SPNS - Earnings call 4 2023 | 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 2023 Fourth Quarter and Full Year Financial Results Conference Call. Sapiens issued a press release before the market opened this morning, and it has been posted on the company's website at www.sapiens.com. [Operator Instructions] Following management's formal presentation, instructions will be given for the question-and-answer session. I would now like to hand the call to Ms. Marketing Head Chief Investor Sapien's Cohen, Officer of and Relations. Yaffa you like would to Yaffa, begin?

Yaffa Cohen-Ifrah

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

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

forward-looking financial opened our reconciliation press the the be on provided after before been release Relations replay issued non-GAAP I statements. Before remind the change that in market because information, we to harbor measures. available results of statements, start, call. morning. also this events, call new expressly today's its to our otherwise. non-GAAP A call of will we would projections A the available in future everyone Investor of whether this or today in this like has contain earnings Setting CEO to of via Sapiens. obligation or website apply of these disclaim of company a Roni any or may or and President turn to the provision Al-dor, refer want section website the content to Roni? release today. to to link, call, in which I the press update On expectations issued published view conference The call is the release will other or of the forward-looking we safe revise call over any GAAP

Roni Al-Dor

again our and strategy which strong today. categories. growth resilience. that XXXX happy our Sapiens to fourth XXXX, across joining both and Yaffa. you, successful the was us Sapiens regions of Thank year quarter you product in report delivered I'm our for in growth execute Thank

profit rose start by Let's performance. by quarter and operating from revenue X.X% In review increased XXXX, dive I the XXXX highlights details. the and into with will then fourth XX.X%.

America distributed growth Europe Our X.X%. On we regional was achieved a the across region serve. a North of basis, growth XX.X%; impressive, was

was continuous XXXX annual in to strong management. our reflecting will margin notable achievements our foundation from I serve to operating efficiency Our prudent for a a XXXX. operational XX.X%, financial would business like that emphasize and robust several commitment objective

are our and XXXX. well to First, This as We sales grow promised, region. growth, business growth investment team, continue experienced North in this marketing capabilities has that America North important this in our we to to in market. robust we our expand equipped will and presence this and reinforcing key sustain positioned are America ensure

Second, we connections successfully and introduced new care cross the we in achieved enhancing our our relationship ones. clients. stronger clients engagement only ability showcasing our retain to playing sales model, in not is role also pivotal existing with and Furthermore, customer global new significant but increase customer attract which both a creating to

is recognition significant made in new life expansion testament digital signing commitment value we and market to progress new existing in data, proposition and share of P&C, Third, customers core market. and expanding and insurance reinsurance. with growth both about by cloud for our to in across deals workers our the XX increasing This our

successful lives globally. XXXX, multiple go in we addition, In completed

reach our hired a and with strategy have executive recently we relationship. expand this Lastly, we have To develop SI integrators system the started and to manage channel, oversee collaboration our growth. new senior accelerated to

in to mostly plan with work regions. and SI upper Our specific is tiers

committed the in preferred currently this and are SI approach. our to selecting We of process are

regional performance, impact. SI underscore let's challenges tackle mid- leading opportunities one partnered with our we This We XXXX, the the to with to a will working our of believe XXXX.Now achievement worker in America. starting the a example, North long-term in an SI in deals large with and compensation As in North delve gap America. readiness into have

mentioned goal have product expressed demand supporting and with enhancing marketing North I North America. were sales the and team our experienced marketing, As in expanded support the aligns sales, of we with sales America success, growth. customer earlier, These expansions

and momentum are We in have closed in segment excited P&C new new adding the the and core capitalize are experienced and to the We comp we North components, verticals this new from to deals. life workers we years. North workers' customers. in America new committed step-up prior significant In we deals for America, opportunity. are in Life customers annuity about a continue particularly growth on and both be where P&C and XXXX, compensation signed

and remained an implementation XXXX in key North these customers successful segment America in a factor also track new and in proven signed winning Our platform. Sapient active ongoing support, on were Reinsurance record the deals. for

reinsurance winning platform. with deals end-to-end and in our In signed APAC are core automate our solution, manage award-winning our We for region, to and new efficiency enabling across products all with seamless insurers and of [indiscernible] deals and we through EMEA control program P&C integration.

us into our are coming presence across backlog product all our momentum, and SaaS position delivered pipeline lines, & of maintain to model. in these markets. new XXXX secure Life expand and favorably and P&C This including Our in strong Pension deals

growth in to throughout commitment XXXX. growth existing headcount across accounts and anticipate we and the these within marketing in product regions, all of in APAC Our is Furthermore, size our cross-selling North by our in underscored and sales, including EMEA America, opportunity momentum across increasing continued marketing. teams additional regions

the showing years, Additionally, This life markets. in space. particularly growth foothold to in APAC we our these and direct are investment pension our territories and X in result traditional P&C made of potential, the is strengthening the a growth X EMEA significant in over past have

the Sapiens the that be has will and future. experienced our call, land-and-expand we successful for near As strategy region, growth believe shown mentioned growth APAC the which additional catalysts in previous has in

this current we region progress with are and made are We a about pipeline excited building have in implementations. the

to quarter. fourth the turning Now

quarter. highlight want in successful Our overall fourth I margin impressive growth X.X% operating go-lives QX to revenue X at the was in XX.X%. QX and was

or Sapiens to exciting. cost with the the ScoreSuite It position. market Nordic boost live digital First, in & GPF its first for live company, the insurers' expand which capability Pension with went go savings. Norwegian leading is Life their for services SEPTA Nordic customer GPF cloud insurance region, the will and is Jens, region individual very

automotive continued a workers' to CoreSuite integrated selected efficient suite second Second, to Sapiens its for took lastly, as our regional system. IDITSuite fourth Solution position dedicated digital company's WCB core customers core company's In for the performance a Saskatchewan claims portfolio Cloud for management. the North in engaged exited of in us were momentum with strong compensation Board EMEA leading Sapiens well warranty quarter the we over live and Phase a Workers with the legacy replaced and intelligence planned Saskatchewan, in of and Compensation delivery. XXXX, service Sapiens value year automotive for XXXX. X Sapiens summary, and remain XXXX. by for in warranty system guarantee quarter, warranty America system phase product and compensation, We the implementation we fourth policy with implementation transform just lines And success for for European business. brand and shareholders. its growth sales our platform management modern transform and and office went to insurance of existing deliver to

XXXX, key share to direction. that strategic want guide I will some initiatives our to Looking ahead

SaaS platform products evolved with First, with include with and Sapiens our integrated insurance business-led advanced end-to-end continue platform. data our Sapiens our an platform transition to insurance SaaS all capabilities. technology

on management customer which data yet insurance proposition and our The our core and platform The digital markets to with prem. decision customer such program SaaS tech Sapiens based for second our operating lies In prospect modular our stack advanced a capabilities is fully our various are capabilities, into our customer focused the on unifies offering our our Sapiens leading all standardization our our across solution, engagement business and strategy tools of our currently partners efficiency and an insurance driving across new ecosystem solution SaaS-based customers with platform on our innovative technology with integrated all products ML across generative all The AI across and our for engaging data-driving platform coherent reusability value of are initiate deals aimed capabilities harnessing power core value common to provide an are capabilities, enhancing need, fostering AI insurance a existing innovation. products. our signing new operation. growth at using platform, and transition we we to forward. going model, components continue now base proposition. and our our plans parallel, our in aligns

significant America North strong new a have Europe, to acquire where our reference in and existing footprint growth expanding by made customers. investments and leveraging localization where we have we Second, sustain

about excited wide our customers Sapiens In we addition, product XXXX. to are focusing conclusion, ahead of opportunity cross-selling take on in offers. existing to of that lie In range advantage the

us XXXX and Our for and well continued position performance growth strong success. in initiatives strategic

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

Roni Giladi

to in totaled [indiscernible] Roni. I recurring begin currency quarter same of year. and in million, comments the mix. in This by previous growth $XXX.X wrap product constant services up quarter of compared you, in of was reviewing year, non-GAAP Revenue full $XX.X our fourth recurring than the our compared our On last revenue million represented of on for and from slightly quarter total grew $XX.X compared postproduction XX% the the commentary balance quarter Thank quarter. XXXX. XX.X% recurring a will the basis, and year revenue I Revenue quarter higher sheet X.X%. million of by the or will the XXXX QX QX by X.X% in $XX.X cash of increase revenue million to XXXX fourth Revenue software followed from million increase to XXXX product an fourth with results, last $XXX.X postproduction a of software XXXX. fourth and flow. and guidance XX.X% my

improving with and APAC.Profitability. Operating expanded million, QX was in $XX.X were customer $XX.X operational of by million expenses XX.X% by basis and by X.X% decline our profitability go prior XX.X% We profit compared in quarter and $XX.X our America of margin in in of $XX.X are We by Revenue X% Europe and XX.X% breakdown. of postproduction and products by recurring million, increase revenue million. revenue.Geographic Revenue growth pleased to overall compared to was year-over-year World, South rate the in which of includes million live XX XX the X of XX.X%. APAC a in $XX.X total revenue, an of in due XXXX. compared respectively, North Rest XXXX constant year Revenue year compared grew reducing million a of million. currency quarter margin $XX.X our points to and gross to a software growth extremely margin $XX.X fourth basis, million points increase also. Phase was $X.X the and and quarter, reoccurring ago basis in Europe the On Africa

in of improvement Although basis increased. an point resulted XX operational in expenses terms in operating dollars, our This margin.

that confident are both our to We further our margin. we grow business can and continue gross improve

XXXX financial XX.X% interest shareholders from for During of $X.X income fourth the $X.XX coming of $XX income million, Sapiens quarter $X.XX per the million was from attributable which fourth quarter, of million, XXXX. up debenture. XXXX. of of income, QX partially interest $X.X mainly for our million had of in share to the expenses was from offset of net was to up by fourth Earnings quarter Net related quarter $XX.X diluted the XX.X% we XXXX,

and European XX% or Europe months now XXXX up in full to X.X% North XXXX. America XXXX, revenue. X.X% product in America, software in you revenue increase grew like compared we revenue America recurring services totaled in that from XXXX. XXXX In increased guidance. XXXX, basis, revenue which growth increased ARR the revenue our would $XXX mix total XX with annualized for return This under results total growth. of just XX% basis, results grew higher by numbers, compared our we represented North revenue year quarterly. Turning revenue a came XXXX, X.X% $XX XX% XXXX, ARR postproduction revenue million, revenue XX, in X.X% currency range December remind $XXX.X line from on in of X.X% and by in World, $XXX revenue and a Rest million and to Total On growth to year, million million RioCan will mainly $XXX.X revenue. to North annual will provide a report of our our currency I in start we to constant constant in growth X%. of million represented to our ended or

by maintenance, Our revenue application of X. ARR last license, The term rate is revenue includes as ended ARR multiplied maintenance cloud and subscription quarter the run per solutions. the this sum

XX.X% compared points. reflecting XX.X% growth totaled diluted ARR to And Our points. increased QX of $XXX.X gross XX.X% from profit basis QX in $X.XX of XX was in the by XX%. basis want $X.XX increase to increased XX to Operating margin XXXX I of highlight XXXX for to per EBITDA increased million, XXXX. share XXXX. Earnings following:

to balance Turning our sheet.

XX, As of the XXXX, X, $XXX short-term $XX million had paid paid and was which in to cash is equal first which totaling million, scheduled January we X deposits and and one December of XXXX. cash debt equivalent be payments, of in

cash Turning to our flow. adjusted free

During XXXX, flow we million $XX.X generated million to adjusted XXXX. of compared free in cash $XX.X

terms net The to net year, XXXX strengthen following introducing million in North This XXXX of growth $XXX of Revenue. our Our QX single-digit the operating the organic want presence XX.X%. in to aligns free and to our strong for in our and XXXX. free our results. to income to XX.X%, growth with in was represent clients And non-GAAP adjusted in convert of a to the rest compared to XXXX margin margin million to in cash and the of region. Non-GAAP market. Today, a in rationale the stable commitment margin the We profit XXXX of operating is of X.X% is at in XX.X% the Operating growth of XXXX. guidance to The to immaterial at in to acquired midpoint. flow. flow high range explain achieved Nordic behind operating single-digit Europe at margin. full compared cash XXXX cash XX.X% our in I representing key we world. range the revenue expected ability our XX.X% the $XXX anticipate finally, low M&A, in flow midpoint America of and company impact growth are guidance. Non-GAAP we the better the be this serve end acquisition transaction of demonstrating small

primarily As all products specific America previously year, and offering for we we mentioned, in for began North to expand year for This plan subscription ago, line. subscription our deals and a offer product globally. new

converted postproduction revenue, will intend a a the are our in: in to to revenue; continued years. which The we in deal to period. nonrecurring shift Additionally, revenue over transition result revenue of will in revenue ARR The short into currently X are subscription be our transition one, and to of an current part will which longer that reduction years long new to a model two, be to revenue, upcoming customer of term, SaaS recurring from the total subscription-based recognized services our subscription preproduction recurring term. in a and for are financial the mid impact X part in increase revenue and

made at growth to growth We have not revenue. to profit. around due expect the we our to to approximately the shift impact rate the of Operating headwind X% annual change recurring be revenue. Therefore, rate our would subscription midpoint X.X% had been the

improving managed to have years, few we margin. increase our successfully our and the past profit Over revenue while

We believe long-term call efficiency turn revenue by to Roni our increasing this revenue expenses. reduction G&A we Al-Dor. I back will our these we to the to our in XXXX strategic SaaS growth increase year, to simultaneously better investment increased have growth offset and decision this increasing and operating aim decision partially our into to our steps, are. now into operational while a However, operating improve offshore accelerate transition company's and transition investment be strategic the marketing our margin continue where achieve sales serve made of and profit. ratio, and will the will impact to more The recurring beyond. strategic and and further SaaS Despite maintain Roni? we

Roni Al-Dor

you, year, highlighted the XXXX a America and profitability almost our XX.X%, Thank a revenue year an by We growth ability delivered healthy profit surpassing growth Europe of of continued operating our and accelerating the billion growth profitability, for to in business. North demonstrating World. was the $X.X and in of to Roni. increase growth operating of Rest and mark our XX.X% in margin profit scale achieve

product would remainder Sapiens over model to are: delivery priorities SaaS our all leverage of in our of all investment drive XXXX, one, out to transition our to regions, the of performance remarks and to to Looking are the the and I platform; the key for call world. for and we second, insurance close with our North rest call now open prepared questions. Operator, America, open EMEA our like ready Q&A.

Operator

Instructions]. [Operator

The first question Becker is Blair. Dylan from William of

Dylan Becker

[Indiscernible] or here. Maybe A maybe starting with Alex, too. Roni

and of on kind about talked focus have data transition, systems. the guys You SaaS integrated the

kind wondering I'm with exposure to risk decisioning about causing the silo seeing? kind in and of legacy risk think and carriers of real-time complexity operating that momentum given you're and extent a up they're in compounded So of today. management data systems that helps what their kind is its fuel conversion some and overall of coming shift of that staff and their how conversations How

Alex Zukerman

Dylan, speaking. Alex this is

manage properly. automation used more resonates a to the and us the proposition, is run which And now to ability data see platform data-driven actually the here the with definitely systems but system. only much is providing this and market, strong increase with tool in data proposition processing closed management analytics, push the but retroactive definitely, to that that happened the actually enables also company legacy ability closed has a and and the the workflow analysis So of take integration antiquated on we that And the are the a view to also seamless business, to of sold is tool customers. capabilities our -- that what our decision market And with issues coming the manage us not Due use data to proposition inside brings to platform the of core that's data. giving based in a we decisions our market. this in the we

Dylan Becker

it. Got

Okay.

for Roni as hear needed investment here how think the headcount Encouraging A, of well. by to how about you that's are broad-based capacity I guys seeing. and of kind of kind balance the you. the between and Maybe support real. go-to-market in about wonder to this kind fueled implementation investing of So the demand some

how You more wondering X a base. called But the between maybe of out accelerate towards hire about down partner kind shift balance can doubling think a ecosystem. and revenue how the you in product-oriented that that on this

Roni Al-Dor

is This Roni. Okay.

do system we versus the the onshore, to India, services organization few that a them. questions the I'll can So built to organization. good are R&D a and things shifting last more answer One with that years, for us ratio between we a very so you try we many that R&D less all sales In marketing asked, product and and develop section offshore people to about pure from strong to and to allow shift us allow integration.

not as the huge a the what on believe based the we but that majority the of take of it's but SI. on terms we we made, mentioned very between In the lose we the bring of overlap get we SIs, we we call, we -- also, part plan percent decisions revenue. business. that few we can And And still revenue, our that I and don't see what serious a are it can maybe to more SI,

part. don't the the some So ratio dramatically on we services see change of

Dylan Becker

it. Got

maybe That Okay. G. then a lastly, of touching And on Roni makes ton sense.

the more growth segments? of a mix what's of way side? So of kind these like as of lot about post and it's the appreciate these this kind given well and And it ARR wonder the kind towards kind on shift I the the of areas growth driving picked services versus disclosure side. thinking X as sounds are the I production right of lower-margin of up ongoing nice here kind that

Roni Giladi

ARR and revenue implemented of is part production new include, is, the than the I ARR. are you're right. this first, can maintenance. application post piece for Both which hybrid of that ARR grow This we're increasing of implementation verticals of And we time, as or and we growth. will time, deals product revenue, our production to these services the the the example, increase piece, post revenue see feel example, as we the that say categorize some ARR will company the and in faster that be also the So the in all layers over going with for to stream. the subscription services,

grow forward. faster overall, of these company will than So both going the grow categories

Operator

is Kevin question next Goldman The from of Kumar Sachs.

Kevin Kumar

increasingly you over customers transition customers ask incentivizing I focus that's here. the towards in migrated about may jump the many to do And about of cloud. think progress on-premise of like cloud. make the be kind guess I kind sounds the to It strategically, more wanted a who XXXX. to and how cloud how

Roni Al-Dor

we the shift We term, we build majority cloud. product cloud are the for organization, long services the to we shift, our of and

are think now what that's message we main proposition. I coming with our

are just all services But coming our and one can can by one We coming the is something the the past moment more the products, of this win all the But investments it's very, main the part take you very specific is different. case market new the time. to based majority and that's by we if approval the at So to journey that allow software business, for people we message. and myself. a it choose was that this of our are flexibility, and on do or a proposition the the other cloud package maintenance and in SaaS with me, as

Kevin Kumar

on expansion. where accepting how you year the And adds mix did do maybe kind [indiscernible] for 'XX? new it. that of I XXXX? growth evolving that expansion this that between How versus kind versus in about one And is of kind of logo and guess, land, of Got new can tracking

Roni Al-Dor

believe also you business. new if to Roni we answer huge bring -- can a continue base also, have we to but can client we need that must in but We we Sapiens

many not to the our okay, we move work to them this the of majority customer of So saying, type sold Sapiens we years, many, to are cloud. lets are company

business to new We cloud. are to of parallel definitely to putting a in the bring effort shift lot

the cloud this move our main not it's So moment. just to focus to definitely

increased in and strategy I our And sales and We investment marketing, have we as in marketing investment. CC. product mentioned, the the continued

So overall, and increase cost the for incremental. we are investment, looking both

Roni Giladi

one maybe Kevin, will more sentence. I add

time, new This last of at we improvement year. XXXX. And importunity is customer but of cross-sell from terms products product to the sold are from existing a number number cost this same customers oportunity, also the of also In logo, bigger the that than give we additional significant this take, to is or same grew.

are XX close now in deals. a to and We cross-sell right new almost We new very XXXX. deals opportunity get logo

Operator

of question The Needham from next Mayank is & Company. Tandon

Sam Salvas

This for about about the for the is macro should of think Mayank guide year. provide Sam how year? today. you the you talk throughout commentary margin built the and on revenue I wanted some assumptions the and outlook on have Could revenue we to touch on guys into trajectory any maybe

Roni Giladi

If also years, the we close or was almost we digits. Macro mentioned, $XXX is at around. that Africa And million in We single year, are to in to includes the mentioned America, not on between did APAC revenue in projected, $XXX nice the digit. about going X%. grew not and In in there. and significant we grow XXXX. and we grow If the APAC, going together, to we X in next North we mentioned APAC, slightly transition XXXX. growing region year, year, APAC double Last this but X South we we going we slower SaaS that we this X.X% of close than double last midpoint grow to impact in going looking pipeline, in to mid-single turn towards to that the to high high we European X%. started [indiscernible] are European did single The are continue years, And the do. about also million. a digit And region, because I'm grow back past, digit we we We have have to X% to then also look environment But which market as digits. slightly. over are

expecting X%. we're overall, grow at this to So without

Sam Salvas

of have or win a North of Are given Europe, been in just experiencing APAC? across, growth. That's then whether any guys rates guys couple seeing Got helpful. or quarters it's America terms And of it. you you changes stronger competition

Roni Al-Dor

the the In I form, something competition years, Not the in difficult. leading position on the in is we're dramatically. are not as In much think last leading stronger we few -- life several workers' the products, in and we reinsurance, have a position. we see the

are in we on is the area North the America, or Killen like is I players, seeing America and think majority all the but local RGA the or and it's time North in so or P&C is and different around rest also competition Guidewire company is that more between Asia. many from Europe, all local

more All is even So was P&C. better past. competition the on it in position or the less the Sapiens the same rest more in or than

Operator

of Gogolev The from Alexei next question is JPMorgan.

Alexei Gogolev

saying there about on recall wondering end the of are you're was number? number were could you I that if XXX customers Any on the disclose of they seem to XXXX, update the customers that that on cloud. the at cloud,

Alex Zukerman

customer probably not the number, today. close additional to but We Probably do have XX-plus on it's the have as exact of cloud XXX.

Alexei Gogolev

Perfect.

would customers say ARR, of what ARR? you Now that you're able disclosing is and cloud the share be to

Roni Giladi

customers that are is ARR cloud. the of majority the vast on The

Alexei Gogolev

over to in also were North on you number seeing I And contribution perhaps about about ask grown year? I revenue how in America. the back North Any has in P&C Perfect. you $XX XXXX, update wanted million. it that that last America of or recall P&C is

Roni Giladi

Can you repeat Alexei. the question,

Alexei Gogolev

North P&C America. [indiscernible] and The in

Alex Zukerman

in America, it's categorize North difference. we X lines. P&C, the had we workers comp, also but We In have product

have Life. a company And then we we what it's we a the NPL, We co-site have think And acquired. that call we old. have it's very

of mentioned the more revenue. all in than terms what So you this of is

many slowing suite. of a complete so to this of our business And couple years develop It all to continue to grow. challenges based delivery was and down on product

suite, we Just acquired then years to digital -- reminder we [indiscernible] then system. integrate billing in our and the sorry, we quick and acquire many ourselves Adaptik, build core and

together done, more of go hope business see XX we signed year. year, back market. this all this We we last deals So and to to decided to the

Alexei Gogolev

Thank you, Alex.

America North if America clarify, to roughly than just North overall or level. is P&C So faster the same growing

Roni Giladi

region. providing than company We slightly are this overall the today normal at is life the by the higher not is growing P&C. company. But in product The overall

Operator

from The is next Reimer question of Chris Barclays.

Chris Reimer

the Congratulations most to could my XXXX want have of if relating already, questions Honestly, answered results. touch strategy. been the strong to you on I ask on but did

You I done you use little it different elaborate it what may if was of on play a with mentioned expanded you just already be how select more and from SIs? SIs. to how out you've the and could that, wondering expect

Roni Al-Dor

try to answer. will Okay. I

Second and business they product -- majority of cloud of implementation model are what our then most the some competitors services for we are our many, products. In delivery -- many doing decision SI. doing years doing and developing the cases, of we that and X. of today decision. with we But the now, in did a this not seriously We long sharing last like increased or some a right part are -- doing X they're the made

from with First, mentioned, competitors one. hired we senior not to the That's dedicated as a that and I partnership, came person she verr she's and else. the SI alone us somebody helping build

in with us now, see because we the who we our We for to product now investment. enough mature to it, to XX we limit the definition right SI. want is work we and are to is where in with are believe that want also And right to don't work partner SI put selection

plan don't all we all products. in territory it not the So to do

in we that higher also also consulting are clients things work not on doing has in them we general, didn't giving the I and that also It's that case, that the believe Exelon, by see they offer to customer And just because will we And give X:X. is he's Sapiens doing from the high you be in a need an tiers. we almost of As Sapiens the past. -- the overlap himself. information, help mentioned, this lot to the like are do when

So to work the local go people. on this SI that territory In we -- the example of with them. so business we doing work Sapiens we higher we the to because that decide the any work in in company, -- can [indiscernible] to an for are don't can to can case, and as don't see decision the but past, want to we is in And SI. we continue interesting And then in we are countries was do more to consider don't we France. every huge acquire with also acquire them not all part, world, the tiers. a to have And today shift can overlap

Chris Reimer

could Also, gross margin just if you expansion. touch on the

any previously. Given to the transition offerings, the you you think was SaaS mentioned change expect the to it margin? products gross I do

You segment. that in recurring XX% was noted it

Alex Zukerman

Yes.

we efficiency and are high time, value points the preproduction slight that going doing from of on the of The to to are maturity, the down.At the about on -- implementation subscription SaaS terms a going postproduction the revenue, increase coming the up revenue are in gross the margin mentioned. X% product all impact is we'll in increase company cost basis and we gross on onetime to due this we and we with in the in or The and shifting revenue, transition same XX margin blended revenue. time margin the preproduction going offshore implementation So offset the the about moving mentioned, Obviously, production that to down. some subscription the see implementation. able subscription that be gross the from services with thinking subscription lower to product X.X% is decrease to we improvement over

Operator

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

(XXX) X like XXX-XXXX. call (XXX) with you call to In statement. please go Cohen XXXX-XXX. ahead X X hours. this ask please I with Before ahead go a (XXX) her is And Cohen, like scheduled of would In your begin concluding in closing that I call call Ms. would statement, please the to Ms. replay to XXXXX. remind X to U.S., Israel, internationally, participants

Yaffa Cohen-Ifrah

in you answer New today. soon you for Please speaking We look joining Thank York and thank will note with Sapiens participate that Needham happy call the Conference Media and and the again on to in XX to May questions, forward XX are any for joining. and Yes. always you Technology Consumer City. follow-up

Operator

Fourth Corporation Conference Quarter participation. International Results Thank you Sapiens the XXXX Call. your for concludes This you. Thank

You ahead disconnect. go and may

Sapiens International (SPNS) 20 Feb 242023 Q4 Earnings call transcript