Temenos increases sales and EBIT in the final quarter
Published: Friday, Jan 19th 2024, 08:00
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Banking software manufacturer Temenos surprisingly announced its preliminary figures for the fourth quarter and the full year 2023 on Friday. Both turnover and EBIT were up on the previous year. There was no outlook yet.
In the final quarter, turnover reached 298.0 million US dollars, which is 7% above the previous year's figure, as Temenos announced on Friday on the basis of unaudited figures. The adjusted operating profit EBIT rose to 101.3 million dollars, an increase of 8 percent. The corresponding margin improved slightly to 34.0 percent from 33.8 percent in the previous year.
License revenues for software rose by 7 percent to 153.9 million dollars. Overall, the environment in the fourth quarter was stable, CEO Andreas Andreades is quoted as saying in the press release. European and US business in particular developed strongly. The pipeline was also positive. Overall, he is "very satisfied with the strong development" in the past year.
Annual figures increased
Temenos also performed better in 2023 as a whole than in the previous year - both sales and EBIT had declined in 2022. Temenos now achieved total sales of CHF 1.0 billion, 5% more than in the previous year. Annual recurring revenue (ARR) also increased by 17 percent to CHF 730.00 million. License income climbed by 10 percent to 443.6 million. EBIT rose by 15 percent to 313.0 million, while the margin improved from 28.7 percent to 31.3 percent.
The Geneva-based company has thus significantly exceeded its own forecast, which was raised in October. Growth of 13 to 15 percent had been forecast for ARR and at least 8 percent for EBIT. License sales were expected to increase by at least 6 percent.
Temenos will announce the full figures on February 19. An outlook for the coming financial year will also be provided then. In the press release, CEO Andreades assumes that free cash flow will grow strongly in the coming years. At CHF 242.6 million at the end of 2023, FCF was 26% higher than in the previous year. The company will hold a Capital Markets Day in London on February 20.
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