The Swiss banking software company posted a strong start to year, boosting its confidence of achieving full-year 2021 targets.
Geneva-based Temenos' first quarter 2021 revenues rose 8 percent to $209.4 million, it said in a statement. The company attributed the performance to strong growth in software licensing.
Operating profit rose 28 percent to $56.9 million, with margins rising 4 percent to 27.2 percent. The U.S. was the largest contributor to the improvement in software licensing, in particular the «software-as-a-service» business. The European business also saw a strong performance on the back of an economic recovery and strengthening demand.
Pricey Takeover Candidates
In the first quarter, the company acquired 10 new clients and implemented 28 «go-lives,» it said. Current earning targets foresee annual revenue growth of between 10-15 percent to 2025, and software licensing growth of up to 20 percent a year.
The company wants to achieve its targets through internal growth. In February, chief financial officer Takis Spiliopoulous said that there were very few affordable takeover targets.
