Temenos disclosed its first-quarter financial results on Tuesday, reporting total software licensing revenue of $84 million. Additionally, the Swiss banking software group announced the appointment of Jean-Pierre Brulard as its new chief executive.
However, the reported figure fell short of market expectations, as the consensus estimate compiled by Temenos projected total software licensing revenue to reach $100.2 million. Similarly, the overall revenue of $229.9 million missed the estimated $242.8 million, with subscription sales declining by 41% compared to the same period last year.
Temenos attributed the lower-than-expected performance partly to the impact of allegations made by Hindenburg Research, which the company has vehemently denied. These allegations, which emerged in a February report, led to a “temporary lengthening” of sales cycles, according to Temenos.
Despite the challenges, Temenos shares surged by 20% the previous week after a special committee, comprising external accountants and legal experts, refuted the allegations, labeling them as “incorrect and misleading.”
The appointment of Jean-Pierre Brulard as CEO, effective from May 1, marks a significant development for Temenos. Brulard’s leadership is expected to steer the company through these challenging times and drive growth in the future.
Temenos had previously expressed its intention to appoint a permanent CEO before its shareholder meeting on May 7. With Brulard assuming the role, the company looks ahead to navigating uncertainties and reinforcing its position in the market.
