In the third quarter of 2024, Temenos achieved revenue of $246,9 million, marking a 4 percent increase compared to the same period last year, as revealed in the quarterly report released on Wednesday evening.

Operating profit (EBIT) rose by 19 percent to $71,3 million, with the corresponding margin reaching 28,9 percent, up from 25,2 percent. Earnings per share increased by a quarter to $0,76, compared to $0,61 previously.

License Revenues Weaker Than Expected

License revenues grew more slowly than the company had anticipated, rising by just 1 percent to $96,4 million during the reporting period. «We clearly expected more,» the company stated.

Temenos pointed to issues with sales execution in the Middle East/Africa (MEA) region. This was also cited as a reason for slightly lowering the guidance for the full year and offering a «conservative outlook,» as further noted.

MEA Region Causing Problems

«In the third quarter, we saw good progress in most of our regions, with a stable sales environment across all regions in which we operate,» said CEO Jean-Pierre Brulard. «However, we faced challenges in sales execution in the MEA region. We have taken decisive action to address the leadership issues in the region and conducted a detailed review of the Q4-24 pipeline.»

Management now expects full-year software license revenues to be approximately at the same level as the previous year. Earlier, growth of 3 to 6 percent had been projected.

Operating profit is still expected to increase by 7 to 9 percent, and earnings per share are also expected to grow by 6 to 8 percent.