Technology Stocks

Sapiens International Corporation N.V. (NASDAQ:SPNS) Shares Steady on Judgment Day

Sapiens International Corporation N.V. (NASDAQ:SPNS) just announced its financial results for the third quarter ended September 30, 2018. Thus far, shares appear to be reacting without much drama one way or the other.

“In the third quarter, we expanded our P&C business in the US and EMEA markets by leveraging our solutions and customers relationships, while continuing to improve our operational performance. As a result, we delivered solid performance in the quarter, with a 160 basis point increase in non-GAAP operating margin year-over-year. We grew our North America business by 12%, and we have recently announced several important wins and go-lives in this key market,” stated Roni Al-Dor, president and CEO, Sapiens.

Sapiens International Corporation N.V. (NASDAQ:SPNS) bills itself as a company that provides software solutions for the insurance and financial services industries in North America, Europe, the Asia Pacific, and South Africa.

The company offers software platform and solutions for life, pension, and annuities, such as Sapiens ALIS, LifeSuite, Life Portraits, LifeApply, Sapiens INSIGHT, and Sapiens Closed Books; and personal, commercial and specialty lines, and workers’ compensation comprising Sapiens IDIT, Adaptik Policy, Adaptik Billing, Stream Claim, Sapiens Stingray, PowerSuite, and CompSuite.

It also provides Digital Engagement, a digital insurance suite that includes advanced analytics, a portal for consumers and agents, an API layer for integration with the insurtech ecosystem, and a cloud proposition; and process analysis, business process automation, project management, performance optimization consulting services, etc., as well as information system development and various implementation methodology services to agents, customers, and insurance personnel.

In addition, the company offers reinsurance software solutions, including Sapiens Reinsurance, Freedom Reinsurance System, and Universal Reinsurance System; eFreedom Annual Statement, PRO Financial General Ledger and Accounts Payable, PTE Financial applications, Insurance Financial reporting, and Power2Play financial and compliance solutions; and Sapiens DECISION, an enterprise-scale decision management solution.

Further, it provides technology-based solutions based on its eMerge platform, which offers end-to-end modular business solutions, as well as Agile, Sapiens Delivery Tool, and Sapiens Delivery Performance Indicator methodologies.

Additionally, the company offers program delivery, business transformation, and managed services. It markets and sells its products and services through direct and partner sales. The company was founded in 1982 and is headquartered in Holon, Israel.


Front Toward Enemy

We started off by noting that SPNS just hit the wires with the announcement of its financial results for the third quarter ended September 30, 2018.

“We are increasing customer touch points globally through our client summits in the U.S. and EMEA, where we showcase our product capabilities and our outstanding teams. In addition, to maintain momentum with our clients, we are building a new global customer success operation that will be tasked with customers management as well as sales responsibilities, including cross selling and upselling, and increasing our 400 customers awareness of the entire Sapiens’ platforms,” continued Mr. Al-Dor.

That announcement helped to spark a relief rally in a context of recent action that hadn’t really been a happy time for SPNS shareholders leading up to the release. But things have ended up basically back where they started going back a week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -4%.

“In order to extend our competitive advantage and further grow our business, we are partnering with InsurTech and fintech start-up to complement our core offering while enabling our customers to improve their platforms and provide the highest level of service to their clients.”

Sapiens International Corporation N.V. (NASDAQ:SPNS) managed to rope in revenues totaling $72.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 4.5%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($59.2M against $79.7M, respectively).

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