Sapiens’ shareholders $ 52,595 $ 47,171 $ 33,775 Denominator: Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock 55,116,832 54,785,243 51,208,319 Stock options and RSU 453,661 805,058 950,958 Denominator for diluted net earnings per share - adjusted weighted average number of shares 55,570,493 55,590,301 52,159,277 The weighted average number of shares related to outstanding anti-dilutive options excluded from the calculations of diluted net earnings per share was 1,275,275, 804,438 and 200,000 for the years 2022, 2021 and 2020, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 17:- GEOGRAPHIC INFORMATION a. The Company operates in a single reportable segment as a provider of software solutions for the insurance industry. See Note 1 for a brief description of the Company’s business. The data below is presented in accordance with ASC 280, “Segment Reporting”. b. Geographic information: The following table sets forth revenues by country based on the billing address of the customer. Other than as shown below, no other country accounted for more than 10% of the Company’s revenues during the years ended December 31, 2022, 2021 and 2020. Year ended December 31, 2022 2021 2020 1. Revenues: North America *) $ 197,519 $ 188,980 $ 187,258 Europe **) 232,840 237,054 172,660 Rest of the world 44,377 35,001 22,985 $ 474,736 $ 461,035 $ 382,903 *) Revenues from North America that are shown in the above table consist of revenues primarily from the United States (in amounts of $195,916, $186,909 and $186,687 during the years ended December 31, 2022, 2021 and 2020, respectively). Revenues from United States are higher by more than 20% than any other country (including Europe and rest of the world countries). **) Revenues from Europe include revenues from United Kingdom, or UK, European Union countries (including Nordic region) and Israel. Revenues from the UK amounted to $64,380, $63,738 and $42,078 during the years ended December 31, 2022, 2021 and 2020, respectively. December 31, 2022 2021 2. Long- lived assets, including property and equipment, net and operation right-of-use assets: Israel $ 16,184 $ 22,263 North America 8,794 4,737 APAC 17,229 20,104 Europe 3,502 11,019 $ 45,709 $ 58,123 c. Major customer data: For the years ended December 31, 2022, 2021 and 2020, no single customer contributed more than 10% to the Company’s total revenues. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 18:- REVENUE Remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. The aggregate amount of consideration allocated to performance obligations either not satisfied or partially unsatisfied was approximately $209 million as of December 31, 2022. The Company expects to recognize in 202 3 . Disaggregation of revenue The following table provides information about disaggregated revenue by type of contract, and timing of revenue recognition (in thousands): Years ended 2022 2021 Project implementation phase: Revenues from pre-production implementation projects $ 189,335 $ 178,419 Revenues from post-production implementation projects 285,401 282,616 Total $ 474,736 $ 461,035 Pre-production and post-production revenues include license, maintenance, professional services and cloud solutions. Contract balances: The following table provides information about trade receivables, unbilled receivables, contract assets and contract liabilities (deferred revenues) from contracts with customers (in thousands): December 31, 2022 2021 Trade receivables (net of allowance for credit losses of $1,130 and $1,337 on December 31, 2022 and 2021, respectively) 58,563 53,985 Short-term unbilled receivables *) 20,488 16,072 Long-term unbilled receivables *) 1,169 858 Contract assets **) 15,064 6,988 Deferred revenues (short-term contract liabilities) ***) 30,720 39,614 Long-term deferred revenues (long-term contract liabilities) ***) - 299 *) Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations. **) Contract assets relate to unbilled receivables (including a long-term balance of $733 and $784 presented in other long-term assets as of December 31, 2022 and 2021, respectively), which represent revenue recognized on arrangements for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date, and the right to consideration is generally subject to milestone completion, client acceptance or factors other than the passage of time. ***) Deferred revenue represents billings to customers for which revenue has not yet been recognized. Deferred revenue that is expected to be recognized beyond the next 12 months is considered long-term deferred revenue and included in other long-term liabilities in the consolidated balance sheets. During the year ended December 31, 2022, the Company recognized $37,447 that was included in deferred revenues (short-term contract liability) balance on December 31, 2021. |
Selected Statements of Operatio
Selected Statements of Operations Data | 12 Months Ended |
Dec. 31, 2022 | |
Selected Statements of Operations Data [Abstract] | |
SELECTED STATEMENTS OF OPERATIONS DATA | NOTE 19:- SELECTED STATEMENTS OF OPERATIONS DATA a. Research and development expenses, net: Year ended December 31, 2022 2021 2020 Total costs $ 64,753 $ 61,924 $ 47,156 Less - capitalized software development costs (6,097 ) (7,911 ) (5,798 ) Research and development expenses, net $ 58,656 $ 54,013 $ 41,358 b. Financial expense, net Year ended December 31, 2022 2021 2020 Interest expenses, net $ 1,427 $ 2,907 $ 3,922 Exchange rate loss (gain), net (360 ) 342 (232 ) PPP loan forgiveness *) (1,465 ) - - Derivatives loss (gains), net 1,193 (3,338 ) (104 ) Bank charges and other 146 291 219 Financial expense, net $ 941 $ 202 $ 3,805 *) See note 3 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 20:- SUBSEQUENT EVENT On March 29, 2023, based on the results of the six months period commencing July 1, 2022 until December 31, 2022, the Company's board of directors approved the distribution of a cash dividend of $0.25 per common share for a total amount of approximately $13,800 that will be paid during April 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes assets, share-based compensation, value of intangible assets and goodwill, as well as the determination of revenue recognition from contracts accounted for based on the estimate of percentage of completion. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Financial statements in United States dollars | b. Financial statements in United States dollars: The currency of the primary economic environment in which the operations of Sapiens and certain subsidiaries are conducted is the U.S. dollar (“dollar”); thus, the dollar is the functional currency of Sapiens and certain subsidiaries. Sapiens and certain subsidiaries’ transactions and balances denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been remeasured to dollars in accordance with ASC 830, “Foreign Currency Matters”. All transaction gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements of income as financial income or expenses, as appropriate. For those subsidiaries, whose functional currency has been determined to be their local currency, assets and liabilities are translated at year-end exchange rates and statement of income items are translated at average exchange rates prevailing during the year. Such translation adjustments are recorded as a separate component of an accumulated other comprehensive income (loss) within equity. |
Principles of consolidation | c. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests of subsidiaries represent the non-controlling shareholders’ share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. |
Cash equivalents | d. Cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash, with original maturities of three months or less at the date acquired. |
Short-term bank deposits | e. Short-term bank deposits: Short-term bank deposits with original maturities of more than three months and less than one year at the date acquired are included in short-term bank deposits. |
Trade receivables | f. Trade receivables: Trade receivables are stated net of credit losses allowance. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Estimated credit loss allowance is recorded as general and administrative expenses on the Company’s consolidated statements of income. The following table presents the changes in the allowance for credit losses for the years ended December 31, 2022 and 2021: December 31, 2022 2021 Balance at the beginning of the year $ 1,337 $ 1,558 Current period provision 428 68 Write offs (635 ) - Recoveries collected - (289 ) Balance at year end $ 1,130 $ 1,337 |
Property and equipment, net | g. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers and peripheral equipment 20 - 33 Office furniture and equipment 6 - 33 Buildings 2.5 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Leases | h. Leases: The Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: (1) whether the contract involves the use of an identified asset, (2) whether the Company obtains the right to substantially all of the economic benefits from the use of the asset throughout the period of use, and (3) whether the Company has the right to direct the use of the asset. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term, the lease contains an option to purchase the asset that is reasonably certain to be exercised, the lease term is for a major part of the remaining useful life of the asset, the present value of the lease payments equals or exceeds substantially all of the fair value of the asset, or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. Since all of the Company’s lease contracts do not meet any one of the criteria above, the Company concluded that all of its lease contracts should be classified as operation leases. For lease with terms greater than 12 months, ROU assets and liabilities are recognized on the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate (“IBR”) based on the information available on the commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. Moreover, the ROU asset may also include initial direct costs, which are incremental costs of a lease that would not have been incurred if the lease had not been obtained. |
Research and development costs | i. Research and development costs: Research and development costs incurred in the process of software production before establishment of technological feasibility are charged to expenses as incurred. Certain internal and external costs incurred to develop software to be sold are capitalized after technological feasibility is established in accordance with ASC 985-20, “Software - Costs of Software to be Sold Leased or Marketed”. Based on the Company’s product development process, technological feasibility is established upon completion of a detailed program design. Costs incurred by the Company between completion of the detailed program design and the point at which the product is ready for general release, have been capitalized. Capitalized software development costs are amortized using the straight-line method over the estimated useful life of the software products (primarily seven years). |
Business combinations | j. Business combinations: The Company accounts for its business acquisitions in accordance with Accounting Standards Codification ASC No. 805, “Business Combinations”. The Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date. The total purchase price allocated to the tangible assets, liabilities assumed and intangible assets acquired is assigned based on their fair values as of the date of the acquisition. The excess of the fair value of the purchase price over the fair value of these identifiable assets and liabilities is recorded as goodwill. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies’ respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The Company accounts for a transaction that does not meet the definition of a business as an asset acquisition Under ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business (“2017-01”), while first determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the single asset or group of assets, as applicable, is not a business. |
Other intangible assets, net | k. Other intangible assets, net: Technology and patents acquired are amortized over their estimated useful life on a straight-line basis. The acquired customer relationships are amortized over their estimated useful lives in proportion to the economic benefits realized method. The average annual rates for other intangible assets are as follows: % Technology 13 - 33 Customer relationships 7 – 17 Patents 10 |
Goodwill | l. Goodwill: Goodwill represents the excess of the purchase price in a business combination over the fair value of the identifiable tangible and intangible assets acquired. Under ASC 350,“Intangibles- Goodwill and Other” (“ASC 350”), goodwill is subject to an annual impairment test at least annually or more frequently if impairment indicators are present. Goodwill impairment is required if the carrying amount of a reporting unit exceeds its estimated fair value. The Company operates in four reporting units: L&P (Life & Pension), P&C (Property & Casualty), Decision and IPELS. For the years ended December 31, 2022, 2021 and 2020, no impairment of goodwill has been recorded. |
Impairment of long-lived assets | m. Impairment of long-lived assets: The Company’s long-lived assets to be held and used including right-of-use assets and identifiable intangibles that are subject to amortization are reviewed for impairment in accordance with ASC 360 “Property, Plant, and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360 provides examples of events or changes in circumstances that might indicate that impairment exists for a particular long-lived asset or asset group. Among those events and circumstances that the Company believes to be impairment indicators are: - A significant decrease in the market price of a long-lived asset (asset group). - A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During 2022, no impairment losses have been identified. During 2021 and 2020, the Company identified an impairment loss of $1,439 and $351, respectively, as outlined in Note 6. |
Revenue recognition | n. Revenue recognition: The Company implements the provisions of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). See Note 18 for further disclosures. Revenues are recognized when control of the promised goods or services are transferred to the customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company generates revenues mainly from sales of software licenses which include significant implementation and customization services. In addition, the Company generates revenues from post implementation consulting services and maintenance services. Revenues from these contracts are based on either fixed price or time and material. Revenue from long term contracts which involve significant implementation, customization, or integration of the Company’s software license to customer-specific requirements are considered as one performance obligation satisfied over-time. The Company recognizes revenue on such contracts over time, using the percentage of completion accounting method. The Company recognizes revenue as the work is performed, based on a ratio between actual costs incurred compared to the total estimated costs for the contract. Determining the projected labor costs requires understanding the project-specific circumstances, including the specific terms and conditions of each contract, changes to the project schedule, and complexity of the project. Provisions for estimated losses on uncompleted contracts are made during the period in which such losses become probable, in the amount of the estimated loss on the entire contract. When post implementation and consulting services do not involve significant customization, the Company accounts for such services as performance obligations satisfied over time and revenues are recognized as the services are provided. When the Company enters into a contract for the sale of software license which does not require significant implementation services, and the customer receives the rights to use the perpetual or term-based software license, the Company recognizes revenue from the sale of the software license at the time of delivery, when the customer receives control of the software license. The software license is considered a distinct performance obligation recognized at a point-in-time, as the customer can benefit from the software on its own or together with other readily available resources. The Company allocates the transaction price for each contract to each performance obligation identified in the contract based on the relative standalone selling price (SSP). The Company determines SSP for the purposes of allocating the transaction price to each performance obligation by considering several external and internal factors including, but not limited to, transactions where the specific performance obligation is sold separately, historical actual pricing practices and geographies in which the Company offers its services. If a specific performance obligation, such as the software license, is sold for a broad range of amounts (that is, the selling price is highly variable) or if the Company has not yet established a price for that good or service, and the good or service has not previously been sold on a standalone basis (that is, the selling price is uncertain), the Company applies the residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs with any residual amount of transaction price allocated to the remaining specific performance obligation. In addition to software license fees, contracts with customers may contain an agreement to provide maintenance services. The Company considers the maintenance performance obligation as a distinct performance obligation that is satisfied over time and recognized on a straight-line basis over the contractual period. The Company pays sales commissions primarily to sales personnel based on their attainment of certain predetermined sales goals. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Sales commissions for initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and amortized on a straight-line basis over the related contractual renewal period. If the expected amortization period is one-year or less, the Company uses the practical expedient and the commission fee is expensed as incurred. Amortization expense related to these costs are included in sales, marketing, general and administrative expenses . |
Income taxes | o. Income taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. This topic prescribes the use of the asset and liability method, whereby deferred tax asset and liability account balances are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent the Company believes they will not be realized. The Company considers all available evidence, including historical information, long range forecast of future taxable income and evaluation of tax planning strategies. Amounts recorded for valuation allowance can result from a complex series of judgments about future events and can rely on estimates and assumptions. The Company implements a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest as financial expense and penalties as selling, marketing, general and administrative expenses. |
Concentrations of credit risks | p. Concentrations of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, unbilled receivables and contract assets, and foreign currency derivative contracts. The Company’s cash and cash equivalents and short-term bank deposit are invested in bank deposits mainly in US dollars. The Company’s trade receivables are generally derived from sales to large and solid organizations located mainly in North America, Europe and the rest of the world. The Company performs ongoing credit evaluations of its customers and to date has not experienced any material losses. In certain circumstances, the Company may require prepayment. The Company entered into forward contracts, and option contracts intended to protect against the increase in value of forecasted non-dollar currency cash flows. The derivative instruments hedge a portion of the Company’s non-dollar currency exposure. No off-balance sheet concentrations of credit risk exist. |
Accrued severance pay and retirement plans | q. Accrued severance pay and retirement plans: The Company’s liability for severance pay for its Israeli employees is calculated pursuant to Israel’s Severance Pay Law based on the most recent monthly salary of the employees multiplied by the number of years of employment as of the balance sheet date. Employees are entitled to one month’s salary for each year of employment, or a portion thereof. The Company’s liability is fully provided by monthly deposits with insurance policies and severance pay funds and by an accrual. The deposited funds include profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel’s Severance Pay Law or employment agreements. The value of the deposited funds is based on the cash surrendered value of these policies and recorded as an asset in the Company’s consolidated balance sheet. In addition, the Company signed a collective agreement with certain employees, according to which the Company’s contributions for severance pay shall be in lieu of severance compensation and that upon release of the policy to the employee, no additional payments shall be made by the Company to the employee. Generally, the Company, under its sole discretion, pays to these employees the entire liability, irrespective of the collective agreement described per above. Therefore, the net obligation related to those employees is stated on the balance sheet as accrued severance pay. The Company’s agreements with certain employees in Israel are in accordance with Section 14 of the Severance Pay Law, whereas, the Company’s contributions for severance pay shall be in lieu of its severance liability. Upon contribution of the full amount of the employee’s monthly salary, and release of the policy to the employee, no additional calculations shall be conducted between the parties regarding the matter to severance pay and no additional payments shall be made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as they are legally released from obligation to employees once the deposit amounts have been paid. Severance expense for the years 2022, 2021 and 2020 amounted to $5,199, $4,538 and $4,020, respectively. The Company has a 401(k) retirement savings plan for most of its U.S. employees. Each eligible employee may elect to contribute a portion of its employee’s compensation to the plan. The Company has a discretionary employer match. In the reporting periods, this match ranges from 1.25-3% if an employee contributed 5-6%. Such 401(k) employer match expense for the years 2022, 2021 and 2020 amounted to $1,280, $1,282 and $1,233, respectively. |
Basic and diluted net earnings per share | r. Basic and diluted net earnings per share: Basic net earnings per share are computed based on the weighted average number of common shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of common shares outstanding during each year plus dilutive potential equivalent common shares considered outstanding during the year, in accordance with ASC 260, “Earnings Per Share”. |
Stock-based compensation | s. Stock-based compensation: The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made. ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Company uses the Binomial Lattice (“Binomial model”) option-pricing model to estimate the fair value for any options granted. The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, and the probability that the option will be exercised prior to the end of its contractual life. The Company recognizes forfeitures of equity-based awards as they occur. Stock-based compensation cost is measured at the grant date, based on the fair value of the award. The Company recognizes compensation expense for the value of its awards, which have graded vesting, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met. The fair value of each option granted in 2022, 2021 and 2020 using the Binomial model, was estimated on the date of grant with the following assumptions: Year ended December 31, 2022 2021 2020 Contractual life 6 years 6 years 6 years Expected exercise factor 2-2.8 2-2.8 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 35.5%-36.4% 36.3%-36.9% 31.0%-35.2% Risk-free interest rate 3.0%-4.3% 0.5%-1.3% 0.4%-1.8% The risk-free interest rate assumption is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term as of the Company’s employee stock options. Since dividend payment is applied to reduce the exercise price of the option, the effect of the dividend protection is reflected by using an expected dividend assumption of zero. The expected life of options granted is derived from the output of the option valuation model and represents the period of time the options are expected to be outstanding. The expected exercise factor is based on industry acceptable rates since no actual historical behavior by option holders exists. Expected volatility is based on the historical volatility of the Company. |
Fair value of financial instruments | t. Fair value of financial instruments: ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company measures its foreign currency derivative instruments at fair value. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The carrying amounts of cash and cash equivalents, short-term bank deposit, trade receivables, other receivables and prepaid expenses (excluding derivatives) and accounts payable, accrued expenses and other current liabilities approximate fair value due to the short-term maturities of such instruments. The following table presents assets measured at fair value on a recurring basis as of December 31, 2022 and 2021: December 31, 2022 2021 Fair value measurement using Other receivables and prepaid expenses: Derivative instruments $ 109 $ 188 |
Derivatives and hedging | u. Derivatives and hedging: The Company enters into option contracts and forward contracts to hedge certain transactions denominated in foreign currencies. The purpose of the Company’s foreign currency hedging activities is to protect the Company from risk that the eventual dollar cash flows from international activities will be adversely affected by changes in the exchange rates. The Company’s option and forward contracts do not qualify as hedging instruments under ASC 815, “Derivatives and hedging”. Changes in the fair value of option strategies are reflected in the consolidated statements of income as financial income or expense. In 2022, 2021 and 2020 the Company entered into forward contracts in the aggregate notional amounts of $168,850, $140,688 and $260,862, respectively, and in 2022, 2021 and 2020, the Company entered into option contracts in the notional amounts of nil As of December 31, 2022, 2021 and 2020, the Company had outstanding options and forward contracts, in the notional amount of $15,900, $20,000 and $3,866, respectively. In 2022 the Company recorded financial expense, net of $1,193, and in 2021 and 2020 the Company recorded financial income, net of $3,338 and $104 respectively, with respect to the above transactions, presented in the statements of income as part of financial expenses, net. |
Treasury shares | v. Treasury shares: Repurchased common shares are held as treasury shares. The Company presents the cost to repurchase treasury stock as a reduction of shareholders’ equity. |
Comprehensive income (loss) | w. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC 220, “Comprehensive Income”. Comprehensive income (loss) generally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions to, shareholders. The Company records transactions under comprehensive income net of income tax. |
Recently adopted accounting standards | x. Recently adopted accounting standards: In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance.” The new standard improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this ASU did not have a significant impact on the Company’s financial statements and disclosures. |
Recently issued accounting pronouncements | y. Recently issued accounting pronouncements: In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The standard requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. This ASU is currently not expected to have a material impact on our consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of changes in the allowance for credit losses | December 31, 2022 2021 Balance at the beginning of the year $ 1,337 $ 1,558 Current period provision 428 68 Write offs (635 ) - Recoveries collected - (289 ) Balance at year end $ 1,130 $ 1,337 |
Schedule of property plant and equipment useful life | % Computers and peripheral equipment 20 - 33 Office furniture and equipment 6 - 33 Buildings 2.5 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Schedule of weighted average annual rates for other intangible assets | % Technology 13 - 33 Customer relationships 7 – 17 Patents 10 |
Schedule of fair value of each option granted | Year ended December 31, 2022 2021 2020 Contractual life 6 years 6 years 6 years Expected exercise factor 2-2.8 2-2.8 2-2.8 Dividend yield 0% 0% 0% Expected volatility (weighted average) 35.5%-36.4% 36.3%-36.9% 31.0%-35.2% Risk-free interest rate 3.0%-4.3% 0.5%-1.3% 0.4%-1.8% |
Schedule of assets measured at fair value | December 31, 2022 2021 Fair value measurement using Other receivables and prepaid expenses: Derivative instruments $ 109 $ 188 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of estimated fair values of the assets acquired and liabilities | Current assets (including cash of $2,292) $ 6,337 Goodwill 58,120 Intangible assets 29,946 Other long-term assets 4,254 Total assets acquired $ 98,657 Current liabilities $ 4,800 Deferred revenues 5,742 Deferred tax liabilities 6,962 Other long-term liabilities 5,877 Total liabilities acquired $ 23,381 Net assets acquired $ 75,276 |
Schedule of components of intangible assets associated with acquisition | Fair value Developed technology $ 10,517 Customer relationships 19,266 Backlog 163 Total intangible assets $ 29,946 |
Schedule of assets and liabilities based upon fair values as determined | Net assets (including cash of $ 981) $ 1,447 Intangible assets 9,730 Deferred tax liabilities (3,211 ) Goodwill 14,521 Net assets acquired $ 22,487 Net liabilities (including cash of $ 6,265) $ (524 ) Intangible assets 7,562 Deferred tax liabilities, net (2,313 ) Goodwill 14,875 Net assets acquired $ 19,600 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Long-Term Assets [Abstract] | |
Schedule of other long-term assets | December 31, 2022 2021 Unbilled receivables 1,902 1,642 Rent deposits 2,083 2,077 Other 268 447 $ 4,253 $ 4,166 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | December 31, 2022 2021 Cost: Computers and peripheral equipment $ 40,101 $ 45,290 Office furniture and equipment 8,260 9,212 Buildings and leasehold improvements 8,192 9,210 56,553 63,712 Accumulated depreciation: Computers and peripheral equipment 34,285 38,770 Office furniture and equipment 5,532 5,741 Buildings and leasehold improvements 4,715 4,743 44,532 49,254 Depreciated cost $ 12,021 $ 14,458 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of operating lease costs | Year ended December 31, 2022 2021 Operating lease cost $ 6,019 $ 7,946 Variable lease cost 4,004 4,241 Short-term lease cost 829 373 Total lease costs $ 10,852 $ 12,560 |
Schedule of weighted average remaining lease terms and discount rates | December 31, 2022 2021 Weighted average remaining lease term (years) 7.28 6.26 Weighted average discount rate 5.08 % 4.77 % |
Schedule of maturities of lease liabilities | 2023 $ 9,300 2024 7,458 2025 6,550 2026 6,254 2027 5,719 Thereafter 7,670 Total undiscounted cash flows 42,951 Less imputed interest 5,456 Present value of lease liabilities $ 37,495 |
Capitalized Software Developm_2
Capitalized Software Development Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Research and Development [Abstract] | |
Schedule of changes in capitalized software development costs | Year ended December 31, 2022 2021 Balance at the beginning of the year $ 25,203 $ 24,362 Capitalization 6,097 7,911 Amortization (5,840 ) (7,679 ) Functional currency translation adjustments (2,034 ) 609 Balance at year end $ 23,426 $ 25,203 |
Other Intangible Assets, Net (T
Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Intangible Assets, Net [Abstract] | |
Schedule of other intangible assets, net | Weighted December 31, 2022 2021 Original amounts: Customer relationships 6.7 $ 55,178 $ 57,317 Technology 3.3 70,264 70,123 Patents 1.5 1,364 1,544 126,806 128,984 Accumulated amortization: Customer relationships 27,717 23,940 Technology 53,832 46,960 Patents 1,254 1,145 82,803 72,045 Other intangible assets, net $ 44,003 $ 56,939 |
Schedule of other Intangible assets future amortization expense | 2023 $ 11,751 2024 8,862 2025 6,665 2026 6,412 Thereafter 10,313 $ 44,003 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill [Abstract] | |
Schedule of carrying amount of goodwill | Year ended December 31, 2022 2021 Balance at the beginning of the year $ 261,141 $ 264,282 Acquisitions 2,123 593 Functional currency translation adjustments (11,032 ) (3,734 ) Balance at year end $ 252,232 $ 261,141 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other liabilities | December 31, 2022 2021 Government authorities $ 15,297 $ 7,010 Accrued expenses and other liabilities 19,409 26,038 $ 34,706 $ 33,048 |
Series B Debentures, Net of C_2
Series B Debentures, Net of Current Maturities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Series B Debentures, Net of Current Maturities [Abstract] | |
Schedule of series B debentures, net of current maturities | December 31, 2022 2021 Series B Debentures $ 79,186 $ 98,982 Less: Current maturities (19,796 ) (19,796 ) Less: Unamortized debt discounts and issuance costs (114 ) (200 ) $ 59,275 $ 78,986 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | December 31, 2022 2021 Deferred tax assets: Net operating losses carryforwards*) $ 7,274 $ 7,142 Research and development 7,765 1,316 Lease liability 5,094 8,725 Reserves and allowances 4,737 5,119 Other 2,397 3,383 Deferred tax assets before valuation allowance 27,267 25,685 Valuation allowance (4,815 ) (5,104 ) Deferred tax assets 22,452 20,581 Deferred tax liabilities: Capitalized software development costs (3,085 ) (3,045 ) Lease right-of-use asset (4,739 ) (8,098 ) Acquired intangibles (10,538 ) (13,169 ) Property and equipment (229 ) (367 ) Undistributed earnings (5,622 ) **) (8,047 ) Other (184 ) (93 ) Deferred tax liabilities (24,397 ) (32,819 ) Deferred tax liabilities, net $ (1,945 ) $ (12,238 ) *) Net of $1,145 and $1,180 provision for unrecognized tax benefits related to carryforward losses as of December 31, 2022 and 2021, respectively. **) Include $3,531 related to the Company’s election to release the trapped earnings - see Note 13.a.2. December 31, 2022 2021 Deferred tax assets, net $ 9,418 $ 3,122 Deferred tax liabilities, net (11,363 ) (15,360 ) Deferred tax liabilities, net $ (1,945 ) $ (12,238 ) |
Schedule of income before income taxes | Year ended December 31, 2022 2021 2020 Domestic (Israel) $ 27,373 $ 39,248 $ 34,037 Foreign 38,177 18,038 7,161 $ 65,550 $ 57,286 $ 41,198 |
Schedule of effective income tax rate reconciliation | Year ended December 31, 2022 2021 2020 Income before taxes on income, as reported in the statements of income $ 65,550 $ 57,286 $ 41,198 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical taxes on income $ 15,077 $ 13,176 $ 9,476 Increase (decrease) in taxes resulting from: Foreign and preferred enterprise tax rates differences (5,579 ) (7,338 ) (5,511 ) Changes in carry forward tax losses and other temporary differences for which valuation allowance was provided (289 ) (1,645 ) 558 Non-deductible expenses 1,100 1,437 1,722 Increase in uncertain tax positions, net 2,855 616 755 Undistributed earnings (461 ) - - Release of trapped earnings (see note 13.a.2) - 3,531 - Others (84 ) 187 41 Taxes on income, as reported in the statements of income $ 12,619 $ 9,964 $ 7,041 |
Schedule of taxes on income | Year ended December 31, 2022 2021 2020 Current $ 22,912 $ 11,866 $ 7,543 Deferred (10,293 ) (1,902 ) (502 ) $ 12,619 $ 9,964 $ 7,041 Year ended December 31, 2022 2021 2020 Domestic (Israel) $ 4,194 $ 9,086 $ 3,695 Foreign 8,425 878 3,346 $ 12,619 $ 9,964 $ 7,041 |
Schedule of unrecognized tax benefits | December 31, 2022 2021 Balance at the beginning of the year $ 8,920 $ 7,646 Increase in tax positions 4,455 2,731 Decrease in tax positions (588 ) (290 ) Statue limitation (1,012 ) (890 ) Tax assessment close - (277 ) Balance at the end of the year $ 11,775 $ 8,920 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock option activities | Year ended December 31, 2022 Amount of Weighted Weighted Aggregate intrinsic value Outstanding on January 1, 2022 1,835,385 22.27 3.77 $ 22,374 Granted 404,500 21.19 Exercised (21,253 ) 10.65 Expired and forfeited (85,869 ) 24.07 Outstanding on December 31, 2022 2,132,763 21.51 3.30 5,531 Vested and expected to vest 2,132,763 21.51 3.30 5,531 Exercisable on December 31, 2022 1,010,513 16.21 1.95 $ 4,305 |
Schedule of options outstanding under stock option plans | Weighted Weighted Average Options Average Weighted Options Exercise outstanding remaining average Exercisable price of as of contractual exercise as of Options Ranges of December 31, Term price December 31, Exercisable exercise price 2022 (Years) $ 2022 $ 8 2,000 1.18 8 2,000 8 8.37-10.02 590,097 0.82 9.96 590,097 9.96 10.78-18.77 220,416 4.30 16.49 62,916 11.99 22.54-24.33 423,250 4.42 23.10 141,250 23.69 27.79-31.57 830,000 4.03 29.27 197,500 29.46 33.99 67,000 4.92 33.99 16,750 33.99 2,132,763 3.30 21.51 1,010,513 16.21 |
Schedule of restricted stock unit activities | Amount of Weighted Unvested on January 1, 2022 203,756 26.46 Granted 7,500 23.24 Vested (53,948 ) 26.32 Expired and forfeited (18,164 ) 24.73 Unvested on December 31, 2022 139,144 26.56 |
Basic and Diluted Net Earning_2
Basic and Diluted Net Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | Year ended December 31, 2022 2021 2020 Numerator (thousands): Net income attributed to Sapiens’ shareholders $ 52,595 $ 47,171 $ 33,775 Denominator: Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock 55,116,832 54,785,243 51,208,319 Stock options and RSU 453,661 805,058 950,958 Denominator for diluted net earnings per share - adjusted weighted average number of shares 55,570,493 55,590,301 52,159,277 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of revenues by country based | Year ended December 31, 2022 2021 2020 1. Revenues: North America *) $ 197,519 $ 188,980 $ 187,258 Europe **) 232,840 237,054 172,660 Rest of the world 44,377 35,001 22,985 $ 474,736 $ 461,035 $ 382,903 *) Revenues from North America that are shown in the above table consist of revenues primarily from the United States (in amounts of $195,916, $186,909 and $186,687 during the years ended December 31, 2022, 2021 and 2020, respectively). Revenues from United States are higher by more than 20% than any other country (including Europe and rest of the world countries). **) Revenues from Europe include revenues from United Kingdom, or UK, European Union countries (including Nordic region) and Israel. Revenues from the UK amounted to $64,380, $63,738 and $42,078 during the years ended December 31, 2022, 2021 and 2020, respectively. |
Schedule of property and equipment | December 31, 2022 2021 2. Long- lived assets, including property and equipment, net and operation right-of-use assets: Israel $ 16,184 $ 22,263 North America 8,794 4,737 APAC 17,229 20,104 Europe 3,502 11,019 $ 45,709 $ 58,123 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue | Years ended 2022 2021 Project implementation phase: Revenues from pre-production implementation projects $ 189,335 $ 178,419 Revenues from post-production implementation projects 285,401 282,616 Total $ 474,736 $ 461,035 |
Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities | December 31, 2022 2021 Trade receivables (net of allowance for credit losses of $1,130 and $1,337 on December 31, 2022 and 2021, respectively) 58,563 53,985 Short-term unbilled receivables *) 20,488 16,072 Long-term unbilled receivables *) 1,169 858 Contract assets **) 15,064 6,988 Deferred revenues (short-term contract liabilities) ***) 30,720 39,614 Long-term deferred revenues (long-term contract liabilities) ***) - 299 *) Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations. **) Contract assets relate to unbilled receivables (including a long-term balance of $733 and $784 presented in other long-term assets as of December 31, 2022 and 2021, respectively), which represent revenue recognized on arrangements for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date, and the right to consideration is generally subject to milestone completion, client acceptance or factors other than the passage of time. ***) Deferred revenue represents billings to customers for which revenue has not yet been recognized. Deferred revenue that is expected to be recognized beyond the next 12 months is considered long-term deferred revenue and included in other long-term liabilities in the consolidated balance sheets. |
Selected Statements of Operat_2
Selected Statements of Operations Data (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Selected Statements of Operations Data [Abstract] | ||
Schedule of research and development expenses, net | Year ended December 31, 2022 2021 2020 Total costs $ 64,753 $ 61,924 $ 47,156 Less - capitalized software development costs (6,097 ) (7,911 ) (5,798 ) Research and development expenses, net $ 58,656 $ 54,013 $ 41,358 | |
Schedule of financial income, net | Year ended December 31, 2022 2021 2020 Interest expenses, net $ 1,427 $ 2,907 $ 3,922 Exchange rate loss (gain), net (360 ) 342 (232 ) PPP loan forgiveness *) (1,465 ) - - Derivatives loss (gains), net 1,193 (3,338 ) (104 ) Bank charges and other 146 291 219 Financial expense, net $ 941 $ 202 $ 3,805 *) See note 3 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies (Details) [Line Items] | |||
Short-term bank deposits | 1 year | ||
Impairment loss | $ 1,439 | $ 351 | |
Tax benefit percentage | 50% | ||
Severance expense | $ 5,199 | 4,538 | 4,020 |
Retirement savings plan, description | The Company has a 401(k) retirement savings plan for most of its U.S. employees. Each eligible employee may elect to contribute a portion of its employee’s compensation to the plan. The Company has a discretionary employer match. In the reporting periods, this match ranges from 1.25-3% if an employee contributed 5-6%. | ||
Employer match expense | $ 1,280 | 1,282 | 1,233 |
Aggregate notional amounts | 168,850 | 140,688 | 260,862 |
Notional amounts | 27,138 | 1,650 | |
Financial expense | 1,193 | 3,338 | 104 |
Options and Forward Contracts [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Outstanding option notional amount | $ 15,900 | $ 20,000 | $ 3,866 |
Software Development [Member] | |||
Significant Accounting Policies (Details) [Line Items] | |||
Useful life | 7 years |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of changes in the allowance for credit losses - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of trade receivables net of an allowance [Abstract] | ||
Balance at the beginning of the year | $ 1,337 | $ 1,558 |
Current period provision | 428 | 68 |
Write offs | (635) | |
Recoveries collected | (289) | |
Balance at year end | $ 1,130 | $ 1,337 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items] | |
Leasehold improvements | Over the shorter of the related lease period or the life of the asset |
Computers and peripheral equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items] | |
Estimated useful lives of the assets | 20% |
Computers and peripheral equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items] | |
Estimated useful lives of the assets | 33% |
Office furniture and equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items] | |
Estimated useful lives of the assets | 6% |
Office furniture and equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items] | |
Estimated useful lives of the assets | 33% |
Buildings [Member] | |
Significant Accounting Policies (Details) - Schedule of property plant and equipment useful life [Line Items] | |
Estimated useful lives of the assets | 2.50% |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Technology [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items] | |
Weighted average annual rate other intangible assets | 13% |
Technology [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items] | |
Weighted average annual rate other intangible assets | 33% |
Customer relationships [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items] | |
Weighted average annual rate other intangible assets | 7% |
Customer relationships [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items] | |
Weighted average annual rate other intangible assets | 17% |
Patent [Member] | |
Significant Accounting Policies (Details) - Schedule of weighted average annual rates for other intangible assets [Line Items] | |
Weighted average annual rate other intangible assets | 10% |
Significant Accounting Polici_7
Significant Accounting Policies (Details) - Schedule of fair value of each option granted - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies (Details) - Schedule of fair value of each option granted [Line Items] | |||
Contractual life | 6 years | 6 years | 6 years |
Dividend yield | 0% | 0% | 0% |
Minimum [Member] | |||
Significant Accounting Policies (Details) - Schedule of fair value of each option granted [Line Items] | |||
Expected exercise factor (in Dollars per share) | $ 2 | $ 2 | $ 2 |
Expected volatility (weighted average) | 35.50% | 36.30% | 31% |
Risk-free interest rate | 3% | 0.50% | 0.40% |
Maximum [Member] | |||
Significant Accounting Policies (Details) - Schedule of fair value of each option granted [Line Items] | |||
Expected exercise factor (in Dollars per share) | $ 2.8 | $ 2.8 | $ 2.8 |
Expected volatility (weighted average) | 36.40% | 36.90% | 35.20% |
Risk-free interest rate | 4.30% | 1.30% | 1.80% |
Significant Accounting Polici_8
Significant Accounting Policies (Details) - Schedule of assets measured at fair value - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value measurement using input Level 2 [Member] | ||
Significant Accounting Policies (Details) - Schedule of assets measured at fair value [Line Items] | ||
Derivative instruments | $ 109 | $ 188 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jul. 08, 2021 | Jun. 01, 2020 | Oct. 31, 2022 | Nov. 30, 2020 | Jul. 27, 2020 | Apr. 22, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | May 19, 2022 | |
Acquisitions (Details) [Line Items] | |||||||||
Cash paid | $ 3,466 | ||||||||
Purchase price in cash | $ 76,107 | $ 19,600 | $ 22,487 | ||||||
Business combination, acquisition related costs | $ 719 | $ 299 | |||||||
Working Capital | $ 831 | ||||||||
Aggregate of shares issued (in Shares) | 173,005 | ||||||||
Valued total amount | $ 4,400 | ||||||||
Based payment description | In addition, sum.cumo’s senior executives have retention-based payments over three years (2020-2023) of up to approximately $2,800. These payments are subject to continued employment, and therefore were not included in the purchase price. Acquisition related costs amounted to $561, and are presented under selling, marketing, general and administrative in the Company’s consolidated statements of income. | ||||||||
Proceeds from loan receive | $ 1,546 | ||||||||
Maturity date | Apr. 22, 2022 | ||||||||
Interest rate | 1% | ||||||||
Financial income amount | $ 1,465 | ||||||||
Acquisition of outstanding percentage | 75% | ||||||||
Addition from acquisition | 20% | ||||||||
Outstanding shares amount | $ 390 | ||||||||
Business Combination [Member] | |||||||||
Acquisitions (Details) [Line Items] | |||||||||
Percentage of acquisitions outstanding shares | 100% | ||||||||
Business combination, consideration cash, total | $ 1,281 |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of estimated fair values of the assets acquired and liabilities - Thor Denmark Holding Aps [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |
Current assets (including cash of $2,292) | $ 6,337 |
Goodwill | 58,120 |
Intangible assets | 29,946 |
Other long-term assets | 4,254 |
Total assets acquired | 98,657 |
Current liabilities | 4,800 |
Deferred revenues | 5,742 |
Deferred tax liabilities | 6,962 |
Other long-term liabilities | 5,877 |
Total liabilities acquired | 23,381 |
Net assets acquired | $ 75,276 |
Acquisitions (Details) - Sche_2
Acquisitions (Details) - Schedule of estimated fair values of the assets acquired and liabilities (Parentheticals) $ in Thousands | Dec. 31, 2022 USD ($) |
Thor Denmark Holding Aps [Member] | |
Business Acquisition [Line Items] | |
Cash | $ 2,292 |
Acquisitions (Details) - Sche_3
Acquisitions (Details) - Schedule of components of intangible assets associated with acquisition $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets | $ 29,946 |
Developed technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets | 10,517 |
Customer relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets | 19,266 |
Backlog [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets | $ 163 |
Acquisitions (Details) - Sche_4
Acquisitions (Details) - Schedule of assets and liabilities based upon fair values as determined $ in Thousands | Dec. 31, 2022 USD ($) |
Acquisitions (Details) - Schedule of assets and liabilities based upon fair values as determined [Line Items] | |
Net assets (including cash of $ 981) | $ 1,447 |
Intangible assets | 9,730 |
Deferred tax liabilities, net | (3,211) |
Goodwill | 14,521 |
Net assets acquired | 22,487 |
Delphi Technology Inc. [Member] | |
Acquisitions (Details) - Schedule of assets and liabilities based upon fair values as determined [Line Items] | |
Intangible assets | 7,562 |
Deferred tax liabilities, net | (2,313) |
Goodwill | 14,875 |
Net assets acquired | 19,600 |
Net liabilities (including cash of $ 6,265) | $ (524) |
Acquisitions (Details) - Sche_5
Acquisitions (Details) - Schedule of assets and liabilities based upon fair values as determined (Parentheticals) $ in Thousands | Dec. 31, 2022 USD ($) |
Acquisitions (Details) - Schedule of assets and liabilities based upon fair values as determined (Parentheticals) [Line Items] | |
Cash | $ 981 |
Delphi Technology Inc. [Member] | |
Acquisitions (Details) - Schedule of assets and liabilities based upon fair values as determined (Parentheticals) [Line Items] | |
Cash | $ 6,265 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - Schedule of other long-term assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of other long-term assets [Abstract] | ||
Unbilled receivables | $ 1,902 | $ 1,642 |
Rent deposits | 2,083 | 2,077 |
Other | 268 | 447 |
Total other long term assets | $ 4,253 | $ 4,166 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 4,242 | $ 5,360 | $ 4,698 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cost: | ||
Cost | $ 56,553 | $ 63,712 |
Accumulated depreciation: | ||
Accumulated depreciation | 44,532 | 49,254 |
Depreciated cost | 12,021 | 14,458 |
Computers and peripheral equipment [Member] | ||
Cost: | ||
Cost | 40,101 | 45,290 |
Accumulated depreciation: | ||
Accumulated depreciation | 34,285 | 38,770 |
Office furniture and equipment [Member] | ||
Cost: | ||
Cost | 8,260 | 9,212 |
Accumulated depreciation: | ||
Accumulated depreciation | 5,532 | 5,741 |
Buildings and leasehold improvements [Member] | ||
Cost: | ||
Cost | 8,192 | 9,210 |
Accumulated depreciation: | ||
Accumulated depreciation | $ 4,715 | $ 4,743 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease, description | The Company’s leases have original lease periods expiring between 2023 and 2034. | |
Impairment amount | $ 1,439 | |
Operating lease liability | $ 9,789 | $ 10,964 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating lease costs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of operating lease costs [Abstract] | ||
Operating lease cost | $ 6,019 | $ 7,946 |
Variable lease cost | 4,004 | 4,241 |
Short-term lease cost | 829 | 373 |
Total lease costs | $ 10,852 | $ 12,560 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted average remaining lease terms and discount rates | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of weighted average remaining lease terms and discount rates [Abstract] | ||
Weighted average remaining lease term (years) | 7 years 3 months 10 days | 6 years 3 months 3 days |
Weighted average discount rate | 5.08% | 4.77% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
2023 | $ 9,300 |
2024 | 7,458 |
2025 | 6,550 |
2026 | 6,254 |
2027 | 5,719 |
Thereafter | 7,670 |
Total undiscounted cash flows | 42,951 |
Less imputed interest | 5,456 |
Present value of lease liabilities | $ 37,495 |
Capitalized Software Developm_3
Capitalized Software Development Costs, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Research and Development [Abstract] | |||
Amortization of capitalized software development costs | $ 5,840 | $ 7,679 | $ 6,558 |
Capitalized Software Developm_4
Capitalized Software Development Costs, Net (Details) - Schedule of changes in capitalized software development costs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of changes in capitalized software development costs [Abstract] | ||
Balance at the beginning of the year | $ 25,203 | $ 24,362 |
Capitalization | 6,097 | 7,911 |
Amortization | (5,840) | (7,679) |
Functional currency translation adjustments | (2,034) | 609 |
Balance at year end | $ 23,426 | $ 25,203 |
Other Intangible Assets, Net (D
Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Intangible Assets, Net [Abstract] | ||||
Total consideration | $ 600 | |||
Amortization of other intangible assets | $ 12,158 | $ 15,630 | $ 12,127 |
Other Intangible Assets, Net _2
Other Intangible Assets, Net (Details) - Schedule of other intangible assets, net - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross | $ 126,806 | $ 128,984 |
Intangible assets, Accumulated amortization | 82,803 | 72,045 |
Other intangible assets, net | $ 44,003 | 56,939 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining useful life (years) | 6 years 8 months 12 days | |
Intangible asset, Gross | $ 55,178 | 57,317 |
Intangible assets, Accumulated amortization | $ 27,717 | 23,940 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining useful life (years) | 3 years 3 months 18 days | |
Intangible asset, Gross | $ 70,264 | 70,123 |
Intangible assets, Accumulated amortization | $ 53,832 | 46,960 |
Patent [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average remaining useful life (years) | 1 year 6 months | |
Intangible asset, Gross | $ 1,364 | 1,544 |
Intangible assets, Accumulated amortization | $ 1,254 | $ 1,145 |
Other Intangible Assets, Net _3
Other Intangible Assets, Net (Details) - Schedule of other Intangible assets future amortization expense - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of other Intangible assets future amortization expense [Abstract] | ||
2023 | $ 11,751 | |
2024 | 8,862 | |
2025 | 6,665 | |
2026 | 6,412 | |
Thereafter | 10,313 | |
Other intangible assets amortization expense | $ 44,003 | $ 56,939 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of carrying amount of goodwill - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Abstract] | ||
Balance at the beginning of the year | $ 261,141 | $ 264,282 |
Acquisitions | 2,123 | 593 |
Functional currency translation adjustments | (11,032) | (3,734) |
Balance at year end | $ 252,232 | $ 261,141 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - Schedule of accrued expenses and other liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses and Other Liabilities [Abstract] | ||
Government authorities | $ 15,297 | $ 7,010 |
Accrued expenses and other liabilities | 19,409 | 26,038 |
Accrued expenses and other liabilities, total | $ 34,706 | $ 33,048 |
Series B Debentures, Net of C_3
Series B Debentures, Net of Current Maturities (Details) $ in Thousands, ₪ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 USD ($) | Sep. 30, 2017 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2020 ILS (₪) | Sep. 30, 2017 ILS (₪) | |
Series B Debentures, Net of Current Maturities (Details) [Line Items] | |||||||
Principal amount | $ 60,300 | $ 79,200 | ₪ 210 | ₪ 280 | |||
Annual payments | $ 9,898 | $ 9,898 | |||||
Interest rate percentage | 3.37% | 3.37% | |||||
Debt premium and issuance costs | $ 80 | ||||||
Debentures fair value | $ 75,192 | $ 100,465 | |||||
Series B Debentures [Member] | |||||||
Series B Debentures, Net of Current Maturities (Details) [Line Items] | |||||||
Interest rate percentage | 3.37% | 3.37% | |||||
Debt premium and issuance costs | $ 956 | ||||||
Debt instrument, covenant description | In accordance with the indenture for the Series B Debentures, the Company is required to meet the following financial covenants: (1) Target shareholders’ equity (excluding minority interest)- above $120 million – as of December 31, 2022, total shareholders’ equity was approximately $400.5 million; and (2) Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company’s Series B Debentures) below 65% - as of December 31, 2022 the ratio of net financial indebtedness to net capitalization was (32.96)%. (3) Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5. As of December 31, 2022, the Target ratio of net financial indebtedness to EBITDA was (1.14). As of December 31, 2022, Sapiens is in compliance with all of its financial covenants. | ||||||
Interest expense | $ 2,671 | 3,337 | $ 3,180 | ||||
Amortization of debt issuance costs | $ 85 | $ 106 | $ 134 |
Series B Debentures, Net of C_4
Series B Debentures, Net of Current Maturities (Details) - Schedule of series B debentures, net of current maturities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of series B debentures, net of current maturities [Abstract] | ||
Series B Debentures | $ 79,186 | $ 98,982 |
Less: Current maturities | (19,796) | (19,796) |
Less: Unamortized debt discounts and issuance costs | (114) | (200) |
Total | $ 59,275 | $ 78,986 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Agreed to pay net consolidated | 3.50% | ||
Maintenance revenue | 0.35% | ||
Royalty expense | $ 816 | $ 531 | $ 494 |
Contingent liability to pay royalties | 5,661 | 5,454 | |
Bank guarantees amount for leased offices | 846 | ||
Bank guarantees amount for customers and suppliers | $ 262 | $ 320 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 01, 2018 | Dec. 31, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Taxes on Income (Details) [Line Items] | ||||||
Income tax rate percentage | 23% | 23% | 23% | |||
Description of tax benefits | the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years) 2016, which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the 2017 Amendment”) was published and was pending the publication of regulations, in May 2017 regulations were promulgated by the Finance Ministry to implement the “Nexus Principles” based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Following the publication of the regulations the 2017 Amendment became fully effective. According to the 2017 Amendment, a Preferred Technological Enterprise, as defined in the 2017 Amendment, with total consolidated revenues of the group companies is less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A-a tax rate of 7.5%). In order to qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. A PTE that acquires Benefited Intangible Assets from a foreign company for more than NIS 200 million after January 1, 2017, will be eligible for 12% reduce tax rate on capital gain upon sale of the Benefited Intangible Assets. | |||||
Benefit regime for preferred technology enterprises, description | The 2017 Amendment further provides that a technology company satisfying certain conditions will qualify as a Special Preferred Technology Enterprise (“SPTE”) (an enterprise for which, among others, total consolidated revenues of its parent company and all subsidiaries is at least NIS 10 billion) and will thereby enjoy a reduced corporate tax rate of 6% on PTI regardless of the Company’s geographic location within Israel. In addition, a SPTE will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain “Benefited Intangible Assets” to a related foreign company if the Benefited Intangible Assets were either developed by the Special Preferred Technology Enterprise or acquired from a foreign company on or after January 1, 2017. | |||||
Corporate tax rates, percentage | 6% | |||||
Tax-exempt income, description | The tax-exempt income is attributable to the Company’s previous status as “Approved Enterprise” and “Benefited Enterprise”. Such tax-exempt income cannot be distributed to shareholders without subjecting the Company to payable income taxes. If dividends are distributed from previous tax-exempt profits, the Company will be liable for income tax at the rate applicable to its profits from the Approved Enterprise in at the tax rate enacted in the year in which the income was earned. According to the Temporary Order, the reduction of CIT will apply to earnings that are released (with no requirement for an actual distribution) within a period of one year from the date of enactment of the Temporary Order. The reduction in the CIT is dependent on the proportion of the trapped earnings that are released in relation to the total trapped earnings, and on the applicable CIT rate in the years the earnings were generated. Consequently, the larger the proportion of the trapped earnings that are released, the lower the tax in respect of the distribution. The minimum tax rate is 6%. | |||||
Foreign investment percentage, description | According to the Temporary Order, the reduction of CIT will apply to earnings that are released (with no requirement for an actual distribution) within a period of one year from the date of enactment of the Temporary Order. The reduction in the CIT is dependent on the proportion of the trapped earnings that are released in relation to the total trapped earnings, and on the applicable CIT rate in the years the earnings were generated. Consequently, the larger the proportion of the trapped earnings that are released, the lower the tax in respect of the distribution. The minimum tax rate is 6%. Further, a company that elects to pay a reduced CIT is required to invest in its industrial enterprise a designated amount in accordance with the Economic Efficiency Law within a period of five years commencing from the tax year in which the election is made. The designated investment should be utilized for the acquisition of production assets, and/or investments in research and development and/or compensation to additional new employees. | |||||
Minimum tax rate, percentage | 6% | |||||
Deferred tax liability, description | According to ASC 740, a deferred tax liability would generally be recorded relating to corporate taxes that would be owed on the distribution of profits if management has currently the intention to declare dividends of its tax-exempt earnings. | |||||
Accumulated tax-exempt earnings, description | In 2021, the Company decided to apply and benefit from the Temporary Order and pay the reduced CIT as per the provisions of the Economic Efficiency Law in respect of its total accumulated tax-exempt earnings amounting to NIS 109 million (approximately $35.3 million), and accordingly recognized deferred tax liability of $3,531. | |||||
Accumulated earnings | $ 35,300 | |||||
Deferred tax liability | 3,531 | |||||
Undistributed earnings of foreign subsidiaries | $ 61,275 | |||||
Permanent in duration | 6,078 | |||||
Loss carryforwards | 32,592 | |||||
Unrecognized tax benefits | 1,145 | 1,180 | ||||
Release the trapped earnings | 3,531 | |||||
Accrued interest of unrecognized tax benefits | $ 1,253 | $ 1,143 | ||||
Maximum [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Income tax rate percentage | 35% | |||||
Minimum [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Income tax rate percentage | 21% | |||||
Isreal [Member] | ||||||
Taxes on Income (Details) [Line Items] | ||||||
Tax rate percentage | 12% |
Taxes on Income (Details) - Sch
Taxes on Income (Details) - Schedule of deferred tax assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Deferred tax assets: | ||||
Net operating losses carryforwards | [1] | $ 7,274 | $ 7,142 | |
Research and development | 7,765 | 1,316 | ||
Lease liability | 5,094 | 8,725 | ||
Reserves and allowances | 4,737 | 5,119 | ||
Other | 2,397 | 3,383 | ||
Deferred tax assets before valuation allowance | 27,267 | 25,685 | ||
Valuation allowance | (4,815) | (5,104) | ||
Deferred tax assets | 22,452 | 20,581 | ||
Deferred tax liabilities: | ||||
Capitalized software development costs | (3,085) | (3,045) | ||
Lease right-of-use asset | (4,739) | (8,098) | ||
Acquired intangibles | (10,538) | (13,169) | ||
Property and equipment | (229) | (367) | ||
Undistributed earnings | (5,622) | (8,047) | [2] | |
Other | (184) | (93) | ||
Deferred tax liabilities | (24,397) | (32,819) | ||
Deferred tax liabilities, net | (1,945) | (12,238) | ||
Deferred tax assets, net | 9,418 | 3,122 | ||
Deferred tax liabilities, net | (11,363) | (15,360) | ||
Deferred tax liabilities, net | $ (1,945) | $ (12,238) | ||
[1] Net of $1,145 and $1,180 provision for unrecognized tax benefits related to carryforward losses as of December 31, 2022 and 2021, respectively. Include $3,531 related to the Company’s election to release the trapped earnings - see Note 13.a.2. |
Taxes on Income (Details) - S_2
Taxes on Income (Details) - Schedule of income before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Income Before Income Taxes [Abstract] | |||
Domestic (Israel) | $ 27,373 | $ 39,248 | $ 34,037 |
Foreign | 38,177 | 18,038 | 7,161 |
Income before taxes on income | $ 65,550 | $ 57,286 | $ 41,198 |
Taxes on Income (Details) - S_3
Taxes on Income (Details) - Schedule of effective income tax rate reconciliation - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | |||
Income before taxes on income, as reported in the statements of income | $ 65,550 | $ 57,286 | $ 41,198 |
Statutory tax rate in Israel | 23% | 23% | 23% |
Theoretical taxes on income | $ 15,077 | $ 13,176 | $ 9,476 |
Increase (decrease) in taxes resulting from: | |||
Foreign and preferred enterprise tax rates differences | (5,579) | (7,338) | (5,511) |
Changes in carry forward tax losses and other temporary differences for which valuation allowance was provided | (289) | (1,645) | 558 |
Non-deductible expenses | 1,100 | 1,437 | 1,722 |
Increase in uncertain tax positions, net | 2,855 | 616 | 755 |
Undistributed earnings | (461) | ||
Release of trapped earnings (see note 13.a.2) | 3,531 | ||
Others | (84) | 187 | 41 |
Taxes on income, as reported in the statements of income | $ 12,619 | $ 9,964 | $ 7,041 |
Taxes on Income (Details) - S_4
Taxes on Income (Details) - Schedule of taxes on income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Taxes on Income [Abstract] | |||
Current | $ 22,912 | $ 11,866 | $ 7,543 |
Deferred | (10,293) | (1,902) | (502) |
Taxes on income | 12,619 | 9,964 | 7,041 |
Domestic (Israel) | 4,194 | 9,086 | 3,695 |
Foreign | 8,425 | 878 | 3,346 |
Taxes on income | $ 12,619 | $ 9,964 | $ 7,041 |
Taxes on Income (Details) - S_5
Taxes on Income (Details) - Schedule of unrecognized tax benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Unrecognized Tax Benefits [Abstract] | ||
Balance at the beginning of the year | $ 8,920 | $ 7,646 |
Increase in tax positions | 4,455 | 2,731 |
Decrease in tax positions | (588) | (290) |
Statue limitation | (1,012) | (890) |
Tax assessment close | (277) | |
Balance at the end of the year | $ 11,775 | $ 8,920 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2022 | May 25, 2022 | Oct. 20, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity (Details) [Line Items] | ||||||
Proceeds from issuance | $ 108,737 | |||||
Net of issuance expenses | $ 509 | |||||
Weighted average grant date fair values of options granted (in Dollars per share) | $ 7.22 | $ 10.35 | $ 7.99 | |||
Total intrinsic value of options exercised | $ 250 | $ 8,505 | $ 11,658 | |||
Total equity-based compensation expenses | 3,835 | $ 4,711 | $ 3,987 | |||
Compensation costs related to RSUs | 794 | |||||
Total unrecognized compensation cost | $ 8,329 | |||||
Weighted-average period | 1 year 10 months 2 days | |||||
2011 Plan [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Exercised period | 6 years | |||||
Total number of common shares available (in Shares) | 8,000,000 | |||||
Adoption plan term | 10 years | |||||
2021 Plan [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Common shares available for future grant (in Shares) | 1,560,205 | |||||
IPO [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Shares issued (in Shares) | 3,898,304 | |||||
Shares issued price per share (in Dollars per share) | $ 29.5 | |||||
Board of directors [Member] | ||||||
Equity (Details) [Line Items] | ||||||
Common share price (in Dollars per share) | $ 0.23 | $ 0.47 | ||||
Common share total amount | $ 12,679 | $ 25,900 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of stock option activities - Stock Options [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Equity (Details) - Schedule of stock option activities [Line Items] | |
Amount of options, Outstanding Beginning balance | shares | 1,835,385 |
Weighted average exercise, Outstanding Beginning balance | $ / shares | $ 22.27 |
Weighted average remaining contractual life (in years), Outstanding Beginning balance | 3 years 9 months 7 days |
Aggregate intrinsic value, Outstanding Beginning balance | $ | $ 22,374 |
Amount of options, Granted | shares | 404,500 |
Weighted-Average Exercise Price, Granted | $ / shares | $ 21.19 |
Amount of options, Exercised | shares | (21,253) |
Weighted average exercise, Exercised | $ / shares | $ 10.65 |
Amount of options, Expired and forfeited | shares | (85,869) |
Weighted average exercise, Expired and forfeited | $ / shares | $ 24.07 |
Amount of options, Ending balance | shares | 2,132,763 |
Weighted average exercise, Ending balance | $ / shares | $ 21.51 |
Weighted average remaining contractual life (in years), Ending balance | 3 years 3 months 18 days |
Aggregate intrinsic value, Ending balance | $ | $ 5,531 |
Amount of options, Vested and expected to vest | shares | 2,132,763 |
Weighted average exercise, Vested and expected to vest | $ / shares | $ 21.51 |
Weighted average remaining contractual life (in years), Vested | 3 years 3 months 18 days |
Aggregate intrinsic value, Vested | $ | $ 5,531 |
Amount of options, Exercisable | shares | 1,010,513 |
Weighted average exercise, Exercisable | $ / shares | $ 16.21 |
Weighted average remaining contractual life (in years), Exercisable | 1 year 11 months 12 days |
Aggregate intrinsic value, Exercisable | $ | $ 4,305 |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of options outstanding under stock option plans | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding as of December 31,2022 (in Shares) | shares | 2,132,763 |
Weighted Average remaining contractual Term (Years) | 3 years 3 months 18 days |
Weighted average exercise price | $ 21.51 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 1,010,513,000 |
Weighted Average Exercise price of Options Exercisable | $ 16.21 |
8 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | $ 8 |
Options outstanding as of December 31,2022 (in Shares) | shares | 2,000 |
Weighted Average remaining contractual Term (Years) | 1 year 2 months 4 days |
Weighted average exercise price | $ 8 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 2,000,000 |
Weighted Average Exercise price of Options Exercisable | $ 8 |
8.37-10.02 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding as of December 31,2022 (in Shares) | shares | 590,097 |
Weighted Average remaining contractual Term (Years) | 9 months 25 days |
Weighted average exercise price | $ 9.96 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 590,097,000 |
Weighted Average Exercise price of Options Exercisable | $ 9.96 |
8.37-10.02 [Member] | Minimum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | 8.37 |
8.37-10.02 [Member] | Maximum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | $ 10.02 |
10.78-18.77 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding as of December 31,2022 (in Shares) | shares | 220,416 |
Weighted Average remaining contractual Term (Years) | 4 years 3 months 18 days |
Weighted average exercise price | $ 16.49 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 62,916,000 |
Weighted Average Exercise price of Options Exercisable | $ 11.99 |
10.78-18.77 [Member] | Minimum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | 10.78 |
10.78-18.77 [Member] | Maximum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | $ 18.77 |
22.54-24.33 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding as of December 31,2022 (in Shares) | shares | 423,250 |
Weighted Average remaining contractual Term (Years) | 4 years 5 months 1 day |
Weighted average exercise price | $ 23.1 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 141,250,000 |
Weighted Average Exercise price of Options Exercisable | $ 23.69 |
22.54-24.33 [Member] | Minimum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | 22.54 |
22.54-24.33 [Member] | Maximum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | $ 24.33 |
27.79-31.57 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding as of December 31,2022 (in Shares) | shares | 830,000 |
Weighted Average remaining contractual Term (Years) | 4 years 10 days |
Weighted average exercise price | $ 29.27 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 197,500,000 |
Weighted Average Exercise price of Options Exercisable | $ 29.46 |
27.79-31.57 [Member] | Minimum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | 27.79 |
27.79-31.57 [Member] | Maximum [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | 31.57 |
33.99 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Ranges of exercise price, minimum | $ 33.99 |
Options outstanding as of December 31,2022 (in Shares) | shares | 67,000 |
Weighted Average remaining contractual Term (Years) | 4 years 11 months 1 day |
Weighted average exercise price | $ 33.99 |
Options Exercisable as of December 31, 2022 (in Shares) | shares | 16,750,000 |
Weighted Average Exercise price of Options Exercisable | $ 33.99 |
Equity (Details) - Schedule o_3
Equity (Details) - Schedule of restricted stock unit activities - RSU [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Equity (Details) - Schedule of restricted stock unit activities [Line Items] | |
Amount of options, Unvested beginning balance | shares | 203,756 |
Weighted Average Grant-Date Fair Value, Unvested Beginning balance | $ / shares | $ 26.46 |
Amount of options, Granted | shares | 7,500 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | $ 23.24 |
Amount of options, Vested | shares | (53,948) |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | $ 26.32 |
Amount of options, Expired and forfeited | shares | (18,164) |
Weighted Average Grant-Date Fair Value, Expired and forfeited | $ / shares | $ 24.73 |
Amount of options, Unvested ending balance | shares | 139,144 |
Weighted Average Grant-Date Fair Value, Unvested Ending balance | $ / shares | $ 26.56 |
Related Parties Transactions (D
Related Parties Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Parties Transactions (Details) [Line Items] | |||
Received services amount | $ 14,813 | $ 14,598 | $ 8,523 |
Due to related parties | 2,927 | 3,187 | |
Due from related parties | 1,149 | 858 | |
Sapiens Software Solutions (Poland) [Member] | |||
Related Parties Transactions (Details) [Line Items] | |||
Professional services and fixed assets | 181 | 197 | 521 |
Hardware and Software [Member] | |||
Related Parties Transactions (Details) [Line Items] | |||
Purchased from affiliated companies | $ 109 | $ 369 | $ 267 |
Basic and Diluted Net Earning_3
Basic and Diluted Net Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Diluted net earnings per share | 1,275,275 | 804,438 | 200,000 |
Basic and Diluted Net Earning_4
Basic and Diluted Net Earnings Per Share (Details) - Schedule of earnings per share, basic and diluted - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Earnings Per Share Basic and Diluted [Abstract] | |||
Net income attributed to Sapiens’ shareholders (in Dollars) | $ 52,595 | $ 47,171 | $ 33,775 |
Denominator for basic earnings per share - weighted average number of common shares, net of treasury stock | 55,116,832 | 54,785,243,000 | 51,208,319,000 |
Stock options and RSU | 453,661 | 805,058,000 | 950,958,000 |
Denominator for diluted net earnings per share - adjusted weighted average number of shares | 55,570,493 | 55,590,301,000 | 52,159,277,000 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Geographic Information (Details) [Line Items] | |||
Percentage of revenues from major customers | 10% | 10% | 10% |
Revenues (in Dollars) | $ 474,736 | $ 461,035 | $ 382,903 |
Customer [Member] | |||
Geographic Information (Details) [Line Items] | |||
Percentage of revenues from major customers | 10% | 10% | 10% |
United States [Member] | |||
Geographic Information (Details) [Line Items] | |||
Percentage of revenues from major customers | 20% | ||
Revenues (in Dollars) | $ 195,916 | $ 186,909 | $ 186,687 |
UK [Member] | |||
Geographic Information (Details) [Line Items] | |||
Revenues (in Dollars) | $ 64,380 | $ 63,738 | $ 42,078 |
Geographic Information (Detai_2
Geographic Information (Details) - Schedule of revenues by country based - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Geographic Information (Details) - Schedule of revenues by country based [Line Items] | ||||
Revenues | $ 474,736 | $ 461,035 | $ 382,903 | |
North America [Member] | ||||
Geographic Information (Details) - Schedule of revenues by country based [Line Items] | ||||
Revenues | [1] | 197,519 | 188,980 | 187,258 |
Europe [Member] | ||||
Geographic Information (Details) - Schedule of revenues by country based [Line Items] | ||||
Revenues | [2] | 232,840 | 237,054 | 172,660 |
Rest of the world [Member] | ||||
Geographic Information (Details) - Schedule of revenues by country based [Line Items] | ||||
Revenues | $ 44,377 | $ 35,001 | $ 22,985 | |
[1]Revenues from North America that are shown in the above table consist of revenues primarily from the United States (in amounts of $195,916, $186,909 and $186,687 during the years ended December 31, 2022, 2021 and 2020, respectively). Revenues from United States are higher by more than 20% than any other country (including Europe and rest of the world countries).[2]Revenues from Europe include revenues from United Kingdom, or UK, European Union countries (including Nordic region) and Israel. Revenues from the UK amounted to $64,380, $63,738 and $42,078 during the years ended December 31, 2022, 2021 and 2020, respectively. |
Geographic Information (Detai_3
Geographic Information (Details) - Schedule of property and equipment - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Geographic Information (Details) - Schedule of property and equipment [Line Items] | ||
Property and equipment | $ 45,709 | $ 58,123 |
Israel [Member] | ||
Geographic Information (Details) - Schedule of property and equipment [Line Items] | ||
Property and equipment | 16,184 | 22,263 |
North America [Member] | ||
Geographic Information (Details) - Schedule of property and equipment [Line Items] | ||
Property and equipment | 8,794 | 4,737 |
APAC [Member] | ||
Geographic Information (Details) - Schedule of property and equipment [Line Items] | ||
Property and equipment | 17,229 | 20,104 |
Europe [Member] | ||
Geographic Information (Details) - Schedule of property and equipment [Line Items] | ||
Property and equipment | $ 3,502 | $ 11,019 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Performance obligation | $ 209,000 | |
Percentage of remaining performance obligations | 68% | |
Other long term assets | $ 733 | $ 784 |
Deferred revenues | $ 37,447 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of disaggregated revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Project implementation phase: | ||
Total | $ 474,736 | $ 461,035 |
Revenues from pre-production implementation projects [Member] | ||
Project implementation phase: | ||
Total | 189,335 | 178,419 |
Revenues from post-production implementation projects [Member] | ||
Project implementation phase: | ||
Total | $ 285,401 | $ 282,616 |
Revenue (Details) - Schedule _2
Revenue (Details) - Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Trade Receivables Unbilled Receivables Contract Assets and Contract Liabilities [Abstract] | |||
Trade receivables (net of allowance for credit losses of $1,130 and $1,337 on December 31, 2022 and 2021, respectively) | $ 58,563 | $ 53,985 | |
Short-term unbilled receivables | [1] | 20,488 | 16,072 |
Long-term unbilled receivables | [1] | 1,169 | 858 |
Contract assets | [2] | 15,064 | 6,988 |
Deferred revenues (short-term contract liabilities) | [3] | 30,720 | 39,614 |
Long-term deferred revenues (long-term contract liabilities) | [3] | $ 299 | |
[1]Unbilled receivables relate to revenue recognized in excess of amounts invoiced as the Company has an unconditional right to invoice and receive payment in the future related to its fulfilled obligations.[2]Contract assets relate to unbilled receivables (including a long-term balance of $733 and $784 presented in other long-term assets as of December 31, 2022 and 2021, respectively), which represent revenue recognized on arrangements for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date, and the right to consideration is generally subject to milestone completion, client acceptance or factors other than the passage of time.[3]Deferred revenue represents billings to customers for which revenue has not yet been recognized. Deferred revenue that is expected to be recognized beyond the next 12 months is considered long-term deferred revenue and included in other long-term liabilities in the consolidated balance sheets. |
Revenue (Details) - Schedule _3
Revenue (Details) - Schedule of trade receivables, unbilled receivables, contract assets and contract liabilities (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Trade Receivables Unbilled Receivables Contract Assets and Contract Liabilities [Abstract] | ||
Net of allowance for credit losses | $ 1,130 | $ 1,337 |
Selected Statements of Operat_3
Selected Statements of Operations Data (Details) - Schedule of research and development expenses, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Research and Development Expenses Net [Abstract] | |||
Total costs | $ 64,753 | $ 61,924 | $ 47,156 |
Less - capitalized software development costs | (6,097) | (7,911) | (5,798) |
Research and development expenses, net | $ 58,656 | $ 54,013 | $ 41,358 |
Selected Statements of Operat_4
Selected Statements of Operations Data (Details) - Schedule of financial income, net - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule Of Financial Income Net Abstract | ||||
Interest expenses, net | $ 1,427 | $ 2,907 | $ 3,922 | |
Exchange rate loss (gain), net | (360) | 342 | (232) | |
PPP loan forgiveness | [1] | (1,465) | ||
Derivatives loss (gains), net | 1,193 | (3,338) | (104) | |
Bank charges and other | 146 | 291 | 219 | |
Financial expense, net | $ 941 | $ 202 | $ 3,805 | |
[1]See note 3 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands | 1 Months Ended |
Apr. 30, 2023 USD ($) $ / shares | |
Subsequent Events (Details) [Line Items] | |
Common per share | $ / shares | $ 0.25 |
Common stock value | $ | $ 13,800 |