Sapiens stock declines on annual guidance cut, disappointing Q3 results By Investing.com
Sapiens International Corporation NV (NASDAQ: ) saw its shares fall more than 21% in market trading. Monday (NASDAQ:) after the company cut its annual revenue guidance and its Q3 results exceeded expectations.
In the third quarter, the insurance software maker posted Q3 earnings per share (EPS) of $0.33, below analyst expectations of $0.38. Revenue came in at $137 million, also below the consensus estimate of $140.38 million.
Adjusted gross margin stood at 45.8%, while adjusted operating income was $25.1 million, slightly down from $25.7 million.
“This quarter showed strong performance in our key regions. We are pleased to report that revenue reached $137 million this quarter, which represents an increase of 4.8% over the same period last year,” said Roni Al-Dor, President and CEO of Sapiens .
“Revenue growth was driven by 7.1% growth in our Europe region, 1.7% growth in North America and 6.6% growth in the ROW regions. Non-GAAP operating profit for the quarter reached $25 million, representing 18.3 % of all income.”
Looking ahead, Sapiens lowered its revenue guidance for fiscal year 2024, which now ranges between $541 million and $546 million, down from the previous range of $550 million to $555 million, and below the consensus estimate of $550 million. $552.7.
The company expects its non-GAAP operating margin to be in line with the guidance range at 18.2%.
