UXBRIDGE, England - Sapiens International (NASDAQ:SPNS) Corporation (NASDAQ: SPNS) (TASE: SPNS), a provider of insurance software solutions with annual revenue of $539 million and a robust 43.4% gross profit margin, has announced the availability of its SaaS products on the Microsoft (NASDAQ:MSFT) Azure Marketplace. According to InvestingPro analysis, the company maintains strong financial health with a comfortable liquidity position, evidenced by a current ratio of 2.18. This move allows Sapiens' global customer base to utilize Azure's cloud services to enhance their business operations.
Sapiens, which serves over 600 insurance customers in more than 30 countries, has designed its offerings to support the insurance industry's shift towards digital transformation. By leveraging Azure's AI tools, like Microsoft Copilot and Azure OpenAI Service, Sapiens aims to improve operational efficiency and customer experience. The company's Digital Insurance Platform for Life & Annuity, for instance, incorporates Microsoft GenAI technology to assist insurers in managing the entire lifecycle of life and annuity products.
Alex Zukerman, Chief Strategy Officer at Sapiens, highlighted the partnership's role in supporting insurers' transformation journeys and the enhanced innovation capabilities it brings. Jake Zborowski, General Manager, Microsoft Azure Platform, also emphasized the Azure Marketplace's role in providing economic value and efficiency to customers.
The Azure Marketplace serves as a platform for purchasing cloud solutions certified to run on Azure, facilitating connections between companies seeking innovative solutions and partners like Sapiens that offer ready-to-use products.
This collaboration underscores Sapiens' commitment to delivering advanced automation and AI-powered solutions to the insurance sector, aiming to future-proof organizations in a dynamic market environment. Trading near its 52-week low of $25.01, InvestingPro data suggests the stock may be undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US equities.
The information regarding Sapiens' integration with the Azure Marketplace is based on a press release statement.
In other recent news, Sapiens International Corporation reported a 4.8% year-over-year increase in Q3 2024 revenue, reaching $137 million. Despite this growth, the company revised its full-year 2024 revenue guidance downward due to a strategic shift towards a Software (ETR:SOWGn) as a Service (SaaS) model and longer sales cycles, particularly in Europe. Needham maintained a Buy rating on Sapiens' shares but reduced the price target to $35 from the previous $44 following these results.
Sapiens also announced new business wins in North America and successful upgrades with existing customers like Pan American Life Insurance (NS:LIFI) Group and Hollard Group. The company's gross profit reached $63 million, with a gross margin of 45.8%, and the net income attributed to shareholders was $21 million. The company declared a dividend of $16.2 million, representing 39% of first-half net income.
The transition to a cloud-based SaaS model is expected to yield long-term benefits, with recurring revenue now over 70% of total revenue. The North America CoreSuite Property and Casualty (P&C) platform launch is set for the first half of 2025. These are among the recent developments for Sapiens International Corporation.
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