SPNS - Earnings call transcript Q2 2022 | Sapiens International Corporation N.V.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Sapiens International Corporation's 2022 Second Quarter Financial Results Conference Call. Sapiens second quarter 2020 earnings release was issued before the market opened this morning and it has been posted on the company's website at www.sapiens.com. [Operator Instructions] I would now like to hand the call to Ms. Dina Vince, Sapiens' Head of Investor Relations. to like you would begin? Dina,

Dina Vince

on I Thank Alex and of quarter CEO; to are Zukerman, me all Mr. Roni and Strategy like to you, XXXX Roni Sapiens Mr. President With second Chief operator. you our conference welcome review Officer. today CFO; would call Dor, call the Giladi, results. Mr. to

Following answer any to all be the available summary of the results, we will questions.

sphere to forward-looking Before contain remind disclaims The we whether any future a the I we like events, everyone may refer revise in any to its other otherwise. would conference to the or provision information, to issued projections this harbor measures. because call. expectations content or today's release of On of today or statements. these will apply non-GAAP or call, that of update forward-looking financial safe call press new statements, in the obligation start, the expressly change Sapiens also

results which company the in Mr. we via or the website's available will Roni Dor, now the Relations - release be Executive. A showing of the the in opened replay call GAAP this Our call before Chief earnings release on our of published call link this morning. Roni? will been website I to today. is turn over market our and President has vs available constellation the issued section press A schedule non-GAAP Investor provided after

Roni Dor

would I welcome Dina. call you, Thank to like to everyone our today.

a forward. marks for step us This and steady confident a quarter

our existing grow to employee improvement XX in this a revenue continue to our increased This year-over-year. constant our while our In basis XX.X%, million These an the to X.X% in and margin ongoing and support growth on our $XXX.X to line customers. reflects India quarter employees have we profit. X,XXX second of prudent our and actions quarter lifted with year-over-year basis. now offshore operating second operating X.X% to new strategy, scale. support future revenue base Our We over growth profit from growth grew improving currency or points

market software be the Let's The solid. dive business. in continues into market the to sentiment insurance

While decision these held long. need well broad this too large longer Sapiens and of market vendor positioned global for a there the process, transformation product digital be transformations. back with for presence is cannot and is of offering to be sense choice our the

our visibility gain our addition, of expanding us base customers a ground help revenue large us solid and In revenue existing for upselling and confidence. give and

continue in outcomes. investment and We marketing our and in pipeline. our our confirm which strategy is existing customers to feedback delivering The from rewarding and our we position R&D investment both have leadership new sales our increased results maintain our that growing positive

contract continue as multiple as to see and win currently have well We underway. new blueprints We new businesses. opportunities negotiations

In regional Let's switch market our Europe, pipeline. as recognition performance. our now is our growing to is

seeing the with are deals than that products Tier are include higher more bigger carriers. regions We traction more past, we gaining and in

deal. This X us currently multiproduct moved the and a have As has a on recently calls, added European we we customer large to previous phase working the another potential to blueprint with on country Tier blueprint. multi-company, mentioned

recent the deal. in impacted this a has the of management However, closing change customer

revenues from a recognize XXXX, not in to As do result, expect we substantial customer. this

XXXX and contracting. One In has moved has the new Life into have completed this contribute to pipeline the the growing pipeline C-level blueprint will the and of is in XXXX. the tone generate market continue and expected is a U.K., already in in Pension we U.K., We in second the of customer P&C and that engagement and onwards. our with our opportunity deep businesses this In positive half managers productive.

few a that all in pipeline a into We the where there region, P&C areas. in we demand DACH are discussion. and see are stage post blueprint opportunities contractual solid important Right moving the have now,

and us signed with we that which newer on Life we we have are be region, these in now addition, pipeline. the with on in the are also in region quarter all these for working have opportunities presence future are growth. great and levels. have in strong are stages local on Life opportunity Pension, where gives and These meantime, the are the other discussion. In some they this our are second product the significant baseline we new become shifted are also expanding Gera growing deals the in There close The large our dominant Overall, of the built XXXX. to start originally German-speaking larger ability In the sizes In planned and well. our second we this This P&C we in we in together we a and to several function region, of in where advancing prospect. local have increasing pipeline we working offering. we confidence half the Pension. various progressing work countries, of building opportunities we new opportunities deal a Nordic but goals. the In contractual proving European player, to to references, Europe, pipeline in based have in statement are In as market and maturity close attractive have

is digital to services footprint with mid-tier our appealing global regional and offering core Our carriers. multinational and and managed both high-tier

deals than FX, dollar. likely on region benefits annuity that continue take continue we the remain In our our currently product growing forward. where will especially strong strong a based confident reap strong on very most solutions. the European As have be the very demand for component, In The in late market has to Europe of in we process pipeline the We the deal business, and investments. core deals North the going scope stages. based and are our on position, components I the have approvals. and some have In and European to growth to investment leadership to offerings, a of pipeline our mainly impact in mentioned, close and we longer America, Latin of our initially expected, strong additional and we revenue was time are product requires more to due increased significant closed recognition,

This quarter, business our North EquiTrust America is a for on logo EquiTrust, new partnering Life announced we digital Sapiens application. experience. agent next-generation our with

intuitive solution increase end-to-end empowers Our EquiTrust team sales more with to engaging and experience.

service digital the progress. we achieving of provide world-winning to Core illustration smoother U.S. notable and agents we EquiTrust Suite, will Our suite and have In are acquisition invested customer reenter app heavily and with market capabilities. solutions

are the our contract. significant works signing Also, with process. based In post are we player. together blueprint gives have an new made working close we of We a and the to prospect. these in reinsurance, us progress Currently, are in ability global logos. on finalization additional we a confidence This contract statement towards dominant are

during expanding existing of new as well first businesses the in our We as XXXX. closing businesses been have half

the the a in the platform improving, us offering compensation in We our quarter, the its and XXXX. We have pipeline pipeline expect In workers' second signs workers' following of our sign downturn market for customers. showing Suite new during growing of have customer with strong workers' mid-tier COVID. of ahead is high sessions and The update now a for insurance, Core to cover businesses platform. compensation compensation

investment Our opportunities. and next the several ecosystem. new the the some North We deals six anticipate is within thanks closing America product, partners in P&C pipeline across to the has months, our the grown in maturing and team

and implementations insurance P&C We with system expertise delivery enhancing turning consulting in In Mindtree are market. brings corner support focus technology partnership our in announced a second will our to digital P&C key Mindtree drive initially capabilities the and in the this transformation. quarter, business. domain, and we extensive on help

months, stepped with process contribute region, and two a significant cross-sell we and, deal expanding to existing In have et we significant into accounts, additional made businesses. of have over South our continues new up core cetera. both traction growth. Africa last digital to the system substantial With the our in six

deal the Another the This interest reinsurance company joined a example offerings, Mutual, P&C continue the our leading through to originally offerings. we Old solution. APAC, two our commanding in see learn-and-expand the analytics customer is acquisition. customer, our great existing the In with and solution TI insurance of in region, Sapiens strategy growing

completed key region and opportunities. for in we All the differentiator a the with are several with competitive other these prospect remain We progressing have a Sapiens. blueprint

software Our insurance gained ongoing analysts. in investment in recognition product industry of position market development has the and continuously our improved competitive the

as investing compensation insurance and for Celent progressing quarter's core cross-sell our North workers' complete keep multiple deal our This recognized in been data, of deals offerings cloud, taking our see digital digital Sapiens solution. solution the and services. higher P&C existing from reflected on for and per into constantly the capabilities data and platform for in its of solutions proposition. our public and digital suite heavily cloud majority and product. of cloud core a deployed certain The fully the cloud customers. advantage maturing enhancing stand-alone our includes benefit for of are products offering advancing our report combining from selling We market and over ability vast interest and acceptance and functionality. of our keep are and all our standing to Azure our This in strong proposition investing a platform We recent out claims we products native XXXX We proposition. has AWS This non-Sapiens America leading in the and deploying in cloud

from feedback and face an overcoming we and in helpful in In North road to that product executive the from strategy. an in we executives industry with events Executive we both confidence XX Nashville, face-to-face our our we and C-level Spain base discuss prospective from customers In map. marketing hosted participate discussions. and market. in multiple in existing C-level engaged challenges Feedback and We XX where executives gave our session Our and was Europe. had us in customer to America are confirmed met North Council we June, positive return activities May, in productive event this America the

this are we back Washington, America in to which In in in mega place taking North client year D.C. November addition, our was conference

growth. practice M&A accelerate help us our Our

Now yet valuation as DACH, completed the levels, but are are the starting strategic to the we to ready that reviewing the not a of acquisition trigger deal. pull we and Nordics to as recent have reasonable market well come in the on integration few back Gera prospects carefully

our to large our leadership, our base environment, ahead the In growth customer capabilities. and benefit of our with ability offshore Looking to balance and from remainder expenses this XXXX. product we

canceled solid of with in opportunities. is which deals maintain are conclude materializing us our digital and gives levels the a pipeline spread not We discussion on market. senior will We potential Our all operate that at transformation delayed prospects. market I diversity a is a general comment most with close. the are and will Those in deep essential.

a deal and their demand Now more must projects process competitive agility and disappearing, carriers the industry. "must to cautious have." not have not while high Underlying keeping ever, a be remain decision transformation more but Customers "nice customer the are have" level very efficiency in essential. and than a satisfaction might is

Second enable steady us our and current visible to business model the existing from from added macroeconomic environment stability. giving with cash us revenue operations. comes of XX% of clients, high source Today, navigate

confidence needs in market and in We to the leadership maintain our strategy to can our market insurance and the address deliver ability generate cash. execute high. Our growth our and confidently remains to continue position

turn Now, our Giladi, I like the to call Roni would to CFO.

Roni Giladi

non-GAAP comments stated. with sheet unless balance a versus XXXX. review with wrap flow follow for I with and quarter guidance second up All otherwise on year-over-year cash of of our Roni. comparisons you, I up XXXX, and are XXXX will will of begin the the QX Thank results.

significant dedicated As be will the to due in to part that. a currency there results the of change quarterly significant the review a headwinds,

U.S.A. the is to QX of XXXX. constant quarter On to year. second last of gradually a Just of to second second quarter note, XXXX the growth European of compared in XXXX XXXX Revenue $XXX.X the currency versus million, X.X%. X.X% headwind base, QX of revenue rate from currency to since weakened increased The dollar on up quarter-over-quarter date. the currencies organic significant the to quarter our was compared

constant a higher even than addition, the one, of in $X.X on million reaching to quarter the previous revenue In base, been this QX our currency reported would $XXX.X have million. compared when year,

and in XXXX, $X.X America XXXX revenue close new compared of logos. to lower $XX.X of Our amounted million, time to QX to higher North X% due million to mainly than QX

our in rate to strong million $XX.X to same impact last versus performance of in revenues. weaknesses amounted demonstrates On in currencies the This of of base $XX.X region. Revenue $X.X South X.X%. $XX.X last of dollar to in higher our year. The P&C reflecting compared currency constant revenue the includes to up U.S.A. in quarter of the of which QX growth European XX.X%. the compared profit mainly to XXXX Gross European year, material from of Africa was of South last European at XXXX $XX.X a QX million, Our grew increase of world QX, from same rest of million was reaching revenue million million, QX $XX.X in level from APAC year, and by Africa. deals million, QX a was an XX.X%

basis of quarter $XX.X currency continued this X.X% of of the this XXXX. level compared million, points margin quarter. QX of XX.X% amounted from headwind maintain margin at year. XX quarter-over-quarter. despite this compared operating QX QX Operating costs. to of profit XX.X% quarter was gross able basis a year, our profit second increased in labor this to and Our We On to same XX.X%, margin were the gross margin in of improvement to up the constant increase to percentage quarter currency million to showing the last our XXXX. higher amounted Operating XX.X% $XX.X

million expenses the we and employees a continue further. to amounted quarter, a the This and of Sapiens at the rate $X.X to compared to income region result continuously margin. attributable were share of able We to amounted our remaining attrition to been quarter million improving in diluted of debenture factor expenses $X million profit our the we passing quarter an and the three of the the a even diluted in amounted it quarter compared $X.XX the in of per X,XXX compared element quarters. on average accelerated hedging expenses, million share of compared to $X.XX is in few mainly million to an Interest to of pace investment transaction grow million, last increase XXXX to experienced $X.X of India which our hedging about per shareholders Net last of $X.X QX due months. to crucial our EPS to to income even for last second This in $XX QX for expenses staff milestone XXXX. celebrated lower each $XX operation, year. of

amounted income in our EPS XXXX the XX.X%. is to just expenses low adjusted EBITDA to I discussed, by and the EBITDA As million quarter. net second in $XX.X X.X% and due the higher increased interest of margin to quarter

sheet. our to Turning balance

cash $XXX XXXX. short-term of we totaling debt had million million in of and and As tranches and equal will June XX, $XX mature total XXXX, which cash equivalents annual deposits four January until

flow payment During to and Ratings confidence with of XXXX, upgrades strategy. well lower IsraelA+ adjusted deferred free timing our stable The outlook rating vote as of is on million. outlook scale. represent payments free following net with IsraelAA- S&P business quarter customers in the model XXXX cash contractual rating operating the the flow results bonus in in due as is regards low Series Global recognized to $X.X the reasons: June, as upgraded second cash profit, payments stable mainly quarter. local quarter quarter paid another milestone we by previous generated from of The the which Sapiens debenture of B Sapiens In and were which this Maalot to revenue a

of our annual dividend August months guidance will declared per XX, share, on basis, a $XX.X XXXX. be same first XXXX ex-dividend turn Following to to XX, our and total XXXX. I dividend recently dividend Directors for of for a the to XXXX. now like year of August reflecting date dividends paid dividend Board introduced on six distribute The would is the $X.XX our of policy a million

end we witnessing turbulence, currencies of and of With the deteriorating the U.S.A. a The FX last we versus continuously items: exchange origin the which headwinds; considers Europe are since. dollar as revenue anticipated the which year in of Our our of discussion the only impact significant With yearly transaction deep two, actively impact previously decided significant deal levels $X May regards to forecasted we guidance The year. this European the timing the the two in still to the previous amounts reduce on have to $X million. on based until and we continued underway ever regards which our of One, weakness all revenue end European million. year the discussed. significant to has at began been amounts revenue is guidance update, guidance the impact of to from guidance main of

new year. have of materialize we HX. will $XXX million same range a that level As million are that a still result, range need million $XXX We We $XXX will the to logos this $XX QX revenue from of in guidance million an the new of go-get $XXX to revenue anticipate QX our of million. of from be to additional updating to

confident we where that the are the multiplied agreed contracting with can finalization We commercial where are paying terms contract to are stage opportunities phase prospects the advanced customers start work. have we us this revenue due been to prior additional and achieve to the and upon in

because we logo still of customers. impact opportunities today will our the our revenue is which macroeconomic with that There addition, revenue accordingly. business risk offset global conditions will existing model, deteriorate In new can guidance from additional from

Moving margin to guidance. operational

made we we In the employees. last headwind gone from employees, progress reason emphasize, revising a to The our during R&D total a from guidance margin today, expenses. XXXX, including X,XXX XX.X%. XX.X% India. load QX XX.X% have XX.X%. year, offshore XX.X% of a And despite the cost offshore delivery, we X,XXX strategic tremendous XX.X% is range operation To We of had Sapiens have across board, in and supports corporate to ratio our of range main of and profitability to improving to mainly the of the are currency which higher profit upwards,

XX% update full earlier, the a for pound, shekel Swedish euro, like have XX% on quarter since significant. is on from constant was level of European the versus Danish of XXXX. all revenue to fourth significant. Sapiens' The between currency I to British the year and Dollar currency headwind mentioned basis countries weakened of the krona XX% are and would therefore, derived impact the krone, Israeli XXXX. you U.S.A. revenues As

from yearly million European on had $XXX around additional midrange expected to our European the basis, the Therefore, contributing would a we be currency region Our an region, $XX is from constant have million. to revenue. revenue

represents in of midrange to business As a would result, a year long-term constant our with line have total basis, on revenue model. This the currency the for growth a million. $XXX.X rate amounted X.X%

XX.X%. On hedge, zloty X.X% Indian This local To that, emphasizes currency with an while our as grow than profit. when margin, Therefore, market. improving to the to constant margin versus U.S.A. shekel profit I'm over all our should our support a the well resulting currency basis, impact revenue it summarize, the continuing of trends profit biggest X.X% turning dollar, our in our offshore Roni. rupee, weakened natural on guiding of which revenue one in of region margin. we we are currency Israeli growth operation, had Polish more which as cost main has also the on partial global are With operational the

Roni Dor

Thank you, Roni.

business applications; by customers; our we existing customer more XX% to white profit; our is and four, between customers; sheet. risk One, have strong of expansion business and a balancing vast and six, driven due many relationship two, strong would pipeline, offering operations world; and emphasize like and long-lasting direct We strength in mature I the and presence. geographic business gross that our solid is a numerous balance large five, mitigation across have for to with core base our three, than geographic model.

to deliver their to our ongoing remain in to of executing improve M&A value. our committed growth facing our to ready I'm entire lower and in opportunity of call improvement we the market team macroeconomic recruitment talent, and challenges, and shareholder valuations achieving proud we the goals. view is the for retention are more. of field an and as global several We commitment Q&A. Sapiens areas, As open strategy Operator, this

Operator

Jefferies. Huang [Operator of from JiaXian Instructions] First question is

JiaXian Huang

the -- I'd like clients in demand little in versus deals being the you about but conversations How you're and still we talk this. in around terms a to are really we that can with journey sort three understand I they part think How the with start impact think that where that nearer terms were trending? out? to of the of a pushed ago we risk of having there of is should where conversation should months about bit their clients be there about should the much going about term? where how is think they're actually long-term

Roni Dor

is This Dor. Roni

of a with then of was second another believe as I very, longer journey, client. share just this we with mentioned, just a And it the very in into new in holidaying to all there is now, for reorganization Europe, a with And to starting And work with As you, client the blueprint. country deal. you, blueprint, time. close time a this we close a in was right everybody this matter enter

what in the then us deal. be believe of people we when and will only be can will talk So start size continue clear the and with intender, it the more to we new will

like Just revenue guidance, the update in until the it this of out from end of customer year. took the terms the we to

JiaXian Huang

six thinking is visibility months should we better the about be for need conversations into terms macro think it I -- the concerns macro these understand comfortable of being environment environment, -- matter would going. Understood. the with I the negotiations. the out tends about they big and a contract their of wait they with that is of in then more need And budgets? the, the the call solutions, but Do broader of want more source of meaning clients. they to pushing comfortable your What we're the the broadly is if what remainder clients? to picture it's where How

Roni Dor

the don't budget the macroeconomics. is and issue I the think

is, maybe It P&C, it reinsurance, The on. so is, and the the multiproduct. data included question they're our decision, client the by life, to changes, before digital, understand not made when that this people only call is digital deals want change and way, and think a of things This I enough signing priority. these we is decision. of big type

it's on. between about So priority, more and area a also so different their priority

don't challenge the think I So is budget. the

JiaXian Huang

Understood.

apologize. I'll my I clarify question. So

I that other second The are pushed being clients. inventory is that more Where asked question deals about out.

it's clients we're those that mean they the question how get need And work? of does visibility? deals? waiting to six we're a so what months, months? waiting How Do three does long And sign better will so -- that

Roni Dor

In the let's the, the plan have in that this we to pipeline that call today, deal it, year. we sign

is sometimes that include Beside think of are has macroeconomics, of going tiers. services products, the challenge more the complicated area higher or the seven towards has challenges. we it and Each become I that there we product take two six, includes years. had solution seen and suite growing is cloud more three, contract the five, and because more

So time. they it That's the takes bigger, of also become complex the deals, one.

time blueprint And we entire the we and I this The is are signing also -- of us, doing making sides that requirements way sure after as the before to deals between contract time. that we select take commitment that negotiation. we shared, their a you these we all have Second, understand we phase. that will share are blueprint with we you, both to the think the contract, then all all the all and they going getting of entered design, are

what explained. -- I the XX% maybe my because rest microeconomic, view, about is think, at The size on of not XX%, this is it's and just moment, not delay in again, majority, I their the the the I based coming I in the they deal people this are afford because more we thinking situation. is So are situation believe, XX% share. sometimes it's think our the that microeconomic case, still But

Roni Giladi

we comment, this to sales core with prospects we are long us think I very And, contract as I cycle. a paying solution is us. the And a need are mobilization recently, even about signed. call system after additional the in it meantime, Roni if before talking mentioned, add wearing The

change that we'd there a So continue about you this can to in evidence decision. still to mentioned risk that is ask. macroeconomic is or another change that like Yes,

I about think earlier, in is plate. million mentioned this right $XX which we now the

JiaXian Huang

color your just final reset you markets one potential about but you're would deal Any like How pipeline, of them valuations at deals about sounds there expectations. at level talked the is this the quite private are then And acquisitions. much Understood. like quick question aren't starting a You to It now point? to at be? gap there? looking

Roni Giladi

This is Roni.

and not down. see to evaluation to start we degree the of full squeezing as So

We our right pipeline are now. building

with by to the globally. We valuation is public must people and decide usually the public. say in about if are way, is difficult But talking private there is potential from who talking prospect market, ones, that more I And owner the the about the we're the downgrade devaluation resales.

So see start significantly. of decreasing valuation, not we

the We are building pipeline.

Operator

of -- is question next is from Tandon Mayank Needham. question William The Dylan Becker next of the from

Mayank Tandon

manage do inflation coping the impact on the side, wage you the and Roni question a My you have really a more you. dealing with strength, how to are supply congrats Roni, Thank pressures how FX and services able given that the are the on you at margins? I totally understand are segment, that such is with companies strong many least on on constant currency issues. basis,

Roni Giladi

Roni. is This

them that the in do being is company. increase The cannot level, giving is the still opportunity, and different able them there. that have review sure company another year. promoting are this to as something already, focusing the did we year. compensation one to maintain obviously, We did that preserve, it growth year, in is which the making from pressure on the twice previous another to So every salary we in most We key we like people

I continue, think will if be there will it shift also to customers.

to We customer but full have degree. been able to slightly shift to not our this

are that we way the now is this this handling right So internally.

Mayank Tandon

let's margins and say, the have on staying do earnings and worsen an profitability impact as pipeline well same ensure and if theme, manage there you the protected? conversions. then does on your And is Understood. still deal just economic levers What of the are and that the to climate

Roni Giladi

So obviously, we started this in the company only basically process.

that support We support team are of from on it on R&D recruitment carefully support flexible focusing and several corporate build that then how to we have the year expenses build carefully we until to we sure opportunities, it from the potential more end recruitment, monitoring deal and this making to sign need that can monitor. the a are area, deal the monitoring we that the with

So obviously, looking this. we are at

Operator

The next Dylan is of William Blair. from Becker question

Dylan Becker

a of of here. Maybe macro start way off I wanted dynamics the kind too to asking different

So on a the with customer base. guys you emphasized recurring existing projects lot

activity new Whether effectively, Because the the customer net between pipeline existing a relative seeing you think little of the it you're the in change dynamic sense blueprinting As progress the customer your projects the are or helpful. sides? I of or versus about be the implementation? starting that's you pace noticed continue seeing, existing acquisition have discussions current the new? Is base? hesitation you're any any segments and what both customer willing cadence and would to from with to net from actual more bit hesitation guess, a ongoing to

Roni Giladi

this Roni. is Dylan,

business is say, strongly Our basically model our on existing customer. build

XX% those cycle know and core XX% customers business. any system with need we've not we of our about supporting We their they with are have of them. relationship customers. see the from and to do We from change us, today revenue life coming that's what been We

potentially, have this for as We earlier, to deal in a we to compensate to ability And is come. continued delay new get. mentioned also

Dylan Becker

full or the past. talked does emphasis guess the like the you that can in guys customers? guys talk have that with looking you to of I business sounds an standardize Does a you vice any may And much the companies come and have as to systems up some cross-sell strength of how with as have very newer extent serve driver guess are P&C existing to markets relationship especially life of that more side as life both we I play But in life P&C versa? Effectively, kind the lot a come here? suite the the in it play on well. conversations talked maybe are globalization helpful. then, on be P&C it Europe sell Okay, and growing into they about businesses. of dynamics about as that benefit wedge in where adoption, of your capability maybe cross does line obviously the to maybe Can of about a You seeing?

Roni Dor

continue. can Yes. Roni Alex then Dor. And

looking First the continue generating but order products, to new we I again previous big lot additional the are about a that additional like we release, we services, to demand again a of our relatively with Also, on. cross-sell, and morning and generate your talk and existing answer deals. so about all, new work do to grow, of for doing with In believe huge about new existing give deals. Roni can upsell, the in product. would we question we Sapiens, in more organization, are our in But have investment the that after wakeup obvious a the coming customers,

activity, lot I think lot sales, marketing of sales, support, mentioned quick a I of these. of -- a we all sales that

to us. that -- are the sending the and who many analyst. ask the we we the customers they help and best them are all getting the them vendor So this clients is and from area analysts, just and There is in calling

and Sapiens So the it brand. and growing, the of new a good part business of have type that we area in definitely see we very it's is

we and that components, the our on. this we unique digital core the P&C have these asked, we About so you life two systems, main advantage Sapiens and more and something answer. P&C one of that more and in have Life have Sapiens, versus competitors, key that's all So is other

that we year advantage at new that more two, clients or have have least products. the one we clients, two we two clients hopefully, also So between have the that have cross-sell of them. cross we And see

So the on it again on area. but depends territory, it depends the

Dylan Becker

may mix a the little margin little bit a offshoring installation. how more of But are think last I about the do One of moving dynamics of new as cloud. you the bit deals of one, if like think, about, well, to of as I lot it. potential shift? We to. talked the gradual sounds kind kind Got a It

well. talked on as adding kind forward well? But maybe time side, we've to front that play shift about instances the into over in start gradual providing as as to but you do an you and uplift the well? as going model the of I think potentially mix well business on as think And could margin when mentioned focus new well, the partnerships how about in the some some implementation

Roni Giladi

Alex also with will the will this the and revenue solution. margin on on talk start I the maybe and uplift about cloud the

years are say, on of have now, of today them, right we being didn't provide all most than the obviously, last pretty are deal in two XX% the additional past. -- we So the much would or This in I cloud. more the lever revenue that

level to and second is margin Tier on is very and significant For X. infrastructure a The because to the third the very it from the small Tier is business. Tier similar Microsoft this basically, support But infrastructure example, ongoing on the X party. tier relative margin Azure with our AWS, X,

mix I'm continue supports revenue of them. and sure So can further. the it Alex? Obviously, it

Alex Zukerman

Alex. is this So

mentioned, the and company in managed customers. the only the of but closeness Just the this done with majority cloud not Roni are to then services, increases services, the the with complete full cloud a revenue stickiness also what that

outsourced to That's to two and about long Now of providing technical on fixed the to long type also the services layers the in into add we which cloud another is services, part thus cloud would our us, full this the sticky and of And to cloud customers. level as The around building top plans are XXX% today and cloud And services of applications of services. what our provide that are a services. providing in of of technical definitely the of process revenue. our first term. the said services hosting support we Roni it our this cloud be across the full cloud the term,

Operator

Rosner Tavy The is of next from Barclays. question

Chris Reimer

questions of year-end Chris Tavy. wanted most on been Actually, is I regarding the for guidance. Reimer to my asked have already. just clarify This

taking one to You one Just out European deal, mentioned $X million the due correct? deal? the

Roni Giladi

Yes.

market, about out have we the discussion guidance. deep talking revenue our customers, continued European the are in the multi-product Tier where although this currently, it with engagement the in opportunity that took We in X multi-country, guidance, customer,

Chris Reimer

have been doesn't that delayed. might any other include But also that deals

Roni Giladi

Roni we is the have that revenue. earlier, have mentioned as significant a that supporting we of pipeline, all have, We the existing the and on rest of top of

Chris Reimer

we near term? also And macro mentioned cycles be versus that because will sizes, assuming the the cycles sales longer because should the longer you've deal the of deal be and

Roni Giladi

services, Roni think right that we also deal volume mentioned making man something now that there doing, to the and are it value are is on we continue are provide that the because hoping service I year This will significant the deals the the to adding sales component additional company. that's we cycle longer.

Operator

are no time. There questions at this Instructions] further [Operator

to Al-Dor, Israel, call like statement, please Mr. with replay begin in to like call ahead to concluding ask statement. hours (XX)XXXXXXX call your two you the X-XXX-XXX-XXXX. and In Al-Dor please closing remind I call would this Before please two participants make that XXXXXXXXXX. hours. I a would his to scheduled Mr. internationally, go is of in U.S., In

Roni Dor

Yes. for welcome Sure. to and any you us follow-up feel questions, Roni. for today. Dina reach Thank joining you Thank today. you We all free of to out

Operator

Thank concludes This results Sapiens quarter the participation. you. Corporation's second XXXX Thank you International your conference call. for

You may go and disconnect. ahead

Sapiens International (SPNS) 7 Aug 222022 Q2 Earnings call transcript