Magic Software Enterprises Ltd Stock Price, News & Analysis

Magic Software Enterprises Ltd. (NASDAQ: MGIC) has announced the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (SEC). The report, which includes the company's audited annual financial statements for 2024, was filed on May 14, 2025. Shareholders can access the report through the SEC's website or Magic Software's investor relations portal, and may request a free hard copy by contacting the company's CFO, Asaf Berenstin.

Magic Software (NASDAQ: MGIC) reported strong Q4 2024 financial results with revenues increasing 13.6% to $142.6 million and operating income rising 28.6% to $16.7 million. Full-year 2024 revenues grew 3.3% to $552.5 million, while operating income increased 7.2% to $61.2 million.

The company announced a significant strategic move with a Memorandum of Understanding to merge with Matrix I.T, Israel's leading IT Services company. The combined entity would have an estimated market value of $2.1 billion, with projected annual revenues of $2.1 billion and operations across 50 countries serving 6,000 clients.

Magic Software declared a semi-annual dividend of 32.7 cents per share, totaling approximately $16.1 million. The company provided 2025 revenue guidance of $593-603 million, projecting 7.3-9.1% annual growth. Cash flow from operations for 2024 was $74.7 million, with cash and equivalents reaching $112.8 million by year-end.

Magic Software Enterprises (NASDAQ: MGIC) has signed a Memorandum of Understanding (MOU) with Matrix I.T (TASE: MTRX) to explore a potential merger through a reverse triangular merger. The combined entity would have an estimated market value of $2.1 billion, with Magic shareholders receiving Matrix shares based on a 31.125%/68.875% exchange ratio.

The merged company would operate in 50 countries, serve approximately 6,000 clients, and employ over 15,000 people. Based on 2024 projections, the combined entity would generate:

• Revenues: $2.1 billion
• Gross profit: $382 million (18.6% margin)
• Operating income: $183 million (8.9% margin)
• Net income: $110.6 million (5.4% margin)

The merger aims to enhance market position, expand geographic presence, and broaden product offerings. Magic's international presence, particularly in the U.S., would complement Matrix's strong position in Israel.

Magic Software reported strong Q3 2024 financial results with revenues increasing 10.4% to $143.0 million. Operating income grew 13.1% to $15.1 million, while net income rose 18% to $8.4 million. For the first nine months of 2024, revenues slightly increased by 0.1% to $409.9 million, though net income decreased 8% to $26.3 million due to increased interest expenses and currency fluctuations. The company declared a semi-annual dividend of 23.6 cents per share. Magic Software revised its 2024 revenue guidance to $544-550 million, raising the lower range from $540 million, reflecting continued momentum and positive outlook.

Magic Software Enterprises (NASDAQ and TASE: MGIC) reported its financial results for Q2 and H1 2024. Key highlights include:

- Q2 2024 revenues decreased by 1.0% to $136.3 million

- Q2 2024 GAAP operating income decreased by 2.6% to $15 million

- Q2 2024 non-GAAP operating income decreased by 1.2% to $18.2 million

- Q2 2024 GAAP net income decreased by 20% to $9.0 million

- H1 2024 revenues decreased by 4.7% to $267.0 million

- The company reiterated its 2024 annual revenue guidance of $540-$550 million

Despite challenges in the macroeconomic landscape, particularly with North American blue-chip clients, the company remains optimistic about future growth and continued improvement in business performance.

Magic Software Enterprises (NASDAQ and TASE: MGIC), a global provider of IT consulting services and end-to-end integration and low-code application development platforms, has announced that it will report its financial results for the second quarter of 2024 on Wednesday, August 14th, 2024. The company will host a conference call on the same day at 10:30 a.m. Eastern Daylight Time (17:30 p.m. Israel Daylight Time) to review and discuss the results.

Interested parties can participate in the call by dialing specific numbers for North America, UK, Israel, and other locations. A replay of the call will be available on the company's website for those unable to join live.

Magic Software (NASDAQ: MGIC) reported its Q1 2024 financial results, showing a decrease in revenues by 8.2%, reaching $130.7 million compared to $142.4 million in Q1 2023. The company's gross profit also declined by 5.6% to $36.7 million. Operating income fell by 6% to $14.4 million, and net income attributable to shareholders decreased by 13% to $8.8 million. Despite the downturn, Magic Software's cash flow from operating activities improved to $27.7 million, and the company retains significant cash reserves of $125.9 million. The annual revenue guidance for 2024 remains between $540 million and $550 million. A dividend of 20.4 cents per share, totaling approximately $10 million, will be paid on July 11, 2024. The dividend reflects 70% of distributable profits for H2 2023.

Magic Software reported its Q1 2024 financial results, highlighting a decline in revenues by 8.2% year-over-year to $130.7 million. Gross profit decreased by 5.6% to $36.7 million, and net income dropped by 13% to $8.8 million. Diluted EPS fell from $0.21 to $0.18. The company reiterated its annual revenue guidance of between $540 million and $550 million. Despite the revenue decline, cash flow from operations increased significantly to $27.7 million. A semi-annual dividend of 20.4 cents per share was declared, payable on July 13, 2024. The decrease in revenue was attributed to a reduction in demand from major U.S. clients.