SPNS - Earnings call transcript Q4 2024 | Sapiens International Corporation N.V.

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Operator

Welcome to Sapiens International Corporation's 2024 Fourth Quarter Financial Results Call. [Operator Instructions] It is now my pleasure to introduce your host, Yaffa Cohen-Ifrah, Chief Marketing Officer and Head of Investor Relations. Thank you. Yaffa, you may now begin.

Yaffa Cohen-Ifrah

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

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

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

Roni Al-Dor

Sapiens for us for Call. Quarter and Fourth XXXX you everyone, Earnings thank joining morning, Good today

last increase X.X% a million, to $XXX was QX in revenue year. Our compared

impact across over across Life In expansion with and XX execution quarter P&C. and customers. solid XX in X, XXXX, we with XXXX, new platform. our customers key our reflecting showcased deals platform globally, continued platform core signed closed existing the regions businesses. and deals our the in existing we of of deals new successfully Since signed we Life X our quarter of insurance positive insurance launch and June Overall, This

existing a to cloud, see transition cloud Cloud, XXX to to with and the continue customers the year potential ending great of the We accelerate a customers transition. on the we Sapiens total

our Let's regional performance. into down drill

North promised, in America growth XXXX. our delivered as businesses robust First,

closed During remain and insurance innovate trust wins we X them wins QX, customers. competitive. enabling and These to new Sapiens existing business with in transformation, reinforce drive to

Our application. and to and go-live business expand after the few our upgrade continued Annuity businesses in quarter a North successful for Life America

award in reinforcing is our XCelent for leadership solutions. grow of insurers growth that We the for investment Life America, to new for logos. businesses empower commitment streamline for pipeline reaching underwriting awards These historical by time also Base honored our Life product Celent. The in We Customer and North XXXX to levels. Recognizing processes the UnderwritingPro innovation, to North been Sapiens and superior has customer continue areas received Annuities robust, with and Sapiens' achieve consecutive one Life outcomes. driver, Support and recognize our solution America their for third key our exceptional

leading of entire upgrading over Suite, example We our the completed America the BillingPro, specialty art discuss needs, flood including casualty go-live team XXXX, for in insurance solution solution upselling. provider enables America in CoreSuite to fine switch In production. P&C seeing in This P&C live of already for QX PolicyPro their property of me Let a North with upgrades application projects customer how went and agency, platform on our of ClaimsPro core and Overall, a XXXX. underwriting claims. Policy and insurance billing customers additional complementing this and is an XX year. North

platform release, which functional includes of upgrade, improvement the and significant cloud CoreSuite transformation project In North businesses capabilities which Data enhance additional includes upgrading platform across that our Sapiens completed latest North of P&C monitoring, for several to released early provide be improvements platform for provide in growth XXXX, America carriers to integration advanced to to customers insurance operational with help our specialty our of Additionally, driving digital and will platforms risk will launch offering. America. easy-to-use invest solution These PolicyPro increased with strategy enables integration upgrades technology in automation. market automation This of that we enhance for P&C, continued the North we competitive and distribution Suite agent product enable execute quarter efficiency, and XX.X set X to our and data XXXX. enhancements our aligns Tier go-to-market Insurtech X, with to and a position The and and analytics. P&C both in partners. connection AI Sapiens enhancement consumer the the version and which Digital with Suite our America

deals to of P&C across Life rest customers as QX, and we Europe XX Europe well the as logos with the Moving in and In the to and new of signed existing the rest world. world.

demand with We growing across European Edit rest Life There ReinsuranceMaster. solution tiers. and is platforms have as go-live market successful Suite, for Suite, CoreSuite the projects solutions pipeline. Sapiens' remains all SaaS robust of evidenced lines world, Africa, the by and Tia for for a and had includes and our several APAC demand customers continued which Solution, our South the In

efficiency the the base both the in this year-end. expansion we been a decades, a and customer experiencing closed to investments. Europe first enterprise-wide our to to we the Data remains despite go-live few momentum our and in significant strategy user this demand the leveraging an A solution demand by a Sapiens SaaS This customer with experience.Â In P&C Tier-X migrated long-standing in and this in of also want Microsoft for AI highlight data is on market the experience. Africa. nearly Sapiens' win highlight the comments strong sales platform Philippines. for a the customer and momentum operational P&C cloud important existing enhancing country.Â Another enhance in insurer customers and Having We for rest to leading and P&C, platform with Life extended leverage AI-driven deal improve agreement, quarter, the Suite a new migrated world. cloud solutions X security with Sapiens to Cloud new and cycle leading a who with view its is wins deals consolidated while want Nordic Sapiens continue customer I evidenced deal new and In APAC, the as region quarter, including with strong signed Pension. In fourth our Sapiens for productivity in close performance are and overall at increasingly to elevate few as increasing improved clients the

deal Europe. platform new a signed we quarter, in This

demand to completed uplift P&C Sapiens, see also Sapiens coming region. indicating are in the Reinsurance. tends the demand RFPs pipeline. a several larger.Â Moving strong Europe market as We Life growing strong and for platform Life as extended offset in to in our more South significant deal and The Africa.Â Although demonstrated We go-lives the market size remains across than by the be cycle sales the much to

existing quarter, North continue ReinsuranceMaster in America, ReinsurancePro and and we customers. And and expand with We new our in to closed APAC this with deals new Europe, solutions.

specialized market its operations. London Sapiens' services is modernize European insurer supporting underwriting North London utilize market to market ReinsuranceMaster. couple. A messages highly London insurance P&C a an selected highlight reporting market commercial major insurer a In customer, to me the featured for ReinsuranceMaster insurance innovative global This Sapiens leading selected first existing operational and ReinsuranceMaster. provider Sapiens London and America, for Let investment

Lastly, the we ReinsuranceMaster Philippines. in closed the deal

rolled out casualty Accelerator, On underwriting Underwriting the product a we significantly the quarter, straight-through front, and Sapiens property first improve for to solution efficiency processing insurers. designed in cutting-edge the and Decision enhance

mentioned platform Sapiens in specializes business domain. insurance AI-based June meeting our or I earlier, in unique The launched requirements platform vertical of we As the each XXXX.

and data are into processing capabilities drive decision-making, across underwriting, integrating automation, core insurers.Â We and claims efficiency risk to streamline accurate enhance improve AI embedding assessment, greater and We and our smarter by digital solutions AI-driven our system. enable for more core

operational optimize data-driven workflows, customer and Sapiens' will and in enhance the modernize provide SaaS AI-powered Intelligent advanced ahead Our learning and to machine and help analytics and solution improvement, operational actionable data stay leverages agility. their industry. experience insight, digital insurers solution

power are within AI of of operations. generative to connecting the AI using our drive focused comprehensive vision business on We

release focus, and latest incorporating Our demonstrates both enable this powerful decision-making. platform efficiency AI capabilities that

delivers risk Claim GenAI suite assessment which our brokers, platform of from a to manage and GenAI tasks. XXX-degree digital learning combining underwriters for benefit exponentially Customer, handlers summarized capabilities, a portal Copilot view amplify models and customers agents ability their Know QA, predictions. for For strong of machine and offering our and prospects, and Your a

using later rules and the automated Additionally, documents of and we and business for configuration, trees have enabling data creation streamlined via GenAI mapping rules decision AI.

we across map a our further AI and experience entire the users. Looking to holistic create Gen deliver ahead, reached a the road enhancing have platform, Copilot value we to

Our Microsoft digital our strategic of business availability our capabilities that instrumental can in differentiates transformation development AI insurance the platform's shape and marketplace. leverage driving their Sapiens them technology solution with Microsoft partnership agility SaaS announced industry. In the innovation the SaaS product application Microsoft XXXX, drive their Azure purchase with in Sapiens in strategic. enabling is to we January customers Azure and to Azure reliability solution, cutting-edge scalability,

expanding insurers internal model emerging integrators. go-to-market system that in integrators. doors previously and commitment its delivery. open SI collaboration progress our for process our an this support and channel and a reach, with to quarter XXXX, pipeline. In our to market to our Sapiens opportunity This make Sapiens Moving to system beyond were continued is formalized alignment

North globally to the meaningful in SI opportunities. XXXX, we Sapiens Deloitte in SI of As its America. with partnership result, existing strengthen with in a a with involved significant platform continued partner. LTIMindtree America with number North live deals Also, closed a were

We also regional other developed and a [indiscernible], with SI. Cognizant new partnership

channel top initiative excited deliver, growing are outcomes SI a about continue our relationship this XXXX. valuable and as in We to the develop we'll strategic

up, focus share Before wrap XXXX. for I to would our like I

our XXXX teams of for to following achieve our resources. a and beyond, and building our base pipeline expanding commitment and our the across in we commitment goals remains this all solid. have and Our markets client support key To robust areas focus identified

and AI First, advanced capabilities. platform innovation

our We client will to platform, growth in and success continue improve sustainable drive on invest and Intelligent position. competitive innovation focusing globally to insurance aims Sapiens'

into to AI integrating to integrate to will tools our our customer we into our addition, costs. implementation operation.Â In delivery of are AI reduce and various actively process offering implementational aspects We continue enhance

to customers. existing especially for our Sapiens of product. significant increasing customers expand presents existing have one only current growth, most with customers that Cross-selling to opportunity a cross-sell considering Second,

our We complement have additional their identifying specific done digital, needs and can existing the cross-selling for and decision extensive to targeting We analysis that to data, of solutions our application, AI opportunity solution. core introduce business validate customer. solution the by them

and maximize team our our We are management also relationship and our client increasing across team our investment by within account extends the acquiring drive cycle partner base customer achieve effort shorter new to deeper entire faster management our in has This expanding allow us compared building growth relationships, divisions. new growth. client customers, and unlock to revenue to sales opportunities. customer a Cross-selling value

solution model. customers accelerate SaaS enhance cloud opportunity unique in as we customer not AI-driven our capabilities adoption growth through accelerating in to scalable Four, drive our This SaaS benefit for aim offer exclusive value such Third, available to adoption are that market-leading and a and powerful we efficient are now transition older and legacy presents is will cloud a and differentiation. versions. as as into Life growth sustained platform, supports offerings.Â Sapient components our a our new shift infrastructure. provide have us and modernize a creation. our system existing significant relationship We seamlessly already life significant and market a competitive for demand strong gaining transformation seek businesses and momentum. our annuities globally. integrated to market position advantage leader, This strong opportunity featuring The solution for life Flight a as long-term insurers This pension

models financial the pipeline, developing SI is enablement, globally. support integrator with by There to momentum a XXXX, building a certification growth be is And joint maturing across call of Sapiens focus over on products. partnership and progress, increased of in among formalizing key more delivering details pipeline territories. focus all our committed CFO the quarter out our support highest objective we our to turn provide operational strategy. will long-term North I QX capitalize continue remain plan and our marked in the there on to an new growth region. In the we to system will In lastly, training, delivery the our Our to continue the model America to all and to which summary, growth partners XXXX be currently will on another performance.

Roni Giladi

In XXXX by guidance totaled and fourth increase results, on begin quarter $XXX the to non-GAAP full reviewing Thank the cash you, Roni. an our flow. year will of fourth sheet commentary the revenue up million was the I year of with we my and had compared for revenue. of XXXX. Revenue we fourth will wrap balance quarter currency in followed headwind the the XXXX. I of QX for currency $XXX million, updated in by X.X% $X comments basis, in higher full QX and XXXX despite the in compared were to quarter XXXX. Reported guidance quarter than with revenues our a the reported provided constant On XXXX, QX. line QX QX last headwind QX currency million

XXXX. that X.X% last of revenue revenue our $XX by year. X.X% reached segment $XXX software postproduction our annualized QX a than growth to million revenues. XXXX with recurring and $XX XXXX, For in the revenue compared overall the in X.X% recurring compared this reoccurring total increased period.Â Our from want revenues reoccurring higher XX.X% recurring of million, represent services ARR increase was QX revenue, million growth reflecting higher to reported a to during same increase products I emphasize of and in last Growth QX of from reported that and revenue, total increase of year-over-year QX reoccurring shows line reflecting recurring year, strategy mix the than to to

XXXX. ratio the Net of margin XXXX gross a in higher of to similar in XXXX. points. revenue representing on XXXX. million primarily total XXX was profit quarter million Moving gross The in of higher $XX revenue the million, attributable of quarter share margin ended revenue up margin increase to the results in XXXX, with QX XX, months an from XXXX, $XX Gross to million XX.X% Sapiens' million updated fourth income to in compared full-year gross due XX currency XXXX basis was for the in totaled was year.Â Turning of per to our gross and shareholders reoccurring QX from for now one-time in XX.X% up revenues provided in We X.X% to fourth of of the which $XXX guidance, was increase in X.X% for QX XXXX the recurring of XXXX. $X.XX up compared December the QX. compared to the was $X.XX margin in last a This quarter quarter $XX met headwind despite $XX $XXX QX fourth the Operating $XX was million, we quarter than QX to profitability. million, quarter happened Earnings profit XXXX. full-year from that of fourth implementation. of

a Turning to million growth. XX.X% $XXX services reoccurring reoccurring total products from in $XXX totaled XXXX, revenue XX% revenue revenue software represents mix. compared in postproduction In our to recurring and XXXX, recurring $XX or This million million of and increase XXXX. revenue

North America of Moving to revenue. in geographic breakdown. Revenue represents total XX%

the North We our in improvement of customer growth America, no are basis X.X% XX.X%. the an the than evidenced XX.X% total fact and revenue the while top of from derived rest Europe, the million increased customers reason in than more profit and for profit represents The X.X% do Growth was revenue and a by representing gross year represent rest total X% improved X.X% the revenue margin offshore as margin by increased to of revenue.Â Gross of ratio and XX of ratio. in XX% have represents in European reoccurring customer world with main XXXX, better of world. by points revenue. recurring not gross last Our X% XXXX $XX XX of concentration the that in

shareholders decision guidance. $XX the $XX attributable to our year by with million diluted which is a X.X% was profit The basis Earnings sales of margin per and our $X.XX or gross beginning margin percentage income versus from in increased marketing in in to X.X%. operating and million, declined in XXXX. basis XXXX XX.X%, up increase from to investment the Net due million dollars margin increase revenue. by was Sapiens' $X.XX, was in XX strategic XXXX of up XX.X% XXXX. the $X absolute operating line total share in points, Despite Our operating of points XX at as for our

balance Turning now sheet. our to

we of $XX cash free $XX generated payment $XX an cash totaling flow million compared and January debt of final we flow. $XXX As paid million. of in cash short-term January the XXXX. million. is had million for million $XX XXXX, deposits we free adjusted equivalents scheduled In XX, QX to annual of and $XX of and debenture December and XXXX.Â Turning XXXX, million XXXX, last to adjusted QX In of coupon The cash

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

growth profit profit is the of versus implies to impact USA due of currency on $XX euro X.X%. versus a shekel growth Non-GAAP Israeli be constant an the and at pound of dollar range dollar. would On basis, the mainly rate, XX% Our Revenues. non-GAAP the of of in guidance million the million growth net cash operating to and and exchange our business the range representing introduce negative strengthening net million, operating million to with the rate margin and USA midpoint. X% operating XX.X%. the income, Non-GAAP constant weakened me versus flow.Â Let by midpoint. $XXX converting adjusted revenue, euro and pound, to XXXX. our have the USA assumes model headwind X%, currency our a for flow which to revenue X.X% free on represents mainly of of now a cash of On This our would margin at profit operating Profit. XX.X% free currency proving weakening $XXX be profit dollar. the our $XXX in The the higher operating respectively,

factors earnings and North our XXXX QX macroeconomic P&C elaborate SaaS, to In guidance. me uncertainty. core impacting the growth. we America and XXXX discussed XXXX XXXX impacting Transition Let calls, the on factors in

We We impact transition transition existing are the a mentioned relate contracts of and growth of that mentioned an expected SaaS. as similar these our seeing Roni Core SaaS will call positive in his strategic early America. to investment new P&C The now provide headwind. anticipate of to variables as North the signing with our a estimated an create to on and XXXX, QX platform outlook. update they we Al-Dor, on we customers to the already growth P&C in earnings remarks in are X% X% in revenue indicators. in making

effort continues to factors and in can, the expect global can will across in impact America, provide uncertainty control which persist revenue XXXX including in and stabilize. macroeconomic and beyond. Those We turn, East to do delay contributions regions. factors growth. new Macroeconomic Middle not when starting these to signing they this cannot predict markets, our lead North We other deals,

closing As pace impact momentum. revenue that accelerate this reiterate of trajectory. timing focused our Even we acquisition on XXXX, result, this one, late strong a I realization we emerged mentioned, to growth factors of our growth. XXXX in X beyond To and accelerating overall will XXXX, growth XXXX. affects those the our we globally. with closing growth of logo steps: expanding following in want deal momentum, closing new deal strong in as our that XXXX, In taking a remain the QX had the are

partnership. with our we sales We insurance America existing Since deepening new X initiative through are customers. with our logos integrators. our relationship cross-sell signed Driving opportunities and in with comprehensive team, our SI, work we system started strengthening to SI platform introducing North

and our of we as are last customers advancing migrated end XXXX. grew customers ARR X cross-selling followed subscription. was XX% years. additional years, and insurance and applications customers migrations transition XX% in cloud enabler growth the commitment number to our the cloud, in this to the over customer cross-sell our customers our of to reinforcing an to on and The of cloud by focused year. We compared total to coming of are to Currently, within accelerating cloud value. existing XXXX, of the total on In XX platform long-term successfully cloud we our XXXX, higher the key and next XXX, X reach ratio. leveraging our expanding at and team In customers additional by the goal pre-integrated Three, maximize is XXXX a XX% are momentum

will call reiterate sustainable successful the to profitability. call back now back Roni? remain I handing the Before on want Roni execution turn prioritizing that we Al-Dor, of focused to growth to strategy, our Al-Dor. Roni and I

Roni Al-Dor

Roni. reflecting progress Thank a quarter the delivered you, fourth key markets. We across solid our

growth growth. long-term continued in remains our provider deliver and Our are position we Most of reinforce of as territories our a I trusted the and our I platform operator investments for committed to commitment insurance call a investors intelligent their of support across for driver all Sapiens. critical insurance growth want to our to now key thank importantly, our please team solutions. ask and excellence questions. global their ongoing for open for to will the

Operator

The instructions] [Operator Dylan of Becker from is Blair. question first William

Dylan Becker

of some you initiatives framework. with sticking the called Roni, cross-selling and XXXX Maybe out migration the of accelerating obviously kind is

on to to cloud X full-suite of a confidence initiatives, well. due how fuels that lot core more grow of as given approach continues seems to your the that kind ecosystem do I wall-to-wall, adoption the their with migrate, you touched platform in customers a kind adopt and of of wonder the platform. cloud of spend the those it to You kind vast of having integration more that more propensity the landing and customers of have

Roni Al-Dor

This feel Al. platform, cloud your the areas, comfortable. question the is about very and To Roni answer we in both

said, core potential on a we of our have application system, but is we also business We are also the well. as many, them. both migrating platform, for This as huge core

clients, this almost is standard. For the new

the our this At go, this and the are situation to future, many will to they is we going So, the not them ahead customer are in of to upgrade convince these it's existing, X with the but that plan we cloud. From have solutions. still for trying there to are are moment, opportunities the push us. XX% pushing,

Alex my for that's So to want Maybe add. side.

Alex Zukerman

transferring Alex. When existing cloud. Roni it the this customers what add we increased so from to existing to to So, again, the pace Dylan, customers, comes Roni on-prem is what of said, to reiterate said, just

This and the Our one the XX% to target. to X next reach plan continue that on is years. is focus level clear within

The and second the come -- missing find can to provide. customers is the allows to their us modular one customer existing solutions back we of platform the notion to our base that

lot and our see of it space connectivity not a the customer of a white is scale base means the within that and we from So, models there taking of us from usability economy platform, and them else, strong offering. of someone our and by those for part this is

So that stronger and on also side, go continue the also not plan base. there, that, we that. accounts, see encouraging side, lots at the to the but in after we to In product this are customer team to existing we and order is of them Sapiens interest facilitate looks increased on after the sales

Roni Giladi

X been Maybe year, able This transfer transfer us many We've that the being of momentum XX we to us confidence this also going sentence notion are do been on the one reaching opportunity. this forward. big see cloud. that. able with gives in gives also XX% us to accounts increasing we've existing into customers to this that more years. to We able customers of And

Dylan Becker

the pushing of the well. space over on a That how the we Life how now? be you're of modernization sense to that us side seems another that sounds several And faster years? Can you've to play dynamics, are notable that P&C to kind the of strength. seen really modernization can obviously, as some you maybe kind of last side the opportunity as Life Maybe on has seeing maybe play area relative trends give or for played out exciting look reconcile the out maybe out or back

Alex Zukerman

So, Alex this again. is

a seen -- strong we've emphasis the on drive So, into North replace the Life side. on X carriers the globally, of systems to also bit seen went Life modernization America, years this to on the strong is insurance happening rest market general. focus the Life in of X but modernization A a The and this space P&C P&C side. on to world. replacement parts what life in before and the the in process past the What in we've now into other

factors. to tendency tech-savvy. on that a requires a is we the of the the of be world, see Now combination competition strong One side. It's overall strong them Life digitalization the

the is stronger is insurance, on a interest leading platform with solution it the our strong part second for market. to individual that, strong combine rate, market side case, a volatile the into to customers. offering stand-alone perspective capabilities market, combined the a adoption The to provides differentiation this life holistic with the the them approach America all comes differentiation a the a inflation, because we to the our they platform of from managed needs notion several a market. This in North products of competition the also It's for the in as momentum the macroeconomics, compared stock a and that tick customers, on into and coming to great timing of as as individual the drive especially combine a basis the majority really boxes see we adoption great us

drives offering to with the the the macroeconomics market, we together have feel very strong we the combination have to strong that right Life, approach platform powerful a adoption feel we we So, opportunity of here. very, on the

Dylan Becker

last one one clarification, Maybe Roni for here. G

You revenue think But the the in on guys XXXX. given constant quarter business? how any and see ARR we post-production the and impact perspective from an gave in number 'XX currency out about in the constant strength sense currency to

Roni Giladi

ARR. the X.X% impacts add X.X% growing the the in the ARR We to quarter an X% lower the ARR you. faster. need total on or additional number, grew quarter exchange is Thank in this versus revenue. obviously Obviously, X%. We The constant

today. growth X.X% the company in So, ARR we are

to going And ago. what onwards. ARR looking like on obviously, are minute support And cloud, going a new base. do customers mentioned, transition all We to increase discussed will we and which on a forward, the subscription as to are XXXX, cloud ratio this a this the we going to automatically we'd 'XX the

these impact rate So, increase and the and the growth XX% will ARR growth both onwards. factors to of

Operator

question of next is Barclays. The from Chris Reimer

Chris Reimer

the been acquisitions in while M&A about anything you new pipeline guys. thinking it's been been since a had as you there's if and that, by wondering around seeing any was there's if I

your what's now environment wondering right you're Just in? given thinking on the that

Roni Giladi

M&A I and Alex Roni pursuing opportunity. will will our for are start maybe of is this Obviously, trends. part And continue. and therefore, growth we

X in main the any You ago in, reason of terms are in right M&A. The reasonable say, years X last are valuation. And valuation. to we now, a the was complete let's years, didn't X market we right,

are globe, for internal team have several across North we the pursuing that's We opportunities looking America and Europe. that, and

when small the of point in is for sometimes based the mentioning do at last final companies. until this both several M&A lost, acquisition had and on looking XXXX, also I at are the that P&C the We valuation, opportunity, unreasonable we Potentially confidence on the good least compete to can big this price are in complete opportunity, market, the one to opportunity to Life. We end we at that this And end year. was the again, in with we are engaged there to came to we I'm during are on competitors focusing European mid we to a XXXX show X. the really emphasize organization. us. looking and

execute. to in fully So, engaged opportunity this

do are have cash to We ready so. the and we

Operator

The next Alexey Gogolev of from JPMorgan. is question

Alexei Gogolev

be on was noticed the just customer, I And with G, XX.X% same now can versus to X% XX.X% used about concentration. in top XXXX. largest made elaborate if over represents sales. Roni I which you you the wondering of comment XX customer that

you large was dynamic there, the talk about reveal trends? customer maybe can what those So, maybe

Roni Giladi

have this customer. in customer any amazing of Roni. concentration. Obviously, one is there Alexei, think metrics And isn't terms we I of dependent

is only is in I As Sapiens. volume of mentioned, of but biggest total not last material yes, than of this customer terms X%, X%, slightly the year higher the

Going of XX% of XX%, than customer this to risk momentum same and top not forward, risk keep and X% level, see revenue. we less the the not are looking from for the this We from obviously, overall Sapiens' XX, overall. do any

Alexei Gogolev

And follow-up then Dylan's about on a cloud. question

And persuade Can accelerate Sapiens like customers hoping in of in So, to added customers to as what talk the XXX sort X looking I to pace in sounds are year? to to years. you've over cloud? Cloud another understood, and that the to order you're these you have carrots XX next add mind you the you about per migrate It sticks XXXX.

Roni Giladi

dive XX% Obviously, to Yes. from verticals. the XX% X you into basically But looks the lot. if figures, from we came a growth

all is The the ongoing first time. one that

deals Alex signing the that cloud and subscription. we all mentioned, on Roni are are new As

this by significant the is itself to total volume. contribute going percentage to So, amount of XX%

customers The push and less we slightly move to them, second over to XXX did XX. approaching is almost them that sold or we years. several ago, vertical the the year, that Last have years subscription/cloud are we we customers

factors these XX XX forward. increase bigger XX, subscription/cloud bigger to looking to growing and the adoption going and even are we for And is We speak. as

coming So, shifting customer from verticals, cloud. and existing X to one new

Alexei Gogolev

earlier you comment just Roni, a call. clarify the to on made And

the in total deals about XX has of maybe contribution you ARR to deals those and talk number So, XXXX, the could similar XXXX. size But to increased average year-over-year?

Roni Giladi

ARR in contribution them. is The than did early No, contribution ARR from slightly as the increasing but smaller the years, continue. signing the not as to we decrease, contribution we're the the is

every think number deals already ARR. less the had cross-sell we going continue the we higher But is that new forward. early to Again, of as are I we years, cross-sell we from deal signed than that in the signing cloud. in logo sometimes contribute and a

Alexei Gogolev

are mostly Life broadly in or or P&C in deals And equal? those

Roni Giladi

Across the board.

Operator

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

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

Yaffa Cohen-Ifrah

Thank our today. welcome us you We you. if have first to questions. you next joining quarter forward to look call results Thank discussing call. any earnings further We the contact on you our for

Operator

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

You may ahead go disconnect. and

Sapiens International (SPNS) 18 Feb 252024 Q4 Earnings call transcript