Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the subscription and SaaS guidance for 2025, and how should we think about the growth rates for these components? A: Panagiotis Spiliopoulos, CFO: We have aligned our disclosure with global software players, reflecting the reality of client buying decisions. SaaS ACV was strong in Q4, and we expect a good performance in the coming quarters. Jean-Pierre Brulard, CEO, added that customer demand is strong, especially from large banks in the US and UK, and emphasized the importance of modular applications and multi-cloud environments.
Q: What are the greatest areas of uncertainty in the 2025 guidance, and what do you plan to do with the $400 million proceeds from the multi-fund sale? A: Panagiotis Spiliopoulos, CFO: The market's development will influence subscription and SaaS growth. ARR growth is a focus, and we are comfortable with our guidance. The proceeds from the multi-fund sale will likely be used for share buybacks, given our strong free cash flow profile.
Q: Have you noticed any changes in conversations with banks, and could there be a macro tailwind for discretionary spending? A: Jean-Pierre Brulard, CEO: Banks are investing heavily in technology, but face challenges with legacy systems. There is no slowdown in technology investment, and we are encouraged by modernization projects in the UK and US.
Q: Can you provide an update on your US market efforts and product positioning? A: Jean-Pierre Brulard, CEO: We have completed initial recruitment in the US, focusing on tier 3 regional banks. We are investing in specific product needs for the US market and have opened a new innovation hub in Florida.
Q: How will you report Q1 and Q2 results with the multi-fund sale, and what is the size of the earnout from the $400 million sale? A: Panagiotis Spiliopoulos, CFO: Multi-funds will not be reported as discontinued operations, but as part of the operating business. The majority of the earnout is upfront, with the remainder spread over the next few years.
Q: Can you provide more details on the high profitability of multi-funds and the rationale for its sale? A: Jean-Pierre Brulard, CEO: Multi-funds was ring-fenced within Temenos, and we decided to focus on our core business. Panagiotis Spiliopoulos, CFO, added that the transition to SaaS would require significant investment, and the sale aligns with our strategic focus.
Q: What drove the development of deferred revenues, and can you explain the one-off tax benefits in 2024? A: Panagiotis Spiliopoulos, CFO: Deferred revenues were impacted by the exclusion of multi-funds and currency effects. The tax benefits resulted from successful resolutions of uncertain tax positions and filings from prior years.
Q: How do you view the European market, and do you see potential for growth in this region? A: Jean-Pierre Brulard, CEO: We have reorganized our European operations and are focusing on UKI, wealth management, and strategic accounts. We are encouraged by recent successes and see potential for growth in these areas.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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