© Formula Systems PR Magic Software missed profit and revenue forecasts for the quarter
| Investing news |
The dual company Magic (TASE:), traded on the Tel Aviv Stock Exchange and Nasdaq, reported on Thursday its financial results for the first quarter of 2023, which it concludes with a slight increase in revenues and net profit.
In addition, the company confirmed the revenue forecast for the entire year.
Magic shares rose 0.3% on the Tel Aviv Stock Exchange after the publication of the reports, after having fallen 8.45% in the last 12 months, but jumped 9% in the last month. The stock is trading at a price of NIS 52.45, which reflects the company’s market value of approximately NIS 2.5 billion.
Magic’s (NASDAQ: ) revenues in the first quarter increased by approximately 2.7% to a first quarter record of approximately $142.4 million, compared to $138.7 million in the same period last year.
Neutralizing the effect of exchange rate differences, the company’s revenues in the first quarter of 2023 would have increased by approximately 8% to a record of approximately $149.8 million, reflecting organic growth of 50.3%.
The operating profit in the quarter decreased by about 4.8% to about 15.3 million dollars, compared to 16.1 million dollars in the corresponding period.
Neutralizing the effect of exchange rate differences, the company’s operating profit in the first quarter of 2023 would have increased by approximately 2.5% to a first quarter record of approximately $16.5 million.
The operating profit for the first quarter of 2023 included expenses in the amount of about 0.6 million dollars for share-based compensation compared to 0.1 million in the corresponding period last year.
Net income attributable to Magic shareholders on a non-GAAP basis in the first quarter decreased by approximately 3.2% to a total of approximately $12.6 million, or 26 cents per fully diluted share, compared to approximately $13 million, or 26 cents per fully diluted share, in the quarter the equivalent in 2022.
Magic leaves unchanged the revenue forecast for 2023 in the range between 585-593 million dollars, reflecting an annual growth rate of 4.6%-3.2%.
Guy Bernstein, CEO of Magic Software Industries (pictured above):
“I am proud of the performance that Magic demonstrated during the first quarter of 2023, which reflect revenue growth and testify above all to the strong foundation of our activity and the financial soundness of the company. We continue to lead complex, strategic projects at the core of our clients’ businesses in a variety of sectors even during challenging periods in the market in Israel and around the world We continue to be committed to the continued implementation of the company’s business strategy to build an extensive portfolio of products and services that create value for our customers in the management, development, optimization, acceleration and prosperity of their businesses.”
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