Brisbane-headquartered software vendor TechnologyOne has posted $51 million in net profit after tax (NPAT) for the financial year ended 30 September.
This is according to the vendor's preliminary report, which showed a 15 per cent increase in NPAT compared to 2017's eight per cent growth.
The publicly-listed company has once again attributed the positive results to its enterprise software-as-a-service solution.
“Today, TechnologyOne is a software-as-a-service company, though the market is yet to fully appreciate this fact given we started as a traditional ‘on premise’ software company," said Edward Chung, CEO at TechnologyOne.
"All new customers' logos in FY18 were driven by TechnologyOne SaaS. We now have 347 large scale enterprise customers, with hundreds of thousands of users, making it the largest single instance ERP SaaS offering in Australia. Our annual recurring revenue is growing very fast, at 20 per cent per annum," Chung told shareholders.
During 2018, the company closed 11 new government deals resulting in $80 million contract revenue. TechOne now claims more than 300 council customers.
Total revenue for the 2018 financial year grew by nine per cent to $298.6 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 14 per cent to $70.4 million
The company's investment in its UK business is yet to show a positive return, with a loss of $4.1 million compared to a $1.1 million loss in the previous corresponding year.
TechnologyOne has also invested $54 million in research and development throughout 2018.
“We continue to invest in new exciting ideas and innovation including artificial intelligence and machine learning, which we will ship in our 2019A release in the first half of 2019," said the company's executive chairman Adrian Di Marco.
The vendor is currently in early research into the next product line called the DXP – Digital Experience Apps which includes artificial intelligence and machine learning.