TechnologyOne saw profit and revenue surge across regions and sectors last half, and has raised its guidance.
The company’s profit after tax was A$63 million, rising 31% year-on-year. Annual recurring revenue (ARR) for the last half was up 21% to $511.1 million, while total revenue grew by 19% to reach $291.3 million.
“Once again we have delivered record first-half ARR, revenue and profit for the 16th consecutive year. We have a new ambitious goal of $1b+ ARR by FY30 as we surpassed $500 million in ARR 18 months earlier than planned, an incredible achievement for our Company,” said TechnologyOne CEO Ed Chung.
“Having reached our target of exceeding $500 million in ARR in the first half, we are now focusing on achieving our new ambitious long-term target of exceeding $1 billion in ARR by FY30. The diversity in our revenue streams which come from multiple regions, multiple products and multiple vertical markets ensures we can maintain strong consistent growth.”
TechnologyOne’s ARR in the United Kingdom also grew by 50% year-over-year, reaching $43.1 million. The company has added several new local government customers in the U.K. over the past year, including a deal with London’s Islington Council in December.
Its ARR reached new highs across sectors last half, with the largest percentage increases seen in Education and Government. Local Government posted the highest ARR at $192.4 million, growing by 20.1%.
TechnologyOne also acquired Australian education curriculum software provider CourseLoop in November, which the company said had $9.1 million in ARR.
Basic earnings per share last half were $0.1926, up 31%. Its free cash flow was $24.0 million, rising from a loss of $3.8 million one year ago.
TechnologyOne has raised its profit guidance, and now forecasts its full-year net profit will grow by 13-17%. Its previous projections were 12-16%.
The company also issued a record high interim dividend of $0.066 per share, up 30% from one year ago.
TechnologyOne’s (ASX: TNE) share price was A$37.19 at the time of writing, up from its previous close at $33.02. Its market capitalisation is $12.16 billion.
