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Sapiens (SPNS) Rides on Strong DACH Presence & Partner Base
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Sapiens International (SPNS - Free Report) , a leading global provider of software solutions for the insurance industry, is bolstering its presence in the DACH countries (Germany, Austria, and Switzerland) to drive further growth and expansion across the region.
Sapiens is also benefiting from an expanding partner base that now includes Microsoft (MSFT - Free Report) . Its strong portfolio is helping it to win market share in the insurtech domain and win new customers.
Shares of SPNS have gained 41.8% year to date, outperforming the Zacks Computer Software industry and the broader Zacks Computer & Technology sector’s return of 38% and 34.8%, respectively, thanks to strong top-line growth.
In first-quarter 2023, revenues increased 6% year over year to $124.8 million, driven by 9% top-line growth in Europe. Non-GAAP earnings of 31 cents per share were unchanged year over year.
DACH Exposure Driving Growth
Sapiens has made significant investments in the DACH region, focusing on expanding its Property & Casualty (P&C) and digital product offerings, as well as strengthening its sales and support team. It also has plans to extend beyond P&C, digital and Reinsurance to encompass life and annuities solutions in the future.
Sapiens International Corporation N.V. Price and Consensus
The company's expansion efforts in the DACH region were greatly enhanced by its acquisition of sum.cumo, a Germany-based technology provider, in 2020. The integration of sum.cumo into the Sapiens has enabled the company to provide its IDITSuite and SCIP solutions to insurers operating in the DACH region.
Sapiens now provides its IDITSuite solution to Mercedes Benz Versicherung, which offers warranty insurance products in Germany and beyond. Additionally, Sapiens collaborates with Vereinigte Hagelversicherung, the European market leader in agricultural insurance, by providing them with a comprehensive cloud-based software solution, starting with Germany and expanding to other countries.
Microsoft Partnership to Expand Clientele
Sapiens has partnered with Microsoft to integrate Azure OpenAI Service that would help it to provide generative AI solutions for insurance companies.
By integrating Microsoft Azure OpenAI and Azure Power Virtual Agents, Sapiens aims to provide generative AI solutions that enable insurance companies to navigate complex documents such as policies, terms and conditions, and more. This technology will enhance customer experience by delivering instant answers across multiple domains of customer interaction in various languages.
Furthermore, it will reduce the high volume of calls typically received by live agents and relevant personnel. The integration of AI, cognitive services, and process automation should also benefit underwriters by streamlining their day-to-day activities and reducing processing time for claims and fraud detection.
The Microsoft partnership will definitely help Sapiens win new customers. Its expanding clientele, which now includes the likes of Penn National Insurance, South Africa-based Absa Life, Vietnamese digital insurer OPES Insurance and Atain, has benefited from a strong portfolio as well as an expanding partner base.
Sapiens has now increased its 2023 guidance reflecting robust prospects. Non-GAAP revenues are now expected between $507 million and $512 million, higher than the previous guidance range of $502 to $507 million.
The Zacks Consensus Estimate for revenues is pegged at $510.39 million, indicating 7.51% year-over-year growth.
Long-term earnings growth for Meta and ServiceNow are pegged at 21.93% and 25.18%, respectively.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Sapiens (SPNS) Rides on Strong DACH Presence & Partner Base
Sapiens International (SPNS - Free Report) , a leading global provider of software solutions for the insurance industry, is bolstering its presence in the DACH countries (Germany, Austria, and Switzerland) to drive further growth and expansion across the region.
Sapiens is also benefiting from an expanding partner base that now includes Microsoft (MSFT - Free Report) . Its strong portfolio is helping it to win market share in the insurtech domain and win new customers.
Shares of SPNS have gained 41.8% year to date, outperforming the Zacks Computer Software industry and the broader Zacks Computer & Technology sector’s return of 38% and 34.8%, respectively, thanks to strong top-line growth.
In first-quarter 2023, revenues increased 6% year over year to $124.8 million, driven by 9% top-line growth in Europe. Non-GAAP earnings of 31 cents per share were unchanged year over year.
DACH Exposure Driving Growth
Sapiens has made significant investments in the DACH region, focusing on expanding its Property & Casualty (P&C) and digital product offerings, as well as strengthening its sales and support team. It also has plans to extend beyond P&C, digital and Reinsurance to encompass life and annuities solutions in the future.
Sapiens International Corporation N.V. Price and Consensus
Sapiens International Corporation N.V. price-consensus-chart | Sapiens International Corporation N.V. Quote
The company's expansion efforts in the DACH region were greatly enhanced by its acquisition of sum.cumo, a Germany-based technology provider, in 2020. The integration of sum.cumo into the Sapiens has enabled the company to provide its IDITSuite and SCIP solutions to insurers operating in the DACH region.
Sapiens now provides its IDITSuite solution to Mercedes Benz Versicherung, which offers warranty insurance products in Germany and beyond. Additionally, Sapiens collaborates with Vereinigte Hagelversicherung, the European market leader in agricultural insurance, by providing them with a comprehensive cloud-based software solution, starting with Germany and expanding to other countries.
Microsoft Partnership to Expand Clientele
Sapiens has partnered with Microsoft to integrate Azure OpenAI Service that would help it to provide generative AI solutions for insurance companies.
By integrating Microsoft Azure OpenAI and Azure Power Virtual Agents, Sapiens aims to provide generative AI solutions that enable insurance companies to navigate complex documents such as policies, terms and conditions, and more. This technology will enhance customer experience by delivering instant answers across multiple domains of customer interaction in various languages.
Furthermore, it will reduce the high volume of calls typically received by live agents and relevant personnel. The integration of AI, cognitive services, and process automation should also benefit underwriters by streamlining their day-to-day activities and reducing processing time for claims and fraud detection.
The Microsoft partnership will definitely help Sapiens win new customers. Its expanding clientele, which now includes the likes of Penn National Insurance, South Africa-based Absa Life, Vietnamese digital insurer OPES Insurance and Atain, has benefited from a strong portfolio as well as an expanding partner base.
Sapiens has now increased its 2023 guidance reflecting robust prospects. Non-GAAP revenues are now expected between $507 million and $512 million, higher than the previous guidance range of $502 to $507 million.
The Zacks Consensus Estimate for revenues is pegged at $510.39 million, indicating 7.51% year-over-year growth.
Zacks Rank & Stocks to Consider
Sapiens currently has a Zacks Rank #3 (Hold).
Meta Platforms (META - Free Report) and ServiceNow (NOW - Free Report) from the broader Zacks Computer & Technology sector are better-ranked stocks worth considering. Both sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Meta and ServiceNow are pegged at 21.93% and 25.18%, respectively.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.