Banking software provider Temenos reported double-digit growth for its software licensing and raised its full-year guidance. Meanwhile, the search for a new CEO continues.
Temenos booked revenues of $236.7 million in the third quarter, up 11 percent, as software licensing grew 25 percent to $95.7 million, according to a company statement Tuesday night. The company also said the search for a new CEO will continue into next year, with the interim CEO agreeing to extend his role.
Adjusted EBIT improved to $59.8 million, up 46 percent, corresponding to a six percentage point margin increase to 25.2 percent, while earnings per share increased 61 percent to $0.61.
Free cash flow was up nearly 500 percent to $28 million compared to what Temenos said was one of its lowest cash quarters the previous year.
Guidance Raised
Full-year EBIT is expected to increase by at least 8 percent instead of 7 percent, and earnings per share will increase by at least 7 percent from under 6 percent. The growth target for recurring revenues is now 13 to 15 percent instead of 12 to 14 percent.
Interim CEO Term Extended
The company is still looking for a new CEO. Andreas Andreades (pictured below) has agreed to continue serving on an interim basis beyond 2023. Temenos hoped to fill the role by the end of this year at the latest. A consulting firm is working with the board to assess internal and external candidates.
(Image: Temenos)
Andreades stepped down as chairman to take the helm of Temenos after the company's longtime CEO, Max Chuard, unexpectedly resigned in January. Deputy chairman Thibault de Tersant moved to the top of the supervisory body.
