TechOne profit jumps 54 per cent to $18M

TechOne profit jumps 54 per cent to $18M

Enterprise SaaS revenues and contracts up by more than 40 per cent

Edward Chung (TechnologyOne)

Edward Chung (TechnologyOne)

Credit: TechnologyOne

Brisbane software vendor TechnologyOne has closed the FY19 half year with 54 per cent increase in net profit after tax, posting $18 million in the period ended 31 March 2019.

The growth is once again attributed to the ASX-listed vendor's software-as-a-service (SaaS) enterprise solution growth. TechOne's total SaaS fees were up 42 per cent to $37.5 million, while annual contract value was up by 45 per cent to $85.8 million.

"TechnologyOne increased the number of large-scale enterprise SaaS customers by 39 per cent to 389, (compared to 280 at 31 March 2018)," executive chairman Adrian Di Marco told shareholders. "These customers have hundreds of thousands of users, making it the largest single instance ERP SaaS offering in Australia. Our SaaS ACV continues to grow very fast and is up 45 per cent."

The vendor's profit before tax was up 130 per cent to $24.5 million with the company expecting the full year profit before tax of up to $76.3 million.

"We continue to dominate in the local government sector. We have more than 300 council customers and are continuing to grow fast," TechnologyOne CEO Edward Chung said. "TechnologyOne also continues to see strong growth in Government. 

"We continued to invest strongly in the UK and have seen strong momentum in the first half, with new customers acquired, and the UK loss reducing from $3.2 million to $900,000 for the half-year. We see significant growth opportunities for the coming years. 

"We will continue to grow quickly, and like we have in the past 32 years, we expect to double in size again in the next 5 years," Chung said. 

Revenue for the half year was up by five per cent to $129.3 million.

TechnologyOne closed the 2018 financial year with $51 million in net profit after tax (NPAT) for year ended 30 September. During 2018, the company closed 11 new government deals resulting in $80 million contract revenue, with total revenue for the year growing 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.

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