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| Statement |
|---|
| Our pipeline and backlog coming into 2024 are strong across all of our product lines, including P&C and lifetime and pension delivered in SaaS model |
| In summary, our regional performance in EMEA and North America and strong momentum in fourth quarter as we exited 2023 position us well for continued growth and success in 2024 |
| In 2023, revenue increased by 8.4% and operating profit rose by 12.8% |
| 2023 was the year in which Sapiens successfully executed our growth strategy across both our regions and our product categories |
| On a regional basis, Europe was impressive 10.5%, North America achieved growth of 7.4% |
| Our annual operating margin was a robust 18.3%, reflecting our continuous commitment to operational efficiency and prudent financial management |
| We are extremely pleased by the overall growth and the growth rate of recurring software products and reocurring post-production revenue |
| First, as promised, our North America business has experienced robust growth and we are well positioned to sustain this growth in 2024 |
| We have several products, thinking with the workers’ comp, we're in a leading position in the reinsurance, we are leading position in the last few years, we see much stronger on the life and the competition is not as difficult |
| And also from cross-sell opportunity, this is a significant improvement from 2022, the number of cross-sell opportunity, additional product to existing customer also grew well, right now very close to almost 30 new deals in 2023, together, new logo and cross-sell opportunity deals |
| Second, we successfully introduced the global customer care engagement model, which is playing a pivotal role in enhancing our customer relationship and creating stronger connection with our client |
| Furthermore, we achieved significant increase in both new and cost sales, showcasing our ability not only to retain existing clients but also to attract new ones |
| This position us favorably to maintain momentum, secure new deals and expand our presence in these markets |
| This expansion is testament to our commitment to growth and increasing recognition of our value proposition in the insurance market |
| So overall, both of these categories will grow faster than the company growth going forward |
| Both of these verticals, the ARR and product and post production services, will grow faster than the company growth |
| We extended our profitability by improving our growth margin by 40 basis points and reducing our operational expenses margin by 40 basis point also |
| We believe this strategic decision will better serve the company long term growth and improve our recurring revenue and shift more revenue to ARR |
| We delivered revenue growth for the year, surpassing the $0.5 billion mark and healthy increase in our operating profit of almost 12.8% to achieve an operating profit margin of 18.3%, demonstrating our ability to profitably scale our business |
| We are particularly excited about the momentum we have experienced in the life segment in North America and are committing to capitalize on this growth opportunity |
| This resulted in an 80 basis point improvement in our operating margin |
| 2023 was the year of growth and profitability highlighted by accelerating growth in North America and continued growth in Europe and rest of the world |
| We are confident that we can continue to both grow our business and further improve our gross margin |
| Our strong performance in 2023 and strategic initiatives position us well for continued growth and success |
| I'm happy to report that in fourth quarter of 2023, Sapiens again delivered strong growth and resilience |
| Furthermore, we anticipate continued momentum and growth in cross selling opportunity within our existing accounts across all regions throughout 2024 |
| Additionally, our traditional territories in EMEA and APAC are showing significant growth potential, particularly in the life and pension and P&C space |
| Over the past few years, we have successfully managed to increase our revenue while improving our profit and margin |
| As mentioned in the previous call, we believe that the APAC region, which has experienced growth and has shown our successful land and expand strategy will be additional growth catalyst for Sapiens in the near future |
| GPF is the first Nordic customer to go live with CoreSuite, which will expand the insurers’ digital capability, boost its leading market position |
| Statement |
|---|
| Revenue in rest of world, which includes South Africa and APAC, was $10.8 million, a decline of 8.3% compared to prior year quarter due to customer phase one go-live in APAC |
| It was couple of years of slowing down based on many delivery challenges and to continue to develop our product suite |
| So more competition on the P&C |
| We expect the impact of our annual growth rate due to the change to be around 1% headwind to revenue |
| The overall blended is about 50 basis points down |
| But we, in Sapiens, we have a huge client base but we also believe that we must need to continue to bring new business |
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