Geneva-based banking software company Temenos is fully committed to the «Software-as-a-Service» business model and is now setting its sights on new big goals for the company's success.
Temenos already announced a major management revirement in January, an important milestone for the Geneva-based company. Colin Jarrett has since been fully focused on his role as chief cloud officer, a key role in the shift of the business model to cloud services.
CEO Max Chuard, who took over the helm of the banking software manufacturer in spring 2018, is systematically transforming the business model of Temenos. As a consequence of this restructuring, revenues from the license business are steadily declining, while SaaS revenues are simultaneously pointing upwards. In the past fiscal year, license revenues fell by one-fifth, while on the SaaS side there was an increase of 44 percent, albeit probably on a much lower basis, as finews.com noted in January.
Plenty of Growth Potential
At its «Capital Markets Day» today, the company is presenting new targets that it intends to achieve by 2025. In particular, revenue growth of 10 to 15 percent catches the eye, as well as growth in so-called «bookings» to more than $1 billion: The goal represents «a major milestone for the business driven by a significant acceleration in demand for SaaS and strong growth in licenses,» Chuard noted.
The CEO sees a lot of growth potential in the banking software business and hopes to carve out a good piece of the $63 billion market for Temenos.
