Temenos' SaaS sales grew 32% in 2022
Earlier this week, Formpipe's banking platform partner, Temenos, reported its Q4 numbers and hosted a capital markets day (share +5.5%). While Temenos financial track record is good (5% sales CAGR in '17-'22), the company has recently seen lower demand for its products due to lengthened sales cycles as banks have been more cautious on an uncertain 2023 (due to macro), with sales growing -2% in '22, vs. +7% in '21. Share is also down 47% over the last two years, with significant negative revisions for FactSet consensus in recent years. That said, simliar to Formpipe, Temenos continues to see good demand for cloud-based products, driving 32% SaaS growth in '22 (vs. FPIP at 42%). As such, there is a solid correlation (0.5 for Q1'21-Q4'22) for the ACV between Temenos and FPIP; albeit not a perfect correlation, given that Microsoft Dynamics still accounts for the lion's share of FPIP's ACV.
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