Sapiens International Corporation NV (SPNS) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Sapiens International Corporation's 2023 fourth quarter and full year financial results conference call. 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) 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?

女士們、先生們，感謝大家的支持，並歡迎參加 Sapiens International Corporation 2023 年第四季和全年財務業績電話會議。Sapiens 在今天早上開市前發布了一份新聞稿，並發佈在公司網站 www.sapiens.com 上。 （操作員指示）我現在想將電話轉給 Sapiens 首席行銷長兼投資者關係主管 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 2023. 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. Following the summary of the results, we will be available to answer any questions.

謝謝你，接線生。我歡迎大家參加 Sapiens 電話會議，回顧我們 2023 年第四季和全年的業績。今天與我一起參加電話會議的是總裁兼執行長 Roni Al-Dor 先生； Roni Giladi 先生，財務長；以及首席策略長 Alex Zukerman 先生。在總結結果後，我們將可以回答任何問題。

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 contents of the call. Sapiens expressly disclaim any obligations to update or revise any of these forward-looking statements whether because of future events, new information, a change in its view or expectations or otherwise.

在開始之前，我想提醒大家，這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聲明的義務，無論是由於未來事件、新資訊、觀點或期望發生變化還是其他原因。

On today's call, we will refer to 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，我們將提及非公認會計準則財務指標。我們今天早上開市前發布的新聞稿中提供了 GAAP 與非 GAAP 業績的調整表。本次電話會議的重播將在電話會議結束後透過公司網站的投資者關係部分或透過網站連結進行，該連結可在我們今天發布的收益報告中找到。

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

我想把電話轉給 Sapiens 總裁兼執行長 Roni Al-Dor，Roni？

Thank you Yaffa, thank you for joining us today 2023 was the year in which Sapiens successful execute our growth strategy across both our regions and our product categories. I'm happy to report that in first quarter of 2023, Sapiens again deliver strong growth and resilience.

謝謝 Yaffa，謝謝您今天加入我們。2023 年是 Sapiens 在我們的地區和產品類別中成功執行我們的成長策略的一年。我很高興地向大家報告，2023 年第一季度，Sapiens 再次實現了強勁的成長和復原力。

Let's dive into the details. I will start with highlights from 2023 and then review the fourth quarter performance in 2023, revenue increased by 8.4% and operating profit was by 12.8%. Our growth was distributed across the region we serve. On a regional basis, Europe was impressive 10.5%. North America achieved growth of 7.4%.

讓我們深入了解細節。我先從2023年的亮點開始，然後回顧2023年第四季的業績，營收成長8.4%，營業利潤成長12.8%。我們的成長分佈在我們服務的整個地區。從地區來看，歐洲的成長率高達 10.5%，令人印象深刻。北美地區實現了 7.4% 的成長。

Our annual operating margin was a robust 18.3%, reflecting our continuous commitment to position efficiency and prudent financial management. I would like to emphasize several notable business achievement from 2023, that will serve a strong foundation for our objective in 2024.

我們的年營業利益率為 18.3%，反映了我們對部位效率和審慎財務管理的持續承諾。我想強調 2023 年的幾項顯著業務成就，這將為我們實現 2024 年的目標奠定堅實的基礎。

Sales as promised, our North America business has experienced robust growth, and we are well positioned to sustain this growth in 2024, we expand our North America sales and marketing team, reinforcing our presence and capabilities in this important market. This investment will ensure that we are equipped to continue to grow in this key region.

銷售如承諾，我們的北美業務經歷了強勁的成長，我們有能力在 2024 年維持這種成長，我們擴大了北美銷售和行銷團隊，增強了我們在這個重要市場的存在和能力。這項投資將確保我們有能力在這個關鍵地區繼續發展。

Second, we successfully introduced the global customer care engagement model, which is playing a pivotal role in enhancing our customer relationship and creating stronger connection with our client furthermore, we achieved significant increase in both new and core sales, showcasing our ability not only to retain existing clients, but also to attract new ones.

其次，我們成功引入了全球客戶服務參與模式，該模式在增強我們的客戶關係並與客戶建立更牢固的聯繫方面發揮著關鍵作用，此外，我們實現了新銷售額和核心銷售額的顯著增長，展示了我們不僅有能力留住客戶現有客戶，同時也吸引新客戶。

Third, we made significant progress in expanding our market share by signing about 30 new deals with both new and existing customer, across core Data, digital and cloud in P&C, Workers' Comp Life and Reinsurance. This expansion is testament to our commitment to growth and increasing recognition of our value proposition in the insurance market. In addition, in 2023, we completed multiple successful go-lives globally.

第三，我們在擴大市場份額方面取得了重大進展，與新客戶和現有客戶簽署了約 30 份新協議，涉及財產險、工人補償壽險和再保險領域的核心數據、數位和雲端。此次擴張證明了我們對成長的承諾以及我們在保險市場的價值主張的日益認可。此外，2023 年，我們在全球範圍內完成了多次成功上線。

Lastly, we have recently started collaboration with Gjensidige to expand our reach and accelerated growth to manage this new channel. We have hired a Senior Executive to develop our strategy and oversea the SI relationship.

最後，我們最近開始與 Gjensidige 合作，以擴大我們的覆蓋範圍並加速成長，以管理這個新管道。我們聘請了一位高階主管來制定我們的策略和海外 SI 關係。

Our plan is to work with SI mostly in upper tiers and specific regions. We are currently in the process of selecting our preferred this and have committed to the support. As an example, in 2023, we partner with a leading SI in one of the large worker competition deals in North America. We believe working with SI will have a mid to long-term impact. This achievement underscore our readiness to tackle the challenges and opportunities in 2024.

我們的計劃是與 SI 主要在上層和特定地區合作。我們目前正在選擇我們的首選，並承諾提供支援。例如，2023 年，我們與一家領先的 SI 合作，參與了北美的一項大型工人競爭交易。我們相信與 SI 的合作將產生中長期影響。這項成就強調我們已做好應對 2024 年挑戰和機會的準備。

Now let's delve into our regional performance. Starting with North America. As I mentioned earlier, our North America sales marketing, customer success, sales support, and product marketing team. We had expanded with the express goal of financing and supporting sales growth these expansions aligned with the demand we have experienced in North America.

現在讓我們深入研究一下我們的區域表現。從北美開始。正如我之前提到的，我們的北美銷售行銷、客戶成功、銷售支援和產品行銷團隊。我們進行擴張的明確目標是融資和支持銷售成長，這些擴張符合我們在北美經歷的需求。

We are particularly excited about the momentum we experienced in the life segment in North America and are committed to capitalize on this growth opportunity. We close new deals in life and annuity for both score and components, a significant step up from prior years.

我們對北美壽險領域所經歷的勢頭感到特別興奮，並致力於利用這一成長機會。我們在人壽和年金方面完成了分數和組成部分的新交易，比前幾年邁出了一大步。

P&C and workers' compensation continue to be verticals in North America, where we are adding new customers. In 2023, we sign new P&C customer and new workers' comp deals. Our proven track record in successful implementation and ongoing support. We have also a key factor in winning these deals.

財產險和工人賠償在北美仍然是垂直的，我們正在增加新客戶。2023 年，我們簽署了新的財產保險客戶和新的工人補償協議。我們在成功實施和持續支援方面擁有良好的記錄。我們還有一個贏得這些交易的關鍵因素。

Insurance remains an active segment in North America for 2023, in Sapiens sign new customers on the platform. We are winning in reinsurance, we saw our award-winning solution, enabling insurers to automate and manage end-to-end program. With sufficiency and control to seamless integration in EMEA and APAC region. We signed P&C deals across all of our products and new deals for our CoreSuit, Life platform.

到 2023 年，保險仍然是北美的一個活躍細分市場，Sapiens 在該平台上簽下了新客戶。我們在再保險領域取得了勝利，我們看到了我們屢獲殊榮的解決方案，使保險公司能夠自動化和管理端到端計劃。擁有足夠的能力和控制能力，可以在歐洲、中東和非洲 (EMEA) 和亞太地區實現無縫整合。我們簽署了涵蓋所有產品的財產保險協議，並為我們的 CoreSuit、Life 平台簽署了新協議。

Our pipeline and backlog coming into 2024 as strong across all of our product lines including P&C and Life and Pension deliver in SaaS model. This positions as favorably to maintain momentum, secure new deals, and expand our presence in these markets.

到 2024 年，我們所有產品線（包括財產保險、人壽保險和退休金）的管道和積壓訂單都將保持強勁，並以 SaaS 模式交付。這有利於保持勢頭、獲得新交易並擴大我們在這些市場的影響力。

Our commitment to growth in North America, EMEA and APAC is underscored by increasing the size of our teams in these regions, including additional headcount across sales, marketing, and product marketing. Furthermore, we anticipate continued momentum and growth in cross-selling opportunity within our existing accounts across all regions throughout 2024.

我們對北美、歐洲、中東和非洲和亞太地區成長的承諾透過擴大這些地區的團隊規模來強調，包括增加銷售、行銷和產品行銷方面的人員數量。此外，我們預計到 2024 年，我們所有地區現有帳戶的交叉銷售機會將保持持續成長勢頭和成長。

Additionally, our traditional territories in EMEA and APAC are showing significant growth potential, particularly in the Life and Pension and P&C space. This growth is a direct result of the investment we have made over the past two to three years, strengthening our foothold in these markets.

此外，我們在歐洲、中東和非洲和亞太地區的傳統領域正顯示出巨大的成長潛力，特別是在人壽和退休金以及財產和意外險領域。這種成長是我們過去兩到三年投資的直接結果，加強了我們在這些市場的立足點。

As mentioned in the previous call, we believe that the APAC region, which has experienced growth and has shown our successful learn and expand strategy, will be additional growth catalyst for Sapiens in the near future we are building a pipeline in this region, and I'm excited about the progress we have made with cloud implementations.

正如之前的電話會議中提到的，我們相信亞太地區經歷了增長並展示了我們成功的學習和擴展戰略，在不久的將來將成為 Sapiens 的額外增長催化劑，我們正在該地區建立管道，並且我我們對雲端實施方面的進展感到興奮。

Now turning to the fourth quarter, our overall revenue growth in Q4 was impressive at 9.6% and Q4 operating margin was 18.4%.

現在轉向第四季度，我們第四季的整體營收成長令人印象深刻，達到 9.6%，第四季營業利潤率為 18.4%。

I want to highlight two successful go-lives in the fourth quarter. First, in the Nordic region, a leading Norwegian insurance company Gjensidige of GPF went live with Sapiens' CoreSuite for Life and Pension and Sapiens, cloud services for their individual saving it is very exciting GPF is the first Nordic customer to go live with CoreSuite, which will expand the insurer's digital capability, boost its leading market position.

我想強調第四季的兩次成功上線。首先，在北歐地區，GPF的一家領先的挪威保險公司Gjensidige上線了Sapiens的CoreSuite for Life and Pension和Sapiens，為他們的個人儲蓄提供雲端服務，這非常令人興奮，GPF是第一個上線CoreSuite的北歐客戶，這將擴大保險公司的數位化能力，提升其領先的市場地位。

Second, a leading European automotive brand went live with Sapiens IDITSuite and Sapiens cloud for the company's sales guarantee and warranty insurance lines of business Sapiens solution, the place the company existing system for policy portfolio management and claims management.

其次，一家領先的歐洲汽車品牌啟用了 Sapiens IDITSuite 和 Sapiens 雲，用於該公司的銷售保證和保固保險業務線 Sapiens 解決方案，該解決方案是該公司現有的保單組合管理和索賠管理系統。

Phase 1 of the implementation for automotive warranty took just over a year with the second phase of for the quality implementation plan for 2024 and lastly, in the fourth quarter, we were engaged by Saskatchwan, Workers' Compensation Board to transform its co-workers compensation system. Saskatchwan WCB's selected Sapiens' CoreSuite for his compensation, digital suite, and intelligence to transform its legacy core system with the modern integrated platform for efficient service delivery.

汽車保固的第一階段實施僅用了一年多的時間，第二階段的品質實施計劃為2024 年，最後，在第四季度，我們受薩斯喀徹溫省工人賠償委員會委託，對其同事薪酬進行了改革系統。薩斯喀徹溫 WCB 選擇 Sapiens 的 CoreSuite 來實現其薪酬、數位套件和智能，以透過現代整合平台改造其傳統核心系統，以實現高效的服務交付。

In summary, our regional performance in EMEA, in North America and strong momentum in fourth quarter as we exited 2023, positioned us well for continued growth and success in 2024. We remain dedicated to deliver value to our customers and shareholders. Looking ahead to 2024, I want to share some key initiative that will guide our strategic direction.

總而言之，我們在歐洲、中東和非洲、北美的區域業績以及 2023 年結束後第四季度的強勁勢頭，為我們在 2024 年的持續成長和成功奠定了良好的基礎。我們始終致力於為客戶和股東創造價值。展望 2024 年，我想分享一些引導我們策略方向的關鍵舉措。

First, continue our transition to SaaS, which all our product with our Sapiens P&C insurance platform, Sapiens insurance platform include an end to end integrated business-led SaaS platform with advanced technology and data capabilities. Sapiens insurance platform unifies our core insurance capabilities, our digital engagement solution, our advanced data capabilities, and our ecosystem partners into a coherent, fully integrated, yet modular platform focused on our customers' business needs. Harnessing the power of our ML and AI capabilities, our decision management tools and our new generative AI capabilities to provide an innovating data-driven operation.

首先，繼續向SaaS轉型，我們所有的產品以及我們的Sapiens P&C保險平台，Sapiens保險平台都包括一個端到端整合的業務主導的SaaS平台，具有先進的技術和數據能力。Sapiens 保險平台將我們的核心保險功能、數位參與解決方案、先進的數據功能以及生態系統合作夥伴統一為一個連貫、完全整合的模組化平台，專注於客戶的業務需求。利用我們的機器學習和人工智慧功能、決策管理工具和新的生成式人工智慧功能的力量，提供創新的數據驅動操作。

Sapiens insurance platform, operating value lies in technology standardization across all products using a common tech stack and reusability of components across our various proposition. The platform value proposition for our customer and prospect is aimed at enhancing efficiency, driving growth, and fostering innovation. Sapiens plans to continue leading with our SaaS based offering across all our markets and all our products. The new deals we are signing now are based on our SaaS model, which aligned with our core strategy going forward.

Sapiens 保險平台的營運價值在於使用通用技術堆疊的所有產品的技術標準化以及我們各種主張中組件的可重用性。我們的客戶和潛在客戶的平台價值主張旨在提高效率、推動成長和促進創新。Sapiens 計劃繼續在所有市場和所有產品中憑藉基於 SaaS 的產品保持領先地位。我們現在簽署的新交易是基於我們的 SaaS 模式，這與我們未來的核心策略一致。

In parallel, we are engaging with our existing customer base across our solution to initiate a SaaS transition program for customers currently on-prem. Second, expanding North America, where we have made significant investments and sustain our growth in Europe, where we have a strong footprint by leveraging existing localization and reference to acquire new customers. In addition, focusing on crore selling to existing customer to take advantage of our wide range of product Sapiens' offers.

同時，我們正在透過我們的解決方案與現有客戶群合作，為當前本地客戶啟動 SaaS 過渡計畫。其次，擴大北美業務，我們在北美進行了大量投資，並維持了在歐洲的成長，在歐洲，我們透過利用現有的本地化和參考來獲取新客戶，從而擁有強大的足跡。此外，我們也專注於向現有客戶銷售數千萬美元，以利用我們 Sapiens 提供的廣泛產品。

In conclusion, we are exciting about the opportunity that lie ahead in 2024, our strong performance in 2023 and strategic initiatives position us well for continued growth and success.

總之，我們對 2024 年面臨的機會感到興奮，我們在 2023 年的強勁表現以及策略性舉措為我們的持續成長和成功奠定了良好的基礎。

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財務長羅尼·吉拉迪 (Roni Giladi)。羅尼？

Thank you, Roni. I will begin my commentary by reviewing the fourth quarter and full year 2023 non-GAAP results, followed by comments on the balance sheet and cash flow.

謝謝你，羅尼。我將首先回顧 2023 年第四季和全年非 GAAP 業績，然後對資產負債表和現金流進行評論。

I will wrap up with our guidance for 2024 revenue in the fourth quarter of 2023 was $130.9 million, an increase of 9.6% compared to $119.5 million in the fourth quarter of 2022 and slightly higher than the previous quarter.

最後，我將總結我們對 2024 年營收的指導，2023 年第四季的營收為 1.309 億美元，比 2022 年第四季的 1.195 億美元成長 9.6%，略高於上一季。

On a constant currency basis, our revenue grew by 7.5%. Revenue mix revenue from current software product and relocating post-production services totaled $19.4 million compared to $77.7 million in the same quarter of last year at $12.7 million increase or 16.3% growth from Q4 of 2022.

以固定匯率計算，我們的營收成長了 7.5%。目前軟體產品和遷移後製服務的收入組合收入總計 1,940 萬美元，而去年同期為 7,770 萬美元，較 2022 年第四季增加 1,270 萬美元，成長 16.3%。

This recurring software product and reoccurring postproduction revenue. It represented 69.1% of our total revenue in the fourth quarter compared to 65% in Q4 of last year. We are extremely pleased by the overall growth and the growth rate of recurrence of the projects in reoccurring postproduction revenue.

這種經常性的軟體產品和經常性的後製收入。它佔第四季總收入的 69.1%，而去年第四季為 65%。我們對專案重複後製收入的整體成長和重複成長率感到非常高興。

Geographic breakdown, revenue, North America was $54.9 million compared to $50.8 million in the year ago quarter, an increase of 8% and $4.1 million, revenue in Europe was $65.2 million, a year-over-year increase of 14.7% compared to $56.9 million on a constant currency basis revenue in Europe grew by 10.3%. Revenue in rest of world, which includes South Africa and APAC, was $10.8 million, a decline of 8.3% compared to prior-year quarter due to customer Phase 1 go-live in APAC profitability.

地理細分，收入，北美為5,490 萬美元，較上年同期的5,080 萬美元成長8%，較上年同期的410 萬美元成長8%；歐洲收入為6,520 萬美元，較上年同期的5,690 萬美元成長14.7%以固定匯率計算，歐洲收入成長了 10.3%。由於亞太地區客戶第一階段獲利能力的上線，包括南非和亞太地區在內的世界其他地區的收入為 1,080 萬美元，較上年同期下降 8.3%。

Operating profit and margin in the fourth quarter of 2023 were $24.2 million and 18.4% of total revenue, respectively, compared with $21.1 million and 17.6% in Q4 of 2022. We expanded our profitability by improving our gross margin by 40 basis points and reducing our operational expenses margin by 40 basis points also, although in terms of dollars operational expenses increased, this resulted in an 80 basis point improvement in our operating margin, we are confident that we can continue to both grow our business and further improve our gross margin.

2023 年第四季的營業利潤和利潤率分別為 2,420 萬美元和總收入的 18.4%，而 2022 年第四季為 2,110 萬美元和 17.6%。我們透過將毛利率提高 40 個基點並將營運費用利潤率降低 40 個基點來擴大獲利能力，儘管以美元計算營運費用增加，這導致我們的營運利潤率提高了 80 個基點，但我們有信心我們可以繼續發展我們的業務並進一步提高我們的毛利率。

During the quarter, we had net financial income of $0.6 million coming mainly from interest income, which was partially offset by interest expenses of $0.5 million related to our debenture net income attributable to Sapiens shareholders for the fourth quarter of 2023 was $20.1 million, up 11.4% from $18 million in Q4 of 2022. Earnings per diluted share was $0.36 for the fourth quarter of 2023, up 12.5% from $0.32 of the fourth quarter of 2022.

本季度，我們的淨財務收入為60 萬美元，主要來自利息收入，部分被與我們的債券相關的利息支出50 萬美元所抵銷。2023 年第四季歸屬於Sapiens 股東的淨利為2,010 萬美元，成長11.4%較 2022 年第四季的 1,800 萬美元成長 %。2023 年第四季攤薄每股收益為 0.36 美元，較 2022 年第四季的 0.32 美元成長 12.5%。

Turning now to our full year result.

現在轉向我們的全年業績。

For the 12-months ended December 31, 2023. 2023, revenue increased to $514.8 million, up 8.4% compared to $474.8 million in 2022, and in line with our higher range of our guidance. North America revenue represented 41% of total revenue and European revenue represented 50% of total revenue.

截至 2023 年 12 月 31 日的 12 個月，營收增至 5.148 億美元，較 2022 年的 4.748 億美元成長 8.4%，符合我們較高的指導範圍。北美收入佔總收入的41%，歐洲收入佔總收入的50%。

On a constant currency basis, our annual revenue increased by 8.1% in 2023. In 2023 the revenue growth came mainly from 9.8% revenue growth in Europe on a constant currency base, 7.4% growth in North America, and we'd like to remind you that in 2022, we grew 4.3% in North America and the Rest of World, which grew by just under 2% for the revenue mix in 2023, revenue from weekends of the product and relocating post-production services total $342 million compared to $300 million in 2022 at $42 million, an increase of 14% growth.

以固定匯率計算，2023 年我們的年營收成長 8.1%。2023年，營收成長主要來自歐洲以固定匯率計算的營收成長9.8%，北美成長7.4%，我們想提醒您的是，2022年，我們在北美和其他地區成長了4.3% World 2023 年的營收組合成長了近2%，來自產品週末和搬遷後製服務的收入總計3.42 億美元，而2022 年為4,200 萬美元，較2022 年的3 億美元成長了14%。

This year we will start to report our annualized recurring revenue or ARR numbers. We will provide the ARR result quarterly our ARR revenue includes subscription term license, maintenance, application maintenance and cloud solutions. The ARR rate is the sum of this revenue is still the last quarter ended multiplied by four Our ARR for Q4 2023 totaled $164.8 million, reflecting 13.5% growth from Q4 of 2022.

今年，我們將開始報告我們的年化經常性收入或 ARR 數字。我們將每季提供 ARR 結果，我們的 ARR 收入包括訂閱期限授權、維護、應用程式維護和雲端解決方案。ARR 率為上季末的營收乘以四的總和。我們 2023 年第四季的 ARR 總計 1.648 億美元，較 2022 年第四季成長 13.5%。

I want to highlight the following. Gross profit increased in 2023 by a 30 basis point. Operating margins increase to 18.3% increase of 70 basis points. Earnings per diluted share was $1.35 compared to $1.21 in 2022, and EBITDA increased 11.7% to 19%.

我想強調以下幾點。2023年毛利成長30個基點。營業利益率提高 70 個基點至 18.3%。稀釋後每股收益為 1.35 美元，而 2022 年為 1.21 美元，EBITDA 成長 11.7% 至 19%。

Turning to our balance sheet, as of December 31, 2023, we had cash and cash equivalents and short term deposits totaling $202 million and debt of $60 million, which is scheduled to be paid in three equal payments, of which the first one was paid in January 1, 2024.

轉向我們的資產負債表，截至 2023 年 12 月 31 日，我們的現金和現金等價物以及短期存款總計 2.02 億美元，債務 6000 萬美元，計劃分三期等額支付，其中第一期已支付2024 年1月1 日。

Turning to our adjusted free cash flow during 2023, we generated adjusted free cash flow of $70.6 million compared to $36.1 million in 2022. Our adjusted free cash flow in 2023 was 94.1% of our non-GAAP net income compared to 53.7% in 2022. We achieved strong cash flow in Q4 and the full year, demonstrating our ability to convert net profit to free cash flow.

談到 2023 年調整後自由現金流，我們的調整後自由現金流為 7,060 萬美元，而 2022 年為 3,610 萬美元。2023 年調整後自由現金流佔非 GAAP 淨利的 94.1%，而 2022 年為 53.7%。我們在第四季度和全年實現了強勁的現金流，證明了我們將淨利潤轉化為自由現金流的能力。

And finally, in terms of M&A, we acquired a small company at the end of 2023 to strengthen our presence in the Nordic region. That transaction align with our commitment to better serve our clients in this key market. The impact of the acquisition is immaterial to 2023 and 2024 results.

最後，在併購方面，我們在 2023 年底收購了一家小公司，以加強我們在北歐地區的影響力。該交易符合我們為這一關鍵市場的客戶提供更好服務的承諾。此次收購對 2023 年和 2024 年業績影響不大。

Today, we are introducing the following guidance for 2024 revenue, non-GAAP revenue in the range of $550 million to $555 million represent growth of 7.3% at the midpoint. These goals anticipate high single digit organic growth in North America and in Europe and low single digit growth in the rest of world operating margin. Non-GAAP operating margin is expected to be in the range of 18.1% to 18.5%, representing a stable operating margin at the midpoint compared to 2023 operating margin of 18.3%.

今天，我們推出以下 2024 年營收指引，非 GAAP 收入在 5.5 億至 5.55 億美元之間，中位數成長 7.3%。這些目標預計北美和歐洲的有機成長將實現高個位數成長，而世界其他地區的營業利潤率將實現低個位數成長。非 GAAP 營業利潤率預計在 18.1% 至 18.5% 之間，與 2023 年 18.3% 的營業利潤率相比，營業利潤率穩定在中點。

I want to explain the rationale behind our guidance. As previously mentioned, we began offering subscription a year ago, primarily in North America and for specific product lines. This year, we plan to expand and offer our subscription for new deals for all product globally. Additionally, we intend to transition our current customer to a subscription-based model in the upcoming years.

我想解釋一下我們的指導背後的基本原理。如前所述，我們一年前開始提供訂閱服務，主要在北美針對特定產品線。今年，我們計劃擴大並提供全球所有產品的新優惠訂閱。此外，我們打算在未來幾年將現有客戶轉變為基於訂閱的模式。

The continued transition to SaaS for new deal will result in one, convert part of revenue from post-production services to subscription revenue, two shift of revenue that are currently part of pre-production revenue, which are nonrecurring into subscription revenue, which are recurrent and will be recognized over a longer period.

新交易繼續向 SaaS 過渡將導致一是將後期製作服務的部分收入轉換為訂閱收入，二將當前屬於預製作收入一部分的收入（非經常性收入）轉變為訂閱收入（經常性收入）並將在較長時期內得到認可。

The financial impact will be a reduction in our total revenue in the short term, one to two years and in increase in allocated M&A revenue and ARR in the mid to long term, we expect the impact of our annual growth rate due to the change to be around 1% headwind to revenue. Therefore, our growth rate would have been approximately 8.3% at the midpoint had we not made the shift to subscription recurring revenue.

財務影響將是我們的總收入在短期內、一到兩年內減少，而在中長期內，分配的併購收入和 ARR 會增加，我們預計，由於以下變化，我們的年增長率將受到影響：對收入造成約1% 的阻力。因此，如果我們沒有轉向訂閱經常性收入，我們的成長率將約為 8.3%。

Operating profit over the past few years, we have successfully managed to increase our revenue while improving our profit and margin. However, this year, we've made a strategic decision to continue our transition to SaaS and increase our sales and marketing investment to further accelerate growth into 2025 and beyond. Despite these procedural steps, we aim to maintain our operating margin while simultaneously increasing our operating profit.

在過去幾年的營業利潤中，我們成功地增加了收入，同時提高了利潤和利潤率。然而，今年，我們做出了一項策略決策，繼續向 SaaS 轉型，並增加銷售和行銷投資，以進一步加速成長到 2025 年及以後。儘管採取了這些程序步驟，我們的目標是維持營業利潤率，同時增加營業利潤。

The impact of the transition into SaaS and increase investment will be partially offset by increasing our offshore ratio, operational efficiency, and reduction in G&A expenses. We believe this strategic decision will better serve the company long-term growth and improve our recurring revenue and shift more revenue to way around.

向 SaaS 轉型和增加投資的影響將透過提高離岸比率、營運效率和減少一般管理費用來部分抵銷。我們相信這項策略決策將更好地服務於公司的長期成長，提高我們的經常性收入，並轉移更多的收入。

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

現在我將把電話轉回羅尼·阿爾多爾。羅尼？

Thank you, Roni 2023 was a year of growth and profitability highlighted by accelerating growth in North America and continued growth in Europe and rest of the world. We delivered revenue growth for the year, surpassing the $0.5 billion mark and help to increase in our operating profit of almost 12.8% to achieve an operating profit margin of 18.3%, demonstrating our ability to profitability scale our business. Looking out over the remainder of 2024 our priorities are one to transition all of our product to SaaS delivery model with Sapiens insurance platform, and second, leverage our investment to drive performance in all our key regions, North America, EMEA and rest of the world.

謝謝，Roni 2023 年是成長和獲利的一年，突出表現在北美的加速成長以及歐洲和世界其他地區的持續成長。我們今年的收入成長超過了 5 億美元大關，並幫助我們的營業利潤增加了近 12.8%，營業利潤率達到 18.3%，這證明了我們擴大業務規模的獲利能力。展望2024 年剩餘時間，我們的首要任務是，一是透過Sapiens 保險平台將我們的所有產品轉變為SaaS 交付模式，二是利用我們的投資來推動我們所有關鍵地區、北美、歐洲、中東和非洲以及世界其他地區的業績。

I would now like to close our prepared remarks and open the call for question. Operator, we are ready to open the call for Q&A.

現在我想結束我們準備好的演講並開始提問。接線員，我們已準備好開始問答電話。

(Operator Instructions) Dylan Becker, William Blair.

（操作員說明）迪倫貝克爾、威廉布萊爾。

Hey gentleman nice job here, maybe starting with and Roni, a or maybe you, Alex, too. You had talked about kind of SaaS transition, the focus on data and integrated systems. I'm wondering to what extent is that coming up in conversations with data and real-time decisioning kind of causing a shift and how carriers think about their risk exposure and their risk management given kind of some of that compounded complexity of legacy and siloed systems that they're operating in today, that kind of helps fuel this overall conversion and momentum you're seeing?

嘿，先生，幹得好，也許從羅尼開始，或者也許你，亞歷克斯也是。您談到了 SaaS 轉型，即對數據和整合系統的關注。我想知道在與數據和即時決策的對話中出現的情況在多大程度上會導致轉變，以及考慮到遺留系統和孤立系統的複雜性，運營商如何考慮其風險暴露和風險管理他們今天正在運營，這有助於推動您所看到的整體轉變和動力？

Hey Dylan this is Alex speaking. So definitely this is actually giving us a stronger, a strong push in the view of our customers due to the issues that legacy system has with antiquated data management and there are closed -- the closed systems. We see here a proposition that we are coming to the market with the platform proposition that enables seamless integration of the core processing capabilities to data and analytics, providing not only retroactive analysis of what happened in the business, but actually ability to take decisions and manage the company workflow based on data. And we use also our decision tool that is in addition to the solid market, but also now used inside our platform to increase automation and to manage the data properly and this brings us the ability to run a much more data driven proposition, which is definitely a resonates with the market.

嘿迪倫，我是亞歷克斯。因此，在客戶看來，這實際上為我們帶來了更強大的推動力，因為遺留系統存在過時的資料管理問題，並且存在封閉的系統。我們在這裡看到一個主張，即我們將以平台主張進入市場，該平台主張能夠將核心處理功能與數據和分析無縫集成，不僅提供對業務中發生的情況的追溯分析，而且實際上提供決策和管理的能力是基於數據的公司工作流程。我們還使用我們的決策工具，除了穩定的市場之外，現在還在我們的平台內部使用，以提高自動化程度並正確管理數據，這使我們能夠運行更多數據驅動的主張，這絕對是與市場產生共鳴。

Got it okay well, thanks Alex, maybe Roni for you or encouraging candidates of here about the headcount investment here and how that's feels by the broad-based kind of demand. You guys are seeing. I'm wonder how to think about the balance between investing in this go-to-market capacity and kind of the needed implementation support as well.

好的，謝謝亞歷克斯，也許羅尼代表你，或鼓勵這裡的候選人了解這裡的人員投資以及廣泛的需求的感受。你們正在看到。我想知道如何考慮這種進入市場能力的投資與所需的實施支援之間的平衡。

You called out a hire and kind of doubling down on that partner ecosystem. But wondering how you think about the balance between the two and how this can maybe accelerate that shift towards a more product oriented revenue base?

您招募了一名員工，並在合作夥伴生態系統上加倍投入。但想知道您如何看待兩者之間的平衡，以及這如何加速轉向更以產品為導向的收入基礎的轉變？

Okay hi Dylan this is Roni, so few question that you ask I tried to answer them one about the a product versus services and all the system integration, inceptions for the last so many years, we are shifting R&D and to India. So we can do a good ratio between offshore and onshore, and we will build a very strong organization that allow us to develop more things with less.

好吧，嗨，迪倫，我是羅尼，所以你問的問題很少，我試圖回答他們一個關於產品與服務以及所有系統集成的問題，過去這麼多年的啟動，我們正在將研發轉移到印度。因此，我們可以在離岸和在岸之間保持良好的比例，我們將建立一個非常強大的組織，使我們能夠用更少的資源開發更多的東西。

And that's allow us to shift, I think, from pure R&D to sales and marketing organization in terms of the SI, we are, as I mentioned on the call that we are taking it very serious SI, but it's still not a majority part of our revenue and we also based on the decision that we made, we don't see huge overlap between what we plan to bring in what their SI and we believe that to maybe we can lose few percent of the revenue, but we can get more business. So where we don't see some dramatically change on the ratio of the services part.

我認為，這使我們能夠從純粹的研發轉向銷售和行銷組織，正如我在電話中提到的那樣，我們正在非常認真地對待 SI，但它仍然不是 SI 的大部分。我們的收入，我們也基於我們所做的決定，我們沒有看到我們計劃引入他們的SI 的內容之間有很大的重疊，我們相信也許我們可能會損失百分之幾的收入，但我們可以獲得更多商業。因此，我們沒有看到服務部分的比例有顯著變化。

Got it okay that makes a ton of sense. Then lastly, maybe touching on Roni G, so appreciate the ARR disclosure and nice growth here as well as on the gross post-production side. Wonder what's the right way of thinking about kind of this ongoing mix shift towards these two segments? It sounds like it's kind of picked up and given that these kind of are the areas driving a lot more of the growth versus that kind of lower margin services side? Thanks guys.

明白了，這很有道理。最後，也許會談到 Roni G，所以要欣賞 ARR 的披露和這裡以及後期製作方面的良好增長。想知道對於這兩個細分市場正在進行的混合轉變的正確思考方式是什麼？聽起來好像有所回升，考慮到這些領域比利潤率較低的服務領域推動了更多的成長？多謝你們。

Hi Dylan, so first say, you're right, both of these ARR both the post production services will grow faster than the company’s growth this is we feel the implementation piece all the time, we are increasing the layers of this revenue stream. I can say that in the ARR piece, we also are going to shift some of the revenue, which is in the post production today at a revenue. That includes, for example, that we categorize as services, for example, upgrade or implement the application maintenance and over time with the new deals will be part of the subscription increase our ARR. So overall, both of these categories will grow faster than the company grow going forward.

嗨迪倫，所以首先說，你是對的，這兩個 ARR 後期製作服務的增長速度都會快於公司的增長，這是我們一直感覺到的實施部分，我們正在增加這種收入的層次溪流。我可以說，在 ARR 部分中，我們還將轉移部分收入，這些收入是今天後製中的收入。例如，這包括我們歸類為服務的服務，例如昇級或實施應用程式維護，隨著時間的推移，新交易將成為訂閱的一部分，增加我們的 ARR。因此整體而言，這兩個類別的成長速度將快於公司未來的成長速度。

Got it thank you guys appreciate it.

明白了謝謝大家欣賞。

(Operator Instructions) Kevin Kumar, Goldman Sachs.

（操作員指令）Kevin Kumar，高盛。

Thanks for taking my question. I wanted to ask about the progress towards the cloud. Sounds like that's increasingly a focus here. I guess how many customers migrated to cloud in 2023 and more strategically, how do you think kind of incentivizing customers who may be on-premise arm kind of make the jump in transition over to cloud?

感謝您提出我的問題。我想問一下雲的進展。聽起來這越來越成為這裡的焦點。我猜想有多少客戶會在 2023 年遷移到雲端，更策略性地講，您認為如何激勵可能是本地部署的客戶，從而實現向雲端的過渡？

We are for the long term -- we shift to rebuild our cloud services organization, and we shifted the majority of our product to the cloud.

我們著眼於長期——我們轉向重建我們的雲端服務組織，並將我們的大部分產品轉移到雲端。

I think what we are now, we're coming with the main message that's our value proposition. So if a deposit was a more flexibility. People can choose one or the other at this moment, based on all the investments and the maturity of our products, we are coming to the market, which is has proposition. That's mean that the softer end part of the maintenance and all the cloud services is coming as one package and we are just in very, very specific case proven by me by myself, we can allow to do something different, but it's a journey that's it's a take time. But for the new business, this is our main message.

我認為我們現在的主要訊息是我們的價值主張。所以如果存款的話就更靈活了。現在人們可以選擇其中之一，基於所有的投資和我們產品的成熟度，我們正在進入這個市場，這是有主張的。這意味著維護的軟端部分和所有雲端服務將作為一個包提供，我們只是在我自己證明的非常非常具體的情況下，我們可以允許做一些不同的事情，但這是一個旅程，就是這樣需要時間。但對於新業務來說，這是我們的主要訊息。

Got it. And maybe one on and product dissecting the growth between kind of new logo adds this year versus kind of craft hiring and expansion. How is that evolving -- where did that land, I guess for 2023 and how are you thinking about mix of new versus expansion in '24? Thank you.

知道了。也許有一項產品會剖析今年新標誌增加與製程僱用和擴張之間的成長。這是如何演變的——我猜是 2023 年，它發生在哪裡？你如何考慮 24 年新專案與擴展專案的混合？謝謝。

We can, Roni G, can answer also, but we in Sapiens, we have a huge client base, but we also believe that we must need to continue to bring new business. So Sapiens many, many years we are not type of company are saying, okay, we sold to this customer list, the majority of our work to move them to the cloud. We are definitely putting a lot of effort to bring new business in parallel to shift to the cloud. So it's definitely not our main focus.

我們可以，Roni G，也可以回答，但我們在Sapiens，我們擁有龐大的客戶群，但我們也相信我們必須需要繼續帶來新的業務。所以很多很多年以來，我們並不是一家會說，好吧，我們賣給這個客戶名單的公司，我們大部分的工作都是將他們轉移到雲端。我們肯定會投入大量精力同時引入新業務並轉向雲端。所以這絕對不是我們的主要關注點。

Just to move to the cloud, this moment we have continued the investment. And as I mentioned, we increased the investment in our in our strategic product, marketing, and marketing sales and overseas. So overall, we increased the investment and we are looking for a both passing incremental.

只是為了遷移到雲端，此刻我們還在繼續投入。正如我所提到的，我們增加了對策略性產品、行銷、行銷銷售和海外的投資。因此，總的來說，我們增加了投資，並且正在尋找雙贏的增量。

Maybe I will add one more sentence in terms of new logo, give or take we are at the same time, but the number of these are products that we sell to the same customer is bigger than last year and also from cross-sell opportunity. This is a significant improvement from 2020 to the number of cross-sell opportunity, additional product to existing customers.

也許我會在新標誌方面再添加一句話，給予或接受我們是同時的，但我們向同一客戶銷售的產品數量比去年更多，而且也來自交叉銷售機會。與 2020 年相比，交叉銷售機會、向現有客戶提供額外產品的數量有了顯著改善。

First of all, we are right now very close to almost 30 new deals in 2023, you get the new logo and core-sell opportunities.

首先，我們現在非常接近 2023 年的近 30 項新交易，您將獲得新徽標和核心銷售機會。

That's helpful thanks for taking my questions.

這很有幫助，感謝您回答我的問題。

Thank you.

謝謝。

(Operator Instructions) Mayank Tandon, Needham & Company.

（操作員說明）Mayank Tandon，Needham & Company。

Great, thanks. Good morning, guys. This is Sam on for Mayank today. I wanted to touch on outlook for the year. Could you guys talk about some of the macro assumptions you have built into the revenue guidance? Maybe provide any commentary into how we should think about the revenue and margin trajectory throughout the year?

萬分感謝。早上好傢伙。這是 Sam 今天為 Mayank 做的節目。我想談談今年的展望。你們能談談你們在收入指引中所考慮的一些宏觀假設嗎？也許對我們應該如何思考全年的收入和利潤軌跡提供任何評論？

If we look in the last two years, a European market was growing in the double digit or close to double digit. A macro environment slightly slower than in the past, not significant but slightly. And as we predicted, we are going to grow in the European region, high single digits. In North America we did turnaround if I'm looking back two years, we almost did not go over there. Last year we grew 4% and this year close to eight. And we mentioned that we are going to grow next year, high single digits.

如果我們看看過去兩年，歐洲市場正在以兩位數或接近兩位數的速度成長。宏觀環境比過去略有放緩，不顯著但略有放緩。正如我們預測的那樣，我們將在歐洲地區實現高個位數的成長。在北美，如果我回顧兩年，我們確實扭轉了局面，我們幾乎沒有去那裡。去年我們成長了 4%，今年成長了接近 8%。我們提到明年我們將實現高個位數成長。

And in APAC, which include the APAC in South Africa, together with a nice pipeline also in APAC and we are going to have a mid-single digit. Also in a rest of world region, a towards 2024, we mentioned that we are going to grow about 7.3% at the midpoint between $550 million to $555 million. But we also mentioned because of the transition to SaaS that we continue to do. We started this in 2023, the impact on the revenue is about 1% of all, we're expecting to grow without this 8%.

在亞太地區，包括南非的亞太地區，加上亞太地區也有不錯的管道，我們將達到中個位數。同樣在世界其他地區，到 2024 年，我們提到我們的成長率將在 5.5 億至 5.55 億美元之間，中間值約為 7.3%。但我們也提到，由於向 SaaS 的過渡，我們仍在繼續這樣做。我們從 2023 年開始這樣做，對收入的影響約為 1%，我們預計在沒有這 8% 的情況下也會成長。

Got it that's helpful. Thanks for the color on that and then just given you guys have been experiencing a couple of quarters of stronger growth. Are you guys seeing any changes in terms of competition or win rates across whether it's in Europe, North America, APAC?

明白了，很有幫助。感謝您的顏色，然後考慮到您已經經歷了幾個季度的強勁增長。你們是否發現歐洲、北美、亞太地區的競爭或勝率有任何變化？

Nothing dramatically -- have several products, I think in the workers' comp, we are in a leading position in the reinsurance. We have a leading position in the last few years, we see much stronger on the life and the competition is not as difficult. I think the area that we are single time more competition is around the P&C and also the difference between North America. It's a many players, but in Europe is majority from North America is Guidewire and all the rest is more local company like RGA or Kellen and so on a or locally name Asia. So we have more competition on the on the P&C, all the rest is more or less the same and even Sapiens in better position than it was in the past.

沒什麼引人注目的——有幾種產品，我認為在工人補償方面，我們在再保險方面處於領先地位。過去幾年我們處於領先地位，我們看到生活變得更加強大，競爭也沒有那麼困難。我認為我們單次更多競爭的領域是圍繞P&C以及北美之間的差異。參與者有很多，但在歐洲，大多數來自北美的是 Guidewire，其餘的都是更多本地公司，如 RGA 或 Kellen 等亞洲或本地名稱的公司。因此，我們在 P&C 方面有更多的競爭，其餘的都或多或少相同，甚至智人的地位也比過去更好。

Okay that's helpful. Thank you guys.

好的，這很有幫助。感謝你們。

Thank you.

謝謝。

(Operator Instructions) Alexei Gogolev, JPMorgan.

（操作員指示）Alexei Gogolev，摩根大通。

Hello everyone, and thank you for the question. I was wondering if you could disclose the number of customers that are on the cloud. They seem to recall that at the end of 2022, you're saying there were about 120 customers on the cloud any update on that number, please?

大家好，謝謝你們的提問。我想知道您是否可以透露雲端上的客戶數量。他們似乎還記得，到 2022 年底，您說雲端上大約有 120 個客戶，這個數字有更新嗎？

Probably additional 20. 20 plus customer on the cloud. The as of today, we do not have the exact number, but it's probably close to 150.

可能還有 20。20+ 雲端客戶。截至今天，我們還沒有確切的數字，但可能接近 150。

Perfect. Thank you Roni, now that you're disclosing ARR would you be able to say what is the share of cloud customers in ARR?

完美的。謝謝 Roni，既然您要揭露 ARR，您能透露一下雲端客戶在 ARR 中所佔的份額嗎？

It's the vast majority of the ARR is a customer that are on the cloud.

絕大多數 ARR 是雲端上的客戶。

Perfect. And I also wanted to ask you about P&C in North America, I recall that back in 2022, you were revenue contribution of P&C in North America was about $50 million. Any update on that number or perhaps how it has grown over the year?

完美的。我還想問一下北美財產險的情況，我記得2022年，北美財產險的收入貢獻約為5000萬美元。有關該數字的任何更新，或者它在一年中的增長嗎？

Yes.

是的。

Can you repeat the question, Alex?

你能重複一下這個問題嗎，亞歷克斯？

Yeah, share of P&C revenue growing in North America?

是的，北美財產險收入的份額正在增加嗎？

In North America we have three product lines, we said the work is gone.

在北美我們有3條產品線，我們說工作沒了。

It's also P&C, but we categorize in difference we have what we call core with life and we have a deck with the NPL It's a company that we acquire. And then we have I think it's very also all of this is more than what you mentioned in terms of the revenue and also all this business continued to grow. It was couple of years of slowing down based on many delivery challenges and to complete to develop our product suite.

它也是 P&C，但我們進行了不同的分類，我們有我們所說的生命核心，我們有 NPL 的套牌，這是我們收購的一家公司。我認為所有這些都比您提到的收入要多，而且所有這些業務都在持續成長。由於許多交付挑戰，我們花了幾年的時間才放慢速度，直到完成產品套件的開發。

And just a quick reminder in the CoreSuite we acquired many StoneRiver, and then we acquired Adaptik and then we integrate and build ourselves digital. So we are billing system. So together, all of this done, we if we decide to go back to the market, we signed 28 deals last year, and we hope to see more business this year.

在 CoreSuite 中快速提醒一下，我們收購了許多 StoneRiver，然後我們收購了 Adaptik，然後我們整合並建立了自己的數位化。所以我們是計費系統。所以，所有這些都完成後，如果我們決定重返市場，去年我們簽署了 28 筆交易，我們希望今年能看到更多業務。

Thank you, Alex. So just to clarify, P&C in North America growing faster than overall North America, roughly at the same level?

謝謝你，亞歷克斯。澄清一下，北美的財產險和意外險的成長速度快於整個北美地區，大致處於同一水平？

We are not providing by product in the region and the overall life in the company today is going slightly higher than the P&C, but this is overall global company.

我們不在該地區提供產品，目前公司的整體壽命略高於 P&C，但這是一家全球性公司。

Okay. Thank you, Roni, and thank you.

好的。謝謝你，羅尼，謝謝你。

Thank you.

謝謝。

(Operator Instructions) Chris Reimer, Barclays.

（操作員說明）Chris Reimer，巴克萊銀行。

Hi, thanks for taking my questions and congratulations on the strong results. Honestly, most of my questions have been answered already, but I did want to ask if you could touch on relating to the 2024 strategy. You mentioned the select an expanded use of SI's. I was wondering if you could just elaborate a little more on that, how you expect it to play out and how it may be different from what you've already done with SI's?

您好，感謝您提出我的問題並祝賀我們取得了優異的成績。老實說，我的大部分問題已經得到解答，但我確實想問你是否可以談談與 2024 年策略相關的問題。您提到選擇 SI 的擴展使用。我想知道您是否可以詳細說明一下，您期望它如何發揮作用，以及它與您已經對 SI 所做的有何不同？

Okay I will try to answer a second business model for many, many years that we are developing down product doing implementation and then doing the cloud services, what we and most of our competitors are doing a majority of product, some case, they are doing part of the delivery and they are sharing with SI. We made the decision not today along like in the last one or two.

好吧，我將嘗試回答第二個商業模式很多年，我們正在開發產品，進行實施，然後進行雲端服務，我們和大多數競爭對手正在做大部分產品，在某些情況下，他們正在做部分交付，他們正在與SI 共享。我們今天做出的決定不像過去一兩次。

But right now, we did some increase seriously of this decision. The first as I mentioned, we hired a dedicated very senior person that she came from the competitors and helping us to build the SI partnership. And she is not alone with somebody else. That's one we also believe that our product is mature enough to work with SI's.

但現在，我們對這個決定做了一些認真的改進。首先，正如我所提到的，我們聘請了一位來自競爭對手的敬業資深人士，幫助我們建立 SI 合作夥伴關係。而且她並不孤單地和別人在一起。我們也相信我們的產品已經足夠成熟，可以與 SI 合作。

And right now we are in the selection to see who is the right partner for us because we don't want to work with 20 SI's I want to limited, and we are now in definition where to put investment. So we don't plan to do it in all territories. Not all the products.

現在我們正在選擇誰是適合我們的合作夥伴，因為我們不想與 20 個 SI 合作，我想限制，而且我們現在正在確定投資的方向。因此，我們並不打算在所有地區都這樣做。不是所有產品。

As I mentioned, we've we are where we see health that we need from them on the higher tiers. And we also believe that in this case, the overlap will not be high because they are doing also a lot of consulting and think that Sapiens didn't do at the past and just to give you an information in general when seconds giving offer to the clients like ex-million, the customers is also has the work that she's doing by himself is almost one to one.

正如我所提到的，我們已經看到我們需要更高層人員的健康。我們也相信，在這種情況下，重疊度不會很高，因為他們也做了很多諮詢，並且認為 Sapiens 過去沒有做，只是在幾秒鐘向您提供報價時為您提供一般信息。像前萬這樣的客戶，客戶也有她自己做的工作，幾乎是一對一的。

So SI can do this part and we can don't see huge overlay from the higher tiers. And then we can go also to the territory between segments is not doing any business today as an example, France and we can consider to work with them and the best case. We interesting to shift more work for them because we don't have the local people at the past sentence decision was to acquire a company, but we don't want to continue to acquire in all in every countries in the world. So we decide to work with SI.

所以 SI 可以完成這部分，我們看不到來自更高層的巨大覆蓋。然後我們也可以以今天沒有開展任何業務的部門之間的領土為例，法國，我們可以考慮與他們合作以及最好的情況。我們有興趣為他們轉移更多的工作，因為我們沒有當地人在過去的決定是收購一家公司，但我們不想繼續收購世界上每個國家的所有公司。因此我們決定與 SI 合作。

Thanks that's really great color. Thanks for that. Also, if you could just touch on the gross margin expansion, given the transition you mentioned to the products, SaaS offerings, do you expect any change to the gross margin? I think it was previously you noted that it was [50] to [56] in recurring, segment?

謝謝，顏色真的很棒。感謝那。另外，如果您能談談毛利率的擴張，考慮到您提到的產品、SaaS 產品的轉變，您預計毛利率會發生什麼變化嗎？我想您之前註意到，循環片段中是 [50] 到 [56]？

Yes. So due to the transition that we mentioned moving to SaaS subscription and shifting from post-production services to subscription or some high value to the subscription coming from the implementation. Obviously, we are going to see a increase slight increase in the subscription gross margin with the lower gross margin on the implementation of the one-time -- a one-time revenue, the pre-production revenue, the impact is about 0.2% on the for the in postproduction revenue, gross margin going up and 2% of the implementation, a pre-production revenue going down blended is about 50 basis points down at the same time, we are doing all the time improvement in the company in terms of offshore product maturity, and we are thinking that we'll be able to offset this decrease with the efficiency that we mentioned.

是的。因此，由於我們提到轉向 SaaS 訂閱以及從後期製作服務轉向訂閱或來自實施的一些高價值訂閱的轉變。顯然，我們將看到訂閱毛利率略有增加，而實施一次性收入、預生產收入的毛利率較低，影響約為 0.2%對於後期製作收入，毛利率上升和實施的2％，前期製作收入下降混合大約下降了50個基點，同時，我們一直在公司在以下方面進行改進：離岸產品成熟度，我們認為我們將能夠透過我們提到的效率來抵消這種下降。

Got it thanks a lot. That's it for me.

明白了，非常感謝。對我來說就是這樣。

(Operator Instructions) There are no further questions at this time. Before I ask Ms. Cohen to go ahead with his closing statement.

（操作員說明） 目前沒有其他問題。在我請科恩女士繼續他的結案陳詞之前。

(Operator Instructions) Ms. Cohen, would you like to go ahead with your concluding statements?

（操作員指示）Cohen 女士，您想繼續進行結論性陳述嗎？

Yes. Thank you for joining the call today. Please note that Sapiens will participate in the Needham Technology Media and Consumer Conference on May 14 and 15 in New York City. We look forward to speaking with you soon and are always happy to answer any follow-up questions and thank you again for joining.

是的。感謝您今天加入通話。請注意，Sapiens 將於 5 月 14 日至 15 日參加在紐約市舉行的 Needham 技術媒體和消費者會議。我們期待盡快與您交談，並隨時樂意回答任何後續問題，並再次感謝您的加入。

Thank you this concludes the Sapiens International Corporation fourth quarter 2023 results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝，Sapiens International Corporation 2023 年第四季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線。