Swiss group Temenos lowers 2022 forecast as banks turn cautious

ZURICH, Oct 13 (Reuters) – Swiss banking software group Temenos (TEMN.S) lowered its forecast for 2022 on Thursday, saying banks had become more cautious in their decision-making amid macroeconomic uncertainty and an economic downturn. increase in costs.

He said he was making changes to his sales leadership and his chief revenue officer had left the company effective immediately.

The company has now seen annual recurring revenue (ARR) growth of 17-18%, software license growth of 0% and earnings before interest and taxes (EBIT) down 25%, she said. declared. in a report before the announcement of the third quarter results.

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Third-quarter EBIT fell 53%, impacted by lower subscription revenue and higher costs.

In July, Temenos had forecast ARR growth of 18-20%, software license growth of 16-18%, total revenue growth of at least 10%, and EBIT 9-11% for the year.

“I am disappointed with our results this quarter, which were severely impacted by the delay in bank signature decisions in the final weeks of the quarter due to uncertainties related to the deteriorating macroeconomic environment, as well as sales execution,” said general manager Max Chuard.

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Reporting by Michael Shields; Editing by Susan Fenton

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