Magic Software Enterprises Ltd ( MGIC ) reported a fourth-quarter revenue decline of 14.7% year-on-year to $125.5 million, beating the consensus of $117.5 million.

Adjusted EPS of $0.24 beat the consensus of $0.19. The stock price is gained after the results.

The adjusted gross margin expanded by 150 bps to 30.8%. The adjusted operating margin climbed 140 bps to 14.1%.

The company held $107.1 million in cash and equivalents as of December 31, 2023.

Cash flow from operating activities for the year ended December 31, 2023, amounted to $77.9 million compared to $56.6 million Y/Y.

Guy Bernstein, Chief Executive Officer of Magic Software ( MGIC ), said: “Despite the slowdown we faced during the second half of the year resulting from the headwind facing by some of our customers in certain sectors in the U.S., we remain positive that the vast majority of our customers will continue to value our unique proposition and resume to engage us to an increasing degree as a preferred partner for innovative digital transformation initiatives.”

Outlook: Magic introduced 2024 annual revenue guidance of $540.00 million – $550.00 million, compared to the consensus of $473.77 million.

Price Action: MGIC shares traded higher by 6.92% at $11.43 premarket on the last check Wednesday.