Sapiens International Corporation NV (SPNS) 2024 Q4 法說會逐字稿

Welcome to Sapiens International Corporation's 2024 fourth quarter financial results call. (Operator Instructions) A question-and-answer session will follow the formal presentation.

歡迎參加 Sapiens International Corporation 2024 年第四季財務績效電話會議。（操作員指示）正式示範之後將進行問答環節。

It is now my pleasure to introduce your host, Yaffa Cohen-Ifrah, Chief Marketing Officer and Head of Investor Relations.

現在我很高興介紹您的主持人、首席行銷長兼投資者關係主管 Yaffa Cohen-Ifrah。

Thank you, Jaffa. You may now begin.

謝謝你，賈法。現在您就可以開始了。

Thank you, operator. I want to welcome you to the Sapiens conference call to review our fourth quarter and full-year results for 2024.

謝謝您，接線生。歡迎您參加 Sapiens 電話會議，回顧我們 2024 年第四季和全年業績。

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.

今天與我一起參加電話會議的還有總裁兼執行長 Roni Al dor 先生；財務長 Roni Giladi 先生；以及首席策略長 Alex Zukerman 先生。在結果總結之後，我們將回答任何問題。

Before we start, I would like to remind everyone that this conference call may contain projections or other forward-looking statements. The Safe Harbor provisions in the press release issued today also apply to the content of this call.

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本次通話的內容。

Sapiens expressly disclaim 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.

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、新資訊、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 result has been provided in our press release, which was issued before the market opened this morning.

在今天的電話會議上，我們將參考非公認會計準則財務指標。我們在今早市場開盤前發布的新聞稿中提供了 GAAP 與非 GAAP 結果的對帳表。

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 earning release we published today. I will now turn the call over to Roni Al Dor, President and CEO of Sapiens. Roni?

電話會議結束後，您可以在公司網站的「投資者關係」板塊或我們今天發布的收益報告中的網站連結上重播本次電話會議。現在我將電話轉給 Sapiens 總裁兼執行長 Roni Al Dor。羅尼？

Good morning, everyone. And thank you for joining us today for Sapiens' fourth quarter 2024 earnings call. Our revenue in Q4 was $134 million, a 2.6% increase compared to last year. This quarter showcased solid execution across our key regions and continued expansion of our Core Life businesses.

大家早安。感謝您今天參加 Sapiens 2024 年第四季財報電話會議。我們第四季的營收為 1.34 億美元，比去年成長 2.6%。本季度，我們在重點區域的執行表現穩健，核心壽險業務持續擴張。

In quarter four, we signed over 15 deals with new and existing customers across Life and P&C. Since the launch of our insurance platform in June 2024, we successfully closed three-platform deals globally, reflecting the positive impact of our insurance platform.

第四季度，我們與壽險、財產險和意外險領域的新舊客戶簽署了 15 多項協議。自 2024 年 6 月推出保險平台以來，我們在全球成功完成了三個平台的交易，反映了我們保險平台的正面影響。

Overall, in 2024, we signed 36 deals with new and existing customers. We continue to transition existing customers to the Cloud, ending the year with a total of 169 customers on the second Cloud. And we see a great potential to accelerate the Cloud transition.

整體而言，2024 年，我們與新舊客戶簽署了 36 份協議。我們繼續將現有客戶轉向雲端，到年底，第二雲端的客戶總數已達 169 家。我們看到了加速雲端轉型的巨大潛力。

Let's drill down into our regional performance. First, as promised, our North American businesses deliver robust growth in 2024. During Q4, we closed five wins with new and existing customers. These wins reinforce insurance, trusting Sapiens to innovate and drive business transformation, enabling them to remain competitive.

讓我們深入了解我們的區域表現。首先，正如承諾的那樣，我們的北美業務將在 2024 年實現強勁成長。在第四季度，我們與五家新舊客戶達成了合作。這些勝利增強了保險業的信心，相信 Sapiens 能夠創新並推動業務轉型，從而保持競爭力。

Our Life and annuity businesses continue to expand in quarter after a few successful North America go live and upgrade for our business application. We also continue to go with new logos.

在北美成功上線並升級我們的業務應用程式後，我們的人壽和年金業務在本季度繼續擴張。我們也會繼續採用新的標誌。

The pipeline for North America live businesses is robust, reaching historical levels, recognizing our commitment to product innovation, one of our key investment areas and growth driver, Sapiens has been honored for the third-consecutive time by Celent.

北美活躍業務的管道強勁，達到了歷史最高水平，這反映了我們對產品創新的承諾，產品創新是我們的主要投資領域和成長動力之一，Sapiens 已連續第三次獲得 Celent 的殊榮。

We received the 2024 excellent award for customer base and support for underwriting pool for Life and annuities in North America, reinforcing our leadership in Life underwriting solutions. These awards recognize Sapiens' exceptional solution that empower insurers to streamline their processes and achieve superior customer outcomes.

我們獲得了 2024 年度北美人壽和年金客戶群和核保池支持優秀獎，鞏固了我們在人壽承保解決方案方面的領導地位。這些獎項認可了 Sapiens 的卓越解決方案，該解決方案使保險公司能夠簡化流程並實現卓越的客戶成果。

Let me switch to discuss our course with P&C in North America for 2024. In Q4 of 2024, a leading property and casualty underwriting agency, a provider of solution for specialty insurance needs, including flood and fine arts, went live on billing pole, complementing their core solution of PolicyPro and claims for already in production.

讓我轉而討論一下我們 2024 年在北美的 P&C 路線圖。2024 年第四季度，一家領先的財產和意外險承保機構（一家提供洪水和藝術品等特殊保險需求解決方案的供應商）在計費桿上上線，補充了其已經投入生產的 PolicyPro 和索賠核心解決方案。

This go-live with additional application is an example of how our insurance platform enables customer upselling. Overall, the P&C team in North America completed over 10 upgrades projects this year with same customers upgrading the entire policy suite, billing, and claims.

這次上線的附加應用程式就是我們的保險平台如何實現客戶追加銷售的一個例子。總體而言，北美的財產保險和意外傷害保險團隊今年完成了 10 多個升級項目，為同一客戶升級了整個保單套件、帳單和索賠。

Additionally, we execute the Cloud transformation for Tier 2 insurance carriers that provide specialty risk solutions across North America. This project includes upgrading to our latest policy for release, which will be completed in early 2025.

此外，我們也為在北美提供專業風險解決方案的二級保險公司實施雲端轉型。該項目包括升級到我們的最新政策以供發布，該政策將於 2025 年初完成。

In quarter four, we released version 12.1 of CoreSuite of P&C, which includes a technology upgrade, significant improvement to operational monitoring, functional enhancement, and integration to Sapiens digital suite for both the agent and the consumer and several insurtech partners.

第四季度，我們發布了 P&C 的 CoreSuite 12.1 版本，其中包括技術升級、營運監控的顯著改進、功能增強以及與代理商、消費者和多家保險科技合作夥伴的 Sapiens 數位套件的整合。

These enhancements provide our customers with additional capabilities and improvements that enable businesses growth and enhance platforms efficiency, easy-to-use distribution, and automation.

這些增強功能為我們的客戶提供了額外的功能和改進，促進了業務成長並提高了平台效率、易於使用的分發和自動化。

Sapiens continue to invest in North America P&C platform with DataSuite integration set for 2025, which enables AI automation and advanced analytics. The launch of our P&C platform with the product upgrades will help to enhance our competitive position in the North American market and alliance with our go-to market strategy of driving increased connection to our data and digital platform offering.

Sapiens 繼續投資北美 P&C 平台，並計劃於 2025 年實現 DataSuite 集成，從而實現人工智慧自動化和高級分析。我們的 P&C 平台的推出和產品升級將有助於增強我們在北美市場的競爭地位，並與我們的市場策略相結合，以加強與我們的數據和數位平台產品的連結。

Moving to Europe and to the rest of the world, in Q4, we signed 10 deals across Life and P&C with new logos as well as existing customers in Europe and the rest of the world. We have had several successful go-Life projects for customers with our CoreSuite Life Solution, IDITSuite, [Tier]Suite, and ReinsuranceMaster.

轉向歐洲和世界其他地區，在第四季度，我們與新標誌以及歐洲和世界其他地區的現有客戶簽署了 10 份壽險和財產險及意外險協議。我們透過 CoreSuite Life Solution、IDITSuite、[Tier]Suite 和 ReinsuranceMaster 為客戶成功完成了多個 go-Life 專案。

In the European market and the rest of the world, which includes APAC in South Africa, demand for Sapiens Solution remains robust as evidenced by our growing pipeline.

在歐洲市場和包括南非亞太地區在內的世界其他地區，對 Sapiens Solution 的需求仍然強勁，這從我們不斷增長的產品線中可見一斑。

There is a continued demand for such platforms across all solution lines and tiers. We are also experiencing increasing demand for AI-driven solution as clients increasingly wants to leverage AI to enhance operational efficiency and elevate customer experience.

所有解決方案系列和層級對此類平台的需求持續存在。隨著客戶越來越希望利用人工智慧來提高營運效率和提升客戶體驗，我們對人工智慧驅動的解決方案的需求也不斷增加。

In P&C, the demand for a second solution remains strong despite the extended sale cycle as evidenced by improved deal close momentum at year end. In the fourth quarter, we signed new P&C deals with both new and existing customers in Europe and the rest of the world.

在財產和意外事故領域，儘管銷售週期延長，但對第二種解決方案的需求依然強勁，年底交易成交勢頭改善就是明證。第四季度，我們與歐洲和世界其他地區的新舊客戶簽署了新的財產和意外保險協議。

I want to highlight a few new wins this quarter, including a leading Sapiens customer in the Nordic region who migrated to the Sapiens Cloud with a significant [source] agreement, leveraging our Microsoft Cloud strategy and investments.

我想強調本季的一些新勝利，其中包括北歐地區的一家領先的 Sapiens 客戶，該客戶通過一項重要的[來源]協議遷移到了 Sapiens Cloud，利用了我們的 Microsoft Cloud 戰略和投資。

In APAC, we continue our market expansion and strong momentum and close an important P&C platform deal with the leading insurer in the Philippines. This is our first win in this country. Another highlight is go-live with Sapiens DataSuite for a long-standing customer based in Africa.

在亞太地區，我們繼續保持強勁的市場擴張勢頭，並與菲律賓領先的保險公司達成了重要的財產和意外傷害平台協議。這是我們在這個國家第一次獲勝。另一個亮點是向位於非洲的長期客戶推出 Sapiens DataSuite。

Having been with Sapiens for nearly two decades, this T1 customer migrated its data platform to the Cloud in a consolidated enterprise-wide view to improve performance and productivity while enhancing security and the overall user experience, a few comments on Life and pension.

這家 T1 客戶與 Sapiens 合作了近二十年，以整合的企業範圍視圖將其數據平台遷移到雲端，以提高效能和生產力，同時增強安全性和整體用戶體驗，並對人壽和退休金發表了一些評論。

This quarter we signed a new platform deal in Europe. We also completed several goal lives in the region. The demand for Sapiens Life platform remains strong as demonstrated by our growing pipeline.

本季度，我們在歐洲簽署了一項新的平台協議。我們還在該地區完成了幾個項目標任務。我們不斷增長的產品線表明對 Sapiens Life 平台的需求仍然強勁。

We see significant uplift in RFPs coming to the market and to Sapiens, indicating strong market demand across Europe and South Africa, although sales cycle in the Life tend to be more extended than P&C and then offset deal size are much larger.

我們看到進入市場和 Sapiens 的 RFP 數量顯著增加，這表明歐洲和南非的市場需求強勁，儘管壽險的銷售週期往往比財產和意外事故保險更長，並且抵消交易規模要大得多。

Moving to our insurance, we continue to expand in North America, Europe, and APAC with our insurance master and reinsurance policy solution. And in this quarter, we close new deals with new and existing customers. Let me highlight a couple.

談到我們的保險，我們繼續利用我們的保險主控和再保險政策解決方案在北美、歐洲和亞太地區擴張。本季度，我們與新舊客戶達成了新的交易。讓我強調幾點。

In North America, an existing customer, a leading global insurance, and investment provider for commercial P&C Insurance, selects Sapiens ReinsuranceMaster. A major European London market insurer selects ReinsuranceMaster to modernize its highly specialized London market operations.

在北美，現有客戶（一家全球領先的商業財產和意外傷害保險的保險和投資提供者）選擇了 Sapiens ReinsuranceMaster。一家大型歐洲倫敦市場保險公司選擇 ReinsuranceMaster 來實現其高度專業化的倫敦市場業務的現代化。

This is the first London market insurer to utilize Sapiens' innovative London market operational reporting services and underwriting supporting messages feature for the ReinsuranceMaster.

這是第一家利用 Sapiens 創新的倫敦市場營運報告服務和為 ReinsuranceMaster 提供承保支援資訊功能的倫敦市場保險公司。

Lastly, we closed the ReinsuranceMaster deal in Philippines. On the product front, in the third quarter, we rolled out the Sapiens Decision Underwriting Accelerator, a cutting-edge solution designed to enhance underwriting efficiency and significantly improve straight through processing for property and casualty insurers.

最後，我們完成了菲律賓的ReinsuranceMaster交易。在產品方面，我們在第三季推出了 Sapiens Decision Underwriting Accelerator，這是一項尖端解決方案，旨在提高承保效率並顯著改善財產和意外險保險公司的直通式處理。

As I mentioned earlier, we launched our AI-based Sapiens insurance platform in June 2024. The platform specializes in meeting the unique requirement of each business vertical or domain. We are integrating AI across our core data and digital solution to enhance automation, improve decision making, and drive greater efficiency for insurers.

正如我之前提到的，我們在 2024 年 6 月推出了基於人工智慧的 Sapiens 保險平台。該平台專門滿足每個垂直業務或領域的獨特需求。我們正在將人工智慧融入我們的核心數據和數位解決方案中，以增強自動化、改善決策並提高保險公司的效率。

We enable smarter underwriting, more accurate risk assessment, and streamline claims processing by embedding AI-driven capabilities into our core system. Our AI power solution leverage advanced data analytics and machine learning to provide actionable insight, optimize workflows, and enhance operational agility.

透過將人工智慧驅動的功能嵌入到我們的核心系統中，我們實現了更聰明的承保、更準確的風險評估並簡化了索賠處理。我們的人工智慧解決方案利用先進的數據分析和機器學習來提供可操作的見解，優化工作流程並提高營運敏捷性。

Sapiens Intelligent, such solution will help insurance modernize their operational improvement, customer experience, and stay ahead in digital and data-driven industry. We are focused on connecting the power of generative AI within our comprehensive vision of using AI to drive business operations.

Sapiens Intelligent，該解決方案將幫助保險公司實現營運改善和客戶體驗的現代化，並在數位化和數據驅動的行業中保持領先地位。我們專注於將生成式人工智慧的力量融入利用人工智慧推動業務營運的全面願景中。

Our latest platform release demonstrates this focus, incorporating powerful AI capabilities that enable both efficiency and decision making.

我們最新發布的平台體現了這一重點，融入了強大的人工智慧功能，可提高效率和決策能力。

For agent and broker, our platform delivers a digital portal offering a 360-degree view of customer and prospects combining GenAI for summarize QA, know your customer, and a suite of machine learning models for strong risk assessment and predictions.

對於代理商和經紀人，我們的平台提供了一個數位門戶，提供客戶和潛在客戶的 360 度視圖，結合 GenAI 進行總結 QA、了解您的客戶，以及一套用於強有力的風險評估和預測的機器學習模型。

Claim handlers and underwriters benefit from our co-pilot GenAI capabilities which exponentially amplify their ability to manage tasks. Additionally, we have streamlined business rules configuration enabling the creation of decision trees and rules via GenAI and automated data mapping for documents and letters using AI.

索賠處理人員和核保人員受益於我們的副駕駛 GenAI 功能，該功能成倍地增強了他們管理任務的能力。此外，我們也簡化了業務規則配置，能夠透過 GenAI 建立決策樹和規則，並使用 AI 自動對應文件和信件的資料。

Looking ahead, we have reached a roadmap to create holistic and GenAI co-pilot experience across the entire platform further enhancing the value we deliver to our users. Our strategic partnership with Microsoft is instrumental in driving our product innovation with a cutting-edge AI technology that differentiates our platforms, digital transformation capabilities in the insurance industry.

展望未來，我們已經制定了路線圖，以在整個平台上創造整體和 GenAI 副駕駛體驗，進一步提升我們為用戶提供的價值。我們與微軟的策略合作夥伴關係有助於透過尖端的人工智慧技術推動我們的產品創新，從而使我們的平台和保險行業的數位轉型能力與眾不同。

In January 2025, we announced the availability of Sapiens such solution in the Microsoft Azure marketplace. Microsoft Azure customers can purchase Sapiens Solutions enabling them to leverage Azure scalability, reliability, and agility to drive their application development and shape their business strategics.

2025 年 1 月，我們宣布 Sapiens 解決方案將在 Microsoft Azure 市場上線。Microsoft Azure 客戶可以購買 Sapiens Solutions，從而利用 Azure 的可擴展性、可靠性和靈活性來推動其應用程式開發並塑造其業務策略。

Moving to system integrators, Sapiens continue to make progress this quarter in its collaboration with system integrators. This emerging channel is open doors to insurers that were previously beyond our reach, expanding our market opportunity and our pipeline.

轉向系統整合商，Sapiens 本季在與系統整合商的合作方面繼續取得進展。這一新興管道為先前我們無法觸及的保險公司打開了大門，擴大了我們的市場機會和管道。

In 2024, Sapiens formalized a commitment, an internal process to support an SI alignment model for our go to market and delivery. As a result, in 2024, we closed a significant live platform deals in North America with the SSI partner. Also SI were involved with a meaningful number of opportunities.

2024 年，Sapiens 正式做出了承諾，這是一個內部流程，旨在支援我們進入市場和交付的 SI 協調模型。因此，2024 年，我們與 SSI 合作夥伴在北美達成了重要的直播平台交易。SI 也參與了大量有意義的機會。

Sapiens continued to strengthen its existing partnership with Deloitte globally and with LTI More in North America. We also developed a new partnership with COOG, Norima, Cognizant, and other regional SI.

Sapiens 繼續加強與德勤在全球範圍內以及與 LTI More 在北美的現有合作夥伴關係。我們也與 COOG、Norima、Cognizant 和其他地區 SI 建立了新的合作夥伴關係。

We are excited about the outcomes our growing SI relationship deliver. And we will continue to develop this valuable channel as a top strategic initiative in 2025.

我們對不斷發展的 SI 關係所帶來的成果感到非常興奮。而我們將繼續把這項寶貴管道發展作為2025年的首要策略舉措。

Before I wrap up, I would like to share our focus for 2025.

在結束之前，我想先分享我們 2025 年的重點。

Our commitment to building a robust pipeline and expanding our client base across all key markets remains solid.

我們始終堅定致力於建立強大的管道並擴大所有主要市場的客戶群。

To support this commitment and achieve our goals in 2025 and beyond, we have identified the following areas of focus for our teams and our resources.

為了支持這項承諾並實現我們在 2025 年及以後的目標，我們確定了團隊和資源的以下重點領域。

First, platform innovation and advanced AI capabilities. We will continue to invest in setting intelligent insurance platform, focusing on innovation and client success aims to drive sustainable growth globally and improve our competitive position.

第一，平台創新和先進的AI能力。我們將繼續投入建立智慧保險平台，專注於創新和客戶成功，旨在推動全球永續成長並提高我們的競爭地位。

We will continue to actively integrate AI into our offering to enhance various aspects of our customer operation. In addition, we are integrating AI tools into our implementation and delivery process to reduce implementation costs.

我們將繼續積極地將人工智慧融入我們的服務中，以增強客戶營運的各個方面。此外，我們正在將人工智慧工具整合到我們的實施和交付流程中，以降低實施成本。

Second, increasing costs sale to expand with existing customer [cross-selling] to existing customers presents a significant opportunity for growth, especially considering that most of our customers' current only have one savings product.

其次，增加成本銷售以擴大現有客戶（交叉銷售）對現有客戶來說是一個重大的成長機會，特別是考慮到我們大多數客戶目前只有一種儲蓄產品。

We have done extensive analysis to validate the cross-selling opportunity for our core business applications, data, digital AI, and decision solutions.

我們已經進行了廣泛的分析，以驗證我們的核心業務應用程式、數據、數位人工智慧和決策解決方案的交叉銷售機會。

By identifying and targeting the specific needs of our customers, we can introduce them to additional solutions that complement their existing solution.

透過識別和定位客戶的特定需求，我們可以向他們介紹補充其現有解決方案的附加解決方案。

We are also increasing our investment in the client management and the relationship building by expanding our client partners team and our account management team within our divisions.

我們也透過擴大部門內的客戶合作夥伴團隊和客戶管理團隊，增加了對客戶管理和關係建立的投資。

This effort extends across our entire customer base to drive deeper relationship, maximize customer value, and unlock new growth opportunities. Cross selling as a shorter sale cycle compared to acquiring new customers allow us to achieve faster revenue growth.

此項努力涵蓋我們整個客戶群，以建立更深層的關係、實現客戶價值最大化並發掘新的成長機會。與獲取新客戶相比，交叉銷售的銷售週期更短，使我們能夠實現更快的收入成長。

Third, accelerating Cloud adoption for existing customers through a scalable and efficient model. This transition supports our long-term customer relationship and will drive sustained growth and value creation.

第三，透過可擴展且高效的模型加速現有客戶採用雲端運算。這一轉變支持了我們長期的客戶關係，並將推動持續成長和價值創造。

We now have a unique opportunity to accelerate Cloud adoption as our new SA solution offers exclusive benefits such as AI-driven capabilities that are not available in older versions. So we aim to enhance our growth in our Life and pension and annuities, businesses globally.

我們現在擁有一個加速雲端採用的獨特機會，因為我們的新 SA 解決方案提供了舊版本中不具備的獨有優勢，例如 AI 驅動的功能。因此，我們的目標是促進全球人壽、退休金和年金業務的成長。

The demand for Life system transformation is strong, as in insurance seek to modernize legacy infrastructure. This market shift presents a significant opportunity for our Life offerings.

人壽系統轉型的需求十分強烈，就像保險業尋求對遺留基礎設施進行現代化改造一樣。這種市場轉變為我們的人壽產品帶來了重大機會。

Sapient Life solution featuring market leading components seamlessly integrated into a powerful platform provide a strong competitive advantage and differentiation. This position us as a market leader, and we are already gaining significant momentum.

Sapient Life 解決方案採用市場領先的組件無縫整合到強大的平台中，提供了強大的競爭優勢和差異化。這使我們成為市場領導者，而且我們已經獲得了巨大的發展動力。

Our objective is to capitalize our momentous pipeline, which currently is the highest among all Sapiens products, and lastly, we continue building out our system integrator partnership globally.

我們的目標是充分利用我們重要的產品線，它目前是所有 Sapiens 產品中最高的，最後，我們將繼續在全球範圍內建立我們的系統整合商合作夥伴關係。

In 2025 there will be a focus on developing a new pipeline with [SI] partners while formalizing enablement training, certification, and joint delivery models to continue to support the strategy. There will be an increased focus on maturing the model in North America to support the growth plan in the region.

2025 年，我們將專注於與 [E] 合作夥伴共同開發新的管道，同時正式化支援培訓、認證和聯合交付模式，以繼續支援該策略。我們將更加重視在北美完善此模式，以支持該地區的成長計畫。

In summary, Q4 2024 marked another quarter of growth and operational progress. And we remain committed to delivering long-term growth across all of our key territories.

總而言之，2024 年第四季標誌著又一個成長和營運進步的季度。我們將繼續致力於在所有主要地區實現長期成長。

I will turn the call over to our CFO to provide more details on our financial performance.

我將把電話轉給我們的財務官，以提供有關我們財務業績的更多詳細資訊。

Thank you, Roni. I will begin my commentary by reviewing the fourth quarter and full-year 2024 non-GAAP results, followed by comments on the balance sheet and cash flow. I will wrap up with our guidance for 2025.

謝謝你，羅尼。我將從回顧 2024 年第四季和全年非 GAAP 業績開始我的評論，然後對資產負債表和現金流量進行評論。我將總結我們對 2025 年的指導。

Revenue in the fourth quarter of 2024 total $134 million, an increase of 2.6% compared to $131 million in the fourth quarter of 2023.

2024 年第四季的營收總計 1.34 億美元，較 2023 年第四季的 1.31 億美元成長 2.6%。

In Q4 2024, we had [frenzy] headwind compared to Q3 of 2024. On a constant currency basis, our Q4 revenue were [2 million] higher than the reported Q4 revenue. Reported revenues for Q4 and the full year were in line with the update guidance we provided last quarter, despite the currency headwind in Q4.

與 2024 年第三季相比，2024 年第四季我們遇到了[狂熱]逆風。以固定匯率計算，我們的第四季營收比報告的第四季營收高出 [200 萬] 。儘管第四季面臨貨幣逆風，但第四季和全年報告的收入與我們上季度提供的最新指引一致。

For Q4 2024, our annualized recurring revenue, ARL reached $175 million, reflecting 6.5% increase from Q4 of last year, higher than the total reported revenue growth during the same period. Our revenue makes shows that revenue from recurring software products and reoccurring post-production services increased by 7.7% to $97 million compared to $90 million in Q4 2023.

2024 年第四季度，我們的年度經常性收入 ARL 達到 1.75 億美元，較去年第四季成長 6.5%，高於同期報告的總收入成長。我們的收入數據顯示，來自經常性軟體產品和經常性後製服務的收入與 2023 年第四季的 9,000 萬美元相比增長了 7.7%，達到 9,700 萬美元。

Growth of this segment was higher than the overall reported growth in line with our strategy to increase recurring and reoccurring revenues. I want to emphasize that recurring and reoccurring revenues in Q4 2024 represent 72.5% of total revenue, reflecting 3.4% increase compared to Q4 of last year.

該部門的成長高於整體報告的成長，符合我們增加經常性收入和經常性收入的策略。我想強調的是，2024 年第四季的經常性收入和經常性收入佔總收入的 72.5%，與去年第四季相比成長 3.4%。

Moving on to profitability, the most profit in the quarter was $63 million compared to $59 million in Q4 of 2023. The gross margin in the quarter was 46.7% compared to 45.4% in Q4 2023, representing an increase of 130 basis points.

談到獲利能力，本季的最高利潤為 6,300 萬美元，而 2023 年第四季的利潤為 5,900 萬美元。本季毛利率為 46.7%，而 2023 年第四季為 45.4%，增加了 130 個基點。

This increase in gross margin was primarily due to higher recurring and reoccurring revenue ratio of total revenue with high-gross margin than gross margin from one-time implementation. Operating profit in the fourth quarter of 2024 was $24 million, similar to Q4 2023.

毛利率的成長主要由於高毛利率總收入中經常性收入和經常性收入比例高於一次性實施的毛利率。2024 年第四季營業利潤為 2,400 萬美元，與 2023 年第四季相似。

Net income attributed to SAP shareholders for the fourth quarter of 2024 was $21 million, up 3.1% from [20 million] in Q4 of 2023. Earning per share was $0.37 for the fourth quarter of 2024, up from $0.36 of the fourth quarter of last year.

2024 年第四季歸屬於 SAP 股東的淨收入為 2,100 萬美元，較 2023 年第四季的 [2,000 萬美元] 成長 3.1%。2024 年第四季每股收益為 0.37 美元，高於去年第四季的 0.36 美元。

Turning now to full-year results for the 12 months ended December 31, 2024. 2024 revenues totaled $542 million, up 5.4% compared to $515 million in 2023. We met our full-year updated revenue guidance, which we provided in Q3, despite the currency headwind happened in Q4.

現在來看看截至 2024 年 12 月 31 日的 12 個月的全年業績。儘管第四季出現了貨幣逆風，但我們仍實現了第三季提供的全年最新收入預期。

Turning to revenue mix. In 2024, revenue from recurring software products and reoccurring post-production services totaled $390 million compared to $342 million in 2023, a [48-million] increase or 14.1% growth. This recurring and reoccurring revenue represent 72% of our total revenue in 2024.

轉向收入組合。2024 年，來自經常性軟體產品和經常性後製服務的收入總計 3.9 億美元，而 2023 年為 3.42 億美元，增加 [4,800 萬美元] 或成長 14.1%。這些經常性收入和經常性收入占我們 2024 年總收入的 72%。

Moving to geographic breakdown, revenue in North America represents 42% of total revenue. Our European revenue represents 50%. And the rest of the world represents 8% of total revenue. Growth in 2024 was derived from growth of 6.3% in North America, 4.9% in Europe, and 3.7% in the rest of the world.

以地理分佈來看，北美收入佔總收入的 42%。我們歐洲的收入佔50%。世界其他地區佔總收入的8%。2024 年的成長源自於北美 6.3%、歐洲 4.9% 和世界其他地區 3.7% 的成長。

We do not have customer concentration as evident by the fact that our top 10 customers represent 21.5% of revenue, with no customer representing more than 5% of total revenue.

我們的客戶集中度並不高，前十大客戶合計占我們總收入的 21.5%，且沒有一個客戶的收入佔比超過 5%。

Gross profit increased by $16 million in 2024, while gross profit margin increased by 60 basis points to 45.9%. The main reasons for the gross margin improvement are a better ratio of recurring and reoccurring revenue than last year and improve in offshore ratio.

2024年毛利增加1,600萬美元，毛利率增加60個基點至45.9%。毛利率改善的主要原因是經常性收入和經常性收入的比率比去年更好以及離岸比率的增加。

Our operating profit increased by $5 million or 4.8%. The operating margin was 18.2%, which is in line with our guidance. Despite the increasing gross margin of 60 basis points, our operating margin declined by 10 basis points versus 2023.

我們的營業利潤增加了 500 萬美元，即 4.8%。營業利益率為18.2％，符合我們的預期。儘管毛利率增加了 60 個基點，但我們的營業利潤率與 2023 年相比下降了 10 個基點。

Due to our strategic decision at the beginning of the year to increase investment in sales and marketing in absolute dollar and as a percentage from total revenue. Net income attributable to Sapiens' shareholders for 2024 was $83 million, up 10.5% from $75 million in 2023. Earning per diluted share was $1.48, up 9.6% from $1.35 in 2023.

由於我們年初做出的策略決策，以絕對美元金額和佔總收入的百分比增加對銷售和行銷的投資。2024年歸屬於Sapiens股東的淨收入為8,300萬美元，較2023年的7,500萬美元成長10.5%。每股攤薄收益為 1.48 美元，較 2023 年的 1.35 美元增長 9.6%。

Turning now to our balance sheet. As of December 31, 2024, we had cash-in-cash equivalent and short-term deposits totaling $216 million and debts of $40 million.

現在來看看我們的資產負債表。截至 2024 年 12 月 31 日，我們的現金等價物及短期存款總額為 2.16 億美元，債務為 4,000 萬美元。

In January 2025, we paid the annual debenture coupon of $20 million. The last and final payment of $20 million is scheduled for January 2026.

2025年1月，我們支付了2,000萬美元的年度債券票息。最後一筆 2000 萬美元的付款將於 2026 年 1 月支付。

Turning to adjusted free cash flow. In Q4 2024, we generated an adjusted free cash flow of $41 million compared to $37 million in Q4 of 2023. June 2024, we generated [adjustable] free cash flow of [75 million] compared to [71 million] in 2023.

轉向調整後的自由現金流。2024 年第四季度，我們產生的調整後自由現金流為 4,100 萬美元，而 2023 年第四季為 3,700 萬美元。2024 年 6 月，我們產生了 [7,500 萬] 的 [可調整] 自由現金流，而 2023 年為 [7,100 萬]。

Our adjusted free cash flow represents 89.5% of our non-govern net income, proving our business model of converting net profit to free cash flow.

我們的調整後自由現金流佔非政府淨收入的89.5％，證明了我們將淨利潤轉化為自由現金流的商業模式。

Let me now introduce our guidance for 2025. Revenues, non-GAAP revenue in the range of $553 million to $558 million, representing growth of 2.4% in the midpoint. This growth assumed currency headwind on revenue mainly to the euro and pound, which has weakened by [4] and 2%, respectively, versus the USA dollar. On a constant [KNC] basis, our growth rate would be 3.4%.

現在，我來介紹我們對 2025 年的指導。收入，非 GAAP 收入在 5.53 億美元至 5.58 億美元之間，中間值成長 2.4%。這一增長主要是由於歐元和英鎊對收入造成的匯率逆風，歐元和英鎊兌美元分別貶值了 [4] 和 2%。以恆定的[KNC]基礎計算，我們的成長率將是 3.4%。

Profit, non-GAAP operating profit in the range of $98 million to $102 million with operating margin of 18% at the midpoint. On a constant exchange rate, our operating profit would be higher and implies an operating margin of 18.7%.

利潤，非公認會計準則營業利潤在 9800 萬美元到 1.02 億美元之間，中間值營業利潤率為 18%。以固定匯率計算，我們的營業利益將會更高，意味著營業利益率為 18.7%。

The negative currency impact on operating profit is mainly due to the euro and pound weakening versus the USA dollar and the strengthening of the Israeli shekel versus the USA dollar.

貨幣對營業利潤的負面影響主要是因為歐元和英鎊兌美元走弱以及以色列謝克爾兌美元走強。

Let me elaborate on the factors impacting our 2025 guidance. In Q3 2024 earning goals, we discussed the factor impacting 2024 and 2025 growth.

讓我詳細說明一下影響我們 2025 年指引的因素。在 2024 年第三季的獲利目標中，我們討論了影響 2024 年和 2025 年成長的因素。

Transition to SaaS, coping scene in North America in macroeconomic uncertainty, we will now provide an update on this variable as they relate to our growth outlook.

向 SaaS 的轉型，應對北美宏觀經濟不確定性的情況，我們現在將提供有關該變數的最新信息，因為它們與我們的成長前景有關。

The transition to SaaS, we anticipate a similar impact on growth in 2025 as we mentioned in the earning call of Q3. With the transition of existing customers and the signing of new SaaS contracts expected to create an estimated 2%-3% revenue headwind.

正如我們在第三季財報電話會議上提到的那樣，向 SaaS 的轉型預計會對 2025 年的成長產生類似的影響。隨著現有客戶的轉變和新 SaaS 合約的簽署，預計將帶來 2%-3% 的收入阻力。

Coping scene of America, Roni though mentioned in his remarks that we are making a strategic investment in our P&C platform and are already seeing early positive indicators. We expect this effort to provide contribution starting in 2026 and beyond.

應對美國的情況，羅尼在演講中提到，我們正在對我們的財產和意外保險平台進行戰略投資，並且已經看到了早期的積極指標。我們期望這項努力能夠在 2026 年及以後做出貢獻。

Macroeconomic uncertainty continues to persist across global markets including North America, the Middle East, and other regions. We do not control these factors and cannot predict when they will stabilize. Those macroeconomic factors can lead to delay in signing new deals, which can in turn impact our revenue growth.

宏觀經濟不確定性持續存在於北美、中東和其他地區等全球市場。我們無法控制這些因素，也無法預測它們何時會穩定下來。這些宏觀經濟因素可能會導致簽署新協議的延遲，進而影響我們的收入成長。

As mentioned, those three factors that emerged in 2024, will impact our growth in 2025. In late Q4 of 2024, we had a strong deal closing momentum. Even with this strong deal-closing momentum, the timing of this closing affects the pace of revenue realization in 2025 and as a result, our overall growth.

如上所述，2024 年出現的三個因素將影響我們 2025 年的成長。2024 年第四季末，我們的交易成交勢頭強勁。即使交易完成勢頭強勁，但交易完成的時間也會影響 2025 年的營收實現速度，進而影響我們的整體成長。

I want to reiterate that we remain focused on accelerating a growth trajectory. To accelerate our growth beyond 2025, we are taking the following steps.

我想重申，我們仍然致力於加速成長軌跡。為了加速我們在2025年以後的成長，我們正在採取以下措施。

One, expanding new logo acquisition globally. We are strengthening our sales team, introducing our comprehensive insurance platform, and deepening our relationship with systems integrator. Since we started our initiative to work with SI, we signed two new logos in North America through SI Partnership.

一、在全球範圍內擴大新識別獲取。我們正在加強銷售團隊，推出綜合保險平台，並加深與系統整合商的關係。自從我們開始與 SI 合作以來，我們透過 SI 合作夥伴關係在北美簽署了兩個新標誌。

Driving cost-sale opportunity with existing customer, we are expanding our team and leveraging our pre-integrated insurance platform as a key enabler to cross-sell additional application and maximize customer value.

為了抓住現有客戶的成本銷售機會，我們正在擴大我們的團隊，並利用我們預先整合的保險平台作為交叉銷售附加應用程式和最大化客戶價值的關鍵推動因素。

In 2024, [cross] selling grew by 18% compared to last year. Three, advancing the transition of existing customers to Cloud and subscription. In 2023, we successfully migrated seven customers to the Cloud, followed by additional 10 Cloud immigration in 2024.

2024年，[交叉]銷售比去年成長了18%。三、推動存量客戶轉型為雲端化、訂閱化。2023 年，我們成功將 7 位客戶遷移至雲端，隨後在 2024 年又有 10 位客戶遷移至雲端。

The total number of Cloud customers at the end of 2024 was 169. And we are focused on accelerating this momentum in the coming years.

2024 年底雲端客戶總數為 169 個。我們致力於在未來幾年加速這一勢頭。

Currently, 28% of our customers are on the Cloud. And our goal is to reach over 60% of our total customers within the next five years, reinforcing our commitment to long-term growth and higher ARR ratio.

目前，我們有 28% 的客戶使用雲端。我們的目標是在未來五年內覆蓋超過 60% 的客戶群，以加強我們對長期成長和更高 ARR 比率的承諾。

Before handing the call back to Roni Al Dor, I want to reiterate that we remain focused on successful execution of our strategy, prioritizing sustainable growth and profitability. I will not turn the call back to Roni Al Dor. Roni?

在將電話交還給羅尼·阿爾·多爾之前，我想重申，我們仍然專注於成功執行我們的策略，優先考慮可持續增長和盈利能力。我不會把電話轉回給羅尼·阿爾·多爾。羅尼？

Thank you, Roni. We deliver a solid fourth quarter, reflecting the progress across our key markets. Our continued investment in our insurance platform remains a critical driver for growth.

謝謝你，羅尼。我們第四季業績表現穩健，反映出我們主要市場的進展。我們對保險平台的持續投資仍然是成長的關鍵動力。

Most importantly, we are committed to deliver long-term growth across all of our key territories and reinforce our position as a trusted provider of intelligent insurance solutions.

最重要的是，我們致力於在所有主要地區實現長期成長，並鞏固我們作為值得信賴的智慧保險解決方案提供者的地位。

I want to thank our global team for their commitment to excellence and growth and our investors for their ongoing support of Sapiens. I will now ask the operator to please open the call for questions.

我要感謝我們全球團隊對卓越和成長的承諾，以及我們的投資者對 Sapiens 的持續支持。現在我請接線生打開電話，回答大家的提問。

Thank you, ladies and gentlemen. At this time, we will begin the question-and-answer session. (Operator Instructions)

謝謝各位，女士們、先生們。現在，我們將開始問答環節。（操作員指令）

Dylan Becker, William Blair.

迪倫貝克爾、威廉布萊爾。

Hey guys, nice job here. Maybe running a sticking with some of the 2025 initiatives, you called up kind of cross selling and obviously accelerating the migration framework.

嘿夥計們，你們幹得好。或許您會堅持執行 2025 年的一些計劃，您會呼籲進行交叉銷售，並顯然加速遷移框架。

You touched on a lot of the Cloud customers, landing more wall to wall, having that kind of full-suite adoption approach due to the integration of the platform. Wonder how that kind of fuels your confidence in those two initiatives, given you do have a vast ecosystem of customers to migrate?

您觸及了許多雲端客戶，由於平台的集成，他們獲得了更廣泛的覆蓋，並採用了那種全套採用方法。考慮到您確實擁有龐大的客戶生態系統需要遷移，想知道這會如何增強您對這兩個舉措的信心？

And it seems that their propensity to kind of spend more and adopt more of the core platform continues to grow into the Cloud as well.

而且看起來，他們願意投入更多資金並採用更多核心平台，而這種傾向似乎也在雲端運算領域不斷成長。

Yes. Hi. This is Roni Al. As to answer your question about the Cloud and the platform, in both areas, we feel very comfortable. We are -- [migrate] many as we said. But we have a huge potential for both of them. And this is also now core platform, cost system also the business application as well.

是的。你好。這是 Roni Al。至於回答您關於雲端和平台的問題，在這兩個領域，我們都感到非常滿意。正如我們所說，我們 — — [遷移] 的人數很多。但我們對這兩者都有巨大的潛力。這也是現在的核心平台、成本系統和業務應用程式。

For the new clients, we are -- this is almost standard. So it's 99% are going with these two solutions from the existing. There is still a many opportunities ahead of us.

對於新客戶，這幾乎是標準的。因此，99% 的人都會採用現有的這兩種解決方案。我們的面前仍有許多機會。

At this moment, we are more -- try to convince the customers to vote. But we are not pushing. And this is the -- this is our plan for the future, for in the upgrade situation that they will have to push them to the Cloud. So that's for myself, maybe Alex wants to add.

此刻，我們更多的是──盡力說服顧客投票。但我們並未施壓。這就是——這是我們未來的計劃，在升級的情況下，他們必須將它們推向雲端。這就是我自己的想法，也許 Alex 想補充。

So then, just to add to what Ronnie said, this is Alex. When it comes to the existing customers, so again reiterate what Ronnie said. We increased the pace of transferring existing customers from one plan to Cloud.

那麼，補充一下羅尼說的話，這是亞歷克斯。當談到現有客戶時，再次重申羅尼所說的話。我們加快了將現有客戶從一個計劃轉移到雲端的步伐。

The plan is to continue and focus on that to reach the 60% level within the next five years. This is one clear target. The second one is the modular notion of the platform allows us to come back to our customer to the existing customer base and find their missing solutions that we can provide.

該計劃將繼續並致力於在未來五年內達到 60% 的水平。這是一個明確的目標。第二個是平台的模組化概念使我們能夠回到客戶現有的客戶群並找到我們可以提供的缺失解決方案。

So we see a lot of white space within our customer base and the connectivity of the platform, it means for them that there is a strong economy of scale and usability by taking those models from us and not from someone else. And this is part of our offerings.

因此，我們在客戶群和平台連接性方面看到了很多空白，對他們來說，這意味著透過從我們而不是從別人那裡獲取這些模型，可以實現強大的規模經濟和可用性。這是我們提供的產品的一部分。

So also, there we see lots of interest. And the plan is to continue in that in order also, to facilitate that not on the product side. But on the sales side, we increase the team at Sapiens that looks after existing accounts. And we are encouraging them to go stronger after this customer base.

因此，我們也看到了很多興趣。我們的計劃是繼續進行這項工作，以便不僅在產品方面促進這項工作。但在銷售方面，我們增加了 Sapiens 負責現有帳戶的團隊。我們鼓勵他們在這個客戶群之後變得更強大。

Maybe one more sentence into that this year. We've been able to transfer 10 existing customers to the Cloud. We see also increasing momentum on this opportunity.

也許今年還會再加一句話。我們已經能夠將 10 個現有客戶轉移到雲端。我們也看到這一機遇的勢頭日益增強。

We've also been able to transfer big accounts that give a confidence that we have been able to do this with many customers of us going forward. And this gives us the notion of reaching 60% in five years.

我們也能夠轉移大帳戶，這讓我們有信心，我們將來能夠與許多客戶一起做到這一點。這使我們預計在五年內達到 60% 的目標。

Got it. Okay. Thank you, all. No, it's really helpful. Maybe to the Life side, seems to be another area of notable strength. Can you kind of give us a sense, maybe the dynamics obviously on that space that are pushing for faster modernization now?

知道了。好的。謝謝大家。不，它確實很有幫助。也許對於生命方面來說，似乎是另一個具有顯著優勢的領域。您能否為我們介紹一下，也許該領域的動態顯然正在推動更快的現代化？

And maybe how we can kind of reconcile that or look back at the -- some of the trends you've seen play out or you're seeing play out maybe on the Life side relative to how the P&C modernization opportunities has played out over the last several years to that sounds really exciting as well?

也許我們如何調和這一點或回顧一下——您所看到的一些趨勢，或者您看到的一些趨勢，也許是在人壽方面，相對於過去幾年財產和意外事故現代化機會的進展，這聽起來也非常令人興奮？

So this is Alex again. So what we see on the Life insurance space globally is strong focus on North America, but also in the rest, other parts of the world, strong emphasis of careers to replace systems and to drive modernization on the Life side.

再次請見亞歷克斯。因此，我們看到全球人壽保險領域主要關注北美，但在世界其他地區，也同樣重視職業更新系統和推動人壽保險的現代化。

What we've seen in the past five to seven years in the P&C market is happening now on the Life side. The P&C went a bit before the Life into this replacement.

過去五到七年我們在財產和意外險市場看到的情況現在也發生在人壽保險市場。在這次替換中，P&C 比 Life 稍早。

And into this modernization process, in general, now we see a strong tendency on the Life side. It is a combination of factors. One is the overall digitalization of the world, the strong competition that requires them to be tech savvy.

而在這個現代化過程中，整體來說，我們看到了生命方面的強烈趨勢。這是多種因素的綜合作用。一是全球全面數位化，激烈的競爭要求他們精通科技。

The second part is the macroeconomics, the volatile stock market, the interest rate, the inflation, the whole drive to stronger adoption of a Life insurance, especially on the individual side as it comes as a solution to the individual market.

第二部分是宏觀經濟、動盪的股票市場、利率、通貨膨脹，以及推動人壽保險更廣泛採用的整體動力，尤其是在個人方面，因為它是個人市場的解決方案。

And this is a great momentum for us, also from timing perspective coming into the North American market with the platform approach that in this case provides a strong differentiation because we managed to combine several leading products and capabilities as a standalone basis to combine them into a holistic-combined offering that really ticked the boxes for the majority of needs of our customers.

這對我們來說是一個巨大的發展勢頭，從時機角度來看，我們以平台方式進入北美市場，在這種情況下，這提供了強大的差異化，因為我們成功地將幾種領先的產品和功能組合成一個獨立的整體產品，真正滿足了我們大多數客戶的需求。

And we see a great adoption on the platform notion with the customers. It's a strong differentiation compared to our competition in the market.

我們看到客戶對平台理念的接受度很高。與我們的市場競爭對手相比，這是一個強大的差異化。

So we feel very strong on the combination of we have the right offering to the market, powerful platform approach together with the macroeconomics that drives adoption to their Life. We feel we have a strong opportunity here.

因此，我們堅信，我們能夠為市場提供正確的產品，採用強大的平台方法，並結合推動其在生活中應用的宏觀經濟。我們覺得我們在這裡有很大的機會。

Okay, great. Thanks so much, really helpful there. Maybe one last clarification, one for Roni G here. You guys gave out the constant currency, revenue, number, and impact in the 2024.

好的，太好了。非常感謝，真的很有幫助。也許還有最後一個澄清，這是針對 Roni G 的。你們給了 2024 年的固定貨幣、收入、數字和影響。

But any sense on constant currency from an ARR perspective in the quarter? And how to think about '25 given the post-production strength we continue to see in the business? Thanks, guys.

但從本季的 ARR 角度來看，恆定匯率有什麼意義嗎？鑑於我們在業務中繼續看到的後製實力，您如何看待 25 年？謝謝大家。

Thank you. We grow this quarter 6.4% on the ARR versus the lower number 2% or 2.4% in the quarter in total revenue. Obviously, the ARR is going faster. The [con] -- stock exchanges obviously impact the ARR.

謝謝。本季我們的 ARR 成長了 6.4%，而總營收本季的成長幅度較低，為 2% 或 2.4%。顯然，ARR 的速度更快。缺點是，證券交易所顯然會影響 ARR。

We need to add an additional 1%. So we are 7.4% ARR growth in the company today. We are looking to increase this ratio going forward, going to 2005, '06, and going onwards.

我們需要額外增加 1%。因此，我們公司今天的 ARR 成長率為 7.4%。我們希望在未來提高這一比例，到2005年、2006年甚至更遠的未來。

And as we mentioned, we'd like to do a transition to the Cloud which will support this ARR, what we discussed a minute ago. And obviously, all the new customers are automatically on the Cloud on subscription based. So both of these factors will impact the ARR growth and increase the growth rate to 10% and onwards.

正如我們所提到的，我們希望過渡到雲端以支援此 ARR，這是我們剛才討論過的。顯然，所有新客戶都會自動透過訂閱的方式使用雲端。因此，這兩個因素都會影響 ARR 成長，並將成長率提高到 10% 及以上。

Great. Thank you, guys. Appreciate it.

偉大的。謝謝你們。非常感謝。

Chris Reimer, Barclays.

巴克萊銀行的克里斯雷默 (Chris Reimer)。

Yeah. Hi. Thanks for taking my question. I was wondering if you had been thinking about M&A in the pipeline.

是的。你好。感謝您回答我的問題。我想知道您是否正在考慮正在進行的併購。

And if there's anything new around that, seeing as it's been a while since there's been any acquisitions by you guys, just wondering what you're thinking on that right now, given the environment you're in?

如果這方面有什麼新消息的話，考慮到你們已經有一段時間沒有進行任何收購了，只是想知道考慮到你們所處的環境，你們現在對此有何看法？

I will start and maybe Roni and Alex will continue. Obviously, M&A is part of our growth hands. And therefore, we are pursuing for this opportunity.

我會開始，也許羅尼和亞歷克斯會繼續。顯然，併購是我們成長的一部分。因此，我們正在尋求這個機會。

You are right. In the last two to three years, we didn't complete any M&A. And the main reason, two years ago was the evaluation. And right now, we are in -- let's say reasonable market in terms of evaluation.

你是對的。在過去的兩到三年裡，我們沒有完成任何併購。而最主要的原因是，兩年前的評估。現在，從評估角度來說，我們處於合理的市場。

We have an internal team that are looking for that. And we are pursuing several opportunities across the globe, North America, and Europe. And we are focusing on mid to small [AKN] companies, potentially sometimes, when there is opportunity, we are looking also for bigger organizations.

我們有一個內部團隊正在尋找這一點。我們正在全球、北美和歐洲尋求機會。我們專注於中型和小型 [AKN] 公司，但有時，當有機會時，我們也會尋找更大的組織。

I can emphasize that during 2024, we had a big opportunity in the European market, both on P&C and Life. We compete with several competitors to do this acquisition, at the end, came to the final two. And we lost again based on valuation, the price at the last point was unreasonable to us and [withdraw].

我可以強調的是，2024 年，我們在歐洲市場（包括財產險和意外險以及人壽險）都擁有巨大的機會。我們與幾個競爭對手競爭做這個收購，最後選了最後的兩家。我們再次因為估值而失敗，最後的價格對我們來說是不合理的，[提取]。

I'm mentioning this to show the confidence that we are really engaged in this opportunity. And we are looking in 2025 to complete at least one M&A in the next, until the end of the year. So fully engage in this opportunity to execute with the cash. And we are ready to do so.

我提到這一點是為了表明我們確實有信心抓住這個機會。我們計劃在 2025 年底前完成至少一筆併購。因此，充分利用這個機會，利用現金來執行。我們已準備好這麼做。

Great. Thanks for that. That's great color. That's it for me.

偉大的。謝謝。顏色真棒。對我來說就是這樣了。

Alexei Gogolev, JP Morgan.

摩根大通 (JP Morgan) 的阿列克謝‧戈戈列夫 (Alexei Gogolev)。

Hello, everyone. Roni G, I was wondering if you can elaborate on the comment you made about customer concentration. I've noticed that the top 10 now represents 21.5% versus 18.8% in 2023.

大家好。Roni G，我想知道您是否可以詳細說明您對客戶集中度的評論。我注意到，現在前 10 名佔 21.5%，而 2023 年比例為 18.8%。

And the same with the largest customer, which used to be just over 3% of sales. So can you maybe talk about what was the dynamic there, maybe reveal those large customer trends?

最大的客戶也是如此，其銷售額過去僅佔3%多一點。那麼您能否談談那裡的動態，或許可以揭示那些大客戶趨勢？

Hi, Alexei. This is Roni. Obviously, I think we have amazing metrics in terms of customer concentration. And there isn't anyone dependent of customer, as I mentioned.

你好，阿列克謝。這是羅尼。顯然，我認為我們在客戶集中度方面擁有驚人的指標。正如我所提到的那樣，沒有任何人依賴客戶。

The biggest customer is only 4%, yes, slightly higher than last year, or 3%. But this is not material in terms of the total volume of Sapiens.

最大的客戶只有4%，是的，比去年稍微高一點，是3%。但這對智人的總量來說並不重要。

Going forward, we are looking to keep this momentum of the same level [21], 20% of the top 10 and less than 5% from the overall. We do not see any risk from this customer and obviously, no risks for seconds overall revenue.

展望未來，我們希望保持同樣的動能 [21]，即前 10 名中佔 20%，整體佔 5% 以下。我們沒有看到來自該客戶的任何風險，而且顯然，對於整體收入來說也沒有風險。

Okay. Thank you. And then a follow up on Dylan's question about Cloud. So as I understood, you've added 10 customers to Sapiens' Cloud in 2024.

好的。謝謝。然後對 Dylan 關於雲的問題進行後續回答。據我了解，您在 2024 年為 Sapiens' Cloud 增加了 10 位客戶。

It sounds like you're looking to add another 200 over the next five years. Can you talk about the pace that you're hoping to accelerate per year? And what sort of carrots and sticks you have in mind in order to persuade these customers to migrate to the Cloud?

聽起來你希望在未來五年內再增加 200 名員工。您能談談您希望每年加快的速度嗎？為了說服這些客戶遷移到雲端，您打算採取什麼樣的「胡蘿蔔加大棒」政策呢？

Yes. Obviously, the growth from 20% to 60% looks a lot. But if you dive in into the figures, we basically came from two vertical. The first one that is ongoing all the time, as Roni and Alex mentioned, all new deals that we are signing are on the Cloud subscription.

是的。顯然，從20%到60%的成長看起來很多。但如果你深入研究這些數字，我們基本上來自兩個垂直領域。第一個是一直在進行的，正如羅尼和亞歷克斯所提到的，我們簽署的所有新交易都是關於雲端訂閱的。

So this is by itself going to contribute a significant amount of percentage to the 60% total volume. The second vertical is that we have almost 450 customers or slightly less customers that we sold several years ago.

因此，這本身就會為 60% 的總量貢獻相當大的比例。第二個垂直領域是，我們有近 450 個客戶，或比幾年前銷售的客戶數量略少。

And we are approaching them in -- to [pursuade] them to move to the subscription slash Cloud over the years. Last year, we did 10.

多年來，我們一直在與他們接觸，說服他們轉向訂閱式雲端運算。去年，我們做了 10 個。

We are looking to increase these factors even to 15, 20, and 30, going forward. And that the adoption for subscription[less] Cloud is going bigger and bigger as we speak. So coming from two vertical, new customers and shifting the existing one to a Cloud.

我們希望將來將這些因素增加到 15、20 和 30。正如我們所說，訂閱式雲端的採用正在越來越廣泛。因此，從兩個垂直角度來看，新客戶和現有客戶都轉移到了雲端。

And Roni, just to clarify a comment you made also earlier on the call. So 36 deals total in 2024, similar number to 2023. But could you maybe talk about the contribution to ARR, and the average size of those deals has increased year over year?

羅尼，我只是想澄清一下你早些時候在電話中提到的一個評論。因此，2024 年的交易總數為 36 筆，與 2023 年的數量相似。但是您能否談談對 ARR 的貢獻，以及這些交易的平均規模逐年增加嗎？

No. The contribution did not decrease. But in the early years, the contribution to the ARR is slightly smaller than as we continue. And the contribution from the ARR is increasing as we're signing them.

不。貢獻並沒有減少。但在早期，對 ARR 的貢獻比我們接下來的貢獻略小。隨著我們簽署協議，ARR 的貢獻也增加。

I think we had a higher number of deals that we signed from [cross-sell] and sometimes cross-sell is already in the Cloud. But every deal that we are signing new logo, I contribute to the ARR. Again, in the early years less than as we continue going forward.

我認為我們從交叉銷售中簽署的交易數量更多，有時交叉銷售已經在雲端了。但是，我們簽署的每一筆新標誌的交易，我都會為 ARR 做出貢獻。再次，早年的情況比我們繼續前進時的情況要少。

And are those deals, mostly in P&C or in Life or broadly equal?

這些交易主要是財產和意外交易還是人壽交易，或者大致相同？

Across the board.

全面。

Okay, perfect. Thank you, Roni.

好的，完美。謝謝你，羅尼。

(Operator Instructions)

（操作員指令）

There are no further questions at this time. Before I ask Mr. -- 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 two hours.

目前沒有其他問題。在我請雅法·科恩·伊夫拉先生和女士繼續作結束語之前，我想提醒與會者，本次通話的重播將在兩小時後開始。

In the US, please call 1-888-269-0005. In Israel, please call 03-9255-938. And internationally, please call 9723-92-55-938. Ms. Cohen-Ifrah, please go ahead.

在美國，請撥打1-888-269-0005。在以色列，請撥打03-9255-938。國際電話請撥 9723-92-55-938。請科恩·伊弗拉女士發言。

Thank you for joining our call today. We look forward to discussing our first-quarter results on the next earnings call. We welcome you to contact us if you have any further questions. Thank you.

感謝您今天參加我們的電話會議。我們期待在下次財報電話會議上討論我們的第一季業績。如果您還有任何其他問題，歡迎與我們聯絡。謝謝。

Thank you. This concludes the Sapiens International Corporation fourth quarter 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。Sapiens International Corporation 2024 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。