TechnologyOne (ASX:TNE) reported pre-tax profit of $152.9 million for the financial year ending September 30, 2024, an increase of 18% year-on-year. The result exceeded previous forecasts of 12-16% growth, marking the company’s 15th consecutive year of record profits, revenue and SaaS fees.
TechnologyOne, based in Brisbane, is Australia’s largest provider of software for managing complex organizational processes. Its cloud-based platform helps more than 1,300 customers – businesses, government agencies, municipalities and universities – streamline their operations. This includes managing budgets, tracking assets like buildings and vehicles, organizing payroll, and even overseeing university processes like student admissions and course scheduling.
Annual recurring revenue (ARR) increased 20% to $470.2 million, driven by the success of the company’s SaaS+ model and rapid adoption in the UK. TechnologyOne’s UK ARR grew 70% to $8.7 million, with total UK ARR reaching $34.7 million.
CEO Edward Chung noted, “Our 20% ARR growth and 18% revenue growth are driven by the significant value proposition of our global SaaS ERP solution to new and existing customers. The SaaS+ model was a game changer,” Chung said.
Highlights of the year included:
- Total revenue increased 17% to $515.4 million, with SaaS and recurring business contributing $466.3 million.
- Maintaining net revenue at 117%, exceeding long-term target of 115%.
- Profit after tax of $118 million, up 15%.
- A strengthened balance sheet with $278.7 million in cash and investments, up 25%.
The company also announced an ARR target of $1 billion by fiscal year 30, building on its accelerated trajectory. The acquisition of CourseLoop, a leader in curriculum management, positions TechnologyOne as the world’s first SaaS provider that encompasses the entire student lifecycle, further strengthening its higher education offerings.
TechnologyOne shares closed 10.05% higher at $29.45.