By Andrea Figueras
Temenos posted higher revenue and earnings for the fourth quarter a few days after a short-seller published a report questioning the company’s earnings and accounting practices.
The Swiss banking-software developer said Monday that it booked non-IFRS total revenue of $298 million for the final quarter of 2023, up 6% in constant currency compared with the year-earlier period. Annual recurring revenue jumped 16% to $730 million in the period.
Total software licensing rose 6% to $153.9 million, while earnings before interest and taxes increased 5% to $101.3 million, with a margin of 34%.
In non-IFRS and constant currencies, Temenos expects annual recurring revenue growth of around 15% for 2024 and total software licensing growth in a range of 7% to 10%. As for EBIT, it anticipates growth between 7% and 9%.
The company said it plans to pay a dividend of CHF1.20 ($1.36) a share in 2024, a 9% annual increase, subject to shareholder approval at its annual general meeting on May 7.
On Monday, shares in Temenos closed at CHF65.96, up 8.8% from the previous close, after days of declines prompted by allegations of accounting irregularities.
Last week, short-seller Hindenburg Research published a report in which it said there was evidence of manipulated earnings against Temenos.
In a statement, the Swiss company defended its record and refuted the report, adding that the allegations were false and misleading.
“We reiterate our position,” Nonexecutive Chairman Thibault de Tersant said on Monday. “I want to assure you of my confidence that Temenos is running a sound business with good financial controls in place,” he added.
The company will oversee a thorough examination of the allegations raised with independent third parties, it said.
Write to Andrea Figueras at [email protected]
Read the full article here
