Software: Temenos grows sales and EBIT in latest quarter

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Sales in the latest quarter reached $298.0 million, up 7 percent from the previous year, Temenos said on Friday, citing unaudited figures. Adjusted operating profit EBIT increased 8 percent to $101.3 million. The relevant margin increased from 33.8 percent to 34.0 percent compared to the previous year.

Software licensing revenue increased 7 percent to $153.9 million. According to the statement of CEO Andreas Andreades, the environment was generally stable in the fourth quarter. Business in Europe and the USA developed particularly strongly. The pipeline is also positive. Overall he was “very pleased with the strong improvement” over the past year.

Temenos also performed better overall in 2023 than the previous year; In 2022, both sales and EBIT are down. Temenos achieved total sales of 1.0 billion francs, an increase of 5 percent compared to the previous year. So-called annualized recurring revenue (ARR) also increased by 17 percent to 730.00 million. License revenues increased by 10 percent to 443.6 million. EBIT increased by 15 percent to 313.0 million, while margin increased from 28.7 percent to 31.3 percent.

The Genevans thus significantly exceeded their own forecasts, which were increased in October. A 13 to 15 percent growth in ARR and at least 8 percent growth in EBIT were projected. License sales must increase by at least 6 percent.

Temenos will announce the full figures on February 19. An outlook for the next fiscal year will also be given later. In the statement, CEO Andreades assumes free cash flow will grow strongly in the coming years. At the end of 2023, FCF amounted to 242.6 million francs, an increase of 26 percent compared to the previous year. The company is holding a Capital Markets Day in London on 20 February.

(SDA)

Source :Blick