BRISBANE, 19 November 2024 – TechnologyOne (ASX: TNE), Australia’s largest ERP SaaS company and the world’s first SaaS+ company, has reported its financial results for the year ended 30 September 2024. The company is celebrating its 15th consecutive year of record profit, record revenues, and record SaaS fees.
Highlights for the Year
- Profit Before Tax: $152.9m, up 18%, beating guidance of 12%-16% growth
- Total ARR: $470.2m, up 20%, driven by the SaaS+ offering and growth in the UK
- UK Sales ARR: Up 70%, a significant milestone for the region
- Net Revenue Retention (NRR): 117%, above the long-term target of 115%
- Dividend: Full-year dividend of 22.45 cps, up 16%
- R&D Investment: $128m, consistent with 25% of revenue
Key Achievements
1. Record Profit and Revenue Growth
TechnologyOne achieved record profit and revenues for the 15th consecutive year, reporting an 18% increase in profit before tax, reaching $152.9 million. The 20% growth in ARR reflects strong demand for its SaaS ERP solutions and SaaS+ offering.
2. World’s First SaaS+ ERP Company
TechnologyOne remains at the forefront of the ERP industry, having pioneered the SaaS+ model. This innovative approach combines the global SaaS ERP solution with implementation in a single fee, streamlining the process and delivering faster go-lives with minimal risk.
3. UK Market Expansion
The company saw ARR growth of 70% in the UK, with total UK ARR increasing by 31% to $34.7 million. Key wins in the Higher Education sector, including partnerships with the University of Buckingham and the University of Chester, have significantly contributed to this growth.
4. Acquisition of CourseLoop
Post-period, TechnologyOne acquired CourseLoop, a world leader in curriculum management. This acquisition enhances the OneEducation solution, which now spans the entire student lifecycle from course design to graduation, making it the world’s first unified SaaS platform for education.
New Long-Term Target: $1B+ ARR by FY30
With a strong growth trajectory and the goal to surpass $500m ARR by the first half of FY25, TechnologyOne has set a new long-term target of $1B+ ARR by FY30. The company plans to achieve this through continued investments in R&D, acquisitions, and further market penetration, particularly in the UK and APAC regions.
Profit Margins and Cashflow
- Profit Before Tax Margin: Increased to 30%, with a slight headwind from the transition to SaaS+
- Cashflow Generation: $119m, up 14%, reflecting strong operational efficiency and high-quality recurring revenue.
R&D Investment and Future Growth
TechnologyOne continues to invest heavily in research and development, committing $128 million in FY24. These investments focus on expanding the capabilities of its global SaaS ERP solution, ensuring continued leadership in the ERP market and the ability to double in size every five years.
Strong Balance Sheet
With cash and investments amounting to $278.7 million (up 25%), TechnologyOne maintains a robust financial position, supporting future growth and potential acquisitions.
Investment in People and Culture
The company has promoted over 220 team members and is committed to building a diverse and inclusive workforce, with women now holding 39% of all roles and 48% of senior roles.
Dividends and Capital Management
The final FY24 dividend has been set at 22.45 cents per share, marking a 15% increase. In alignment with the company’s growth, TechnologyOne has updated its dividend policy and introduced an equity management policy to enhance capital efficiency and reduce dilution.
TechnologyOne’s results reflect a company that is not only meeting but exceeding expectations, with a clear focus on innovation, growth, and delivering long-term value to its customers and shareholders.
