ZURICH (Reuters) - Swiss banking software group Temenos slashed its 2022 guidance on Thursday, saying banks had become more cautious in their decision making amid macroeconomic uncertainty and costs were rising.
It said it was making changes to its sales leadership and its chief revenue officer had left the business with immediate effect.
The company now saw annual recurring revenue (ARR) growth of 17-18%, software licensing growth of 0% and earnings before interest and tax (EBIT) declining 25%, it said in a statement pre-announcing third-quarter results.
Third-quarter EBIT fell 53%, hit by lower subscription revenue and cost increases.
In July Temenos had forecast ARR growth of 18-20%, software licensing growth of 16-18%, total revenue growth of at least 10% and EBIT growth of 9-11% for the year.
"I am disappointed by our results this quarter, which were severely impacted by banks delaying signing decisions in the last weeks of the quarter due to uncertainties linked to the worsening macro environment, as well as sales execution," Chief Executive Max Chuard said.