Temenos Reports 8% Yearly Decline in Q3 Revenue

Temenos AG, the banking software company, has reported its third quarter 2022 results. During this quarter, Temenos' revenue was USD 212.8 million, a decrease of 8% compared to the same period in the last year.

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IFRS and non-IFRS total software licensing revenue for the quarter was USD 76.3 million, a decrease of 19% compared to the same period in the last year.

IFRS EBIT was USD 10.2 million for the quarter, a decrease of 75% compared to Q3 2021. Non-IFRS EBIT was USD 40.8 million for the quarter, a decrease of 53% compared to Q3 2021.

Commenting on the results, Temenos CEO Max Chuard said:"We had a disappointing quarter, with significantly lower subscription revenue than expected. Sales cycles lengthened on a number of deals, with banks delaying decisions due to the worsening macro environment. We also had some sales execution issues. We have conducted a thorough review of our pipeline and de-risked our guidance. We have also made leadership changes, with the departure of both the Chief Revenue Officer and President of the Americas, and the appointment of two of our most senior Executives to run our US business."

"SaaS was a bright spot this quarter, with SaaS ACV of USD17.9m and SaaS revenue growth accelerating to 41%. We had good levels of demand from smaller banks and non-incumbents, which reflects the diversity in our client base."