Temenos, a Switzerland-based provider of enterprise software for banks, announced a rise in revenue and earnings for the fourth quarter. The company's transition towards a subscription-based model played a crucial role in this growth.
In the fourth quarter, Temenos' earnings before interest and taxes reached $101.3 million, showcasing a 7.8% increase compared to the previous year. Revenue also saw an upswing, as it rose from $278.0 million to $298.0 million. Notably, total software revenue experienced a 6.9% increase, standing at $153.9 million. This growth was fueled by a surge in subscriptions and software-as-a-service revenue, compensating for a decline in team licenses.
Temenos achieved a significant milestone with its annual recurring revenue, which rose by 17% to reach $730.0 million. The company attributed this achievement to securing various deals, especially with renowned global banks.
The company's performance in annual recurring revenue, total software licensing revenue, and EBIT surpassed expectations. The guidance set for 2023 was exceeded, with growth percentages higher than anticipated: 13%-15% for annual recurring revenue, at least 6% for total software licensing revenue, and at least 8% for EBIT.
Temenos will disclose its fourth quarter and full-year 2023 results on Feb. 19, including guidance for the upcoming year.
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