Q1 2020 Earnings Call
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Ladies and gentlemen, thank you for standing by welcome to the Sapiens International Corporation first quarter 2020 results Conference call.
At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.
Operator assistance during the conference. Please press Star Zero as a reminder, this conference is being recorded may 14th 2020.
With us on the line are Mr. Roni Al Dor, President and CEO Mr. Roni Giladi CFO.
Before I turn the call over to Mr. Roni Al Dor, I would like to remind participants that this conference call may contain projections or other forward looking statements and the safe Harbor provisions in the press release issued today also apply to the content of the call.
Sapiens expressly disclaims any obligation to update or revise any of these forward looking statements, whether because of future events and new information a change in its views or expectations or otherwise during the course of the call. Today, we will refer to non-GAAP financial measures reconciliation schedule showing GAAP versus non-GAAP results has been provided enterprise.
Yes release issued before the market open this morning.
A replay of this call will be available after the call on our Investor Relations section of the company's website or via the website link which is available in earning release that we published today.
As a reminder, the quarterly earnings release.
Before the market open this morning, and it has been posted on the company's website at Www Dot sapiens dotcom.
I will turn the call over to Roni Al Dor, President and CEO sapiens Roni. Thank you all per adult and thanks to everyone who is joining us today to review I will first quarter financial result.
I hope everyone is healthy unsafe or.
Well, we felt we sort of you'll have the quartile followed by an update on our business is only going to do we follow we submitted an overview of financial results and show outlook for the remainder of Twentytwenty.
Our first quarter performance reflects our continued focus on supporting our existing customers and closing fuel business.
We had it bolted to 17.9% Lebanon gold in the quarter increased operating margin by 80 basis point to 16.1%, both BNC in life and pension contributing to our.
Oh.
We maintained our momentum toward the end of the quarter.
Signing several new logos and you've been in late March appeal to covert Nitin outbreak south is.
Overall, covidien ideas had only slight impacting the first quarter as we play Otas performance, while adjusting our board store operations.
We won't globally, we sell a large customer base supporting them in to transition to remote woeful mobs and addressing the challenges they face in the transition.
The vast majority of sapiens employees had the tool to walk you more closely with delinquent inflows in foot soldier and guidelines in place.
As a result, our transition to walk from home format was relatively small.
I'm incredibly proud of my team hold Walt this uniques and challenging involvement and I would like to mention.
The fossil just love that our customer will do the two shifts to war remotely and come to you know they'll customer services and transformation project.
Today, most of all deliverable to our existing customer continues as planned.
And we see minimal impact you know revenue stream for existing customers.
Having said that we anticipate delay in the implementation of new customers Onboarding later in the or.
We see tree possible outcomes of new customers number one continuous plan entering big limits, we SaaS.
This is it fatigue step for them.
Number two entering blueprint as a starting point of the implementation.
Number three placing thinking they minimal on hold until that is less uncertainty from the Cobiz 19.
Again, the overall impact of delay or new business is not material.
As I mentioned, despite the call, we'd nitin outbreak, where the civil on new wins and go lives drilling the quartile.
We have expanded our ecosystem of partnerships you live, Illinois mutual life insurance, Joe sapiens fully like digital transformation projects.
The American insurer blends to deliver our life and pension offerings to optimize sales.
No business and provides a superior customer experience.
They fill physician medical at least attention group went life, we sapiens BNC offering on the cloud. This client selected our coal suite is volatile they'll technology and be resourceful emission slotted you to support the goal slotted you and nexgen customers.
It's a doxey from South Africa went live we say pence you'd be suite to offerings client no short term business insurance products.
Going to old business, we sell existing costs all base has always been a priority for sapiens.
We do see more and more closer than upsell opportunity across our portfolio.
In February wonderful do you want clients in South Africa went live we second SPNC suite.
The election will fall PNC solution follow the successful deployment for say pence flux in pension suites.
As I mentioned earlier, we see many more setting opportunity we sell existing customers. We have allow enjoying the retail on old investment in our life and pension policy administration business that include expansion into group life and improvement of overall technology stack of our life and pension suite.
As I mentioned in our previous owning course olefin penchant policy I mean solution was awarded the excellent a waterfall advanced technology in January in parallel we started to see growing interest you know life and pension solutions.
Following the copied 19, the life insurance markets, these or whether the boating spike in the central from your life policies, which we expect to accelerate fell a little bit monetization will flex and pension system, which has slowed down into different deals.
These royalties Olivia reflected in our growing pipeline for life and pension policies I mean.
Email.
The PMC, we continued to gain momentum globally in the first quartile.
We go oil shale with existing customer they expanded business, we saw us beyond coal.
To include digital insurance analytic and managed services.
We also have successful goal the adoption of cloud deployments, which give customer and most flexible deployment model.
I'm delighted to announce that we call the 100 custom of multiple differential in solution.
I've been central and solutions allows insurance to manage their entire rental fleet insurance contract and activities, which rich accounting and reporting functionality.
Sections decision is seeing continued expansion in insurance.
You can provide insurance carriers, we said platform to develop unique solution is complex business logic.
Okay no embracing the solution you do we sell policy I mean, all we sit standalone offerings.
Got such a decision in India hype cycle default.
Simple solution full risk and compliance decision management.
On the digital formed always since acquisition help us to expand our digital offerings and improve our competitive standing.
As you May recall in February we completed the acquisition of a gentleman base in shortage some core mall.
We started integrating oh operation on the sales team and they've already realized the benefits with larger market presence in Duff vision and expanded digital offerings that we can leverage.
In terms of service model, because all of our product we see an increased demand for managed services all managed services offering bolt tremendous value to our customer you only to cope igniting the platform allows carriers to focus on their business, while we take care of the operational palatable.
They'll technology.
We expect continued goals for this model services.
I'll now ecosystem, we have added several new partners.
Isn't up places integrated written geographic trees data in our PNC coal suites.
Slide softer help us to provide streamline billing claims marketing and customer experience communication solution to insurance.
Our investment in R&D provides continuing fulfillment costs of offering which is receiving recognition form leading industry experts.
Sense, we'll closely with leading industry analyses touches Gulf Nelson, Glenn Navarro, kind, SMH, which gives us confidence in our product roadmap for now and ill business focus.
The other lining goal priorities to match the insurance industry needs and trends both for market cartilage and all the offering perspective.
So I guess is well positioned to benefit for macro trends impacting our customer which include immigration from legacy system and adoption of digital capabilities.
The current business disruption related to cope with 19 highlights the need for legacy insurance company to modernize their platform. So they can import remote access an awful lot and offer digital services as well and maintain compliance and meet regulatory requirements Corbett lighting is.
Moving to be and accelerate all of the trends that began in the last few years.
Today more than ever it has become essential for Orkin is to increase did you sell capacity.
Today shopper expect quote insurance purchase and service delivery towards variety of digital China as this market shift we compare kettles smaller will be to come to complete their digital transformation.
From second as part of your we've optimized our modification to meet the new business reality.
Also partnership approach, we sell customer it's proven to be an advantage, especially these days in the last year, we have invested in developing and expanding our customer success executive team our data customer relation been beneficial aspect of our business model, especially in this challenging business involved.
And as we help customer address the new and unique challenges to coffee 19 emitter and this helped us to secure always recurrent revenue, while increasing sales we've seen our customer base.
The close relationship we enjoy we skus or give us meaning full knowledge of their business challenge unique operation any involvement in their team.
This connection to help us be highly accumulate no response to their needs and deliver for additional solution to enable their goals and success.
In fact, we are encouraging our customer success team to meet the demands from existing customer as we adopted the new normal Oh on operation, It's gone through some changes as well.
The global business involvement is rapidly falls in reaction to cope with 19.
And the agility spawns to sapiens team to these changes is increasing our digital engagement model.
As we look at the marketing in the context of covered 19, we believe the b to B sales and marketing we left to be Replens.
As a result, we are adjusting our marketing mix through digital channels.
Today as many industry events concerns or postponed got accelerating go digital marketing activities. We send you offering like digital educational session to all customer and prospect.
In the more from face to face meeting to information as each mutual events. We concludes more people from our team.
By bringing a bigger team into our customer and prospects until auction. We can provide more value will improve outcomes. We are increasing the frequency or have a face time engagement to virtual meeting, creating more touched launch with the market.
We already see the benefit of the action, we took despite the covidien lighting economy, new prospect and existing Paucek continue discussion and focusing in del engagements we sapiens.
Our priority remains executing our growth strategy for the remainder of Twentytwenty. We will continue to go where we have already landed and leverage our investments.
We remain focused on building a unified global platform of innovating digital insurance solution to advance our competitive position is one stop shop for insurance also we Cnn's products and services, we Sig business close organically and we say M&A, while we see further opportunity.
To increase operating efficiency and improving margins.
While there continues to be near term uncertainty for covered 90, we remain focused on execution, we've taken appropriate action to provide the necessary flexibility and operating efficiency, we seem to current sit consent.
Strong demand for all digital product combined we say higher to counter revenue and a solid balance sheet position us for success in this challenging involvement.
I'm confident that as the global economy recovers sub pence will emerge stronger and well position for continue goals.
I would like to turn the call over to our CFO Wanna get a D to provide more detail on our financial results. Please go head to only thank you Roni.
I will review the first quarter non-GAAP results, followed by comments on the balance sheet in cash flow.
And with our guidance for remainder of 2020.
Revenue in the first quartile of 2020 increased 17.9% to $90.5 million from $76.8 million into first quarter of 2019.
The organic revenue growth was 10%.
We did balance coming from the impact of the calculus and some grew more acquisitions.
Eliminating the guarantee theme park, our organic growth was 11%.
Our revenue in North America totaled $44.6 million, an increase of 16.8% compared to last year.
Revenue in Europe totaled $40.2 million up 25% increase compared to last year, mainly due to the last two acquisitions.
Revenue from North America, Europe, combined represent 94% of our business gross profit this quarter totaled $39.8 million compared to $33.1 million in the first quarter fast deal.
Gross margin increased to 44%.
43.1 person in the first quarter of last year.
Operational expenses R&D NFG in a including the investment from calculations on Google.
Remained consistent in this quarter, we the first quarter of 2018 of about 28% or far revenue.
Moving to operational profits.
Operating profit totaled $14.6 million this quarter compared to 11.8 million dollar in Q1 of 2018.
And $14.3 million in prior quarter.
Operating margin increased in the first quarter, 216.1%, an 80 basis points improvement from Q1 of 2019.
Eliminating the currency impacts our operating margin would have been 17% based on guarantee of Q1 of 2013 results.
Operating margin reduced slightly from Q4 2000 team to Q1 full of 2020 from 16.5% to 16.1%.
Well I really.
Due to lower operating margin of the acquired entities.
Which we intend to improve during the year.
Net income attributable to suspend shareholders for the quarter was $10.4 million compared to $8.4 million in the first quarter of last year.
Which reflect 24% growth.
EPS increased to 20 cents form 17 cents of last year.
Turning to our balance sheet.
As of March 31st we had cash and cash equivalents of $80 million.
In order to strengthen our balance sheet in response to cope with 19 pandemic, we took a long form commercial bank in the amount of 20 million dollar.
We think installment payment over the next two years.
This new loan, bringing our total debt to $80 million, all of which $60 million is spread over six years and $20 million over the next two years.
In the first quarter, we achieved $3.8 million in free cash flow.
Which is below our quarterly average due to significantly higher free cash flow in the fourth quarter of 2019.
The combined average free cash flow of the two quarters.
In line with our target quarterly free cash flow.
In spite of global impact of corporate 19th we are announcing a dividend of around $7 million or 14 cents finishes.
During the dividends reflects our continued confidence in our business, our ability to generate cash and our commitment to our shareholders.
The dividend will be payable on June 10, 2020 to the shareholders of record as of May 27th 2020.
In closing I, we'd like to turn to our guidance for 2020.
The global economy experienced significant disruption from covered 19.
And we have manage the pandemic effect.
Both our employees and our customers worldwide.
I'd say our business model has shown its strength under this new business environment.
First.
From an operational perspective, we are a software company, which fortunately allow us to reasonably begin to work from home today.
98% of for soccer fans worldwide employee base, you successfully working from home.
Gradually and carefully employees are starting to return to our offices.
Second.
From a business perspective, the six though we self insurance.
In essential business that must continue to manage risk.
Since the Leeville ecosystem solution for insurers induces assured customer stickiness.
As a result.
We have very high visibility ofer revenue stream from existing customers, which is almost 90% of our revenue.
These factors give us confidence for the man of the year.
That said, we faced some headwinds.
Macroeconomic uncertainty is impacting the diamond to close new business and commenced implementation.
As a result, we're revising our 2020 revenue guidance two new range of $368 million to 377 million dollar.
As compared to prior range of 377 million to 383 million.
Reflecting 2% reduction in the midpoint of the range.
The operational efficiency measures, we took to adjust of course to low revenue.
And our ability to do so across all departments differently.
Allow us to maintain 2020 operating margin guidance unchanged in the range of 16% to 16.5%.
We'd like now to turn the call back to one year, though for closing comments.
Only.
Thank you wanting the customer success team is doing an outstanding job, providing critical support to our customers globally, while our global sales team continued to be focus on signing new businesses in the new market conditions.
Our leadership team remained focus on delivery goals and margin expansion as we execute against our long term objective of improving shareholder value.
Cesspits is well positioned for success and growth I.
I would now like to close our prepared remarks and open call for questions operator.
Thank you.
Ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star channels, if you're using speaker equipment kindly lift your handset before passing the numbers. Please ask your question in a loud and clear for your questions will be fold any order.
They are received please standby volatile for your question.
The first question is from Mayank Tandon of Needham and company. Please go ahead.
Thank you Ronnie and Ronnie congrats on the quarter, a very impressive in the face of this global pandemic. So I wanted to its first start with just the shift to cloud Ronny I think you said that you think this could be up potential catalyst I'm. Just wondering how are you addressing the sales challenges in a virtual environment to be able to take it.
Manage off the opportunities in the market as more carriers start to really embrace the cloud.
Yes, Hi, Brian as you as you mentioned, they all digital and cloud can be more interesting at this time.
You know, we as a more than a 400 customer worldwide. So we are going to each of them, we sell well managed shall we say approaches including cloud.
And today, we are bringing more and more opportunity to this area so that definitely from the existing clients.
And they almost say most of our new prospects is also looking for cloud. So away. We did a lot of investment in the last few years and they we are ready.
Okay. So you haven't really had any challenges in terms of closing these deals and converting these opportunities.
Due to the virtual nature of the sales process, you've been able to navigate through that and still close at a pretty healthy rate is that so.
No in terms of closing deals as I mentioned in my.
Recall that we as a smelter lake adjustable clouds with.
Hey challenges say for a meaningful getting more pipeline deals that we have on the table lead say, okay, sometimes we have delayed but it's not related to the cloud.
Got it Okay I wanted to just shifting gears to the model or maybe.
Ron if you could comment on the trajectory of solid revenue growth and margins.
Changes because of the pandemic or do you think it's going to you. Following the same bus seasonal pattern that we've seen historically.
On both topline and the margin front.
Hi, My on said this is the only G.A. I think this time our business model showed strength.
We are selling core system solution to insurance carrier and as a very high visibility and stickiness, which is very important at this time for very long period.
This is the core system solution and how our customer under business.
So in terms of our revenue every year, we are entering about 90% of the dealer coming from existing customers. So this is implementation that started from last year and a customer post go live we see minimal impact the due to these pandemic on this level, yes, some upside and even downside in this.
Area, we are focused on on customer success them to be able to do cross sold to existing customers because it's easier in these days.
In the sales cycle as already mentioned, we see longer time to close the deal although beginning of the or even in March and if we sign new opportunity. We see some delay in people taking decision in closing the deal some of them signing going to blueprint and then put this in hold so we see some delays so we'll see.
Being more revenue from existing slightly less from new customers and this is the reason for the change in the guidance.
If we look at organically we are expecting to go this year about 9% and on top of that there that we should eliminate a so this is the guidance that we show in terms of profitability, we are able to.
To adjust our cost structure. According to the revenue level and this is what we did the immediately when this they started and as you can see we see this a two to area. The first one is the vendor that we're working with them for example, a van their training fly the.
All of the expenses on facility will be able to monitor and news and in the terms of the employee.
We adjust the employees to the revenue level. So if we have some slowdown in revenue, we do some fleas and hiring and those will be unable to politico profitability and this is the reason we've been able to remain our profitability level between 16 to 16.5 unchanged and we started the or even with 16.1 for.
So overall I would say the business models. They continue and we look forward to it yes, there was some slowdown due as pandemic, but overall statism.
Got it and then just very final question here from my perspective, a lot of the companies that have large delivery hubs in India have had supply constraints just because of the work from home ships. It doesn't seem like that disrupted your model could you just comment on how you address those challenges if there were challenges that you faced.
On the Lockdown has announced in India in late March Thank you.
As we started the meat cheese and to do some testing.
Working from home for the entire company globally.
Basically for three days several of the company globally went to walk on the home and we measure. If we are capable of these are we missing laptops firewall and all of that.
And basically we've been able to do the successfully and work from home as I mentioned, a 98% of the employee are working from home.
Got it in India, we had some concern the reason is not our officers of the employee.
Infrastructure that exist in India is a country, but as of now we see that this is working well, we'll be being able to.
To provide services a in terms of delivery and other than the two internal into August and low. So currently we do not see any impact as of today. We hope to continue also in the future.
Excellent. Thank you so much.
Thank you Mike.
Next question is from Boston story of William Blair. Please go ahead.
Hey, guys. Thanks for taking my question I'm glad you're all lost safe and well.
I guess I wanted to touch a little bit on first of all what you're seeing with the existing customer deployments. So obviously.
Think about existing customers rollout implementation.
In late March early April did you see was there a pause maybe that's picked up was that people sort of reevaluating pacing of deliverables. That's changed just some color what you've seen.
That might have happened in the last couple of March early April and sort of now.
Say four weeks later sort of what that trend looks like.
Hi, Brian there I will take this.
The 15% of substance revenues coming from customer that we signed the last deal and right now.
Being in the middle or early stage, so end of the stage of the implementation of ecosystem solution.
In the company we are monitoring this area basically we are monitoring all the key accounts and major revenue level and we put also attention into this.
We thought that there will be three opportunities of three options to them to Google either continue as usual all to postpone the implementation to a logo period, which mean slightly revenue this year move into next deal.
Oh throughput.
I think in freeze as of today and we are already two months into this we do not the even one customer the top implementation all the customer continue I must say that there is potentially some discussion on extending the time, but not putting the entire project in freeze with relative situation like this.
So overall small impact the most material and again this represent about 50% of our revenue driven.
So let me just drill down a little bit so when you look at the guidance Ronnie.
You got the potential for extending the timelines for these projects have you built that in or how much we built that into the guidance today I understand the new logos, we'll be talking about except for everybody, especially for complex kind of mission critical systems, but but for the existing guys. How much of you sort of thought about building that into guidance.
Basically when risk analysis of the projects that are going yeah, we factor some delay look but the real one but some delay the revenue will we see from 2019 2020, but as I mentioned earlier we.
We are now extending or increasing the team of customer success, we see right now both unity and notably local community. We are doing so of increasing the revenue. This customer of the post go live and can consume from US additional services only mentioned digital solution.
Offshore capability that other companies cannot fulfill so we are compensating these with existing customer that both go live with additional services that we can offer.
We factor leasing elevated.
Got it got it got it and then I'll jump onto the life and annuities the reinsurance business.
If I look at that.
You sort of thought about.
You know that business to be stable to flat, but you've now had some wins given the investment aside I guess as we think about life and annuities, how does that leverage the growth initiatives.
This implied growth. This year do you think that actually some of the growth. This year. What do you think that's more like 2021 2022 of that plays out.
I think we so already shifting the life.
Area in terms of.
Golf, we already started these say last year, we win some deals.
I can say right now that we have also some opportunity nice opportunity that we are working on.
Q1 was go for life.
More on the European side left on the USA side, but overall the entire life is slightly going single digit but going.
Gotcha Gotcha, one last what probably you've talked about sort of this shift to managed services.
Cloud, but historically you said, there's been very little interest in cloud, So I'd love to understand sort of not not this year, maybe but in the next two to three years how big.
Excuse me.
How big do you think the managed services business could be as a percentage of revenue and obviously, it's a very nice recurrent piece and then one of gross margins that business like long.
And today.
We do not have significant amount of managed services less cloud a revenue, but I would say that all the deal that we are signing I would say majority of them are managed services less a cloud opportunity. So think about this 500 customer we are signing let's say 30 40, new deals every year. This is the pieces.
Moving to cloud plus a managed services.
They can go to let's say, 15%, 20% less in several years not now.
In terms of profitability in the initial days, it's a cost us Mo, but the beauty of this these great additional stickiness and higher profitability, let's say you need one bill to green going forwards.
Thank you guys I appreciate that and I'm stay safe. Thank you. Thank you for them.
The next question is from Bryan Bergin of Cowen. Please go ahead.
Hi, Thanks.
Ill.
I wanted to ask if you can give some comments on client behavior that you're seeing based on a customer size I'm curious, if you're having different conversations or seeing different priorities at some of the larger insurance organizations versus the traditional base and a lower tiers.
Hi, this is only a.
We don't in the behavior will form the customer or can be different so each one of them a I think they remain a focus right now for the from the company because some of that in production is make sure that we are able to maintain them make it we can walk remotely.
And we can add more values are looking for for their transformation project that we as the main choline cheese in there a work from home mainly in Europe, because most of on client in us like a lot to work from home. The does it feel customer knew this is relatively new for them and also knew.
For our employees from the rest of the world.
But we don't.
See any big changes on a will they really want to invest for show they everything around digital and digital enable and this is something that's interesting to all of our customer.
Okay.
And then as we think about the progress here over the next couple of quarters do you expect to see the June quarter as a low point build from there from a growth standpoint, or do you expect it to be relatively even as you go through the balance of there.
Hi, this is a audiology.
I think if we look at the yearly guidance.
We are still focusing golf area.
As I mentioned earlier, it's about a 9%.
We are planning to go up quarter over quarter steady state the new layers of building on top of each time. So we do not have any drop we are going to continue adding additional lay off revenue quarter over quarter.
Okay. That's helpful and as last one for you here as the current environment changed.
Moving around capital allocation as it relates to M&A, obviously have the dividend announcement here I'm just curious on M&A front.
Anything you're seeing our I'm commentary on pipeline and the valuations you may be saying.
Hi. This is the only a M&A is part of our strategy. So we didn't stop looking into M&A.
Yes, we are looking it's not be companies were looking to medium to small size company to mitigate the race. We understand that also the due diligence process would it be remotely. So we are a conscious about this and we make show that we reduced the risk as much as possible as.
We are looking to do M&A, we think the devaluation will go down we think that the private companies, though still did not they just fully the change in devaluation is we'll take months to three in order to adjust and there may be more realistic in terms of valuation and we will be ready as we mentioned earlier.
So we took a lot of $20 million, mainly as a these pandemics started to be able to execute when we find the right opportunity.
All right. Thank you.
Thank you.
The next question is from Taffy Rosner of Barclays. Please go ahead.
Hey, guys. Thanks for taking my questions most of them I've been answered I guess, what can I have just a final one on the guidance you gave a lot of color.
If I, putting all together what you've said its course me if I'm wrong, but it sounds like.
Most of revenues have been recurring and therefore.
The decrease in guidance reflect to some investment being delayed by some of your clients. Now however, if I look at the long term.
The current situation as as bring awareness to more and more insurance company and the need for them to digitize their solution. So I guess looking into.
2020, and 2021 together.
Would you say that the outlook now is better than what do you watch couple of months ago, driven by the increase in potential new contracts on the Roche.
I see a savi this is a already.
Jim I think the outlook is more relaxed the things in the early days its was very much concern and right now is little bit company, releasing the restriction.
We'd like to give some color I think on you mentioned do say when he talked the digital is becoming more and more a demand from our customer recently, we acquired company in Germany, Some cool move and we see higher demand than we expected when we quote wake while these companies. So we see revenue there.
Our expectation because of the good utilization than they are supporting us in the revenue growth.
South in dark and potentially outside of their.
Andrew.
The golf way that we are seeing right now is about a 9% of course, if the pandemic will continue for very long time. This will help us that because it will be Italy will not allow us to close more deal when we talk to analysts they are saying thats. Once this over a lot of company that Theyve legacy solution.
We quickly there will be solution in order to move to a modern technology, because the say environment do not say, allowing easily to work from home.
So the environment the macro will remain the same let's say after away. We are out of this if pandemic, but if it will stay for a long ago for sure do will be impactful.
Great. Thank you are on the and congrats on the strong results.
Thank you. Thank you.
If there any additional questions. Please press star one if you wish to cancel your request. Please press star to please standby we pull from our question.
There are no further questions at this time before I ask Mr. outdoor to go ahead with his closing statement I would like to remind participants that a replay of this call is scheduled to begin in two hours.
And the U.S. Please call 183 to 6931 zero in Israel. Please call 039 to 559 to five and internationally. Please call nine seven to three nine to 559 to five.
Mr. Outdoor would you like to meet your concluding statements.
Yes. Thank you to operate totaling 10-Q, two albeit a participant to join US today, it's a good day.
Thank you. This concludes the sapiens International Corporation first quarter 2020 results Conference call. Thank you for your participation you May go ahead and disconnect.
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