23rd April 2020
Daniel Pfund, Senior Financial Analyst
Temenos reported first quarter sales well below analyst expectations. New license sales were down -47% compared to the same quarter last year (at constant exchange rates). The company made it clear that the weakness came only from March, due to the impact of the coronavirus. The last month of the quarters remains a very important month for software companies in general. The decline was particularly significant in Asia and Europe. The United States will certainly also be impacted in the second quarter, following the spread of the virus.
Like many companies, Temenos has withdrawn its guidance for 2020. However, the company remains optimistic and believes that its customers have simply postponed their orders.