In what has been solid execution in a stable sales environment, the firm saw total Annual Recurring Revenue (ARR) increase 11% (constant currency) to $811m, while subscription and SaaS revenue increased 10% year-on-year and 12% year-to-date. The recurring revenue model now accounts for 88% of total revenue. Performance was broad-based, with wins across both existing and new clients.
In terms of profits, EBIT increased 36% year-on-year, supported by sales momentum and the cost-efficiency measures introduced under last year’s investment strategy. Management has raised full-year guidance with subscription and SaaS growth now expected to increase “at least 7%” (up from 6%) and EBIT growth lifted from “at least 9%” to “at least 14%”.
At Sibos in September, Temenos launched its Money Movement & Management platform. The AI-powered solution integrates payments, money movement, and account management into a single system designed to replace fragmented legacy platforms. The firm says it is seeing “good traction” alongside its other AI-enabled offerings, such as the Financial Crime Mitigation agent.
On the analyst call last night, interim CEO, Takis Spiliopoulos (who has been CFO since 2019), confirmed that the search for a new CEO remains ongoing. In the meantime, Temenos continues to demonstrate operational resilience, with recurring revenue growth providing stability and visibility as it heads into the final quarter of the year.
Source: Tech Market View