TechnologyOne’s revenue growth last fiscal year fell short of estimates despite a surge in profit, with shares dropping 14.8%.
The software-as-a-service (SaaS) company’s annual recurring revenue was A$554.6 million across its fiscal year, up 18%, but below estimates of 21% growth. Profit before tax climbed 19% year-over-year to a record $181.5 million.
“We are pleased to announce our 16th consecutive year of record profit, record revenues, and record SaaS fees,” wrote TechnologyOne chair Pat O’Sullivan and CEO Edward Chung.
“Our growth has been driven by our global SaaS ERP [enterprise resource planning] solution and our game-changing SaaS+ offering, which combines our vertical-specific and mission-critical SaaS ERP and implementation with the fastest delivery times in the market in a single fee.”
Its United Kingdom annual recurring revenue was up 49% to $51.8 million. Total revenue increased 18% to $610 million.
TechnologyOne’s total income was $610.0 million, rising 18%, and profit after tax grew by 17% to $137.6 million. Earnings per share were 42.13 cents, compared with 36.24 cents the prior year.
Its final dividend is $0.20 per share, franked at 65%. Along with a special dividend of $0.10 per share, its total payout ratio was 87% of its net profit after tax, TechnologyOne said.
The company plans to reach at least $1 billion in annual recurring revenue by the 2030 fiscal year. “TechnologyOne’s sales pipeline of opportunities for FY26 remains strong, positioning us for continued strong ARR [annual recurring revenue] and profit growth in FY26,” O’Sullivan and Chung wrote.
TechnologyOne’s (ASX: TNE) share price was $30.10 at 12:40 pm (AEDT), down from its previous close at $35.34. Its market capitalisation is $10.08 billion.
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