Strategic Acquisitions
Sapiens International Corporation announced the acquisition of Candela, a leading intelligent automation company in the APAC market, and Advantage Go, a commercial insurance software provider. These acquisitions enhance Sapiens' capabilities in life and P&C segments, expanding their footprint in key markets like APAC and the London specialty market.
Revenue Growth
Revenue for Q1 2025 totaled $136 million, an increase of 1.4% compared to Q1 2024. On a constant currency basis, revenue would have been $2 million higher.
Increase in Recurring Revenue
Annualized recurring revenue (ARR) for Q1 2025 totaled $187 million, reflecting an 11.8% increase from Q1 2024. Recurring revenue represents 79% of total revenue, up from 70% in Q1 2024.
Improvement in Gross Margin
Gross margin increased to 46.3% in Q1 2025 from 45.4% in Q1 2024, representing an increase of 90 basis points.
Positive Cash Flow and Dividends
Adjusted free cash flow for Q1 2025 was $23 million, up from $17 million in Q1 2024. The company also paid a $16.8 million dividend for the second half of 2024 and declared a special dividend of $20.1 million.