Jean-Pierre Brulard, the new CEO of Temenos, is focused on a long-term strategy to drive the company forward and rebuild trust with investors and customers. He believes the company is currently undervalued.
After turbulence surrounding allegations of revenue manipulation by the US short-seller Hindenburg Research early in the year, the new CEO, Jean-Pierre Brulard, aims to get the software company Temenos back on track through a renewed focus and a cultural shift.
«We started with a clean slate,» he describes the fresh start in an interview with «Finanz und Wirtschaft». The board of directors had commissioned independent experts to investigate the allegations, and the results are publicly available.
The strategic realignment presented by the company around a month ago includes, for example, more investment in products and their market launch, expanding the sales teams, or streamlining the product portfolio.
Thorough Analysis and a Clear Process
The strategy was not developed based on the allegations but on a thorough analysis, Brulard emphasizes. It was developed through a transparent process with input from external consultants. «I’m focusing on the culture and leadership, market introduction, as well as our products and technology,» said the CEO. This approach was well received after the company's Capital Markets Day.
With this, he hopes to regain investors' trust and believes the stock price will rise. «The recovery of the stock price will take time. We first need to reach certain milestones to show that we can implement our strategy,» he said.
«I believe the stock is undervalued,» Brulard adds. He highlights the company's solid foundation, the growing market, Temenos' leading position within it, and the balanced ratio of revenue, EBIT (operating profit), and cash flow.
A Fresh Start
«There was a clear handover and a clean break between the new leadership and the old one,» emphasized the new CEO, who joined the Swiss software company in May from US firm VMware. The former long-serving CEO, Andreas Andreades, no longer has any influence on the company.
Even at 65, Brulard does not view himself as merely a transitional leader. «I’m not here for just a few months. I committed to the board for five years, and I intend to stick to that commitment,» he said.
Regarding current business trends, Brulard points out that growth forecasts in the Software-as-a-Service (SaaS) market have weakened. Many larger banks are opting to run their cloud infrastructure in-house, partly for regulatory reasons. Additionally, many fintech companies are currently struggling to secure financing, leading to weaker demand for SaaS in this sector.
Growing Faster Than the Overall Market
The overall market is growing at a rate of 7 percent per year, and Temenos aims to grow at a faster pace. A $100 million investment plan is intended to help achieve this, largely funded through cost savings.
In the third quarter, the conclusion of several key deals was delayed, Brulard said.
«As a result, we changed leadership for the Middle East and Africa (MEA) region.»
