Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q2 2023 Earnings Conference Call August 14, 2023 9:00 AM ET
Company Participants
Guy Bernstein - Chief Executive Officer
Asaf Berenstin - Chief Financial Officer
Yuval Lavi - Chief Technology Officer
Conference Call Participants
Chris Reimer - Barclays
Maggie Nolan - William Blair
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2023 Second Quarter Financial Results Conference Call. Magic’s Second Quarter 2023 earnings release was issued before the market opened this morning, and it has been posted on the company’s website at www.magicsoftware.com. [Operator Instructions] With us on the line today are Magic’s CEO, Mr. Guy Bernstein, Magic’s CFO, Mr. Asaf Berenstin, and Magic CTO, Mr. Yuval Lavi.
Before we start, I would like to remind everyone that this conference call may contain projections or other forward-looking statements. 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. 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 morning. A replay of this call will be available after the call on our Investor Relations section of the company website.
I will now turn the call over to Mr. Asaf Berenstin, CFO of Magic Software. Please go ahead.
Asaf Berenstin
Thank you, Yoni and thank you everyone for joining us today as we report our second quarter 2023 financial results. During the call today, I will review highlights from our second quarter results and provide an overview of our achievements. We appreciate your continued support and look forward to sharing our progress with you. Revenues in the second quarter of 2023 increased to $137.6 million, up 0.4% from the second quarter of 2023 – of 2022. The currency headwind on revenues is significant compared to the second quarter of last year. On a constant currency basis, calculated based on average currency exchange rate for the 3 months ended June 30, 2022, revenues for the second quarter of 2023 would have increased by 4.4% to a record-breaking second quarter result of $143 million.
Even when compared to the previous quarter of this year on a constant currency basis, calculated based on average currency exchange rates for the 3 months ended March 31, 2023, our revenues in Q2 2023 would have been $1.8 million higher than the reported one, reaching $139.4 million. These results demonstrate the continued growing investments made by enterprises and organizations worldwide even during the COVID challenging macroeconomic climate, to leverage their digital technologies and cloud-based platforms, creating high demand for our innovative software solutions and services, which together with the outstanding execution by our teams led to another quarter of solid performance recorded across our businesses. We continue to see exciting opportunities and growth potential in the dynamic realm of cloud technology and managed services.