Sapiens International Corporation NV
Sapiens International Corporation NV — Q1 2025 Earnings Presentation
36 slides from Sapiens International Corporation NV's earnings presentation, May 8, 2025
Slide 1: Q1 2025 Investor Presentation
Q1 2025 Investor Presentation Roni Giladi, CFO Yaffa Cohen-Ifrah, CMO and Head of IR May 8, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain matters discussed in this presentation, that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private
Slide 3: Sapiens is the Most Comprehensive Insurance Software Platform in the Market
Sapiens is the Most Comprehensive Insurance Software Platform in the Market One-stop software solutions enabling the modern carrier experience Who What we are we do How Who The only truly global provider of intelligent, we do it purpose-built software Provide a suite of mission- critical solutions a
Slide 4: Sapiens at a Glance
Sapiens at a Glance (NASDAQ: SPNS) ~$542M 14% 600+ Revenue Revenue CAGR Customers (’12 – ‘24) $103M 19% 72% EBITDA EBITDA Recurring Margin & reoccurring $60B+ 38 Serving Global TAM Countries P&C and L&A (1) Figures represent 2024 actuals unless otherwise specified 4 (2) Retention for Recurring + Reo
Slide 5: Strong Market Demand as Insurers Seek New Solutions to Address Industry Challenges
Strong Market Demand as Insurers Seek New Solutions to Address Industry Challenges Increased Adapt to Evolving Customer Competition Regulatory Expectations Changes Replace Legacy IT InsureTech Constant Drive Demand for Digital Infrastructure for Efficiency Transformation 5 5
Slide 6: Sapiens is at the Center of a Large and Growing Market Opportunity
Sapiens is at the Center of a Large and Growing Market Opportunity Outdated insurers technology presents a MASSIVE market for Sapiens Massive Insurance IT Spend… …In Sapiens’ Core Markets… …Underpins an Incredible TAM Opportunity $208B $208B 4% Data Center 6% Devices $27B $60B $48B 12% Telecom P&C T
Slide 7: Sapiens Insurance Platform
Sapiens Insurance Platform Ecosystem Industry Content 70+ global Insurtech | Pre-configured products partners and solution and LOBs providers | Pre-integrated end-to-end 3rd-party business business processes applications (e.g., CRM, marketing automation, | Pre-configured persona- financial systems)
Slide 8: Sapiens is the Recognized Leader by Analysts
Sapiens is the Recognized Leader by Analysts Clear market recognition driven by Sapiens’ innovative product strategy and leadership NA L&A POLICY ADMIN SYSTEMS NA L&A (ILLUSTRATION) Celent Celent ‘Luminary’ ‘Luminary’ Designation Designation Breadth of Functionality Breadth of Functionality NORTH AM
Slide 9: Sapiens is the Recognized Leader by Analysts
Sapiens is the Recognized Leader by Analysts Clear market recognition driven by Sapiens’ innovative product strategy and leadership EMEA P&C POLICY ADMIN SYSTEMS APAC APAC P&CP&C POLICY POLICY ADMIN ADMIN SYSTEMS SYSTEMS Celent Celent ‘Luminary’ ‘Luminary’ Designation Designation Breadth of Function
Slide 10: Clear Growth Opportunities to Achieve Long-Term Vision
Clear Growth Opportunities to Achieve Long-Term Vision Execute on Actionable, Transformative M&A Opportunities Continued Shift to Cloud and Growth Potential Subscription Geographic Expansion Win New Logos Accelerate Cross-Sell Current 10
Slide 11: Cross-Sell: Massive Acceleration Opportunity
Cross-Sell: Massive Acceleration Opportunity Multi-directional cross selling opportunities across all customer tiers Across geographies Across products and services Data, Digital, Analytics, and Decision Business Applications Core P&C L&A Across customer tiers 11
Slide 12: Capture Market Share with New Logo
Capture Market Share with New Logo R&D Investment Accelerate Product Innovation Sales & Marketing Add Talent to Build New Logos Pipeline Acquire 20-30 Brand Building New Logos every year Trade Shows and Industry Analysts Geographies Penetrate new Geographies 12 15
Slide 13: Territory Snapshot
Territory Snapshot Nordics UK & DACH East Ireland Europe Poland South Iberia East Japan North Asia America Israel India Australia & New South South Zealand America Africa 13
Slide 14: Accelerate Cloud SaaS Transformation
Accelerate Cloud SaaS Transformation ers m stu g Co in xist g os E Lo w Ne 60% 28% 5 Years 2024 14
Slide 15: M&A: Proven Track Record of Successfully Integrating Businesses Globally
M&A: Proven Track Record of Successfully Integrating Businesses Globally A history of strategic acquisitions expands Sapiens’ portfolio, capabilities and technology, and increases our presence in high growth markets 2010 2014 2016 2018 2020 2022 2025 2011 2015 2017 2019 2021 2023 15
Slide 16: Financials
Financials Sapiens Proprietary & Confidential 16
Slide 17: A Compelling Financial Profile
A Compelling Financial Profile Double digit Recurring and Profit and Resilient 10-Year re-occurring margin balance sheet, Revenue CAGR revenue expansion cash generation 17
Slide 18: Revenue Growth Achieved Year-Over-Year
Revenue Growth Achieved Year-Over-Year Non-GAAP Revenues (USD Millions) +5.4% .9% +8.4% : 13 542.4 AGR +2.4 % 514.8 C +20.6% 463.6 474.8 +18.1% +12.2% 384.5 +6.7% 325.7 +25.8% 290.3 +20.6% 272 +13.8% +16.3% 216.2 +18.6% 179.3 157.5 135.4 114.2 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 19: Annual Revenue Growth - By Geography
Annual Revenue Growth - By Geography Non-GAAP Revenue (USD millions) 5% 10% 6% 7% 232.9 257.4 270 197.5 212.2 225.6 2% 4% 44.4 45.2 46.8 NA Europe* ROW 2022 2023 2024 • Europe includes UK, Nordics, Israel and rest of Europe • ROW includes Australia, Thailand, Singapore, Japan, India, Hong Kong, Maur
Slide 20: 2024 Annual Analysis: Unique Proposition
2024 Annual Analysis: Unique Proposition Multiple Segments Global Player By Market By Geography 5% 8% 25% 42% 50% 70% P&C L&A Other EUROPE North America ROW 20
Slide 21: Annual Operating Profit Growth
Annual Operating Profit Growth Non-GAAP Profit (USD millions) 4.8% 12.8% 2.5% 94 99 20% 30% 81 84 32% 68 52 40 2018 2019 2020 2021 2022 * 2023 2024 13.6% 16.0% 17.7% 17.6% 17.6% 18.3% 18.2% * 2022 Operating profit on a constant currency base is 89.7M USD 21
Slide 22: Q1 2025
Q1 2025 Sapiens Proprietary & Confidential
Slide 23: Q1 2025 Highlights
Q1 2025 Highlights Non-GAAP Q1 2025 Q1 2024 % Change Quarterly Highlights Revenue $136.1 $134.2 1.4 % • Constant currency growth of 2.6%. Gross Profit $63.0 $60.9 3.5% • Two acquisitions announced: Candela, Gross Margin 46.3% 45.4% 90 bps Advantage Go. Operating Income $24.6 $24.3 1.2% QOQ regional
Slide 24: Business Stickiness - Recurring and Re-Occurring
Business Stickiness - Recurring and Re-Occurring +14.7% Revenue From Software products and re-occurring 94.2 108.1 post-production services 70.2% 79.4% Revenue From Pre-production 40.0 -29.9% 28.0 implementation 29.8% 20.6% services Q1 2024 Q1 2025 24
Slide 25: Annualized Recurring Revenue - ARR
Annualized Recurring Revenue – ARR +11.8% 167.6 187.4 Q1 2024 Q1 2025 ARR Include Subscriptions, Term Licenses, Maintenance, and cloud solutions The Figures Are Q41Of Each Year Multiplied By 4 25
Slide 26: Cash and Cash Equivalents
Cash and Cash Equivalents (March 31, 2025) USD millions $206M 2022 - $ 38.6M* 2023 - $ 28.1M $20M 2024 - $ 31.8M 2025 - $36.9** Cash Debt Dividend Distribution Cash and Cash Investments S&P Israel (Mallot): ilAA-/Stable Up to 40% of non-GAAP net income paid twice a year * In 2022, we distributed div
Slide 27: Adjusted Free Cash Flow Q1 2025
Adjusted Free Cash Flow Q1 2025 Non-GAAP (USD Thousands) Free Cash Flow Q1 2025 Q1 2024 Cash flow from operating activities 25.3 18.5 Increase in capitalized software development costs (1.9) (1.7) Capital expenditures (0.4) (0.5) Free cash flow 23.0 16.3 Cash payments attributed to acquisition-relat
Slide 28: Guidance
Guidance Sapiens Proprietary & Confidential 28
Slide 29: Revised 2025 Guidance
Revised 2025 Guidance Non-GAAP (USD millions) 2025 2025 2025 Guidance Guidance Guidance Low High Mid $576 M Revenue $574M $578 M Growth of 6% Operating $94M $96M $95M Profit Operating 16.5% 16.5% Margin Previous guidance: Revenues $553 million to $558 million, Operating Profit and margin $98 million
Slide 30: Growth 2026 and Beyond
Growth 2026 and Beyond Sapiens Proprietary & Confidential 30
Slide 31: Growth 2026 and Beyond
Growth 2026 and Beyond SIs New logos Cross-sell • Initiative started in 2023 • Increase sales team • Increase client partner team • Partner with several SIs globally • Platform • Platform with integrated solutions • 2 deals signed in NA • Increase pipeline Transition to Life M&A Cloud/SaaS • Strong
Slide 32: Cross-Sell: Massive Acceleration Opportunity
Cross-Sell: Massive Acceleration Opportunity Multi-directional cross selling opportunities across all customer tiers Across geographies Across products and services Data, Digital, Analytics, and Decision Business Applications Core P&C L&A Across customer tiers 32
Slide 33: Cross-Sell: Massive Acceleration Opportunity
Cross-Sell: Massive Acceleration Opportunity Multi-directional cross selling opportunities across all customer tiers Industry Ecosystem Content Data, Digital, Analytics, and Decision 70+ global Insurtech | Pre-configured products partners and solution and LOBs providers Business | Pre-integrated end
Slide 34: Transition to Cloud/SaaS
Transition to Cloud/SaaS ers m stu g Co in xist g os E Lo w Ne 60% 28% 5 Years 34
Slide 35: Rare, Highly Compelling Investment Opportunity
Rare, Highly Compelling Investment Opportunity Compelling opportunity defined by market leadership, growth profile, and scarcity Immense market Best-in-class product Global opportunity offerings leadership Huge whitespace Successful M&A Multiple levers for opportunity and large playbook with continu
Slide 36: Thank you!
Thank you! Contact Us Yaffa Cohen-Ifrah, CMO & Head of RI [email protected] 36
Sapiens International — Q1 2025 Earnings Presentation on 6ix