Temenos ((CH:TEMN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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In the recent earnings call, Temenos showcased a robust performance with significant growth in revenue and profits, largely attributed to successful AI product launches and strategic market expansions. The company expressed optimism with increased guidance for 2025, although it remains cautious due to potential reliance on large Q4 deals and the lingering effects of a previous customer loss.
Strong Revenue and Profit Growth
Temenos reported an impressive 11% growth in total revenue for Q3 2025, with EBIT increasing by 36% and EPS by 41%. This growth was fueled by strong sales momentum and effective operating leverage, highlighting the company’s solid financial footing.
AI-Powered Product Success
The company has seen notable success with its AI-powered products, such as the AI agent for financial crime mitigation and Money Movement and Management. These innovations have been well-received by customers, reflecting Temenos’ commitment to leveraging technology for enhanced customer solutions.
Expansion in Key Markets
Temenos has made significant strides in expanding its presence in key markets, securing major deals in the Middle East, ASEAN, and Latin America. This geographic expansion, supported by cloud capabilities, is set to broaden the company’s client base and drive further growth.
Increased Guidance for 2025
The company has raised its guidance for 2025, with expectations of at least 14% EBIT growth and EPS growth between 15% and 17%. This optimistic outlook is supported by strong subscription and SaaS growth, as well as strategic investments in AI and sales headcount expansion.
Recognition and Employee Growth
Temenos has been recognized as a Great Place to Work in 15 countries and plans to increase its sales headcount by 50% by the end of the year. This growth in personnel is aligned with the company’s strategic objectives and is expected to support its expansion efforts.
Dependence on Large Deals in Q4
Despite the positive outlook, Temenos has expressed caution regarding its dependence on several large deals expected to close in Q4. The outcome of these deals could significantly impact the company’s financial performance.
Impact from Previous Customer Loss
The loss of a BNPL customer continues to affect Temenos’ quarterly figures. The company has not provided new information on this situation, indicating an ongoing challenge that needs to be addressed.
Forward-Looking Guidance
Interim CEO and CFO Takis Spiliopoulos highlighted the company’s strong performance and increased guidance for the fiscal year during the Q3 2025 results conference call. Temenos projects subscription and SaaS growth of at least 7%, EBIT growth of at least 14%, and EPS growth between 15% and 17%. The company also reaffirmed its 2028 targets, emphasizing confidence in future recurring revenue and cash flows.
In conclusion, Temenos’ earnings call reflected a strong performance with significant growth in key financial metrics. The company’s strategic focus on AI innovation and market expansion has paid off, although caution remains regarding potential dependencies and past challenges. Overall, the increased guidance for 2025 underscores a positive outlook for the company’s future.