Sapiens Benefits From a Strong Portfolio, Partner Base - Microsoft (NASDAQ:MSFT), Amphenol (NYSE:APH)

　　Image Source: Zacks Investment Research

　　Sapiens CoreSuite for MPL stands out as the only solution tailored specifically for the complex needs of the MPL market. It provides an end-to-end, core insurance solution that supports individuals, groups, hospitals and institutional businesses through the entire policy lifecycle, from policy quoting to claim resolution.

　　Expanding Partner Base, International Footprint Aids Prospect

　　Sapiens is riding on growing clientele, as well as a strong partner base. An expanding partner base that includes the likes of Microsoft MSFT, DataCrest, Binah.ai, Deloitte, PWC and LTIMindtree has been a key catalyst.

　　Sapiens' partnership with Microsoft has been a game changer. SPNS is one of the few selected vendors collaborating with MSFT on OpenAI.

　　SPNS recently launched IntegrateAI, the newest capability from Sapiens Decision, integrating machine learning models into the business-friendly decision model workbench. IntegrateAI follows Sapiens Decision's recent ModelAI release, which brings a Generative AI copilot to decision modelers with integration to Microsoft Azure's OpenAI Service.

　　SPNS' expanding international footprint in the U.K., Germany, the Caribbean, Thailand and Canada is noteworthy.

　　Sapiens recently announced that Bangkok Insurance Public Company Limited, a leading insurer in Thailand, has successfully implemented the Sapiens Property & Casualty (P&C) platform. This implementation, which includes the Sapiens IDITSuite for Property & Casualty, Sapiens ReinsuranceMaster and Sapiens Intelligence, marks one of the most extensive and complex projects in the Thai insurance sector to date.

　　Republic Life, a Caribbean-based company, adopted Sapiens CoreSuite for Life & Annuities and Sapiens Digital Suite hosted on Microsoft Azure cloud. Sapiens expanded its footprint into Canada on the back of its Saskatchewan Workers' Compensation Board partnership.

　　Meanwhile, BHSF, a U.K. “profit for good” health and wellbeing provider, has chosen to deploy the Sapiens Platform, including Sapiens IDITSuite for P&C and Sapiens DigitalSuite. German pet insurance brand Cleo also deployed Sapiens SCIPSuite to accelerate its underwriting, digital sales and go-to-market processes.

　　Sapiens' Outlook Remains Positive

　　For 2024, the company still expects revenues between $550 million and $555 million. The Zacks Consensus Estimate for 2024 revenues is pegged at $553.45 million, indicating year-over-year growth of 7.55%.

　　Operating income is expected between $99.6 million and $102.7 million. SPNS still expects a non-GAAP operating margin between 18.1% and 18.5%.

　　The consensus mark for earnings is pegged at $1.48 per share, unchanged over the past 60 days, indicating 9.63% over 2023.

　　Zacks Rank & Other Stocks to Consider

　　Sapiens currently sports a Zacks Rank #1 (Strong Buy).

　　NVIDIAand AmphenolAPH are a couple of other top-ranked stocks in the broader Zacks Computer & Technology sector, each currently sporting a Zacks Rank #1.

　　Long term earnings growth rate for NVIDIA and Amphenol is currently pegged at 37.57% and 12.69%, respectively.

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