- Temenos’ SaaS revenue shot up 37% in FY 22.
- The company expects the sales environment to remain stable in 2023.
Temenos, a Switzerland-based banking software company, reported an annual recurring revenue (AAR) growth of 15% during its fiscal year 2022. In addition, the firm said that its total software licensing jumped 37% in North America during the period. This is the company’s “highest ever” licensing in the region, showing that the firm is making “consistent progress in the US.”
Temenos reported these numbers on Monday in its ad hoc fourth quarter and results for the fiscal year of 2022. The company’s Software-as-a-Service (SaaS) revenue increased by 37% last year. However, the company’s free cash flow declined 46% during the period, driven mainly by cost growth.
Temenos explained that it recorded continued “strong SaaS growth” and actual cash value (ACV) driven by sales to new customers as SaaS is becoming more mainstream and not just a transition. Furthermore, Temenos believes that on a non-International Financial Reporting Standards (IFRS) basis, its AAR will grow by at least 12% during the fiscal year 2023. Moreover, the company expects its software licensing to grow by at least 6% this year.
In addition, the banking software provider expects a similar growth trend for its earnings before interest and tax as well as its earnings per share during the new fiscal year. It projects the former to grow by at least 7% and the latter by at least 6%. Moreover, the firm expects its ACV for 2023 to grow in tandem with its new projected AAR: by 12%.
“Proposed dividend of CHF 1.10 for FY-22 to be voted on at AGM on 3 May 2023,” Temenos said in the ad hoc announcement.
Temenos Gives More Predictions for 2023
Giving further outlook for 2023, Temenos noted that it expects the sales environment to continue to remain stable this year even as banks continue to remain cautious. On top of that, the company expects the demand for SaaS and cloud-based software to continue to increase.
Furthermore, Temenos sees both subscription and SaaS revenue being driven by the demand for cloud-based software. This is even as the Switzerland-headquartered company hopes to get a “good pipeline development, including a number of tier 1 deals” in the new fiscal year.
Andreas Andreades, Temenos’ Executive Chairman and Acting CEO, added that the company expects “2023 to be a growth year for Temenos, especially because of the strong growth of our SaaS business.”
“Our pipeline has continued to develop positively, including a number of tier 1 deals. We made considerable investment in the business in 2022 and this provides us with a platform for growth in the coming year,” the Acting CEO added.
Post via: https://www.financemagnates.com/fintech/temenos-sees-highest-ever-software-licensing-in-north-america-in-2022/