Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q3 2024 Earnings Conference Call November 18, 2024 9:30 AM ET

Company Participants

Asaf Berenstin - CFO
Guy Bernstein - CEO

Conference Call Participants

Tavy Rosner - Barclays
Kate Kronstein - William Blair

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprise 2024 Third Quarter Financial Results Conference Call. Magic's third quarter 2024 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's CTO, Mr. Yuval Lavi.

Before we start, I would like to remind everyone that projections or other forward-looking statements maybe 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 the 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 third quarter 2024 financial results.

During the call today, I will review highlights of our third quarter results and provide an overview of our outlook. Revenue in the third quarter of 2024 increased to $143 million, up approximately 10.4% from the third quarter of 2023.

This quarter showcased solid execution with Israel delivering sequential double-digit growth of 12%, all organic, primarily resulted from: a, strong demand for our cloud, DevOps, AI services, along with continued strong demand for our services in the defense sector; and b, increase in billable days in the Israeli market, accounting for 11% due to the Jewish holiday season of Passover taking place in April of the second quarter. North America delivered sequential mid-single-digit growth of 1.5% with client sentiment in the U.S. remaining stable with no significant changes.