Exhibit 99.1

Sapiens Reports Second Quarter 2021 Financial Results

Holon, Israel, August 4, 2021 – Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, today announced its financial results for the second quarter ended June 30, 2021.

Summary Results for Second Quarter 2021 (USD in millions, except per share data)

	GAAP									Non-GAAP
	June 30, 2021			June 30, 2020			% Change			June 30, 2021			June 30, 2020			% Change
Revenue	$	114.4		$	93.1			22.9	%	$	115.0		$	93.1			23.6	%
Gross Profit	$	46.6		$	38.3			21.9	%	$	51.7		$	41.9			23.4	%
Gross Margin		40.8	%		41.1	%		(30) bps			45.0	%		45.0	%		-
Operating Income	$	13.2		$	12.4			6.2	%	$	19.8		$	16.8			17.9	%
Operating Margin		11.5	%		13.3	%		(180) bps			17.2	%		18.0	%		(80) bps
Net Income (*)	$	10.4		$	9.3			11.9	%	$	16.0		$	13.3			19.7	%
Diluted EPS	$	0.19		$	0.18			5.6	%	$	0.29		$	0.26			11.5	%

(*) Attributable to Sapiens’ shareholders.

“Sapiens second quarter results demonstrate the success of our strategy, as we continue to expand our global market presence in both P&C and L&A, and provide insurers of all tiers the broadest product portfolio and services offering in the market. This unique value proposition enables insurers to benefit from our pre-integrated, cloud-first, low-code “insurance-in-a-box” approach across the majority of our products, empowering them to choose between deploying our end-to-end solution, or any combination of its components, to meet their evolving needs,” stated Roni Al-Dor, President and CEO of Sapiens.

“In the second quarter Sapiens delivered a strong, year-over-year non-GAAP revenue growth of 24%, reaching a record high of $115 million. Non-GAAP operating margin reached 17.2%. In North America, we continue to make progress and have achieved sequential growth, as we execute our plan to continue to enhance our delivery capabilities. In Europe, we have been winning new business and have successfully completed new transformation projects, including with Tier-1 carriers. The Rest-of-the-World, which includes APAC and South Africa, continues on a path of growth. We are leveraging our global presence and rich product portfolio to further increase market share,” continued Mr. Al-Dor.

1

“We are increasing our 2021 revenue guidance for the second time. The new revenue guidance ranges from $461 to $466 million. We are also increasing our operating margin guidance to a range of 17.2% to 17.5%. Our strong performance reflects the important role Sapiens plays in our customers’ lifecycle and transformation journeys in the growing and evolving insurance industry.”

Quarterly Results Conference Call

Management will host a conference call and webcast today, August 4, 2021 at 9:30 a.m. Eastern Time (4:30 p.m. in Israel) to review and discuss Sapiens’ results.

Please call the following numbers (at least 10 minutes before the scheduled time) to participate:

North America (toll-free): + 1-888-642-5032; International: +972-3-918-0609; UK: 0-800-917-5108

The live webcast of the call can be viewed on Sapiens’ website at: https://www.sapiens.com/investor-relations/ir-events-presentations. A replay of the call will be available one business day following the completion of the event, at the same link for 90 days.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP revenue, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributed to Sapiens shareholders, non-GAAP basic and diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash-Flow.

Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens’ financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

2

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: Valuation adjustment on acquired deferred revenue, amortization of capitalized software development and other intangible assets, capitalization of software development, stock-based compensation, compensation related to acquisition and acquisition-related costs, restructuring and cost reduction costs, and tax adjustments related to non-GAAP adjustments.

Management of the Company does not consider these non-GAAP measures in isolation, or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations, as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures.

To compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.

The Company defines Adjusted EBITDA as net profit, adjusted for valuation adjustment on acquired deferred revenue, stock-based compensation expense, depreciation and amortization, capitalized of software development costs, compensation expenses related to acquisition and acquisition-related costs, restructuring and cost reduction costs, financial expense (income), provision for income taxes and other income (expenses). These amounts are often excluded by other companies to help investors understand the operational performance of their business.

The Company uses Adjusted EBITDA as a measurement of its operating performance, because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflects an additional way of viewing aspects of the operations that the Company believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting its business. The Company uses Adjusted Free Cash-Flow as a measurement of its operating performance, and reconciles cash-flow from operating activities to Adjusted Free Cash-Flow, while reducing the amounts for capitalization of software development costs and capital expenditures. The Company adds back cash payments made for former acquisitions in respect of  future performance targets and retention criteria as determined upon acquisition date of the respective acquired company, which were included in the cash-flow from operating activities. We believe that Adjusted Free Cash-Flow is useful in evaluating our business, because Adjusted Free Cash-Flow reflects the cash surplus available to fund the expansion of our business.

About Sapiens

Sapiens International Corporation empowers insurers to succeed in an evolving industry. The company offers digital software platforms, solutions and services for the property and casualty, life, pension and annuity, reinsurance, financial and compliance, workers’ compensation and financial markets. With more than 35 years of experience delivering to more than 600 organizations globally, Sapiens has a proven ability to satisfy customers’ core, data and digital requirements. For more information: www.sapiens.com.

Investors and Media Contact

Sapiens

Daphna Golden

Vice President, Head of Investor Relations

Email: ir@sapiens.com

Hayden IR
Brett Mass
Managing Partner
Phone: +1 646-536-7331
Email: Brett.Maas@HaydenIR.com

3

Forward Looking Statements

Certain matters discussed in this press release that are incorporated herein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to pandemic risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses and epidemics like the recent novel coronavirus pandemic, which adversely affected our results of operations, or fluctuations in currency exchange rates; and risks related to our principal location in Israel and our status as a Cayman Islands company.

While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Risk Factors” in our most recent Annual Report on Form 20-F, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations.

4

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

	Three months ended				Six months ended
	June 30				June 30
	2021		2020		2021		2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue		114,406		93,063		223,998		183,597
Cost of revenue		67,782		54,804		133,118		109,074
Gross profit		46,624		38,259		90,880		74,523
Operating expenses:
Research and development, net		13,267		9,328		26,355		19,854
Selling, marketing, general and administrative		20,183		16,528		38,986		31,988
Total operating expenses		33,450		25,856		65,341		51,842
Operating income		13,174		12,403		25,539		22,681
Financial and other expenses, net		69		63		584		1,550
Taxes on income		2,688		3,010		4,637		4,911
Net income		10,417		9,330		20,318		16,220
Attributable to non-controlling interest		13		33		80		103
Net income attributable to Sapiens’ shareholders		10,404		9,297		20,238		16,117
Basic earnings per share		0.19		0.19		0.37		0.32
Diluted earnings per share		0.19		0.18		0.36		0.32
Weighted average number of shares outstanding used to compute basic earnings per share (in thousands)		54,754		50,297		54,722		50,236
Weighted average number of shares outstanding used to compute diluted earnings per share (in thousands)		55,548		51,173		55,558		51,128

5

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED NON-GAAP STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

	Three months ended				Six months ended
	June 30				June 30
	2021		2020		2021		2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Revenue		115,036		93,063		225,258		183,597
Cost of revenue		63,316		51,163		124,309		101,906
Gross profit		51,720		41,900		100,949		81,691
Operating expenses:
Research and development, net		15,226		10,579		29,946		22,542
Selling, marketing, general and administrative		16,699		14,538		32,208		27,752
Total operating expenses		31,925		25,117		62,154		50,294
Operating income		19,795		16,783		38,795		31,397
Financial and other expenses, net		69		63		584		1,550
Taxes on income		3,738		3,347		7,249		5,992
Net income		15,988		13,373		30,962		23,855
Attributable to non-controlling interest		13		33		80		103
Net income attributable to Sapiens’ shareholders		15,975		13,340		30,882		23,752
Basic earnings per share		0.29		0.27		0.56		0.47
Diluted earnings per share		0.29		0.26		0.56		0.46
Weighted average number of shares outstanding used to compute basic earnings per share (in thousands)		54,754		50,297		54,722		50,236
Weighted average number of shares outstanding used to compute diluted earnings per share (in thousands)		55,548		51,173		55,558		51,128

6

SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)

	Three months ended						Six months ended
	June 30,						June 30,
	2021			2020			2021			2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
GAAP revenue	114,406			93,063			223,998			183,597
Valuation adjustment on acquired deferred revenue	630			-			1,260			-
Non-GAAP revenue	115,036			93,063			225,258			183,597
GAAP gross profit		46,624			38,259			90,880			74,523
Revenue adjustment		630			-			1,260			-
Amortization of capitalized software		1,891			1,531			3,675			3,027
Amortization of other intangible assets		2,575			2,110			5,134			4,141
Non-GAAP gross profit		51,720			41,900			100,949			81,691
GAAP operating income		13,174			12,403			25,539			22,681
Gross profit adjustments		5,096			3,641			10,069			7,168
Capitalization of software development		(1,959	)		(1,251	)		(3,591	)		(2,688	)
Amortization of other intangible assets		1,358			698			2,724			1,287
Stock-based compensation		1,471			764			2,870			1,386
Acquisition-related costs *)		655			528			1,184			1,563
Non-GAAP operating income		19,795			16,783			38,795			31,397
GAAP net income attributable to Sapiens’ shareholders		10,404			9,297			20,238			16,117
Operating income adjustments		6,621			4,380			13,256			8,716
Taxes on income		(1,050	)		(337	)		(2,612	)		(1,081	)
Non-GAAP net income attributable to Sapiens’ shareholders		15,975			13,340			30,882			23,752

(*) Acquisition-related costs pertain to charges on behalf of M&A agreements related to future performance targets and retention criteria, as well as third-party services, such as, tax, accounting and legal rendered until the acquisition date.

7

Summary of NON-GAAP Financial Information
U.S. dollars in thousands (except per share amounts)

	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
Revenues		115,036		110,222		102,936		97,968		93,063
Gross profit		51,720		49,229		47,044		44,206		41,900
Operating income		19,795		19,000		18,666		17,859		16,783
Net income to Sapiens’ shareholders		15,975		14,908		14,461		13,746		13,340
Adjusted EBITDA		20,920		20,120		20,032		19,010		17,854
Basic earnings per share		0.29		0.27		0.27		0.27		0.27
Diluted earnings per share		0.29		0.27		0.27		0.27		0.26

Non-GAAP Revenues by Geographic Breakdown
U.S. dollars in thousands

	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
North America		46,767		44,754		47,303		49,979		46,610
Europe		59,718		57,642		49,225		42,394		41,030
Rest of the world		8,551		7,826		6,408		5,595		5,423
Total		115,036		110,222		102,936		97,968		93,063

Adjusted Free Cash-Flow
U.S. dollars in thousands

	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020
Cash-flow from operating activities		26,845			11,755			21,030			16,705			14,761
Increase in capitalized software development costs		(1,959	)		(1,632	)		(1,604	)		(1,506	)		(1,251	)
Capital expenditures		(1,082	)		(821	)		(725	)		(963	)		(393	)
Free cash-flow		23,804			9,302			18,701			14,236			13,117
Cash payments attributed to acquisition-related costs(*) (**)		-			1,280			2,363			242			1,562
Adjusted free cash-flow		23,804			10,582			21,064			14,478			14,679

(*) Included in cash-flow from operating activities

(**) Acquisition-related payments pertain to payments on behalf of M&A agreements related to future performance targets and retention criteria, as well as third-party services, such as, tax, accounting and legal rendered until the acquisition date.

8

Adjusted EBITDA Calculation
U.S. dollars in thousands

	Three months ended						Six months ended
	June 30						June 30
	2021			2020			2021			2020
GAAP operating profit		13,174			12,403			25,539			22,681
Non-GAAP adjustments:
Valuation adjustment on acquired deferred revenue		630			-			1,260			-
Amortization of capitalized software		1,891			1,531			3,675			3,027
Amortization of other intangible assets		3,933			2,808			7,858			5,428
Capitalization of software development		(1,959	)		(1,251	)		(3,591	)		(2,688	)
Stock-based compensation		1,471			764			2,870			1,386
Compensation related to acquisition and acquisition-related costs		655			528			1,184			1,563
Non-GAAP operating profit		19,795			16,783			38,795			31,397
Depreciation		1,125			1,071			2,245			2,182
Adjusted EBITDA		20,920			17,854			41,040			33,579

9

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	June 30,		December 31,
	2021		2020
	(unaudited)		(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		155,805		152,561
Short-term bank deposit		20,000		30,000
Trade receivables, net and unbilled receivables		70,214		65,409
Other receivables and prepaid expenses		15,842		19,388
Total current assets		261,861		267,358
LONG-TERM ASSETS
Property and equipment, net		15,640		16,970
Severance pay fund		6,733		6,582
Goodwill and intangible assets, net		352,224		363,597
Operating lease right-of-use assets		49,777		54,390
Other long-term assets		8,269		5,264
Total long-term assets		432,643		446,803
TOTAL ASSETS		694,504		714,161
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payables		6,762		5,389
Current maturities of Series B Debentures		19,796		19,796
Accrued expenses and other liabilities		73,003		75,119
Current maturities of operating lease liabilities		11,790		9,924
Deferred revenue		42,573		34,548
Total current liabilities		153,924		144,776
LONG-TERM LIABILITIES
Series B Debentures, net of current maturities		78,935		98,676
Deferred tax liabilities		13,872		16,010
Other long-term liabilities		12,847		12,129
Long-term operating lease liabilities		43,586		48,773
Redeemable non-controlling interest		483		517
Accrued severance pay		9,676		9,586
Total long-term liabilities		159,399		185,691
EQUITY		381,181		383,694
TOTAL LIABILITIES AND EQUITY		694,504		714,161

10

SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOW
U.S. dollars in thousands

	For the six months ended June 30,
	2021			2020
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net income		20,318			16,220
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization		13,778			10,637
Accretion of discount on Series B Debentures		55			77
Capital loss from sale of property and equipment		36			-
Stock-based compensation related to options issued to employees		2,870			1,386
Net changes in operating assets and liabilities, net of amount acquired:
Trade receivables, net and unbilled receivables		(8,655	)		(11,554	)
Deferred tax assets, net		(2,822	)		(1,146	)
Other operating assets		9,453			3,286
Trade payables		1,230			(275	)
Other operating liabilities		(5,449	)		(2,187	)
Deferred revenues		7,682			4,008
Accrued severance pay, net		104			68
Net cash provided by operating activities		38,600			20,520
Cash flows from investing activities:
Purchase of property and equipment		(1,903	)		(945	)
Withdrawal of (investment in) deposit		10,000			(379	)
Proceeds from sale of property and equipment		1,011			-
Proceeds from restricted deposit used for completed acquisition		-			22,890
Proceeds from (payments for) business acquisitions, net of cash acquired		831			(22,483	)
Capitalized software development costs		(3,591	)		(2,688	)
Net cash provided by (used in) investing activities		6,348			(3,605	)
Cash flows from financing activities:
Proceeds from employee stock options exercised		659			2,334
Distribution of dividend		(20,253	)		(6,632	)
Repayment of Series B Debenture		(19,796	)		(9,898	)
Issuance of Series B Debentures, net of issuance expenses of $863		-			60,155
Receipt of short-term loan		-			20,000
Repayment of loan		-			(20,000	)
Payment of contingent considerations		(537	)		(538	)
Dividend to non-controlling interest		(31	)		-
Net cash provided by (used in) financing activities		(39,958	)		45,421
Effect of exchange rate changes on cash and cash equivalents		(1,746	)		(652	)
Increase in cash and cash equivalents		3,244			61,684
Cash and cash equivalents at the beginning of period		152,561			66,295
Cash and cash equivalents at the end of period		155,805			127,979

11

Debentures Covenants

As of June 30, 2021, Sapiens was in compliance with all of its financial covenants under the indenture for the Series B Debentures, based on having achieved the following in its consolidated financial results:

Covenant 1

■ Target shareholders’ equity (excluding non-controlling interest): above $120 million.

■ Actual shareholders’ equity (excluding non-controlling interest) equal to $379 million.

Covenant 2

■ Target ratio of net financial indebtedness to net capitalization (in each case, as defined under the indenture for the Company’s Series B Debentures) below 65%.

■ Actual ratio of net financial indebtedness to net capitalization equal to (24.03)%.

Covenant 3

■ Target ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is below 5.5.

■ Actual ratio of net financial indebtedness to EBITDA (accumulated calculation for the four last quarters) is equal to (0.92).

12