Temenos expected a slower increase in 2024 earnings before interest and taxes (EBIT) compared to the previous year’s performance.
Temenos predicted a slower increase in 2024 earnings before interest and taxes (EBIT) compared to last year’s results, which exceeded expectations due to strong transaction execution.
The prediction came as shares in the Swiss software giant began to recover from losses that erased about one-third of its stock market value last week following a Hindenburg Research study alleging accounting problems.
Temenos quickly denied the study, claiming it had factual mistakes and analytical errors, as well as false and deceptive charges “intended to adversely impact the company’s share price.”
Temenos confirmed the 2023 figures, which were presented in a preliminary report on Jan. 19, saying it expected EBIT to expand by 7-9% in 2024, up from 12% last year. It also expects annual recurring revenue (ARR) growth of roughly 15%, following a 16% increase in 2023.
Monday marked the first day its shares had increased since the revelation, finishing up 8.8% at 66 Swiss francs.
Chairman Thibault de Tersant stated that Temenos stood by its position on the study but will oversee a comprehensive investigation of the issues brought by independent third parties.
Petrus Advisers, an activist shareholder, replied to the Hindenburg report last week by pressing Temenos to replace its CEO, despite claiming that some of the contents were “hearsay” from dissatisfied staff.
Thibault stated that the business was “seeking an exceptional individual to lead the next phase of Temenos’ development” and that he would chair the board committee supervising it, reiterating intentions Temenos had previously announced.
Hindenburg published a study claiming to have discovered “hallmarks of manipulated earnings and major accounting irregularities” at Temenos, citing public filings and interviews with former workers.
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