The software company Sapiens, which is traded on the NASDAQ and Tel Aviv stock exchanges and is part of the Formula Systems group, today reported its financial results for the first quarter of 2022.
The company’s revenue (Non-GAAP) in the first quarter of 2022 grew by about 6.8% to $ 117.7 million, compared to $ 110.2 million in the corresponding quarter last year.
Non-GAAP operating income for the quarter increased by approximately 9.3% to approximately $ 20.8 million, compared to approximately $ 19.0 million in the corresponding quarter last year.
The rate of operating profit (Non-GAAP) in the quarter rose to about 17.6%, compared to about 17.2% in the corresponding quarter last year.
Net income for the Company’s shareholders (Non-GAAP) increased in the quarter by approximately 16.0% to approximately $ 17.3 million ($ 0.31 per fully diluted share), compared to approximately $ 14.9 million ($ 0.27 per fully diluted share) in the corresponding quarter last year.
Roni Al-Dor, President and CEO of Sapphire: “We open 2022 with strong results, as reflected in non-GAAP revenue of approximately $ 117.7 million and a non-GAAP operating profit margin of 17.6% in the first quarter of 2022. These results Reflect our ability to continue to grow, alongside improving profitability. In Europe and the APAC region we continue to grow with new customers and in North America we see a positive improvement. At the same time, we continue to invest in our products and this is reflected in our branding and the backlog.
We approve the revenue forecast for 2022 in the range of $ 495-500 million and raise the forecast for operating profitability in 2022 from a range of 17.0% -17.3% to a range of 17.4% -17.6%.
Sapphire continues to share with its shareholders the company’s achievements. We announced today that the Company’s Board of Directors has approved a cash dividend distribution of approximately $ 25.9 million (approximately $ 0.47 per share) – a distribution that reflects our confidence in business operations and our ability to generate positive cash flow.
This distribution is in accordance with the dividend distribution policy, according to which the company will distribute up to 40% of the non-GAAP annual net profit. The dividend will be paid on May 25, 2022 to registered shareholders on May 17, 2022. The dividend amount is subject to withholding tax at an Israeli rate of approximately 25% for both Israeli individual shareholders and non-Israeli shareholders, and in accordance with the determining date for distribution. In this regard, we have now approved a change in the dividend distribution policy, according to which the company will distribute a semi-annual dividend – a change that reflects our confidence in creating a positive cash flow. “
Sapphire (NASDAQ and TASE: SPNS) enables entities in the financial sector, with a focus on insurance, to transform and become digital, innovative and fast. With over 35 years of industry expertise, Sapiens offers a comprehensive insurance platform, which includes pre-integrated, low-code solutions and a cloud-supported approach that accelerates customers’ digital transformation process. Sapiens has more than 600 customers in 30 countries, and offers insurers in the fields of property and casualties, workers’ compensation and life, the most comprehensive set of solutions, for core products and complementary products, including solutions for reinsurance, financial and compliance, data and analysis, digital and decision management.