Overview
Sapiens Q3 revenue grows 11.2% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beats consensus, reflecting strong operational performance
Company to be acquired by Advent for $43.50 per share, valuing it at $2.5 bln
Outlook
Company will forgo Q3 2025 earnings call due to acquisition agreement by Advent
Sapiens focuses on accelerating cloud adoption and expanding global footprint
Company sees AI-driven innovation as a catalyst for sustainable growth
Result Drivers
GEOGRAPHIC EXPANSION - Revenue growth driven by double-digit expansion in North America and Rest of the World markets
ARR GROWTH - Annualized recurring revenue increased 26.7% year-over-year, with 17.5% organic growth and 9.2% from acquisitions
AI-DRIVEN INNOVATION - Insurance platform empowers digital transformation and operational efficiency, fueled by AI-driven innovation
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $152.30 mln | $148.20 mln (3 Analysts) |
Q3 Adjusted EPS | Beat | $0.36 | $0.35 (3 Analysts) |
Q3 EPS | $0.25 | ||
Q3 Adjusted Net Income | Beat | $20.50 mln | $20.20 mln (3 Analysts) |
Q3 Adjusted Operating Income | Beat | $25.50 mln | $23.70 mln (3 Analysts) |
Q3 Adjusted Gross Margin | 46.40% | ||
Q3 Adjusted Gross Profit | $70.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Sapiens International Corporation NV is $37.25, about 16% below its November 12 closing price of $43.20
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nPnccrpzQa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)