Sapiens (NASDAQ: SPNS) reported Q1 EPS of $0.20, $0.01 better than the analyst estimate of $0.19. Revenue for the quarter came in at $90.5 million versus the consensus estimate of $87.98 million.

"Sapiens' first-quarter performance reflects our continued focus on supporting our existing customers and closing new business," said Roni Al-Dor, president and CEO, Sapiens. "On a non-GAAP basis, we reported 17.9% revenue growth and increased operating margins by 80 basis points to 16.1%, with both P&C and L&A contributing to growth in the quarter."

"In March, we responded to the COVID-19 global outbreak per country, controlling expenses where appropriate, while maintaining productivity. I'm incredibly proud of my teams' accomplishments in this unique and challenging environment, and impressed by our customers' rapid shift to remote work, while they remained committed to their customers and their own digital transformation projects. As a result, Sapiens maintained momentum through the quarter," said Al-Dor.

Continued Al-Dor: "Across all our product lines, we see a growing demand for managed services, which is a testament to our delivery model – it allows carriers to focus on running their business. The current business disruption highlights the need for legacy insurance companies to migrate their platforms and increase their relevancy with more digital solutions. Our recent acquisition in Germany, sum.cumo, expands our digital offerings, helping us become even more competitive. While there continues to be uncertainty resulting from COVID-19, we remain focused on executing our long-term strategy. I am confident that as the global economy recovers, Sapiens will emerge stronger and well- positioned for continued growth."

"Strong demand for our digital products, combined with high recurring revenue and a solid balance sheet, position us for success in this challenging environment. We've taken appropriate actions to provide the necessary flexibility for revenue growth and operating efficiency within the current circumstances. While our business remains strong, due to macro events there could be delays in closing new deals, which could slightly impact our revenue. Therefore, we are slightly revising our annual revenue guidance for 2020 to the range of $368 million to $377 million, as compared to our prior range of $377 million to $383 million. Overall, we changed the mid-point of the revenue guidance by 2.0%. Sapiens' guidance for annual operating margin remains unchanged at 16.0% to 16.5%," said Al-Dor.

"Furthermore, Sapiens remains committed to returning value to shareholders," concluded Al-Dor. "Despite the condition in the market, we announce a dividend of $0.14 per share – approximately $7 million – reflecting our continued confidence in our business and Sapiens' ability to generate cash."

For earnings history and earnings-related data on Sapiens (SPNS) click here.