Sapiens International Corporation NV (SPNS) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Sapiens International Corporation's 2022 Fourth Quarter and Full Year Financial Results Conference Call.

女士們，先生們，謝謝你們的支持。歡迎來到 Sapiens International Corporation 的 2022 年第四季度和全年財務業績電話會議。

Sapiens issued a press release before the market opened this morning, and it has been posted on the company's website at www.sapiens.com. (Operator Instructions)

Sapiens 在今天上午開市前發布了一份新聞稿，並已發佈在公司網站 www.sapiens.com 上。 （操作員說明）

I would now like to hand the call to Ms. Yaffa Cohen, Sapiens' Chief Marketing Officer and Head of Investor Relations. Yaffa, would you like to begin?

我現在想把電話轉給 Sapiens 的首席營銷官兼投資者關係主管 Yaffa Cohen 女士。 Yaffa，你想開始嗎？

Thank you, operator. I would like to welcome all of you to Sapiens conference call to review our fourth quarter and full year results for 2022. With me on the call today are Mr. Roni Al-Dor, President and CEO; Mr. Roni Giladi, CFO; and Mr. Alex Zukerman, Chief Strategy Officer.

謝謝你，運營商。歡迎大家參加 Sapiens 電話會議，回顧我們 2022 年第四季度和全年的業績。今天和我一起參加電話會議的有總裁兼首席執行官 Roni Al-Dor 先生；首席財務官Roni Giladi先生；首席戰略官 Alex Zukerman 先生。

Following the summary of the results, we will be available to answer any questions. Before we start, I would like to remind everyone that this conference call may contain projections or other forward-looking statements. The safe harbor provision in the press release issued today also apply to the content of the call. Sapiens expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations or otherwise.

在總結結果之後，我們將可以回答任何問題。在我們開始之前，我想提醒大家，本次電話會議可能包含預測或其他前瞻性陳述。今天發布的新聞稿中的安全港條款也適用於通話內容。 Sapiens 明確表示不承擔更新或修改任何這些前瞻性陳述的義務，無論是由於未來事件、新信息、其觀點或預期的變化還是其他原因。

On today's call, we will refer to the non-GAAP financial measures. A reconciliation of GAAP to non-GAAP results has been provided in our press release issued before the market opened this morning. A replay of this call will be available after the call on our Investor Relations section of the company website or via the website link, which is available in the earnings release we published today.

在今天的電話會議上，我們將參考非 GAAP 財務指標。我們在今天上午開市前發布的新聞稿中提供了 GAAP 與非 GAAP 結果的對賬。在公司網站的投資者關係部分或通過我們今天發布的收益發布中提供的網站鏈接，可以重播此電話會議。

I will turn the call over to Roni Al-Dor, President and CEO of Sapiens. Roni?

我將把電話轉給 Sapiens 總裁兼首席執行官 Roni Al-Dor。羅尼？

Thank you, Yaffa. Welcome, everyone, to our call today. It is my pleasure to welcome you all to our Q4 and annual investor conference call.

謝謝你，亞法。歡迎大家參加我們今天的電話會議。我很高興歡迎大家參加我們的第四季度和年度投資者電話會議。

In today's call, we will discuss Sapiens quarterly and annual results and provide insight into our future plans. We appreciate your continued support and looking forward to sharing our progress with you. In 2022, we made significant achievements in our business, including the successful delivery of our 90% of our new deals to the cloud and remarkable increase in the number of multiproduct deals for our Sapiens platform leading to larger deal size.

在今天的電話會議中，我們將討論 Sapiens 的季度和年度業績，並提供對我們未來計劃的見解。感謝您一直以來的支持，並期待與您分享我們的進步。 2022 年，我們在業務上取得了重大成就，包括成功將 90% 的新交易交付到雲端，以及顯著增加 Sapiens 平台的多產品交易數量，從而擴大交易規模。

After several years of dedicated investment and efforts we successfully resumed growth in North America, a key market for us. Our hard work is paying off with new won deals across the Life, P&C, working compensation and reinsurance sectors. Together with notable growth in our pipeline across those sectors, we expect a positive impact on our future success and growth in the region. Our growth in North America, particularly in the fourth quarter where we saw growth in Life & P&C deals was another contributor to our success this year. In Europe, we have taken significant steps to enhance our nearshore integration capabilities in our key regions, which has helped to reinforce our strong presence in this market.

經過幾年的專注投資和努力，我們在北美這個我們的主要市場成功恢復了增長。我們的辛勤工作正在獲得回報，在人壽、財產和意外險、工作補償和再保險領域贏得了新的交易。連同我們在這些領域的管道顯著增長，我們預計將對我們未來在該地區的成功和增長產生積極影響。我們在北美的增長，特別是在第四季度，我們看到壽險和財產險交易的增長是我們今年成功的另一個因素。在歐洲，我們已採取重大措施加強我們在關鍵地區的近岸整合能力，這有助於鞏固我們在該市場的強大影響力。

Our efforts in Europe resulted in continued growth and have been recognized by industry analysts, who named Sapiens as the leading provider across both life and pension and property and casualty. Last week, Sapiens P&C solution won an excellent award in the Celent EMEA Policy Administration report. This recognition reinforce our industry leadership and increase our brand awareness in the insurance market.

我們在歐洲的努力帶來了持續增長，並得到了行業分析師的認可，他們將 Sapiens 評為人壽和養老金以及財產和意外傷害領域的領先供應商。上週，Sapiens P&C 解決方案在 Celent EMEA Policy Administration 報告中榮獲優秀獎。這一認可鞏固了我們的行業領導地位，並提高了我們在保險市場的品牌知名度。

Overall, during 2022, we signed 18 new logos across all of our products and territories. In 2022, we met our revenue and operating margin guidance. This achievement especially remarkable given the challenging business environment in 2022. In particular, the results reflect consistent progress in EMEA and APAC, which played a major role in achieving this success. In addition, our cloud insurance platform offering allow us to focus on closing deals that include core products plus one or more additional applications, such as digital, data and cloud, resulting in the majority of contracts for multiple products and an increase in the average deal size.

總體而言，在 2022 年期間，我們在所有產品和地區簽署了 18 個新徽標。 2022 年，我們實現了收入和營業利潤率指導。鑑於 2022 年充滿挑戰的商業環境，這一成就尤為顯著。尤其是，該結果反映了 EMEA 和 APAC 的持續進步，這在實現這一成功方面發揮了重要作用。此外，我們的雲保險平台產品使我們能夠專注於完成包括核心產品以及一個或多個附加應用程序（例如數字、數據和雲）的交易，從而導致多個產品的大部分合同和平均交易的增加尺寸。

Throughout 2022, we focus on maintaining operating profit and positive cash flow. We sustain a gross margin of 45% and expand our offshore team to lower operating costs, which enable us to maintain an operating margin of 17.6%, even in the face of inflation. The insurance industry is undergoing a major transformation and one of the most significant trends in the market is the movement of core system to cloud. Cloud is becoming the de facto choice of most carriers when replacing legacy solutions or implementing new capabilities.

在整個 2022 年，我們專注於保持營業利潤和正現金流。我們維持 45% 的毛利率，並擴大我們的離岸團隊以降低運營成本，這使我們能夠保持 17.6% 的運營利潤率，即使在通貨膨脹的情況下也是如此。保險業正在經歷一場重大變革，市場上最重要的趨勢之一是核心系統向雲端的遷移。在替換遺留解決方案或實施新功能時，雲正在成為大多數運營商事實上的選擇。

In 2022, Sapiens delivered over 90% of new deals on the cloud. We continue with our successful effort to move existing customers from on-prem to Sapiens Cloud this year. In the long run, as we continue to move our customers on to the cloud platform, we can manage numerous customers on the same resource and improve the efficiency of our operation. The insurance industry is adapting the growing trend of the increasing importance of data. Sapiens provides comprehensive data capabilities as part of its platform, providing several layers of data solutions to carriers from operational reporting and managing dashboard to advanced analytics to ML and AI use cases. Digital engagement and customer experience remain [defer] front of priorities for carriers, both for direct-to-consumer and direct to businesses as well as digitally transforming the way they work with agents and brokers and other distribution channel.

2022 年，Sapiens 在雲端交付了超過 90% 的新交易。今年，我們繼續成功地將現有客戶從本地部署遷移到 Sapiens Cloud。從長遠來看，隨著我們不斷將客戶轉移到雲平台上，我們可以在同一個資源上管理眾多客戶，提高我們的運營效率。保險業正在適應數據日益重要的增長趨勢。 Sapiens 提供全面的數據功能作為其平台的一部分，為運營商提供多層數據解決方案，從運營報告和管理儀表板到高級分析再到 ML 和 AI 用例。數字參與和客戶體驗仍然是運營商的首要任務，無論是直接面向消費者還是直接面向企業，以及數字化地改變他們與代理商和經紀人以及其他分銷渠道的合作方式。

This trend is driving the increased adoption of Sapiens insurance platform, which offer core solution along with additional offering in digital data and cloud. The integration of data digital with our decision solution creates a smart platform layer that automate process promotes data-driven decision-making and provide insightful, intelligent decision-making capabilities while delivering significant benefits to our business with a larger deal size. The ecosystem marketplace further enhanced these capabilities -- we are leveraging our extensive ecosystem to provide customized and highly relevant solutions to meet the unique needs of our customers. Sapiens Partners with over 60 insurance technology provider to offer custom solutions for clients.

這種趨勢正在推動越來越多地採用 Sapiens 保險平台，該平台提供核心解決方案以及數字數據和雲中的附加產品。數據數字化與我們的決策解決方案的集成創建了一個智能平台層，該層自動化流程促進數據驅動的決策制定並提供有洞察力的智能決策能力，同時為我們的業務帶來更大的交易規模顯著利益。生態系統市場進一步增強了這些能力——我們正在利用我們廣泛的生態系統來提供定制和高度相關的解決方案，以滿足客戶的獨特需求。 Sapiens 與 60 多家保險技術提供商合作，為客戶提供定制解決方案。

Let's shift to focus on regional performance, starting with North America. Sapiens made strategic advancement in our North America business during 2022. With successful close Life deal in the third quarter, a major financial services entity select Sapiens CoreSuite along with our digital suite to [the solution], this combined solution provides them with next-generation customer sales and service experience. Sapiens core administration solution and pre-integrated digital enablement platform will enable them to offer cloud native solution life insurance services that our customers centered and innovative.

讓我們把重點轉移到區域績效上，從北美開始。 Sapiens 在 2022 年期間在我們的北美業務中取得了戰略進展。隨著第三季度成功完成 Life 交易，一家主要的金融服務實體選擇 Sapiens CoreSuite 以及我們的數字套件來 [解決方案]，這種組合解決方案為他們提供了下一代客戶銷售和服務經驗。 Sapiens 核心管理解決方案和預先集成的數字支持平台將使他們能夠提供以客戶為中心和創新的雲原生解決方案人壽保險服務。

In 2022, Sapiens saw growth in our North America core life and business application businesses, acquiring new logo and advancing other deals. With a strong life pipeline, our outlook for 2023 is highly promising. In addition to the strong performance in life, Sapiens is also experiencing growth in North America P&C businesses. We anticipate several new deals closing in 2023 and have seen a solid reestablishment of our position in workers' compensation market, including expansion into Canada. The reinsurance segments continue to be strong with new logos acquiring in 2022 and a solid pipeline for 2023.

2022 年，Sapiens 的北美核心生活和商業應用業務取得了增長，獲得了新標識並推進了其他交易。憑藉強大的生命管道，我們對 2023 年的前景充滿希望。除了人壽業務的強勁表現，Sapiens 的北美產險業務也取得了增長。我們預計 2023 年將完成幾筆新交易，並且我們已經穩固地重新確立了我們在工傷賠償市場的地位，包括向加拿大擴張。再保險領域繼續保持強勁勢頭，2022 年將收購新標識，2023 年將有穩固的管道。

The North America pipeline is showing stronger emphasize on migration to the cloud for 2023 and beyond. Sapiens effort and investment in product improvement have been recognized by Celent in North America, P&C and Workers' Comp segment. We received recognition for P&C claims pro functionality and added analytical and digital offering and claims solution for workers' compensation. These acknowledgments demonstrate Sapiens commitment to delivering innovative and effective solution to our customers.

北美管道更加強調在 2023 年及以後遷移到雲。 Sapiens 在產品改進方面的努力和投資得到了 Celent 在北美、P&C 和 Workers' Comp 部門的認可。我們獲得了 P&C 索賠專業功能的認可，並為工傷賠償增加了分析和數字產品和索賠解決方案。這些認可表明 Sapiens 致力於為我們的客戶提供創新和有效的解決方案。

In 2022, Sapiens made major progress with our EMEA and APAC businesses, landing new logos in the region. Many of these deals include multiple solutions from Sapiens, including core platforms for P&C, [L&P], reinsurance, digital, data and analytics solutions and cloud services. We are currently in the preferred bidder stage with smaller logos, demonstrating our strong position in the market. To support our continuous growth, we have a dedicated team to focus on new logo acquisition and account management in EMEA and APAC regions. This team will further improve our presence in the region. We have made remarkable progress with our P&C and life, pension business in the U.K. and Ireland, successfully securing new logos and advancing more to the final stage.

2022 年，Sapiens 在我們的 EMEA 和 APAC 業務方面取得了重大進展，在該地區推出了新標識。其中許多交易包括來自 Sapiens 的多種解決方案，包括 P&C、[L&P]、再保險、數字、數據和分析解決方案以及雲服務的核心平台。我們目前處於優先投標階段，徽標較小，表明我們在市場上的強勢地位。為了支持我們的持續發展，我們有一個專門的團隊專注於 EMEA 和 APAC 地區的新徽標獲取和客戶管理。該團隊將進一步改善我們在該地區的影響力。我們在英國和愛爾蘭的產險和人壽、養老金業務取得了顯著進展，成功獲得新標識並進一步推進到最後階段。

This marks a promising start for the pipeline heading in 2023. A big focus for Sapiens is driving more cross-sell and upsell business. With our extensive portfolio insurance clients, especially with digital data and analytics and transition to Sapiens Cloud Services. We have successfully integrated the new acquisition of TIA (inaudible) with rebranding and implementing strategic account management. This has resulted in successful growth through cross and upselling to these clients, providing them with increased business value and savings.

這標誌著 2023 年管道的良好開端。Sapiens 的一個重點是推動更多的交叉銷售和追加銷售業務。與我們廣泛的投資組合保險客戶，尤其是數字數據和分析以及向 Sapiens 雲服務的過渡。我們已成功將新收購的 TIA（聽不清）與品牌重塑和實施戰略客戶管理相結合。通過向這些客戶進行交叉銷售和追加銷售，實現了成功的增長，為他們提供了更高的業務價值和節省。

We are investing and pre-integrating Sapiens digital data and cloud platform to our TIA and [some core] products. And this enable us to enhance our proposition to the existing customer base and resulted in several such customers adopting the innovation solution from Sapiens.

我們正在投資並將 Sapiens 數字數據和雲平台預先集成到我們的 TIA 和[一些核心]產品中。這使我們能夠增強我們對現有客戶群的建議，並導致一些這樣的客戶採用了 Sapiens 的創新解決方案。

In 2022, OMI in South Africa, a TIA customer chose Sapiens data and reinsurance platform. In addition, another TIA customer in Denmark is moving to a full cloud services model. To support our business growth, Sapiens is increasing our nearshore capabilities in Europe, supporting our growth in Nordic, DACH, Sub-Sahara, U.K. and Iberia. We are investing more in our solution platform to support the new business. We have already secured and to improve our value proposition. Looking ahead to 2023, we have several key goals -- the top priority is deepening relationship with our existing customers and expanding in every territory we operate, including newly penetrated markets such as DACH and Iberia. Another top priority is to sustain and grow our presence in North American market.

2022年，TIA客戶南非OMI選擇了Sapiens數據和再保險平台。此外，丹麥的另一個 TIA 客戶正在轉向完整的雲服務模型。為了支持我們的業務增長，Sapiens 正在增強我們在歐洲的近岸能力，以支持我們在北歐、DACH、撒哈拉以南、英國和伊比利亞的增長。我們正在加大對解決方案平台的投資，以支持新業務。我們已經確保並改善我們的價值主張。展望 2023 年，我們有幾個關鍵目標——首要任務是加深與現有客戶的關係，並在我們經營的每個地區擴張，包括 DACH 和 Iberia 等新滲透的市場。另一個首要任務是維持和擴大我們在北美市場的影響力。

We are committed to capitalizing on the vast opportunity in North America market by executing with precision and determinations. Our goal is ambition to close new deals in life and P&C, while establishing a [solid] foundation for our future growth with our robust pipeline. On the product front, an additional priority is ongoing expansion beyond our core offering into digital data and analytics. This will allow us to provide our customers with even more comprehensive and innovative solutions and allow us to continue to successfully close larger deals. And lastly, we want to focus and continue with transition to the cloud.

我們致力於通過精確和果斷的執行來利用北美市場的巨大機遇。我們的目標是雄心勃勃地完成人壽和財產險方面的新交易，同時通過我們強大的管道為我們未來的增長奠定[堅實的]基礎。在產品方面，另一個優先事項是不斷擴展我們的核心產品，進入數字數據和分析領域。這將使我們能夠為我們的客戶提供更全面和創新的解決方案，並使我們能夠繼續成功完成更大的交易。最後，我們希望集中精力並繼續向雲過渡。

Now I would like to turn the call to Roni Giladi, our CFO. Roni?

現在我想把電話轉給我們的首席財務官 Roni Giladi。羅尼？

Thank you, Roni. I will begin my commentary with a review of fourth quarter and full year 2022 non-GAAP results, followed by comments on the balance sheet and cash flow. I will wrap up with our guidance for 2023.

謝謝你，羅尼。我將首先回顧第四季度和 2022 年全年的非 GAAP 業績，然後是對資產負債表和現金流的評論。我將總結我們對 2023 年的指導。

Revenue in the fourth quarter of 2022 was $119.5 million, a modest decline compared to $119.9 million in the fourth quarter of 2021, and slightly higher than the previous quarter. Revenue in North America was $50.8 million compared to $48.9 million in Q4 of last year, an increase of 3.9% and $1.9 million.

2022 年第四季度收入為 1.195 億美元，與 2021 年第四季度的 1.199 億美元相比略有下降，略高於上一季度。北美的收入為 5080 萬美元，而去年第四季度為 4890 萬美元，增長 3.9% 和 190 萬美元。

Revenue in Q4 increased by $1.3 million or 2.5% compared to Q3 of 2022. The increase in revenue is a result of new deals signed in Q4. Revenue in Europe was $56.9 million, a year-over-year decline from $62.4 million. On a constant currency basis, revenue in Europe grew by 3%. Revenue in Rest of World, which includes South Africa and APAC increased 37.4% compared to prior year quarter, reaching $11.8 million, mainly due to the fact of growth in South Africa.

與 2022 年第三季度相比，第四季度的收入增加了 130 萬美元或 2.5%。收入的增加是第四季度簽署的新交易的結果。歐洲收入為 5690 萬美元，同比下降 6240 萬美元。按固定匯率計算，歐洲的收入增長了 3%。與去年同期相比，包括南非和亞太地區在內的世界其他地區的收入增長了 37.4%，達到 1180 萬美元，這主要是由於南非的增長。

Operating profit and margin in the fourth quarter of 2022 was $21.1 million, and 17.6%, slightly lower than Q4 of 2021 and at the same level of Q3 of 2022. The year-over-year decrease in operating profit and margin was primarily due to the impact of the European currency versus the U.S.A. dollar. During the quarter, we had a net financial income of $1.1 million, mainly due to a onetime debt waiver of approximately $1.5 million from one of our acquisitions, offset by the interest expenses on the debenture. Net income attributed to Sapiens shareholders for the fourth quarter of 2022 was $18 million, up 1.9% from $17.7 million in Q4 of 2021. EPS was $0.32 per diluted share for the fourth quarter of 2022 and at the same level of 2021.

2022 年第四季度營業利潤和利潤率為 2110 萬美元，增長率為 17.6%，略低於 2021 年第四季度，與 2022 年第三季度持平。營業利潤和利潤率同比下降主要是由於歐洲貨幣對美元的影響。本季度，我們的淨財務收入為 110 萬美元，主要是由於我們的一項收購一次性免除約 150 萬美元的債務，被債券的利息支出所抵消。 2022 年第四季度歸屬於 Sapiens 股東的淨收入為 1800 萬美元，比 2021 年第四季度的 1770 萬美元增長 1.9%。2022 年第四季度每股攤薄收益為 0.32 美元，與 2021 年持平。

Turning now to the full year results for the 12 months ended December 31, 2022. 2022 revenue increased to $474.8 million, up 2.4% compared with $463.6 million in 2021 and in line with our guidance. North America revenue represents 41.6% of total revenue, and our European revenue represented 49.1% of total revenue. On a constant currency basis, revenue increased by 7.8% in 2022. Growth in 2022 was derived mainly from growth of 4.3% in North America, growth of 7.4% in Europe and our rest of all geographies that grew 28.9%. The growth in Europe was reached despite the delay in signing new deals due to macroeconomic factors. In 2022, our P&C represented 68% of our businesses and life and annuity represented 25% of our businesses.

現在轉向截至 2022 年 12 月 31 日的 12 個月的全年業績。2022 年收入增至 4.748 億美元，比 2021 年的 4.636 億美元增長 2.4%，符合我們的指引。北美收入佔總收入的 41.6%，我們的歐洲收入佔總收入的 49.1%。按固定匯率計算，2022 年收入增長 7.8%。2022 年的增長主要來自北美 4.3% 的增長、歐洲 7.4% 的增長以及我們所有其他地區 28.9% 的增長。儘管由於宏觀經濟因素而推遲簽署新交易，但歐洲仍實現了增長。 2022 年，我們的財產險占我們業務的 68%，人壽和年金占我們業務的 25%。

The rest of our revenue are coming from technology and decision. We currently serve more than 600 customers globally, including some of the world's largest global insurance area and financial institutions. With a broad product portfolio, our customer base is diversified across insurance providers of all types and size. Our top 10 customers represented 24.2% of revenue in 2022 with no customer representing more than 5% of our revenue.

我們其餘的收入來自技術和決策。我們目前為全球 600 多家客戶提供服務，其中包括一些全球最大的保險領域和金融機構。憑藉廣泛的產品組合，我們的客戶群遍及各種類型和規模的保險提供商。我們的前 10 大客戶佔 2022 年收入的 24.2%，沒有客戶占我們收入的 5% 以上。

Gross profit increased in 2022 by $5.2 million, while gross margin remained at the same level of 45%, despite a currency headwind. Similarly, our operating expenses increased 2.4% year-over-year to $130 million. We remain committed to investing in research and development. R&D spend increased by $2.8 million. As a result, our R&D investment represent 13.6% of our revenue. This year, -- we have focused our R&D efforts on cloud and digital technology, and we are pleased to see that these investments are generating return for the company. SG&A expenses represented 13.7% of total revenue, which resulted in a stable operating margin of 17.6% in both 2022 and 2021, in line with our guidance.

2022 年毛利潤增加了 520 萬美元，儘管匯率不利，但毛利率仍保持在 45% 的同一水平。同樣，我們的運營費用同比增長 2.4% 至 1.3 億美元。我們仍然致力於投資研發。研發支出增加了 280 萬美元。因此，我們的研發投資占我們收入的 13.6%。今年，我們將研發工作重點放在雲和數字技術上，我們很高興看到這些投資正在為公司帶來回報。 SG&A 費用佔總收入的 13.7%，這導致 2022 年和 2021 年的營業利潤率穩定為 17.6%，符合我們的指引。

Earnings per diluted share were $1.21, up 2.5% from $1.18 per diluted share in 2021. EBITDA increased by 1.1% to $87.7 million in 2022. Our EBITDA margin for 2022 was 18.5%.

每股攤薄收益為 1.21 美元，較 2021 年的每股攤薄收益 1.18 美元增長 2.5%。2022 年 EBITDA 增長 1.1% 至 8770 萬美元。我們 2022 年的 EBITDA 利潤率為 18.5%。

Turning to our balance sheet. As of December 31, 2022, we had cash and cash equivalents and short-term deposits totaling $180 million and debt of $79 million, which is scheduled to be paid in 4 equal annual payments. On January 1, 2023, we have made $19.8 million debt payment. Turning to adjusted free cash flow. During 2022, we generated adjusted free cash flow of $36.1 million, which represents 53.7% of our non-GAAP net income. The low adjusted free cash flow was the result of the delay in signing new deals because of the macroeconomic environment, which translated to reduce upfront payment from new customers.

轉向我們的資產負債表。截至 2022 年 12 月 31 日，我們的現金和現金等價物以及短期存款總額為 1.8 億美元，債務為 7900 萬美元，計劃分 4 次等額支付。 2023 年 1 月 1 日，我們已經償還了 1980 萬美元的債務。轉向調整後的自由現金流。 2022 年，我們產生了 3610 萬美元的調整後自由現金流，占我們非 GAAP 淨收入的 53.7%。調整後的自由現金流量較低是由於宏觀經濟環境導致新交易延遲簽訂，這意味著新客戶的預付款減少。

In addition, a contributing factor was a slowdown in collection in impacting our DSO that increased from 57 days to 66.7 days in 2022. During the year, we paid cash dividends in a total amount of $38.6 million and change our dividend policy to distribute dividend on a semiannual basis to reflect our confidence in the business positive cash flow generation. We plan on announcing our H2 dividend when we publish our 20-F at the end of March. Today, we are introducing the following guidance for 2023.

此外，影響我們 DSO 的收款速度放緩是一個促成因素，到 2022 年，DSO 從 57 天增加到 66.7 天。在這一年中，我們支付了總額為 3860 萬美元的現金股息，並改變了我們的股息政策以分配股息每半年一次，以反映我們對業務產生正現金流量的信心。我們計劃在 3 月底發布 20-F 時宣布 H2 股息。今天，我們將介紹以下 2023 年指南。

Revenue. Non-GAAP revenue in the range of $502 million to $507 million, represent midpoint growth of 6.3%. The growth takes into account anticipated organic growth, the macroeconomic backdrop and the extended contract cycle we are experiencing.

收入。非 GAAP 收入在 5.02 億美元至 5.07 億美元之間，中點增長率為 6.3%。增長考慮了預期的有機增長、宏觀經濟背景和我們正在經歷的延長合同周期。

Profit. Non-GAAP operating margin from 17.6% to 18%, representing a midpoint improvement of 20 basis points and operating profit growth of 7.6%. This improvement in operating margin is despite the expected increase in labor costs due to inflation pressure. We expect our annual effective tax rate to be in the range of 18% to 19%. Starting in 2023 to help our investors better understand the visibility and predictability of Sapiens revenues will provide an additional view of our revenue and gross margin.

利潤。非美國通用會計準則營業利潤率從 17.6% 升至 18%，中點提高 20 個基點，營業利潤增長 7.6%。儘管由於通貨膨脹壓力預計勞動力成本會增加，但營業利潤率有所提高。我們預計我們的年度有效稅率將在 18% 至 19% 的範圍內。從 2023 年開始，幫助我們的投資者更好地了解 Sapiens 收入的可見性和可預測性，將為我們的收入和毛利率提供一個額外的視角。

We'll split our revenue into 2 groups, and we provide period-over-period comparisons as each new period is reported. The 2 groups are: one, software products in [reoccurring] postproduction services; and two, preproduction implementation services. Software products and reoccurring postproduction services include mainly term license, maintenance, cloud solutions, subscription and post-production services, the revenue stream is a mix of recurring and reoccurring in nature.

我們會將收入分成兩組，並在報告每個新時期時提供期間與期間的比較。這 2 組是：一是[經常性]後期製作服務中的軟件產品；第二，試生產實施服務。軟件產品和經常性後期製作服務主要包括定期許可、維護、雲解決方案、訂閱和後期製作服務，收入流是經常性和重複性的混合體。

Preproduction implementation services include mainly implementation services before go-live, and which are onetime in nature. In 2022, revenues from recurring software products and reoccurring postproduction services were in the range of 60% to 65% of total revenues. And in any given quarter, with a gross margin ranging from 51% to 55% in any given quarter. While revenues from preproduction implementation services were in the range of 35% to 40% of total revenue, with a gross margin ranging from 28% to 32%. As you can see, a large majority of our revenue are recurring and reoccurring with a typical commitment of 2 to 5 years, providing us tremendous visibility in predictability to our revenues. This recurring and reoccurring revenue have a higher gross margin than our blended reported margin.

試生產實施服務主要包括上線前的實施服務，屬於一次性的。 2022 年，來自經常性軟件產品和經常性後期製作服務的收入佔總收入的 60% 至 65%。在任何給定季度，任何給定季度的毛利率都在 51% 到 55% 之間。生產前實施服務的收入佔總收入的 35% 至 40%，毛利率為 28% 至 32%。正如您所看到的，我們的大部分收入都是經常性的，並且以 2 到 5 年的典型承諾重複發生，這為我們提供了對收入可預測性的巨大可見性。這種經常性和經常性收入的毛利率高於我們的混合報告利潤率。

To summarize, in 2023, we expect to exceed the $1.5 billion mark in revenue with a strong operating profit above $90 million. Our recurring and reoccurring revenue expected to be about 60% of our total revenue with a higher gross margin. Our position in Europe is strong, and we are working to improve our position in North America and serve both the P&C and life and annuities market.

總而言之，到 2023 年，我們預計收入將超過 15 億美元大關，營業利潤將超過 9000 萬美元。我們的經常性和經常性收入預計將占我們總收入的 60% 左右，毛利率更高。我們在歐洲的地位很強，我們正在努力提高我們在北美的地位，同時服務於 P&C 以及人壽和年金市場。

We remain committed to growing our company while also providing dividends to our shareholders. As we move forward, our company is dedicated to create its sustainable long-term value for our shareholders, customers and other stakeholders. With the opportunity that lie ahead of us we are confident about the future and excited to capitalize on them in the years to come.

我們仍然致力於發展我們的公司，同時也為我們的股東提供股息。在我們前進的過程中，我們公司致力於為我們的股東、客戶和其他利益相關者創造可持續的長期價值。有了擺在我們面前的機會，我們對未來充滿信心，並很高興在未來幾年利用這些機會。

I will now turn the call back to Roni Al-Dor. Roni?

我現在將電話轉回給 Roni Al-Dor。羅尼？

Thank you, Roni. To summarize our 2023 priorities. Our deepening relationships with our existing customers and expanding in every territory where we operate. Sustaining growth our presence in North America market, while continue our growth in EMEA, ongoing expansion beyond our core offering into digital data and analytics; and lastly, focus and continue the transition to the cloud. We are executing our strategy to drive sustainable, long-term growth, increase profitability and improve shareholder and customer value.

謝謝你，羅尼。總結我們 2023 年的優先事項。我們加深與現有客戶的關係，並在我們經營的每個地區擴張。保持我們在北美市場的增長，同時繼續我們在 EMEA 的增長，不斷擴展我們的核心產品以外的數字數據和分析；最後，關注並繼續向雲過渡。我們正在執行我們的戰略，以推動可持續的長期增長，提高盈利能力並提高股東和客戶價值。

I would like now to close our prepared remarks and open the call for questions.

我現在想結束我們準備好的發言並開始提問。

(Operator Instructions) The first question is from Dylan Becker of William Blair.

（操作員說明）第一個問題來自威廉·布萊爾的迪倫·貝克爾。

I appreciate all the incremental disclosure around the revenue mix as well. And given that one hand to shake model as 40% of those kind of preproduction services you've talked about. How do you think about the momentum you're seeing on that side of the business flowing through to the 90% cloud activity that you're seeing on new project implementation, but that services component serving as a leading indicator for more of that recurring software component in the business down the road.

我也很欣賞圍繞收入組合的所有增量披露。考慮到您所說的那種預生產服務中有 40% 是握手模型。您如何看待您在新項目實施中看到的業務流向 90% 的雲活動的勢頭，但該服務組件作為更多重複軟件的領先指標未來業務的組成部分。

Dylan, this is Roni. We provided this overview to create more visibility and predictability to the investor to show these 2 revenue stream that we have in the company and the differentiation in the gross margin, obviously. The onetime revenue, which is the implementation period, basically is the prediction of growth of the company because this is where we start to get in the new customer on board.

迪倫，這是羅尼。我們提供此概述是為了為投資者創造更多的可見性和可預測性，以顯示我們在公司中擁有的這兩個收入來源以及毛利率的差異。一次性收入，即實施期，基本上是對公司增長的預測，因為這是我們開始吸引新客戶的地方。

They start with the implementation and later on, follow into the recurring and reoccurring piece. So we expect both of them to grow as we grow in the company because the first one we'll fill the other one. In the group of the reoccurring and recurring businesses, as Roni mentioned, we are shifting more and more customers to the cloud and expecting over time to improve also the margin.

他們從實施開始，然後再進入重複出現的部分。所以我們希望他們都隨著我們在公司的成長而成長，因為第一個我們將填補另一個。正如 Roni 提到的，在經常性和經常性業務組中，我們正在將越來越多的客戶轉移到雲中，並期望隨著時間的推移也能提高利潤率。

Got it. That's super helpful. I guess maybe to -- as we think about those kind of cloud implementations and you talked about some of the success you're seeing in North America, it sounds like life is doing well but you did call (inaudible) in areas like workers' comp and reinsurance. So wondering maybe what are some of the nuances in those segments of the market, workers' comp and reinsurance that are allowing you to get that initial foot in the door with that customer base. And then how do you think about that as well as serving as a potential wedge to sell more of that product to those customers in the P&C side in North America?

知道了。這非常有幫助。我想也許會——當我們考慮那些類型的雲實施時，你談到了你在北美看到的一些成功，聽起來生活很好，但你確實在工人等領域打電話（聽不清）補償和再保險。所以想知道這些市場細分、工人補償和再保險中的一些細微差別是什麼，這些細微差別讓您能夠與該客戶群一起邁出第一步。那麼你如何看待這一點以及作為向北美 P&C 方面的客戶銷售更多該產品的潛在楔子？

Dylan, this is Alex speaking. So we definitely see the need in the market. If we talk about the U.S. market for Workers' Comp solutions, what we've seen is quite period over COVID, and now this segment of the market is reviving and start to be much more active. And we have a strong lever into this market. We believe that we'll close at least one deal on Workers' Comp in the first half of the year. We see the similar things around our life insurance. So we have -- on our business applications, the illustration and the underwriting. We have a very, very strong pipeline. This is a continuation of last year. And this year is -- we have a very strong start, very good prospectus in terms of the pipeline of the components with the core suite on the life, which is we brought back to the U.S. market last year. We also -- we expect to close between 1 or 2 deals in the first half of this year for sure 1 in this quarter.

迪倫，我是亞歷克斯。所以我們肯定看到了市場的需求。如果我們談論美國 Workers' Comp 解決方案市場，我們看到的是 COVID 相當長的一段時間，現在這部分市場正在復蘇並開始更加活躍。我們有進入這個市場的強大槓桿。我們相信，我們將在今年上半年至少完成一筆關於 Workers' Comp 的交易。我們在人壽保險方面也看到了類似的情況。所以我們有 - 在我們的業務應用程序中，插圖和承保。我們有一個非常非常強大的管道。這是去年的延續。而今年是 - 我們有一個非常好的開端，就組件管道而言非常好的招股說明書以及我們去年帶回美國市場的核心套件。我們還——我們預計今年上半年將完成 1 或 2 筆交易，本季度肯定會完成 1 筆交易。

And also on the P&C side, we are seeing the need of the market after our investment in the product in the last 12 to 15 months. We see the not only strong pipeline, but also very strong progress of this pipeline that we expect to sign the deals in the first quarter of this year. So definitely, what we see here is that our efforts in the North America market, the investment in the product, in the strategy and in bringing the right management team on board is giving very strong [foods].

在 P&C 方面，我們在過去 12 到 15 個月對產品進行投資後看到了市場的需求。我們不僅看到了強大的管道，而且看到了我們預計將在今年第一季度簽署交易的這條管道的非常強勁的進展。所以可以肯定的是，我們在這裡看到的是，我們在北美市場的努力、對產品的投資、對戰略的投資以及對合適的管理團隊的參與正在提供非常強大的 [foods]。

The next question is from Mayank Tandon of Needham & Company.

下一個問題來自 Needham & Company 的 Mayank Tandon。

Just wanted to dive a little more into kind of the macro. Are you guys kind of seeing just kind of extended sales cycles and things being a little slower across the board? Or are there any kind of notable geographies they're holding up maybe better or not as well we should be (inaudible).

只是想更深入地了解一下宏。你們是不是看到了某種延長的銷售週期，而且整體上的事情有點慢了？或者是否有任何類型的值得注意的地理區域，他們持有的可能更好或不如我們應該的（聽不清）。

Mayank, this is Roni Al-Dor. According to your question, there is -- if you are taking the 2 main areas that we are playing in U.S. and Europe, I think we need -- the American is a little bit much faster in terms of decision-making. In Europe, it takes more time and also because most of our core systems that we are selling in Europe at this moment, it's coming with all the additional digital data and the cloud. This is not the case all the time in U.S. because in U.S. sometimes people are choosing more core and the others, they are buying from others. So that take more time. So more or less, a little bit much faster in U.S. versus Europe.

Mayank，這是 Roni Al-Dor。根據你的問題，如果你考慮我們在美國和歐洲開展的兩個主要領域，我認為我們需要——美國人在決策方面要快一些。在歐洲，這需要更多時間，而且因為我們目前在歐洲銷售的大部分核心系統都附帶所有額外的數字數據和雲。在美國，情況並非一直如此，因為在美國，有時人們會選擇更多的核心產品，而其他人則從其他人那裡購買。所以需要更多的時間。所以或多或少，美國比歐洲快一點。

Okay. That's helpful. And then, I guess, just kind of a housekeeping question for the quarter and the outlook. I know you guys kind of called out that 3% FX-neutral growth in Europe for the fourth quarter, but I was wondering if you could give us what the overall FX-neutral growth rate was in the fourth quarter? And what the assumption for '23 is for constant currency growth?

好的。這很有幫助。然後，我想，這只是一個關於本季度和前景的內務管理問題。我知道你們提到第四季度歐洲 3% 的外匯中性增長率，但我想知道您是否可以告訴我們第四季度整體外匯中性增長率是多少？ 23 年貨幣持續增長的假設是什麼？

This is Roni. Regarding your question about Q4 constant currency, the company grew at about 6% organically, quarter-over-quarter coming from the state, Europe and Rest of World, of course. And regarding the benchmark with the guidance, we took the currency of average of last week, we are growing at the rate constant currency base of about 6.6%.

這是羅尼。關於你關於第四季度固定匯率的問題，公司有機增長約 6%，當然，來自國家、歐洲和世界其他地區的環比增長。關於帶指導的基準，我們採用了上週的平均貨幣，我們以約 6.6% 的不變貨幣基數增長。

The next question is from Kevin Kumar of Goldman Sachs.

下一個問題來自高盛的凱文庫馬爾。

Roni, can you talk a bit about the progress thus far with North American P&C? How is the go-to-market activities progressing pipeline? And I think how are you thinking about the level of investment in that segment in 2023?

Roni，你能談談北美財產險迄今為止取得的進展嗎？上市活動進展如何？我認為您如何看待 2023 年該領域的投資水平？

As Alex mentioned, I can add a little bit. We have in the P&C, we have 3 types of solutions. We have the core system generic. We have the P&C for Workers' Comp, and we have the reinsurance part. All the -- 3 of them are -- we are seeing growth. Let's start with the P&C, Workers' Comp. Again, just to repeat, we are -- during the COVID was really slowed down. Sapiens has a very good solution for this segment, very unique, relatively large type of deals. Right now, we are -- there is 4 deals on the table we are waiting a few of them already select us. We have some kind of blueprint phase and contract negotiation. And as we believe we can -- hopefully, we can turn at least 1 deal -- first half of the year, maybe another deal and hopefully more, that's about the Workers' Comp.

正如亞歷克斯提到的，我可以補充一點。我們在 P&C 中有 3 種解決方案。我們有通用的核心系統。我們有 Workers' Comp 的 P&C，我們有再保險部分。所有 - 其中 3 個 - 我們都看到了增長。讓我們從 P&C，Workers' Comp 開始。再次重申，我們是——在 COVID 期間確實放慢了速度。 Sapiens 為這個細分市場提供了非常好的解決方案，非常獨特，交易類型相對較大。現在，我們——我們正在等待 4 筆交易，其中一些已經選擇了我們。我們有某種藍圖階段和合同談判。正如我們相信的那樣——希望我們能在今年上半年至少達成一項協議，也許是另一項協議，希望更多，那就是關於工人的補償。

On the P&C part, again, just to remind quickly, we -- in the last few years, we combined policy administration system with -- from that we acquired from Adaptik with a claims system. And we -- on top of it, we build our billing system. We integrate all together, we build -- we put them on the cloud, we invest in digital, data and so on. Right now, after the few quarters that we decide to more put investment on the existing customer before we are going back to the market. Right now, we start the year with at least one we already signed. We are waiting in the next -- we hope in this quarter to sign another deal and we have a good pipeline. So that's another positive thing.

在 P&C 部分，再次快速提醒，我們 - 在過去幾年中，我們將政策管理系統與 - 從我們從 Adaptik 獲得的索賠系統相結合。我們 - 最重要的是，我們建立了我們的計費系統。我們將所有內容整合在一起，我們構建——我們將它們放在雲端，我們投資於數字、數據等。現在，經過幾個季度後，我們決定在重返市場之前對現有客戶進行更多投資。現在，我們以至少已經簽署的協議開始新的一年。我們正在等待下一個 - 我們希望在本季度簽署另一筆交易並且我們有一個很好的管道。所以這是另一個積極的事情。

Reinsurance, it's something that we are a market leader in this area competing with (inaudible) that just recently does (inaudible) an [SAP], but we have a very strong product. We are the largest in the industry. So we continue to sign deals in this area as well. So overall, positive right now.

再保險，這是我們在這個領域的市場領導者，與最近剛剛（聽不清）[SAP] 競爭的（聽不清），但我們有一個非常強大的產品。我們是業內最大的。因此，我們也繼續在這一領域簽署協議。總的來說，現在是積極的。

That's helpful. And then I had a question I guess on cloud progress, it looks like kind of steady progress. A lot of the new deals are cloud. You're continuing to see cloud migration activity. Curious how that impacts kind of the software gross margin over the medium term, just given that you disclosed some additional details on different revenue and the gross margins for those buckets. Curious kind of how the cloud progress kind of impact that over the medium term?

這很有幫助。然後我有一個關於雲計算進展的問題，它看起來像是一種穩定的進展。許多新交易都是雲計算的。您將繼續看到雲遷移活動。很好奇這會如何影響中期的軟件毛利率，只是因為您披露了一些關於不同收入和這些桶的毛利率的額外細節。好奇雲計算的進展如何在中期產生影響？

This is Roni. So the initial step, I would say, 1 up to 2 years, this creates some headwind in terms of the gross margin. But as we continue to year #3 and many years to come, this will improve the gross margin that we talk. So if we raise at the range of 51% to 55%, the gross margin of the cloud will improve our gross margin mid-term going forward.

這是羅尼。所以第一步，我想說，1 到 2 年，這在毛利率方面造成了一些阻力。但隨著我們繼續進入第三年和未來許多年，這將提高我們所說的毛利率。因此，如果我們在 51% 至 55% 的範圍內提高，雲計算的毛利率將在中期提高我們的毛利率。

The next question is from Surinder Thind of Jefferies.

下一個問題來自 Jefferies 的 Surinder Thind。

The first question I'd like to ask is a continuation of kind of the discussion from last quarter where when we were talking about the pipeline of the opportunities, it was generally described as being fairly robust, which is kind of how you described the pipeline currently, but there was also some concern that maybe the front end of the pipeline. The number of discussions that you were having wasn't quite there. The clients were perhaps holding off and wanting to kind of wait and see what 2023 might look like. Can you talk about what the front end of the pipeline looks like at this point and if there's been any improvement there? Obviously, that impacts the longer-term numbers given the longer sales cycle.

我想問的第一個問題是上個季度討論的延續，當我們談論機會的管道時，它通常被描述為相當穩健，這就是你描述管道的方式目前，但也有人擔心管道的前端。您進行的討論的數量並不完全存在。客戶可能正在推遲並希望等待，看看 2023 年會是什麼樣子。您能否談談目前管道的前端是什麼樣子以及那裡是否有任何改進？顯然，鑑於較長的銷售週期，這會影響長期數字。

Yes, this is Roni Al-Dor. In order to build our pipeline, we did some improvement, one in the existing clients that we have. Sapiens has more than 600 customers, and we put much more investment on the account manager or customer success environment together with sales. So we are coming with a lot of programs and ideas what we can do more on the existing customers. And also on the North America market, we increased the sales organization, including business development and sales. And together with all of these investments, we are also improving and put more effort on the marketing front. We also did a very successful client conference recently with our client in U.S.

是的，這是 Roni Al-Dor。為了建立我們的管道，我們做了一些改進，一個是我們現有的客戶。 Sapiens 擁有 600 多個客戶，我們在客戶經理或客戶成功環境以及銷售方面投入了更多資金。因此，我們帶來了很多計劃和想法，我們可以對現有客戶做更多的事情。同樣在北美市場，我們增加了銷售組織，包括業務開發和銷售。連同所有這些投資，我們也在改進並在營銷方面投入更多精力。我們最近還與我們在美國的客戶舉行了一次非常成功的客戶會議。

Right now, in May, we plan to do a big event in Barcelona and later on in North America. So overall, we have invested for 2024. So that general answer. We still see building the pipeline, but it takes time. So that's the overall my answer.

現在，五月份，我們計劃在巴塞羅那舉辦一場大型活動，然後再在北美舉辦。所以總的來說，我們已經為 2024 年進行了投資。所以這是一般性的答案。我們仍然看到建立管道，但這需要時間。這就是我的總體答案。

Just to add a comment on this. Roni mentioned increasing the customer success team, doing more cross-selling, upsell opportunities from the existing. So we have the business application, all the small components that we are selling, illustration, underwriting, reinsurance. And on top of that, right now, we are also successful with data and digital as additional incremental revenue for our existing customers. So this is another layer of improvement.

只是對此添加評論。 Roni 提到增加客戶成功團隊，從現有的交叉銷售和追加銷售中獲得更多機會。所以我們有業務應用程序，我們銷售的所有小組件，插圖，承保，再保險。最重要的是，現在，我們還成功地將數據和數字作為現有客戶的額外增量收入。所以這是另一層改進。

And then in terms of some of the color around the additional disclosures that you provided. A question about the preproduction revenues here. Can you maybe talk about the average duration of that segmentation? Is that roughly 6 months, a year's worth of work, how should we think about the average duration and how distributed the client projects are over the course of that segment?

然後根據您提供的額外披露的一些顏色。這裡有一個關於試生產收入的問題。您能談談該細分的平均持續時間嗎？這大約是 6 個月，一年的工作量，我們應該如何考慮平均持續時間以及客戶項目在該部分過程中的分佈情況？

We need to differentiate between 2 groups. There are the core system solution that average implementation can run between 18 months to up to 3 years. And the business application solution that are much smaller in size and implementation can run from 6 months to maximum 18 months. We are selling much more revenue on the core system. So you can imagine that most of the revenue is running between 1 to 3 years.

我們需要區分兩組。有核心系統解決方案，平均實施時間可以在 18 個月到長達 3 年之間運行。規模和實施都小得多的業務應用程序解決方案可以運行 6 個月到最多 18 個月。我們在核心系統上銷售的收入要多得多。所以你可以想像大部分收入都在 1 到 3 年之間運行。

Got it. And then so if we were to look at your guidance from that perspective. At this point in time, what percentage of your revenues are already associated with projects that are currently underway that either fall into the first bucket plus the preproduction. It sounds like the vast majority of revenue should be there already for what you're guiding. Is that the right way to think about it, or any quantitative numbers...

知道了。然後，如果我們要從那個角度來看您的指導。在這個時間點，您的收入中有多少百分比已經與當前正在進行的項目相關聯，這些項目要么屬於第一個桶，要么屬於預生產。聽起來絕大部分收入應該已經用於您所指導的內容。這是考慮它的正確方法，還是任何定量數字......

Both. It's both. The implementation is basically all the deals that we signed in the last, I would say, 2 years that will continue in 2023. And eventually, we'll move to the upper bucket, which is the big one and more profitable one. And the recurring piece, which is recurring (inaudible) will continue going forward and over time will increase as they have another layer from the implementation [mode].

兩個都。兩者都是。實施基本上是我們上次簽署的所有交易，我想說，2 年將在 2023 年繼續。最終，我們將移至上層桶，這是大桶和更有利可圖的桶。重複出現的部分（聽不清）將繼續向前發展，並且隨著時間的推移會增加，因為他們從實施 [模式] 中獲得了另一層。

So I apologize, just a point of clarification here. So is it like 5% of your projects still need to start? How should we think about that revenue that to get to your guide?

所以我很抱歉，這裡只是澄清一點。那麼是不是還有 5% 的項目需要啟動？我們應該如何考慮獲得指南的收入？

No. We are signing between 20 to 30 new logos every year coming from core system to new logo. The initial revenue that are coming from the new logo are mainly in the bucket, which is the implementation piece. Only after the implementation piece is ended, they move to the post production recurring, and reoccurring revenue.

不會。我們每年都會簽署 20 到 30 個新標識，從核心系統到新標識。來自新徽標的初始收入主要在桶中，即實施部分。只有在實施部分結束後，他們才會轉向後期製作，並產生經常性收入。

The next question is from Chris Reimer of Barclays.

下一個問題來自巴克萊銀行的 Chris Reimer。

I wanted to touch on the operating margin a little bit. If you could give some color around the moving parts there, what's contributing to the stability and even expansion, especially given your ongoing investments in R&D and your marketing teams?

我想稍微談談營業利潤率。如果您可以為那裡的活動部分添加一些顏色，那麼是什麼有助於穩定性甚至擴展，特別是考慮到您對研發和營銷團隊的持續投資？

This is only I think major factor in our operating margin is coming from our offshore activity. This is the assets that we have in the company today, that basically help us doing delivery in R&D across all products and geographies. This contribute every additional 5% in offshore operation creates additional impact of up to 1% on operating margin. So we continue growing the offshore operations. This is critical vehicle to Sapiens and for our customers.

這只是我認為我們營業利潤率的主要因素來自我們的離岸活動。這是我們今天在公司擁有的資產，基本上可以幫助我們在所有產品和地區進行研發交付。離岸業務每增加 5%，就會對營業利潤率產生高達 1% 的額外影響。因此，我們繼續發展離岸業務。這對 Sapiens 和我們的客戶來說都是至關重要的工具。

During 2023, the macroeconomic environment creates a lot of uncertainty like inflation, currency, exchange rate and also employment market. We decided to be cautious on there. Therefore, we increased the margin in a moderate way, and we continue to monitor this closely as we go forward.

2023年，宏觀經濟環境帶來了很多不確定性，比如通脹、貨幣、匯率以及就業市場。我們決定在那裡保持謹慎。因此，我們以適度的方式增加了利潤率，並且在我們前進的過程中繼續密切關注這一點。

Great. And just lastly, how are you looking at M&A currently? Do you feel that you're well-positioned after the recent investments in Europe? Or could you perhaps be still looking for other opportunities for growth?

偉大的。最後，您目前如何看待併購？在最近對歐洲的投資之後，您覺得自己處於有利地位嗎？還是您可能仍在尋找其他增長機會？

We are actively looking for M&A. We have a dedicated team that look after. We see more and more opportunity. Still the main challenge is the valuation. This is -- what is still stopping us to do deals. But based on the market, we believe that also the private company can start understand that they need to drop the valuation, and then we can try to do more deals.

我們正在積極尋找併購。我們有一個專門的團隊來照顧。我們看到越來越多的機會。主要挑戰仍然是估值。這是 - 仍然阻止我們進行交易的原因。但基於市場，我們相信私人公司也可以開始明白他們需要降低估值，然後我們可以嘗試做更多的交易。

If I need just to add one more color. I think from a balance sheet position, we are very healthy. We have a very strong cash position, and we are generating cash all the time. So this will support us when we move forward to doing M&A. We'd like to go back to the history when we completed 2 M&A every year. Again, as Roni mentioned, the valuation was the issue. And right now, it's coming to reasonable price currently.

如果我只需要添加一種顏色。我認為從資產負債表的角度來看，我們非常健康。我們的現金狀況非常好，而且我們一直在產生現金。因此，當我們繼續進行併購時，這將為我們提供支持。我們想回到我們每年完成 2 次併購的歷史。同樣，正如 Roni 提到的那樣，估值是問題所在。現在，它的價格正在變得合理。

The next question is from [Alexei Gogolev] of JPMorgan.

下一個問題來自摩根大通的 [Alexei Gogolev]。

This is Alexei from JPMorgan. I was wondering if you could provide a bit more color on the 2023 constant currency revenue growth and margin guidance. So just following up on what some of my colleagues have already asked. So could you explain or maybe give some trajectory by region, whether you think North America would be able to grow faster than Europe in 2023 or vice versa? And I think in the past, you've also given some assumption in terms of what you think in terms of revenue could not materialize in a given year. Could you maybe give some indication of what you expect in terms of headwinds?

我是摩根大通的 Alexei。我想知道您是否可以提供更多關於 2023 年恆定貨幣收入增長和利潤率指導的顏色。所以只是跟進我的一些同事已經問過的問題。那麼，您能否按地區解釋或給出一些軌跡，您認為北美在 2023 年的增長速度是否能夠超過歐洲，反之亦然？而且我認為在過去，您還根據您認為在特定年份無法實現的收入做出了一些假設。您能否就逆風方面的預期給出一些指示？

Alexei, this is Roni. I think when Roni said in his comment, you feel the good momentum and the opportunity that we have right now ahead of us in the state. Coming from the 3 core system and also the business application solution that we have. We will see -- we see right now that North America has a potential to grow faster than 2022 that we have, while European territory will continue to grow, first of all, potentially at a lower pace because of the slowdown. And we are right now in macroeconomic environment. So we are very cautious also with the revenue and profitability level. So this is regarding the growth rate.

阿列克謝，這是羅尼。我認為當 Roni 在他的評論中說時，你會感受到我們現在在該州面前的良好勢頭和機會。來自 3 核心系統以及我們擁有的業務應用程序解決方案。我們將看到 - 我們現在看到北美有可能比我們擁有的 2022 年增長得更快，而歐洲領土將繼續增長，首先，由於經濟放緩，可能會以較低的速度增長。我們現在處於宏觀經濟環境中。因此，我們對收入和盈利水平也非常謹慎。所以這是關於增長率的。

In terms of profitability, as I mentioned, we have a retail of offshore operation and also economy of scale. We will be able to improve our margin. We put a cautious environment because of the inflation, currency that we cannot control. And therefore, we increased a little bit of operating margin to 17.6% to 18%.

在盈利能力方面，正如我提到的，我們有離岸零售業務和規模經濟。我們將能夠提高我們的利潤率。由於我們無法控制的通貨膨脹和貨幣，我們營造了一個謹慎的環境。因此，我們將營業利潤率略微提高至 17.6% 至 18%。

Okay. So just to confirm, do you think that North America will grow faster than Europe and the overall constant currency growth for the year is between 6% and 7%, I think you guys said 6.6%.

好的。所以我想確認一下，你認為北美的增長速度會比歐洲快嗎？今年的整體貨幣增長率在 6% 到 7% 之間，我想你們說的是 6.6%。

That's incorrect. The organic growth for 2023 is expected to be on a constant currency base, 6.6%. And I just want to make -- be accurate. I would say that North America can grow faster than what it grew in 2022, while Europe will continue to grow potentially with the slowdown, slightly slower than 2022. Both of them are going to grow.

那是不正確的。預計 2023 年的有機增長將以 6.6% 的固定匯率為基礎。我只想說——準確一點。我想說北美的增長速度可能會超過 2022 年的增長速度，而歐洲將在放緩的情況下繼續增長，略低於 2022 年。兩者都會增長。

(Operator Instructions) There are no further questions at this time. Before I ask Ms. Yaffa Cohen-Ifrah to go ahead with her closing statement, I would like to remind participants that a replay of this call is scheduled to begin in 2 hours. In the U.S., please call 1 (888) 269 005. In Israel, please call (03) 9255-938. And internationally, please call (972) 3-9255-938. Ms. Yaffa Cohen-Ifrah, would you like to begin to make your closing statements.

（操作員說明）目前沒有其他問題。在我請 Yaffa Cohen-Ifrah 女士繼續她的閉幕詞之前，我想提醒與會者，本次電話會議的重播計劃在 2 小時後開始。在美國，請致電 1 (888) 269 005。在以色列，請致電 (03) 9255-938。在國際上，請致電 (972) 3-9255-938。 Yaffa Cohen-Ifrah 女士，請開始做您的閉幕詞。

Thank you. Thank you for joining the call today. Please note that Sapiens will participate in the William Blair Tech Innovator Conference on March 14. We look forward to speaking with you soon and are always happy to answer any follow-up calls. Thank you very much for joining the call.

謝謝。感謝您今天加入電話會議。請注意，Sapiens 將於 3 月 14 日參加 William Blair Tech Innovator Conference。我們期待盡快與您交談，並隨時樂意接聽任何後續電話。非常感謝您加入電話會議。

Thank you. This concludes the Sapiens International Corporation Fourth Quarter 2022 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

謝謝。 Sapiens International Corporation 2022 年第四季度業績電話會議到此結束。感謝您的參與。您可以繼續並斷開連接。