Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q1 2022 Earnings Conference Call May 12, 2022 10:00 AM ET
Company Participants
Guy Bernstein - Chief Executive Officer
Asaf Berenstin - Chief Financial Officer
Yuval Lavi - Vice President, Technology and Innovation
Conference Call Participants
Tavy Rosner - Barclays
Operator
Welcome to Magic Software Enterprises 2022 First Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
With us on the line today are Magic’s CEO, Mr. Guy Bernstein; Magic’s CFO, Mr. Asaf Berenstin; and Magic VP of Technology and Innovation, Mr. Yuval Lavi. Magic quarterly earnings release was issued before the market opened this morning and it has been posted on the company’s website at www.magicsoftware.com.
Before we start, I would like to remind everyone that this conference 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 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 Magic Software’s Investor Relations section of the company’s website.
I will now turn the call over to Mr. Asaf Berenstin, CFO of Magic Software. Please go ahead.
Asaf Berenstin
Thank you, operator and thank you everyone for joining us today as we report our first quarter 2022 financial results. During the call today, I will give you highlights from our first quarter results and provide an overview of our achievements.
Magic delivered its strongest start ever to the year with first quarter revenue increasing by 29% year-over-year to $138.7 million, exceeding market expectations. The global Magic team has successfully delivered on all fronts in Q1 across all our flagship geographies. The organic revenue growth was 20.4%, with a balance of 8.9%, resulting from the consolidation of acquired subsidiaries. This achievement delivered a 26% year-over-year increase in our non-GAAP operating income, amounting to $18.9 million with an operating margin of 13.6% compared to 13.9% operating margin for the full year of 2021.
Magic Software is a global company, operating across multiple markets and offering broad IT software services supported by its proprietary technology. Our strategy allows us to balance our growth, resources, investments and risk across regions and markets. Our solid execution in the first quarter validates our strategy of building a broad business portfolio, which provides the foundation for our sustained solid performance in growth as we continue supporting our customers through their digital transformation journey based on our long-term engagement cycle.