Q1 2025 Sapiens International Corp NV Earnings Call
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Operator: The call will begin short. Ladies and gentlemen, thank you for standing by. The conference will begin shortly.
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Speaker Change: Ladies and gentlemen, thank you for standing by the conference will begin shortly.
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Speaker Change: Welcome to Sapiens International Corporation, 2025, first quarter financial results call.
Yaffa Cohen Ifrach: Welcome to Sapiens International Corporation's 2025 First Quarter Financial Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
Speaker Change: At this time all participants are in a listen only mode.
Speaker Change: <unk> and answer session will follow the formal presentation.
Yaffa Cohen Ifrach: It is now my pleasure to introduce your host, Yaffa Cohen Ifrach, Chief Marketing Officer and Head of Investor Relations. Thank you, Yaffa. You may now begin.
Speaker Change: It is now my pleasure to introduce your host Jaco Corny Froth, Chief marketing officer, and head of Investor Relations.
Speaker Change: Thank you Yeah, you may now begin.
Yaffa Cohen Ifrach: Thank you, operator.
Speaker Change: Thank you operator, I want to welcome you to the Speaker's conference call to review, our first quarter of 2025 results with me on the call today are Mr.
Yaffa Cohen Ifrach: I want to welcome you to the Sapiens conference call to review our first quarter of 2025 review. With me on the call today are Mr. Roni Aldor, President and CEO, Mr. Roni Giladi, CFO, and Mr. Alex Zukerman, Chief Strategy Officer. Following the summary of the results, we will all be available to answer any questions.
Speaker Change: Roni Al Dor, President and CEO, Mr. One D CFO and Easter I, let you go Kurman Chief strategy Officer.
Speaker Change: Following the summary of the results we will all be available to answer any questions before start I would like to remind everyone that this conference call may contain projections or other forward looking statements.
Yaffa Cohen Ifrach: Before we start, I would like to remind everyone that this conference call may contain projections or other forward-looking statements. Safe harbor provision in the press release issued today also applied to the content of Statements expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its viewer expectations, or otherwise.
Speaker Change: It's horrible provision in the press release issued today also fly to the content of the call.
Speaker Change: Statements expressly disclaims any obligation to update or revise any of these forward looking statements, whether because of future events, new information it changed its view or expectations or otherwise.
Yaffa Cohen Ifrach: And on today's call, we will refer to the non-GAAP financial measure. The reconciliation of gap to non-gap results has been provided in our press release, which was issued before the market opened.
Speaker Change: On today's call, we will refer to the non-GAAP financial measures.
Speaker Change: A reconciliation of GAAP to non-GAAP results has been provided in our press release, which was issued before the market opened this morning.
Yaffa Cohen Ifrach: A replay of this call will be available after the call on our infrastructure relations section of the company website or via the website link which is available in the earning release we published today.
Speaker Change: A replay of this call will be available after the call on our interest relations section of the company website.
Speaker Change: The other website link which is available in the earnings release, we published to date.
Roni Aldor: I will now turn the call over to Roni Aldor, President and CEO of... Roni. Good morning everyone and thank you for joining us today for Sapiens first quarter 2025 earning calls. This quarter showcased solid operational execution across our key regions led by continued momentum in our life business with notable strength in North America. Demand is building for our solution, and we believe we are well positioned with robust portfolio to meet the evolving needs of our clients and capture new opportunity in the market.
Speaker Change: I'll now turn the call over to one year ago, President and CEO of sapiens Roni.
Speaker Change: Morning, everyone and thank you for joining us today for sapiens first quarter 'twenty to 'twenty five earning calls.
Speaker Change: This call till showcased solid operational execution across our key regions led by continued momentum in our life business.
Speaker Change: Notable thing in North America.
Speaker Change: Demand is building for a solution and we believe we are well position, we saw bus portfolio to meet the evolving needs of our clients and capture the opportunity in the market.
Roni Aldor: I would like to begin by discussing two exciting strategic M&A transactions that Sapiens recently announced. Sapiens has implemented a growth strategy that includes several levers to accelerate our businesses, an important one of which is acquisitions. Our approach is to explore strategic M&A opportunity and target that would assist Sapiens to reach its strategic objective, typically around the following areas. Adding complementary solution to our portfolio that strengthen our value proposition and adding new capabilities to our platform offering. Accelerate customer acquisition, attract top insurance talent, and drive scalable geographic expansion.
Speaker Change: Like to begin by discussing two exciting strategic M&A transaction that just happened recently announced.
Speaker Change: Second as implemented it goes thought your G that includes several I'll leave this to accelerate the whole business is an important one of which is acquisitions.
Speaker Change: Our board is to explore strategic M&A opportunities and targets that would assist sapiens to reach each strategic objectives. Typically is on the following areas, adding complementary solution to our portfolio.
Speaker Change: And our value proposition and adding new capabilities so platform offering.
Speaker Change: <unk> got some of the acquisition of trucked top insurance talent and driving.
Speaker Change: Scalable geographic expansion on.
Roni Aldor: On April 22nd, we announced the acquisition of Candela, a leading intelligent automation company serving blue chip life insurance client in APAC market. This acquisition enhances the capabilities of our live platform and expands our footprint in APAC. Candela offers an end-to-end smart insurance automation platform along with digital services and solutions. The company brings 23 customers to Sapiens, primarily in the rapidly growing markets of Singapore, Malaysia, Thailand, and Hong Kong, and South Africa. With an expanded physical presence in the region, we are better positioned to accelerate penetration gains in the APAC market. With nearly 30 years of deep industry expertise and teams of over 100 employees, Cantela's strong track record will serve as an important catalyst to support Sapiens' strategy in APAC, while providing innovating new capabilities to Sapiens' global customer base.
Speaker Change: Twenty-second, we announced the acquisition of Candela, leading intelligent automation company.
Speaker Change: Having really cheap life insurance client in a bad market.
Speaker Change: This acquisition enhances the capabilities of our lifeblood film and expands our footprint in APAC.
Speaker Change: And then Oh first and then two and smoked insurance information platform, along with digital services and solutions.
Speaker Change: The company brings 23 customers to sapiens by imaging in the rapidly growing markets of Singapore, Malaysia, Thailand, and Hong Kong and South Africa, we shouldn't expanded physical presence in the region, we are better positioned to accelerate penetration gains in the APAC market.
Speaker Change: With nearly 30 years of deep industry expertise and teams of over 100 employees can tell us on track to cold will serve as an important catalyst to support sapiens thought did you in APAC, while providing innovating new capabilities to sapiens global customer base.
Roni Aldor: Candela's solutions are complementary to Sapiens' life insurance platform, which we intend to leverage to enhance our life offering globally.
Speaker Change: And then a solution a complimentary to sapiens life insurance platform.
Speaker Change: Which we intend to leverage to enhance our life offering globally.
Roni Aldor: In addition to Candela, on April 28, we announced the acquisition of Advantage Go, a leading commercial insurance software provider specializing in underwriting warbant solutions for both London market and broader global specialty and commercial markets. This strategic acquisition significantly enhanced Sapiens' global P&C proposition, adding cutting-edge underwriting workbench capabilities that address one of the most critical challenges in the P&C industry today— managing, assessing, and writing risk more effectively. Our analysis shows that this market segment is rapidly growing across both North America and EMEA in correlation with insurers' need to improve their risk management. With Advantage Go, segments will expand across the London specialty market and other specialty hubs, such as Bermuda and Singapore, and in the specialty and commercial market across EMEA, APAC, and North America.
Speaker Change: <unk> two candela on that page 28, we announced the acquisition of advantage go a leading commercial insurance provider specializing in under I think Robyn solutions for both London market and bought a global specialty and commercial markets. This strategic acquisition significantly.
Speaker Change: And then sapiens global P&C pool position, they didn't think age underwriting woven capabilities.
Speaker Change: Today is one of the most critical challenges in the P&C industry today.
Speaker Change: Managing our sourcing and writing disease more effectively.
Speaker Change: Oh analysis shows that this market segment is rapidly growing because both North America, and EMEA and correlation we see insurers need to improve the risk management.
Speaker Change: He said vantage go save minutes will expand because the London specialty market and other specialty hubs, such as been Moda, and Singapore and in the specialty and commercial markets across EMEA, APAC and North America.
Roni Aldor: Our vision is to integrate Advantage Go's solution into Sapiens Insurance platform for PNC while also offering them as a standalone product. This approach enables us to address both new prospects and existing customers, enhancing our value proposition across multiple markets. This acquisition aligned with Sapiens' strategy to accelerate penetration to the London specialty market, enhance its value proposition to the PNC insurers, and strengthen its support for their insurance market. The London Specialty Market is a global hub for complex and high-risk insurance and reinsurers. where brokers and underwriters negotiate bespoke coverage primarily through Lloyds London and London Company Markets.
Speaker Change: Our vision is to integrate the advantage goes solution into sapiens insurance platform for P&C, while also offering them as a standalone product.
Speaker Change: This approach enables us to address both still prospects and existing customers and then single value proposition across multiple markets.
Speaker Change: This acquisition aligns with sapiens strategy to accelerate penetration into the London specialty markets and then she's value proposition to the P&C insurers and strengthen its support for the reinsurance market.
Speaker Change: The London specialty market is a global hub for complex and holidays insurers and reinsurers.
Speaker Change: We have brokers and underwriters negotiate bespoke calculated pardon me, so Lloyd's of London at London Company market.
Roni Aldor: The London specialty market is one of the largest in the world and represents a significant opportunity for Sapiens to expand its footprint. The underwriting workbench segment is growing significantly as insurers recognize the value of sophisticated decision support tools. The demand for underwriting workbench is growing, and according to the research firm Celend, the number of workbench deals is expected to rise in 2025 and 2026. Advantage Go will also strengthen Sapiens' value proposition in North America PNC market by enhancing its capability for insurers operating in the complex specialty and commercial lines.
Speaker Change: The London specialty markets is one of the largest in the world and represent a significant opportunity for sapiens to expand its footprint.
Speaker Change: Yeah, I think we'll wind segment is growing significantly as insurers recognize the value of sophisticated decision support tools the demand full underwriting whopper and she is going according to the research films. The land the number of false bench deals is expected to rise.
Speaker Change: In 2025 and 2026.
Speaker Change: Advantage go will also strengthen sapiens value proposition in North America, P&C market by announcing its capability for insurers operating in the complex specialty and commercial lines.
Roni Aldor: Now, moving on discuss the first quarter of 2025. Revenue in the first quarter of 2025 total $136 million compared to $134 million in the first quarter of 2024. In Q1 2025, we had a negative currency impact compared to Q1 2024.
Speaker Change: Now moving on to discuss the first quarter of 2025.
Speaker Change: Revenue in the first quarter of 2025, total Huntington $36 million compared to $134 million in the first quarter of 2024.
Speaker Change: In quarter, one 2025, we had a negative currency impact compared to quarter, one 'twenty 'twenty four.
Roni Aldor: On constant currency basis, our revenue would have been $2 million higher. In Q1, we continue to sign new deals and expand relationships with existing customers across both life and P&C segments. Less than one year since the launch of our insurance platform, we are already seeing promising customer adoption, a clear indication that our strategic investments are resonating with the market and delivering results. We are continuing with the transition of existing customers to the cloud while also onboarding all new customers to Sapiens Cloud.
Speaker Change: On a constant currency basis of 11, you would've been $2 million higher.
Speaker Change: In Q1, we continued to sign new deals and expand relationships with existing customers across both life and P&C segments.
Speaker Change: It's been one year since the launch of our insurance platform.
Speaker Change: Already seeing promising customer adoption, a clear indication that those strategic investment.
Speaker Change: <unk> with the market and delivering results.
Speaker Change: We are continuing with transition of existing customers to the cloud while also on boarding all new customers to sapiens cloud.
Roni Aldor: Let's drill down into our original performance. First, our North America businesses continue its growth trajectory this quarter with accelerating demand for life and annuities solutions. Our Latin annuity business has benefited from strategic investments we have made to drive growth and our new business wins reflect the success of these initiatives. In the first quarter, we have multiple wins with new and existing customers, which underscores insurers' confidence in Sapiens to innovate, support businesses' transformation, and help solidify their competitive position. During the first quarter, we signed a new life platform deal in North America, which is incremental to the two life platform deals signed in North America last year.
Speaker Change: Let's drill down into our regional performance.
Speaker Change: First our North America businesses continue its growth trajectory this quarter with accelerating demand for life and annuity solutions.
Speaker Change: Our life and annuity business has benefited from strategic investments, we have made to drive growth and new business wins reflect the success of these initiatives.
Speaker Change: In the first quarter, we had multiple wins with new and existing customer, which I'll just pull insurers confidence in sapiens to innovate support businesses transformation and help solidify their competitive position.
Speaker Change: During the first quarter, we signed a new life platform deals in North America, which incremental so the two life platform deal signed in North America last year.
Roni Aldor: As we reported this quarter, a major U.S. multiline insurer expanded its partnership with us by selecting Sapiens insurance platform for life and annuities, which includes Sapiens core suite for life annuities, Sapiens data suite, and Sapiens cloud services. For nearly a decade, this existing customer has successfully utilized Sapiens Underwriting Pro, and the implementation of Sapiens Insurance Platform will further accelerate its digital transformation. In addition, this quarter we had several goal lives across our life solution, course suite, illustration pro, and underwriting pro, while also making innovative progress with several important project upgrades. During the first quarter of 2025, we announced the release of Sapiens Underwriting Pro version 14, which has our award-winning, most advanced automated underwriting and new business case management system for life and annuities insurer.
As we reported this quarter emerge all U S. Multi line insurer expanded its partnership with us by selecting sapiens insurance platform for life and annuities, which includes sapiens core suite for life annuities sapiens, that's a sweet and sapiens cloud services.
Speaker Change: For nearly a decade this existing customer has successfully utilized sapiens underwriting pole and the implementation of sapiens insurance plateau will further accelerate digital transformation.
Speaker Change: In addition, this quarter with several of go lives. It also left a solution called suites illustration, Paul and I think Paul while also making innovative programs with several important product updates.
Speaker Change: During the first quarter of 2025, we announced the release of sapiens underwriting for Virgin four P. M, which is our award winning most advanced automated underwriting and new business case management system for life and annuities enjoy.
Roni Aldor: The release delivers significant technical enhancement, accelerates greater operational efficiency, seamless communication, and advanced AI-driven capabilities.
Speaker Change: But at least they leave the significant technical enhancement accelerates greater operational efficiency seamless communication and advanced AI driven capabilities.
Roni Aldor: Also during this quarter, we announced the latest release of Sapiens Illustration Pro and Sapiens Application Pro, featuring enhanced automation, risk intelligence, and operational efficiency, empowering agents and advisors to illustrate policies, manage users, and integrate seamlessly with underwriting and sales platforms. Turning to worker compensation, this market continues to hold strong potential for Sapiens throughout the U.S. and Canada over the coming years. Over the course of the first quarter, our workers' compensation team has demonstrated the progress in the implementation of several key projects, as evidenced by the completion of two goal lives we see in CoreSuite for critical worker compensation upgrades.
Speaker Change: Also during this quarter, we announced the latest release of sapiens illustration, Paul Insipience application Bull featuring <unk> automation.
Speaker Change: Intelligent and operational efficiency empowering agents and advisers to interstates policies manage yourselves and integrate seamlessly with <unk> and then I think and sales platform.
Speaker Change: Turning to walk the competition. These markets continue to hold strong potential for sapiens throughout the U S and Canada over the coming years.
Speaker Change: Over the course of the first quarter, our workers' compensation team has demonstrated the progress in the implementation of several key projects.
Speaker Change: As evidenced by the completion of two go lives, we've seen coal suite for critical Walker compensation Obsoletes.
Roni Aldor: Let me switch to discussing the performance of our CoreSuite PMC in North America. Sapiens continues to invest in North America PNC platform with data suite integration set for 2025, which enable AI automation and advanced analytics.
Speaker Change: Let me switch to discussing the performance of all of course at PNC Most America.
Speaker Change: Sapiens continues to invest in North America, P&C platform with data suite integration set for 2025, which enabled AI automation and advancing that ethics and maybe to share that we signed in European C. DS four claims processing with North America.
Roni Aldor: I'm happy to share that we signed a new PNC deal for claims processing with North America-based customers in this quarter. With continued diligent investment in our platform, we are seeing initial positive trends in 2025, and as I mentioned before, the Acquisition of Advantage goal will enhance our PNC platform for North America market.
Speaker Change: Based customer in this quarter with.
Speaker Change: Please continue diligent investment in our platform.
Speaker Change: We are seeing initial positive trends in 2025, and as I've mentioned before the acquisition of advantage goal will enhance our P&C platform for North America market.
Roni Aldor: moving to Europe and the rest of the world. In European market and the rest of the world, which includes APAC in South Africa, demand for sapient solution remains solid. In Quarter 1, we secured multiple deals across Life and PNC with new logos, as well as existing customers in the region. We had numerous successful Go-Life projects for customers with our EDIT Suite, Core Suite for Life, TI Suite, and Reinsurance Master upgrades. A significant highlight in the quarter is the go-live with our existing PNC customer, Eastcox, as a leading insurance in the UK and Sapiens partner for over a decade.
Speaker Change: Moving to Europe, and the rest of the world.
Speaker Change: In European market and the rest of the World, which includes APAC consult Africa demand full system solution remains solid.
Speaker Change: In quarter, one we secured multiple deals of course life and P&C with new logos as well as existing customer in the region.
Speaker Change: We had numerous successful go lifestyle Jay for customer we sell it did suites core suite for life, <unk> suite and reinsurance most of the upgrades.
Speaker Change: The significant highlights in the quarter is the go lives, we sell existing P&C customer is spokes.
Speaker Change: Leading insurers in the U K and sapiens partner for over a decade.
Roni Aldor: Eastworks provides a tailored solution for businesses and high-net-worth private clients. This important step forward is indicative of Eastworks' commitment to enhancing business performance, resilience, and customer satisfaction. I want to highlight that Eastworks UK's migration to Sapiens' latest cloud-native architecture delivered an immediate average improvement of 30% in application spend, along with improved operation productivity and more consistent services delivery.
Speaker Change: This will provide tailored solutions for businesses and high net worth private clients. This important step forward indicative of esports commitment to enhancing business performance and Syrians and customer satisfaction I want to highlight that these folks U K migration to <unk>.
Speaker Change: Sapiens latest cloud native architecture, they live and immediate average improvement of 30% in application spins, along with improved operational productivity and more consistent services delivery.
Speaker Change: BMC extensions is a top priority for sapiens and the recent acquisition of advantage go strengthen our valuable position in specialty and commercial P&C market, while providing immediate access to the London specialty market.
Roni Aldor: PNC expansions is a top priority for Sapiens, and the recent acquisition of Advantage Go strengthened our value proposition in specialty and commercial PNC market, while providing immediate access to the London specialty market.
Speaker Change: Moving to the life and pension segments. This quarter, we signed new deals with Universal life, a leading life and health insurance based insightful as part of the conditional agreement Uni life, we leverage sapiens core suite for life and pension the modernized its co insurance policy.
Roni Aldor: Moving to the life and pension segments, this quarter we signed a new deal with Universal Life, a leading life and health insurance base in Cyprus. As part of the conditional agreement, Unilife will leverage Sapiens' core suite for life and pension to modernize its core insurance process and drive strategic growth initiatives. Following an extensive evaluation process, Unilab chose Sapiens, which validates our superior digital SaaS solution for both individual and group life pension projects.
Speaker Change: This and drive strategic growth initiatives.
Speaker Change: Following an extensive evaluation process unit loved chose sapiens, which validate our superior digital solution for both individual and group life pension project also this quarter one of the largest global life insurers has selected sapiens insurance platform for life and pension.
Roni Aldor: Also this quarter, one of the largest global life insurers has selected Sapiens' insurance platform for life and pension to drive digital transformation for its Czech Republic business, modernize its core insurance process, and accelerate its growth strategy. The insurer was looking to replace its legacy platform with an innovative core system that would empower the company to integrate new technologies and expand functionalities as it scales. Sapiens' robust cloud-based digital platform will optimize efficiency, simplify policy and claims management, and improve digital engagement for both customers and brokers.
Speaker Change: To drive digital transformation fully Czech Republic business Borderlands is coinsurance pulses and accelerate its growth strategy the.
Speaker Change: To ensure it was looking to replace its legacy platform.
Speaker Change: We're a team called system that would empower the company to integrate new technologies and expand functionality is as it scales set in school bus cloud based digital platform will optimize efficiency simplified policy and claims management and improve digital engagement.
Speaker Change: <unk> touched on most of them molecules.
Roni Aldor: This collaboration expands Sapiens' presence in Central and Eastern Europe, reinforcing our commitment to delivering innovative insurance solutions worldwide.
Speaker Change: This call abolition expand sapiens presence in central and eastern Europe, reinforcing our commitment to delivering innovative insurance solutions worldwide.
Roni Aldor: Moving to reinsurance, we are seeing growing demand for insurers across all tiers, high, medium and low, as they look modernized and streamline their insurance operation. We continue to expand across North America, Europe and APAC with our Reinsurance Master and Reinsurance Pro solutions.
Speaker Change: Moving to insurance, we are seeing growing demand for insurers.
Speaker Change: Most all tiers high medium and low they look modernize and streamline the reinsurance operation we continue to expand across North America, Europe, and APAC, we saw insurance muster and insurance solutions.
Roni Aldor: Moving to APOC region. The momentum at the end of last year has continued into the first quarter of 2025. The region remains a priority for us and we continue to focus on accelerating growth, which the Candela Acquisition supports. In the quarter, we secure a new APAC win for PNC with Pioneer Insurance and Surety Corporation. The leading insurance provider in Philippines, Pioneer chose Sapiens insurance platform to drive its digital transformation and UX enhancement. This is an important new win in the region that reinforce our strategy to improving core processing throughout our advanced technology, enabling our customers to navigate evolving market trends with precision.
Speaker Change: Moving to APAC region.
Speaker Change: The momentum at the end of last year as continue into the first quarter of 2025.
Speaker Change: The region remains a priority for us and will continue to focus on accelerating growth, which they can they'll acquisition supports in.
Speaker Change: In the quarter, we secured a new epoch win for P&C, we spun their insureds and surety Corporation.
Speaker Change: The living insurance provider in Philippines, Bologna chose sapiens insurance platform to drive its digital transformation and Nu X. An incident. This is an important new win in the region that reinforce our strategy to improving core processing throughout our advanced technology, enabling.
Speaker Change: Our customer to navigate evolving market trends with precision.
Roni Aldor: Innovation remains a cornerstone of our playbook. Our AI-based Sapiens insurance platform continues to evolve with specializations in addressing the unique requirements of each business, vertical or domain. We are integrating AI across our core data digital solution to enhance automation, improve decision making, and drive greater efficiencies for insurers. By embedding AI-driven capability into our core system, we enable smarter underwriting, more accurate risk assessments, and streamline claims processing. Our roadmap is robust as we continue to develop a holistic GenNI-based co-pilot experience across the entire platform, further enhancing the value we deliver to our customer.
Speaker Change: Innovation remains a cornerstone of our playbook.
Speaker Change: AI based sapiens insurance platform continues to evolve.
Speaker Change: <unk> in addressing the unique requirements of each business vertical all domain.
Speaker Change: We are integrating AI of course, our core data digital solution to enhance automation improved decision, making and drive greater efficiencies for insurers.
Speaker Change: By embedding AI driven capability into our core system, we nevertheless, smelters underwriting more accurate risk assessment and streamline claims processing.
Speaker Change: Augment is robust as we continue to develop a holistic jen and I base copilots experience across the entire platform. So there's an advancing the value we deliver to our customers before I wrap up I would like to reiterate our focus for 2025, we are committed.
Roni Aldor: Before I wrap up, I would like to reiterate our focus for 2025. We are committed to building a robust pipeline and expanding our client base across all key markets. To support this commitment and achieve our goals, we are focusing our teams and resource on, first, platform innovation and advanced AI capabilities. We will continue investing in Sapiens Intelligent Insurance platform to drive sustainable growth globally and improving our competitive position. Second, increase cross-sale to expand the relationship with existing customers. Cross-selling to existing customers represents a significant opportunity for growth. Third, accelerating cloud adoption for our existing customer to a scalable, efficient SaaS model.
Speaker Change: Building, a robust pipeline and expanding our client base across all key markets to support this commitment and achieve our goals we are focusing our teams.
Speaker Change: So on sales because that's the only innovation and advanced AI capabilities. We will continue investing in sapiens intelligence insurance platform to drive sustainable growth globally, and improving our competitive position.
Speaker Change: Second increased cross sell to extend the relationship with existing customer cross selling to existing customers. It presents a significant opportunity for growth.
Speaker Change: So accelerating cloud adoption for existing customer to a scalable efficient so smart in our advanced solution are experiencing strong momentum in customer utilization and we remain on pace to achieve our target penetration rate over 60%.
Roni Aldor: Our advanced solutions are experiencing strong momentum in customer utilization, and we remain on pace to achieve our target penetration rate over 60% within the next five years.
Speaker Change: We see in the next five years.
Roni Aldor: 4. Enhance growth in our life businesses globally. The demand for life system transformation is strong. As insurers seek to modernize legacy infrastructure, the market shift presents a significant opportunity for life offerings. Fifth, we will continue building out our system integration partnership globally. Our pipeline is strong standing, and we are enthusiastic about the new opportunity resulting from our collaboration with system integrators throughout the global market we are operating in. And lastly, following Advantage Go acquisition, we see an opportunity to expand our global PNC platform with underwriting workbench and risk management capability and strengthens Sapiens value proposition across global commercial specialty and London market segments.
Speaker Change: Full and that's both in our life businesses globally.
Speaker Change: And for like system transformation. He stormed is ensure seek to modernize legacy infrastructure the market shifts presents a significant opportunity for life offerings.
Speaker Change: First we will continue building out our system integration partnership globally.
Speaker Change: Our pipeline is strong standing and we are enthusiastic about the new opportunity, resulting from our collaboration with system integrators throughout the global markets. We operating in and lastly, following advantage go acquisition, we see an opportunity to expand our global P&C platform.
Speaker Change: And I think well bench and then they spend instrument's capability and stretches sapiens value proposition it caused global commercial specialty and London market segments.
Roni Giladi: I will turn the call over to our CFO to provide more detail on our financial performance. Roni.
Speaker Change: I'll turn the call over to our CFO to provide more detail on our financial performance. Thank you Ronny I will begin my commentary by reviewing the first quarter 2025 non-GAAP results.
Roni Giladi: Thank you, Roni. I will begin my commentary by reviewing the first quarter 2025 non-GAAP results. followed by comments on the balance sheet and cash flow. I will wrap up with our updated guidance for 2025. Revenue in the first quarter of 2025 total $136 million, an increase of 1.4% compared to $134 million in the first quarter of 2024. In Q1 2025, we had a negative currency impact compared to Q1 of 2024. On a constant currency basis, our revenue would have been $2 million higher.
Speaker Change: Following my comments on the balance sheet and cash flow.
Speaker Change: We can wrap up with our updated guidance for 2025.
Speaker Change: Revenue in the first quarter of 2025 totaled $136 million, an increase of one 4% compared to $134 million in the first quarter of 2024.
Speaker Change: In Q1, 2025, we had a negative currency impact compared to Q1 of 2020 full when.
Speaker Change: On a constant currency basis, our revenue would have been $2 million or higher.
Roni Giladi: Looking at our revenue by geography. Revenue in North America totaled $57 million, an increase of 3.1% compared to last year. Revenue in Europe totaled $67 million, a decrease of 1.8% compared to last year. on a constant currency basis, our revenue in Europe would have been 0.6% higher. Revenue in the rest of the world, that includes South Africa and APAC, totaled $12 million, a 13.4% increase compared to last year. For Q1 2025, our annualized recovery revenue, ARR, totaled $187 million, reflecting 11.8% increase from Q1 of 2024. coming mainly due to new logo we signed last quarter.
Looking at our revenue by geography.
Speaker Change: Revenue in North America totaled 57 million, an increase of three 1% compared to last year.
Speaker Change: Revenue in Europe totaled 67 million a.
Speaker Change: A decrease of one 8% compared to last year.
Speaker Change: On a constant currency basis, our revenue in Europe would have been 0.6% high yield.
Speaker Change: Revenue in rest of World that includes South Africa, and APAC totaled $12 million.
Speaker Change: At 13, 4% decrease compared to last year.
Speaker Change: Yeah.
Speaker Change: For Q1, 2025, Oh annualized recurring revenue totaled.
Speaker Change: Total $187 million.
Speaker Change: Collecting 11, 8% in Geos from Q1 of 2024.
Speaker Change: Common mainly due to new logo, we signed last quarter.
Speaker Change: Yeah.
Speaker Change: Our revenue mix showed that revenue solely carrying social product and relocate and postproduction sandwiches in Gs vehicles by 14, 7%.
Roni Giladi: Our revenue mix showed that revenue from recurrent software products and reoccurring post-production services increased year-over-year by 14.7%, to $108 million compared to $94 million in Q1 of 2024. Recurring and reoccurring revenue in Q1 2025 represent 79% of total revenue. Revenue from implementation total $28 million, compared to $40 million in Q1 of 2024. This reflects the completion of several Go-Lite projects and the extension of existing implementation projects over a longer time frame. Additionally, revenue from deals we signed in Q4 of last year is expected to materialize and ramp up starting Q2 of this year. Moving on to profitability, gross profit in the quarter was $63 million compared to $61 million in Q1 of 2024.
Speaker Change: $108 million compared to $94 million in Q1 of 2024.
Speaker Change: Recurring and reoccurring revenue in Q1, 2025 represent 79% of total revenue.
Speaker Change: The revenues from limitation totaled $28 million compared to $40 million in Q1 of 2024.
Speaker Change: This reflects the completion of several go like project and the extension of existing implementation project over a longer timeframe.
Speaker Change: Additionally revenue from deals we signed in Q4 last year is expected to materialize and ramp up starting Q2 of this year.
Speaker Change: Moving onto profitability.
Speaker Change: Gross profit in the quarter was $63 million compared to $61 million in Q1 of 2024.
Roni Giladi: The gross margin in the quarter was 46.3% compared to 45.4% in Q1 of 2024. representing an increase of 90 basis points. The increase in gross margin was primarily due to higher recurring and reoccurring revenue ratios. Operating profit in the first quarter of 2025 was $25 million compared to $24 million in Q1 of 2024. operating margin was 18%, slightly lower than the 18.1% margin in Q1 2024, and in line with our target. Net income attributable to Sapiens shareholders for the first quarter of 2025 was $21 million, an increase of 1.3% compared to Q1 of 2024. Earning per diluted share was $0.37 for the first quarter of 2025.
Speaker Change: Gross margin in the quarter was 46, 3% compared to 45, 4% in Q1 of 2024.
Speaker Change: Representing an increase of 90 basis points.
The increase in gross margin was primarily due to higher again, and then you'll get into revenue ratio.
Speaker Change: Operating profit in the first quarter of 2025 was $25 million compared to $24 million in Q1 of 2024.
Speaker Change: Operating margin was 18% slightly lower than the deep one 1% margin in Q1 2024.
Speaker Change: And in line with our targets.
Speaker Change: Net income attributable to SAP and shareholder for the first quarter of 2025 was 21 million Golar and increase of one 3% compared to Q1 of 2024.
Speaker Change: Earnings per diluted share was <unk> 37 cents for the first quarter of 2025.
Roni Giladi: compared to 36 cents. for the Comparable V-Ray.
Speaker Change: Compared to 36 cents.
Speaker Change: For the comparable period.
Roni Giladi: Turning to our balance. As of March 31st, 2025, we had cash-in-cash equivalents and short-term deposits totaling $206 million, and debts of $20 million. In April 2025, we paid a cash dividend of $16.8 million, or $0.30 per share, for the second half of 2024. The dividend is in line with the company policy of distributing on a semi-annual basis up to 40% of its annual non-GAAP net income. In addition, the Board of Directors has approved distribution of a special cash dividend of $0.36 per share, or $20.1 million in total. In declaring the special dividend, the Board of Directors evaluated Sapiens' financial stability and determined that issuing the special dividend was both a prudent and appropriate way to reward our long-standing shareholders.
Speaker Change: Turning to our balance sheet.
Speaker Change: March 31, 2025, we had cash and cash equivalents and short term deposits totaling $206 million and debt of 20 million.
In April 2025, we paid a cash dividend of $16 8 million below.
Speaker Change: 30 cents per share for the second half of 2024.
Speaker Change: The dividend is in line with the company policy of distributing or semi annual basis up to 40% of its annual non-GAAP net income.
Speaker Change: In addition, the board of Directors has approved the distribution of especially in cash dividend.
Speaker Change: <unk> 36, and really show a $21 million in total.
In declaring a special dividend the board of directors evaluates its Afghans financial stability and determined that issue and the special dividend was both prudent and appropriate way to reward our long standing shareholders.
Speaker Change: Adjusted free cash flow for the first quarter of 2025 was $23 million compared to $17 million in Q1 2024.
Roni Giladi: Adjusted free cash flow for the first quarter of 2025 was $23 million compared to $17 million in Q1 of 2024.
Roni Giladi: Let me now review our revised guidance for 2025. Revenues. Today, we are raising our non-GAAP revenue guidance to a range of $574 million to $578 million. from previous range of $553 to $558 million, representing growth of 6% at the midpoint.
Speaker Change: Let me now review our revised guidance for 2025.
Speaker Change: Revenues.
Speaker Change: Today, we are raising our non-GAAP revenue guidance to a range of 574 million to 578 million.
Speaker Change: From a previous range of $553 million to $558 million representing.
Speaker Change: Representing growth of 6% at the midpoint.
Speaker Change: Perfect.
Roni Giladi: Profit. We are also revising our non-gap operating profit to a range of $94 million to $96 million, with operating margin of 16.5 at the midpoint. from a range of 98 to 102 million with operating margin of 15% at the midpoint. We expect Q2 2025 operating profit to be in the range of $20 to $21 million.
Speaker Change: Also revising our non-GAAP operating profit to a range of 94 million to 96 million go along with the operating margin of 16 five at the midpoint.
Speaker Change: For me the range of 98 to one to one 2 million with operating margin of 18% at the midpoint.
Speaker Change: We expect Q2 2025 operating profit to be in the range of $20 million to $21 million.
Speaker Change: The revised revenue and operating profit guidance assume the following.
Roni Giladi: The revised Revenue and Operating Profit Guidance assumes the following. Revenues. Currency fluctuations are expected to impact our revenue going forward, primarily driven by the strengthening of the Euro and British Pound against the USA Dollar. In addition, in April, we signed an agreement to acquire Candela in APAC and Advantage Go in the UK. and we expect both transactions to close towards the end of the second quarter. We currently anticipate the aggregate impact on revenue to be approximately $21 million at the midpoint. Foggen exchange movements are expected to have positive effects on our profitability, offset by the impact of recent acquisitions.
Speaker Change: Revenues.
Speaker Change: Currency fluctuations are expected to impact our revenue going forward.
Speaker Change: Really driven by the strengthening of euro and British pound against the USA dollar.
Speaker Change: In addition.
Speaker Change: In Europe, we signed an agreement to acquire some daylight in APAC and advantage to go in the UK and.
Speaker Change: And we expect both transaction to close towards the end of the second quarter.
Speaker Change: We currently anticipate the aggregate impact on revenue to be approximately $21 million at the midpoint.
Speaker Change: Perfect.
Speaker Change: So I'll give you an exchange movement I expect it to a positive effect on our profitability.
Speaker Change: It's by the impact of recent acquisition.
Roni Giladi: While Candela is expected to contribute positively to profit in Q4, Advantage Go will remain loss-making throughout the year. Please also note that Candela and Advantage Gro were subsidiaries of a larger organization and not all their assets and functions were consolidated under single legal entities. This adds complexity to the integration process, including areas such as cloud migration, legal entity closure, and employee transfer. We anticipate that the aggregate impact on profit to be approximately negative of $5 million at the midpoint.
Speaker Change: While <unk> is expected to contribute positively to profit in Q4 advantage go will remain loss, making throughout the year.
Speaker Change: Please also note that can daylight advantage go where subsidiary of a larger organization and not all their assets and function, where consolidated under a single legal entity.
Speaker Change: This adds complexity to the integration process, including areas, such as cloud migration legal entity closure and transfer.
Speaker Change: Yeah.
Speaker Change: We anticipate that the aggregate impact on profit to be approximately negative 5 million golar at the midpoint.
Roni Giladi: In summary... While we see a short-term dip in our profits and margins due to acquisitions, the strategic value and recurring revenue streams from this acquisition position us for robust growth and enhanced profitability in the future. Looking ahead to 2026, we expect our revenue growth to be in the mid to high single-digit range. And we are also looking to improve profitability as we have proven successfully in past years.
Speaker Change: In summary.
While we see a short term deep email profits and margins due to acquisition.
Speaker Change: Book value and recurring revenue stream from this acquisition position us fully box growth and enhanced profitability in the future.
Speaker Change: Looking ahead to 2026, we expect our revenue growth to be in the mid to high single digit range.
Speaker Change: And we are also looking to improve profitability as we have proven successfully in past years.
Roni Giladi: Please note that the recent proposed tariff changes currently do not have direct impact on Sapiens. However, they may pose a risk if they affect our customers, which could in turn impact our results. We did not include tariff impact on our care and guidance.
Speaker Change: Please note that the recent proposed salary changes currently do not have direct impact on subjects.
Speaker Change:
Speaker Change: They may pose a risk if the effects, our customer which could in turn impact our results.
Speaker Change: We did not include tariff impact or not giving guidance.
Roni Giladi: Before I turn the call back to Roni Aldo, I would like to reiterate that we remain fully committed to disciplined execution of our strategy, driven growth, and long-term profitability. Thank you.
Speaker Change: Before I turn the call back doing there, though I would like to reiterate that we remain fully committed to disciplined execution of our strategy.
Speaker Change: Driven growth and long term profitability.
Speaker Change: Thank you.
Roni Aldor: I will now turn the call back to Roni and Al.
Speaker Change: I will now turn the call back to Orlando Bonnie Thank.
Roni Aldor: Roni? Thank you, Roni. We delivered a solid first quarter, reflecting the progress across our key markets. Our continued investment in our insurance platform remains a critical driver of growth.
Speaker Change: Thank you Lonnie.
Speaker Change: We delivered a solid first quarter, reflecting the progress across our key markets.
Speaker Change: Our continued investment in our insurance platform remains a critical driver of growth.
Roni Aldor: In summary, Q1 2025 marks another quarter of operational progress. We remain committed to deliver long-term growth across all our key territories.
Speaker Change: In summary, Q1 2025, Mark another quarter of operational pull this we remain committed to deliver long term growth across all our key territories.
Yaffa Cohen Ifrach: We are continuously exploring M&A opportunities, and our most recent acquisition of Advantage Go and Candela will serve as a channel to enhance our go-to-market strategy in key regions we are I will now ask the operator to please open the call for questions. Thank you.
Speaker Change: We are continuously exploring M&A opportunity and our most recent acquisition of advantage go into Leila will serve as a channel to enhance our go to market strategy in kidney gin, we are targeting in order to accelerate our growth trajectory I will now ask the operator to please.
Speaker Change: Open the call for questions.
Speaker Change: 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 two if you are using speaker equipment congruent with the handset before pressing the numbers. Please ask your question in a loud and clear voice. Please standby.
Operator: Ladies and gentlemen, at this time we will begin the question and answer If you have a question, please press star 1. To cancel your request, please press start. Becker Equipment, kindly lift the handset before pressing the number.
Operator: ask your ques- A Loud and Clear Voice. Please stand by while we poll for your questions.
Speaker Change: While we poll for your questions.
Speaker Change: The first question is from Dylan Becker of William Blair. Please go ahead.
Dylan Becker: The first ques- Dylan Becker of William Blair, please go ahead. Hey, everyone. Nice job here. I hope everyone's well.
Speaker Change: Hey, everyone nice.
Speaker Change: Nice job, there, helping everyone's well, maybe ronnie or Alex starting with you.
Dylan Becker: Maybe Roni A.
Alex Zukerman: or Alex, starting with you. On the underwriting workbench side, this is an area we've continued to hear kind of positive momentum around in the P&C space. And you kind of touched on it in the prepared remarks, but wondering how you think about that acquisition in particular, the opportunity to kind of accelerate some of the traction and momentum you're pushing forward on in North America as well as globally. And then for Roni G., how you think about the benefits to the model from that transaction as well, too, as it relates to kind of the growth profile of that business, the gross margin component, the recurring mix as a part of this kind of ongoing model.
Speaker Change: On the underwriting workbench side. This is an area. We continue to hear kind of positive momentum around in the P&C space you kind of touched on it in the prepared remarks, but wondering how you think about that acquisition in particular at the opportunity to kind of accelerate some of the traction and momentum.
Speaker Change: You're pushing forward on in North America, as well as globally and then for Ronnie Gee, How you think about the benefits to the model from that transaction as well too as it relates to your kind of the growth profile of that business. The gross margin component the recurring mix as a part of this kind of ongoing model evolution.
Alex Zukerman: Hey Dylan, this is Alex speaking. So first, a spot on the market acceleration point. We've seen the underwriting space rising very substantially over the past year. A lot of traction in the market, the need of the PNC industry to run better risk assessment and to connect it to its processes. We saw great traction on this, and this is very much in line with our strategic approach to the market and with our platform offering. We see the Advantage Go acquisitions serve us across multiple aspects of our business. When we look, we can speak about the support that it's going to bring us in the U.S.
Alex: This is Alex speaking so first they are spot on on the market acceleration point and we've seen the underwriting space rising very substantially over the past year and lots of traction in the market they need us the P&C industry to run better risk assessment and.
Alex: Connected to its processes, we saw great traction on this and this is very much in line with our strategic approach to the market and with our platform offering.
Alex: We see the advantage go acquisition service across multiple aspects of our business when we look.
Alex: We can speak about the support that it is going to bring us in the U S market. We see many many deals to find the right thing in the U S small cats and connecting it to our platform is definitely answering the market needs.
Alex Zukerman: market. We see many, many deals of underwriting in the U.S. market, and connecting it to our platform is definitely answering the market needs. Similar approach in Europe on the PNC side. I'd like to uniquely add also the London market, which is close to $60 billion GWP market that we today are not active in, and Advantage Go allows us to go straight into this market with a strong product. And this is also helping us. We expect it to help us on the cross-sell because we can take it back to all our existing customers based on the PNC side globally, both US and Europe, and enhance our offering to them.
Alex: A similar approach in Asia in Europe, and on the P&C side I'd like to uniquely add also the London market, which is.
Alex: Close to $60 billion.
Alex: <unk> market that we today in north Actelion and advantage allows us to go straight into this market with a with a strong product.
Alex: And this is also helping us.
Alex: We expect it to help us on the cross sell because we can take it back to all our existing customers based on the P&C side globally, both U S and Europe.
Alex: And then enhance our offering to them.
Roni Giladi: Dylan, regarding the metrics or the model implication of this acquisition, so obviously, as we mentioned, we expect with this transaction that overall Sapiens grow next year from mid-single digit to mid-to-high single digit. Specifically, if I'm going to Advantage Go, they are expecting to grow next year. Sabat, did it grow? And in terms of metrics, their gross margin is higher than Sapiens today, about 60%. If we look at Sapiens overall, we have about 33% of our revenues coming from ARR, and they are slightly above 50%. Obviously, from a profit perspective, they are today losing money, but as we mentioned, we expect to move gradually over this year, in 2026, and be profitable in 2027.
Alex: Regarding the metrics. So the model implications of this acquisition. So obviously as we mentioned we expect with this transaction with overall soft parents to go next beautiful me mid single digit to mid to high single digits.
Alex: Pacifically, if I'm going to advantage go they are expecting to grow next year double digit growth and in terms of metrics they'll go small journey is higher than the sapiens today about 60%.
Alex: If we look at SAP and so overall, we have about 33% of our revenues coming from <unk> and they are slightly above 50%.
Alex: Lisa both with respect to you, though today, losing money, but as we mentioned we expect to move gradually over this year and 2026 and be profitable in 2027.
Roni Giladi: So, a lot of upside in terms of growth, gross margin in ARR, and as we've been able to successfully do transition of other companies to profit, we expect to do this also with Advantage Go.
Alex: So a lot of upside in terms of growth gross margin in Iran, and as we've been able to successfully do transition a of other companies to proceeds we expect to do this also with advanced digital.
Alex: Okay Fantastic very helpful. Thank you there.
Dylan Becker: Okay, fantastic, very helpful, thank you there.
Dylan Becker: Also, it seemed like the life side is continuing to see healthy kind of broad-based momentum.
Alex: Also it seemed like the life side.
Alex: <unk> is continuing to see healthy kind of broad based momentum we've talked about kind of the competitive dynamics there in the past, but how should we think about that.
Alex Zukerman: We've talked about kind of the competitive dynamics there in the past, but how should we think about that kind of step up in the LNA? kind of the share of. that it currently represents, maybe its growth profile, and how you think about kind of the evolution on the LNA side. So from, it's Alex again, from the business perspective, definitely we see continuation of the trend that we reported over the last couple of quarters, strong demand on the life side, cross again, North America and Europe. In North America, we see the platform proposition combining, you know, core suite together with the underwriting illustration and application connected to digital and data as a whole.
Alex: That kind of step up in the M&A business today kind of a share of the mix.
Alex: Currently represents maybe its growth profile and how you think about kind of the evolution on the <unk>.
Alex: Illinois side of the house as well.
Alex: So from its Alex again from the business perspective.
Alex: Frankly, we see continuation of the trend that we are exposed to it over the last couple of quarters strong demand on the life side.
Alex: Cross again, North America, and Asia, and Europe in North America, we see the platform proposition combining no coal co suites together with the underwriting illustration and application connected to digital and data as a whole it makes a huge.
Alex Zukerman: It makes a huge market differentiation. It brings a lot of traction in the market. The pipeline keeps on growing and the business keeps on growing.
Alex: Market differentiation brings a lot of traction in the market the pipeline keeps on growing.
Alex: And the business keeps ongoing we expect to continue this trend.
Alex Zukerman: We expect to continue this trend, similar trend in Europe and UK where we also start to enter into sales processes on pension and retirement that if we focused most of our business in Europe on protection and risk, we are also stepping into the wealth and the investment management and the pension. So both sides, we see and expect to continue the growth.
Alex: Similar trend in the in Europe, and U K, where we also start to enter into cells processes on pension and retirement.
Alex: If we focused most of our business in Europe.
Alex: Section and the risk we are also stepping into the wealth and investment management in the pension. So both sides, we see and expect them to continue the growth.
Roni Giladi: Also from, this is Roni G, also from a metric perspective, we see a gradual increase of overall life on overall revenue of Sapiens. So if we ended, usually we are providing this metric by the end of the year, life was 25, this was already 26 percent, and if we compare to Q1 of 2024, we're almost 300 basis points more, so from 33 to 26 percent. Okay, great.
Alex: Oh. So for me. This is the only G. Also from a metrics perspective, we see gradually increase of overall life on overall revenue will see sapiens. So if we ended the usually we are providing this metric by the end of the year life was 25.
Alex: This book, so that is 26% and if we compare to Q1 of 2024, we almost the almost 300 basis points more so from 33% to 26%.
Speaker Change: Okay, great. Thank you guys.
Dylan Becker: Thank you, guys.
Thanks.
Speaker Change: The next question is from Chris Reimer of Barclays. Please go ahead.
Chris Reimer: The next question is from Chris Reimer of Barclays, please go ahead. Hi, thanks for taking my questions and congratulations on a strong quarter. I was wondering if you could talk about how you see the river.
Chris Reimer: Alright, thanks for taking my questions and congratulations on strong quarter.
Speaker Change: I was wondering if you could talk about how you see the revenues progressing playing out for you to ask them.
Chris Reimer: M.S. B.S. M. T. M. S.
Speaker Change: The year on that would be any kind of having a toward the end of the year or if it will be evenly dispersed and then if you could just talk about some of the drivers contributing to your outlook.
Roni Giladi: Elyse Kanner, Yaffa Cohen, Samuel Salvas, Tavy Rosner, Alexei Gogolev, Elyse Kanner, Hello. Yes, I will answer. I think I heard the first section. So, if we look at the revenue stream going forward this year, 2025, we see we didn't close the two acquisitions that we mentioned, neither the Advantage Gold or Candela, but we expect them to close during the end of this quarter. So, we see gradual increase in Q2, but then jumped into Q3 and Q4, between them, slightly higher in Q4 versus Q3. So, gradual increase in Q2 depends on the closing date, and then higher in Q3 and Q4, higher than Q3.
Speaker Change: Hello, Yes, I will answer the I think I have the first section. So if we look at the revenue stream going forward. This year 2025, we see.
Speaker Change: We didn't close the two acquisitions that we mentioned neither the advantage to grow oaken, They love, but we expect them to close during the end of this quarter. So we will see gradual increase in Q2, but then jumped into Q3 and Q4 between them slightly higher in Q4 versus Q3.
Speaker Change: So gradual increase in Q2, depending on the closing date, and then higher in Q3 and Q4 higher than Q3.
Speaker Change: Okay.
Roni Giladi: Got it, yeah, and Ben, could you just mention any of the drivers you are? Tobin. In terms of overall growth of the company, nothing has changed from the previous outlook that we gave. The growth is the continuation of the organic growth that we mentioned, plus some currency tailwind that affect the revenue and of course the acquisition. We are not sure about the exact consolidation date, so this is the reason that this number that we provided, but mainly continue of the organic growth, currency tailwind and the M&A.
Speaker Change: Got it yeah.
Speaker Change: You just mentioned any of the drivers you are you're seeing behind your.
Speaker Change: Your outlook.
Speaker Change: And in terms of overall growth of the company nothing has changed from our previous outlook that we gave and the golf is the continuation of the organic growth that we mentioned plus some currency tailwind that the effects on revenue and of course the acquisition we are in.
Speaker Change: Not sure about the exact consolidation that there's still this is the reason that this is a number that we provided but mainly continue of the organic growth a currency tailwind and the M&A.
Speaker Change: Got it.
Speaker Change: That's it for me.
Chris Reimer: Thank you. Thanks.
Speaker Change: Thank you thanks.
Alexei Gogolev: The next question is from Alexei Gogolev of J.P. Morgan. Please go ahead.
Speaker Change: The next question is from Alexi Gogo lab of J P. Morgan. Please go ahead.
Alexei Gogolev: Hi, this is... Thank you for clarifying the guide, is there any further detail you can provide on how much exactly is a currency tailwind?
Speaker Change: Hi, This is the least counter oncor electric OCA lab. Thank you for clarifying the guide is there any.
Speaker Change: Further detail you can provide on how much exactly is a currency tailwind versus how much you contributed to inorganic growth.
Speaker Change: Yeah.
Roni Giladi: Hi, this is Roni G. As we mentioned, we do not know the closing date and therefore we are not providing the split of the currency and versus the M&A impact. We will provide this by the end of the year, the exact amount as we are doing all the time in terms of currency and M&A. The currently the blended is the amount that we are providing, $21 million incremental. What I can say is the vast majority is coming from the M&A and slightly on the currency tailwind.
Speaker Change: Hi, This is the only G. As we mentioned we do not know the closing date and therefore, we are not providing the split of the currency and versus the M&A impact.
Speaker Change: We will provide these by the end of the year. The exact amount is really doing all the time in terms of currency and M&A.
Speaker Change: Currently the blended is the mode that we are providing $21 million incremental.
Speaker Change: What I can say is the vast majority of these coming from the M&A and slightly on the currency tailwind.
Alexei Gogolev: Got it, thank you.
Speaker Change: Got it. Thank you and then in terms of getting the 60% of customers to the cloud should we expect that to look like a bell curve and are we still kind of on the left side, maybe approaching the peak, where you'll see the most transition to cloud.
Roni Giladi: And then in terms of getting the... Should we expect that to look like a bell curve? And are we still kind of on the left side, maybe approaching the peak where you'll see? We are seeing the trend that we mentioned last quarter and prior to that. We are continuing moving to the cloud existing and new. As we mentioned all the time, almost 100% of the deals, if not 100, are on the cloud, the new logo, and every quarter we are shifting some existing customer to the cloud.
Speaker Change: We are seeing the trend that we mentioned last quarter and prior to that we are continue moving to the cloud the existing and new as we mentioned all the time almost 100% of the deals if not one hundreds or on the cloud the new logo and every quarter we are shifting.
Speaker Change: Some existing customers to the cloud will provide the exact percentage by the end of this year.
Roni Giladi: We provide the exact percentage by the end of this year.
Alexei Gogolev: Got it. Thank you so much. Thank you.
Speaker Change: Got it thank you so much.
Speaker Change: <unk>.
Speaker Change: Yeah.
Operator: If there are any additional questions, please do not hesitate to contact me. press star 1. If you wish to cancel your request, please press star 2. Please stand by while we poll for more questions.
Speaker Change: If there are any additional questions. Please press star one if you wish to cancel your request. Please press star two please standby, while we poll for more questions.
Operator: There are no further questions at this time.
Speaker Change: There are no further questions at this time before I ask Ms. Connie FRA to go ahead with her closing statement I would like to remind participants that a replay of this call is scheduled to begin in two hours in the U S. Please call 188826900.
Yaffa Cohen Ifrach: Before I ask.
Yaffa Cohen Ifrach: Cohen-Ifrach to go ahead with her closing statement, I would like to remind participants that a replay of this call is scheduled to begin in two hours. U.S., please call 1-888-269-005. In Israel, please call 03-9255-9387. Internationally, please call 9723-9255-9255. Cohen and Yifrach.
Speaker Change: In Israel. Please call 039 to 55938 and internationally. Please call nine seven to three nine to 55938.
Yaffa Cohen Ifrach: Please go ahead. Thank you, Yoni, and thank you everyone for joining our call today. We really look forward to discussing our first quarter results on our next, our second quarter results on our next earning call. And of course, as usual, we welcome you to contact us if you have any further. Thank you all for joining. Thanks.
Speaker Change: Please go ahead.
Tony: Thank you Tony and thank you everyone for joining our call today, we really look forward to discussing our first quarter results on our next our second quarter results on our next earnings call.
Speaker Change: As usual, we welcome you to contact US if you have any further questions.
Tony: You all for joining.
Tony: Thank you. This concludes the sapiens International Corporation first quarter 2025 results Conference call. Thank you for your participation you May go ahead and disconnect.
Operator: This concludes the Sapiens International Corporation first quarter 2025 results conference. Thank you for your participation. You may go ahead and disconnect.
Tony: Okay.
Tony: [music].
Operator: Thanks for watching!