Q1 2025 Magic Software Enterprises Ltd Earnings Call
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Operator: Subscribe to AllVisuals4U for more videos on Superbients oops, I almost forgot to show Ladies and gentlemen, thank you for standing by.
Speaker Change: Ladies and gentlemen, thank you for standing by welcome to the Magic software Enterprises 2025 first quarter financial results Conference call. At this time all participants are at present in listen only mode.
Operator: Welcome to the Magic Software Enterprise 2025 First Quarter Financial Results Conference Call. At this time, all participants are at present in listen-only mode.
Operator: A brief question and answer session will follow the formal presentation. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded.
Speaker Change: Brief question and answer session will follow the formal presentation for operator assistance. During the conference. Please press Star Zero as a reminder, this conference is being recorded with US on the line today are magic's CEO, Mr. Guy Bernstein, Magic's CFO, Mr. Asaf Bernstein, Magic's VP of technology and innovation.
Operator: With us on the line today are Magic CEO, Mr. Guy Bernstein, Magic CFO, Mr. Asaf Bernstein, and Magic VP of Technology and Innovation, Mr. Yuval Lavi. Magic First Quarter 2025 earnings release was issued before the market opened this morning and it has been posted on the company's website at www.magicsoftware.com. Before we start, I'd like to remind everyone that this conference call may contain projections or other forward-looking statements.
Speaker Change: I'm sure you've all Avi Magic first quarter of 2025 of earnings release was issued before the market opened this morning, and it has been posted on the company's website at Www Dot Magic software dotcom.
Speaker Change: Before we start I'd like to remind everyone that this conference call may contain projections or other forward looking statements and the safe Harbor provision provided in the press release issued today also applies to the content of this call magic expressly disclaims any obligation to update or revise any of these forward looking statements whether because of.
Operator: The safe harbor provision provided in the press release issued today also applies to the content of this call. Magic 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 views or expectations or otherwise.
Speaker Change: Sure events, new information a change in its views or expectations or otherwise also during the course of today's call management will refer to non-GAAP financial measures a reconciliation schedule showing GAAP versus non-GAAP results has been provided in the press release issued before the market opened this.
Operator: Also, during the course of today's call, management will refer to non-GAAP financial measures. A release issued before the market opened this morning.
Operator: A replay of this call will be available after the call on our investor relations section of the company's website.
Speaker Change: Morning.
Speaker Change: Replay of this call will be available.
Speaker Change: After the call on our Investor Relations section of the company's website I will now turn the call over to Mr. Asaf Bernstein <unk> CFO of Magic software. Please go ahead.
Asaf Bernstein: I will now turn the call over to Mr. Asaf Bernstein, CFO of Magic Software. Please go ahead. Thank you, operator. And thank you everyone for joining us today as we report our first quarter 2025 financial During the call today, I will review highlights from our first quarter results and provide an overview of our outcomes. Revenue in the first quarter of 2025 increased to a first-quarter all-time record of $147.3 million, up approximately 12.7% from the first quarter of 2024. This quarter showcased solid execution, with Israel delivering year-over-year double-digit growth of 17.7% and sequential growth of 11.3% with more than 80% organic, Our North American operation increased by approximately 11.1%, resulting from the addition of theories acquired in April 2024.
Asaf Bernstein: Thank you operator, and thank you everyone for joining us today as we report on.
Speaker Change: First quarter of 2025 financial results.
Speaker Change: During the call today I will review our alerts from our first quarter results and provide an overview of our outlook.
Speaker Change: Revenue in the first quarter of 2025 interest where first quarter all time record the whole when I've been at $47 $3 million up approximately 27% from the first quarter of 2024 this quarter showcased solid execution with you from delivering year over year.
Speaker Change: Growth of 17, 47% and sequential growth of 11, 3% with more than 80% organic primarily resulted from strong demand for our cloud Dev ops and AI services, along with continued strong demand for our services in the defense sector.
Speaker Change: North American operation.
Speaker Change: Ultimately 11, 1%, resulting from the addition of theories.
Speaker Change: Acquired in April 2024, excluding so you raise revenues in North America remains stable and what they use Margaret that's you have to show a full recovery, we anticipate positive momentum fueled by economy.
Asaf Bernstein: Excluding theories, revenues in North America remain stable, and while the U.S. market has yet to show a full recovery, we anticipate positive momentum fueled by economic improvement. We are confident that we are on the right path and momentum is building. We continue to plow forward with a worldwide dedication and confidence that we can continue to execute on sales of a world-class suite of products and in providing related services. Our AI, low-code, no-code, and service offerings are critical as customers continue to automate and digitize their systems and products, and while some of our U.S. customers were and may still be facing macro and company-specific challenges, the improvement in our top-line results reflect that the vast majority of our customers continue to value our unique proposition and resume to engage us to an increasing degree as a preferred partner for innovative digital transformation initiatives.
Speaker Change: And.
Speaker Change: We are confident that we are on the right path and momentum is building.
Speaker Change: We continue to plow forward without worldwide dedication and confidence that we can continue to execute on favor of a world class suite of products and providing related services.
Speaker Change: Low code no code and service offerings, our customers continue to automate and digitize their systems and products and when some of our U S customers were in may seem to be facing macro and company specific challenges.
Speaker Change: Movement in our top line results reflect the vast majority of our customers continue to value our unique proposition and leaves you to engage us to an increasing degree of their preferred partner for you know very people do done transformation initiative.
Asaf Bernstein: As we look at our business, we see that we continue to leverage our digital technologies and cloud-based platforms to create strong demand for innovative software solutions and services. We similarly continue to see excellent execution by our teams, together with exciting opportunities and growth potential in the dynamic realm of cloud technology, managed services, and AI. At Magic, we are redefining how organizations harness generative AI. As AI transforms industries and everyday life, we are leading the charge, revamping our internal operations, reimagining our products, and delivering next-generation services to our With over 200 projects across more than 20 industries and a dedicated team of more than 30 specialists, we provide a one-stop-shop for successful Gen-AI adoption.
Speaker Change: As we look at our business, we see that we continue to leverage our technologies and cloud based platform to create strong demand for our innovative software solutions and services. We similarly continued to see excellent execution by our teams together with exciting opportunities and growth potential in the dynamic realm of cloud technology managed services.
Speaker Change: In AI.
Speaker Change: Magic, we all give me finding how organization holiday generates either yeah, I'll say I transformed industries and everybody is an everyday lives we are leading the charge.
Speaker Change: Ramping going terminal operation re imagining our products and delivering next generation services to our customers.
Speaker Change: With over 200 projects across more than 20 industries and a dedicated team of holding especially as we provide a one stop shop for successful Gen AI adoption.
Asaf Bernstein: From proof-of-concept to full-scale production, our customers enjoy a 62% success rate, dramatically outperforming the industry average of just 12%, backed by more than 100 AI events and more than 10 strategic partnerships. We empower organizations in finance, healthcare, government, defense, and manufacturing to accelerate innovation, boost productivity, and stay ahead in the AI era. As Israel consistently ranks among the top 10 countries in the world in terms of private investment and R&D in the field of AI, and about 25% of Israeli high-tech companies are AI companies, we as well see AI, and especially generative AI, together with our skill set and experience as a great opportunity to increase our offering.
Speaker Change: From proof of concept for full scale production customers enjoy a 62% success rate.
Speaker Change: Particularly outperforming the industry average of just 12% backed by more than one I'm gonna they are events and more than 10 strategic partnership we empower organizations and finance health care and government defense and manufacturing to accelerate innovation boost productivity and stay ahead in the AI era.
Speaker Change: Are these very consistently ranks among the top 10 countries in the world in terms of private investment in R&D in the field of AI and about 25% of Israeli Hi Tech companies are they are companies, we have to we'll see a young and especially generating they are together with our skill set and experience as a great opportunity.
Speaker Change: To increase our offering.
Asaf Bernstein: On top of this, the Israeli government launched a multi-year government of AI leadership and independence, where Matrix IT has also a very big footprint. We believe that once and if the contemplated merger with Matrix IT, which we announced back in March, is concluded, together we will be a strong player in the public sector and other sectors in Israel.
Speaker Change: On top of these these are the government launched a multiyear government leadership and independence well my picks I T has also a very big footprint. We believe that one can easily the contemplated merger with matrix I T, which we announced back in March. He has concluded together, we will be a stronger a strong player in the <unk>.
Speaker Change: Public sector and other sectors anyway.
Asaf Bernstein: Proceeding to address our first quarter geographic revenue breakdown. In the first quarter of 2025, our revenues in North America increased by 11.1%, from $52.9 million to $58.7 million. Excluding M&A, our revenue in North America remained unchanged and accounted for 40% of our overall quarterly revenue. Revenue from the Israel operation amounted to $69.9 million, up by 17.7%, compared to $59.3 million reported on the same period last year. These demonstrate our strong performance in the region and reconfirms our long-term strategic decision to focus on mature, stable, and technology-driven sectors. Revenues from our Israeli operations accounted for 47% of our overall quarterly revenue.
Speaker Change: To address our first quarter geographic revenue breakdown in.
Speaker Change: In the first quarter was 2025, our revenues in North America increased by 11, 1% from 50, $952 $9 million to $58 7 million.
Speaker Change: Excluding them in many of our revenue in.
Speaker Change: North America remain unchanged and accounted for 40% of our overall quarterly revenues.
Speaker Change: Revenue from the Israeli Mod operation amounted to $69 $9 million up by 17, 7% compared to $59 3 million and reported on the same period last year.
Speaker Change: These demonstrate our strong performance in the region and he confirms our long term strategic decision to focus on mature stable and technology driven sectors.
Speaker Change: Revenues from our Israeli operations accounted for 47% of our overall quarterly revenues.
Speaker Change: Yeah.
Asaf Bernstein: Turning to profitability, Arnold Gap's gross margin for the first quarter of 2025 was 28.5% of revenues, amounting to $41.9 million. This compares to a gross margin of 29.3% or $38.3 million recorded in the corresponding quarter of 2024. The fluctuation in our gross margin is primarily attributable to the composition of our revenue mix and the timing of renewals of our term-based software license agreements. In the current fiscal year, these renewals are predominantly scheduled for the fourth quarter and, to a lesser extent, the third quarter, in contrast to the first and second quarters of the prior year.
Speaker Change: Turning to profitability our non-GAAP.
Speaker Change: Gross margin for the first quarter of 2025 was 28 five per sample revenues amounted to $41 9 million. This compares to a gross margin of 29, 3% or $38 3 million recorded in the corresponding quarter of 2024.
Speaker Change: The fluctuation in our gross margin is primarily attributable to the composition of our revenue mix and the timing of when you have a term based software license agreements in the Cowen excuse me got to you. These are the new ones are predominantly scheduled for the fourth quarter and to a lesser extent the third quarter in contrast to the first and second.
Speaker Change: Quarters of the prior year.
Asaf Bernstein: The breakdown of our revenue mix for the first quarter of 2025 was approximately 17% related to our software solutions with a gross margin of approximately 62% and 83% related to our professional services with a gross margin of approximately 21.5%. This is compared to 18% related to our software solutions, with a gross margin of approximately 64%. and 82% related to our professional services with a gross margin of approximately 32% in 2024 as a whole. Our non-GAAP operating income for the first quarter of 2024 increased by 1.9% to $18.5 million compared to $18.5 million in the same period last year.
Speaker Change: The breakdown of our revenue mix for the first quarter of 2025 was approximately 17% related to our software solutions with a gross margin of approximately 62% and 83% related to our professional services with a gross margin of approximately 21, 5%.
Speaker Change: This is compared to 18% related to our software solution with a gross margin of approximately 64%.
Speaker Change: And 82% related to our professional services with a gross margin of approximately 22% in 2024 as a whole.
Speaker Change: Our non-GAAP operating income for the first quarter of 2024, it increased by one 9% to $18 5 million compared to $18 5 million in the same period last year.
Asaf Bernstein: financial expenses. During the first quarter, we had financial expenses of $600,000 compared to $1.5 million. The decrease in our financial expenses was mainly attributed to the continued decrease of our overall financial debts during 2024 and in the first quarter of 2025, from $78 million as of March 31, 2024, to $56 million as of March 31, 2025. Net Income Attributed to Non-Controlling Interests As our business combination model occasionally relies on keeping former shareholders in acquired entities as minority stakeholders, in addition to their managerial role in such entities, we are allocating a portion of our net income to these minority shareholders.
Speaker Change: Financial expenses during the first quarter, we had financial expenses of $600000 compared to $1 5 million.
Speaker Change: Did you can see in our financial expenses was mainly attributed to the continued decrease of a whole the whole financial debt. During 2024 in the first quarter of 'twenty five 'twenty five for the 78 million as of March 31, 2024 to 56 million as of March 31 2025.
Speaker Change: Net income attributable to Noncontrolling interests as a business combination model occasionally relies on keeping former shareholders and acquired entities of minority stake hold up in addition to them on a journey down the hall in such entities.
Speaker Change: Locating a portion of it might be even come to DS or minority shareholders. non-GAAP net income attributable to controlling interest increased to $2 4 million compared to $1 6 million for the same period last year.
Asaf Bernstein: Non-Gap Net Income Attributed to Controlling Interests increased to $2.4 million compared to $1.6 million for the same period last year. Our non-gap net income for the first quarter increased by 8.3% to $12.2 million or $0.25 per fully diluted share, compared to $11.3 million or $0.23 per fully diluted share. Turning now to the balance sheet, as of March 31st, 2025, cash and cash equivalents and short-term bank deposits amounted to approximately $105 million, compared to $112.8 million as of December 31st, 2024. Our total financial debt as of March 31st, 2025 amounted to approximately $56.3 million, compared to $59.3 million as of December 31st, 2024.
Speaker Change: On a non-GAAP net income for the first quarter increased by eight 3% to $12 2 million or 25 cents per fully diluted share compared to $11 3 million or 23 cents per fully diluted share.
Speaker Change: Turning now to the balance sheet.
Speaker Change: March 31st 2025, cash and cash equivalents and short term bank deposits amounted to approximately $105 million compared to one other than $12 million as of December 31st 2024.
Speaker Change: Total financial debt as of March 31st 2025 amounted to approximately $56 3 million compared to $59 3 million.
Speaker Change: At December 31st 2024 or.
Asaf Bernstein: On January 8, 2025, in accordance with our dividend policy, we paid our shareholders a cash dividend of approximately $11.6 million, or $0.236 per share, for the first half of 2024. In addition, on May 8, 2025, in accordance with our dividend policy, we paid our shareholders a cash dividend of approximately $16.1 million, or $0.327 per share, for the second half of 2024. Altogether, these two payments accounted for 75% of our 2024 distributable profits. Cash flow from operating activities for the first quarter of 2025 amounted to $14.9 million compared to $27.7 million in the corresponding period of 2024.
Speaker Change: Generally 8025 in accordance with our dividend policy, we paid out shareholder dividends of approximately $11 6 million or 23 six cents per share for the first half of 2024.
Speaker Change: Michigan on May eight 2025.
Speaker Change: All of this without dividend policy, we paid our shareholders a cash dividend of approximately $16 1 million or 30.
Speaker Change: $32.07 per share for the second half of 2020 full altogether. These two payments accounted for 75% of our 2020, followed Beasley beautiful.
Speaker Change: Cash flow from operating activities for the first quarter of 2025 amounted to $14 9 million compared to 27 7 million in the corresponding period of 2020 full for.
Asaf Bernstein: For the 12-month period ended March 31, 2025, cash flow from operating activities totaled $62.1 million compared to $74.8 million for the year ended December 31, 2024. The decline in our first quarter cash flow from operating activities primarily reflects our increased investment in working capital to support our revenue growth trajectory. This is particularly evident in our record-setting top-line performance, with first quarter revenues reaching an all-time high. These dynamics do not reflect a deterioration in our underlying performance. On the contrary, both operating income and net income increased compared to the same period last year. We expect cash conversion to normalize over the coming quarter.
Speaker Change: For the 12 months period ended March 31, 2025 cash flow from operating activities totaled $62 1 million compared to $74 8 million for the year ended December 31st 2024.
Speaker Change: The decline in our first quarter cash flow from operating activities, primarily reflects our increased investment in working capital to support our revenue growth trajectory.
Speaker Change: This is particularly evident in our record setting topline performance with first quarter revenues, reaching an all time high.
Speaker Change: These dynamics do not reflect a deterioration in our underlying performance on the contrary both operating income and net income increased compared to the same period last year, we expect cash conversion to normalize over the coming quarters.
Asaf Bernstein: Turning to our guidance for 2025, we continue to observe healthy demand across our markets and are building a strong and growing pipeline that supports our expectations for sustained growth throughout the year. Accordingly, we reiterate our full year 2025 revenue guidance in the range of $593 million to $603 million, reflecting an anticipated year-over-year growth of 7.3% to 9.1%.
Speaker Change: Turning to our guidance for 2025, we continue to observe healthy demand across our markets and are building a strong and growing pipeline that supports our expectation for sustained growth throughout the year accordingly.
Speaker Change: Turning to our full year 2025 revenue guidance in the range of 593 million to $603 million.
Speaker Change: Collecting and anticipated year over year Gulf of seven three to nine 1%.
Asaf Bernstein: Looking ahead to the second quarter, we wish to highlight a calendar-driven operational factor. Due to the timing of the Passover holiday in 2025, the second quarter will include approximately 4.5 fewer billable days compared to the first quarter, equivalent to a reduction of about 7% in the time and material billable capacity in an Israeli operation. These dynamics represent a temporary headwind to operational activity in the period. While the precise impact on the financial result may vary and could be partially mitigated by other aspects of our business performance, we believe it is important to acknowledge this factor in the contents of our ongoing operations.
Speaker Change: Looking ahead to the second quarter, we wish to highlight the calendar driven operational factors due to the timing of the peso the holiday in 2025. The second quarter will include approximately $4 five fewer billable days compared to the first quarter.
Speaker Change: We went into a reduction of about 7% in the diamond material being a bit of capacity.
Speaker Change: Daily Operation These dynamics represent a temporary headwind to operational activity in the period, while the precise impact on the financial results may vary and could be partially mitigated by other aspects of our business performance. We believe it is important to acknowledge these factor in the context of our ongoing operation.
Asaf Bernstein: In conclusion, I would like to reiterate the announcement made in March regarding the signing of a Memorandum of Understanding to enter into a negotiation with the contemplated merger of Magic into Matrix. This proposed transaction represents a significant inflection point in our corporate journey. one that holds the potential to be transformative for both organizations. The contemplated merger is expected to combine the strengths of two well-established technology leaders, creating a more diversified and resilient global IT service provider. The combined entity would possess enhanced capabilities to serve a broader range of customers across geographies and industries. partner Accelerated Innovation and deliver sustainable long-term value to shareholders.
Speaker Change: In conclusion, I would like to reiterate the announcements made in March regarding the signing of a memorandum of understanding to enter into a negotiation with the contemplated merger of magic into matrix gets proposed transaction represents a significant inflection point in our corporate journey.
Asaf Bernstein: Warmed up holds the potential to be comfortable maybe for both organizations.
Speaker Change: Complementing the contemplated merger is expected to combine the strengths of two well established technology leaders, creating a more diversified and resilient global service providers. The commander of the combined entity will possess enhance capabilities to serve a broader range of customers across geographies and industries.
Asaf Bernstein: Boxer accelerated into innovation and deliver sustainable long term value to shareholders. We.
Asaf Bernstein: We are currently advancing through the execution phase of the transaction and anticipate its completion during the first quarter of 2025, subject to the satisfaction of customary closing conditions including the receipt of all necessary regulatory approvals. Following completion, we believe the merger entity will be strategically positioned to broaden its customer base, deepen its technology offerings, and expand its market presence. We remain confident in the strategic rationale behind this initiative and are energized by the opportunities it presents as we continue to pursue long-term growth and value creation.
Speaker Change: We are currently advancing through the execution phase of the transaction and anticipate its completion during the first quarter of 2025 subject to the satisfaction of customary closing conditions, including the receipt of all necessary regulatory approvals.
Speaker Change: Following completion, we believe the merger empathy will be strategically positioned to broaden its customer base deepening its technology offerings and expand its market presence.
Speaker Change: We remain confident in the strategic rationale behind this initiative and I'm energized by the opportunities. It presents as we continue to pursue long term growth and value creation.
Operator: I will now turn the call over to the operator for questions. Thank you.
Speaker Change: I will now turn the call over to the operator for questions.
Speaker Change: 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 two you are using speaker equipment kind of lift the handset before pressing the numbers questions will be pulled in the order. They are a seat. Please standby while we poll for your questions.
Operator: Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press star 1. If you wish to cancel your request, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be polled in the order they are received. Please stand by while we poll for your question.
Chris Reimer: The first question is from Chris Reimer of Barclays, please go ahead. Thanks for taking my questions and congratulations on a strong quarter. I was wondering if you could comment, you mentioned on the press release and in your comments, indications that momentum is changing in the U.S. and there may be some initial coming back to the table. Can you give a little color on what exactly you're seeing, is that new customers, is anything helpful? Basically we were influenced by existing customers and what we currently see and we have around Thank you Second half of 2023 will be a significant reduction in operation Now we see we have four consecutive quarters that were pretty stagnant and now this first quarter that we see a change we are starting to see an upward trend The deal is flowing in.
Speaker Change: The first question is from Chris Reimer of Barclays. Please go ahead.
Chris Reimer: Yeah, Hi, Thanks for taking my questions and congratulations on strong quarter.
Speaker Change: I was wondering if you could comment you mentioned on the press release and in your comments.
Speaker Change: Any indications that momentum is changing in the U S and there may be some initial.
Speaker Change:
Speaker Change: Coming back to the table can you give a little color on what exactly you're seeing is that new customers is that current customers expanding a little bit.
Speaker Change: Anything helpful.
Speaker Change: Thinking more ethics, we see.
Speaker Change: And again this was basic.
Speaker Change: Basically we were influenced by existing customers and what we currently see and we have alone.
Speaker Change: 400 customers in the U S market. So when we look at our when we look at most of them, especially the bigger and bigger part of our customers the ones that the council the significant portion of our business and we see either an improvement or we continue to see some stigma stagnant in the operations. So we've got to Aspen after experiencing.
Speaker Change: And second half of 2023, a significant reduction in the operation after that now we see that we have four consecutive quarters.
Speaker Change: Pretty stagnant and now first quarter that we see a change and we're starting to see an up you know.
Speaker Change: Zynga game.
Speaker Change: Deal is slowing we see it as a positive sign two continued expansion during the second half of the year.
Asaf Bernstein: We see it as a positive sign to continued expansion during the second half of the year.
Asaf Bernstein: got it and operating margin this quarter just a little bit lower than historically is that due mainly to higher payrolls or is there any other trends working there? As you know, 17-18% of our business is based on software, software solutions, where we sell term-based licenses. Between the years, there is, you know, the timing, different timing when, of the renewal of such transactions, especially those that refer to the more large customers. In 2025, Q3 to a lesser extent, but to more extent and more significantly Q4, as I mentioned, will have the significant amount of renewals compared to 2024, where it was more concentrated during the first and the second quarter.
Speaker Change: Got it and operating margin. These are just a little bit lower than historically.
Speaker Change: That's due mainly to higher.
Speaker Change: Or how your payrolls or is there any other trains working there.
Speaker Change: So have you as you know 80, 17% to 18% of our business is based on <unk> software solution.
Speaker Change: Where we sell term based licenses between the years as you know the timing is different timing of the renewals.
Speaker Change: Such transaction, especially those that refer to the mall large customers. These things in 2025 in Q3 to a lesser extent, but to more extent and most significantly in Q4 as I mentioned, we'll have the significant amount of renewals compared to 2024, where it was more concentrated in doing that.
Speaker Change: First in the second quarter.
Asaf Bernstein: So that, you know, reduces a bit our gross margins at the beginning of the year, which I anticipate to continue improving. Got it. Thank you.
Speaker Change: No doubt and you know.
Speaker Change: It uses a bit of a gross margins at the beginning of the year, which I anticipate to continue improving and to be able to over 29%. So something between the 29 21, 521 29, 2% gross margin.
Speaker Change: Got it. Thank you that's it for me.
Operator: That's it for me. If there are any additional questions, please 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, Mr. Bernstein would you like to make your concluding statement.
Guy Bernstein: Mr. Bernstein, would you like to make a concluding statement? Thank you everyone for joining one more call, we hope to bring you some more good news. Thank you.
Speaker Change: So thank you everyone for joining one more call we hope to do to bring in some more good news in the next quarter. Thank you very much.
Speaker Change: Thank you. This concludes the magic software Enterprises L. T. D 2025 first quarter results conference call. Thank you for your participation you May go ahead and disconnect.
Operator: This concludes the Magic Software Enterprises LTD 2025 First Quarter Results Conference Call. Thank you for your participation. You may go ahead and disconnect.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.