Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q3 2023 Earnings Conference Call November 14, 2023 9:00 AM ET

Company Participants

Asaf Berenstin - Chief Financial Officer

Guy Bernstein - Chief Executive Officer

Conference Call Participants

Chris Reimer - Barclays

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2023 Third Quarter Financial Results Conference Call. Magic’s third 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. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [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 projections or other forward-looking statements may be provided on this conference call. 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, operator, and thank you everyone for joining us today as we report our third quarter 2023 financial results. During the call today, I will review the highlights from our third quarter results and provide an overview of our outlook. Revenue in the third quarter of 2023 decreased to $129.5 million, down approximately 10% from the third quarter of 2022.

As we already mentioned, during the conference call for the second quarter results of operations, the effect of the currency fluctuations on our revenues over the course of the year is significant compared to the corresponding quarter of last year. On a constant currency basis, calculated based on average currency exchange rates for the three months ended September 30, 2022, revenues for the third quarter of 2023 would have decreased by approximately 6% compared to the third quarter of 2022 to $135.3 million, $5.5 million higher than our reported revenue figure for the quarter.