Sapiens International Corporation N.V. (NASDAQ:SPNS) Q4 2023 Results Conference Call February 20, 2024 9:30 AM ET

Company Participants

Yaffa Cohen-Ifrah - Chief Marketing Officer and Head of IR

Roni Al-Dor - President and CEO

Roni Giladi - CFO

Alex Zukerman - Chief Strategy Officer

Conference Call Participants

Dylan Becker - William Blair

Kevin Kumar - Goldman Sachs

Alexei Gogolev - JP Morgan

Chris Reimer - Barclays

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Sapiens International Corporation's 2023 Fourth Quarter and Full Year Financial Results Conference Call. Sapiens issued a press release before the market opened this morning and it has been posted on the company's Web site at www.sapiens.com [Operator Instructions]. I would now like to hand the call to Ms. Yaffa Cohen, Sapiens’ Chief Marketing Officer and Head of Investor Relations. Yaffa, would you like to begin?

Yaffa Cohen-Ifrah

Thank you, operator. I would like to welcome all of you to Sapiens’ conference call to review our fourth quarter and full your results for 2023. With me on the call today are Mr. Roni Al-Dor, President and CEO; Mr. Roni Giladi, CFO; and Mr. Alex Zukerman, Chief Strategy Officer. Following the summary of the results, we will be available to answer any questions. Before we start, I would like to remind everyone that this conference call may contain projections or other forward-looking statements. The safe harbor provisions in the press release issued today also apply to the content of the call. Sapiens expressly disclaim any obligation to update or revise any of these forward-looking statements whether because of future events, new information, a change in its view or expectation or otherwise. On today’s call, we will refer to non-GAAP financial measures. A reconciliation of GAAP to non-GAAP results has been provided in our 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 Web site or via the Web site link, which is available in the earnings release we published today. I want to turn the call over to Roni Al-Dor, President and CEO of Sapiens. Roni?

Roni Al-Dor

Thank you, Yaffa. Thank you for joining us today. 2023 was the year in which Sapiens successfully executed our growth strategy across both our regions and our product categories. I'm happy to report that in fourth quarter of 2023, Sapiens again delivered strong growth and resilience. Let's dive into the details. I will start with highlights from 2023 and then review the fourth quarter performance. In 2023, revenue increased by 8.4% and operating profit rose by 12.8%. Our growth was distributed across the region we serve. 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.