Formula Systems Clocks 35% Revenue Growth In Q2

Author: Anusuya Lahiri | August 19, 2021 08:51am

• Formula Systems (1985) Ltd (NASDAQ:FORTY) reported second-quarter FY21 revenue growth of 34.5% year-on-year to $587.9 million.
• Segments: As of June 30, 2021, Formula held 48.9%, 43.9%, 45.5%, 100%, 50%, 90.1%, 80%, and 100% of the outstanding ordinary shares of Matrix IT Ltd., Sapiens International Corporation N.V, Magic Software Enterprises Ltd., Michpal Micro Computers (1983) Ltd., TSG IT Advanced Systems Ltd., Insync Staffing Solutions, Inc., Ofek Aerial Photography Ltd., and ZAP Group Ltd., respectively.
• Demand for technologies like cloud, cyber, digital, data, AI, and MA, drove Matrix. Sapiens' "Land and Expand" strategy aided growth in the highly regulated and regionally diverse global insurance markets.
• The results also included Zap Group, offering solutions in advertising, website promotion, and targeted mailing.
• Overall gross margin expanded by 43 bps to 24%.
• The operating income increased by 24.1% Y/Y to $50.5 million, aided by growth across its investment portfolio.
• EPS of $0.86 versus $0.73 last year.
• Formula Systems held $468.2 million in cash and equivalents. The board approved a cash dividend of $0.78 per share, payable on September 22, 2021, to shareholders of record on September 1, 2021.
• Price Action: FORTY shares closed at $92.12 on Wednesday.

Posted In: FORTY