Roni Al-Dor: Roni, you 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, let’s 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 just to move to the cloud at this moment with our continued investment. And as I mentioned, we increased investment in our strategy and product marketing, in marketing, sales and CC. So overall, increased investment and we are looking for both incrementally.
Roni Giladi: Kevin, maybe I will add one more sentence. In terms of new logo, give or take, we have the same time, but the number of deals or product that we sold to the same customer is bigger than last year. And also from cross-sell opportunity, this is a significant improvement from 2022, the number of cross-sell opportunity, additional product to existing customer also grew well, right now very close to almost 30 new deals in 2023, together, new logo and cross-sell opportunity deals.
Operator: The next question is from Mayank Tandon of Needham and Company.
Unidentified Analyst: 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 guide and maybe provide any commentary and how we should think about the revenue and margin trajectory throughout the year?
Roni Giladi: If we look in the last two years, European market was growing double digit or close to double digit, macro environment slightly slower than in the past, not significant but slightly. And as we projected, we are going to grow in the European region high single digits. In North America, we did turn around, if I’m looking back two years, we almost did not grow over there. Last year, we grew 4% and this year close to 8%. And we mentioned that we are going to grow next year high single digits. And in APAC, which include the APAC in South Africa together, we have a nice pipeline also in APAC and we are going to have a mid single digit also in rest of world region towards 2024. We mentioned that we are going to grow about 7.3% at the mid point between [550 to 565]. 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%. So overall, we are expecting to grow without this at 8%.
Unidentified Analyst: And then just given you guys have been experiencing a couple quarters of stronger growth. Are you guys seeing any changes in terms of competition or win rates across whether it’s Europe, North America or APAC?
Roni Al-Dor: Not something dramatically. We have several products, thinking with the workers’ comp, we’re in a leading position in the reinsurance, we are 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 seeing all the time more competition is around the P&C. And also difference between North America, it’s many players, but in Europe is majority from North America is Guidewire and all the rest is more local company like RGA or Klien and so on. All local in Asia. So more competition on the P&C. All the rest is more or less the same or even Sapiens in better position than it was in the past.
Operator: The next question is from Alexei Gogolev of JP Morgan.
Alexei Gogolev: I was wondering if you could disclose the number of customers that are on the cloud. I seem to recall that at the end of 2022, you were saying there are about 120 customers on the cloud. Any updates on that number please?
Roni Giladi: We probably have additional 2020 plus customer on the cloud as of today. We do not have the exact number, but it’s probably close to 150
Alexei Gogolev: And now that you’re disclosing ARR, would you be able to say what is the share of cloud customers in ARR?
Roni Giladi: The vast majority of the ARR is customers that are on the cloud.
Alexei Gogolev: And I also wanted to ask you about P&C in North America. I recall that back in 2022, you were saying revenue contribution of P&C in North America was about $50 million. Any updates on that number or perhaps how it has grown over the last year?
Roni Giladi: Can you repeat the question, Alexei?
Alexei Gogolev: Share of P&C in North America.
Roni Al-Dor: In North America, we have three product lines beside the workers’ comp, it’s also P&C but we categorize indifferent where what we call cost with life, and we have the MPL, it’s a company that we acquire and then we have a single, it’s very old. So all of this is more than what you mentioned in terms of the revenue. And so all these business continue to grow. It was couple of years of slowing down based on many delivery challenges and to continue to develop our product suite. Just a quick reminder, in the CoreSuite, we acquire many — StoneRiver and then we acquire Adaptik, and then we integrate and build our billing system. So together, all of this done, we decide to go back to the market, we signed [22] deals last year and we hope to see more business this year.
Alexei Gogolev: So just to clarify, if P&C North America growing faster than overall North America or roughly the same level?
Alex Zukerman: We’re not providing by product in the region. The overall life and the company today is going slightly higher than the P&C, but this is overall global company.
Operator: The next question is from Chris Reimer of Barclays.
