Sapiens International Corporation N.V. SPNS shares are trading lower after the company reported third-quarter results.
Revenue rose 4.8% year over year to $137.0 million, missing the consensus of $140.07 million. Revenue growth was led by 7.1% growth in our European region, 1.7% growth in North America and 6.6% growth in ROW regions.
Adjusted operating income grew 4.3% to $25.1 million, with margin contraction of 10 bps to 18.3%. Adjusted EPS of $0.37 came below the consensus of $0.38.
Roni Al-Dor, President and CEO of Sapiens, stated, “Revenue fell short of our targets in the third quarter, and the challenges we encountered are expected to impact revenue in the fourth quarter.”
As of September 30, cash and cash equivalent stood at $185.95 million.
Outlook: The company adjusted 2024 non-GAAP revenue guidance to $541 million – $546 million (vs. consensus of $552.69 million), down 1.6% at the midpoint from the previous $550 million – $555 million range.
However, Sapiens expects non-GAAP operating margin to be within its guidance range at 18.2% (prior view: 18.1% – 18.5%).
For 2025, the company projects low single-digit revenue growth.
Price Action: SPNS shares are down 26% at $29.19 at the last check Monday.
Photo via Shutterstock
Read Next:
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
