TechnologyOne (ASX:TNE) has reported a profit before tax of $152.9m for the financial year ending 30 September 2024, an 18% increase year-on-year. The result outperformed earlier guidance of 12–16% growth, marking the company’s 15th consecutive year of record profits, revenues, and SaaS fees.
TechnologyOne, headquartered in Brisbane, is Australia’s largest provider of software for managing complex organisational processes. Its cloud-based platform helps over 1,300 clients—businesses, government agencies, councils, and universities—streamline their operations. This includes managing budgets, tracking assets like buildings and vehicles, organising payroll, and even overseeing university processes such as student admissions and course scheduling.
Annual Recurring Revenue (ARR) rose 20% to $470.2m, driven by the success of the company’s SaaS+ model and rapid adoption in the UK. TechnologyOne’s UK ARR grew 70% to $8.7m, with total UK ARR reaching $34.7m.
CEO Edward Chung noted: “Our ARR growth of 20% and profit growth of 18% is driven by the significant value proposition of our global SaaS ERP solution for new and existing customers. The SaaS+ model has been a game changer,” Chung said.
Highlights of the year included:
- Total revenue up 17% to $515.4m, with SaaS and recurring business contributing $466.3m.
- Net revenue retention at 117%, exceeding the long-term target of 115%.
- A profit after tax of $118m, up 15%.
- A strengthened balance sheet with $278.7m in cash and investments, up 25%.
The company also announced a $1bn ARR target by FY30, building on its accelerated trajectory. The acquisition of CourseLoop, a curriculum management leader, positions TechnologyOne as the world’s first SaaS provider encompassing the entire student lifecycle, further bolstering its Higher Education offerings.
Shares in TechnologyOne closed 10.05% higher at $29.45.