Sapiens International Corporation NV (NASDAQ:) saw its shares slump more than 21% in premarket trading Monday (NASDAQ:) after the company cut its annual revenue guidance and its Q3 results missed expectations.
For the third quarter, the insurance software maker posted Q3 earnings per share (EPS) of $0.33, short of analyst expectations of $0.38. Revenue came in at $137 million, also below the consensus estimate of $140.38 million.
The company’s adjusted gross margin stood at 45.8%, while adjusted operating income was $25.1 million, slightly under the forecasted $25.7 million.
“This quarter showcased solid performance in our key regions. We are pleased to report that revenue reached $137 million this quarter, reflecting a 4.8% increase over the same period last year,” said Roni Al-Dor, President and CEO of Sapiens.
“Revenue growth was driven by 7.1% growth in our European region, 1.7% growth in North America and 6.6% growth in ROW regions. This quarter’s non-GAAP operating profit totaled $25 million, representing 18.3% of total revenue.”
Looking ahead, Sapiens has lowered its revenue guidance for the fiscal 2024, now projecting between $541 million and $546 million, down from the prior range of $550 million to $555 million, and below the consensus estimate of $552.7 million.
The company expects its non-GAAP operating margin to align within the guidance range at 18.2%.
